EXHIBIT 10.8

 

CONTRIBUTION AND EXCHANGE AGREEMENT

 

This Contribution and Exchange Agreement, dated as of November 23, 2004 (the
“Agreement”), is entered into by and among the institutional stockholders listed
on Schedule I hereto (the “Stockholders”) and Eagle Family Foods Holdings, Inc.,
a Delaware corporation (the “Company”).

 

R E C I T A L S

 

WHEREAS, pursuant to the Amended and Restated Certificate of Incorporation of
the Company, the Company is authorized to issue 2,200,000 shares of capital
stock, which consists of (i) 1,200,000 shares of common stock, par value $0.01
per share (“Common Stock”), and (ii) 1,000,000 shares of Preferred Stock, of
which (a) 816,750 shares have been designated as Series A Preferred Stock, par
value $0.01 per share (“Series A Preferred”) and (b) 99 shares have been
designated as Series B Preferred Stock, par value $0.01 per share (“Series B
Preferred” and, together with the Series A Preferred, the “Preferred Stock”);

 

WHEREAS, the Stockholders are the owners of the number of shares of Common
Stock, Series A Preferred and Series B Preferred set forth opposite such
Stockholders’ names on Schedule II hereto (collectively, the “Shares”),
representing all of the Shares owned by the Stockholders;

 

WHEREAS, the Stockholders desire to contribute to the Company, and the Company
desires to accept from the Stockholders, the Shares owned by them as a
contribution to capital (the “Contribution”), in exchange (the “Exchange”) for
the issuance to the Stockholders of the number of shares of Common Stock set
forth opposite such Stockholder’s name on Schedule III hereto (collectively, the
“New Shares”); and

 

WHEREAS, contemporaneously with the transactions contemplated by this Agreement,
the Company shall (i) amend and restate the Company’s certificate of
incorporation, among other things, to increase the number of authorized shares
of Common Stock and create a new series of preferred stock (the “Series I
Preferred Stock”), (ii) issue 1,048,091 shares of Common Stock and 150 shares of
Series I Preferred Stock to Dairy Farmers of America Inc. (“DFA”) pursuant to
that certain Asset Purchase Agreement, dated as of the date hereof, between the
Company and DFA (the “New Equity Investment”), (iv) exchange all of the
Preferred Stock and Common Stock owned by a certain management stockholder in
exchange for the issuance of new shares of Common Stock (the “Management
Repurchase”);

 

NOW, THEREFORE, in consideration of the premises and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, agree as follows:

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ARTICLE I.

CONTRIBUTION AND EXCHANGE

 

Section 1.1. Contribution. Effective as of the date hereof, each of the
Stockholders hereby contributes, transfers, assigns and conveys to the Company
all right, title and interest in and to all of the Shares owned by such
Stockholder, which Shares are set forth opposite such Stockholder’s name on
Schedule II hereto, together with any and all rights, privileges, benefits,
obligations and liabilities appertaining thereto, reserving unto such
Stockholder no rights or interests therein whatsoever, to have and to hold the
same unto the Company and its heirs, legal representatives, successors and
assigns, from and after the date hereof to its own proper use forever. Each
Stockholder shall deliver all stock powers and other instruments of transfer
necessary to effect the Contribution.

 

Section 1.2. Acceptance of Contribution. The Company hereby accepts the
Contribution of the Shares pursuant to Section 1.1 above.

 

Section 1.3. Exchange. In consideration of the Contribution by the Stockholders,
effective as of the date hereof, in exchange for the Shares the Company shall
issue to the Stockholders the number of New Shares set forth opposite such
Stockholder’s name on Schedule III hereto. At anytime after the date hereof and
at the request of the Stockholder, the Company shall issue to such Stockholder
certificates registered in the Stockholder’s name representing the number of New
Shares set forth opposite such Stockholder’s name on Schedule III hereto.

 

Section 1.4. Termination of Warrants. The Company and each of the Stockholders
hereby agree that all warrants to purchase shares of Common Stock owned by such
Stockholders are hereby terminated and shall be of no further force and effect.

 

Section 1.5. Power of Attorney. Each Stockholder hereby constitutes and appoints
the Company, its successors and assigns, as the Stockholder’s true and lawful
attorney-in-fact, with full power of substitution, in the name of the Company or
in the name of the Stockholder, to execute, deliver, file and/or record such
documents, agreements and instruments as shall be necessary or appropriate to
effect the Contributions pursuant to this Article I. The foregoing powers are
coupled with an interest and shall be irrevocable.

