1 Exhibit 10.13 DISTRIBUTION AGREEMENT This Distribution Agreement is made this 30th day of July, 1996, between Beverage Works, Inc., a California corporation (hereinafter "SUPPLIER") having its principal office at 9800 S. Sepulveda Blvd, # 720, Los Angeles, CA 90045, and Southern Wine & Spirits of America, Inc., d/b/a Southern Wine & Spirits of California, (hereinafter "DISTRIBUTOR"), having its office at 17101 Valley View Av., Cerritos CA 90703. RECITALS A. SUPPLIER, through its wholly owned subsidiaries and other affiliated companies, owns, operates and manages craft breweries that produce the products described in Exhibit "A" to this Agreement (hereinafter "PRODUCTS"). B. DISTRIBUTOR is in the business of marketing, selling and distributing various beverage products, including beer. C. SUPPLIER and DISTRIBUTOR desire to enter into an agreement whereby DISTRIBUTOR will be the distributor of PRODUCTS within the geographical area described in Exhibit "B" to this Agreement (hereinafter "TERRITORY"). Wherefore, pursuant to the terms and conditions set forth below and the provisions of the Alcoholic Beverage Control Act of the State of California, the parties agree as follows: 1. APPOINTMENT. SUPPLIER hereby appoints DISTRIBUTOR as distributor of PRODUCTS and grants to DISTRIBUTOR the exclusive right to market, sell and distribute PRODUCTS within the TERRITORY. 2. PRODUCTS AND TERRITORY LIMITATIONS. (a) The parties may, at any time during the term of this Agreement, amend Exhibit "A" to add to the list of PRODUCTS to which this Agreement applies. Any such amendment shall be in a writing signed by the parties which identifies the product or products to be added and the date the amendment shall take effect. (b) SUPPLIER may, in its sole discretion, discontinue production of any product described in Exhibit "A" or any amendment thereto upon giving 30 days written notice to DISTRIBUTOR specifying the PRODUCT that is to be discontinued. No product that will remain in production may be deleted from Exhibit "A" or any amendment thereof during the term of this Agreement unless DISTRIBUTOR agrees to the deletion in writing. (c) DISTRIBUTOR shall not intentionally market, sell or distribute PRODUCTS to any retail location outside the TERRITORY nor to any wholesaler or other person or entity who DISTRIBUTOR knows or has reason to believe will sell or distribute all or any part of such PRODUCTS outside of the TERRITORY unless prior written 1 2 authorization is obtained from SUPPLIER. 3. TERM OF AGREEMENT. The term of this Agreement shall commence on the date set forth above and shall continue until terminated in accordance with the provisions of this Agreement. 4. RESPONSIBILITIES OF DISTRIBUTOR. (a) DISTRIBUTOR shall use its best efforts to market, promote and sell the PRODUCTS within the TERRITORY. (b) DISTRIBUTOR shall maintain adequate and properly trained personnel to handle all marketing, sales and distribution tasks necessary to meet its obligations under this Agreement. (c) DISTRIBUTOR shall develop a marketing and sales program that is based on the size and type of accounts and potential accounts within the TERRITORY and shall establish a schedule for periodic calls on accounts at a regular frequency appropriate for the characteristics of each account. (d) DISTRIBUTOR shall maintain an adequate inventory of PRODUCTS to supply the reasonably anticipated volume of orders from the accounts within the territory. The inventory shall be rotated to ensure that the oldest PRODUCTS are delivered first. (e) DISTRIBUTOR shall use its best efforts to maintain a cool, steady temperature in all facilities and vehicles used for the storage, shipment and delivery of products. All kegs shall be properly serviced and maintained in accordance with instructions thereon. (f) DISTRIBUTOR shall not sell or distribute any PRODUCTS that are out of date or otherwise known to be unfit. PRODUCTS marked with a date code shall be sold only within a period of 4 months after the date code. PRODUCTS marked with a "sell by" date shall not be sold after the "sell by" date. 5. RESPONSIBILITIES OF SUPPLIER. (a) All PRODUCTS shall be produced in accordance with generally accepted brewing practices and quality standards. (b) SUPPLIER, through its subsidiaries and affiliates, shall sell to DISTRIBUTOR reasonable quantities of the PRODUCTS to serve the TERRITORY, subject to the right of SUPPLIER to place DISTRIBUTOR on allocation if the supply of PRODUCTS is for any reason insufficient to meet