Document:

Exhibit 10.1

 

AGREEMENT

 

CONCERNING THE EXCHANGE OF
SECURITIES

 

BY AND AMONG

 

NEWBRIDGE REORGANIZATION, INC.

 

AND

 

BEVERAGE ACQUISITION CORPORATION
AND

THE SECURITY HOLDERS OF BEVERAGE
ACQUISITION CORPORATION

 

 

INDEX

 

	
  ARTICLE I - EXCHANGE OF SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  - Issuance of Securities

  	
   

  
	
  1.2

  	
  - Corporate Action by
  Newbridge

  	
   

  
	
  1.3

  	
  - Exemption from Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - REPRESENTATIONS AND WARRANTIES OF
  BAC

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  - Organization

  	
   

  
	
  2.2

  	
  - Capital

  	
   

  
	
  2.3

  	
  - Subsidiaries

  	
   

  
	
  2.4

  	
  - Directors and Officers

  	
   

  
	
  2.5

  	
  - Financial Statements

  	
   

  
	
  2.6

  	
  - Absence of Changes

  	
   

  
	
  2.7

  	
  - Absence of Undisclosed
  Liabilities

  	
   

  
	
  2.8

  	
  - Tax Returns

  	
   

  
	
  2.9

  	
  - Investigation of Financial
  Condition

  	
   

  
	
  2.10

  	
  - Proprietary Rights

  	
   

  
	
  2.11

  	
  - Compliance with Laws

  	
   

  
	
  2.12

  	
  - Litigation

  	
   

  
	
  2.13

  	
  - Authority

  	
   

  
	
  2.14

  	
  - Ability to Carry Out
  Obligations

  	
   

  
	
  2.15

  	
  - Full Disclosure

  	
   

  
	
  2.16

  	
  - Assets

  	
   

  
	
  2.17

  	
  - Material Contracts

  	
   

  
	
  2.18

  	
  - Indemnification

  	
   

  
	
  2.19

  	
  - Criminal or Civil Acts

  	
   

  
	
  2.20

  	
  - Restricted Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - REPRESENTATIONS AND WARRANTIES
  OF NEWBRIDGE

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  - Organization

  	
   

  
	
  3.2

  	
  - Capital

  	
   

  
	
  3.3

  	
  - Subsidiaries

  	
   

  
	
  3.4

  	
  - Directors and Officers

  	
   

  
	
  3.5

  	
  - Financial Statements

  	
   

  
	
  3.6

  	
  - Absence of Changes

  	
   

  
	
  3.7

  	
  - Absence of Undisclosed
  Liabilities

  	
   

  
	
  3.8

  	
  - Tax Returns

  	
   

  

 

i

 

	
  3.9

  	
  - Investigation of Financial
  Condition

  	
   

  
	
  3.10

  	
  - Proprietary Rights

  	
   

  
	
  3.11

  	
  - Compliance with Laws

  	
   

  
	
  3.12

  	
  - Litigation

  	
   

  
	
  3.13

  	
  - Authority

  	
   

  
	
  3.14

  	
  - Ability to Carry Out
  Obligations

  	
   

  
	
  3.15

  	
  - Full Disclosure

  	
   

  
	
  3.16

  	
  - Assets

  	
   

  
	
  3.17

  	
  - Material Contracts

  	
   

  
	
  3.18

  	
  - Indemnification

  	
   

  
	
  3.19

  	
  - Criminal or Civil Acts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - COVENANTS PRIOR TO THE CLOSING
  DATE

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  - Investigative Rights

  	
   

  
	
  4.2

  	
  - Conduct of Business

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - CONDITIONS PRECEDENT TO NEWBRIDGE’S
  PERFORMANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  - Conditions

  	
   

  
	
  5.2

  	
  - Accuracy of
  Representations

  	
   

  
	
  5.3

  	
  - Performance

  	
   

  
	
  5.4

  	
  - Absence of Litigation

  	
   

  
	
  5.5

  	
  - Officer’s Certificate

  	
   

  
	
  5.6

  	
  - Private Placement

  	
   

  
	
  5.7

  	
  - Corporate Action

  	
   

  
	
  5.8

  	
  - Purchase from Nutri
  Systems, Inc

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - CONDITIONS PRECEDENT TO BAC’S
  PERFORMANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  - Conditions

  	
   

  
	
  6.2

  	
  - Accuracy of
  Representations

  	
   

  
	
  6.3

  	
  - Performance

  	
   

  
	
  6.4

  	
  - Absence of Litigation

  	
   

  
	
  6.5

  	
  - Officer’s Certificate

  	
   

  
	
  6.6

  	
  - Directors of Newbridge

  	
   

  
	
  6.7

  	
  - Officers of Newbridge

  	
   

  

 

ii

 

	
  6.8

  	
  - Corporate Action

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII - CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  - Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII - COVENANTS SUBSEQUENT TO THE
  CLOSING DATE

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  - Registration and Listing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX- MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  - Captions and Headings

  	
   

  
	
  9.2

  	
  - No Oral Change

  	
   

  
	
  9.3

  	
  - Non-Waiver

  	
   

  
	
  9.4

  	
  - Time of Essence

  	
   

  
	
  9.5

  	
  - Entire Agreement

  	
   

  
	
  9.6

  	
  - Choice of Law

  	
   

  
	
  9.7

  	
  - Counterparts

  	
   

  
	
  9.8

  	
  - Notices

  	
   

  
	
  9.9

  	
  - Binding Effect

  	
   

  
	
  9.10

  	
  - Mutual Cooperation

  	
   

  
	
  9.11

  	
  - Finders

  	
   

  
	
  9.12

  	
  - Announcements

  	
   

  
	
  9.13

  	
  - Expenses

  	
   

  
	
  9.14

  	
  - Survival of
  Representations and Warranties

  	
   

  
	
  9.15

  	
  - Exhibits

  	
   

  
	
  9.16

  	
  - Legal Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures

  	
   

  

 

iii

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Allocation
  of Securities

  	
  Exhibit 1.1

  	
   

  
	
   

  	
  Subscription
  Agreement

  	
  Exhibit 1.2

  	
   

  
	
   

  	
  Financial
  Statements of Newbridge

  	
  Exhibit 3.5

  	
   

  
	
   

  	
  Agreement
  with Nutri Systems, Inc

  	
  Exhibit 5.8

  	
   

  

 

iv

 

AGREEMENT

 

AGREEMENT made this     
day of                   ,
2002, by and between NEWBRIDGE REORGANIZATION, INC., a Nevada corporation (“Newbridge”),
BEVERAGE ACQUISITION CORPORATION, a Delaware corporation (“BAC”), and the
security holders of BAC (the “BAC Security Holders”) who are listed on Exhibit 1.1
hereto and have executed Subscription Agreements in the form attached in Exhibit 1.2,
hereto.

 

WHEREAS, Newbridge desires to acquire all of the issued and outstanding
common stock of BAC from the BAC Security Holders in exchange for newly issued
unregistered shares of common stock of Newbridge;

 

WHEREAS, BAC desires to assist Newbridge in acquiring all of the issued
and outstanding common stock of BAC pursuant to the terms of this Agreement;
and

 

WHEREAS, all of the BAC Security Holders, by execution of Exhibit 1.2
hereto, agree to exchange all 4,000,000 common shares of BAC for 2,750,000
common shares of Newbridge.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and
representations contained herein, THE PARTIES HERETO AGREE AS FOLLOWS:

 

ARTICLE I

 

Exchange
of Securities

 

1.1      Issuance
of Securities. Subject to the terms and conditions of this
Agreement, Newbridge agrees to issue and exchange 2,750,000 fully paid and
nonassessable unregistered shares of Newbridge’s no par value common stock (the
“Newbridge Shares”) for all 4,000,000 issued and outstanding shares of the
$.001 par value common stock of BAC (the “BAC Shares”) held by the BAC Security
Holders. All Newbridge common stock will be issued directly to the BAC Security
Holders on the Closing Date, pursuant to the schedule set forth in Exhibit 1.1.

