Document:

FORM
        OF GUARANTY
        

       

      1. Identification.

      

      This
        Guaranty (the "Guaranty"), dated as of October 23, 2007, is entered into
        by
        Attitude Drink Company, Inc., a Delaware corporation (“Guarantor”), for the
        benefit of the Collateral Agent identified below and the parties identified
        on
        Schedule A hereto (each a “Lender” and collectively, the
        "Lenders").

      

      2. Recitals.

      

      2.1 Guarantor
        is a direct or indirect subsidiary of Attitude Drinks Inc., a Delaware
        corporation (“Parent”). The Lenders have made and/or are making loans to Parent
        (the "Loans"). Guarantor will obtain substantial benefit from the proceeds
        of
        the Loans.

      

      2.2 The
        Loans
        are and will be evidenced by certain secured promissory Notes (collectively,
        “Note” or “Notes") issued by Parent on, about and after the date of this
        Guaranty pursuant to subscription agreements dated at or about the date hereof
        (“Subscription Agreements”). The Notes are further identified on Schedule A
        hereto and were and will be executed by Parent as “Borrower” or “Debtor” for the
        benefit of each Lender as the “Holder” or “Lender” thereof.

      

      2.3 In
        consideration of the Loans made and to be made by Lenders to Parent and for
        other good and valuable consideration, and as security for the performance
        by
        Parent of its obligations under the Notes and as security for the repayment
        of
        the Loans and all other sums due from Debtor to Lenders arising under the
        Notes
        (collectively, the "Obligations"), Guarantor, for good and valuable
        consideration, receipt of which is acknowledged, has agreed to enter into
        this
        Guaranty. Obligations include all future advances by Lenders to Parent made
        by
        Lenders pursuant to the Subscription Agreement. 

      

      2.4 The
        Lenders have appointed Barbara R. Mittman as Collateral Agent pursuant to
        that
        certain Collateral Agent Agreement dated at or about the date of this Agreement
        (“Collateral Agent Agreement”), among the Lenders and Collateral
        Agent.

      

      3. Guaranty.

      

      3.1 Guaranty.
        Guarantor hereby unconditionally and irrevocably guarantees, jointly and
        severally with any other Guarantor, the punctual payment, performance and
        observance when due, whether at stated maturity, by acceleration or otherwise,
        of all of the Obligations now or hereafter existing, whether for principal,
        interest (including, without limitation, all interest that accrues after
        the
        commencement of any insolvency, bankruptcy or reorganization of Parent, whether
        or not constituting an allowed claim in such proceeding), fees, commissions,
        expense reimbursements, liquidated damages, indemnifications or otherwise
        (such
        obligations, to the extent not paid by Parent being the “Guaranteed
        Obligations”), and agrees to pay any and all reasonable costs, fees and expenses
        (including reasonable counsel fees and expenses) incurred by Collateral Agent
        and the Lenders in enforcing any rights under the guaranty set forth herein.
        Without limiting the generality of the foregoing, Guarantor’s liability shall
        extend to all amounts that constitute part of the Guaranteed Obligations
        and
        would be owed by Parent to Collateral Agent and the Lenders, but for the
        fact
        that they are unenforceable or not allowable due to the existence of an
        insolvency, bankruptcy or reorganization involving Parent.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      3.2 Guaranty
        Absolute.
        Guarantor guarantees that the Guaranteed Obligations will be paid strictly
        in
        accordance with the terms of the Notes, regardless of any law, regulation
        or
        order now or hereafter in effect in any jurisdiction affecting any of such
        terms
        or the rights of Collateral Agent or the Lenders with respect thereto. The
        obligations of Guarantor under this Guaranty are independent of the Guaranteed
        Obligations, and a separate action or actions may be brought and prosecuted
        against Guarantor to enforce such obligations, irrespective of whether any
        action is brought against Parent or any other Guarantor or whether Parent
        or any
        other Guarantor is joined in any such action or actions. The liability of
        Guarantor under this Guaranty constitutes a primary obligation, and not a
        contract of surety, and to the extent permitted by law, shall be irrevocable,
        absolute and unconditional irrespective of, and Guarantor hereby irrevocably
        waives any defenses it may now or hereafter have in any way relating to,
        any or
        all of the following:

       

      (a)
        any
        lack of validity of the Notes or any agreement or instrument relating
        thereto;

       

      (b)
        any
        change in the time, manner or place of payment of, or in any other term of,
        all
        or any of the Guaranteed Obligations, or any other amendment or waiver of
        or any
        consent to departure from the Notes, including, without limitation, any increase
        in the Guaranteed Obligations resulting from the extension of additional
        credit
        to Parent or otherwise;

       

      (c)
        any
        taking, exchange, release, subordination or non-perfection of any Collateral,
        or
        any taking, release or amendment or waiver of or consent to departure from
        any
        other guaranty, for all or any of the Guaranteed Obligations;

       

      (d)
        any
        change, restructuring or termination of the corporate, limited liability
        company
        or partnership structure or existence of Parent; or

       

      (e) any
        other
        circumstance (including, without limitation, any statute of limitations)
        or any
        existence of or reliance on any representation by Collateral Agent or the
        Lenders that might otherwise constitute a defense available to, or a discharge
        of, Parent or any other guarantor or surety.

