javo_8k-ex0401.htm


    
      
        

      

    

    EXHIBIT
4.1

    JAVO
BEVERAGE COMPANY, INC.

    AMENDMENT
NO. 1 TO RIGHTS AGREEMENT

     
 

                   This
Amendment No. 1, effective as of November 17, 2009 (the “Amendment”), amends
the Rights Agreement, dated as of July 1, 2002 (the “Rights Agreement”),
by and between Javo Beverage Company, Inc., a Delaware corporation (the “Company”), and
Corporate Stock Transfer, Inc., a Colorado corporation (the “Rights Agent”).
Capitalized terms used herein but not defined herein shall have their defined
meanings set forth in the Rights Agreement.

    


    WHEREAS,
on November 17 2009, the Company entered into a Securities Purchase Agreement
(the “Securities
Purchase Agreement”) with Coffee Holdings LLC, a Delaware limited
liability company (“CHLLC”);

    


    WHEREAS,
pursuant to the Securities Purchase Agreement, the Company is selling on the
date hereof 15,000,000 shares of Common Stock to CHLLC and may, at a future date
and in its sole discretion, sell up to an aggregate of 13,125,000 additional
shares of Common Stock to CHLLC;

    


    WHEREAS,
pursuant to Section 27 of the Rights Agreement, the Company may, from time to
time, supplement or amend any provision of the Rights Agreement without the
approval of any holders of certificates representing shares of Common Stock in
order to make any changes or provisions in regard to matters or questions
arising under the Rights Agreement that the Company may deem necessary or
desirable; and

    


    WHEREAS,
the Company and Rights Agent are entering into this Amendment to permit CHLLC to
acquire shares of Common Stock from the Company as contemplated under the
Securities Purchase Agreement without thereby making CHLLC an Acquiring Person
or resulting in a Stock Acquisition Date, Distribution Date, Section 11(a)(ii)
Event or Section 13 Event.

    


    NOW,
THEREFORE, in consideration of the promises and the mutual agreements herein set
forth, the parties hereby agree as follows:

    


    1.            
Section 1(a) of the Rights Agreement is hereby deleted in its entirety and the
following is inserted in lieu thereof:

    


    “(a)   “Acquiring Person”
shall mean any Person who or which, together with all Affiliates and Associates
of such Person, shall be the Beneficial Owner of 20% or more of the shares of
Common Stock then outstanding or a Person who would be deemed to beneficially
own twenty percent (20%) or more of the shares of the Common Stock of the
Company upon completion of any offer to acquire beneficial ownership of Common
Stock, but shall not include:

    


    (i)           the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any such
plan,

    


    (ii)           any
Person who shall be the Beneficial Owner of 15% or more of the outstanding
shares of Common Stock as of the consummation of a merger of the Company with La
Jolla Fresh Squeezed Coffee, Inc., a Washington corporation, until such time as
such Person has acquired, or obtained the right to acquire, 30% or more of the
outstanding shares of Common Stock, or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)           any
Person who shall become the Beneficial Owner of 20% or more of the outstanding
shares of Common Stock solely as a result of an acquisition by the Company of
shares of Common Stock until such time thereafter as such Person shall become
the Beneficial Owner (other than by means of a stock dividend or stock split) of
any additional shares of Common Stock;

    


    PROVIDED,
however, that the term “Acquiring Person” shall not include CHLLC, to the extent
CHLLC becomes the Beneficial Owner of 20% or more of the shares of Common Stock
of the Company then outstanding solely due to CHLLC’s Beneficial Ownership of
the CHLLC Shares and the CHLLC Additional Shares, if any.  For the
avoidance of doubt, if CHLLC becomes or is the Beneficial Owner of 20% or more
of the shares of Common Stock of the Company then outstanding (including the
CHLLC Shares and the CHLLC Additional Shares, if any) and at such time CHLLC is
deemed to be the Beneficial Owner of any shares of Common Stock of the Company
other than the CHLLC Shares and the CHLLC Additional Shares, if any, then CHLLC
shall be deemed an Acquiring Person hereunder.

