-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WB8WD+ljvuTH45aSeWPQnG8NnK/V4r1sYZBZGfW9wi8w8q+fjK9JdUs+K1fAXh0A F2yg/QGikhgRLSxDryVwWQ== 0000804055-05-000143.txt : 20050725 0000804055-05-000143.hdr.sgml : 20050725 20050725163945 ACCESSION NUMBER: 0000804055-05-000143 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 10 FILED AS OF DATE: 20050725 DATE AS OF CHANGE: 20050725 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BRAVO FOODS INTERNATIONAL CORP CENTRAL INDEX KEY: 0001061029 STANDARD INDUSTRIAL CLASSIFICATION: DAIRY PRODUCTS [2020] IRS NUMBER: 621681831 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-57365 FILM NUMBER: 05971753 BUSINESS ADDRESS: STREET 1: 11300 US HIGHWAY 1 SUITE 202 CITY: NORTH PALM BEACH STATE: FL ZIP: 33408 BUSINESS PHONE: 5616251411 MAIL ADDRESS: STREET 1: 11300 US HIGHWAY 1 SUITE 202 CITY: NORTH PALM BEACH STATE: FL ZIP: 33408 FORMER COMPANY: FORMER CONFORMED NAME: CHINA PREMIUM FOOD CORP DATE OF NAME CHANGE: 20000303 FORMER COMPANY: FORMER CONFORMED NAME: CHINA PEREGRINE FOOD CORP DATE OF NAME CHANGE: 19981104 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: COCA COLA ENTERPRISES INC CENTRAL INDEX KEY: 0000804055 STANDARD INDUSTRIAL CLASSIFICATION: BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086] IRS NUMBER: 580503352 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 2500 WINDY RIDGE PKWY CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 7709893000 MAIL ADDRESS: STREET 1: 2500 WINDY RIDGE PKWY CITY: ATLANTA STATE: GA ZIP: 30339 SC 13D 1 bravo13d.htm BRAVO Schedule 13D

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D
(Rule 13d-101)

 

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a)

(Amendment No.            )*

 

 

 

BRAVO! FOODS INTERNATIONAL CORP.

(Name of Issuer)

 

 

COMMON STOCK, $0.001 PAR VALUE PER SHARE

(Title of Class of Securities)

 

 

105666101

(CUSIP Number)

 

 

John J. Culhane

COCA-COLA ENTERPRISES INC.

2500 Windy Ridge Parkway
Atlanta, GA 30339

(770) 989-3000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

 

July 13, 2005

(Date of Event Which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box 

 

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


SCHEDULE 13D

 

 

  1  

NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)

 

Coca-Cola Enterprises Inc.                                                                                     58-0503352
 

 

 

 

 

 

 

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a)  

(b)  

   
  3  

SEC USE ONLY

 

   
  4  

SOURCE OF FUNDS (See Instructions)

 

WC 

 

   
  5  

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  
  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

   

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

  7    SOLE VOTING POWER

 

      68,990,244


  8    SHARED VOTING POWER

 

     0


  9    SOLE DISPOSITIVE POWER

 

       68,990,244


10    SHARED DISPOSITIVE POWER

 

       0

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

 68,990,244 shares

   
12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions)

 



 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

52.23%

   
14  

TYPE OF REPORTING PERSON (See Instructions)

 

CO

   

 

Preliminary Statement

This Schedule relates to 68,990,244 shares of the common stock, $0.001 per share (the "Common Stock") of Bravo! Foods International Corp. ("Bravo"). Coca-Cola Enterprises Inc. ("CCE") may acquire the Common Stock upon the exercise of separate options (the "Options") granted by the shareholders of Bravo identified under Item 6 of this Schedule to CCE on July 13, 2005, pursuant to Stock Option Agreements (the "Option Agreements") attached to this Schedule as Exhibit 1(a)-(i).

Item 1. Security and Issuer

Common Stock, $0.001 par value

Bravo! Foods International Corp
11300 US Highway 1, Suite 202
North Palm Beach, Florida 33408.

Item 2. Identity and Background

The person filing this statement is CCE, a corporation organized under Delaware law. The principal business of CCE is marketing, selling, manufacturing and distributing nonalcoholic beverages. The address of its principal business and its principal place of business is 2500 Windy Ridge Parkway, Atlanta, Georgia 30339.

The name, residence or business address, principal occupation or employment of each of the executive officers and directors of CCE are set forth on Schedule A hereto.

Neither CCE nor any of the individuals identified on Schedule A hereto has, during the last five years, been convicted in a criminal proceeding or been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding, become subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities law or finding any violation with respect to such laws.

Item 3. Source and Amount of Funds and Other Consideration

The source of funds that were used to acquire the Options, and the funds that would be used to exercise the Options, has been, or will be, as the case may be, the general corporate funds of CCE. The cost of the Options purchased is $17,247.56; assuming all are exercised, the cost of exercise would be $24,836,487.84.

