Exhibit 10.4
AVP, Inc.
6100 Center Drive, 9th Floor
Los Angeles, California 90045
September 8, 2008
RJSM Partners, LLC
660 Madison Avenue
17th Floor
New York, New York 10065
Re: Side Letter
To RJSM Partners, LLC:
In reference to your purchase of 50,000 shares of Series B Convertible Preferred Stock pursuant to the Subscription Agreement between you and AVP, Inc. (the Company) on the date hereof, the Company hereby agrees that, after the date hereof but prior to the conversion of the Series B Convertible Preferred Stock into shares of common stock of the Company, the Company will not designate any additional authorized but unissued preferred stock as Series B Preferred Stock without the prior written consent of a majority of the holders of the then outstanding shares of Series B Preferred Stock.
As of the date hereof, the Company represents and warrants that there are 94,944 shares of Series B Convertible Preferred Stock currently authorized. Immediately following the closing of the sale and your purchase of the Series B Convertible Preferred Stock (the Initial Closing), there will be 44,944 shares of Series B Convertible Preferred Stock issued to third parties and 50,000 shares of Series B Convertible Preferred Stock issued to RJSM Partners, LLC. Effective upon the Initial Closing, no other shares of Series B Convertible Preferred Stock shall be issued without the prior written consent of the majority of the Series B Convertible Preferred Stock holders.
This letter agreement should be governed by and construed in accordance with the laws of the State of Delaware without regard to conflict of law provisions of such state.
[SIGNATURE PAGE FOLLOWS]
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Sincerely, |
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AVP, Inc. |
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By: |
/s/ Leonard Armato |
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Name: Leonard Armato |
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Title: CEO, Chairman, and Commissioner |
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ACKNOWLEDGED: |
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RJSM Partners, LLC |
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By: |
/s/ Nicholas Lewin |
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Name: Nicholas Lewin |
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Title: Managing Member |
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Side Letter Signature Page