      

      This
        Guaranty shall continue to be effective or be reinstated, as the case may
        be, if
        at any time any payment of any of the Guaranteed Obligations is rescinded
        or
        must otherwise be returned by Collateral Agent, the Lenders or any other
        entity
        upon the insolvency, bankruptcy or reorganization of the Parent or otherwise
        (and whether as a result of any demand, settlement, litigation or otherwise),
        all as though such payment had not been made.

       

      3.3 Waiver.
        Guarantor hereby waives promptness, diligence, notice of acceptance and any
        other notice with respect to any of the Guaranteed Obligations and this Guaranty
        and any requirement that Collateral Agent or the Lenders or exhaust any right
        or
        take any action against any Borrower or any other person or entity or any
        Collateral. Guarantor acknowledges that it will receive direct and indirect
        benefits from the financing arrangements contemplated herein and that the
        waiver
        set forth in this Section 3.3 is knowingly made in contemplation of such
        benefits. Guarantor hereby waives any right to revoke this Guaranty, and
        acknowledges that this Guaranty is continuing in nature and applies to all
        Guaranteed Obligations, whether existing now or in the future.

      

      3.4
        Continuing
        Guaranty; Assignments.
        This
        Guaranty is a continuing guaranty and shall (a) remain in full force and
        effect
        until the later of the indefeasible cash payment in full of the Guaranteed
        Obligations and all other amounts payable under this Guaranty, the Subscription
        Agreements and the Notes, (b) be binding upon Guarantor, its successors and
        assigns and (c) inure to the benefit of and be enforceable by the Lenders
        and
        their successors, pledgees, transferees and assigns. Without limiting the
        generality of the foregoing clause (c), any Lender may pledge, assign or
        otherwise transfer all or any portion of its rights and obligations under
        this
        Guaranty (including, without limitation, all or any portion of its Notes
        owing
        to it) to any other Person, and such other Person shall thereupon become
        vested
        with all the benefits in respect thereof granted such Collateral Agent or
        Lender
        herein or otherwise.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      3.5
        Subrogation.
        No
        Guarantor will exercise any rights that it may now or hereafter acquire against
        the Collateral Agent or any Lender or other Guarantor (if any) that arise
        from
        the existence, payment, performance or enforcement of such Guarantor’s
        obligations under this Guaranty, including, without limitation, any right
        of
        subrogation, reimbursement, exoneration, contribution or indemnification,
        whether or not such claim, remedy or right arises in equity or under contract,
        statute or common law, including, without limitation, the right to take or
        receive from the Collateral Agent or any Lender or other Guarantor (if any),
        directly or indirectly, in cash or other property or by set-off or in any
        other
        manner, payment or security solely on account of such claim, remedy or right,
        unless and until all of the Guaranteed Obligations and all other amounts
        payable
        under this Guaranty shall have been indefeasibly paid in full. 

       

      3.6
        Maximum
        Obligations.
        Notwithstanding any provision herein contained to the contrary, Guarantor’s
        liability with respect to the Obligations shall be limited to an amount not
        to
        exceed, as of any date of determination, the amount that could be claimed
        by
        Lenders from Guarantor without rendering such claim voidable or avoidable
        under
        Section 548 of the Bankruptcy Code or under any applicable state Uniform
        Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute
        or
        common law.

       

      4. Miscellaneous.
        

       

      4.1 Expenses.
        Guarantor shall pay to the Lenders, on demand, the amount of any and all
        reasonable expenses, including, without limitation, attorneys' fees, legal
        expenses and brokers' fees, which the Lenders may incur in connection with
        exercise or enforcement of any the rights, remedies or powers of the Lenders
        hereunder or with respect to any or all of the Obligations.

      

      4.2 Waivers,
        Amendment and Remedies.
        No
        course of dealing by the Lenders and no failure by the Lenders to exercise,
        or
        delay by the Lender in exercising, any right, remedy or power hereunder shall
        operate as a waiver thereof, and no single or partial exercise thereof shall
        preclude any other or further exercise thereof or the exercise of any other
        right, remedy or power of the Lenders. No amendment, modification or waiver
        of
        any provision of this Guaranty and no consent to any departure by Guarantor
        therefrom, shall, in any event, be effective unless contained in a writing
        signed by the Majority in Interest (as such term is defined in the Collateral
        Agent Agreement) or the Lender or Lenders against whom such amendment,
        modification or waiver is sought, and then such waiver or consent shall be
        effective only in the specific instance and for the specific purpose for
        which
        given. The rights, remedies and powers of the Lenders, not only hereunder,
        but
        also under any instruments and agreements evidencing or securing the Obligations
        and under applicable law are cumulative, and may be exercised by the Lenders
        from time to time in such order as the Lenders may elect.

      

      4.3 Notices.
        All
        notices or other communications given or made hereunder shall be given in
        the
        same manner as set forth in Section 13(b) of the Subscription Agreement to
        the
        party to receive the same at its address set forth below or to such other
        address as either party shall hereafter give to the other by notice duly
        made
        under this Section:

      

      
        	
                To
                  Guarantor, to:

              	
                Attitude
                  Drinks Inc.