Item 4. Purpose of Transaction

On June 13, 2005, CCE purchased the Options to buy approximately 68,990,244 shares of common stock, or common stock equivalents in the form of convertible securities and warrants, from nine shareholders of Bravo. This is intended to be a first step in acquiring slightly more than 50% of Bravo's common equity on a fully diluted basis.

As part of this transaction, CCE is negotiating with the management of Bravo for master distribution rights for Bravo's products, and for the purchase of common stock directly from Bravo. The shares purchased directly from Bravo, when combined with the shares subject to the Options, would constitute a majority stake, as described above.

The exercise of the Options is dependent on the satisfactory completion of due diligence and reaching agreement on the terms of the distribution and share purchase agreements. It is anticipated that CCE's total investment would be approximately $38 million upon exercise of the Options and the purchase of common shares from Bravo.

While CCE's rights under the Option Agreements may be assigned to The Coca-Cola Company, an affiliate of CCE or of The Coca-Cola Company, or to a joint venture formed by any of them, CCE has no current intention to effect any such assignment.

CCE anticipates that the potential acquisition of all of the remaining equity securities of Bravo would occur pursuant to a definitive acquisition agreement, currently under negotiation, under which CCE or its assignee would be given the right, after December 31, 2006, to cause a merger to occur under which the shares of Bravo owned by shareholders other than CCE or its assignee would be converted into the right to receive cash.

The distribution agreement, the definitive acquisition agreement and the merger agreement are currently under negotiation, and there is no assurance that agreement will be reached with respect to any of these documents.

Item 5. Interest in Securities of the Issuer

As a result of the grant of the Options on June 13, 2005, CCE beneficially owns 68,990,244 shares of Common Stock computed in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended, which represents approximately 52.23% of the outstanding Common Stock. CCE does not beneficially own any shares other than those subject to the Options.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to the Securities of the Issuer

The Option Agreements with the Bravo shareholders listed below give CCE the option to purchase up to 68,990,244 shares of Common Stock at an exercise price per share of $0.36. The Options will terminate upon the earliest to occur of: (1) the written mutual agreement of the parties to an Option Agreement to terminate an Option, (2) August 31, 2005, or (3) the delivery of written notice of termination of negotiations with respect to a distribution agreement for Bravo's products.

The Option Agreements, by their terms, may be exercised only if CCE, The Coca-Cola Company, or an affiliate of either of them has entered into a definitive distribution agreement and share purchase agreement, described above under Item 4.  It is the current intention that the Options would be exercised, if at all, by CCE or one of its affiliates.  The Options, if exercised, must be exercised in their entirety and all at once.

The table below lists the Bravo shareholders with whom CCE has entered into Option Agreements and the number of shares of Common Stock subject to options granted by each such shareholder and whether held in the form of Common Stock, convertible notes, convertible preferred stock or warrants.

 

Name

 

Number of Shares of Common Stock
Subject To Option

 


Common

Stock


Convertible

Notes

Convertible
Preferred
Stock



Warrants

 

 

 

 

Alpha Capital AG

 

6,000,000

 

2,000,000

AMRO International, S.A.

 

 

 

1,519,509

Ellis International

 

1,200,000

 

 

Longview Equity Fund, L.P.

61,186

 

 

6,000,000

Longview Fund, L.P.

155,435

 

 

4,000,000

Longview International Equity Fund, L.P.

166,132

 

 

2,000,000

Mid-Am Capital, LLC

 

8,182,173

34,505,809

 

Osher Capital Inc.

 

800,000

 

 

Whalehaven Capital Fund Limited

 

2,400,000

 

 

Item 7.             Materials to be Filed as Exhibits

Exhibit No.       Description of Exhibit

      99                Stock Option Agreements 

            (a)         Stock Option Agreement by and among CCE, Alpha Capital AG and Bravo

            (b)         Stock Option Agreement by and among CCE, AMRO International, S.A. and Bravo

            (c)         Stock Option Agreement by and among CCE, Ellis International and Bravo

            (d)         Stock Option Agreement by and among CCE, Longview Equity Fund, L.P. and Bravo

           (e)         Stock Option Agreement by and among CCE, Longview Fund, L.P. and Bravo

            (f)          Stock Option Agreement by and among CCE, Longview International Equity Fund, L.P. and Bravo

            (g)        Stock Option Agreement by and among CCE, Mid-Am Capital, LLC and Bravo

            (h)         Stock Option Agreement by and among CCE, Osher Capital Inc. and Bravo

            (i)          Stock Option Agreement by and among CCE, Whalehaven Capital Fund Limited and Bravo

 


Schedule A

Coca-Cola Enterprises Inc.

