Document:

EXHIBIT 10.9

STOCK
OPTION AGREEMENT

 

This Agreement, dated as
of                               ,
is made by and between PEPSI-COLA PUERTO RICO BOTTLING COMPANY, a corporation
organized and existing under the laws of the State of Delaware (hereinafter the
“Company”), and                               ,
a director of the Company (hereinafter “Optionee”).

 

W I
T N E S S E T H

 

WHEREAS, Optionee is a
member of the Board of Directors of the Company (the “Board of Directors”); and

 

WHEREAS, the Company
desires to afford Optionee the opportunity to subscribe for shares of Class B
common stock of the Company subject in all respects to the terms, definitions
and provisions of the Pepsi-Cola Puerto Rico Bottling Company Non-Qualified
Stock Option Plan (the “Plan”) adopted by the Company, which is incorporated
herein by reference; and

 

WHEREAS, the Board of
Directors, in a duly convened meeting, has determined that it would be in the
best interest of the Company and its shareholders to grant the Option provided
for herein to Optionee in return for the services provided by Optionee in his
capacity as a director of the Company.

 

NOW, THEREFORE, in
consideration of the premises, the mutual covenants contained herein, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1                     CERTAIN
DEFINITIONS.  Whenever the following
terms are used in this Agreement, they shall have the respective meanings
specified below unless the context clearly indicates the contrary.

 

(a)                                  “Class B Shares”
shall mean the shares of Class B common stock of the Company, at any time
issued and outstanding, having a par value of $0.01 and having one (1) vote per
share.

 

(b)                                 “Option” shall mean
the option to subscribe Option Shares (as hereinafter defined) granted under
this Agreement.

 

(c)                                  “Person” shall mean
an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, government (or
any agency or political subdivision thereof) or other entity of any kind.

 

 

(d)                                 “Successor Entity”
shall mean any corporation or other Person or entity which acquires or succeeds
to the business of the Company, whether by way of merger, consolidation, sale
of assets, another business combination, or otherwise.

 

ARTICLE II

GRANT
OF OPTION

 

SECTION 2.1                     GRANT OF
OPTION.  In consideration for
services provided by Optionee in his capacity as a director of the Company, the
Company hereby irrevocably grants to Optionee the option to subscribe for                 
(            )
Class B Shares (the “Option Shares”) in whole or in part, on such terms and
conditions as set forth in this Agreement. 
This Option is intended by the Company and Optionee to be a Nonstatutory
Stock Option, and does not qualify for any special tax benefits to Optionee.

 

SECTION 2.2                     PURCHASE
PRICE.  The purchase price of each
Option Share payable by Optionee upon exercise of the Option shall be                 
Dollars ($            )
per Class B Share (the “Purchase Price”).

 

SECTION 2.3                     PAYMENT OF
PURCHASE PRICE UPON EXERCISE.  The
Purchase Price shall be paid in full in cash or such other consideration as the
Board of Directors may deem appropriate on the date of such exercise.  Upon receipt of payment, the Company shall
deliver to Optionee a certificate for such Option Shares; provided that
Optionee pay any applicable foreign, United States federal (including FICA),
state or local withholding taxes which the Company is obligated to collect with
respect to the transfer of Class B Shares upon such exercise.

 

SECTION 2.4                     ADJUSTMENTS
IN OPTION.

 

(a)                                  In the event of any
change in shares of the Class B Common Stock by reason of any stock dividend,
recapitalization, exchange of shares or split up of the issued and outstanding
shares of Class B Common Stock, the Option Shares outstanding, and the Purchase
Price shall be appropriately adjusted to prevent dilution and maintain the
proportion and cost of the Option Shares. 
In the event of a reorganization, merger or consolidation wherein the
Company is not the surviving entity, the Board of Directors shall allow
Optionee to exercise the rights with respect to the Option Shares outstanding
prior to the consummation of any such merger, reorganization or consolidation
or shall take any other action it may deem appropriate in order to prevent any
loss of value held by Optionee with respect to the Option Shares.

