Document:

Exhibit 10.18

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT, dated as
of the Effective Date, by and between B&G FOODS, INC.,  (hereinafter “Corporation”) and James Brown
(hereinafter “Brown”).

 

WHEREAS, subject to the
terms of this Agreement, Corporation desires to secure the services of Brown
for two (2) years as Executive Vice President of Operations (hereinafter
“Executive Vice President of Operations”), and Brown desires to accept such
employment.

 

NOW THEREFORE, in
consideration of the material advantages accruing to the two parties and the
mutual covenants contained herein, Corporation and Brown agree with each other
as follows:

 

1.                                       EFFECTIVE
DATE.  For purposes of this
Agreement, the “Effective Date” shall mean the date of the closing of the
Corporation’s initial public offering of the “Enhanced Income Securities” as
described in the final prospectus to be filed with the Securities Exchange
Commission by the Corporation (the “Offering”).  In the event that the Offering shall not have closed on or prior
to June 30, 2004, then there shall be no Effective Date and this Agreement
shall terminate automatically on such date and be null and void and of no force
or effect.

 

2.                                       EMPLOYMENT.
Brown will render full-time professional services to Corporation and, as
directed by Corporation, to its subsidiaries or other Affiliates (as defined in
Paragraph 3 below), in the capacity of Executive Vice President of Operations
under the terms and conditions of this Agreement.  He will at all times, faithfully, industriously and to the best
of his ability, perform all duties that may be required of him by virtue of his
position as Executive Vice President of Operations and in accordance with the
directions and mandates of the Board of Directors of the Corporation.  It is understood that these duties shall be
substantially the same as

 

 

those of an
executive vice president of operations of a similar business corporation
engaged in a similar enterprise. Brown is hereby vested with authority to act
on  behalf of the Corporation in keeping
with policies adopted by the Board of Directors, as amended from time to
time.  Brown shall report to the Chief
Executive Officer and the Board of Directors.

 

3.                                       SERVICES
TO SUBSIDIARIES OR OTHER AFFILIATES. The Corporation and Brown understand
and agree that if and when the Corporation so directs, the Executive Vice
President of Operations shall also provide services to any subsidiary or other
Affiliate (as defined below) by virtue of his employment under this Agreement.  If so directed, Brown agrees to serve as
Executive Vice President of Operations of such subsidiary or other Affiliate,
including, but not limited to, the parent corporation of the Corporation, as a
condition of his employment under this Agreement, and upon the termination of
his employment under this Agreement, Brown shall no longer provide such
services to the subsidiary or other Affiliate. The parties recognize and agree
that Brown shall perform such services as part of his overall professional
services to the Corporation but that in certain circumstances approved by the
Corporation he may receive additional compensation from such subsidiary or
other Affiliate.  For purposes of this
Agreement, an “Affiliate” is any corporation or other entity that is controlled
by, controlling or under common control with the Corporation. “Control” means
the direct or indirect beneficial ownership of at least fifty (50%) percent
interest in the income of such corporation or entity, or the power to elect at
least fifty (50%) percent of the directors of such corporation or entity, or
such other relationship which in fact constitutes actual control.

 

4.                                       TERM
OF AGREEMENT. The term of Brown’s employment under this Agreement shall be
two (2) years from the Effective Date; provided that unless notice of

 

2

 

termination
has been provided in accordance with Paragraph 7(a) at least sixty (60) days
prior to the expiration of the initial two (2) year term or any additional
twelve (12) month term (as provided below), or unless this Agreement is
otherwise terminated, this Agreement shall automatically be extended for
additional twelve (12) month periods (the “Term”).

 

5.                                       BASE
COMPENSATION. During the Term, in consideration for the services as
Executive Vice President of Operations required under this Agreement, the
Corporation agrees to pay Brown an annual base salary of Two Hundred and Eight
Thousand Dollars ($208,000), or such higher figure as may be determined at an
annual review of his performance and compensation by the Executive Compensation
Subcommittee of the Board of Directors. 
The annual review of Brown’s base salary shall be conducted by the
Executive Compensation Subcommittee of the Corporation within a reasonable time
after the end of each fiscal year of the Corporation and any increase shall be
retroactive to January 1st of the current Agreement year. The amount of
annual base salary shall be payable in equal installments consistent with the
Corporation’s payroll payment schedule for other employees of the
Corporation. Brown may choose to select a portion of his compensation to be
paid as deferred income through qualified plans or other programs consistent
with the policy of the Corporation and subject to any and all applicable
federal, state or local laws, rules or regulations.

