Document:

Exhibit
10.2

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

 

made by

 

B&G FOODS, INC.

and certain of its
Subsidiaries

in favor of

LEHMAN COMMERCIAL PAPER
INC.

as Administrative Agent

Dated as of October 14,
2004

 

 

 

Table of Contents

	
   

  	
   

  
	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINED TERMS

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Definitions

  
	
   

  	
  1.2.

  	
  Other Definitional
  Provisions

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GUARANTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.

  	
  Guarantee

  
	
   

  	
  2.2.

  	
  Right of Contribution

  
	
   

  	
  2.3.

  	
  No
  Subrogation

  
	
   

  	
  2.4.

  	
  Amendments,
  etc. with respect to the Borrower Obligations

  
	
   

  	
  2.5.

  	
  Guarantee Absolute
  and Unconditional

  
	
   

  	
  2.6.

  	
  Reinstatement

  
	
   

  	
  2.7.

  	
  Payments

  
	
   

  	
   

  
	
  SECTION
  3.

  	
  GRANT
  OF SECURITY INTEREST

  
	
   

  	
   

  
	
  SECTION
  4.

  	
  REPRESENTATIONS
  AND WARRANTIES

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Representations in
  Credit Agreement

  
	
   

  	
  4.2.

  	
  Title; No Other Liens

  
	
   

  	
  4.3.

  	
  Perfected First Priority
  Liens

  
	
   

  	
  4.4.

  	
  Jurisdiction of
  Organization; Identification Number; Chief Executive Office

  
	
   

  	
  4.5.

  	
  Inventory and Equipment

  
	
   

  	
  4.6.

  	
  Farm
  Products

  
	
   

  	
  4.7.

  	
  Pledged
  Securities

  
	
   

  	
  4.8.

  	
  Receivables

  
	
   

  	
  4.9.

  	
  Contracts

  
	
   

  	
  4.10.

  	
  Intellectual Property

  
	
   

  	
  4.11.

  	
  Vehicles

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Covenants in the
  Credit Agreement

  
	
   

  	
  5.2.

  	
  Delivery of Instruments,
  Certificated Securities and Chattel Paper

  
	
   

  	
  5.3.

  	
  Maintenance of Insurance

  
	
   

  	
  5.4.

  	
  Payment of Obligations

  
	
   

  	
  5.5.

  	
  Maintenance
  of Perfected Security Interest; Further Documentation

  
	
   

  	
  5.6.

  	
  Changes
  in Name, etc.

  
	
   

  	
  5.7.

  	
  Notices

  
	
   

  	
  5.8.

  	
  Pledged Securities

  
	
   

  	
  5.9.

  	
  Receivables

  

 

i

 

 

 

	
   

  	
  5.10.

  	
  Contracts

  
	
   

  	
  5.11.

  	
  Intellectual Property

  
	
   

  	
  5.12.

  	
  Deposit
  Accounts

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REMEDIAL
  PROVISIONS

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Certain Matters
  Relating to Receivables

  
	
   

  	
  6.2.

  	
  Communications with
  Obligors; Grantors Remain Liable

  
	
   

  	
  6.3.

  	
  Pledged
  Stock

  
	
   

  	
  6.4.

  	
  Proceeds to be Turned Over
  To Administrative Agent

  
	
   

  	
  6.5.

  	
  Application of Proceeds

  
	
   

  	
  6.6.

  	
  Code and Other Remedies

  
	
   

  	
  6.7.

  	
  Registration Rights

  
	
   

  	
  6.8.

  	
  Waiver; Deficiency

  
	
   

  	
   

  
	
  SECTION
  7.

  	
  THE
  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1.

  	
  Administrative Agent’s Appointment
  as Attorney-in-Fact, etc.

  
	
   

  	
  7.2.

  	
  Duty of Administrative
  Agent

  
	
   

  	
  7.3.

  	
  Financing Statements

  
	
   

  	
  7.4.

  	
  Authority of
  Administrative Agent

  
	
   

  	
   

  
	
  SECTION 8.

  	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Amendments in Writing

  
	
   

  	
  8.2.

  	
  Notices

  
	
   

  	
  8.3.

  	
  No Waiver by Course of
  Conduct; Cumulative Remedies

  
	
   

  	
  8.4.

  	
  Enforcement Expenses;
  Indemnification

  
	
   

  	
  8.5.

  	
  Successors and Assigns

  
	
   

  	
  8.6.

  	
  Set-Off

  
	
   

  	
  8.7.

  	
  Counterparts

  
	
   

  	
  8.8.

  	
  Severability

  
	
   

  	
  8.9.

  	
  Section
  Headings

  
	
   

  	
  8.10.

  	
  Integration

  
	
   

  	
  8.11.

  	
  GOVERNING LAW

  
	
   

  	
  8.12.

  	
  Submission To Jurisdiction;
  Waivers

  
	
   

  	
  8.13.

  	
  Acknowledgments

  
	
   

  	
  8.14.

  	
  Additional Grantors

  
	
   

  	
  8.15.

  	
  Releases

  
	
   

  	
  8.16.

  	
  WAIVER
  OF JURY TRIAL

  

 

 

ii

 

 

GUARANTEE AND COLLATERAL AGREEMENT

GUARANTEE AND COLLATERAL
AGREEMENT, dated as of October 14, 2004, made by each of the signatories hereto
(together with any other entity that may become a party hereto as provided
herein, the “Grantors”), in favor of LEHMAN COMMERCIAL PAPER INC., as
Administrative Agent (as defined below).