the demands of all distributors. SUPPLIER shall not be liable to DISTRIBUTOR for the failure to make PRODUCTS available or for the delay in delivery of PRODUCTS if such failure or delay is caused by lack of sufficient supply or by any other circumstances beyond the reasonable control of SUPPLIER. (c) All point of sale and promotional materials produced 2 3 by SUPPLIER shall be made available to DISTRIBUTOR at no cost to DISTRIBUTOR in such amounts and at such times as SUPPLIER determines in its sole discretion. SUPPLIER agrees to advertise and promote the PRODUCTS and to provide to DISTRIBUTOR sales coordination and assistance to the extent SUPPLIER deems appropriate. (d) The PRODUCTS to be sold to Southern under this Agreement shall be merchantable and fit for human consumption. The PRODUCTS shall be manufactured, packaged and labeled in conformity with applicable U.S. federal, state and local laws, rules and regulations, and the rules and regulations of the United States Bureau of Alcohol, Tobacco, and Firearms and the Food and Drug Administration. This includes, but is not limited to, complete approval from the Bureau of Alcohol, Tobacco, and Firearms regarding bottle labels for the PRODUCTS. (e) The PRODUCTS to be sold to Southern shall be free and clear of all liens. Neither the execution and delivery of this Agreement, nor compliance with its terms and provisions, will result in the creation or imposition of any lien, charge, encumbrance, or restriction of any nature upon the PRODUCT to be sold to Southern. (f) SUPPLIER shall utilize its best efforts to prevent the sale of unauthorized shipments of the PRODUCTS in the Territory by entities or persons other than Southern. In this regard, SUPPLIER shall not sell or otherwise transfer the PRODUCTS to any wholesaler or distributor located outside the Territory whom SUPPLIER knows, or has reason to believe, will, either directly or indirectly, sell or otherwise transfer the PRODUCTS into the Territory, including, but not limited to, any state agency. 6. PERFORMANCE STANDARDS. There shall be established by mutual agreement of the parties a performance standard applicable to each 12 month period during which this Agreement is in effect and DISTRIBUTOR shall use its best efforts to achieve these standards. The performance standard shall specify the minimum volume of sales of PRODUCTS to be made within the TERRITORY each year. The performance standard shall be agreed upon within 90 days of the commencement of this Agreement and again each year thereafter within 90 days of the anniversary of the commencement of this Agreement. 7. PRICING. SUPPLIER shall sell the products to DISTRIBUTOR at the prices specified from time to time in price lists published and posted by SUPPLIER. The published prices shall clearly indicate any taxes, fees and transportation costs that are included. Changes in the price lists may be made at any time by SUPPLIER and shall be effective 60 days after such new price list is published and posted. The price list in effect as of the commencement of this Agreement is set forth in Exhibit "C" to this Agreement. 3 4 8. DEPOSITS. (a) DISTRIBUTOR shall pay a deposit of $12.00 for each keg picked up from the producing facility. The sum of $12.00 shall be refunded to DISTRIBUTOR for each keg returned by DISTRIBUTOR to the producing facility. The sums to be paid by DISTRIBUTOR for deposits on kegs shall appear on the invoices issued by the producing facility for the PRODUCTS ordered by DISTRIBUTOR. The sums to be paid as refunds on kegs returned by DISTRIBUTOR shall be set forth in invoices issued by DISTRIBUTOR to the producing facility. DISTRIBUTOR shall pay to SUPPLIER an initial keg deposit of $0.00 upon execution of this Agreement. Upon termination of this Agreement, SUPPLIER shall refund to DISTRIBUTOR the initial keg deposit, less the sum of $50.00 for each keg that is not returned by DISTRIBUTOR to SUPPLIER or the producing facility. (b) At the time PRODUCTS packaged in bottles are picked up, DISTRIBUTOR shall exchange a standard 42 x 48 four way hard wood pallet for each pallet picked up. DISTRIBUTOR shall pay to the producing facility the sum of $7.00 for each pallet picked up for which an empty pallet is not left in exchange. The charges for pallets shall appear on the invoices issued by the producing facility. 