 

6.                                       OTHER
COMPENSATION AND BENEFITS. During the Term, in addition to his base salary,
the Corporation shall provide Brown the following:

 

(a)                                  INCENTIVE
COMPENSATION. Brown shall participate in an annual incentive compensation
plan (the “Incentive Compensation Plan”), as shall be adopted and/or modified
from time to time by the Board of Directors. Incentive compensation awards are
calculated as a

 

3

 

percentage of
Brown’s base salary on the last day of the Incentive Compensation Plan
performance period. The percentages of base salary that Brown is eligible to
receive based on performance are 35 % at “Threshold” and 70 % at “Target”, as
such terms are defined in the Incentive Compensation Plan. Incentive
compensation awards are payable no later than ninety (90) days following the
end of each fiscal year of the Corporation. 
In addition, Brown shall be eligible to participate in the Corporation’s
2004 Long-Term Incentive Plan.

 

(b)                                 VACATION.
Brown shall be entitled to four (4) weeks of compensated vacation time during
each year, to be taken at times mutually agreed upon between him and the Chief
Executive Officer of the Corporation. 
Vacation accrual shall be limited to the amount stated in the
Corporation’s policies currently in effect, as amended from time to time.

 

(c)                                  SICK
LEAVE AND DISABILITY. Brown shall be entitled to participate in such
compensated sick leave and disability benefit programs as are offered to
Corporation’s other executive employees. The Corporation shall also pay for an
individual disability policy for Brown on the same terms as that provided to
Brown by the Corporation as of the date of this Agreement.

 

(d)                                 MEDICAL
AND DENTAL INSURANCE. Brown, and if appropriate, his dependents, shall be
entitled to participate in such medical and dental insurance programs as are
provided to the Corporation’s other executive employees.

 

(e)                                  EXECUTIVE
BENEFITS AND PERQUISITES. Brown shall be entitled to receive all other
executive benefits and perquisites to which all other executive employees of
the Corporation are entitled.

 

4

 

(f)                                    AUTOMOBILE
AND CELLULAR PHONE. The Corporation agrees to provide, either directly or
through a monetary allowance, for the use by Brown of an automobile and
cellular telephone.  The selection of
said automobile, or alternatively, the amount of the car allowance that will
allow Brown to purchase or lease an automobile, shall be subject to approval by
the Chief Executive Officer of the Corporation.

 

(g)                                 LIABILITY
INSURANCE. The Corporation agrees to insure Brown under the appropriate
liability insurance policies, in accordance with the Corporation’s policies and
procedures, for all acts done by him within the scope of his authority in good
faith as Executive Vice President of Operations throughout the Term.

 

(h)                                 PROFESSIONAL
MEETINGS AND CONFERENCES. In addition, Brown will be permitted to be absent
from the Corporation’s facilities during working days to attend professional
meetings and to attend to such outside professional duties in the food industry
as have been mutually agreed upon between him and the Chief Executive Officer
of the Corporation.  Attendance at such
approved meetings and accomplishment of approved professional duties shall be
fully compensated service time and shall not be considered vacation time. The
Corporation shall reimburse Brown for all reasonable expenses incurred by him
incident to attendance at approved professional meetings, and such reasonable
entertainment expenses incurred by Brown in furtherance of the Corporation’s
interests; provided, however, that such reimbursement is approved by the Chief
Executive Officer of the Corporation.

 

(i)                                     PROFESSIONAL
DUES. The Corporation agrees to pay dues and expenses to professional
associations and societies and to such community and service organizations of

 

5

 

which Brown is
a member provided such dues and expenses are approved by the Chief Executive
Officer as being in the best interests of the Corporation.

 

(j)                                     LIFE
INSURANCE. The Corporation shall provide Brown with life insurance coverage
on the same terms as that provided to Brown by the Corporation as of the date
of this Agreement and proceeds of such coverage in the event of his death shall
be payable to a beneficiary designated by Brown.

 

(k)                                  BUSINESS
EXPENSES. The Corporation shall reimburse for reasonable expenses incurred
by the Executive Vice President of Operations in connection with the conduct of
business of the Corporation and its subsidiaries or other Affiliates.