 

1.2      Corporate
Action by Newbridge. Prior to the closing date of this Agreement
(the “Closing Date”), Newbridge will (i) reverse split its common stock on
the basis of one share for each eight shares outstanding and (ii) change
its name to “Sweet Success Enterprises, Inc.”

 

1.3      Exemption
from Registration. The parties hereto intend that all Newbridge common
stock to be issued to the BAC Security Holders shall be exempt from the
registration requirements of the Securities Act of 1933, as amended (the “Act”),
pursuant to Section 4(2) of the Act and the rules and
regulations promulgated thereunder. In furtherance thereof, the BAC Security
Holders will execute and deliver to Newbridge on the Closing Date a copy of the
Subscription Agreement set forth in Exhibit 1.2 hereto.

 

1

 

ARTICLE II

 

Representations
and Warranties of BAC

 

BAC hereby represents and warrants to Newbridge that:

 

2.1      Organization.
BAC is a corporation duly organized, validly existing and in good standing
under the laws of Delaware, has all necessary corporate powers to own its
properties and to carry on its business as now owned and operated by it, and is
duly qualified to do business and is in good standing in each of the states
where its business requires qualification.

 

2.2      Capital.
The authorized capital stock of BAC consists of 50,000,000
authorized shares of $.001 par value common stock, of which 4,000,000 shares of
common stock are outstanding, and 10,000,000 shares of $.001 par value
preferred stock, none of which is outstanding. All of the outstanding common
stock of BAC is duly and validly issued, fully paid and nonassessable. There
are no outstanding subscriptions, options, rights, warrants, debentures,
instruments, convertible securities or other agreements or commitments
obligating BAC to issue or to transfer from treasury any additional shares of
its capital stock of any class.

 

2.3      Subsidiaries.
BAC does not have any subsidiaries or own any interest in any other enterprise.

 

2.4      Directors
and Officers. The names and titles of the directors and officers of
BAC as of the date of this Agreement are as follows: William Albright, Chief
Executive Officer and Director; William Gallagher, Chairman of the Board of
Directors; Joseph Fazzone, Chief Financial Officer and Director; and William
Nixon, Chief Marketing Strategist.

 

2.5      Financial
Statements. BAC was formed in September 2002 and has no assets
or liabilities.

 

2.6      Absence
of Changes. BAC has had no operations.

 

2.7      Absence
of Undisclosed Liabilities. As of September 30, 2002, BAC did
not have any material debt, liability or obligation of any nature, whether
accrued, absolute, contingent or otherwise, and whether due or to become due.

 

2.8      Tax
Returns. BAC has filed all federal, state and local tax returns
required by law and has paid all taxes, assessments and penalties due and
payable. The provisions for taxes, if any, reflected in Exhibit 2.5 are
adequate for the periods indicated. There are no present disputes as to taxes
of any nature payable by BAC.

 

2.9      Investigation
of Financial Condition. Without in any manner reducing or otherwise
mitigating the representations contained herein, Newbridge, its legal counsel
and accountants shall have the opportunity to meet with BAC’ accountants and
attorneys to discuss the financial condition of BAC. BAC shall make available
to Newbridge all books and records of BAC.

 

2

 

2.10    Proprietary
Rights. Upon acquisition of the Sweet Success business described in Section 5.8,
BAC will own all necessary trademarks, service marks, trade names, copyrights, patents
and proprietary information and other rights necessary or material to its
business as now conducted or proposed to be conducted.

 

2.11    Compliance
with Laws. BAC has complied with, and is not in violation of, applicable
federal, state or local statutes, laws and regulations, including federal and
state securities laws.

 

2.12    Litigation.
BAC is not a defendant in any suit, action, arbitration or legal, administrative
or other proceeding, or governmental investigation which is pending or, to the best
knowledge of BAC, threatened against or affecting BAC or its business, assets
or financial condition.  BAC is not in
default with respect to any order, writ, injunction or decree of any federal,
state, local or foreign court, department, agency or instrumentality applicable
to it. BAC is not engaged in any material litigation to recover monies due to
it.

 

2.13    Authority.
The Board of Directors of BAC has authorized the execution of this Agreement
and the consummation of the transactions contemplated herein, and BAC has full power
and authority to execute, deliver and perform this Agreement, and this
Agreement is a legal, valid and binding obligation of BAC and is enforceable in
accordance with its terms and conditions. By execution of Exhibit 1.2, all
of die BAC Security Holders have agreed to and have approved the terms of this
Agreement.

 

2.14    Ability
to Carry Out Obligations. The execution and delivery of this
Agreement by BAC and the performance by BAC of its obligations hereunder in the
time and manner contemplated will not cause, constitute or conflict with or
result. in (a) any breach or violation of any of the provisions of or
constitute a default under any license, indenture, mortgage, instrument, article of
incorporation, bylaw, or other agreement or instrument to which BAC is a party,
or by which it may be bound, nor will any consents or authorizations of any
party other than those hereto be required, (b) an event that would permit
any party to any agreement or instrument to terminate it or to accelerate the
maturity of any indebtedness or other obligation of BAC, or (c) an event
that would result in the creation or imposition of any lien, charge or
encumbrance on any asset of BAC.

 

2.15    Full
Disclosure. None of the representations and warranties made by BAC
herein or in any exhibit, certificate or memorandum furnished or to be
furnished by BAC, or on its behalf, contains or will contain any untrue
statement of material fact or omit any material fact the omission of which
would be misleading.

 

2.16    Assets. BAC
has no assets.

 

2.17    Material
Contracts. BAC does not have any material contracts, except its agreement
with Nutri Systems, Inc. described in Section 5.8, below.

 

3

 

2.18    Indemnification.
BAC agrees to indemnify, defend and hold Newbridge harmless against
and in respect of any and all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries and deficiencies, including
interest, penalties and reasonable attorney fees, that it shall incur or
suffer, which arise out of, or result from (i) any breach by BAC in
performing any of its covenants or agreements under this Agreement or in any schedule,
certificate, exhibit or other instrument furnished or to be furnished by BAC
under this Agreement or (ii) any untrue statement made by BAC in this
Agreement.

 

2.19    Criminal
or Civil Acts. For the period of five years prior to the execution
of this Agreement, no executive officer, director or principal stockholder of
BAC has been convicted of a felony crime, filed for personal bankruptcy, been
the subject of a Commission judgment or decree, or is currently the subject to
any investigation in connection with a felony crime or Commission proceeding.

 

2.20    Restricted
Securities. BAC and the BAC Security Holders, by execution of this Agreement
and of Exhibit 1.2, acknowledge that all of the Newbridge Shares issued by
Newbridge are restricted securities and none of such securities may be sold or
publicly traded except in accordance with the provisions of the Act.

 

ARTICLE III

 

Representations
and Warranties of Newbridge

 

Newbridge represents and warrants to BAC that:

 

3.1      Organization.
Newbridge is a corporation duly organized, validly existing and in good
standing under the laws of Nevada, has all necessary corporate powers to carry
on its business, and is duly qualified to do business and is in good standing
in each of the states where its business requires qualification.