    


    In
addition, notwithstanding the foregoing, no Person shall be deemed to be an
Acquiring Person either (i) if the Board of Directors of the Company determines
at any time that a Person who would otherwise be an “Acquiring Person,” has
become such without intending to become an “Acquiring Person,” and such Person
divests as promptly as practicable (or within such period of time as the Board
of Directors of the Company determines is reasonable) a sufficient number of
shares of Common Stock of the Company so that such Person would no longer be an
“Acquiring Person,” as defined pursuant to the foregoing provisions of this
Section 1(a), or (ii) as the result of an acquisition of shares of Common Stock
by the Company which, by reducing the number of shares outstanding, increases
the proportionate number of shares beneficially owned by such Person to 20% or
more of the Common Stock of the Company then outstanding; PROVIDED, however,
that if a Person shall become the Beneficial Owner of 20% or more of the Common
Stock of the Company then outstanding by reason of share purchases by the
Company and shall, after such share purchases by the Company, become the
Beneficial Owner of any additional Common Stock of the Company, then such Person
shall be deemed to be an Acquiring Person.”

    


    2.     Section 1 of
the Rights Agreement is amended by adding at the end of said section the
following definitions:

    


    “(t)  “CHLLC” shall mean
Coffee Holdings LLC and its Affiliates and Associates.

    


     (u)  “CHLLC Shares” shall
mean (A) the 15,000,000 shares of Common Stock acquired by CHLLC from the
Company pursuant to that certain Securities Purchase Agreement dated as of
November 17, 2009 by and between the Company and CHLLC (“Securities Purchase
Agreement”), and (B) the shares of Common Stock of the Company
Beneficially Owned by CHLLC as of the date hereof.

    


     (v)  “CHLLC Additional
Shares” shall mean any of the up to 13,125,000 shares of Common Stock
that may be acquired by CHLLC from the Company pursuant to the Securities
Purchase Agreement.”

    


    
      
        
        

      

      
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    3.            
Section 3(a) of the Rights Agreement is hereby deleted in its entirety and the
following is inserted in lieu thereof:

    


    “(a)   Until
the earlier of (i) the Close of Business on the twentieth day after the Stock
Acquisition Date (or, if the twentieth day after the Stock Acquisition Date
occurs before the Record Date, the Close of Business on the Record Date), or
(ii) the Close of Business on the twentieth day (or such later date as may be
determined by action of a majority of Directors then in office) after the date
that a tender or exchange offer by any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company, or any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan) is
first published or sent or given within the meaning of Rule 14d-2(a) of the
General Rules and Regulations under the Exchange Act, if upon consummation
thereof, such Person would be the Beneficial Owner of 20% or more of the shares
of Common Stock then outstanding (the earlier of (i) and (ii) being herein
referred to as the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of paragraph (b) of
this Section 3) by the certificates for the Common Stock registered in the names
of the holders of the Common Stock (which certificates for Common Stock shall be
deemed also to be certificates for Rights) and not by separate certificates, and
(y) the Rights will be transferable only in connection with the transfer of the
underlying shares of Common Stock (including a transfer to the Company). As soon
as practicable after the Distribution Date, the Company shall promptly notify in
writing the Rights Agent thereof and provide the Rights Agent with the names and
addresses of all record holders of Common Shares (together with all other
necessary information), and the Rights Agent will send by first-class, insured,
postage prepaid mail, to each record holder of the Common Stock as of the Close
of Business on the Distribution Date, at the address of such holder shown on the
records of the Company, one or more rights certificates, in substantially the
form of Exhibit B hereto (the “Rights
Certificates”), evidencing one Right for each share of Common Stock so
held, subject to adjustment as provided herein. In the event that an adjustment
in the number of Rights per share of Common Stock has been made pursuant to
Section 11(p) hereof, at the time of distribution of the Rights Certificates,
the Company shall make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a) hereof) so that Rights Certificates representing
only whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights. As of and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates and may be transferred by the
transfer of the Rights Certificates as permitted hereby, separately and apart
from any transfer of one or more Common Stock, and the holders of such Rights
Certificates as listed in the records of the Company or any transfer agent or
registrar for the Rights shall be the record holders thereof.”