W I T N E S S E T H:

WHEREAS, B&G Foods, Inc., a Delaware corporation
(the “Borrower”) is party to the Credit Agreement, dated as of October
14, 2004 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), with the several banks and other financial
institutions from time to time parties thereto (the “Lenders”), Lehman
Brothers Inc., as sole advisor, sole lead arranger and sole bookrunner (in such
capacity, the “Arranger”), The Bank of New York, as documentation agent
(in such capacity, the “Documentation Agent”), Fleet National Bank, a
Bank of America company, as syndication agent (in such capacity, the “Syndication
Agent”), and Lehman Commercial Paper Inc., as administrative agent (in such
capacity, the “Administrative Agent”);

WHEREAS, pursuant to the Credit Agreement, the Lenders
have severally agreed to make, or to permit to continue to be outstanding,
extensions of credit to the Borrower upon the terms and subject to the
conditions set forth therein;

WHEREAS, the Borrower is a member of an affiliated
group of companies that includes each other Grantor;

WHEREAS, the proceeds of the extensions of credit
under the Credit Agreement  have been
and will be used in part to enable the Borrower to make valuable transfers to
one or more of the other Grantors in connection with the operation of their
respective businesses;

WHEREAS, the Borrower and the other Grantors are
engaged in related businesses, and each Grantor will derive substantial direct
and indirect benefit from the extensions of credit under the Credit Agreement;
and

WHEREAS, it is a condition precedent to the obligation
of the Lenders to make their respective extensions of credit to the Borrower
under the Credit Agreement that the Grantors shall have executed and delivered
this Agreement to the Administrative Agent for the ratable benefit of the
Secured Parties (as defined below);

NOW, THEREFORE, in consideration of the premises and
to induce the Arranger, the Agents and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby agrees with the
Administrative Agent, for the ratable benefit of the Secured Parties, as
follows:

 

3

 

SECTION 1.  DEFINED TERMS

1.1.  Definitions. 
(a)  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement and the following terms which
are defined in Articles 8 and 9 of the Uniform Commercial Code in effect in the
State of New York on the date hereof are used herein as so defined:  Accounts, Certificated Security, Chattel
Paper, Deposit Accounts, Documents, Equipment, Farm Products, Goods,
Instruments, Inventory, Letter of Credit Rights and Supporting Obligations.

(b)   The following terms shall have the following
meanings:

“Agreement”: 
this Guarantee and Collateral Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

“Borrower Foreign Letter of Credit Obligations”:  the collective reference to all obligations
and liabilities of the Borrower (including, without limitation, interest
accruing at the then applicable rate provided in the documentation executed in
connection with any Permitted Foreign Currency Letter of Credit after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding)
to any Foreign Currency L/C Issuing Lender, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, any Permitted
Foreign Currency Letter of Credit or any other document made, delivered or
given in connection therewith, in each case whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including, without limitation, all fees and disbursements of counsel
to the Lenders that are required to be paid by the Borrower pursuant to the
terms of any of the foregoing agreements).

“Borrower Hedge Agreement Obligations”:  the collective reference to all obligations
and liabilities of the Borrower (including, without limitation, interest
accruing at the then applicable rate provided in any Specified Hedge Agreement
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to any Lender or any Qualified Counterparty, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, any
Specified Hedge Agreement or any other document made, delivered or given in
connection therewith, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to the
Lenders that are required to be paid by the Borrower pursuant to the terms of
any of the foregoing agreements).

“Borrower Obligations”:  the collective reference to (i) the Borrower
Revolving Credit Obligations, (ii) the Borrower Hedge Agreement Obligations,
but only to the extent that, and only so long as, the Borrower Revolving Credit
Obligations are secured and guaranteed pursuant hereto, (iii) Borrower Foreign
Letter of Credit Obligations, but 

 

4

 

only to the extent that, and
only so long as, the Borrower Foreign Letter of Credit Obligations are secured
and guaranteed pursuant hereto, and (iv) all other obligations and liabilities
of the Borrower, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, out
of, or in connection with, this Agreement (including, without limitation, all
fees and disbursements of counsel to the Administrative Agent or to the Lenders
that are required to be paid by the Borrower pursuant to the terms of this
Agreement or the Credit Agreement).

“Borrower Revolving Credit Obligations”:  the collective reference to the unpaid
principal of and interest on the Revolving Credit Loans, Swing Line Loans and
Reimbursement Obligations and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the
Revolving Credit Loans, Swing Line Loans and Reimbursement Obligations and
interest accruing at the then applicable rate provided in the Credit Agreement
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to the Administrative Agent or any Revolving Credit Lender,
whether direct or indirect, absolute or contingent, due or to become due, or
now existing or hereafter incurred, which may arise under, out of, or in
connection with, the Credit Agreement, the other Loan Documents referred to in
the Credit Agreement, any Letter of Credit or any other document made,
delivered or given in connection therewith, in each case whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Administrative Agent or to the Revolving Credit
Lenders that are required to be paid by the Borrower pursuant to the terms of
any of the foregoing agreements).

“Capital Markets Indentures”: the Senior Note
Indenture and Senior Subordinated Note Indenture and any indenture governing
Indebtedness permitted under Section 6.1 of the Credit Agreement which
refinances the Indebtedness under such indentures.

“Collateral”:  as defined in Section 3.

“Collateral Account”:  any collateral account established by the
Administrative Agent as provided in Section 6.1 or 6.4.

“Commitments”:  the Revolving Credit Commitments.

 “Copyright
Licenses”:  any written agreement
naming any Grantor as licensor or licensee (including, without limitation,
those listed in Schedule 6), granting any right under any Copyright.

“Copyrights”:  (i) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished (including, without
limitation, those listed in Schedule

 

5

 

6), all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to obtain
all renewals thereof.

“Excluded Assets”:  the collective reference to (a) any Capital Stock of any Excluded
Foreign Subsidiary in excess of 65% of the voting Capital Stock of such
Excluded Foreign Subsidiary (b) any real property and any interests therein and
(c) any contract, General Intangible, Intellectual Property, Copyright License,
Patent License or Trademark License (“Intangible Assets”), if and only
for so long as the grant of a security interest hereunder shall constitute or
result in a breach, termination or default under any such lease, license,
contract, property right or agreement (other than to the extent that any such
term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or
9-409 of the Uniform Commercial Code of any relevant jurisdiction or any other
applicable law or principles of equity); provided  however, that
such security interest shall attach immediately to any portion of such lease,
license, contract, property rights or agreement that does not result in any of
the consequences specified above.

“Foreign Currency L/C Issuing Lender”: with
respect to any Permitted Foreign Currency Letters of Credit, the issuer thereof
that, at the time such Permitted Foreign Currency Letter of Credit was issued,
was a Lender or an affiliate of a Lender.