 

3.2      Capital.
The authorized capital stock of Newbridge on the Closing Date will consist
of (i) 60,000,000 shares of $.0001 par value common stock, of which
375,000 shares of common stock will be issued and outstanding on the Closing
Date, (ii) 375,000 Class A common stock purchase warrants, 375,000 Class B
common stock purchase warrants and 375,000 Class C common stock purchase
warrants (the “Class A”, “Class B” and “Class C” warrants),
exercisable to purchase shares of Newbridge’s common stock at $1.50 per share, $2.00
per share and $3.00 per share, respectively. All of Newbridge’s outstanding
securities are duly and validly issued, fully paid and nonassessable. There are
no other outstanding subscriptions, options, rights, warrants, debentures,
instruments, convertible securities or other agreements or commitments
obligating Newbridge to issue or to transfer from treasury any additional
shares of its capital stock of any class except shares issuable under this
Agreement.

 

3.3      Subsidiaries.
Newbridge does not have any subsidiaries or own any interest in any
Other enterprise,

 

4

 

3.4      Directors
and Officers. The names and titles of the directors and officers of Newbridge
are: Jack D. Kelley, President and Director; James A. Eller, Secretary and Director;
and Derold L. Kelley, Director.

 

3.5      Financial
Statements. Exhibit 3.5 hereto consists of the unaudited
financial statements of Newbridge for the period ended September 30, 2002
(the “Newbridge Financial Statements”), The Newbridge Financial Statements have
been prepared in accordance with generally accepted accounting principles and
practices consistently followed by Newbridge throughout the period indicated,
and fairly present the financial position of Newbridge as of the date of the
balance sheets included in the Newbridge Financial Statements and the results
of operations for the period indicated.

 

3.6      Absence
of Changes. Since September 30, 2002, there has not been any
material change in the financial condition or operations of Newbridge, except
as contemplated by this Agreement.

 

3.7      Absence
of Undisclosed Liabilities. As of September 30, 2002, Newbridge
did not have any material debt, liability or obligation of any nature, whether
accrued, absolute, contingent or otherwise, and whether due or to become due,
that is not reflected in the Newbridge Financial Statements.

 

3.8      Tax
Returns.  Within the times and
in the manner prescribed by law, Newbridge has filed all federal, state and
local tax returns required by law and has paid all taxes, assessments, and
penalties due and payable.

 

3.9      Investigation
of Financial Condition. Without in any manner reducing or otherwise
mitigating the representations contained herein, BAC, its legal counsel and accountants
shall have the opportunity to meet with Newbridge’s accountants and attorneys
to discuss the financial condition of Newbridge. Newbridge shall make available
to BAC all books and records of Newbridge.

 

3.10    Proprietary
Rights. Newbridge does not have any patents, trademarks, service marks,
trade names or copyrights.

 

3.11    Compliance
with Laws.  Newbridge has
complied with, and is not in violation of, applicable federal, state or local
statutes, laws or regulations including federal and state securities laws.

 

3.12    Litigation.
Newbridge is not a defendant in any suit, action, arbitration, or
legal, administrative or other proceeding, or governmental investigation which
is pending or, to the best knowledge of Newbridge, threatened against or
affecting Newbridge or its business, assets or financial condition. Newbridge
is not in default with respect to any order, writ, injunction or decree of any
federal, state, local or foreign court, department, agency or instrumentality applicable
to it. Newbridge is not engaged in any material litigation to recover monies
due to it.

 

5

 

3.13    Authority.
The Board of Directors of Newbridge has authorized the execution of this
Agreement and the transactions contemplated herein, and Newbridge has full
power and authority to execute, deliver and perform this Agreement, and this
Agreement is the legal, valid and binding obligation of Newbridge, and is
enforceable in accordance with its terms and conditions.

 

3.14    Ability
to Carry Out Obligations. The execution and delivery of this
Agreement by Newbridge and the performance by Newbridge of its obligations
hereunder will not cause, constitute or conflict with or result in (a) any
breach or violation of any of the provisions of or constitute a default under
any license, indenture, mortgage, instrument, article of incorporation,
bylaw or other agreement or instrument to which Newbridge is a party, or by which
it may be bound, nor will any consents or authorization of any party other than
those hereto be required, (b) an event that would permit any party to any
agreement or instrument to terminate it or to accelerate the maturity of any
indebtedness or other obligation of Newbridge, or (c) an event that would
result in the creation or imposition of any lien, charge or encumbrance on any
asset of Newbridge.

 

3.15    Full
Disclosure. None of the representations and warranties made by
Newbridge herein, or in any exhibit, certificate or memorandum furnished or to
be furnished by Newbridge or on its behalf, contains or will contain any untrue
statement of material fact or omit any material fact the omission of which
would be misleading.

 

3.16    Assets. Newbridge
has no assets.

 

3.17    Material
Contracts. Newbridge has no material contracts.

 

3.18    Indemnification.
Newbridge agrees to indemnify, defend and hold BAC harmless against
and in respect of any and all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries and deficiencies, including
interest, penalties, and reasonable attorney fees, that it shall incur or
suffer, which arise out of, or result from (i) any breach by Newbridge in
performing any of its covenants or agreements in this Agreement or in any schedule,
certificate, exhibit or other instrument furnished or to be furnished by
Newbridge under this Agreement, or (ii) any untrue statement made by
Newbridge in this Agreement.

 

3.19    Criminal
or Civil Acts. For a period of five years prior to the execution of
this Agreement, no executive officer, director or principal stockholder of
Newbridge has been convicted of a felony crime, filed for personal bankruptcy,
been the subject of a Commission judgment or decree, or is currently the
subject to an investigation in connection with any felony crime or Commission
proceeding. Newbridge previously filed for protection under the provisions of
Chapter 11 of the U.S. Bankruptcy Act, and its plan of reorganization was confirmed
by the Bankruptcy Court in September 2002.

 

6

 

ARTICLE IV

 

Covenants
Prior to the Closing Date

 

4.1      Investigative
Rights. Prior to the Closing Date, each party shall provide to the other
party, and such other party’s counsel, accountants, auditors and other authorized
representatives, full access during normal business hours and upon reasonable
advance written notice to all of each party’s properties, books, contracts,
commitments and records for the purpose of examining the same. Each party shall
furnish the other party with all information concerning each party’s affairs as
the other party may reasonably request.

 

4.2      Conduct
of Business. Prior to the Closing Date, each party shall conduct its
business in the normal course and shall not sell, pledge or assign any assets
without the prior written approval of the other party, except in the normal
course of business. Neither party shall amend its Articles of Incorporation or
Bylaws (except as may be described in this Agreement), declare dividends,
redeem or sell stock or other securities, incur additional or newly-funded
liabilities, acquire or dispose of fixed assets, change employment terms, enter
into any material or long-term contract, guarantee obligations of any third
party, settle or discharge any balance sheet receivable for less than its
stated amount, pay more on any liability than its stated amount, or enter into
any other transaction other than in the normal course of business. Neither
party shall enter into negotiations with any third party or complete any transaction
with a third party involving the sale of any of its assets or the exchange of
any of its common stock.

 

ARTICLE V

 

Conditions
Precedent to Newbridge’s Performance

 

5.1      Conditions.
Newbridge’s obligations hereunder shall be subject to the satisfaction
at or before the Closing of all the conditions set forth in this Article V.
Newbridge may waive any or all of these conditions in whole or in part without
prior notice; provided, however, that no such waiver of a condition shall
constitute a waiver by Newbridge of any other condition of or any of Newbridge’s
other rights or remedies, at law or in equity, if BAC shall be in default of
any of its representations, warranties or covenants under this Agreement.