    


    4.            
Section 23(a) of the Rights Agreement is hereby deleted in its entirety and the
following is inserted in lieu thereof:

    


    “(a)   The
Board of Directors of the Company may, at its option, at any time prior to the
earlier of (i) the Close of Business on the twentieth day following the Stock
Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to
the Record Date, the Close of Business on the twentieth day following the Record
Date), or (ii) the Final Expiration Date, redeem all but not less than all the
then outstanding Rights at a redemption price of $.00001 per Right, as such
amount may be appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption Price”);
PROVIDED, however, if the Board of Directors of the Company authorizes
redemption of the Rights in either of the circumstances set forth in clauses (x)
and (y) below, such authorization shall require the concurrence of a majority of
the Directors that such redemption is, as of such time the redemption is
approved, not void or voidable on account of Section 144 of the Delaware General
Corporation Law or other applicable law: (x) such authorization occurs on or
after the time a Person becomes an Acquiring Person, or (y) such authorization
occurs on or after the date of a change (resulting from a proxy or consent
solicitation) in a majority of the directors in office at the commencement of
such solicitation if any Person who is a participant in such solicitation has
stated (or, if upon the commencement of such solicitation, a majority of the
Board of Directors of the Company has determined in good faith) that such Person
(or any of its Affiliates or Associates) intends to take, or may consider
taking, any action which would result in such Person becoming an Acquiring
Person or which would cause 

     

    
      
        
        

      

      
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    the
occurrence of a Triggering Event unless, concurrent with such solicitation, such
Person (or one or more of its Affiliates or Associates) is making a cash tender
offer pursuant to a Schedule 14D-1 (or any successor form) filed with the
Securities and Exchange Commission for all outstanding shares of Common Stock
not beneficially owned by such Person (or by its Affiliates or Associates);
PROVIDED FURTHER, however, that if, following the occurrence of a Stock
Acquisition Date and following the expiration of the right of redemption
hereunder but prior to any Triggering Event, (i) a Person who is an Acquiring
Person shall have transferred or otherwise disposed of a number of shares of
Common Stock in one transaction or series of transactions, not directly or
indirectly involving the Company, or any of its Subsidiaries, which did not
result in the occurrence of a Triggering Event such that such Person is
thereafter a Beneficial Owner of 20% or less of the outstanding shares of Common
Stock, and (ii) there are no other Persons, immediately following the occurrence
of the event described in clause (i), who are Acquiring Persons, then the right
of redemption herein shall be reinstated and thereafter be subject to the
provisions of this Section 23. Notwithstanding anything contained in this
Agreement to the contrary, a Distribution Date shall not occur and the Rights
shall not be exercisable until such time as the Company's right of redemption
hereunder has expired. The Company may, at its option, pay the Redemption Price
in cash, shares of Common Stock (based on the “current market price,” as defined
in Section 11(d)(i) hereof, of the Common Stock at the time of redemption) or
any other form of consideration deemed appropriate by the Board of
Directors.”

    


    5.            
Except as expressly set forth in this Amendment all other terms of the Rights
Agreement shall remain in full force and effect.

    


    6.           
This Amendment 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
within such State, without regard to conflict-of-law principles.

    


    7.           
This Amendment may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute one and the same instrument.

    


    [The remainder of this page has been
intentionally left blank; signature page follows]

     

     

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed as of the day and year first
above written.

    


    


    JAVO
BEVERAGE COMPANY

    


    


    By: /s/ William E.
Marshall                                                      

    Name:  William
E. Marshall

    Title:   
General Counsel, Sr. Executive Vice
President and Secretary

    


    


    CORPORATE
STOCK TRANSFER, INC., as Rights Agent

    


    


    By: /s/ Carylyn
Bell            

    Name:
Carylyn Bell

    Title:  President

    


    


     

    
 

    
      Signature
Page to Amendment No. 1 to Rights Agreement

    

    
      
        
        

      

      
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