              
	 	
                11300
                  U.S. Highway 1, Suite 207

              
	 	
                North
                  Palm Beach, Florida 33408

              
	 	
                Attn:
                  Roy Warren, CEO and President

              
	 	
                Fax:
                  (561) 799-5039

              
	 	 
	
                With
                  a copy by telecopier only to:

              
	 	 
	 	
                Weed
                  & Co., LLP

              
	 	
                4695
                  MacArthur Court, Suite 1430

              
	 	
                Newport
                  Beach, CA 92660

              
	 	
                Attn:
                  Rick Weed, Esq.

              
	 	
                Fax:
                  (949) 475-9087

              

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      
        	
                To
                  Lenders:

              	
                To
                  the addresses and telecopier numbers set

              
	 	
                Forth
                  on Schedule A

              
	 	 
	
                To
                  the Collateral Agent:

              	
                Barbara
                  R. Mittman

              
	 	
                551
                  Fifth Avenue, Suite 1601

              
	 	
                New
                  York, New York 10176

              
	 	
                Fax:
                  (212) 697-3575

              
	 	 
	
                If
                  to Guarantor, Lender or

              
	
                Collateral
                  Agent, with a copy by telecopier only to:

              
	 	 
	
              	
                Grushko
                  & Mittman, P.C.

              
	
              	
                551
                  Fifth Avenue, Suite 1601

              
	
              	
                New
                  York, New York 10176

              
	
              	
                Fax:
                  (212) 697-3575

              

      

      

      Any
        party
        may change its address by written notice in accordance with this
        paragraph.

      

      4.4 Term;
        Binding Effect.
        This
        Guaranty shall (a) remain in full force and effect until payment and
        satisfaction in full of all of the Obligations; (b) be binding upon Guarantor
        and its successors and permitted assigns; and (c) inure to the benefit of
        the
        Lenders and their respective successors and assigns. All
        the
        rights and benefits granted by Guarantor to the Collateral Agent and Lenders
        hereunder and other agreements and documents delivered in connection therewith
        are deemed granted to both the Collateral Agent and Lenders. Upon the payment
        in
        full of the Obligations, (i) this Guaranty shall terminate and (ii) the Lenders
        will, upon Guarantor's request and at Guarantor's expense, execute and deliver
        to Guarantor such documents as Guarantor shall reasonably request to evidence
        such termination, all without any representation, warranty or recourse
        whatsoever.

      

      4.5 Captions.
        The
        captions of Paragraphs, Articles and Sections in this Guaranty have been
        included for convenience of reference only, and shall not define or limit
        the
        provisions hereof and have no legal or other significance
        whatsoever.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      4.6 Governing
        Law; Venue; Severability.
        This
        Guaranty shall be governed by and construed in accordance with the laws of
        the
        State of New York without regard to principles of conflicts or choice of
        law.
        Any legal action or proceeding against Guarantor with respect to this Guaranty
        may be brought in the courts of the State of New York or of the United States
        for the Southern District of New York, and, by execution and delivery of
        this
        Guaranty, Guarantor hereby irrevocably accepts for itself and in respect
        of its
        property, generally and unconditionally, the jurisdiction of the aforesaid
        courts. Guarantor hereby irrevocably waives any objection which they may
        now or
        hereafter have to the laying of venue of any of the aforesaid actions or
        proceedings arising out of or in connection with this Guaranty brought in
        the
        aforesaid courts and hereby further irrevocably waives and agrees not to
        plead
        or claim in any such court that any such action or proceeding brought in
        any
        such court has been brought in an inconvenient forum. If any provision of
        this
        Guaranty, or the application thereof to any person or circumstance, is held
        invalid, such invalidity shall not affect any other provisions which can
        be
        given effect without the invalid provision or application, and to this end
        the
        provisions hereof shall be severable and the remaining, valid provisions
        shall
        remain of full force and effect. This
        Guaranty shall be deemed an unconditional obligation of Guarantor for the
        payment of money and, without limitation to any other remedies of Lenders,
        may
        be enforced against Guarantor by summary proceeding pursuant to New York
        Civil
        Procedure Law and Rules Section 3213 or any similar rule or statute in the
        jurisdiction where enforcement is sought. For purposes of such rule or statute,
        any other document or agreement to which Lenders and Guarantor are parties
        or
        which Guarantor delivered to Lenders, which may be convenient or necessary
        to
        determine Lenders’ rights hereunder or Guarantor’s obligations to Lenders are
        deemed a part of this Guaranty, whether or not such other document or agreement
        was delivered together herewith or was executed apart from this
        Guaranty.
        Each
        party hereby irrevocably waives personal service of process and consents
        to
        process being served in any suit, action or proceeding in connection with
        this
        Agreement or any other Transaction Document by mailing a copy thereof via
        registered or certified mail or overnight delivery (with evidence of delivery)
        to such party at the address in effect for notices to it under this Agreement
        and agrees that such service shall constitute good and sufficient service
        of
        process and notice thereof. Nothing contained herein shall be deemed to limit
        in
        any way any right to serve process in any other manner permitted by law.
        Each
        Guarantor irrevocably appoints Parent its true and lawful agent for service
        of
        process upon whom all processes of law and notices may be served and given
        in
        the manner described above; and such service and notice shall be deemed valid
        personal service and notice upon each such Guarantor with the same force
        and
        validity as if served upon such Guarantor.