 

7.                                       TERMINATION
WITHOUT CAUSE.

 

(a)                                  BY
THE CORPORATION. The Corporation may, in its discretion, terminate Brown’s
employment hereunder without cause at any time upon sixty  (60) days prior written notice or at such
later time as may be specified in said notice. 
Except as otherwise provided in this Agreement, after such termination,
all rights, duties and obligations of both parties shall cease.

 

(i)                                     Upon
the termination of employment pursuant to subparagraph (a) above, subject to
the terms in subparagraph (ii) below and the requirements of Paragraph 10
below, in addition to all accrued and vested benefits payable under the
Corporation’s employment and benefit policies, including, but not limited to,
unpaid incentive compensation awards earned under the Incentive Compensation
Plan for any completed performance periods, Brown shall be provided with the
following Salary Continuation and Other Benefits for the duration of the Severance
Period (as defined below): 
(1) current annual base salary and incentive compensation

 

6

 

awards earned
at the threshold amount shall be paid during the Severance Period (“Salary
Continuation”), which Salary Continuation shall be paid in the same manner and
pursuant to the same payroll procedures that were in effect prior to the
effective date of termination; (2) continuation of medical, dental, life
insurance and disability insurance for him and, if appropriate, his dependents,
during the Severance Period, as in effect on the effective date of termination
(“Other Benefits”), or if the continuation of all or any of the Other Benefits
is not available because of his status as a terminated employee, a payment equal
to the market value of such excluded Other Benefits; (3) if allowable under the
Corporation’s qualified pension plan in effect on the date of termination,
credit for additional years of service during the Severance Period; and (4)
outplacement services of an independent third party, mutually satisfactory to
both parties, until the earlier of one year after the effective date of
termination, or until he obtains new employment; the cost for such service will
be paid in full by the Corporation.  For
purposes of this Agreement, the “Severance Period” shall mean (i) if
termination occurs within one (1) year of the Effective Date, then the period
from the date of such termination to the second (2nd) anniversary of the
Effective Date and (ii) if termination occurs after the first (1st) anniversary
of the Effective Date, then the period from the date of such termination to the
first (1st) anniversary of the date of such termination.

 

(ii)                                  Subject
to Paragraph 10 below, in the event Brown accepts other employment during the
Severance Period, the Corporation shall continue the Salary Continuation in
force until the end of the Severance Period. All Other Benefits described in
subparagraph (i)(2) and the benefit set forth in (i)(3), other than all accrued
and vested benefits payable under the Corporation’s employment and benefit
policies, shall cease.

 

7

 

(iii)                               Brown
shall not be required to seek or accept any other employment. Rather, the
election of whether to seek or accept other employment shall be solely within
Brown’s discretion. If during the Severance Period Brown is receiving all or
any part of the benefits set forth in subparagraph (i) above and he should die,
then Salary Continuation remaining during the Severance Period shall be paid
fully and completely to his spouse or such individual designated by him or if
no such person is designated to his estate.

 

(b)                                 RELEASE.
The obligation of the Corporation to provide the Salary Continuation and Other
Benefits described in subparagraph (a) above is contingent upon and subject to
the execution and delivery by Brown of a general release, in form and substance
satisfactory to Brown and the Corporation. 
Without limiting the foregoing, such general release shall provide that
for and in consideration of the above Salary Continuation and Other Benefits,
Brown releases and gives up any and all claims and rights ensuing from his
employment and termination with the Corporation, which he may have against the
Corporation, a subsidiary or other Affiliate, their respective trustees,
officers, managers, employees and agents, arising from or related to his
employment and/or termination.  This
releases all claims, whether based upon federal, state, local or common law,
rules or regulations.  Such release
shall survive the termination or expiration of this Agreement.

 

(c)                                  VOLUNTARY
TERMINATION.  Should Brown in his
discretion elect to terminate this Agreement, he shall give the Corporation at
least sixty (60) days prior written notice of his decision to terminate. Except
as otherwise provided in this Agreement, at the end of the sixty (60) day
notice period, all rights, duties and obligations of both parties to the
Agreement shall cease, except for any and all accrued and vested benefits under
the

 

8

 

Corporation’s
existing employment and benefit policies, including but not limited to, unpaid
incentive compensation awards earned under the Incentive Compensation Plan for
any completed performance periods. At any time during the sixty (60) day notice
period, the Corporation may pay Brown for the compensation owed for said notice
period and in any such event Brown’s employment termination shall be effective
as of the date of the payment.