 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to each of the Stockholders as follows:

 

Section 2.1. Organization. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware.

 

Section 2.2. Authority. The Company has all requisite corporate power and
authority to execute, deliver and perform this Agreement and the transactions
contemplated hereby, including, without limitation, the issuance and delivery of
the New Shares to the Stockholders in accordance with the terms of this
Agreement. No other corporate action is

 

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necessary to authorize such execution, delivery and performance other than
corporate actions already taken, and upon such execution and delivery, this
Agreement shall constitute a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as
enforceability may be (i) limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditor’s rights, or (ii) subject to general
principles of equity.

 

Section 2.3. Outstanding Capital Stock of the Company. Immediately prior to the
consummation of the transactions contemplated by the Agreement and consummation
of the New Equity Investment and the Management Repurchase, the issued and
outstanding capital stock of the Company in the amounts held beneficially and of
record is as set forth on Schedule IV hereto. Immediately following consummation
of the transactions contemplated by this Agreement and consummation of the New
Equity Investment, and the Management Repurchase, the issued and outstanding
capital stock of the Company in the amounts held beneficially and of record
shall be as set forth on Schedule V hereto.

 

Section 2.4. Issuance of Shares. The New Shares to be issued by the Company
pursuant to this Agreement, when issued in accordance with the provisions
hereof, will be validly issued by the Company, fully paid and nonassessable
shares of the Company, and, no stockholder of the Company has, or will have, any
preemptive rights to subscribe for any such New Shares other than rights which
have been waived.

 

Section 2.5. Consents; Conflicts. Except with respect to filings made in
connection with exemptions from registration under state or federal securities
laws, the creation, authorization, issuance, offer and sale of the New Shares do
not require any consent, approval or authorization of, or filing, registration
or qualification with, any Person or governmental authority on the part of the
Company or the vote, consent or approval in any manner of the holders of any
security of the Company as a condition to the execution and delivery of this
Agreement or the creation, authorization, issuance, offer and sale of the New
Shares. The execution and delivery by the Company of this Agreement and the
performance by the Company of its obligations hereunder will not violate (i) the
terms and conditions of the Restated Certificate of Incorporation or the Bylaws
of the Company, or any agreement or instrument to which the Company is a party
or by which it is bound or (ii) subject to the accuracy of the Stockholders’
representations and warranties contained herein, including, without limitation,
the representations and warranties contained in Section 3.3 hereof, any federal
or state law.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

 

Each of the Stockholders, severally and not jointly, represents and warrants to
the Company as follows:

 

Section 3.1. Title to Securities. The Stockholder is the owner and holder of the
respective number of shares of Common Stock and Preferred Stock set forth
opposite such Stockholder’s name on Schedule II hereto and has good and valid
title to such Common Stock and Preferred Stock, free and clear of all liens,
security interests, claims, charges, equities, pledges, options and encumbrances
of any kind.

 

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Section 3.2. Authority. The Stockholder has full right, power and authority to
contribute, transfer, assign and convey to the Company the full legal and
beneficial ownership in the Shares to be surrendered by such Stockholder
pursuant to this Agreement and to consummate the transactions contemplated
herein. This Agreement has been duly and validly executed and delivered by the
Stockholder and is a legal, valid and binding obligation of such Stockholder
enforceable in accordance with its terms, except as enforceability may be (i)
limited by bankruptcy, insolvency or other similar laws affecting the
enforcement of creditor’s rights, or (ii) subject to general principles of
equity. Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby nor compliance with any of
the provisions hereof will (a) result in any conflict with, breach of, or
default (or give rise to any right of termination, cancellation or acceleration)
under any of the terms, conditions or provisions of any agreement or other
instrument or obligation to which such Stockholder is a party or by which such
Stockholder or any of such Stockholder’s properties or assets may be bound, or
(b) violate any order, writ, injunction, judgment, decree, law, statute, rule or
regulation applicable to such Stockholder or any of such Stockholder’s
properties or assets. No action, consent or approval by, or filing with, any
Federal, state, municipal, foreign or other court or governmental or
administrative body or agency, or any other regulatory or self-regulatory body,
is required in connection with the execution and delivery by the Stockholder of
this Agreement or the consummation by such Stockholder of the transactions
contemplated hereby.

 

Section 3.3. Accredited Investor.

 

(a) Offering Exemption. Each Stockholder acknowledges that the New Shares have
not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), nor registered or qualified under any state securities laws,
and that they are being offered and sold pursuant to an exemption from such
registration and qualification based in part upon such Stockholder’s
representations contained herein.