      

      4.7 Satisfaction
        of Obligations.
        For all
        purposes of this Guaranty, the payment in full of the Obligations shall be
        conclusively deemed to have occurred when either the Obligations have been
        indefeasibly paid or all outstanding Notes have been converted to common
        stock
        pursuant to the terms of the Notes and the Subscription Agreements.

      

      4.8 Counterparts/Execution.
        This
        Agreement may be executed in any number of counterparts and by the different
        signatories hereto on separate counterparts, each of which, when so executed,
        shall be deemed an original, but all such counterparts shall constitute but
        one
        and the same instrument. This Agreement may be executed by facsimile signature
        and delivered by facsimile transmission.

      

      [THE
        BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the
        undersigned have executed and delivered this Guaranty, as of the date first
        written above.

      

      “GUARANTOR”

      Attitude
        Drink Company, Inc.

      a
        Delaware corporation

      

      
        	
                By:

              	 
	
                Name:
                  Roy G. Warren

              
	
                Its:
                  President

              

      

      

      This
        Guaranty Agreement may be signed by facsimile signature
        and

      delivered
        by confirmed facsimile transmission.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A TO GUARANTY

      

      
        	
                LENDER

              	 	
                INITIAL CLOSING

                DATE ESCROWED

                PAYMENT

                (PURCHASE PRICE)

              	
                 

              	
                SECOND CLOSING

                DATE ESCROWED

                PAYMENT

                (PURCHASE PRICE)

              	 
	
                ROY
                  WARREN

                11300
                  U.S. Highway
                  1, Suite 207

                North
                  Palm Beach, Florida 33408

                Fax:
                  (561) 799-5039

              	 	
                $

              	
                50,000.00

              	 	
                $

              	
                50,000.00

              	 
	 	 	 	 	 	 	 	 
	
                ALPHA
                  CAPITAL ANSTALT

                Pradafant
                  7

                9490
                  Furstentums

                Vaduz,
                  Lichtenstein

                Fax:
                  011-42-32323196

              	 	
                $

              	
                300,000.00

              	 	
                $

              	
                300,000.00

              	 
	 	 	 	 	 	 	 	 
	
                WHALEHAVEN
                  CAPITAL FUND LIMITED

                3rd
                  Fl., 14 Par-La-Ville Rd.

                Hamilton,
                  Bermuda HM08

                Fax:
                  (201) 782-9327

              	 	
                $

              	
                150,000.00

              	 	
                $

              	
                150,000.00

              	 
	 	 	 	 	 	 	 	 
	
                MONARCH
                  CAPITAL FUND LTD.

                Harbour
                  House, 2nd
                  Floor

                Waterfront
                  Drive, Road Town

                Tortola,
                  BVI

                Fax
                  (284) 494-4771

              	 	
                $

              	
                100,000.00

              	 	
                $

              	
                100,000.00

              	 
	 	 	 	 	 	 	 	 
	
                TOTALS

              	 	
                $

              	
                600,000.00

              	 	
                $

              	
                600,000.00

              	 

      

      
        
          
          

        

        
          7COLLATERAL
      AGENT AGREEMENT

    

    COLLATERAL
      AGENT AGREEMENT (this "Agreement")
      dated
      as of October 23, 2007, among Barbara R. Mittman (the "Collateral
      Agent"),
      and
      the parties identified on Schedule A hereto (each, individually, a "Lender"
      and
      collectively, the "Lenders"),
      who
      hold or will acquire promissory Notes issued or to be issued by Attitude Drinks
      Inc. (“Parent”), a Delaware corporation, at or about the date of this Agreement
      and subsequent to the date of this Agreement as described in the Security
      Agreement referred to in Section 1(a) below (collectively herein the
“Notes").

    

    WHEREAS,
      the Lenders have made, are making and will be making loans to Parent to be
      secured by certain collateral; and

    

    WHEREAS,
      it is desirable to provide for the orderly administration of such collateral
      by
      requiring each Lender to appoint the Collateral Agent, and the Collateral Agent
      has agreed to accept such appointment and to receive, hold and deliver such
      collateral, all upon the terms and subject to the conditions hereinafter set
      forth; and

    

    WHEREAS,
      it is desirable to allocate the enforcement of certain rights of the Lenders
      under the Notes for the orderly administration thereof.

    

    NOW,
      THEREFORE, in consideration of the premises set forth herein and for other
      good
      and valuable consideration, the parties hereto agree as follows:

    

    1. Collateral.

    

    (a) Contemporaneously
      with the execution and delivery of this Agreement by the Collateral Agent and
      the Lenders, (i) the Collateral Agent has or will have entered into Security
      Agreement among the Collateral Agent, Parent and Attitude Drink Company, Inc.,
      a
      Delaware corporation (“Guarantor”) (the "Security
      Agreement"),
      regarding the grant of a security interest in the assets of Parent and Guarantor
      (such assets are referred to herein and in the Security Agreement as the
      "Collateral")
      to the
      Collateral Agent, for the benefit of the Lenders, (ii) Guarantor will have
      executed and delivered a “Subsidiary Guaranty” in favor of Lenders in connection
      with the Obligations (as defined in the Security Agreements), and (iii) Parent
      is issuing the Notes to the Lenders pursuant to a “Subscription Agreement” dated
      at or about the date of this Agreement. Collectively, the Security Agreement,
      the Notes, Subsidiary Guaranty, and Subscription Agreement and other agreements
      referred to therein are referred to herein as "Borrower
      Documents".