“General Intangibles”:  all “general intangibles” as such term is
defined in Section 9-102 of the Uniform Commercial Code in effect in the State
of New York on the date hereof and, in any event, including, without
limitation, with respect to any Grantor, all contracts, agreements, instruments
and indentures in any form, and portions thereof, to which such Grantor is a
party or under which such Grantor has any right, title or interest or to which
such Grantor or any property of such Grantor is subject, as the same may from
time to time be amended, supplemented or otherwise modified, including, without
limitation, (i) all rights of such Grantor to receive moneys due and to become
due to it thereunder or in connection therewith, (ii) all rights of such
Grantor to damages arising thereunder and (iii) all rights of such Grantor to
perform and to exercise all remedies thereunder.

“Guarantor Obligations”:  with respect to any Guarantor, all
obligations and liabilities of such Guarantor which may arise under or in
connection with this Agreement (including, without limitation, Section 2) or
any other Loan Document to which such Guarantor is a party, in each case
whether on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to the Administrative Agent or to the Lenders
that are required to be paid by such Guarantor pursuant to the terms of this
Agreement or any other Loan Document).

“Guarantors”:  the collective reference to each Grantor other than the Borrower.

“Hedge Agreements”:  as to any Person, all interest rate swaps, currency exchange
agreements, commodity swaps, caps or collar agreements or similar arrangements
entered into by such Person providing for protection against fluctuations in
interest rates,

 

6

 

currency exchange rates or
commodity prices or the exchange of nominal interest obligations, either
generally or under specific contingencies. 
For avoidance of doubt, Hedge Agreements shall include any interest rate
swap or similar agreement that provides for the payment by the Borrower or any
of its Subsidiaries of amounts based upon a floating rate in exchange for
receipt by the Borrower or such Subsidiary of amounts based upon a fixed rate.

“Insurance”: 
(i) all insurance policies covering any or all of the Collateral
(regardless of whether the Administrative Agent is the loss payee thereof) and
(ii) any key man life insurance policies.

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including,
without limitation, the Copyrights, the Copyright Licenses, the Patents, the
Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to
sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom.

“Intercompany Note”:  any promissory note evidencing loans made by
any Grantor to the Borrower or any of its Subsidiaries.

“Investment Property”:  the collective reference to (i)  all “investment property” as such term is
defined in Section 9-102(a)(49) of  the
New York UCC and (ii) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Stock.

“Issuers”: 
the collective reference to each issuer of a Pledged Security.

 “New York
UCC”:  the Uniform Commercial Code
as from time to time in effect in the State of New York.

“Obligations”:  (i) in the case of the Borrower, the Borrower Obligations, and
(ii) in the case of each Guarantor, its Guarantor Obligations.

“Patent License”:  all agreements, whether written or oral, providing for the grant
by or to any Grantor of any right to manufacture, use or sell any invention
covered in whole or in part by a Patent, including, without limitation, any of
the foregoing referred to in Schedule 6.

“Patents”: 
(i) all letters patent of the United States, any other country or any
political subdivision thereof, all reissues and extensions thereof, including,
without limitation, any of the foregoing referred to in Schedule 6, (ii)
all applications for letters patent of the United States or any other country
and all divisions, continuations and continuations-in-part thereof, including,
without limitation, any of the foregoing referred to in Schedules 6, and
(iii) all rights to obtain any reissues or extensions of the foregoing.

“Pledged Notes”:  all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held

 

7

 

by any Grantor (other than
promissory notes issued in connection with extensions of trade credit by any
Grantor in the ordinary course of business).

“Pledged Securities”:  the collective reference to the Pledged
Notes and the Pledged Stock.

“Pledged Stock”:  the shares of Capital Stock listed on Schedule 2, together
with any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the Capital Stock of any Person that may be issued or
granted to, or held by, any Grantor while this Agreement is in effect; provided,
that Excluded Assets shall not constitute Pledged Stock.

“Proceeds”: 
all “proceeds” as such term is defined in Section 9-102(a)(64) of the
Uniform Commercial Code in effect in the State of New York on the date hereof
and, in any event, including, without limitation, all dividends or other income
from Investment Property, collections thereon or distributions or payments with
respect thereto.

“Qualified Counterparty”:  with respect to any Specified Hedge
Agreement, any counterparty thereto that, at the time such Specified Hedge
Agreement was entered into, was a Lender or an affiliate of a Lender.

“Receivable”:  any right to payment for goods sold or leased or for services
rendered, whether or not such right is evidenced by an Instrument or Chattel
Paper and whether or not it has been earned by performance (including, without
limitation, any Account).

“Secured Parties”:  the collective reference to the Administrative Agent, the Other
Agents, the Lenders (including any Issuing Lender in its capacity as Issuing
Lender), any Foreign Currency L/C Issuing Lenders and any Qualified
Counterparties.

“Securities Act”:  the Securities Act of 1933, as amended.

“Specified Hedge Agreement”:  any Hedge Agreement (a) entered into by (i)
the Borrower or any of its Subsidiaries and (ii) any Qualified Counterparty.

“Trademark License”:  any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedules
6.

“Trademarks”:  (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos
and other source or business identifiers, and all goodwill associated therewith,
now existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, or otherwise, and all common-law rights related thereto,
including, without limitation, any of the foregoing referred to in Schedules
6, and (ii) the right to obtain all renewals thereof.

 

8

 

“Vehicles”: 
all cars, trucks, trailers, construction and earth moving equipment and
other vehicles covered by a certificate of title law of any state and all tires
and other appurtenances to any of the foregoing.

1.2.          Other
Definitional Provisions. 
(a)  The words “hereof”,
“herein”, “hereto” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this
Agreement unless otherwise specified.

(b)   The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

(c)   Where the context requires, terms relating to
the Collateral or any part thereof, when used in relation to a Grantor, shall
refer to such Grantor’s Collateral or the relevant part thereof.