 

(b) Knowledge of Offer. Each Stockholder is familiar with the business and
operations of the Company and has been given the opportunity to obtain from the
Company all information that such Stockholder has requested regarding its
business plans and prospects.

 

(c) Knowledge and Experience; Ability to Bear Economic Risks. Each Stockholder
has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the investment contemplated by
this Agreement, and is able to bear the economic risk of this investment in the
Company (including a complete loss of the value of the New Shares).

 

(d) Limitations on Disposition. Each Stockholder recognizes that no public
market exists for the New Shares, and none may exist in the future. Each
Stockholder acknowledges that it must bear the economic risk of this investment
indefinitely unless such Stockholder’s New Shares are registered pursuant to the
Securities Act, or an exemption from such registration is available, and unless
the disposition of such New Shares is qualified or registered under applicable
state securities laws or an exemption from such qualification or registration is
available, and that the Company has no present intention of so registering the
New Shares. Each Stockholder acknowledges that there is no assurance that any
exemption from the

 

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Securities Act will be available, or, if available, that such exemption will
allow such Stockholder to transfer any or all of the New Shares, in the amounts,
or at the times such Stockholder might propose. Each Stockholder acknowledges
that at the present time Rule 144 promulgated under the Securities Act by the
Securities and Exchange Commission is not applicable to sales of the New Shares.

 

(e) Accredited Investor. Each Stockholder is an “accredited investor” as such
term is defined in Rule 501(a) promulgated under the Securities Act.

 

Section 3.4. Capacity. The Stockholder has full power and legal right to execute
and deliver this Agreement and to perform such Stockholder’s obligations
hereunder.

 

ARTICLE IV.

COVENANTS OF THE PARTIES

 

Section 4.1. Further Assurances. Each Stockholder will execute and deliver, or
cause to be executed and delivered, such additional or further transfers,
assignments, endorsements and other instruments as the Company may reasonably
request for the purpose of effectively carrying out the transfer of the Shares
and the other transactions contemplated by this Agreement.

 

ARTICLE V.

MISCELLANEOUS PROVISIONS

 

Section 5.1. Notices. All communications under this Agreement shall be in
writing and shall be delivered by hand or facsimile or mailed by overnight
courier or by registered mail or certified mail, postage prepaid:

 

(a) if to the Stockholders, at the address or facsimile number listed on
Schedule I hereto, or at such other address or facsimile number as may have been
furnished to the Company and the other Stockholders in writing, with a copy to
Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, NY 10019 (facsimile:
(212) 728-9222), Attention: Steven J. Gartner, Esq.;

 

(b) if to the Company, at 735 Taylor Road, Suite 200, Gahanna, OH 43230
(facsimile: (614) 501-4299), marked for attention of Chief Executive Officer, or
at such other address or facsimile as the Company may have furnished in writing
to each of the Stockholders.

 

Any notice so addressed shall be deemed to be given: if delivered by hand or
facsimile, on the date of such delivery, if a business day and delivered during
regular business hours, otherwise the first business day thereafter; if mailed
by courier, on the first business day following the date of such mailing; and if
mailed by registered or certified mail, on the third business day after the date
of such mailing.

 

Section 5.2. Amendments. The terms, provisions and conditions of this Agreement
may not be changed, modified or amended in any manner except by an instrument in
writing duly executed by the Company and each of the Stockholders.

 

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Section 5.3. Assignment; Parties in Interest.

 

(a) Assignment. Neither this Agreement nor any of the rights, duties, or
obligations of any party hereunder may be assigned or delegated by any party
hereto except with the prior written consent of the Company and each of the
Stockholders.

 

(b) Parties in Interest. This Agreement shall not confer any rights or remedies
upon any Person other than the parties hereto and their respective permitted
successors and assigns.

 

Section 5.4. Expenses. All fees, costs and expenses incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such fees, costs and expenses. The Company shall pay any
liabilities (including interest and penalties) with respect to, or resulting
from any delay or failure, in paying, stamp and other taxes, if any, which may
be payable or determined to be payable on the execution and delivery of this
Agreement or acquisition of the New Shares pursuant to this Agreement.

 

Section 5.5. Entire Agreement. This Agreement constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof, supersedes
and is in full substitution for any and all prior agreements and understandings
among them relating to such subject matter, and no party shall be liable or
bound to the other party hereto in any manner with respect to such subject
matter by any warranties, representations, indemnities, covenants or agreements
except as specifically set forth herein. The Schedules to this Agreement are
incorporated herein and made a part hereof and are an integral part of this
Agreement.