 

5.2      Accuracy
of Representations. Except as otherwise permitted by this Agreement,
all representations and warranties by BAC in this Agreement or in any written
statement that shall be delivered to Newbridge by BAC under this Agreement
shall be true and accurate on and as of the Closing Date as though made at that
time.

 

5.3      Performance.
BAC shall have performed, satisfied and complied with all covenants,
agreements and conditions required by this Agreement to be performed or
complied with by it on or before the Closing Date.

 

5.4      Absence
of Litigation. No action, suit, or proceeding before any court or
any governmental body or authority, pertaining to the transaction contemplated
by this Agreement

 

7

 

or to its consummation, shall have been instituted or threatened
against BAC on or before the Closing Date.

 

5.5      Officer’s
Certificate. BAC shall have delivered to Newbridge a certificate
dated the Closing Date signed by the Chief Executive Officer of BAC certifying
that each of the conditions specified in this Article has been fulfilled
and that all of the representations set forth in Article II are true and
correct as of the Closing Date.

 

5.6      Private
Placement. Prior to the Closing Date, BAC shall have arranged for investors
to purchase 80,000 units of Newbridge’s post-reverse split securities from
Earnest Mathis at $2.75 per unit for a total of $220,000. Each unit will
consist of one share of common stock, one Class A, one Class B and
one Class C warrant. Accordingly, Mr. Mathis will own 220,000 shares
of common stock and 220,000 Class A, Class B and Class C
warrants on the Closing Date.

 

5.7      Corporate
Action. BAC shall have obtained the approval of the BAC Security Holders
for the transaction contemplated by this Agreement.

 

5.8      Purchase
from Nutri Systems, Inc. Within 90 days from the Closing Date,
the BAC stockholders shall cause Newbridge to acquire the rights to the Sweet
Success business from Nutri Systems, Inc. for $200,000 in cash pursuant to
the agreement with Nutri Systems, Inc. attached as Exhibit 5.8. On
the closing date of BAC’s acquisition of Sweet Success, Newbridge shall issue
to Nutri Systems, Inc. common stock purchase warrants to purchase 200,000
shares of Newbridge at $5.00 per share at any time until November 30, 2005
as additional consideration for the acquisition of such rights.

 

ARTICLE VI

 

Conditions
Precedent to BAC’ Performance

 

6.1      Conditions.
BAC’ obligations hereunder shall be subject to the satisfaction at
or before the Closing of all the conditions set forth in this Article VI. BAC
may waive any or all of these conditions in whole or in part without prior
notice; provided, however, that no such waiver of a condition shall constitute
a waiver by BAC of any other condition of or any of BAC’ rights or remedies, at
law or in equity, if Newbridge shall be in default of any of its representations,
warranties or covenants under this Agreement.

 

6.2      Accuracy
of Representations. Except as otherwise permitted by this Agreement,
all representations and warranties by Newbridge in this Agreement or in any
written statement that shall be delivered to BAC by Newbridge under this
Agreement shall be true and accurate on and as of the Closing Date as though
made at that time.

 

6.3      Performance.
Newbridge shall have performed, satisfied and complied with all covenants,
agreements and conditions required by this Agreement to be performed or
complied with by it on or before the Closing Date.

 

8

 

6.4      Absence
of Litigation. No action, suit or proceeding before any court or any
governmental body or authority, pertaining to the transaction contemplated by
this Agreement or to its consummation, shall have been instituted or threatened
against Newbridge on or before the Closing Date.

 

6.5      Officer’s
Certificate. Newbridge shall have delivered to BAC a certificate
dated the Closing Date signed by the Chief Executive Officer of Newbridge
certifying that each of the conditions specified in this Article has been
fulfilled and that all of the representations set forth in Article III are
true and correct as of the Closing Date.

 

6.6      Directors
of Newbridge. On the Closing Date, the Board of Directors of Newbridge
shall elect the three directors of BAC to Newbridge’s Board of Directors and
shall themselves then resign as directors.

 

6.7      Officers
of Newbridge. On the Closing Date, the newly constituted Board of
Directors of Newbridge shall elect such officers of Newbridge as they shall
determine.

 

6.8      Corporate
Action.  Prior to the Closing
Date, Newbridge will take the corporate action described in Section 1.2,
above.

 

ARTICLE VII

 

Closing

 

7.1      Closing.
The Closing of this Agreement shall be held at the offices of Gary
A. Agron, at any mutually agreeable time and date (the “Closing Date”) prior to
November 30, 2002, unless extended by mutual agreement. At the Closing:

 

(a)                                                          BAC shall deliver to Newbridge copies of Exhibit 1.2
executed by all of the BAC Security Holders together with certificates
representing all outstanding BAC securities duly endorsed to Newbridge;

 

(b)                                                         Newbridge shall deliver to the BAC Security
Holders 2,750,000 shares of Newbridge’s common stock, for which the BAC Shares
have been exchanged, pursuant to the computations set forth in Exhibit 1.1
hereto and the common stock purchase warrants described in Section 5.8;

 

(c)                                                          Newbridge shall deliver (i) the officer’s
certificate described in Section 6.5 and (ii) a signed consent and/or
minutes of its directors approving this Agreement and each matter to be
approved under this Agreement;

 

(d)                                                         BAC shall deliver (i) the officer’s
certificate described in Section 5.5 and (ii) a signed consent and/or
minutes of its shareholders and directors

 

9

 

approving this Agreement and each matter to be
approved under this Agreement.

 

ARTICLE VIII

 

Covenants
Subsequent to the Closing Date

 

8.1      Registration
and Listing. Within 90 days following the Closing Date, the newly
constituted executive officers and directors of Newbridge shall close the
acquisition with Nutri Systems, Inc. described in Section 5.8 and
shall also use their best efforts to:

 

(a)                                                          List Newbridge’s common stock on the OTC
Bulletin Board and in Standard & Poor’s OTC or corporate manual;

 

(b)                                                         Maintain a continuous listing of Newbridge’s
common stock on the Electronic Bulletin Board.

 

ARTICLE IX

 

Miscellaneous

 

9.1      Captions and Headings.
The article and paragraph headings throughout this Agreement are for
convenience and reference only and shall not define, limit or add to the
meaning of any provision of this Agreement.

 

9.2      No Oral Change.
This Agreement and any provision hereof may not be waived, changed, modified or
discharged orally, but only by an agreement in writing signed by the party
against whom enforcement of any such waiver, change, modification, or discharge
is sought.

 

9.3      Non-Waiver. The
failure of any party to insist in any one or more cases upon the performance of
any of the provisions, covenants or conditions of this Agreement or to exercise
any option herein contained shall not be construed as a waiver or relinquishment
for the future of any such provisions, covenants or conditions. No waiver by
any party of one breach by another party shall be construed as a waiver with
respect to any other subsequent breach.

 

9.4      Time of Essence.
Time is of the essence of this Agreement and of each and every provision
hereof.

 

9.5      Entire Agreement.
This Agreement contains the entire Agreement and understanding between the
parties hereto and supersedes all prior agreements and understandings.

 

10

 

9.6      Choice of Law. This Agreement and its application shall be
governed by the laws of the state of Colorado.

 

9.7      Counterparts. This
Agreement may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

9.8      Notices. All
notices, requests, demands and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given on the date of service
if served personally on the party to whom notice is to be given, or on the
third day after mailing if mailed to the party to whom notice is to be given,
by first class mail, registered or certified, postage prepaid, and properly
addressed as follows:

 

Newbridge:

 

Newbridge Reorganization, Inc.