SECTION 2.  GUARANTEE

 

2.1           Guarantee.  (a) 
Each of the Guarantors hereby, jointly and severally, absolutely,
unconditionally and irrevocably, guarantees to the Administrative Agent, for
the ratable benefit of the Secured Parties and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and
performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

(b)   Anything herein or in any other Loan Document
to the contrary notwithstanding, the maximum liability of each Guarantor
hereunder and under the other Loan Documents shall in no event exceed the
amount which can be guaranteed by such Guarantor under applicable federal and
state laws relating to the insolvency of debtors (after giving effect to the
right of contribution established in Section 2.2).

(c)   Each Guarantor agrees that the Borrower
Obligations may at any time and from time to time exceed the amount of the
liability of such Guarantor hereunder without impairing the guarantee contained
in this Section 2 or affecting the rights and remedies of the Administrative
Agent or any Secured Party hereunder.

(d)   The guarantee contained in this Section 2
shall remain in full force and effect until (subject to reinstatement pursuant
to Section 2.6) all the Borrower Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, no Letter of Credit shall be outstanding and the
Commitments shall be terminated, notwithstanding that from time to time during
the term of the Credit Agreement the Borrower may be free from any Borrower
Obligations.

(e)   No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any Secured Party from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from
time to time in reduction of or in payment of the Borrower Obligations shall be
deemed to modify, reduce, release or otherwise affect the liability of any
Guarantor hereunder which shall,

 

9

 

notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the
Borrower Obligations or any payment received or collected from such Guarantor
in respect of the Borrower Obligations), remain liable for the Borrower
Obligations up to the maximum liability of such Guarantor hereunder until
(subject to reinstatement pursuant to Section 2.6) the Borrower Obligations are
paid in full, no Letter of Credit shall be outstanding and the Commitments are
terminated.

2.2.          Right
of Contribution.  Each
Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor
shall have paid more than its proportionate share of any payment made
hereunder, such Subsidiary Guarantor shall be entitled to seek and receive
contribution from and against any other Subsidiary Guarantor hereunder which
has not paid its proportionate share of such payment.  Each Subsidiary Guarantor’s right of contribution shall be
subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall in no respect limit the
obligations and liabilities of any Subsidiary Guarantor to the Administrative
Agent and the Secured Parties, and each Subsidiary Guarantor shall remain
liable to the Administrative Agent and the Secured Parties for the full amount
guaranteed by such Subsidiary Guarantor hereunder.

2.3.          No
Subrogation.  Notwithstanding
any payment made by any Guarantor hereunder or any set-off or application of
funds of any Guarantor by the Administrative Agent or any Secured Party, no
Guarantor shall be entitled to be subrogated to any of the rights of the
Administrative Agent or any Secured Party against the Borrower or any other
Guarantor or any collateral security or guarantee or right of offset held by
the Administrative Agent or any Secured Party for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing
to the Administrative Agent and the Secured Parties by the Borrower on account of
the Borrower Obligations are paid in full, no Letter of Credit shall be
outstanding and the Commitments are terminated.  If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Borrower Obligations shall not
have been paid in full, such amount shall be held by such Guarantor in trust
for the Administrative Agent and the Secured Parties, segregated from other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor,
be turned over to the Administrative Agent in the exact form received by such
Guarantor (duly indorsed by such Guarantor to the Administrative Agent, if
required), to be applied against the Borrower Obligations, whether matured or
unmatured, in such order as the Administrative Agent may determine.

2.4.          Amendments,
etc. with respect to the Borrower Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against any Guarantor and without
notice to or further assent by any Guarantor, any demand for payment of any of
the Borrower Obligations made by the Administrative Agent or any Secured Party
may be rescinded by the Administrative Agent or such Secured Party and any of
the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Administrative
Agent or any Secured Party, and the Credit Agreement and the other Loan

 

10

 

Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the Required
Lenders or all Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time
held by the Administrative Agent or any Secured Party for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or
released.  Neither the Administrative
Agent nor any Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Borrower
Obligations or for the guarantee contained in this Section 2 or, except as
provided in Section 7.2 hereof, any property subject thereto.

2.5.          Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Borrower Obligations
and notice of or proof of reliance by the Administrative Agent or any Secured
Party upon the guarantee contained in this Section 2 or acceptance of the
guarantee contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee contained in this Section 2; and all dealings between the Borrower
and any of the Guarantors, on the one hand, and the Administrative Agent and
the Secured Parties, on the other hand, likewise shall be conclusively presumed
to have been had or consummated in reliance upon the guarantee contained in
this Section 2.  Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower or any of the Guarantors with respect to the
Borrower Obligations.  Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute, irrevocable and unconditional guarantee of
payment without regard to (a) the validity or enforceability of the Credit
Agreement or any other Loan Document, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or
any Secured Party, (b) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be
asserted by the Borrower, any Guarantor or any other Person against the Administrative
Agent or any Secured Party, or (c) any other circumstance whatsoever (with or
without notice to or knowledge of the Borrower or such Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other
instance.  When making any demand
hereunder or otherwise pursuing its rights and remedies hereunder against any
Guarantor, the Administrative Agent or any Secured Party may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such
rights and remedies as it may have against the Borrower, any other Guarantor or
any other Person or against any collateral security or guarantee for the
Borrower Obligations or any right of offset with respect thereto, and any
failure by the Administrative Agent or any Secured Party to make any such
demand, to pursue such other rights or remedies or to collect any payments from
the Borrower, any other Guarantor or any other Person or to realize upon any
such collateral security or guarantee or to exercise any such right of offset,
or any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Secured Party against any
Guarantor.  For the purposes hereof
“demand” shall include the commencement and continuance of any legal
proceedings.

 

11

 

2.6.          Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of the Borrower or any Guarantor, or upon or as a result of
the appointment of a receiver, intervenor or conservator of, or trustee or
similar officer for, the Borrower or any Guarantor or any substantial part of
its property, or otherwise, all as though such payments had not been made.

2.7.          Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or counterclaim
in Dollars at the Payment Office specified in the Credit Agreement.