 

(d)                                 ALTERATION
OF DUTIES. If the Board of Directors of the Corporation or the Chief
Executive Officer, in either of their sole discretion, takes action which
substantially changes or alters Brown’s authority or duties so as to
effectively prevent him from performing the duties of the Executive Vice
President of Operations as defined in this Agreement, or requires that his
office be located at and/or principal duties be performed at a location more
than forty-five (45) miles from the present Corporation offices located in
Parsippany, New Jersey, then Brown may, at his option and upon written notice
to the Board of Directors and the Chief Executive Officer within thirty (30)
days after the Board’s or Chief Executive Officer’s action, consider himself
terminated without cause and entitled to the benefits set forth in subparagraph
7(a), unless within fifteen (15) days after delivery of such notice, Brown’s
duties have been restored.

 

(e)                                  DISABILITY.

 

(i)                                     The
Corporation, in its sole discretion, may terminate Brown’s employment upon his
Total Disability. In the event he is terminated pursuant to this subparagraph,
he shall be entitled to the benefits set forth in subparagraph 7(a), provided
however, that the annual base salary component of Salary Continuation shall be
reduced by any amounts paid to Brown under any disability benefits plan or
insurance policy. For purposes of

 

9

 

this
Agreement, the term “Total Disability” shall mean death or any physical or
mental condition which prevents Brown from performing his duties under this
contract for at least four (4) consecutive months. The determination of whether
or not a physical or mental condition would prevent Brown from the performance
of his duties shall be made by the Board of Directors in its discretion. If
requested by the Board of Directors, Brown shall submit to a mental or physical
examination by an independent physician selected by the Corporation and
reasonably acceptable to him to assist the Board of Directors in its
determination, and his acceptance of such physician shall not be unreasonably
withheld or delayed.  Failure to comply
with this request shall prevent him from challenging the Board’s determination.

 

(f)                                    RETIREMENT.
The Corporation, in its sole discretion, may establish a retirement policy for
its executive employees, including Brown, which includes the age for mandatory
retirement from employment with the Corporation. Upon the termination of
employment pursuant to such retirement policy, all rights and obligations under
this Agreement shall cease, except that Brown shall be entitled to any and all
accrued and vested benefits under the Corporation’s existing employment and
benefits policies, including but not limited to unpaid incentive compensation
awards earned under the Incentive Compensation Plan for any completed
performance periods.

 

(g)                                 OTHER
PAYMENTS.  If Brown is liable for
the payment of any excise tax (the “Excise Tax”) pursuant to section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor
or like provision, with respect to any payment or property transfers received
or to be received under this Agreement or otherwise, the Corporation shall pay
Brown an amount (the “Special Reimbursement”) which, after payment of any
federal, state and local

 

10

 

taxes,
including any further excise tax under Code section 4999, with respect to
or resulting from the Special Reimbursement, would place Brown in the same
economic position that he would have enjoyed if the Excise Tax had not applied
to such payments.

 

8.                                       TERMINATION
FOR CAUSE. Brown’s employment under this Agreement may be terminated by the
Corporation, immediately upon written notice in the event and only in the event
of the following conduct:  illegal
conduct; habitual unexcused absence from the facilities of the Corporation;
habitual substance abuse; willful disclosure of material confidential
information of the Corporation and/or its subsidiaries or other Affiliates; intentional
violation of conflicts of interest policies established by the Board of
Directors; failure to comply with the lawful directions of the Board or other
superiors; and willful misconduct or gross negligence that results in damage to
the interests of the Corporation and its subsidiaries or other Affiliates.
Should any of these situations occur, the Board of Directors and/or the Chief
Executive Officer will provide Brown written notice specifying the effective
date of such termination. Upon the effective date of such termination, any and
all payments and benefits due Brown under this Agreement shall cease except for
any accrued and vested benefits payable under the Corporation’s employment and
benefit policies, including any unpaid amounts owed under the Incentive
Compensation Plan.