 

ARTICLE III

EXERCISE
OF OPTION

 

SECTION 3.1                     EXERCISE OF
OPTION.  The Option shall terminate
ten (10) years after the date of grant and may be exercised in whole or in part
until exercised in full in accordance with the terms hereof.  The Option must be exercised for full shares
of Class B Common Stock.

 

 

2

 

SECTION 3.2                     PERSONS
ELIGIBLE TO EXERCISE.  The Option
granted hereunder may only be exercised by Optionee, his successors or assigns,
including without limiting the generality of the foregoing, the estate of
Optionee.

 

SECTION 3.3                     PARTIAL
EXERCISE.  Subject to the
restrictions of Section 3.1, the Option may be exercised in whole or in
part at any time.

 

SECTION 3.4                     METHOD OF
EXERCISE.  Subject to the
restrictions of Section 3.1, the Option may be exercised in whole or in
part, to the extent not theretofore exercised, and by the delivery to the
office of the Board of Directors of all of the following:

 

(a)                                  Notice in writing
signed by Optionee or the other Person then entitled to exercise the Option or
such portion, stating that the Option or such portion is hereby exercised;

 

(b)                                 Full payment (in cash,
wire transfer or by check) for the Option Shares with respect to which the
Option or such portion is exercised, at the price calculated in accordance with
Section 2.2 hereof; and

 

(c)                                  In the event the
Option shall be exercised in whole or in part pursuant to Section 3.2
hereof by any Person or Persons other than Optionee, appropriate proof of the
right of such Person or Persons to exercise the Option.

 

SECTION 3.5                     ISSUANCE OF
OPTION SHARES.  The Option Shares, or
any part hereof, shall be Class B Shares which have been authorized but not
previously issued or subscribed.  The
Option Shares, when issued and delivered pursuant to any exercise of the
Option, shall be fully paid and nonassessable, subject to all the terms and
conditions of this Agreement.

 

SECTION 3.6                     RIGHTS OF
OPTIONEE.  Optionee, as such, shall
not be and not have any of the rights or privileges of a shareholder of the
Company in respect of any Option Shares unless and until such Option Shares
shall have been transferred to him in accordance with this Agreement, and no
adjustment will be made for dividends or other rights for which the record date
is prior to the date the Option was exercised.

 

ARTICLE IV

OPTIONEE’S
REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Optionee represents,
warrants, and agrees with the Company as follows:

 

SECTION 4.1                     REVIEW OF
DOCUMENTS.  Optionee has been granted
access to and has reviewed carefully copies of all annual and other periodic or
occasional financial reports of the Company prior to the date of this Agreement
and will review carefully all such reports and statements hereafter as such
shall be issued by the Company from time to time until the Option shall have
been exercised in full or shall have expired. 
Optionee is entering into this Agreement and the transactions
contemplated hereby solely in reliance on Optionee’s own investigation and
review.

 

3

 

SECTION 4.2                     ACQUISITION
OF OPTION SHARES FOR OWN ACCOUNT. 
Optionee will acquire the Option Shares, if at all, pursuant to this
Agreement with Optionee’s own funds, and not with the funds of any other
Person.  The Option Shares will be
acquired, if at all, for Optionee’s own account, not as a nominee or agent and
not for the account of any other Person. 
No other Person will have any interest, beneficial or otherwise, in any
of the Option Shares, unless upon the assignment of any Options by Optionee to
his successors, heirs or legatees as herein set forth.  Optionee is not obligated to transfer any of
the Option Shares or any interest therein to any other Person nor has Optionee
entered into any agreement or understanding to transfer said Option
Shares.  Optionee will acquire the Option
Shares, if at all, for an indefinite period for investment purposes only and
not with a view to distribute them in violation of any applicable federal or
state securities laws or the regulations promulgated thereunder.  Optionee does not intend to subdivide
Optionee’s acquisition of any Option Shares with any other Person.  No Option Shares will be transferred until
all legal requirements applicable to the transfer of such Option Shares have
been complied with to the satisfaction of the Board of Directors.  The Board of Directors shall have the right
to condition any transfer of shares to Optionee upon Optionee’s written
undertaking to comply with such restrictions on his subsequent disposition of
such shares as the Board of Directors shall deem necessary or advisable as a
result of any applicable law, regulation or official interpretation thereof.