2560 W. Main Street, Suite 200

Littleton, Colorado 80120

Attn: James A. Eller, Secretary

 

BAC:

 

Beverage Acquisition Corporation

8005 Rappahannock Avenue

Jessup, Maryland 20794

Attn: William Albright, Chief Executive
Officer

 

9.9      Binding
Effect. This Agreement shall inure to and be binding upon the heirs,
executors, personal representatives, successors and assigns of each of the
parties to this Agreement.

 

9.10    Mutual Cooperation.
The parties hereto shall cooperate with each other to achieve the purpose of
this Agreement and shall execute such other and further documents and take such
other and further actions as may be necessary or convenient to effect the
transaction described herein.

 

9.11    Finders. There
are no finders in connection with this transaction.

 

9.12    Announcements. The
parties will consult and cooperate with each other as to the timing and content
of any public announcements regarding this Agreement.

 

9.13    Expenses. Each
party will bear their own expenses incurred in connection with this Agreement.

 

9.14    Survival of  Representations and Warranties. The
representations, warranties, covenants and agreements of the parties set forth
in this Agreement or in any instrument,

 

11

 

certificate, opinion or other writing providing for in it, shall
survive the Closing, including but not limited to the covenants set forth in Article VIII,
above, and this Article IX.

 

9.15    Exhibits. As of the execution hereof, the parties have provided
each other with the Exhibits described herein. Any material changes to the
Exhibits shall be immediately disclosed to the other party.

 

9.16    Legal  Counsel. Newbridge has been represented by
Gary A. Agron, Esq. in connection with this Agreement.   BAC has retained such counsel as it has
deemed appropriate to review this Agreement.

 

In witness whereof, the parties have executed this Agreement on the
date indicated above.

 

 

	
  NEWBRIDGE
  REORGANIZATION, INC.

  	
   

  	
  BEVERAGE
  ACQUISITION

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/
  Jack D. Kelley

  	
   

  	
   

  	
  By

  	
  /s/ William Albright

  	
   

  
	
   

  	
  Jack D. Kelley

  	
   

  	
   

  	
   

  	
  William Albright

  	
   

  
	
   

  	
  President

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  

 

12

 

EXHIBIT 1.1

 

SCHEDULE OF BAC COMMON
STOCKHOLDERS

AND

ALLOCATION OF NEWBRIDGE COMMON
SHARES

 

	
  Name of BAC

  Stockholder

  	
   

  	
  Number of BAC

  Shares Exchanged

  	
   

  	
  Number of Newbridge

  Common Shares

  To Be Issued

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  William Albright and

  Stephanie B. Albright

  	
   

  	
  2,000,000

  	
   

  	
  1,375,000

  
	
  Arsenal
  Holdings, Inc.

  	
   

  	
  2,000,000

  	
   

  	
  1,375,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
  4,000,000

  	
   

  	
  2,750,000

  

 

 

EXHIBIT 1.2

 

SUBSCRIPTION
AGREEMENT

 

In connection with my exchange of $.001 par value common stock of
Beverage Acquisition Corporation, Inc. (“BAC”), for the $.0001 par value
common stock of Newbridge Reorganization, Inc. (“Newbridge”), I
acknowledge the matters set forth below and promise that the statements made
herein are true. I understand that Newbridge is relying on my truthfulness in
issuing its securities to me.

 

I hereby represent and warrant to Newbridge that I have the full power
and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby. This Agreement is a legal, valid and
binding obligation of mine, enforceable against me in accordance with its
terms. I own the securities in BAC that I am exchanging for securities of
Newbridge free and clear of all pledges, liens, encumbrances, security
interests, equities, claims, options, preemptive rights, rights of first
refusal, or any other limitation on my ability to vote such securities or to
transfer such securities to Newbridge. I have full right, title and interest in
and to the BAC securities that I am exchanging.

 

I understand that Newbridge’s common stock (the “Securities) are being
issued to me in a private transaction in exchange for my securities in BAC and
in reliance upon the exemption provided in section 4(2) of the
Securities Act of 1933, as amended (the “Act”) for non-public offerings and
pursuant to the Agreement Concerning the Exchange of Securities between
Newbridge and BAC (“Agreement”). I understand that the Securities are “restricted”
under applicable securities laws and may not be sold by me except in a
registered offering (which may not ever occur) or in a private transaction like
this one. I know this is an illiquid investment and that therefore I may be
required to hold the Securities for an indefinite period of time, but under no
circumstances less than one year from the date of its issuance.

 

I am acquiring the Securities solely for my own account, for long-term
investment purposes only and not with a view to sale or other distribution. I
agree not to dispose of any Securities unless and until counsel for Newbridge
shall have determined that the intended disposition is permissible and does not
violate the Act, any applicable state securities laws or rules and
regulations promulgated thereunder.

 

All information, financial and otherwise, or documentation pertaining
to all aspects of my acquisition of the Securities and the activities and
financial information of Newbridge has been made available to me and my
representatives, if any, and I have had ample opportunity to meet with and ask
questions of senior officers of Newbridge, and I have received satisfactory
answers to any questions I asked.

 

 

In acquiring the Securities, I have reviewed the Agreement and have
made such independent investigations of Newbridge as I deemed appropriate. I am
an experienced investor, have made speculative investments in the past and am
capable of analyzing the merits of an investment in the Securities.

 

I understand that the Securities are highly speculative, involves a
great degree of risk and should only be acquired by individuals who can afford
to lose their entire investment. Nevertheless, I consider this a suitable investment
for me because I have adequate financial resources and income to maintain my
current standard of living even after my acquisition of the Securities. I know
that Newbridge is a “shell” company with no significant assets or liabilities,
its financial affairs can fluctuate dramatically from time to time, and that
although I could lose my entire investment, I am acquiring the Securities
because I believe the potential rewards are commensurate with the risk. Even if
the Securities became worthless, I could still maintain my standard of living
without significant hardship on me or my family.

 

By signing this Agreement, I also accept and agree to abide by the
terms and conditions of the Agreement as if I had executed the Agreement
itself.

 

Dated as of this       day of                     ,
2002.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name,
  Please Print

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Residence
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City,
  State and Zip Code

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Area
  Code and Telephone Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Social
  Security Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Number
  of BAC shares exchanged

  	
   

  

 

 

EXHIBIT 1.2

 

SUBSCRIPTION AGREEMENT

 

In connection, with my exchange of $.001 par value common stock of
Beverage Acquisition Corporation, Inc. (“BAC”), for the $.0001 par value
common stock of Newbridge Reorganization, Inc. (“Newbridge”), I acknowledge the
matters set forth below and promise that the statements made herein are true. I
understand that Newbridge is relying on my truthfulness in issuing its
securities to me.

 

I hereby represent and warrant to Newbridge that I have the full power
and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby. This Agreement is a legal, valid and
binding obligation of mine, enforceable against me in accordance with its
terms. I own the securities in BAC that I am exchanging for securities of
Newbridge free and clear of all pledges, liens, encumbrances, security
interests, equities, claims, options, preemptive rights, rights of first
refusal, or any other limitation on my ability to vote such securities or to
transfer such securities to Newbridge. I have full right, title and interest in
and to the BAC securities that I am exchanging.

 

I understand that Newbridge’s common stock (the “Securities) are being
issued to me in a private transaction in exchange for my securities in BAC and
in reliance upon the exemption provided in section 4(2) of the
Securities Act of 1933, as amended (the “Act”) for non-public offerings and
pursuant to the Agreement Concerning the Exchange of Securities between Newbridge
and BAC (“Agreement”). I understand that the Securities are “restricted” under
applicable securities laws and may not be sold by me except in a registered
offering (which may not ever occur) or in a private transaction like this one.
I know this is an illiquid investment and that therefore I may be required to
hold the Securities for an indefinite period of time, but under no
circumstances less than one year from the date of its issuance.