 

9.                                       MAJOR
TRANSACTION. If, during the Term, the Corporation consummates a Major
Transaction and Brown is not the Executive Vice President of Operations with
duties and responsibilities substantially equivalent to those described herein
and/or is not entitled to substantially the same benefits as set forth in this
Agreement, then Brown shall have the right to terminate his employment under
this Agreement and shall be entitled to the benefits set forth in

 

11

 

subparagraph
7(a) as if the Effective Date were the date of the Major Transaction (such that
the Severance Period would be two (2) years). 
Brown shall provide the Corporation with written notice of his desire to
terminate his employment under this Agreement pursuant to this Paragraph within
one hundred and twenty (120) days of the effective date of the Major
Transaction and the Severance Period shall commence as of the effective date of
the termination of this Agreement.  For
purposes of this Paragraph, “Major Transaction” shall mean the sale of all or
substantially all of the assets of the Corporation, or a merger, consolidation,
sale of stock or similar transaction whereby a third party (including a “group”
as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended) acquires beneficial ownership, directly or indirectly, of securities
of the Corporation representing over fifty percent (50%) of the combined voting
power of the Corporation; provided, however, that a Major Transaction shall not
in any event include a direct or indirect public offering of securities of the
Corporation, its parent or other Affiliates.

 

10.                                 NON-COMPETITION.  Brown agrees that during (i) the Term; (ii)
the one (1) year period following the effective date of termination of this
Agreement by Brown pursuant to Paragraph 7(c) (Voluntary Termination); or (iii)
the one (1) year period following the effective date of termination by the
Corporation pursuant to Paragraph 8 (Termination For Cause), he shall not,
directly or indirectly, be employed or otherwise engaged to provide services to
any food manufacturer operating in the United States of America which is
directly competitive with any significant activities conducted by the Corporation
or its subsidiaries or other Affiliates whose principal business operations are
in the United States of America.  Brown
agrees that his entitlement to the benefits set forth in subparagraph 7(a)
above is contingent upon his compliance with the requirements of this
Paragraph.

 

12

 

11.                                 CONFIDENTIALITY
OF INFORMATION. Brown recognizes and acknowledges that during his
employment by the Corporation, he will acquire certain proprietary and
confidential information relating to the business of the Corporation and its
subsidiaries or other Affiliates (the “Information”). Brown agrees that during
the term of his employment under this Agreement and thereafter, for any reason
whatsoever, he shall not, directly or indirectly, except in the proper course
of exercising his duties under this Agreement, use for his or another third
party’s benefit, disclose, furnish, or make available to any person,
association or entity, the Information. In the event of a breach or threatened
breach by Brown of the provisions of this Paragraph, the Corporation shall be
entitled to an injunction restraining him from violating the provisions of this
Paragraph. Notwithstanding the foregoing, nothing contained herein shall be
construed as prohibiting the Corporation from pursuing any other remedies
available to it for such breach or threatened breach. For purposes of this
Paragraph, “Information” includes any and all verbal or written materials,
documents, information, products, processes, technologies, programs, trade
secrets, customer lists or other data relating to the business, and operations
of the Corporation and/or its subsidiaries or other Affiliates.

 

12.                                 SUPERSEDING
AGREEMENT. This Agreement constitutes the entire agreement between the parties
and contains all the agreements between them with respect to the subject matter
hereof. It also supersedes any and all other agreements or contracts, either
oral or written, between the parties with respect to the subject matter hereof.

 

13.                                 AGREEMENT
AMENDMENTS.  Except as otherwise
specifically provided, the terms and conditions of this Agreement may be
amended at any time by mutual agreement of the parties, provided that before
any amendment shall be valid or effective, it shall have been

 

13

 

reduced to
writing, approved by the Board of Directors, and signed by the Chairperson of
the Board of Directors and Brown.

 

14.                                 INVALIDITY
OR UNENFORCEABILITY PROVISION.  The
invalidity or unenforceability of any particular provision of this Agreement
shall not affect its other provisions and this Agreement shall be construed in
all aspects as if such invalid or unenforceable provision had been omitted.

 

15.                                 BINDING
AGREEMENT; ASSIGNMENT.  This
Agreement shall be binding upon and inure to the benefit of the Corporation and
Brown, their respective successors and permitted assigns. The parties recognize
and acknowledge that this Agreement is a contract for the personal services of
Brown and that this Agreement may not be assigned by him nor may the services
required of him hereunder be performed by any other person without the prior
written consent of the Corporation.

 

16.                                 GOVERNING
LAW. This Agreement shall be construed and enforced under and in accordance
with the laws of the State of New Jersey, without regard to conflicts of law
principles.