SECTION 3.  GRANT OF SECURITY INTEREST

 

Each Grantor hereby assigns and transfers to the
Administrative Agent, for the ratable benefit of the Secured Parties, and
hereby grants to the Administrative Agent, for the ratable benefit of the
Secured Parties, a security interest in, all of the following property now
owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or
interest (collectively, the “Collateral”), in each case as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

(i)       all
Accounts;

(ii)      all
Chattel Paper;

(iii)     all
Documents;

(iv)     all
Equipment (other than Vehicles);

(v)      all  General Intangibles;

(vi)     all
Instruments;

(vii)    all
Intellectual Property;

(viii)   all
Inventory;

(ix)     all
Investment Property;

(x)      all
Deposit Accounts;

(xi)     all
Insurance;

 

(xii)    all
Letter of Credit Rights;

 

(xiii)   all
Goods and other personal property not otherwise described above;

 

 

12

 

(xiv)   all books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer printouts,
tapes, disks and other electronic storage media and similar items that at any
time evidence or contain information relating to any of the Collateral or are
otherwise necessary or helpful in the collection thereof or realization
thereupon; and

 

(xi)   to
the extent not otherwise included, all other property of the Grantor and all
Proceeds, products, accessions, rents and profits of any and all of the
foregoing and all collateral security, Supporting Obligations and guarantees
given by any Person with respect to any of the foregoing;

provided, that the Collateral shall
not include any Excluded Assets.

SECTION 4.  REPRESENTATIONS AND
WARRANTIES

To induce the Agents and the Lenders to enter into the
Credit Agreement and to induce the Lenders to make their respective extensions
of credit to the Borrower thereunder, each Grantor hereby represents and
warrants to the Administrative Agent and each Secured Party that:

4.1.          Representations in Credit Agreement.  In the case of each Guarantor, the
representations and warranties set forth in Section 3 of the Credit Agreement
as they relate to such Guarantor or to the Loan Documents to which such
Guarantor is a party, each of which is hereby incorporated herein by reference,
are true and correct, and the Administrative Agent and each Secured Party shall
be entitled to rely on each of them as if they were fully set forth herein, provided
that each reference in each such representation and warranty to the Borrower’s
knowledge shall, for the purposes of this Section 4.1, be deemed to be a
reference to such Guarantor’s knowledge.

4.2.          Title; No
Other Liens.  Except for the security
interest granted to the Administrative Agent for the ratable benefit of the
Secured Parties pursuant to this Agreement and the other Liens permitted to
exist or be incurred on the Collateral by the Credit Agreement, such Grantor
owns each item of the Collateral free and clear of any and all Liens or claims
of others.  No financing statement or
other public notice with respect to all or any part of the Collateral is on
file or of record in any public office, except such as have been filed in favor
of the Administrative Agent, for the ratable benefit of the Secured Parties,
pursuant to this Agreement or as are permitted by the Credit Agreement.

4.3.          Perfected
First Priority Liens.  The
security interests granted pursuant to this Agreement  upon completion of the filings and other actions specified on Schedule 3
(which, in the case of all filings and other documents referred to on said
Schedule, have been delivered to the Administrative Agent in completed and, if
applicable, duly executed form), will constitute valid perfected security
interests in all of the Collateral subject hereto on the date hereof in favor
of the Administrative Agent, for the ratable benefit of the Secured Parties, as
collateral security for such Grantor’s Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons
purporting to purchase any Collateral from such Grantor, and are prior to all
other Liens on the Collateral in existence on the date hereof, except

 

13

 

for (i) unrecorded Liens permitted by the Credit
Agreement which have priority over the Liens on the Collateral by operation of
law and (ii) Liens described on Schedule 7.

4.4.          Jurisdiction
of Organization; Identification Number; Chief Executive Office.  On the date hereof, such Grantor’s
jurisdiction of organization, identification number from the jurisdiction of
organization (if any), and the location of such Grantor’s chief executive
office or sole place of business, as the case may be, are specified on Schedule
4.  Such Grantor has furnished to
the Administrative Agent a certified charter, certificate of incorporation or
other organization document with respect to such Grantor and (to the extent
available from the relevant State) long-form good standing certificate with
respect to such Grantor as of a date which is recent to the date hereof.

4.5.          Inventory
and Equipment.  On the date
hereof, the Inventory and the Equipment (other than mobile goods) are kept at
the locations listed on Schedule 5.

4.6.          Farm Products.  None of the Collateral constitutes, or is
the Proceeds of, Farm Products.

4.7.          Pledged
Securities.  (a)  The shares of Pledged Stock pledged by such
Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor (or 65% of
the voting Capital Stock of each Issuer that is an Excluded Foreign
Subsidiary).

(b)   All the shares of the Pledged Stock have been
duly and validly issued and are fully paid and nonassessable.

(c)   Each of the Intercompany Notes constitutes
the legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, and, to such Grantor’s knowledge,
each of the other Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, in each case, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.  No obligor with respect to any Pledged Note has any defense,
offset or contribution regarding payment of such Pledged Note.

(d)   Such Grantor is the record and beneficial
owner of, and has good and marketable title to, the Pledged Securities pledged
by it hereunder, free of any and all Liens or options in favor of, or claims
of, any other Person, except the security interest created by this Agreement
and liens permitted by the Credit Agreement which attach to such Pledged
Securities without such Grantor’s consent.

4.8.          Receivables.  (a) 
No amount payable to such Grantor under or in connection with any
Receivable is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Administrative Agent in accordance with the requirements
hereof.

(b)   On the date hereof, none of the obligors on any
Receivables is a Governmental Authority.

 

14

 

(c)   The amounts represented by such Grantor to
the Secured Parties from time to time as owing to such Grantor in respect of
the Receivables will at such times be accurate.

4.9.   [Reserved]

4.10.   Intellectual Property.  (a)  Schedule
6 lists, with respect to all Intellectual Property owned by such Grantor in
its own name on the date hereof, all Patents, registrations and applications
included in the Copyrights, registrations and applications included in the
Trademarks, registrations for domain names actively used by the Grantors, and
all written Copyright Licenses, Trademark Licenses and Patent Licenses that
grant exclusive rights to any of the Grantors.

(b)   On the date hereof, all material Intellectual
Property is valid, subsisting, unexpired, has not been abandoned and, to the
knowledge of such Grantor, is enforceable and does not infringe the
intellectual property rights of any other Person.

(c)   Except as set forth in Schedule 6, on
the date hereof, none of the material Intellectual Property is the subject of
any licensing or franchise agreement pursuant to which such Grantor is the
licensor or franchisor.