 

I am acquiring the Securities solely for my own account, for long-term
investment purposes only and not with a view to sale or other distribution. I
agree not to dispose of any Securities unless and until counsel for Newbridge
shall have determined that the intended disposition is permissible and does not
violate the Act, any applicable state securities laws or rules and
regulations promulgated thereunder.

 

All information, financial and otherwise, or documentation pertaining
to all aspects of my acquisition of the Securities and the activities and
financial information of Newbridge has been made available to me and my
representatives, if any, and I have had ample opportunity to meet with and ask
questions of senior officers of Newbridge, and I have received satisfactory
answers to any questions I asked.

 

In acquiring the Securities, I have reviewed the Agreement and have
made such independent investigations of Newbridge as I deemed appropriate. I am
an experienced investor, have made speculative investments in the past and am
capable of analyzing the merits of an investment in the Securities.

 

 

I understand that the Securities are highly speculative, involves a
great degree of risk and should only be acquired by individuals who can afford
to lose their entire investment. Nevertheless, I consider this a suitable investment
for me because I have adequate financial resources and income to maintain my current
standard of living even after my acquisition of the Securities. I know that
Newbridge is a “shell” company with no significant assets or liabilities, its
financial affairs can fluctuate dramatically from time to time, and that
although I could lose my entire investment, I am acquiring the Securities
because I believe the potential rewards are commensurate with the risk. Even if
the Securities became worthless, I could still maintain my standard of living
without significant hardship on me or my family.

 

By signing this Agreement, I also
accept and agree to abide by the terms and conditions of the Agreement as if I
had executed the Agreement itself.

 

Dated as of this     day of
          , 2002.

 

	
   

  	
  /s/
  William Gallagher

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William
  Gallagher

  	
   

  
	
   

  	
  Name,
  Please Print

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1250 NE LOOP 410 #339

  	
   

  
	
   

  	
  Residence
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SAN ANTONIO, TX 78209

  	
   

  
	
   

  	
  City,
  State and Zip Code

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  210-824-2496

  	
   

  
	
   

  	
  Area
  Code and Telephone Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ###-##-####

  	
   

  
	
   

  	
  Social
  Security Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Number
  of BAC shares exchanged

  	
   

  

 

 

 

	
  FACSIMILE
  TRANSMITTAL SHEET

  
	
   

  	
   

  	
   

  
	
  TO:

  Gary

  	
   

  	
  FROM:

  Ben Gallagher

  
	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
  DATE:

  
	
   

  	
   

  	
   

  
	
  FAX NUMBER:

  303.770.7257

  	
   

  	
  TOTAL NO. OF PAGES INCLUDING COVER:

  
	
   

  	
   

  	
   

  
	
  PHONE NUMBER:

  	
   

  	
  SENDERS REFERENCE NUMBER:

  
	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  COPY TO:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  o
  URGENT

  	
  ý
  FOR REVIEW

  	
  o
  PLEASE COMMENT

  	
  o
  PLEASE REPLY

  	
  o
  PLEASE RECYCLE

  
							

 

NOTES/COMMENTS

 

 

1250 N.E. Loop 410, Suite 335 -
San Antonio, Texas 78209 - (210) 824-2496 voice

(210) 824-3398 fax - (E-mail) jagcap@texas.net

 

 

EXHIBIT 1.2

 

SUBSCRIPTION
AGREEMENT

 

In connection with my exchange of $.001 par value common stock of
Beverage Acquisition Corporation, Inc. (“BAC”), for the $.0001 par value
common stock of Newbridge Reorganization, Inc. (“Newbridge”), I
acknowledge the matters set forth below and promise that the statements made
herein are true. I understand that Newbridge is relying on my truthfulness in
issuing its securities to me.

 

I hereby represent and warrant to Newbridge that I have the full power
and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby. This Agreement is a legal, valid and
binding obligation of mine, enforceable against me in accordance with its
terms. I own the securities in BAC that I am exchanging for securities of
Newbridge free and clear of all pledges, liens, encumbrances, security
interests, equities, claims, options, preemptive rights, rights of first
refusal, or any other limitation on my ability to vote such securities or to
transfer such securities to Newbridge. I have full right, title and interest in
and to the BAC securities that I am exchanging.

 

I understand that Newbridge’s common stock (the “Securities) are being
issued to me in a private transaction in exchange for my securities in BAC and
in reliance upon the exemption provided in section 4(2) of the
Securities Act of 1933, as amended (the “Act”) for non-public offerings and
pursuant to the Agreement Concerning the Exchange of Securities between
Newbridge and BAC (“Agreement”). I understand that the Securities are “restricted”
under applicable securities laws and may not be sold by me except in a
registered offering (which may not ever occur) or in a private transaction like
this one. I know this is an illiquid investment and that therefore I may be
required to hold the Securities for an indefinite period of time, but under no
circumstances less than one year from the date of its issuance.

 

I am acquiring the Securities solely for my own account, for long-term
investment purposes only and not with a view to sale or other distribution. I
agree not to dispose of any Securities unless and until counsel for Newbridge
shall have determined that the intended disposition is permissible and does not
violate the Act, any applicable state securities laws or rules and
regulations promulgated thereunder.

 

All information, financial and otherwise, or documentation pertaining
to all aspects of my acquisition of the Securities and the activities and
financial information of Newbridge has been made available to me and my
representatives, if any, and I have had ample opportunity to meet with and ask
questions of senior officers of Newbridge, and I have received satisfactory
answers to any questions I asked.

 

 

In acquiring the Securities, I have reviewed the Agreement and have
made such independent investigations of Newbridge as I deemed appropriate. I am
an experienced investor, have made speculative investments in the past and am
capable of analyzing the merits of an investment in the Securities.

 

I understand that the Securities are highly speculative, involves a
great degree of risk and should only be acquired by individuals who can afford
to lose their entire investment. Nevertheless, I consider this a suitable
investment for me because I have adequate financial resources and income to
maintain my current standard of living even after my acquisition of the
Securities. I know that Newbridge is a “shell” company with no significant
assets or liabilities, its financial affairs can fluctuate dramatically from
time to time, and that although I could lose my entire investment, I am
acquiring the Securities because I believe the potential rewards are
commensurate with the risk. Even if the Securities became worthless, I could
still maintain my standard of living without significant hardship on me or my
family.

 

By signing this Agreement, I also accept and agree to abide by the
terms and conditions of the Agreement as if I had executed the Agreement itself.

 

Dated as of this 14 day of November, 2002.

 

 

	
   

  	
  /s/
  William A. Albright Stephanie B. Albright

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William
  A. Albright Stephanie B. Albright

  	
   

  
	
   

  	
  Name,
  Please Print

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1880 Woodstock Rd.

  	
   

  
	
   

  	
  Residence
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Woodstock Md 21163

  	
   

  
	
   

  	
  City,
  State and Zip Code

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  443 745 4759

  	
   

  
	
   

  	
  Area
  Code and Telephone Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ###-##-####/###-##-####

  	
   

  
	
   

  	
  Social
  Security Number

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2,000,000

  	
   

  
	
   

  	
  Number
  of BAC shares exchanged

  	
   

  

 

 

NEW BRIDGE
REORGANIZATION CORP.