9. ORDERING OF PRODUCT. (a) DISTRIBUTOR shall place orders at such location as shall be designated for the taking of orders in written notice given by SUPPLIER to DISTRIBUTOR from time to time during the term of this Agreement. Each order is subject to acceptance by SUPPLIER. The subsidiary or affiliate that will produce the PRODUCTS ordered shall be designated by SUPPLIER at the time the order is accepted. DISTRIBUTOR shall issue and deliver to the location designated by SUPPLIER a written purchase order to confirm each order placed. Each purchase order shall state whether DISTRIBUTOR will arrange for the PRODUCTS to be picked up or whether SUPPLIER is to arrange for the delivery of the PRODUCT to DISTRIBUTOR. Unless the listed price includes transportation charges, DISTRIBUTOR shall be responsible for any and all transportation costs. (b) An invoice shall be issued by the producing facility to cover each order placed by DISTRIBUTOR. The invoice shall include all taxes, fees and transportation costs to be paid by DISTRIBUTOR. On the date issued, the invoice shall be mailed to DISTRIBUTOR and a copy shall be sent by telefacsimile to DISTRIBUTOR. 10. PAYMENTS. (a) DISTRIBUTOR shall pay all invoices within 30 days of the invoice date. (b) Each producing facility shall prepare and issue statements on or about the 10th day of each month as to PRODUCTS for which invoices were issued during the preceding month. Each 4 5 statement shall clearly state the invoice number and the date of each order to which it applies, the quantities of PRODUCTS ordered, the price per keg or case, the amounts due for taxes, fees and transportation costs, the amounts due for keg deposits and pallet charges, the total amount due under the current statement and any previous balance. (c) SUPPLIER shall pay all invoices to DISTRIBUTOR within 30 days of the invoice date. (d) Both SUPPLIER and DISTRIBUTOR agree to discuss, resolve and pay any disputed invoices within 15 days of the original invoice due date. 11. LICENSES. DISTRIBUTOR, at its own expense, shall obtain and maintain current any and all licenses and permits required by any governmental or regulatory agency or under any statute, ordinance or regulation for the right to sell, distribute or transport alcoholic beverages. SUPPLIER shall cooperate and provide any information and documentation needed by DISTRIBUTOR to obtain or renew any licenses or permits to the extent such information is not otherwise in the possession of or equally available to DISTRIBUTOR. Upon reasonable request by SUPPLIER, DISTRIBUTOR shall provide copies of or other satisfactory evidence of any such license or permit required in any jurisdiction within which DISTRIBUTOR sells, distributes or transports alcoholic beverages. 12. RISK OF LOSS. Title and all risk of loss shall pass to DISTRIBUTOR upon taking possession of the PRODUCTS, whether directly or through its designated agent. If DISTRIBUTOR arranges for the PRODUCTS to be picked up, DISTRIBUTOR shall be deemed to have taken possession at the time the bill of lading is signed by or on behalf of DISTRIBUTOR or the agent of DISTRIBUTOR designated to pick up the PRODUCTS. If DISTRIBUTOR orders PRODUCTS to be delivered, SUPPLIER shall have the right to select the carrier for delivery. DISTRIBUTOR shall be deemed to have taken possession of the PRODUCTS at the point of delivery at the time the bill of lading is signed by or on behalf of DISTRIBUTOR or the agent of DISTRIBUTOR designated to accept delivery. Where SUPPLIER selects the carrier, it shall be SUPPLIER'S responsibility to select a carrier that has the correct amount of insurance coverage (with a reputable insurance company) to cover any loss while order is in transit. 13. BOOKS AND RECORDS. DISTRIBUTOR shall provide to SUPPLIER monthly reports of sales activity detailing the sales of PRODUCTS to each account within the TERRITORY. Such reports shall be delivered to SUPPLIER on or before the 15th day of the month following the month to which the report relates. 