    

    (b) The
      Collateral Agent hereby acknowledges that any Collateral held by the Collateral
      Agent is held for the benefit of the Lenders in accordance with this Agreement
      and the Borrower Documents. No reference to the Borrower Documents or any other
      instrument or document shall be deemed to incorporate any term or provision
      thereof into this Agreement unless expressly so provided.

    

    (c) The
      Collateral Agent is to distribute in accordance with the Borrower Documents
      any
      proceeds received from the Collateral which are distributable to the Lenders
      in
      proportion to their respective interests in the Obligations as defined in the
      Security Agreement.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    2. Appointment
      of the Collateral Agent.

     

    The
      Lenders hereby appoint the Collateral Agent (and the Collateral Agent hereby
      accepts such appointment) to take any action including, without limitation,
      the
      registration of any Collateral in the name of the Collateral Agent or its
      nominees prior to or during the continuance of an Event of Default (as defined
      in the Borrower Documents), the exercise of voting rights upon the occurrence
      and during the continuance of an Event of Default, the application of any cash
      collateral received by the Collateral Agent to the payment of the Obligations,
      the making of any demand under the Borrower Documents, the exercise of any
      remedies given to the Collateral Agent pursuant to the Borrower Documents and
      the exercise of any authority pursuant to the appointment of the Collateral
      Agent as an attorney-in-fact pursuant to the Security Agreement that the
      Collateral Agent deems necessary or proper for the administration of the
      Collateral pursuant to the Security Agreement. Upon disposition of the
      Collateral in accordance with the Borrower Documents, the Collateral Agent
      shall
      promptly distribute any cash or Collateral in accordance with Section 10.4
      of
      the Security Agreement. Parent and Lenders must notify Collateral Agent in
      writing of the issuance of Notes to Lenders by Parent. The Collateral Agent
      will
      not be required to act hereunder in connection with Notes the issuance of which
      was not disclosed in writing to the Collateral Agent nor will the Collateral
      Agent be required to act on behalf of any assignee of Notes without the written
      consent of Collateral Agent.

    

    3. Action
      by the Majority in Interest.

    

    (a) Certain
      Actions.
      Each of
      the Lenders covenants and agrees that only a Majority in Interest shall have
      the
      right, but not the obligation, to undertake the following actions (it being
      expressly understood that less than a Majority in Interest hereby expressly
      waive the following rights that they may otherwise have under the Borrower
      Documents):

    

    (i) Acceleration.
      If an
      Event of Default occurs, after the applicable cure period, if any, a Majority
      in
      Interest may, on behalf of all the Lenders, instruct the Collateral Agent to
      provide to Parent and Guarantor notice to cure such default and/or declare
      the
      unpaid principal amount of the Notes to be due and payable, together with any
      and all accrued interest thereon and all costs payable pursuant to such Notes
      or
      in connection with the Borrower Documents;

    

    (ii) Enforcement.
      Upon
      the occurrence of any Event of Default after the applicable cure period, if
      any,
      a Majority in Interest may instruct the Collateral Agent to proceed to protect,
      exercise and enforce, on behalf of all the Lenders, their rights and remedies
      under the Borrower Documents, and such other rights and remedies as are provided
      by law or equity; and

    

    (iii) Waiver
      of Past Defaults.
      A
      Majority in Interest may instruct the Collateral Agent in writing to waive
      any
      Event of Default but not waive damages accrued or accruing until the effective
      date of such waiver.

    

    (b) Permitted
      Subordination and Release.
      A
      Majority in Interest may instruct the Collateral Agent to agree to release
      in
      whole or in part or to subordinate any Collateral to any claim or other actual
      or proposed security interest and may enter into any agreement with Parent
      and/or Guarantor to evidence such subordination; provided,
      however,
      that
      subsequent to any such release or subordination, each Note shall remain
pari passu
      with the
      other Notes held by the Lenders.

    

    (c) Further
      Actions.
      A
      Majority in Interest may instruct the Collateral Agent to take any action that
      it may take under this Agreement by instructing the Collateral Agent in writing
      to take such action on behalf of all the Lenders.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (d) Majority
      in Interest.
      For so
      long as any obligations remain outstanding on the Notes, Majority in Interest
      for the purposes of this Agreement and the Borrower Documents shall mean Lenders
      who hold not less than seventy-five percent (75%) of the outstanding principal
      amount of the Notes. 

    

    4. Power
      of Attorney.

    

    (a) To
      effectuate the terms and provisions hereof, the Lenders hereby appoint the
      Collateral Agent as their attorney-in-fact (and the Collateral Agent hereby
      accepts such appointment) for the purpose of carrying out the provisions of
      this
      Agreement including, without limitation, taking any action on behalf of, or
      at
      the instruction of, the Majority in Interest at the written direction of the
      Majority in Interest and executing any consent authorized pursuant to this
      Agreement and taking any action and executing any instrument that the Collateral
      Agent may deem necessary or advisable (and lawful) to accomplish the purposes
      hereof.