Executive Officers and Directors

Name and Address*

Position

Lowry F. Kline
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Chairman of the Board and Director
 

John R. Alm
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

President and Chief Executive Officer and
        Director
 

G. David Van Houten, Jr.
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Executive Vice President
 

John J. Culhane
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Executive Vice President
       General Counsel
 

Shaun B. Higgins
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Executive Vice President and
       President, European Group

Vicki R. Palmer
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Executive Vice President,
       Financial Services and Administration

William W. Douglas, III
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Senior Vice President and
       Chief Financial Officer

Charles D. Lischer
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Vice President, Controller and Chief Accounting Officer

Terrance M. Marks
Coca-Cola Enterprises Inc.
2500 Windy Ridge Parkway
Atlanta, GA 30339

Senior Vice President & President, North American Group
 

Fernando Aguirre
Chiquita Brands International Inc.
Chiquita Center
250 East Fifth Street, 29th Floor
Cincinnati, OH 45202

Director

James E. Copeland, Jr.
Deloitte & Touche, LLP
1633 Broadway
New York, NY 10019

Director

Calvin Darden
8155 Sentinea Chase Drive
Roswell, GA 30076

Director

J. Alexander M. Douglas, Jr.
The Coca-Cola Company
One Coca-Cola Plaza
Atlanta, GA 30313

Director

J. Trevor Eyton
The Senate of Canada
Room 561-S, Centre Block
Parliament Buildings
Ottawa, Ontario K1A 0A4

Director
 

Gary P. Fayard
The Coca-Cola Company
One Coca-Cola Plaza
Atlanta, GA 30313

Director
 

Irial Finan
The Coca-Cola Company
One Coca-Cola Plaza
Atlanta, GA 30313

Director
 

Marvin J. Herb
HERBCO L.L.C.
6000 Garlands Lane
Suite 120
Barrington, IL 60010

Director
 

L. Phillip Humann
SunTrust Banks, Inc.
SunTrust Plaza, 30th Floor
303 Peachtree Street
Atlanta, GA 30308

Director
 

Summerfield K. Johnston, III
144 Everglades Avenue
Palm Beach, FL 33480

Director
 

Paula R. Reynolds
AGL Resources Inc.
Ten Peachtree Place NE
19th Floor
Atlanta, GA 30309

Director
 

*     All of the executive officers and directors listed above are citizens of the United States, except for J. Trevor Eyton, who is a citizen of Canada.

 


 

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

Date: June 25, 2005

COCA-COLA ENTERPRISES INC.

 

By:       /S/ J. J. CULHANE              
John J. Culhane
Executive Vice President and General Counsel

EX-99 2 ex1a.htm EXHIBIT 1(A) ALPHA CAPITAL

Exhibit 99(a)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), ALPHA CAPITAL AKTIENGESELLSCHAFT, a Lichtenstein corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

        Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

  COCA-COLA ENTERPRISES INC.

 

 By: /s/ John J. Culhane
 Name: John J. Culhane
 Title: Exec. VP and General Counsel
 Date: July 13, 2005
   

SHAREHOLDER:

ALPHA CAPITAL AG
Name of Shareholder
 

By: /s/ Konrad Ackerman   
Title: Director
Date: 07/01/05
Address: Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax:  011-42-32323196

 

  Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
By: /s/ Roy G. Warren  
  Name: Roy G. Warren
Title: Chief Executive Officer
Date:
Address:



SCHEDULE 1

OPTION SECURITIES

SHAREHOLDER

EQUITY
EQUIVALENT
DESCRIPTION

  OUTSTANDING
AMOUNT
 COMMON
STOCK
EQUIVALENTS
Alpha Capital Aktiengesellschaft
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax:  011-42-32323196
Convertible Note 
(April 2005)
 
 $300,000.00  1,500,000
Alpha Capital Aktiengesellschaft
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax:  011-42-32323196
Convertible Note 
(January 2005)
 $250,000.00 2,000,000
Alpha Capital Aktiengesellschaft
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
F ax:  011-42-32323196
Convertible Note
(January 2004) 
 $250,000.00 2,500,000
Alpha Capital Aktiengesellschaft
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax:  011-42-32323196
Warrant
(January 2005)
 2,000,000 2,000,000
EX-99 3 ex1b.htm EX 1(B) AMRO INTERNATIONAL

EXHIBIT 99(b)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), AMRO INTERNATIONAL, S.A., a Panama corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database (Shareholder does not have actual knowledge that such instruments are available on the EDGAR database); (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005
 
    SHAREHOLDER:

AMRO INTERNATIONAL, S.A.
Name of Shareholder
 
  By: /s/ Joseph A. Smith                       
  Name: Joseph A. Smith
  Title: Authorized Signatory
  Date: July 8, 2005
     
  Address: c/o Morgan & Morgan
Swiss Tower, 16th Floor
53rd E Street
Urbanizacion Markells
Panama City, Panama
Attn: Pamela Hall, Secretary
  Copy to: Joseph A. Smith
420 Lexington Avenue, Suite 2620
New York, NY 10170
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                  
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