 

SECTION 4.3                     NATURE OF
OPTION SHARES.  Optionee is (or will
be at the time of any acquisition of Option Shares) able to bear the economic
risk of any investment in Option Shares and is aware that it must be prepared
to hold any Option Shares received for an indefinite period of time and that
such Option Shares have not been registered under the Securities Act of 1933,
as amended (the “Act”).

 

SECTION 4.4                     SOPHISTICATION
OF OPTIONEE.  Optionee has such knowledge
and experience in financial and business matters that Optionee is capable of
evaluating the merits and risks of the prospective investment by Optionee
contemplated by this Agreement and Optionee has carefully reviewed and/or will
carefully review all of the information regarding the Company, access to which
has been or will be provided to Optionee hereunder and Optionee is thoroughly
familiar with the business, operations and properties of the Company by virtue
of such review and of Optionee’s relationship with the Company.

 

SECTION 4.5                     OPTION SHARES
WILL CONSTITUTE CONTROL SECURITIES.  
The Option Shares, if and when subscribed for by Optionee, will
constitute control securities and accordingly, the Option Shares must be resold
in conformance with Rule 144.  In
connection with the issuance of this Option, the Company undertakes to file a
prospectus supplement to Form S-8 (File No. 333-40091) filed with the
Securities and Exchange Commission on November 12, 1997, naming Optionee a
selling security holder thereunder.

 

SECTION 4.6                     OPTION NOT
ASSIGNABLE.  The Option herein
granted to Optionee may not be assigned or conveyed by Optionee to any Person
or Persons without the prior written consent of the Company, except to his
successors,

 

4

 

assigns, personal
or legal representatives, heirs and legatees, or as otherwise permitted
hereunder.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1                     TAX ADVISOR.  OPTIONEE SHOULD CONSULT WITH HIS OWN TAX
ADVISOR PRIOR TO ACCEPTING OR EXERCISING THE OPTION GRANTED HEREIN.

 

SECTION 5.2                     COMPLIANCE
WITH RESTRICTIONS.  The covenants,
conditions and restrictions herein contained shall be and constitute covenants,
conditions and restrictions accepted by Optionee with regards to the Option
Shares now or hereafter owned by Optionee, or any transferee of Option Shares
from Optionee directly or indirectly, and none of the Option Shares shall be
sold, transferred, encumbered, pledged, hypothecated, given as a gift, or
otherwise disposed of or alienated in any way to any Person except in full
compliance with the laws of the United States and Optionee agrees to take all
such action as is necessary or convenient to prohibit transfer of certificates
for Option Shares.  Any Person who
acquires any Option Shares or any interest therein shall hold such Option
Shares or interest subject to this Agreement.

 

SECTION 5.3                     FURTHER
ASSURANCES.

 

(a)                                  Optionee shall
execute and deliver such further instruments of conveyance and transfer and
take such other action as the Company may reasonably request to convey and
transfer to other Persons any Option Shares to be transferred in the future
pursuant to this Agreement.  The Company
agrees to apply for and use its best efforts to obtain all governmental and
administrative approvals required in connection with any exercise of the
Option.  Optionee agrees to cooperate in
obtaining such approvals and to execute any and all documents or instruments
which, in the opinion of the Company, may be required, appropriate or desirable
to be executed by Optionee in connection with such approvals.  The Company shall pay all costs and filing
fees in connection with obtaining such approvals.