(d)   No final holding, decision or judgment has
been rendered by any Governmental Authority which would limit, cancel or
question the validity of, or such Grantor’s rights in, any Intellectual
Property in any respect that could reasonably be expected to have a Material
Adverse Effect, except that with respect to the Intellectual Property listed on
Schedule 6, such representation is to the knowledge of such Grantor.

(e)   No action or proceeding is pending, or, to
the knowledge of such Grantor, threatened, on the date hereof (i) seeking to
limit, cancel or question the validity of any Intellectual Property or such
Grantor’s ownership interest therein, or (ii) which, if adversely determined,
would have a Material Adverse Effect on the value of any Intellectual Property,
except that with respect to the Intellectual Property listed on Schedule 6,
such representation is to the knowledge of such Grantor.

4.11.   Vehicles.  On
the date hereof, the aggregate book value of all Vehicles owned by all Grantors
is less than $1,000,000.

SECTION 5.  COVENANTS

Each Grantor covenants and agrees with the
Administrative Agent and the Secured Parties that, from and after the date of
this Agreement until the Obligations shall have been paid in full, no Letter of
Credit shall be outstanding and the Commitments shall have terminated:

5.1.          Covenants
in the Credit Agreement.  In the
case of each Guarantor, such Guarantor shall take, or shall refrain from
taking, as the case may be, each action that is necessary to be taken or not
taken, as the case may be, so that no Default or Event of Default is caused by
the failure to take such action or to refrain from taking such action by such
Guarantor or any of its Subsidiaries.

 

15

 

5.2.          Delivery
of Instruments, Certificated Securities and Chattel Paper.  If any amount payable under or in connection
with any of the Collateral shall be or become evidenced by any Instrument,
Certificated Security or Chattel Paper, such Instrument, Certificated Security
or Chattel Paper shall be immediately delivered to the Administrative Agent,
duly indorsed in a manner satisfactory to the Administrative Agent, to be held
as Collateral pursuant to this Agreement.

5.3.          Maintenance
of Insurance.  (a)  Such Grantor will maintain, with financially
sound and reputable companies, insurance policies (i) insuring the Inventory,
Equipment and Vehicles against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Administrative Agent and
(ii) to the extent reasonably requested by the Administrative Agent, insuring
such Grantor against liability for personal injury and property damage relating
to such Inventory, Equipment and Vehicles, and naming the Administrative Agent
for the ratable benefit of the Secured Parties, as an additional insured party
or loss payee, such policies to be in such form and amounts and having such
coverage as are customary in the same general area for companies engaged in the
same or a similar business as such Grantor.

(b)   Such Guarantor shall not permit any cancellation,
material reduction in amount or material change in coverage of any of its
insurance policies to be effective until at least 30 days after receipt by the
Administrative Agent of written notice thereof. All such insurance shall
(i) name the Administrative Agent as an additional insured party or loss
payee, (ii) if reasonably requested by the Administrative Agent, include a
breach of warranty clause and (iii) be reasonably satisfactory in all
other respects to the Administrative Agent.

(c)   The Borrower shall deliver to the
Administrative Agent and the Lenders a report of a reputable insurance broker
with respect to such insurance substantially concurrently with the delivery by
the Borrower to the Administrative Agent of its audited financial statements for
each fiscal year and such supplemental reports with respect thereto as the
Administrative Agent may from time to time reasonably request.

(d)   So long as no Event of Default shall have
occurred and be continuing, all casualty payments shall be paid to the relevant
Grantor.  If an Event of Default has
occurred and is continuing, all casualty payments shall be paid to the
Administrative Agent for application pursuant to Section 2.7 of the Credit
Agreement.

5.4.          Payment
of Obligations.  Such Grantor
will pay and discharge or otherwise satisfy at or before maturity or before
they become delinquent, as the case may be, all taxes, assessments and
governmental charges or levies imposed upon the Collateral or in respect of
income or profits therefrom, as well as all claims of any kind (including,
without limitation, claims for labor, materials and supplies) against or with
respect to the Collateral, except that no such charge need be paid if the
amount or validity thereof is currently being contested in good faith by
appropriate proceedings, reserves in conformity with GAAP with respect thereto
have been provided on the books of such Grantor and such proceedings could not
reasonably be expected to result in the sale, forfeiture or loss of any
material portion of the Collateral or any material interest therein.

 

16

 

5.5.          Maintenance of Perfected Security
Interest; Further Documentation.  (a)  Such Grantor shall
maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 4.3 and
shall defend such security interest against the claims and demands of all
Persons whomsoever.

(b)   Such Grantor will furnish to the
Administrative Agent and the Lenders from time to time statements and schedules
further identifying and describing the Collateral and such other reports in
connection with the Collateral as the Administrative Agent may reasonably
request, all in reasonable detail.

(c)   At any time and from time to time, upon the
written request of the Administrative Agent, and at the sole expense of such
Grantor, such Grantor will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions
as the Administrative Agent may reasonably request for the purpose of obtaining
or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any financing
or continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of 
Investment Property,  taking any
actions necessary to enable the Administrative Agent to obtain “control”
(within the meaning of the applicable Uniform Commercial Code) with respect
thereto.

5.6.          Changes in
Name, etc.  Such Grantor
will not, except upon 10 days’ prior written notice to the Administrative Agent
and delivery to the Administrative Agent of 
all additional financing statements and other documents reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein:

(a)   change its jurisdiction of organization or
the location of its chief executive office or sole place of business from that
referred to in Section 4.3; or

(b)   change its name.

5.7.          Notices.  Such Grantor will advise the Administrative
Agent and the Lenders promptly, in reasonable detail, of:

(a)   any Lien (other than security interests
created hereby or Liens permitted under the Credit Agreement) on any of the
Collateral which would adversely affect the ability of the Administrative Agent
to exercise any of its remedies hereunder; and

(b)   of the occurrence of any other event which
could reasonably be expected to have a material adverse effect on the aggregate
value of the Collateral or on the security interests created hereby.