 

17.                                 ENFORCING
COMPLIANCE. If Brown needs to retain legal counsel to enforce any of the
terms of this Agreement either as a result of noncompliance by the Corporation
or a legitimate dispute as to the provisions of the Agreement, then any fees
incurred in such expense by Brown shall be reimbursed wholly and completely by
the Corporation if Brown prevails in such legal proceedings.

 

18.                                 NOTICES.
All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed effective when delivered, if delivered in person,
or upon

 

14

 

receipt if
mailed by overnight courier or by certified or registered mail, postage
prepaid, return receipt requested, to the parties at the addresses set forth
below, or at such other addresses as the parties may designate by like written
notice:

 

	
  To Corporation at:

  	
  B&G Foods, Inc

  
	
   

  	
  Four Gatehall Drive

  
	
   

  	
  Suite 110

  
	
   

  	
  Parsippany, NJ 07054

  
	
   

  	
   

  
	
  To Brown at:

  	
  115 Deer Park Road

  
	
   

  	
  Hackettstown, NJ 07840

  

 

15

 

IN  WITNESS WHEREOF, the
Corporation and Brown have executed this Agreement as of the day and year first
above written.

 

 

	
   

  	
  B&G FOODS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James Brown

  

 

16Exhibit 10.19

 

 

FORM OF AMENDED AND RESTATED TRANSACTION
SERVICES AGREEMENT

THIS AMENDED AND RESTATED
TRANSACTION SERVICES AGREEMENT, made this _____ day of April, 2004, by and
between Bruckmann, Rosser, Sherrill & Co., Inc., a Delaware corporation (“BRS”),
B&G Foods Holdings Corp., a Delaware corporation (“Holdings”), and B&G
Foods, Inc., a Delaware corporation and wholly-owned subsidiary of Holdings (“B&G”
and together with Holdings, the “Company”).

 

W I T N E S S E T H:

WHEREAS,
BRS, Holdings and B&G are parties to the Transactions Services Agreement,
dated as of August 11, 1997 (the “Existing Transaction Services Agreement”),
and desire to amend and restate the Existing Transaction Services Agreement in
its entirety subject to and effective upon consummation of the contemplated
initial public offering (the “Initial Public Offering”) by Holdings of
Enhanced Income Securities (“EISs”), each initially representing one
share of Holdings’ Class A Common Stock, par value $0.01 per share (the “Class
A Common Stock”) and $6.00 aggregate principal amount of Holdings’ Senior
Subordinated Notes (the “Senior Subordinated Notes”) pursuant to a
registration statement on Form S-1 filed under the Securities Act of 1933, as
amended.

WHEREAS,
immediately prior to the Initial Public Offering, B&G will be merged with
and into Holdings and Holdings will be renamed B&G Foods, Inc.

WHEREAS, the Company desires
to retain BRS to provide business and organizational strategy, financial and
investment management, and merchant and investment banking services to the
Company, upon the terms and conditions hereinafter set forth, and BRS is
willing to undertake such obligations;

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth, the
parties agree as follows:

1.             Amendment and Restatement.  Each party hereto agrees that effective upon
the closing of the Initial Public Offering the Existing Transaction Services
Agreement shall be amended and restated and replaced in its entirety with this
Agreement provided that such closing occurs not later than June 30, 2004.

2.             Appointment. 
The Company hereby engages BRS, and BRS hereby agrees under the terms
and conditions set forth herein, to provide certain services to the Company as
described in Section 4 hereof.

3.             Term.  The
term of this Agreement shall commence on the date hereof and shall continue
until the tenth anniversary of this Agreement (the “Term”), provided,
however, that the Term shall be automatically extended for successive
one-year periods unless either the Company or BRS shall give written notice to
the other at least ninety (90) days prior thereto that the Term shall not be so
extended.

 

 

4.             Duties of BRS. 
BRS shall provide the Company with business, management, financial,
merchant and investment banking and strategic and corporate advisory services
(collectively, the “Services”) in connection with any acquisition,
divestiture, financing or other transaction (each, a “Transaction”) in
which the Company or its subsidiaries may be, or may consider becoming,
involved.  The Services will be provided
at such times and places as may reasonably be determined by BRS.