WARRANT HOLDER WARRANT ISSUE DATE COMMON SHARES PURCHASABLE UPON EXERCISE
AMRO INTERNATIONAL, S.A.                 2/1/00                  455,000
AMRO INTERNATIONAL, S.A.             10/13/00                    38,259
AMRO INTERNATIONAL, S.A.                3/9/99                    17,500
AMRO INTERNATIONAL, S.A.              4/23/99                      8,750
AMRO INTERNATIONAL, S.A.                4/7/00               1,000,000
EX-99 4 ex1c.htm EX 1(C) ELLIS INTERNATIONAL

Exhibit 99(c)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), ELLIS INTERNATIONAL LTD., a Panama corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

 

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005

 

    SHAREHOLDER:

ELLIS INTERNATIONAL LTD.
Name of Shareholder
 
  By: /S/ WILHELM UNGAR   
  Title: Officer
  Date: 7/1/2005
     
  Address: 53rd Street Urbanizacion Obarrio
Swiss Tower, 16th Floor, Panama
Republic of Panama
Fax:  (516)887-8990
 
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                               
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

SHAREHOLDER  EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
Ellis International LTD.
53rd Street Urbanizacion Obarrio
Swiss Tower, 16th Floor
Panama
Republic of Panama
Fax:  (516)887-8990
 
Convertible Note
(May 2005)
$150,000.00 1,200,000
       
EX-99 5 ex1d.htm EX 1(D) LONGVIEW EQUITY FUND

EXHIBIT 99(d)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), LONGVIEW EQUITY FUND, LP, a Delaware corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

 

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005

 

    SHAREHOLDER:

LONGVIEW EQUITY FUND, LP
Name of Shareholder
 
By: /s/ Wayne H. Coleson                   
Name: Wayne H. Coleson
Title: CEO - Investment Manager
Date: 7/1/05
  Address: 600 Montgomery Street, 44th Floor
San Francisco, CA  94111
 
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                          
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

 

SHAREHOLDER EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Warrants  $600,000.00 6,000,000
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Common Stock   61,186 61,186
EX-99 6 ex1e.htm EX 1(E) LONGVIEW FUND

Exhibit 99(e)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), LONGVIEW FUND, LP, a California limited partnership (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

    (a)        The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(a)     (b) In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

 

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005

 

    SHAREHOLDER:

LONGVIEW FUND, LP
Name of Shareholder
 
  By: /s/ S. Michael Rudolph                           
  Name: S. Michael Rudolp
  Title: CFO - General Partner
  Date:  
     
  Address: 600 Montgomery Street, 44th Floor
San Francisco, CA  94111
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                                 
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

 

SHAREHOLDER EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Warrants  4,000,000 4,000,000
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Common Stock   155,435 155,435
EX-99 7 ex1f.htm EX 1(F) LONGVIEW INTERNATIONAL EQUITY

Exhibit 99(f)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), LONGVIEW INTERNATIONAL EQUITY FUND, LP, a Delaware limited partnership (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005

 

    SHAREHOLDER:

LONGVIEW INTERNATIONAL EQUITY
FUND, LP
Name of Shareholder
 
  By: /s/ Wayne H. Coleson                            
  Name: Wayne H. Coleson
  Title: CEO - Investment Managerner
  Date: 7/1/05
     
  Address: 600 Montgomery Street, 44th Floor
San Francisco, CA  94111
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                                     
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

 

SHAREHOLDER EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Warrants  $2,000,000 2,000,000
Longview Equity Fund, LP
600 Montgomery Street
44th Floor
San Francisco, CA  94111
Fax:  (415)981-5300
Common Stock   166,132 166,132
EX-99 8 ex1g.htm EX 1(G) MID-AM CAPITAL

EXHIBIT 99(g)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), MID-AM CAPITAL, LLC, a Delaware limited liability company (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005
   
SHAREHOLDER:

MID-AM CAPITAL, LLC
Name of Shareholder

DAIRY FARMERS OF AMERICA, INC., Its Manager
  By: /s/ Gerald Bos                                    
  Name: Gerald Bos
  Title: Chief Financial Officer
  Date:  
  Address: 10220 North Ambassador Drive
Kansas City, Missouri 64153

 

    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                               
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


                                             SCHEDULE 1

                                         OPTION SECURITIES


                                                            Par Value/      Common Stock
    Equity Equivalent Description                          Outstanding       Equivalents
===================================================     ===============    ===============
                                                             Balance


Series J 89% Cumulative Convertible Preferred Stock     $ 2,000,000           20,000,000
Series K 8% Cumulative Convertible Preferred Stock          950,000            9,500,000
10% Convertible Note                                        500,000            3,333,333
8% Convertible Note                                         200,000            4,000.000
Cumulative dividends Series J Preferred Stock               398,685            3,986,850
Cumulative Dividends s Series K Preferred                   101,896            1,018,959
Accrued Interest Convertible Notes                           75,775              848,840
                                                                            =================
         Total                                                                42,687,982