    

    (b) All
      acts
      done under the foregoing authorization are hereby ratified and approved and
      neither the Collateral Agent nor any designee nor agent thereof shall be liable
      for any acts of commission or omission, for any error of judgment, for any
      mistake of fact or law except for acts of gross negligence or willful
      misconduct.

    

    (c) This
      power of attorney, being coupled with an interest, is irrevocable while this
      Agreement remains in effect.

    

    5. Expenses
      of the Collateral Agent.
      The
      Lenders shall pay any and all reasonable costs and expenses incurred by the
      Collateral Agent, including, without limitation, reasonable costs and expenses
      relating to all waivers, releases, discharges, satisfactions, modifications
      and
      amendments of this Agreement, the administration and holding of the Collateral,
      insurance expenses, and the enforcement, protection and adjudication of the
      parties' rights hereunder by the Collateral Agent, including, without
      limitation, the reasonable disbursements, expenses and fees of the attorneys
      the
      Collateral Agent may retain, if any, each of the foregoing in proportion to
      their holdings of the Notes.

    

    6. Reliance
      on Documents and Experts.
      The
      Collateral Agent shall be entitled to rely upon any notice, consent,
      certificate, affidavit, statement, paper, document, writing or communication
      (which may be by telegram, cable, telex, telecopier, or telephone) reasonably
      believed by it to be genuine and to have been signed, sent or made by the proper
      person or persons, and upon opinions and advice of its own legal counsel,
      independent public accountants and other experts selected by the Collateral
      Agent.

    

    7. Duties
      of the Collateral Agent; Standard of Care.

    

    (a) The
      Collateral Agent's only duties are those expressly set forth in this Agreement,
      and the Collateral Agent hereby is authorized to perform those duties in
      accordance with commercially reasonable practices. The Collateral Agent may
      exercise or otherwise enforce any of its rights, powers, privileges, remedies
      and interests under this Agreement and applicable law or perform any of its
      duties under this Agreement by or through its officers, employees, attorneys,
      or
      agents.

    

    (b) The
      Collateral Agent shall act in good faith and with that degree of care that
      an
      ordinarily prudent person in a like position would use under similar
      circumstances.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (c) Any
      funds
      held by the Collateral Agent hereunder need not be segregated from other funds
      except to the extent required by law. The Collateral Agent shall be under no
      liability for interest on any funds received by it hereunder.

    

    8. Resignation.
      The
      Collateral Agent may resign and be discharged of its duties hereunder at any
      time by giving written notice of such resignation to the other parties hereto,
      stating the date such resignation is to take effect. Within five (5) days of
      the
      giving of such notice, a successor collateral agent shall be appointed by the
      Majority in Interest; provided,
      however,
      that if
      the Lenders are unable so to agree upon a successor within such time period,
      and
      notify the Collateral Agent during such period of the identity of the successor
      collateral agent, the successor collateral agent may be a person designated
      by
      the Collateral Agent, and any and all fees of such successor collateral agent
      shall be the joint and several obligation of the Lenders. The Collateral Agent
      shall continue to serve until the effective date of the resignation or until
      its
      successor accepts the appointment and receives the Collateral held by the
      Collateral Agent but shall not be obligated to take any action hereunder. The
      Collateral Agent may deposit any Collateral with the Supreme Court of the State
      of New York for New York County or any such other court in New York State that
      accepts such Collateral.

    

    9. Exculpation.
      The
      Collateral Agent and its officers, employees, attorneys and agents, shall not
      incur any liability whatsoever for the holding or delivery of documents or
      the
      taking of any other action in accordance with the terms and provisions of this
      Agreement, for any mistake or error in judgment, for compliance with any
      applicable law or any attachment, order or other directive of any court or
      other
      authority (irrespective of any conflicting term or provision of this Agreement),
      or for any act or omission of any other person engaged by the Collateral Agent
      in connection with this Agreement, unless occasioned by the exculpated person's
      own gross negligence or willful misconduct; and each party hereto hereby waives
      any and all claims and actions whatsoever against the Collateral Agent and
      its
      officers, employees, attorneys and agents, arising out of or related directly
      or
      indirectly to any or all of the foregoing acts, omissions and circumstances.
      

    

    10. Indemnification.
      The
      Lenders hereby agree to indemnify, reimburse and hold harmless the Collateral
      Agent and its directors, officers, employees, attorneys and agents, jointly
      and
      severally, from and against any and all claims, liabilities, losses and expenses
      that may be imposed upon, incurred by, or asserted against any of them, arising
      out of or related directly or indirectly to this Agreement or the Collateral,
      except such as are occasioned by the indemnified person's own gross negligence
      or willful misconduct.

    

    11. Miscellaneous.

    

    (a) Rights
      and Remedies Not Waived.
      No act,
      omission or delay by the Collateral Agent shall constitute a waiver of the
      Collateral Agent's rights and remedies hereunder or otherwise. No single or
      partial waiver by the Collateral Agent of any default hereunder or right or
      remedy that it may have shall operate as a waiver of any other default, right
      or
      remedy or of the same default, right or remedy on a future
      occasion.