 

OFFICER'S CERTIFICATE

 

The undersigned, Jack D. Kelley, President of New Bridge Reorganization
Corp., herewith certifies pursuant to Section 6.5 of that certain
Agreement Concerning The Exchange Of Securities By And Among New Bridge
Reorganization Corp. And Beverage Acquisition Corporation And the Security
Holders of Beverage Acquisition Corporation (“Agreement”) that each of the
conditions specified in Article VI of the Agreement and all of the
representations set forth in Article III of the Agreement are true and correct as of this date.

 

 

	
   

  	
  NEW BRIDGE REORGANIZATION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jack D. Kelley

  	
   

  
	
   

  	
   

  	
  Jack D. Kelley, President

  	
   

  
	
   

  	
   

  
	
   

  	
  Date: November 18, 2002

  

 

 

BEVERAGE
ACQUISITION CORPORATION

OFFICER’S CERTIFICATE

 

The undersigned, William Albright, Chief Executive Officer of Beverage
Acquisition Corporation, herewith certifies pursuant to Section 5.5 of
that certain Agreement Concerning The Exchange Of Securities By And Among New
Bridge Reorganization
Corp. And Beverage Acquisition Corporation And the Security Holders of Beverage
Acquisition Corporation (“Agreement”) that each of the conditions specified in Article V
of the Agreement and all of the representations set forth in Article II of
the Agreement are true and correct as of this date.

 

 

	
   

  	
  BEVERAGE ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William Albright

  	
   

  
	
   

  	
   

  	
  William Albright, Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  Date: November 18, 2002

  

 

 

MINUTES OF
ACTION TAKEN

BY CONSENT OF
DOCTORS OF

NEW BBIDGE REORGANIZATION CORP.

a Nevada corporation

 

The undersigned, being all of the directors of New Bridge
Reorganization Corp., a Nevada corporation (the “Corporation”), hereby consent
to, vote in favor of, and adopt the following resolutions:

 

I.

APPROVAL OF
AGREEMENT

CONCERNING
THE EXCHANGE
OF SECURITIES

 

RESOLVED, that the terms and conditions of the Agreement Concerning the Exchange
of Securities (the “Exchange Agreement”) by and among Newbridge Reorganization, Inc.
and Beverage Acquisition Corporation and the Security Holders of Beverage
Acquisition Corporation, a Delaware corporation (“BAC”), a copy of which is
attached as Exhibit A and made a part hereof, are hereby
approved and ratified.

 

FURTHER RESOLVED, that the
appropriate officers of the Corporation are hereby authorized and directed to
take all actions and execute all documents, including but not limited to the
Exchange Agreement, necessary and advisable on behalf of the Corporation for
the Corporation to perform its obligations and complete the transaction as set forth in the Exchange
Agreement.

 

FURTHER RESOLVED, that all transactions contemplated by the
Exchange Agreement are hereby approved and the Corporation is authorized and
directed to issue 2,750,000 shares of fully paid and non-assessable
unregistered shares of the Corporation’s $,0001 par value common stock in
exchange for 4,000,000 issued and outstanding shares of the $.00l par value
common stock of BAC.

 

This Consent of Directors may be executed in counterparts, all of which
taken together shall constitute a single
instrument, and when signed by
all of the directors of the Corporation may be certified by any proper officer
of the Corporation has having unanimously been adopted by a vote of the
directors as of the effective date set forth below. A facsimile signature shall be deemed an original signature
for all purposes.

 

1

 

This Consent of Directors is executed effective November 15, 2002.

 

 

	
   

  	
  ALL
  MEMBERS OF THE BOARD OF DIRECTORS OF

  NEW BRIDGE REORGANIZATION CORP.

  a Nevada Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jack
  D. Kelley

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Derold
  L. Kelley

  
	
   

  	
   

  
	
   

  	
  /s/ James A. Eller

  	
   

  
	
   

  	
  James
  A. Eller

  

 

2

 

This Consent of Directors is executed
effective November 15, 2002.

 

 

	
   

  	
  ALL
  MEMBERS OF THE BOARD OF DIRECTORS OF

  NEW BRIDGE REORGANIZATION CORP.

  a Nevada Corporation

  
	
   

  	
   

  
	
   

  	
  /s/ Jack D. Kelley

  	
   

  
	
   

  	
  Jack
  D. Kelley

  
	
   

  	
   

  
	
   

  	
  /s/ Derold L. Kelley

  	
   

  
	
   

  	
  Derold
  L. Kelley

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  A. Eller

  

 

3

 

	
  INCORPORATED
  UNDER THE LAWS OF THE

  
	
   

  
	
  STATE
  OF DELAWARE

  
	
   

  
	
  NUMBER

  	
  SHARES

  
	
   

  	
   

  
	
   

  
	
  BEVERAGE
  ACQUISITION CORPORATION

  
	
   

  
	
  Authorized Common Shares

  	
   

  	
  50,000,000

  
	
   

  
	
  This Certifies that ARSENAL
  HOLDINGS, INC. is the registered holder of Two
  Million (2,000,000) Shares of the
  Common Stock of Beverage Acquisition Corporation

  
	
   

  
	
  transferable only on the books
  of the Corporation by the holder hereof in person or by Attorney upon
  surrender of this Certificate properly endorsed.

  
	
   

  
	
  In Witness Whereof, the said Corporation has caused this Certificate to be signed by its
  duly authorized officers and its Corporate Seal to be hereunto affixed

  
	
   

  	
  this 18th day of September aD
  2002

  
	
   

  
	
  /s/ William Gallagher

  	
   

  	
  /s/ William Albright

  
	
  William Gallagher,
  Secretary

  	
  William Albright,
  President

  
	
   

  
	
   

  
	
  SHARES

  	
  $.0001

  PAR VALUE

  	
  EACH

  
	
   

  
	
  CORPORATE EXPRESS
  BALTIMORE, MD.

  	
   

  
										

 

 

The securities
represented by this certificate have not been registered under the Securities
Act of 1933, as amended, under the Delaware Securities Act, or under the
securities acts of any other state or jurisdiction.  No sale, offer to sell or other transfer of
these securities may be made unless pursuant to an effective registration
statement, or unless in the opinion of counsel of the issuer, the proposed
disposition may be made pursuant to a valid exemption from the registration
provisions of those acts.

 

	
  CERTIFICATE

  
	
   

  
	
  FOR

  
	
  2,000,000

  
	
   

  
	
  SHARES

  
	
   

  
	
  of the

  
	
  Common
  Stock

  
	
  of

  
	
  BEVERAGE
  ACQUISITION

  
	
  CORPORATION

  
	
   

  
	
  ISSUED
  TO

  
	
   

  
	
  ARSENAL
  HOLDINGS, INC.

  
	
   

  
	
  DATED

  
	
   

  
	
  September, 2002

  
	
   

  
	
  For Value Received,
          hereby sell, assign and transfer
  unto
                                                                                                       
                                                                                                    Shares represented by the within Certificate, and do hereby
  irrevocably constitute and appoint Gary Agron Attorney to transfer the said Shares on the books of the within
  named Corporation with full power of substitution in the premises.

  
	 
	
  Dated

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
  In presence of

  	
  /s/ William Albright

  	
   

  	 

	 
	
   

  	
   

  	
  President

  	 

	 
	
   

  	
   

  	
   

  	
   

  	 

									

 

NOTICE. THE SIGNATURE OF THIS
ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE [ILLEGIBLE] OF THE
CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.