4.1.          Exclusions from “Services”.  Notwithstanding anything in the foregoing to
the contrary, the following services are specifically excluded from the
definition of “Services”:

(i)            Independent Accounting Services.  Accounting Services rendered to the Company
or BRS, with prior notice and consultation with the Company’s management, by an
independent accounting firm or accountant (i.e., an accountant who is
not an employee of BRS);

(ii)           Legal Services. 
Legal services rendered to the Company, or BRS with prior notice and
consultation with the Company’s management, by an independent law firm or
attorney (i.e., an attorney who is not an employee of BRS); and

(iii)          Management Services.  Management and other business and organizational strategy,
financial and investment management, and merchant and investment banking
services.

5.             Power of BRS. 
So that it may properly perform its duties hereunder, BRS shall, subject
to Section 8 hereof, have the authority and power to do all things
necessary and proper to carry out the duties set forth in Section 4.

6.             Compensation. 
As consideration payable to BRS or any of its affiliates for providing
the Services to the Company, the Company shall pay to BRS:

(a)           Upon the consummation of any
Transaction, a transaction fee (“Transaction Fee”) equal to one percent
(1%) of the total Transaction value (which shall be equal to the enterprise
value) of such Transaction.

(b)           Actual and direct out-of-pocket
expenses (including fees and disbursements of attorneys, accountants and other
professionals and consultants retained by BRS in connection with the Services
provided hereunder) incurred by BRS and its personnel in performing Services,
which shall be reimbursed to BRS by the Company upon BRS’s rendering of a
statement therefor together with such supporting data as the Company reasonably
shall require.

(c)           Notwithstanding any other provision
of this Section 6, the Company shall not be required to pay any of the
Transaction Fee, (1) if and to the extent such payment is expressly prohibited
by the provisions of any credit, financing or other agreement, indenture or
instrument binding upon the Company or its properties; provided, however,
that if, as a result of the operation of any such prohibitions, payments
otherwise owed hereunder are not made, such payments shall not be cancelled but
rather shall accrue, and shall be payable by the Company promptly when, and to
the extent that, the Company is no longer prohibited from making such payments,
together with accrued interest

 

2

 

calculated at the rate of
interest then charged under the Company’s then existing credit agreement from
the date such payment was due through the date of payment; or (2) if a majority
of disinterested directors of the Company determines by resolution that such
Transaction Fee should not be paid because the reasonable value of the Services
rendered does not support payment of the Transaction Fee.  Other than the credit agreement and the
indentures to be entered into by the Company on the date of consummation of the
Initial Public Offering, the Company will not enter into any such agreement,
indenture or instrument that restricts payment by the Company of the
Transaction Fee without the prior written approval of BRS.  This Section 6(c) will not prohibit
nor restrict, in any manner, the Company’s obligation to make the payment
specified in Section 6(a), to make reimbursements pursuant to Section
6(b), to provide indemnification pursuant to Section 7, 10
and 17, or to make any other payments contemplated by this Agreement.

7.             Indemnification. 
In the event that BRS or any of its affiliates, principals, partners,
directors, stockholders, employees, agents and representatives (collectively,
the “Indemnified Parties”) becomes involved in any capacity in any action,
proceeding or investigation in connection with any matter referred to in or
contemplated by this Agreement, or in connection with its Services, the Company
will indemnify and hold harmless the Indemnified Parties from and against any
actual or threatened claims, lawsuits, actions or liabilities (including
out-of-pocket expenses and the fees and expenses of counsel and other
litigation costs and the cost of any preparation or investigation) of any kind
or nature, arising as a result of or in connection with this Agreement and
their Services, activities and decisions hereunder, and will periodically
reimburse BRS for its expenses as described above, except that the Company will
not be obligated to so indemnify any Indemnified Party if, and to the extent
that, such claims, lawsuits, actions or liabilities against such Indemnified
Party directly result from the gross negligence or willful misconduct of such
Indemnified Party as admitted in any settlement by such Indemnified Party or
held in any final, non-appealable judicial or administrative decision.  In connection with such indemnification, the
Company will promptly remit or pay to BRS any amounts which BRS certifies to
the Company in writing are payable to BRS or other Indemnified Parties
hereunder.  The reimbursement and
indemnity obligations of the Company under this Section 7 shall be in
addition to any liability which the Company may otherwise have, shall extend
upon the same terms and conditions to any Indemnified Party, as the case may
be, of BRS and any such affiliate and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the
Company, BRS, and any such Indemnified Party. 
The foregoing provisions shall survive the termination of this
Agreement.