5.8.          Pledged
Securities.  (a)  If such Grantor shall become entitled to
receive or shall receive any stock certificate (including, without limitation,
any certificate representing a stock dividend or a distribution in connection
with any reclassification, increase or reduction of capital or any certificate
issued in connection with any reorganization), option or rights in respect of
the Capital Stock of any Issuer, whether in addition to, in substitution of, as
a conversion of,

 

17

 

or in exchange for, any shares of the Pledged Stock,
or otherwise in respect thereof, such Grantor shall accept the same as the
agent of the Administrative Agent and the Secured Parties, hold the same in
trust for the Administrative Agent and the Secured Parties and deliver the same
forthwith to the Administrative Agent in the exact form received, duly indorsed
by such Grantor to the Administrative Agent, if required, together with an
undated stock power covering such certificate duly executed in blank by such
Grantor and with, if the Administrative Agent so requests, signature
guaranteed, to be held by the Administrative Agent, subject to the terms
hereof, as additional collateral security for the Obligations; provided,
that in no event shall more than 65% of the voting Capital Stock of any Excluded
Foreign Subsidiary be required to be pledged hereunder.  Any sums paid upon or in respect of the
Pledged Securities upon the liquidation or dissolution of any Issuer shall be
paid over to the Administrative Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of
capital shall be made on or in respect of the Pledged Securities or any
property shall be distributed upon or with respect to the Pledged Securities
pursuant to the recapitalization or reclassification of the capital of any
Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected security interest in favor of
the Administrative Agent for the benefit of the Secured Parties, be delivered
to the Administrative Agent to be held by it hereunder as additional collateral
security for the Obligations.  If any
sums of money or property so paid or distributed in respect of the Pledged Securities
shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Administrative Agent, hold such money or
property in trust for the Secured Parties, segregated from other funds of such
Grantor, as additional collateral security for the Obligations; provided
that the Grantors may pay cash dividends as permitted by the Credit
Agreement.  Notwithstanding the
foregoing, the Grantors shall not be required to pay over to the Administrative
Agent or deliver to the Administrative Agent as Collateral any proceeds of any
liquidation or dissolution of any Issuer, or any distribution of capital or
property in respect of any Investment Property, to the extent that
(i) such liquidation, dissolution or distribution would be permitted by
the Credit Agreement and  (ii) the
proceeds thereof are applied toward prepayment of Loans and reduction of
Commitments to the extent required by the Credit Agreement.

(b)   Without the prior written consent of the
Administrative Agent, such Grantor will not (i) vote to enable, or take any
other action to permit, any Issuer to issue any stock or other equity
securities of any nature or to issue any other securities convertible into or
granting the right to purchase or exchange for any stock or other equity
securities of any nature of any Issuer, except to the extent that any such
securities so issued are pledged hereunder, (ii) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, the
Pledged Securities or Proceeds thereof (except pursuant to a transaction
expressly permitted by the Credit Agreement), (iii) create, incur or permit to
exist any Lien or option in favor of, or any claim of any Person with respect
to, any of the Pledged Securities or Proceeds thereof, or any interest therein,
except for the security interests created by this Agreement and liens permitted
by the Credit Agreement which attach to such Pledged Securities without such
Grantor’s consent or (iv) enter into any agreement or undertaking (other than
the Loan Documents and the Capital Markets Indentures) restricting the right or
ability of such Grantor or the Administrative Agent to sell, assign or transfer
any of the Pledged Securities or Proceeds thereof.

(c)   In the case of each Grantor which is an
Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Pledged Securities issued by it and

 

18

 

will comply with such terms
insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) with respect to the Pledged Securities issued by it
and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it
pursuant to Section 6.3(c) or 6.7 with respect to the Pledged Securities issued
by it.

(d)   Each Issuer that is a partnership or a
limited liability company (i) confirms that none of the terms of any equity interest
issued by it provides that such equity interest is a “security” within the
meaning of Sections 8-102 and 8-103 of the New York UCC (a “Security”),
(ii) agrees that it will take no action to cause or permit any such equity
interest to become a Security, (iii) agrees that it will not issue any
certificate representing any such equity interest and (iv) agrees that if,
notwithstanding the foregoing, any such equity interest shall be or become a
Security, such Issuer will (and the Grantor that holds such equity interest
hereby instructs such Issuer to) comply with instructions originated by the
Administrative Agent without further consent by such Grantor.

5.9.          Receivables.  (a) 
Other than in the ordinary course of business consistent with its past
practice, such Grantor will not (i) grant any extension of the time of payment
of any material Receivable, (ii) compromise or settle any material Receivable
for less than the full amount thereof, (iii) release, wholly or partially, any
Person liable for the payment of any material Receivable, (iv) allow any credit
or discount whatsoever on any material Receivable or (v) amend, supplement or
modify any material Receivable in any manner that could adversely affect the
value thereof.

(b)   Such Grantor will deliver to the
Administrative Agent a copy of each material demand, notice or document
received by it that questions or calls into doubt the validity or
enforceability of more than 5% of the aggregate amount of the then outstanding
Receivables.

5.10.   [Reserved]

5.11.   Intellectual Property.  (a) 
Such Grantor (either itself or through licensees) will (i) continue to
use each material Trademark in order to maintain such Trademark in full force
free from any claim of abandonment for non-use, except in connection with
Dispositions permitted pursuant to Section 6.5 of the Credit Agreement or the
non-use of a given Trademark for specific goods and services in the ordinary
course of business, (ii) maintain as in the past the quality of products and
services offered under such Trademark, and (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required
by applicable Requirements of Law.

(b)   Such Grantor (either itself or through
licensees) will not (and not permit any licensee or sublicensee thereof to)
knowingly do any act or knowingly omit to do any act whereby any (i) material
Trademark may become invalidated or impaired in any way, (ii) material Patent
may become forfeited, abandoned or dedicated to the public, or (iii) material
Copyrights may become invalidated or otherwise impaired or fall into the public
domain.

(c)   Such Grantor (either itself or through
licensees) will not knowingly do any act that infringes the intellectual
property rights of any other Person.