    

    (b) Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York without
      regard to conflicts
      of laws that
      would result
      in
      the application of the
      substantive laws of another
      jurisdiction.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c) Waiver
      of Jury Trial and Setoff; Consent to Jurisdiction; Etc.

    

    (i) In
      any
      litigation in any court with respect to, in connection with, or arising out
      of
      this Agreement or any instrument or document delivered pursuant to this
      Agreement, or the validity, protection, interpretation, collection or
      enforcement hereof or thereof, or any other claim or dispute howsoever arising,
      between the Collateral Agent and the Lenders or any Lender, then each Lender,
      to
      the fullest extent it may legally do so, (A) waives the right to interpose
      any
      setoff, recoupment, counterclaim or cross-claim in connection with any such
      litigation, irrespective of the nature of such setoff, recoupment, counterclaim
      or cross-claim, unless such setoff, recoupment, counterclaim or cross-claim
      could not, by reason of any applicable federal or state procedural laws, be
      interposed, pleaded or alleged in any other action; and (B) WAIVES
      TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION AND ANY RIGHT IT MAY HAVE
      TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE
      OR
      CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
      DAMAGES. EACH LENDER AGREES THAT THIS SECTION 11(c) IS A SPECIFIC AND MATERIAL
      ASPECT OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE COLLATERAL AGENT WOULD NOT
      ENTER THIS AGREEMENT IF THIS SECTION 11(c) WERE NOT PART OF THIS
      AGREEMENT.

    

    (ii) Each
      Lender irrevocably consents to the exclusive jurisdiction of any State or
      Federal Court located within the County of New York, State of New York, in
      connection with any action or proceeding arising out of or relating to this
      Agreement or any document or instrument delivered pursuant to this Agreement
      or
      otherwise. Each
      party hereby irrevocably waives personal service of process and consents to
      process being served in any suit, action or proceeding in connection with this
      Agreement or any other Transaction Document by mailing a copy thereof via
      registered or certified mail or overnight delivery (with evidence of delivery)
      to such party at the address in effect for notices to it under this Agreement
      and agrees that such service shall constitute good and sufficient service of
      process and notice thereof. Nothing contained herein shall be deemed to limit
      in
      any way any right to serve process in any other manner permitted by
      law.
      Each
      Lender hereby waives, to the fullest extent it may effectively do so, the
      defenses of forum non conveniens and improper venue.

    

    (d) Admissibility
      of this Agreement.
      Each of
      the Lenders agrees that any copy of this Agreement signed by it and transmitted
      by telecopier for delivery to the Collateral Agent shall be admissible in
      evidence as the original itself in any judicial or administrative proceeding,
      whether or not the original is in existence.

    

    (e) Address
      for Notices.
      Any
      notice or other communication under the provisions of this Agreement shall
      be
      given in writing and delivered in person, by reputable overnight courier or
      delivery service, by facsimile machine (receipt confirmed) with a copy sent
      by
      first class mail on the date of transmissions, or by registered or certified
      mail, return receipt requested, directed to such party’s addresses set forth
      below (or to any new address of which any party hereto shall have informed
      the
      others by the giving of notice in the manner provided herein):

    

    In
      the
      case of the Collateral Agent, to:

    

    Barbara
      R. Mittman

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    In
      the
      case of the Lenders, to:

    

    To
      the
      address and telecopier number set forth on 

    Schedule
      A hereto.

    

    In
      the
      case of Parent and Guarantor, to:

    Attitude
      Drinks Inc.

    11300
      U.S. Highway
      1, Suite 207

    North
      Palm Beach, Florida 33408

    Attn:
      Roy
      Warren, CEO and President

    Fax:
      (561) 799-5039

    

    With
      a
      copy by telecopier only to:

    

    Weed
      & Co., LLP

    4695
      MacArthur Court, Suite 1430

    Newport
      Beach, CA 92660

    Attn:
      Rick Weed, Esq.

    Fax:
      (949) 475-9087  

    

    If
      to
      Parent, Guarantor, Lender or Collateral Agent,

    with
      a
      copy by telecopier only to:

    

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    

    (f) Amendments
      and Modification; Additional Lender.
      No
      provision hereof shall be modified, altered, waived or limited except by written
      instrument expressly referring to this Agreement and to such provision, and
      executed by the parties hereto. Any transferee of a Note who acquires a Note
      after the date hereof will become a party hereto by signing the signature page
      and sending an executed copy of this Agreement to the Collateral Agent and
      receiving a signed acknowledgement from the Collateral Agent.

    

    (g) Fee.
      Upon
      the occurrence of an Event of Default, the Lenders collectively shall pay the
      Collateral Agent the sum of $10,000 on account, to apply against an hourly
      fee
      of $350 to be paid to the Collateral Agent by the Lenders for services rendered
      pursuant to this Agreement. All payments due to the Collateral Agent under
      this
      Agreement including reimbursements must be paid when billed. The Collateral
      Agent may refuse to act on behalf of or make a distribution to any Lender who
      is
      not current in payments to the Collateral Agent. Payments required pursuant
      to
      this Agreement shall be pari passu
      to the
      Lenders' interests in the Notes. The Collateral Agent is hereby authorized
      to
      deduct any sums due the Collateral Agent from Collateral in the Collateral
      Agent's possession. Parent
      and Guarantor agree to jointly and severally and promptly reimburse Lenders
      for
      all payments made by Lender to Collateral Agent hereunder. Failure to promptly
      reimburse Lenders is an Event of default under the Notes.