 

 

	
  INCORPORATED
  UNDER THE LAWS OF THE

  
	
   

  
	
  STATE
  OF DELAWARE

  
	
   

  
	
  NUMBER

  	
  SHARES

  
	
   

  	
   

  
	
   

  
	
  BEVERAGE
  ACQUISITION CORPORATION

  
	
   

  
	
  Authorized Common Shares

  	
   

  	
  50,000,000

  
	
   

  
	
  WILLIAM AND
  STEPHANIE B. ALBRIGHT

  
	
  This Certifies that as
  tenancy by the entirety is the registered holder
  of Two Million (2,000,000) Shares of the
  Common Stock of Beverage Acquisition Corporation

  
	
   

  
	
  transferable only on the books
  of the Corporation by the holder hereof in person or by Attorney upon
  surrender of this Certificate properly endorsed.

  
	
   

  
	
  In Witness Whereof, the said Corporation has caused this Certificate to be signed by its
  duly authorized officers and its Corporate Seal to be hereunto affixed

  
	
   

  	
  this 18th day of September aD
  2002

  
	
   

  
	
  /s/ William Gallagher

  	
   

  	
  /s/ William Albright

  
	
  William Gallagher,
  Secretary

  	
  William Albright,
  President

  
	
   

  
	
  SHARES

  	
  $.0001

  PAR VALUE

  	
  EACH

  
	
   

  
	
  CORPORATE EXPRESS
  BALTIMORE, MD.

  	
   

  
										

 

 

The securities
represented by this certificate have not been registered under the Securities
Act of 1933, as amended, under the Delaware Securities Act, or under the
securities acts of any other state or jurisdiction.  No sale, offer to sell or other transfer of
these securities may be made unless pursuant to an effective registration
statement, or unless in the opinion of counsel of the issuer, the proposed
disposition may be made pursuant to a valid exemption from the registration
provisions of those acts.

 

	
  CERTIFICATE

  
	
   

  
	
  FOR

  
	
  2,000,000

  
	
   

  
	
  SHARES

  
	
   

  
	
  of the

  
	
  Common
  Stock

  
	
  Of

  
	
  BEVERAGE
  ACQUISITION

  
	
  CORPORATION

  
	
   

  
	
  ISSUED
  TO

  
	
  William and Stephanie
  B. Albright

  
	
  as tenancy by
  the entirety

  
	
   

  
	
  DATED

  
	
   

  
	
  September, 2002

  
	
   

  
	
  For Value Received,
          hereby sell, assign and transfer
  unto
                                                                                                             
                                                                                                    Shares
  represented by the within Certificate, and do hereby irrevocably constitute
  and appoint Gary
  Agron Attorney to transfer
  the said Shares on the books of the within named Corporation with full power
  of substitution in the premises.

  
	
  Dated

  	
  November 19

  	
   

  	
     2002

  	
   

  	 

	
   

  	
  In presence of

  	
  /s/ Stephanie B.
  Albright

  	
   

  	 

	
   

  	
  /s/ 

  	
   

  	
  Stephanie B. Albright

  	 

								

 

NOTICE. THE SIGNATURE OF THIS ASSIGNMENT
MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE [ILLEGIBLE] OF THE
CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.Exhibit 10.2

 

AMENDMENT NUMBER I to

ASSET PURCHASE AGREEMENT

 

This AMENDMENT
NUMBER 1 (this “Amendment”) to the ASSET PURCHASE AGREEMENT, dated as of
October 10, 2002 (the “Agreement”), by and between Nutri/System, Inc., a
Delaware corporation (“Seller”), and Beverage Acquisition Corporation, a
Delaware corporation (“Buyer”) is made
as of the 24th day of December, 2002. Capitalized terms used herein
and not otherwise defined have the meanings ascribed to such terms in the
Agreement.

 

1.             Amendment
to Section 2.3. Section 2.3 of the Agreement is hereby amended by deleting
Section 2.3 in its entirety and replacing it with the
following:

 

“2.3 Purchase Price. As consideration for Seller’s
sale, transfer, assignment, conveyance and delivery of the Purchased Assets
hereunder Buyer shall deliver to Seller the Purchase Price, consisting of:

 

(a)   One
Hundred Fifty Thousand Dollars ($150,000) in cash at Closing;

 

(b)   A
promissory note (the “Promissory Note”) with an initial principal amount of Fifty
Thousand Dollars ($50,000), bearing interest at the rate of 8% and payable on
March 24, 2003.

 

(c)   Additional
cash in the form of a deferred payment equal to 1% of the Net Sales, payable to Seller quarterly on
sales generated in the 19th through 36th month after Initial
Rollout, paid on a quarterly basis within 30 days of each fiscal quarter end.

 

(d)   Buyer
Common Stock Purchase Warrant
Agreement.

 

The value of the Purchase
Price shall be allocated among the Purchased Assets in the manner required by
Section 1060 of the Code and regulation thereunder. Buyer and Seller mutually
agree to allocate the Purchase Price to intangible assets. Buyer and Seller
agree to each prepare and file on a timely basis with the Internal Revenue
Service substantially identical and supplemental Internal Revenue Service Forms
8594 ‘Asset Acquisition Statements Under Section 1060.’”

 

2.             Amendment
to Section 3.2(b). Section 3.2(b) of the Agreement is hereby amended by
deleting Section 3.2(b) in its entirety and replacing it with the following:

 

“(b) Buyer’s Deliveries. At the Closing, Buyer shall
execute and deliver to Seller or Seller’s Affiliates;

 

(i)            One
Hundred Fifty Thousand Dollars ($150,000) in cash;

 

 

(ii)           the Promissory Note;

 

(iii)          the Buyer Common Stock Purchase Warrant;

 

(iv)          UCC-1
Financing Statement;

 

(v)           Trademark
Assignment

 

(vi)          certificate of corporate good standing of Buyer dated not
more than tea (10) days prior to the Closing Date;

 

(vii)         a
certificate by the Secretary of Buyer stating that this Agreement and the
transactions contemplated thereby have been approved by its Board of Directors
and shareholders, if necessary, together with a certified copy of resolutions
evidencing such approvals; and

 

(viii)        the consents, certificates and other documents required by
Article VII in form reasonably satisfactory to Seller.”

 

3.             Buyer
Common Stock Purchase Agreement. Buyer and Seller acknowledge that the “Buyer
Common Stock Purchase Agreement” shall mean a purchase warrant entitling the
holder to purchase 200,000 shares of common stock of Sweet Success Enterprises,
Inc., a Nevada corporation, at a price of $5.00 per share in substantially the
form attached to the Agreement as Exhibit D.

 

4.             Accredited
Investor. Seller represents and warrants to Buyer that it is an “accredited
investor” as defined in Rule 501 promulgated under the Securities Act of 1933,
as amended.

 

5.             Limited
Amendment. Except as amended by this Amendment and as the context may otherwise
require to give
effect to the intent and purposes of this Amendment, the Agreement shall remain
in full force and effect without any other amendments or modifications.

 

6.             Counterparts.
This Amendment be executed in any number of counterparts,
each of which shall be an original with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

7.             Entire
Agreement. This Amendment, together with the Agreement, and the exhibits and
schedules thereto, is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject
matter contained herein and therein. There are
no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein or therein. 
This Amendment, together with the Agreement, and the exhibits and schedules thereto, supersede all prior agreements
and understandings between the parties with respect to such subject matter.

 

 

8.             Incorporation
by Reference. Sections 1l.2, 11.3, 11.4, 11.5, 11.8, 11.9 and 11.10 of the
Agreement are incorporated herein by reference as if included herein.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers, as of
the date first above written.

 

 

	
   

  	
  NUTRI/SYSTEM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James D Brown

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  James D Brown

  
	
   

  	
   

  	
  Title:

  	
  CFO

  
					

 

 

	
   

  	
  BEVERAGE ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ William
  Albright

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  William Albright

  
	
   

  	
   

  	
  Title:

  	
  President

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