 

(b)                                 The Company shall
permit Optionee, or any person entitled to exercise the Option pursuant to Section 3.2
hereof, so long as the Option has not been exercised in full, to inspect,
review and copy, or shall furnish to Optionee a copy of, each annual and other
periodic or occasional financial reports of the Company from a date two (2)
years prior to the date hereof.

 

SECTION 5.4                     SUCCESSORS
AND ASSIGNS.  Without limiting the
restrictions on transfer set forth herein, this Agreement shall bind and shall
inure to the benefit of and be enforceable by the Company, any Successor
Entity, and Optionee, and their respective successors, assigns, personal or
legal representatives, heirs and legatees, whether herein so expressed or not,
and this Agreement shall be binding on any transferee who has received Option
Shares in accordance with any provisions hereof and

 

5

 

shall be binding
on any Persons to whom any of the Option Shares are transferred in violation of
any provision of this Agreement and on any executor, administrator, successor
or assign of any such Person.

 

SECTION 5.5                     SEVERABILITY.  It is intended that each provision of this
Agreement shall be viewed as separate and divisible and in the event that any
provision hereof shall be held to be invalid or enforceable, the remaining
provisions shall continue to be in full force and effect.

 

SECTION 5.6                     INSPECTION OF
AGREEMENT.  A copy of this Agreement
shall be maintained by the Board of Directors and shall be shown to any person
who demonstrates, to the satisfaction of the Company, that it has a right
hereunder.

 

SECTION 5.7                     ENTIRE
AGREEMENT.  This Agreement contains
the entire Agreement of the parties hereto and supersedes all prior
negotiations, correspondence, understandings and agreements between the parties
hereto, with respect to the subject matter hereof.

 

SECTION 5.8                     SHARES TO BE
RESERVED.  The Company shall at all
times while the Option is outstanding, reserve and keep available such number
of Class B Shares as will be sufficient to satisfy the requirements of
this Agreement including, without limitation, the sale of the Option Shares to
Optionee.

 

SECTION 5.9                     NOTICES.  Except as otherwise expressly provided
herein, any notice or communication to be given under the terms of this
Agreement shall be in writing and shall be deemed duly given when delivered
personally or deposited in the mail, by certified or registered mail, or by
telecopier (confirmed in writing), property addressed as follows:

 

(a)                                  if to the Company:

 

Pepsi-Cola Puerto Rico Bottling Company

Carretera 865 Km. 0.4

Bo. Candelaria Arenas

Toa Baja, Puerto Rico

Telecopier:  (787)
251-2977

Attention:
President

 

(b)                                 if to Optionee:

 

___________________________

___________________________

___________________________

___________________________

 

By notice given pursuant
to this Section 5.9, either party may hereinafter designate a different
address for said notices.

 

6

 

SECTION 5.10              TITLES AND HEADINGS
OF SECTIONS.  The titles and headings
of Articles and Sections in this Agreement are provided for convenience purposes
only and are not intended to modify or affect the meaning of any provision
herein, and thus, shall not serve as a basis for interpretation or construction
of this Agreement.

 

SECTION 5.11              AMENDMENTS.  This Agreement may not be amended, altered or
modified except by a written instrument executed by both parties hereto.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

7

 

IN WITNESS WHEREOF, the authorized
representatives of the parties hereto execute this Agreement on the date first
above written.

 

	
  COMPANY

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  PEPSI COLA
  PUERTO RICO BOTTLING

  COMPANY

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
						

 

******************************

 

OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S
NON-QUALIFIED STOCK OPTION PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE,
SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF
EMPLOYMENT, CONSULTANCY OR DIRECTORSHIP WITH THE COMPANY, AS APPLICABLE, NOR
SHALL IT INTERFERE IN ANY WAY WITH ITS RIGHT TO TERMINATE OPTIONEE’S
EMPLOYMENT, CONSULTANCY OR DIRECTORSHIP AT ANY TIME, WITH OR WITHOUT CAUSE.