EX-99 9 ex1h.htm EX 1H OSHER CAPITAL

Exhibit 99(h)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), OSHER CAPITAL, INC., a New York corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005

 

    SHAREHOLDER:

OSHER CAPITAL, INC.
Name of Shareholder
 
  By: /S/ Y. KLUEGER                                        
  Title: President
  Date: 7/1/05
     
  Address: 5 Sansberry Lane
Spring Valley, NY  10977
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren                                               
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

SHAREHOLDER  EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
OSHER CAPITAL INC.
5 Sansberry Lane
Spring Valley, NY  10977
Fax: _________________
Convertible Note
(May 2005)
$100,000.00 800,000
EX-99 10 ex1i.htm EX 1(I) WHALEHAVEN CAPITAL FUND

EXHIBIT 99(i)

STOCK OPTION AGREEMENT

        THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and among COCA-COLA ENTERPRISES INC., a Delaware corporation (“Grantee”), WHALEHAVEN CAPITAL FUND LIMITED, a Bermuda corporation (the “Shareholder”), and BRAVO! FOODS INTERNATIONAL CORP., a Delaware corporation (the “Company”). The effective date of this Agreement (the “Effective Date”) shall be the latest date indicated on the signature page hereto.

W I T N E S S E T H:

        WHEREAS, the Shareholder owns some combination of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and convertible notes, preferred stock and warrants (the “Equity Equivalents”) which, upon conversion or exercise, as the case may be, entitle the Stockholder thereof to receive shares of Common Stock; and

        WHEREAS, the Company and Grantee have been in discussions regarding the possibility of entering into a distribution agreement relating to the Company’s products and concurrently entering into a stock purchase agreement for the purchase by Grantee of shares of Common Stock directly from the Company (the “Acquisition Agreement”), which, together with this Agreement and Other Agreements (as hereinafter defined), will enable the Grantee to acquire a majority of the outstanding Common Stock of the Company on a fully diluted basis (the “Discussions”); and

        WHEREAS, in furtherance of the Discussions and as a condition precedent to the Grantee’s participation in the Discussions, and for the additional consideration set forth herein, the Shareholder desires to grant to Grantee an option to purchase the Option Securities (as hereinafter defined) according to the terms and subject to the conditions set forth in this Agreement and the Company is willing to enter into this Agreement; and

        WHEREAS, each of the Shareholder and the Grantee further acknowledges that the Shareholder and the other parties who are entering into agreements with the Grantee which are identical to this Agreement (the “Other Agreements”) have acted independently of one another, negotiated separately with the Grantee and have no understanding or agreement to act in concert with one another with respect to this Agreement and the transactions contemplated hereby.

        NOW, THEREFORE, in consideration of the premises herein and the representations, warranties, covenants and agreements contained herein, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.     Grant of Option. The Shareholder hereby grants to Grantee an unconditional, irrevocable option (the “Option”) to purchase, subject to the terms and conditions hereof, the shares of Common Stock and each Equity Equivalent which entitles the Shareholder to acquire shares of Common Stock upon the conversion or exercise of such Equity Equivalent, as applicable, a description of which (including the outstanding balances on any convertible notes) is set forth on Schedule 1 attached hereto (sometimes collectively, the “Option Securities”), at a price equal to $0.36 for each share of Common Stock and for each share of Common Stock underlying the Equity Equivalent (the “Option Price”). The Option shall terminate upon the earliest to occur of: (i) the written mutual agreement of Grantee and the Shareholder to terminate the Option; (ii) August 31, 2005; or (iii) the delivery of written notice from the Shareholder to the Grantee or from Grantee to the Shareholder (x) which, in the case of the Shareholder, indicates that the Shareholder has received written notice from the Company that the Discussions have been terminated or (y) which, in the case of the Grantee, indicates that the Grantee or the Company, as the case may be, has notified the other in writing that the Grantee or the Company has decided to terminate its participation in the Discussions; or (iv) as provided in the last sentence of Section 2 hereof. The period from the Effective Date through the first date to occur of clauses (i), (ii), (iii) or (iv) of the immediately preceding sentence shall be referred to herein as the Option Period.

2.     Option Grant Payment. In consideration for granting the Option to the Grantee pursuant to this Agreement, the Grantee shall pay to the Shareholder $0.00025 for each share of Common Stock and each share of Common Stock underlying an Equity Security which is included in the Option Securities (the “Option Grant Payment”). The Grantee shall pay the Option Grant Payment to the Shareholder by wire transfer of immediately available funds to an account designated by the Shareholder or by delivery of a certified check to the Shareholder’s address listed on the signature page to this Agreement. Payment of the Option Grant Payment shall be made within three (3) business days following the date on which this Agreement and all of the Other Agreements have been fully executed and delivered. The Option may not be exercised until after the Shareholder has received payment of the Option Grant Payment. If the Option Grant Payment is not made to the Shareholder within ten (10) business days from the Effective Date, the Shareholder, upon written notice to the Grantee, may terminate this Agreement.