5 6 14. LIMITED USE OF TRADENAME. (a) SUPPLIER hereby grants to DISTRIBUTOR a non-exclusive right and license to use the tradenames, trademarks, logos, designs and artwork associated with the PRODUCTS (hereinafter "TRADENAMES") for the limited purpose of marketing, selling and distributing the PRODUCTS within the TERRITORY. DISTRIBUTOR shall acquire no rights, title or interest in the TRADENAMES other than the specific rights granted hereunder. (b) DISTRIBUTOR may include the TRADENAMES on its stationary, advertising and other marketing materials provided that any such written materials clearly reflect that DISTRIBUTOR is an authorized distributor of the PRODUCTS to which the TRADENAMES being used relate. All use of the TRADENAMES shall be in accordance with such policies as may be established by SUPPLIER or the owner of the TRADENAMES. DISTRIBUTOR may not use any TRADENAMES as part of its corporate or business name without the prior authorization of SUPPLIER. (c) DISTRIBUTOR shall not adopt, use or attempt to register any word, symbol, logo or combination thereof which is identical with or confusingly similar to any TRADENAMES. Upon termination of this Agreement, SUPPLIER may apply to cancel any government or administrative acknowledgment of the right of DISTRIBUTOR to use any TRADENAMES. DISTRIBUTOR shall not oppose any such applications and shall consent in writing and join in such application if so requested by SUPPLIER. (d) DISTRIBUTOR shall not remove, alter, cover or otherwise obliterate the TRADENAMES or any portion thereof which appear on the PRODUCTS or the packaging associated with the PRODUCTS at the time of delivery to DISTRIBUTOR without the prior written authorization of SUPPLIER. (e) In the event DISTRIBUTOR becomes aware of or has reason to believe or suspect that any third party is using or infringing any of the TRADENAMES, DISTRIBUTOR shall immediately notify SUPPLIER. 15. TERMINATION. (a) This Agreement may be terminated at any time by mutual agreement of the parties. Such agreement shall be set forth in a writing signed by the parties stating the effective date of termination. (b) DISTRIBUTOR may terminate this Agreement at any time upon giving SUPPLIER 30 days written notice. (c) In the event DISTRIBUTOR fails to fulfill any material obligation under this Agreement, it shall be deemed to be in default. SUPPLIER may give DISTRIBUTOR written notice of the default by certified mail. The notice shall state specifically the intention of SUPPLIER to terminate this Agreement in the event of continued default. If, after 30 days from the date of such notice, 6 7 DISTRIBUTOR has failed or refused to remedy a default capable of being remedied, this Agreement may be terminated immediately by written notice given to DISTRIBUTOR by certified mail not later than 60 days after the date of the original notice of default. Such termination shall be without prejudice to any other rights or claims SUPPLIER may have against DISTRIBUTOR and DISTRIBUTOR may have against SUPPLIER. "Material obligation" as used herein shall include, but not be limited to, the following: (i) The failure of DISTRIBUTOR to use its best efforts to meet the performance standards established in accordance with the provisions of paragraph 6 of this Agreement. (ii) The failure of DISTRIBUTOR to pay any invoice within 10 days of written notice that the invoice is past due. (iii) The intentional sale or distribution by DISTRIBUTOR of any out-of-date PRODUCT without the written authorization of SUPPLIER. (iv) The failure of DISTRIBUTOR to obtain and maintain licenses and permits required for the sale, distribution or transportation of alcoholic beverages. (d) Either party shall have the right, at its option, to terminate this Distribution Agreement by giving notice to the other party at least five business days before the termination is to be effective, if: i. The other party shall be adjudicated or become a bankrupt or an insolvent as that term is defined in 11 USC Section 101(32); ii. The other party shall file a voluntary petition under any bankruptcy, reorganization or insolvency law; iii. The other party shall apply for or consent to appointment of a trustee or receiver to take possession of all or substantially all its assets; iv. The other party shall consent to, or shall file an answer admitting the jurisdiction of the court and the material allegations of, an involuntary petition filed under any bankruptcy, reorganization, or insolvency law; v. Any proceedings of bankruptcy, reorganization, or insolvency shall be commenced against the other party and not be dismissed within 30 calendar days after commencement; vi. The other party shall make any assignment for the benefit of creditors, other arrangement or composition under any laws for the benefit of insolvents; vii. Any order shall be entered under any bankruptcy, reorganization, or insolvency law of any jurisdiction, and shall not be dismissed or stayed within 30 calendar days after 7 8 its entry (a) approving an involuntary petition seeking an arrangement with the creditors of the other party, (b) approving an involuntary petition seeking reorganization, or (c) appointing any receiver of trustee of all or a substantial part of the property of the other party; viii. A trustee or receiver shall be appointed to take possession of all or substantially all assets of the other party and shall not be dismissed within 30 calendar days after appointment; or ix. Any writ of attachment, garnishment, or execution shall be levied against all or substantially all assets of the other party, or all or substantially all assets of the other party shall be subject to any attachment, garnishment, execution, or other judicial seizure, and shall not be removed, released, or bonded within 30 calendar days] after the date of the attachment, garnishment, execution or other judicial seizure. 16. RIGHTS FOLLOWING TERMINATION. In the event this Agreement is terminated for any reason, all future and continuing rights and obligations under it shall terminate, except such rights and obligations hereinafter set forth: (a) DISTRIBUTOR shall remain obligated to pay all sums due at the time of termination of this Agreement for PRODUCTS sold and delivered by DISTRIBUTOR to its accounts. As to PRODUCTS that are in the inventory of DISTRIBUTOR at the time of termination, SUPPLIER may, at its option, repurchase such inventory. DISTRIBUTOR shall remain obligated to pay all sums due at the time of termination for PRODUCTS in inventory that SUPPLIER does not require DISTRIBUTOR to return. SUPPLIER shall be responsible for the transportation costs for any inventory repurchased or returned. (b) DISTRIBUTOR shall immediately cease representing itself or holding itself out as a distributor of the PRODUCTS unless SUPPLIER elects not to repurchase the return of inventory of PRODUCTS maintained by DISTRIBUTOR as of the date of termination. DISTRIBUTOR may, from the effective date of termination of the Agreement, continue to market, sell and distribute PRODUCTS in its inventory that SUPPLIER does not repurchase DISTRIBUTOR to return. (c) DISTRIBUTOR shall immediately cease using the TRADENAMES except to the extent that DISTRIBUTOR is permitted under (b) above to continue marketing, selling and distributing PRODUCTS in inventory. (d) DISTRIBUTOR shall surrender and deliver to SUPPLIER, or as directed by SUPPLIER, all signs, advertising displays, point of sale materials, and other promotional materials provided to DISTRIBUTOR by SUPPLIER relating to the PRODUCTS or bearing the TRADENAMES only if SUPPLIER elects to repurchase all of 8 9 DISTRIBUTOR'S inventory. (e) DISTRIBUTOR shall take all necessary and reasonable steps to eliminate references in any printed materials, advertisements, telephone directory listings and signs which identify it as a distributor of the PRODUCTS. 17. COMPETITIVE PRODUCTS. Not applicable 18. RELATIONSHIP OF THE PARTIES. DISTRIBUTOR and SUPPLIER are independent contractors under this Purchase Agreement and no agency, joint venture or partnership is created between the parties. Neither party has the right to incur any liabilities on behalf of or binding upon the other party. 19. INDEMNIFICATION. a. DISTRIBUTOR shall indemnify, defend and hold harmless SUPPLIER, and its officers, directors, shareholders, employees, agents, representatives, subsidiaries and affiliates, against all liability, demands, claims, costs, losses, damages, recoveries, settlements, and expenses, (including interest, penalties, attorney fees, accounting fees, expert witness fees, costs, and other related expenses) directly or indirectly arising from or related to the acts or omissions of DISTRIBUTOR, its agents, employees, subcontractors or other persons or entities acting under the direction or control of DISTRIBUTOR, its agents, employees, or subcontractors. b. SUPPLIER shall indemnify, defend and hold harmless DISTRIBUTOR and its officers, directors, shareholders, employees, agents and representatives, against all liability, demands, claims, costs, losses, damages, recoveries, settlements, and expenses, (including interest, penalties, attorney fees, accounting fees, expert witness fees, costs, and other related expenses) directly or indirectly arising from or related to the acts or omissions of SUPPLIER, its agents, employees, subcontractors or other persons or entities acting under the direction or control of SUPPLIER, its agents, employees, or subcontractors. 