    

    (h) 
      Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (i) Successors
      and Assigns.
      Whenever in this Agreement reference is made to any party, such reference shall
      be deemed to include the successors, assigns, heirs and legal representatives
      of
      such party. No party hereto may transfer any rights under this Agreement, unless
      the transferee agrees to be bound by, and comply with all of the terms and
      provisions of this Agreement, as if an original signatory hereto on the date
      hereof.

    

    (j) Captions:
      Certain Definitions.
      The
      captions of the various sections and paragraphs of this Agreement have been
      inserted only for the purposes of convenience; such captions are not a part
      of
      this Agreement and shall not be deemed in any manner to modify, explain, enlarge
      or restrict any of the provisions of this Agreement. As used in this Agreement
      the term "person"
      shall
      mean and include an individual, a partnership, a joint venture, a corporation,
      a
      limited liability company, a trust, an unincorporated organization and a
      government or any department or agency thereof.

    

    (k) Severability.
      In the
      event that any term or provision of this Agreement shall be finally determined
      to be superseded, invalid, illegal or otherwise unenforceable pursuant to
      applicable law by an authority having jurisdiction and venue, that determination
      shall not impair or otherwise affect the validity, legality or enforceability
      (i) by or before that authority of the remaining terms and provisions of this
      Agreement, which shall be enforced as if the unenforceable term or provision
      were deleted, or (ii) by or before any other authority of any of the terms
      and
      provisions of this Agreement.

    

    (l) Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties and supersedes all other
      agreements and understandings, oral or written, with respect to the matters
      contained herein.

    

    (m) Schedules.
      The
      Collateral Agent is authorized to annex hereto any schedules referred to
      herein.

    

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Collateral Agent Agreement
      to be signed, by their respective duly authorized officers or directly, as
      of
      the date first written above.

    

    “LENDERS”

     

    
      	
              ROY
                WARREN

            	
              ALPHA
                CAPITAL ANSTALT

            
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	 	 	 	 
	
              Print
                Name of Signator: _______________________________

            	
              Print
                Name of Signator: _________________________

            
	 	 
	
              WHALEHAVEN
                CAPITAL FUND LIMITED

            	
              MONARCH
                CAPITAL FUND LTD.

            
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	 	 	 	 
	
              Print
                Name of Signator: _______________________________

            	
              Print
                Name of Signator: _________________________

            
	 	 	 
	 	 
	
            	BARBARA
              R. MITTMAN - Collateral Agent
	 	 	 
	
              Acknowledged
                and Agreed:

            	 	 
	 	 	 
	
              "PARENT"

            	
              “GUARANTOR”

            
	
              ATTITUDE
                DRINKS INC.

            	
              ATTITUDE
                DRINKS COMPANY INC.

            
	
              a
                Delaware corporation

            	
              a
                Delaware corporation

            
	 	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            	 
	 	 	 	 	 
	
              Its:
                

            	 	 	
              Its:
                

            	 

    

    

    This
      Collateral Agent Agreement may be signed by facsimile signature and delivered
      by
      confirmed facsimile transmission.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A TO COLLATERAL AGENT AGREEMENT

    

    
      	
              LENDER

            	 	
              INITIAL CLOSING

              DATE ESCROWED

              PAYMENT

              (PURCHASE PRICE)

            	 	
              SECOND CLOSING

              DATE ESCROWED

              PAYMENT

              (PURCHASE PRICE)

            	 
	
              ROY
                WARREN

              11300
                U.S. Highway
                1, Suite 207

              North
                Palm Beach, Florida 33408

              Fax:
                (561) 799-5039

            	 	
              $

            	
              50,000.00

            	 	
              $

            	
              50,000.00

            	 
	 	 	 	 	 	 	 	 
	
              ALPHA
                CAPITAL ANSTALT

              Pradafant
                7

              9490
                Furstentums

              Vaduz,
                Lichtenstein

              Fax:
                011-42-32323196

            	 	
              $

            	
              300,000.00

            	 	
              $

            	
              300,000.00

            	 
	 	 	 	 	 	 	 	 
	
              WHALEHAVEN
                CAPITAL FUND LIMITED

              3rd
                Fl., 14 Par-La-Ville Rd.

              Hamilton,
                Bermuda HM08

              Fax:
                (201) 782-9327

            	 	
              $

            	
              150,000.00

            	 	
              $

            	
              150,000.00

            	 
	 	 	 	 	 	 	 	 
	
              MONARCH
                CAPITAL FUND LTD.

              Harbour
                House, 2nd
                Floor

              Waterfront
                Drive, Road Town

              Tortola,
                BVI

              Fax
                (284) 494-4771

            	 	
              $

            	
              100,000.00

            	 	
              $

            	
              100,000.00

            	 
	
              TOTALS

            	 	
              $

            	
              600,000.00

            	 	
              $

            	
              600,000.00

            	 

    

    
      
        
        

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]