8.             Independent Contractors.  Nothing herein shall be construed to create
a joint venture or partnership between the parties hereto or an
employee/employer relationship.  BRS
shall be an independent contractor pursuant to this Agreement.  Neither party hereto shall have any express
or implied right or authority to assume or create any obligations on behalf of
or in the name of the other party or to bind the other party to any contract,
agreement or undertaking with any third party.

9.             Notices. 
Any notice or other communications required or permitted to be given
hereunder shall be in writing and delivered by hand or mailed by registered or
certified mail, return receipt requested, or by telecopier to the party to whom
it is to be given at its address set forth herein, or to such other address as
the party shall have specified by notice similarly given.

 

 

3

 

 

(i)            If to the Company, to it at:

B&G Foods, Inc.

Four Gatehall Drive, Suite 110

Parsippany, New Jersey 07054

Attention: 
Robert C. Cantwell

(ii)           If to BRS, to it at:

126 East 56th Street

29th Floor

New York, New York 10022

 

Attention: 
Stephen C. Sherrill

10.           Liability. 
BRS is not and never shall be liable to any creditor of the Company and
the Company agrees to indemnify and hold each Indemnified Party harmless from
and against any and all such claims of alleged creditors of the Company and
against all costs, charges and expenses (including reasonable attorneys fees
and expenses) incurred or sustained by any Indemnified Party in connection with
any action, suit or proceeding to which it may be made a party by any alleged
creditor of the Company. 
Notwithstanding anything contained in this Agreement to the contrary,
the Company agrees and acknowledges that BRS and its partners, principals,
shareholders, directors, officers, employees and affiliates intend to engage
and participate in acquisitions and business transactions outside of the scope
of the relationship created by this Agreement and they shall not be under any
obligation whatsoever to make such acquisitions, business transactions or other
opportunities through the Company or offer such acquisitions, business
transactions or other opportunities to the Company.

11.           Assignment. 
This Agreement shall inure to the benefit of and be binding upon the
parties and their successors and assigns. 
However, neither this Agreement nor any of the rights of the parties
hereunder may be transferred or assigned by either party hereto, except that
(i) if the Company shall merge or consolidate with or into, or sell or
otherwise transfer substantially all its assets to, another corporation which
assumes the Company’s obligations under this Agreement, the Company may assign
its rights hereunder to that corporation, and (ii) BRS may assign its rights
and obligations hereunder to any other person or entity controlled, directly or
indirectly, by Bruce C.  Bruckmann,
Harold O.  Rosser, Stephen C. Sherrill,
Thomas J. Baldwin and/or Paul D. Kaminski. 
Any attempted transfer or assignment in violation of this Section 11
shall be void.

12.           Entire Agreement. 
This Agreement contains the entire agreement between the parties hereto
and supersedes all prior agreements and undertakings, oral and written, among
the parties hereto with respect to the subject matter hereof.

13.           Section Headings. 
The section headings contained herein are included for convenience or
references only and shall not constitute a part of this Agreement for any other
purpose.

 

 

 

4

 

14.           Counterparts. 
This Agreement may be executed in counterparts, each of which shall be
deemed to be an original and all of which together shall be deemed to be one
and the same instrument.

15.           Applicable Law. 
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York applicable to contracts made and to be
performed entirely within such State, regardless of the law that might be
applied under principles of conflicts of law.

16.           Severability. 
Any section, clause, sentence, provision, subparagraph or paragraph of
this Agreement held by a court of competent jurisdiction to be invalid, illegal
or ineffective shall not impair, invalidate or nullify the remainder of this
Agreement, but the effect thereof shall be subparagraph or paragraph so held to
be invalid, illegal or ineffective.

17.           Taxes.  The amount
of any payment paid by the Company under this Agreement shall be increased by
the amount, if any, of any taxes (other than income taxes) or other
governmental charges levied in respect of such payments, so that BRS is made
whole for such taxes or charges.

IN WITNESS WHEREOF, the
parties hereto have signed this Agreement as of the day and year first above
written.

	
   

  	
  BRUCKMANN, ROSSER,
  SHERRILL & CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Stephen C. Sherrill

  
	
   

  	
   

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B&G FOODS HOLDINGS
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Robert C. Cantwell

  
	
   

  	
   

  	
  Executive Vice President
  of Finance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B&G FOODS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Robert C. Cantwell

  
	
   

  	
   

  	
  Executive Vice President
  of Finance

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]