20. INSURANCE. a. DISTRIBUTOR shall obtain and maintain at all times during the term of this Agreement a comprehensive general liability insurance policy and an automobile liability policy providing for coverage of at least $1,000,000 for each occurrence. DISTRIBUTOR shall furnish to SUPPLIER a certificate evidencing the fact that the insurance described in this paragraph has been obtained and is in full force and effect, that the premiums thereon have been paid and that such insurance cannot be canceled without prior written notice to DISTRIBUTOR. 9 10 b. SUPPLIER shall obtain and maintain at all times during the term of this Agreement a product liability insurance policy providing for coverage of at least $1,000,000 for each occurrence. DISTRIBUTOR shall be included as an additional insured under such policy of insurance. SUPPLIER shall furnish to DISTRIBUTOR a certificate evidencing the fact that the insurance described in this paragraph has been obtained and is in full force and effect, that DISTRIBUTOR has been named as an additional insured, that the premiums thereon have been paid and that such insurance cannot be canceled without prior written notice to DISTRIBUTOR. 21. FORCE MAJEURE. If SUPPLIER fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental action, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes, except financial, beyond the reasonable control of SUPPLIER, then SUPPLIER's performance shall be excused for a period equal to the period of such cause for failure to perform as long as SUPPLIER gives DISTRIBUTOR notice, in writing by certified mail, within three (3) business days after the event causing the failure. 22. ARBITRATION. Any controversy, claim or dispute arising out of this Agreement or the breach of any provision herein shall be settled in arbitration in accordance with the rules of the American Arbitration Association. Notwithstanding the foregoing, the parties hereby agree that in the event of arbitration, each party may conduct discovery and the provisions of Code of Civil Procedure, Section 1283.05 shall apply. The prevailing party to such arbitration shall be entitled, in addition to such other relief as may be granted, to reasonable attorney's fees. The award rendered by the arbitrator shall be final and binding. The arbitration proceedings shall be conducted in the County of Orange, State of California. 23. NOTICES. All notices and other communications under this Agreement shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid. Any such notice or other communication shall be deemed given: (a) upon actual delivery if presented personally or sent by prepaid telegram or telex or by facsimile transmission and (b) three (3) business days following deposit it in the United States mail, if sent by certified, registered or express mail, postage prepaid, in each case to the following address: If to SUPPLIER: 9800 S. Sepulveda Blvd, # 720 Los Angeles, CA 90045 10 11 If to DISTRIBUTOR: 17101 Valley View Av. Cerritos CA 90703. Attn: Wayne Chaplin 1600 NW 163rd Street Miami, FL 33169 Notice of any change in any such address shall also be given in the manner set forth above. Whenever the giving of notice is required, the giving of such notice may be waived by the party entitled to receive such notice. 24. AMENDMENTS AND WAIVERS. Except as specifically provided for herein, this Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof. Nor shall any waiver on the part of any party hereto of any such right, power or privilege, nor any single or partial exercise of any such right, power of privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege. 25. SEVERABILITY; HEADINGS; GOVERNING LAW; COMPLIANCE In the event one or more of the provisions contained herein are found to be illegal or unenforceable in any respect, the legality and enforceability of the remaining provisions of this Agreement, shall not be affected. The headings of this Agreement are provided for reference only. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Both parties mutually agree to do all things reasonably necessary in order to comply with all laws and regulations. IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their duly authorized and empowered offices or representatives as of the date first above written. BEVERAGE WORKS, INC. ("SUPPLIER") By: Frederik G.M. Rodenhuis DATE: July 30, 1996 Title: President & CEO SOUTHERN WINE & SPIRITS OF AMERICA, INC. ("DISTRIBUTOR") By: ___________________________ DATE: _________________________ Title: ___________________________ 11 12 12 13 EXHIBIT "A" PRODUCTS AND TERRITORY 1. SUPPLIER PRODUCTS. HUSSONG'S Cerveza Extra HUSSONG'S Cerveza Negra 2. TERRITORY DEFINITION. All of California 13