 

Section 5.6. Descriptive Headings. The descriptive headings of the several
sections (including subsections) of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the
provisions hereof.

 

Section 5.7. Counterparts. For the convenience of the parties, any number of
counterparts of this Agreement may be executed by any one or more parties hereto
(including by facsimile), and each such executed counterpart shall be, and shall
be deemed to be, an original, but all of which shall constitute, and shall be
deemed to constitute, in the aggregate but one and the same instrument.

 

Section 5.8. Governing Law. This Agreement and the legal relations among the
parties hereto shall be governed by and construed in accordance with the laws of
the State of Delaware, applicable to contracts made and performed therein.

 

Section 5.9. Construction. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no
rule of strict construction will be applied against any party.

 

Section 5.10. Severability. In the event that any one or more of the provisions
contained in this Agreement or in any other instrument referred to herein,
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, then to the maximum extent permitted by law, such invalidity,
illegality or unenforceability shall not affect any other

 

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provision of this Agreement or any other such instrument. Furthermore, in lieu
of any such invalid, illegal or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid, illegal or unenforceable provision as may
be possible and be valid, legal and enforceable.

 

Section 5.11. Specific Performance. Without limiting or waiving in any respect
any rights or remedies of any party under this Agreement now or hereinafter
existing at law or in equity or by statute, each of the parties hereto shall be
entitled to seek specific performance of the obligations to be performed by the
other in accordance with the provisions of this Agreement.

 

Section 5.12. Survival of Provisions. The respective representations,
warranties, covenants and agreements of each of the parties to this Agreement
shall survive the execution of this Agreement and the consummation of the
transactions contemplated by this Agreement.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the day and year first above written.

 

EAGLE FAMILY FOODS HOLDINGS, INC.

By:

 

/s/ Craig Steinke

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Name:

  Craig A. Steinke

Title:

  Chief Executive Officer and President

WARBURG, PINCUS VENTURES, L.P.

By:

  Warburg Pincus & Co.,     General Partner

By:

 

/s/ David Barr

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Name:

  David Barr

Title:

  Managing Director GE INVESTMENT PRIVATE PLACEMENT PARTNERS II, A LIMITED
PARTNERSHIP

By:

  GE Investment Management Incorporated,     General Partner

By:

 

/s/ Andreas Hildebrand

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Name:

  Andreas Hildebrand

Title:

  Vice President

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SCHEDULE I

 

STOCKHOLDERS

 

        Stockholder’s Name and Address

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Warburg, Pincus Ventures, L.P.

c/o Warburg Pincus & Co.

466 Lexington Avenue

New York, NY 10017

Facsimile: (212) 878-3748

Attention: Kewsong Lee

 

GE Investment Private Placement Partners II,

a Limited Partnership

3003 Summer Street

Stamford, CT 06905

Facsimile: (203) 326-2495

Attention: Andreas Hildebrand

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SCHEDULE II

 

OWNERSHIP OF COMMON STOCK AND PREFERRED STOCK

 

Stockholder

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   Common
Stock

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   Series A
Preferred

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   Series B
Preferred

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Warburg, Pincus Ventures, L.P.

   458,200    402,398.7735    49.5

GE Investment Private Placement Partners II, a Limited Partnership

   458,200    402,398.7735    49.5

 

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SCHEDULE III

 

OWNERSHIP OF NEW SHARES

 

Stockholder

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New Shares

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Warburg, Pincus Ventures, L.P.

  621,542.50

GE Investment Private Placement Partners II, a Limited Partnership

  621,542.50

 

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SCHEDULE IV

 

PRE-TRANSACTION CAPITALIZATION

 

Stockholder

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   Common
Stock

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   Series A
Preferred

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   Series B
Preferred

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Warburg, Pincus Ventures, L.P.

   458,200    402,398.7735    49.5

GE Investment Private Placement Partners II, a Limited Partnership

   458,200    402,398.7735    49.5

Craig A. Steinke

   40,835    990.0000    —  

 

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SCHEDULE V

 

POST-TRANSACTION CAPITALIZATION

 

Stockholder

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   Common
Stock

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   Series I
Preferred

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Warburg, Pincus Ventures, L.P.

   621,542.50    —  

GE Investment Private Placement Partners II, a Limited Partnership

   621,542.50    —  

Dairy Farmers of America Inc.

   1,048,091.00    —  

Mid-Am Capital, L.L.C.

   —      150

Craig A. Steinke

   95,547.00    —