3.     Exercise.

(a)     The Grantee may exercise the Option for all the Option Securities if, but only if, Grantee, The Coca-Cola Company (“TCCC”) or an affiliate of either of them shall have entered into a definitive distribution agreement with the Company and the Acquisition Agreement (collectively, the “Definitive Agreements”) during the Option Period. The Option may not be exercised in part, but may only be exercised for all of the Option Securities subject to this Agreement and the Other Agreements.

(b)     In the event Grantee is entitled to and wishes to exercise the Option for all the Option Securities, it shall send to the Shareholder a written notice (the date of which being herein referred to as the “Notice Date”) to the Shareholder specifying a place and date not earlier than three (3) business days nor later than thirty (30) business days from the Notice Date (the “Closing Date”) for the closing (the “Closing”) of the purchase of the Option Securities, and confirming in writing that (i) the Definitive Agreements have been executed and delivered by all applicable parties and (ii) the Grantee will, concurrently with the exercise of the Option, be exercising the options granted pursuant to the Other Agreements and purchasing the securities subject thereto. In order for Grantee to exercise the Option, the Notice Date must occur during the Option Period. Notwithstanding anything set forth herein, if, by virtue of obtaining the securities covered by this Agreement and the Other Agreements and/or the shares of Common Stock covered by the Acquisition Agreement, Grantee is required to make a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), then the Closing Date may be extended to a business day that is the third business day following the expiration or early termination of any waiting periods imposed by HSR. In the event that a filing under HSR is made and the expiration or early termination of any waiting period imposed by HSR has not occurred within 90 days from the date of such filing then the Shareholder may terminate this Agreement.

(c)     At the Closing, the Grantee shall pay to the Shareholder an amount equal to (i) the Option Price multiplied by (ii) the sum of (x) each share of Common Stock included in the Option Securities and (y) each share of Common Stock that can be acquired upon the conversion or exercise of the Equity Equivalents included in the Option Securities set forth on Schedule 1 attached hereto. The Option Price shall be paid to the Shareholder by wire transfer of immediately available funds to an account designated by such Shareholder or by delivery of a certified check to the Shareholder at Closing or, if the Shareholder does not attend the Closing, to the Shareholder’s address listed on the signature page to this Agreement.

(d)     At the Closing, simultaneously with the payment of the Option Price as provided for in subsection (c) of this Section 3, the Shareholder shall deliver or cause to be delivered to Grantee the certificate(s) and the convertible notes for all of the Option Securities together with duly executed stock powers and duly executed assignments and/or instruments of transfer for the Equity Equivalents included in the Option Securities. In addition, at the Closing, simultaneously with the payment of the Option Price, the Shareholder shall pay to the Company $0.10 for each warrant included in the Option Securities. The Grantee shall deliver to the Shareholder a letter agreeing that Grantee shall not offer to sell or otherwise dispose of such shares of Common Stock included in the Option Securities and the other Option Securities in violation of applicable federal and state securities laws or the provisions of this Agreement.

(e)     The Company shall pay all expenses and any and all federal, state and local taxes and other charges that may be payable in connection with the preparation, issue and delivery of certificates for shares of Common Stock in the name of Grantee or its permitted assignee or transferee, including upon the conversion or exercise of any Equity Equivalents included in the Option Securities.

4.     Company Actions. At the Closing, and as a condition to the Grantee’s payment of the Option Price upon the exercise of the Option, the Company shall, at no additional cost to Grantee, effectuate the following: (i) provide such assurance to the Grantee as the Grantee considers appropriate that immediately upon tendering to the Company the convertible notes and preferred stock included in the Option Securities for conversion and the exercise of the warrants included in the Option Securities, as applicable, the Company will deliver to the Grantee the certificates for the shares of Common Stock issuable upon conversion of such convertible notes and preferred stock and the exercise of such warrants, as applicable, and (ii) shall take such other actions as the Grantee may reasonably request to waive, modify or amend the terms of the Option Securities and/or the agreements pursuant to which the Option Securities were issued and any restrictions contained therein to provide to the Grantee the full benefit of the ownership of the shares of Common Stock which are issuable upon the conversion of the convertible notes and preferred stock and exercise of the warrants (including, without limitation, the reduction of the exercise price for any warrants included in the Option Securities to $0.001, which is the par value of the Common Stock). The Company also covenants that, for the period described in the immediately following sentence, it will not prepay or redeem any of the Option Securities. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

5.     Certain Adjustments.

(a)     The number of shares of Common Stock included in the Option Securities and the Option Price for such shares of Common Stock shall be subject to adjustment from time to time as provided in this Section 5(a). In the event of any change in the Common Stock by reason of a stock dividend, stock split, split-up, recapitalization, stock combination, exchange of shares or similar transaction, the type and number of shares of Common Stock included in the Option Securities, and the Option Price therefor, shall be adjusted appropriately, and Grantee shall have the right to receive from the Company, upon exercise of the Option in addition to the shares of Common Stock set forth on Schedule 1, the number and class of shares or other securities or property that Grantee would have received in respect thereof in respect of such shares of Common Stock, as if the Option had been exercised immediately prior to such event, or the record date therefor, as applicable.