 

Optionee acknowledges
receipt of a copy of the Plan and certain information related thereto and
represents that he is familiar with the terms and provisions thereof, and
hereby accepts this Option subject to all of the terms and provisions
thereof.  Optionee has reviewed the Plan
and this Option in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Option and fully understands all provisions
of this Agreement.  Optionee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board of Directors upon any questions arising under the Plan.

 

	
  OPTIONEE

  
	
   

  
	
   

  	
   

  

 

 

*** STOCK OPTION
AGREEMENT DATED AS OF                               ***

 

8EXHIBIT 10.10

 

STOCK OPTION AGREEMENT

 

This Agreement, dated as of                              
is made by and between PEPSI-COLA PUERTO RICO BOTTLING COMPANY, a corporation
organized and existing under the laws of the State of Delaware (hereinafter the
“Company”), and                              ,
of legal age,                            of
the Company and a resident of San Juan, Puerto Rico (hereinafter the “Optionee”).

 

WITNESSETH

 

WHEREAS, Optionee,
in her capacity as                                of
the Company, provides executive, management and other professional services to
the Company; and

 

WHEREAS, the Company
desires to afford Optionee the opportunity to subscribe shares of Class B
common stock of the Company (“Class B Shares”); and

 

WHEREAS, the Board
of Directors of the Company (the “Board of Directors”) in a duly convened
meeting, has approved of the granting of options to the Optionee to subscribe
to Class B Shares of the Company.

 

NOW, THEREFORE, in
consideration of the premises, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01                            Certain
Definitions.  Whenever the
following terms are used in this Agreement, they shall have the respective
meanings specified below unless the context clearly indicates the contrary.

 

(a)                                  “Class
B Shares” shall mean the shares of Class B common stock of the Company, at
anytime issued and outstanding, having a par value of $0.01 and having one (1)
vote per share.

 

(b)                                 “Option”
shall mean the option to subscribe Option Shares (as hereinafter defined)
granted under this Agreement.

 

(c)                                  “Plan”
shall mean the Pepsi-Cola Bottling Company Qualified Stock Option Plan adopted
by the Company and dated December 30, 1996, a complete copy of which is
attached hereto.

 

ARTICLE II

GRANT OF OPTION

 

Section 2.01                            Grant
of Option.  The Company hereby
irrevocably grants to Optionee the option to subscribe up to such amount of
Class B Shares of the Company equal to                   
(            )
Class B Shares of the Company (the “Option Shares”) in whole or in part, on
such terms and conditions as set forth in this Agreement and pursuant to the
Plan, and which Option shall vest

 

 

50% as
of March 3, 1998 and the balance will become vested on the earlier of the
date there is a change of control of the Company or December 31, 1998.

 

Section 2.02                            Purchase
Price.  The purchases price of
each Option Share payable by Optionee upon exercise of the Option shall be six
and one quarter ($6.25) United States Dollars (the “Purchase Price”), without
commission or other charge.

 

ARTICLE III

EXERCISE OF OPTION

 

Section 3.01                            Exercise
of Option.  The Option shall be
exercisable within ten (10) years from the date hereof.  After such date, the Option shall be deemed
automatically cancelled, terminated and without effect.

 

Section 3.02                            Persons
eligible to exercise.  The Option
granted hereunder may only be exercised by Optionee, its successors or
permitted assigns, including without limiting the generality of the foregoing,
the estate of Optionee upon the death of Optionee.

 

Section 3.03                            Partial
exercise.  Subject to the
restrictions herein contained or in the Plan, the Option may be exercised in
whole or in part.

 

Section 3.04                            Method
of Exercise.  The Option may be
exercised subject to the delivery to the Company (to the attention of the
President of the Company), of all of the following:

 

(a)                                  Notice
in writing signed by Optionee or the other person then entitled to exercise the
Option or such portion, stating that the Option or such portion is hereby
exercised;

 

(b)                                 Full
payment (in cash, wire transfer or by check) for the Option Shares with respect
to which the Option or such portion is exercised, at the price calculated in
accordance with Section 2.02 hereof; and

 

(c)                                  In
the event the Option shall be exercised in whole or in part pursuant to Section 3.02
hereof by any Person or Persons other than Optionee, appropriate proof of the
right of such Person or Persons to exercise the option.