(b)     In addition, with respect to those Option Securities other than shares of Common Stock which are subject to Section 5(a) hereof, the Company acknowledges that the Grantee, upon the exercise of the Option with respect to those Option Securities that are Equity Equivalents, shall be entitled to the anti-dilution protections that are provided for in the agreements and/or instruments applicable to such Option Securities as are available to the Shareholder at the Closing.

6.     Representations, Warranties and Covenants.

(a)     The Shareholder hereby represents and warrants to Grantee the following: (i) the Shareholder has sole and exclusive record title to and ownership of all of the shares of Common Stock and Equity Equivalents set forth on Schedule 1 attached hereto, true and correct copies of which, together with such other instruments defining the rights of the holder of the securities, are available on the Securities and Exchange Commission’s EDGAR database; (ii) except as may be created by this Agreement, the Common Stock and Equity Equivalents set forth on Schedule 1 are free and clear of any liens, restrictions, claims, charges, options, rights of first refusal or encumbrances, with no defects of title whatsoever, other than such restrictions as may be required pursuant to applicable securities laws or pursuant to the agreements with the Company that the Common Stock or Equity Equivalent were issued; (iii) with respect to any shares of Common Stock and any Equity Equivalents which were acquired by gift or inheritance, all federal and state estate or gift tax returns, as the case may be, required to be filed were duly and timely filed, and all taxes payable with respect thereto were paid; (iv) the Shareholder has the requisite power and authority (corporate or otherwise) to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (v) if applicable, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Shareholder’s board of directors or other similar governing body prior to the date hereof and no other corporate or other proceedings on the part of the Shareholder, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (vi) this Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a legal, valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms.

(b)     The Shareholder hereby covenants that, during the period described in the immediately following sentence, such Shareholder will maintain its existing ownership interest in and to all of the Options Securities set forth on Schedule 1 attached hereto and will not, directly or indirectly, offer for sale, sell, distribute, grant any option, right to purchase, suffer any lien or encumbrance upon, pledge, hypothecate or otherwise dispose of any shares of Common Stock or Equity Equivalents set forth on Schedule 1. The restrictions in the foregoing sentence shall apply from the Effective Date until the latest to occur of (i) the purchase of all of the Option Securities pursuant to the exercise of the Option, if the Notice Date occurs during the Option Period, or (ii) the termination of the Option Period.

(c)     Grantee hereby represents and warrants to the Shareholder as follows: (i) Grantee has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Grantee and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of Grantee and no other corporate proceedings on the part of the Grantee, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for Grantee to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by Grantee and constitutes a legal, valid and binding obligation of the Grantee enforceable against the Grantee in accordance with its terms.

(d)     Grantee hereby represents and warrants that this Option is not being, and any shares of Common Stock or Option Securities acquired by Grantee upon exercise of the Option will not be, acquired with a view to the public distribution thereof and will not be transferred or otherwise disposed of except in a transaction registered or exempt from registration under the Securities Act of 1933, as amended. In making its decision to enter into this Agreement and in connection with the transaction contemplated hereby, the Grantee is not and will not be relying on any representation or warranty by the Shareholder with respect to the Company, its business, operations, assets, liabilities or condition (financial or otherwise).

(e)     The Grantee represents and warrants that the Grantee acknowledges and understands that (i) an acquisition of the Option Securities involves a high degree of risk and is suitable only for persons or entities of adequate financial means who may have no need for liquidity; (ii) the Grantee may not be able to liquidate its investment in the event of an emergency; (iii) the Grantee will be able to sustain a complete loss of such holder’s entire investment; and (iv) the Grantee is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment in the Company, has evaluated such merits and risks, and has determined that this investment is suitable for the Grantee. The Grantee further represents and warrants that it is aware that its ability to transfer, pledge, hypothecate or otherwise dispose of any of the Option Securities may be subject to the restrictions of applicable state and federal securities laws.

(f)     The Company hereby represents and warrants to Grantee as follows: (i) the Company has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (ii) the execution and delivery of this Agreement by the Company and the performance of its obligations hereunder have been duly and validly authorized by the board of directors of the Company and no other corporate proceedings on the part of the Company, or consents from or filings with any person or entity or regulatory body, are necessary to authorize this Agreement or for the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby; and (iii) this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

7.     Public Announcements. The Company and Grantee shall discuss any public announcements or disclosures concerning the transactions contemplated by this Agreement and the Other Agreements with each other party prior to making such announcements or disclosures. No public announcement or disclosure shall be made by any party with regard to the transactions contemplated by this Agreement and the Other Agreements without the consent of Grantee and the Company, which consent shall not be withheld or delayed if such disclosure is required pursuant to applicable securities laws and shall not otherwise be unreasonably withheld or delayed.

8.     Assignment. Neither of the parties hereto may assign any of its rights or obligations under this Agreement or the Option created hereunder to any other person without the express written consent of the other party, except that this Agreement may be assigned to a successor in interest and that Grantee will have the right to transfer, assign or convey all or any of its rights hereunder to any of its affiliates, TCCC or any of its affiliates, or to a joint venture to which any such company is a party who agree in writing to be bound by the terms of this Agreement. Any such transfer, assignment or conveyance of such rights to any affiliate, TCCC or any of its affiliates or a joint venture to which any such company is a party shall only be effective upon the Shareholder’s receipt of written notice of such transfer, assignment or conveyance.

9.     Specific Performance. The parties hereto acknowledge that damages would be an inadequate remedy for a breach of this Agreement by either party hereto and that the obligations of the parties hereto shall be enforceable by either party hereto through injunctive or other equitable relief. In connection therewith, both parties waive the posting of any bond or similar requirement.

10.     Severability. If any term, provision, covenant or restriction contained in this Agreement is held by a court or a federal or state regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants and restrictions contained in this Agreement shall remain in full force and effect, and shall in no way be affected, impaired or invalidated; provided that each party is able to receive substantially all of the rights and substantially all of the benefits it is to have had/or receive, as applicable, under this Agreement.

11.     Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by fax, telecopy, or by registered or certified mail (postage prepaid, return receipt requested) at the address set forth on the signature page hereto (with respect to the Shareholder) or at 2500 Windy Ridge Parkway, Atlanta, Georgia 30339, attention: Mr. E. Liston Bishop III (with respect to Grantee).

12.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely in that State and without regard to any of its conflicts of law principles which could result in the application of the laws of another jurisdiction.

13.     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile signature, which shall constitute a legal and valid signature for all purposes hereof. This Agreement shall not be effective until counterparts executed by the Shareholder, the Grantee and the Company have been delivered to each of them.

14.     Expenses. Except as otherwise expressly provided for herein, each of the parties hereto shall bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including fees and expenses of its accountants and counsel.

15.     Further Assurances. In the event of any exercise of the Option by the Grantee, the Grantee, each of the Shareholder and the Company agrees to execute and deliver all other documents and instruments and take all other action that may be reasonably requested in writing by the other parties hereto in order to consummate the transactions provided for by such exercise and to effectuate the intents of this Agreement. The party making the request will pay for any reasonable out-of-pocket expenses incurred by the other party hereto in connection with complying with the request.

16.     Entire Agreement; Third-Party Rights. Except as otherwise expressly provided herein, this Agreement (together with the Schedule attached hereto) contains the entire understanding and agreement between the parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements, understandings and agreements with respect thereof, written or oral. The terms and conditions of this Agreement shall inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assignees. Nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assignees, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. This Agreement may not be modified or amended and no waiver with respect to this Agreement shall be effective unless evidenced by a written instrument executed by each of the Shareholder and the Grantee and, with respect to those provisions that affect the Company, the Company.

[Signature Page follows.]

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed individually or on its behalf by its officers thereunto duly authorized as of the date indicated.

    COCA-COLA ENTERPRISES INC

 

  By: /s/ John J. Culhane                         
  Name: John J. Culhane
  Title: Exec. VP and General Counsel
  Date: July 13, 2005
    SHAREHOLDER:

WHALEHAVEN CAPITAL FUND LIMITED
Name of Shareholder
 
  By: /s/ Evan Schemaneawer  
  Name: Evan Schemaneawer
  Title: Director
  Date: 7/1/2005
     
  Address: 3rd Floor, 14 Par-LaVille Road
P.O. Box HM 1027
Hamilton HMDX Bermuda
 
    Agreed to and Accepted this 1st day of July, 2005.

BRAVO! FOODS INTERNATIONAL CORP.
 
  By: /s/ Roy G. Warren
  Name: Roy G. Warren
  Title: Chief Executive Officer
  Date:  


SCHEDULE 1

OPTION SECURITIES

SHAREHOLDER  EQUITY EQUIVALENT DESCRIPTION OUTSTANDING AMOUNT COMMON STOCK EQUIVALENT
WHALEHAVEN CAPITAL FUND LIMITED
3rd Floor, 14 Par-Laville Road
Hamilton, Bermuda HM08
Fax:  (441) 292-1373
Convertible Note
(January 2005 and May 2005)
$300,000.00 2,400,000
-----END PRIVACY-ENHANCED MESSAGE-----