 

Section 3.05                            Issuance
of Option Shares.  The Option
Shares or any part thereof, shall be Class B Shares of the Company.  The Option Shares, when issued and/or
delivered pursuant to any exercise of the Option, shall be fully paid and
nonassessable, subject to all the terms and conditions of this agreement.

 

Section 3.06                            Rights
of Optionee.  Optionee, as such,
shall not be, and not have any of the rights or privileges of a shareholder of
the Company in respect of any Option Shares unless and until such Option Shares
shall have been subscribed by Optionee, and delivered by the Company to
Optionee in accordance with this Agreement.

 

Section 3.07                            Stock
Appreciation.  In the event that
(i) Class B Shares of the Company are no longer traded in the New York Stock
Exchange, or any other nationally recognized stock exchange as of the date the
Option, or any part thereof, becomes exercisable, or (ii) upon the

 

2

 

determination
by the Board of Directors of the Company, at its sole discretion, the Company
agrees to pay the Optionee, at the time of exercise, in immediately-available
funds (or other consideration agreed to), an amount equal to the appreciation
of the value of the Option Shares between the Purchase Price thereof and their
Fair Market Value at the date of exercise.

 

ARTICLE IV

OPTIONEE’S REPRESENTATIONS, WARRANTIES

AND COVENANTS

 

Optionee represents, warrants, and agrees with the Company as follows:

 

Section 4.01                            Nature
of Option Shares.  Optionee
acknowledges and is aware that if the Option Shares have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”) or by other
applicable securities laws, it cannot sell, transfer or dispose Option Shares
until prior to any proposed sale, transfer or disposition of any of the Option
Shares, either (a) a registration statement under the Securities Act with
respect to the Option Shares proposed to be transferred or otherwise disposed
of shall then be effective, or (b) such disposition will not require the
registration of any of the Option Shares under the Securities Act or
qualification of the Option Shares under any other securities law.

 

Section 4.02                            Option
Not Assignable.  The Option
herein granted to Optionee may not be assigned or conveyed by Optionee to any
Person or Persons without the prior written consent of the Company, except as
otherwise permitted hereunder.

 

ARTICLE V

MISCELLANEOUS

 

Section 5.01                            The
Plan; Conflicting Terms. 
Reference is hereby made to the Plan and the Option herein granted shall
be subject to and shall be exercisable in accordance with the terms and
conditions therein set forth.  In this
respect, in the event of any conflict between the terms hereof and the terms of
the Plan, the terms of the Plan shall be controlling.

 

Section 5.02                            Successors
and Assigns.  Without limiting
the restrictions on transfer set forth herein, this Agreement shall bind and
shall inure to the benefit of and be enforceable by the Company and Optionee,
and their respective successors, permitted assigns, personal or legal
representatives, heirs and legatees.

 

Section 5.03                            Severability.  It is intended that each provision of this
Agreement shall be viewed as separate and divisible and in the event that any
provision hereof shall be held to be invalid or unenforceable, the remaining
provisions shall continue to be in full force and effect.

 

Section 5.04                            Titles
and Headings of Sections.  The
titles and headings of Articles and Sections in this Agreement are provided for
convenience purposes only and are not intended to modify or affect the meaning
of any provision herein, and thus, shall not serve as a basis for
interpretation of construction of this Agreement.

 

Section 5.05                            Amendments.  This Agreement may not be amended, altered or
modified except by a written instrument executed by both parties hereto.

 

3

 

IN WITNESS WHEREOF the
parties hereto execute this Agreement on the date first above written.

 

	
  COMPANY

  	
  OPTIONEE

  
	
  PEPSI-COLA
  PUERTO RICO

  	
   

  
	
  BOTTLING
  COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  President
  and CEO

  	
   

  
				

 

4

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