 

19

 

(d)   Such Grantor will notify the Administrative
Agent and the Lenders immediately if it knows, or has reason to know, that any
application or registration relating to any material Intellectual Property has
become, or is reasonably likely to become, forfeited, abandoned or dedicated to
the public, or of any material adverse determination or development (including,
without limitation, the institution of, or any such material determination or
development in, any proceeding in the United States Patent and Trademark
Office, the United States Copyright Office or any court or tribunal in any
country) regarding such Grantor’s ownership of, or the validity of, any
material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

(e)   To the extent a breach of Sections 5.11(a),
(b), (c) or (d) would result in an Event of Default, it shall not be considered
an Event of Default if such breach is cured within 30 days after written notice
from the Administrative Agent and results in no Material Adverse Affect to the
affected Intellectual Property.

(f)    Whenever such Grantor, either by itself or
through any agent, employee, licensee or designee, shall file an application
for the registration of any Intellectual Property with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, as
applicable, such Grantor shall report such filing to the Administrative Agent
within 30 Business Days after the last day of the fiscal quarter in which such
filing occurs, provided that failure to give notice shall not be deemed an
Event of Default if notice is given with reasonable time such that there is no
Material Adverse Effect.  Upon written
request of the Administrative Agent, such Grantor shall execute and deliver,
and have recorded, any and all agreements, instruments, documents, and papers
as the Administrative Agent may reasonably request to evidence the
Administrative Agent’s and the Secured Parties’ security interest in any
Copyright, Patent or Trademark and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby, to the extent such security
interest may be perfected by filings with a Governmental Authority in the
United States.

(g)   Consistent with such Grantor’s reasonable
business judgment, such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States
Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof, as
applicable, to maintain and pursue each application (and to obtain the relevant
registration) and to maintain each registration of the material Intellectual
Property, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

(h)   In the event that any Grantor becomes aware
that any material Intellectual Property is infringed, misappropriated or
diluted by a third party, such Grantor shall (i) take such actions as such
Grantor shall reasonably deem appropriate under the circumstances to protect
such Intellectual Property and (ii) promptly notify the Administrative Agent
after it learns thereof and take such action against such third party as it
reasonably deems appropriate under the circumstances, including, without
limitation, suing for infringement, misappropriation or dilution, seeking
injunctive relief where appropriate and recovering any and all damages for such
infringement, misappropriation or dilution.

 

20

 

5.12.   Deposit Accounts.  Upon the request of the Administrative Agent at any time when an
Event of Default shall have occurred and be continuing, promptly take all
actions necessary to cause the Administrative Agent to have “control” (within
the meaning of Section 9-314 of the New York UCC) of any Deposit Account of any
Grantor in which the daily average amount on deposit, during the 30-day period
preceding such request by the Administrative Agent, was in excess of
$1,000,000.

SECTION
6.  REMEDIAL PROVISIONS

6.1.          Certain Matters Relating to
Receivables.  (a)  The Administrative Agent shall have the
right to make test verifications of the Receivables in any manner and through
any medium that it reasonably considers advisable, and each Grantor shall
furnish all such assistance and information as the Administrative Agent may
require in connection with such test verifications.  At any time and from time to time, upon the Administrative
Agent’s request and at the expense of the relevant Grantor, such Grantor shall
cause independent public accountants or others satisfactory to the
Administrative Agent to furnish to the Administrative Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Receivables, but not more frequently than annually if no Event of Default shall
have occurred and be continuing; provided, however, that if no
Event of Default shall have occurred and be continuing, the Administrative
Agent may not contact any obligor under any Receivable in its own name.

(b)   The Administrative Agent hereby authorizes
each Grantor to collect such Grantor’s Receivables, subject to the
Administrative Agent’s direction and control, and the Administrative Agent may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default.  If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent if
required, in a Collateral Account maintained under the sole dominion and
control of the Administrative Agent, subject to withdrawal by the Administrative
Agent for the account of the Secured Parties only as provided in Section 6.5,
and (ii) until so turned over, shall be held by such Grantor in trust for the
Administrative Agent and the Secured Parties, segregated from other funds of
such Grantor.  Each such deposit of
Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the
deposit.

(c)   At the Administrative Agent’s request, each
Grantor shall deliver to the Administrative Agent all original and other
documents evidencing, and relating to, the agreements and transactions which
gave rise to the Receivables, including, without limitation, all original
orders, invoices and shipping receipts.

 

21

 

6.2.          Communications
with Obligors; Grantors Remain Liable.  (a)  The Administrative
Agent in its own name or in the name of others may at any time after the
occurrence and during the continuance of an Event of Default communicate with
obligors under the Receivables to verify with them to the Administrative
Agent’s satisfaction the existence, amount and terms of any Receivables.

(b)   Upon the request of the Administrative Agent
at any time after the occurrence and during the continuance of an Event of
Default, each Grantor shall notify obligors on the Receivables that the
Receivables have been assigned to the Administrative Agent for the ratable
benefit of the Secured Parties and that payments in respect thereof shall be
made directly to the Administrative Agent.

(c)   Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the Receivables
to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto.  Neither the
Administrative Agent nor any Secured Party shall have any obligation or
liability under any Receivable (or any agreement giving rise thereto) or
Contract by reason of or arising out of this Agreement or the receipt by the
Administrative Agent or any Secured Party of any payment relating thereto, nor
shall the Administrative Agent or any Secured Party be obligated in any manner
to perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto) or Contract, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party thereunder,
to present or file any claim, to take any action to enforce any performance or
to collect the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times.

6.3.          Pledged Stock.  (a) Unless an Event of Default shall have
occurred and be continuing and the Administrative Agent shall have given notice
to the relevant Grantor of the Administrative Agent’s intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted
to receive all cash dividends and other distributions paid in respect of the
Pledged Stock and all payments made in respect of the Pledged Notes, in each
case paid in the normal course of business of the relevant Issuer and
consistent with past practice, to the extent permitted in the Credit Agreement,
and to exercise all voting and corporate rights with respect to the Pledged
Securities; provided, however, that no vote shall be cast or
corporate right exercised or other action taken which would impair the
Collateral in any material respect or which would result in any violation of
any provision of the Credit Agreement, this Agreement or any other Loan
Document.

(b)   If an Event of Default shall occur and be
continuing and the Administrative Agent shall give notice of its intent to
exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash
dividends, payments or other Proceeds paid in respect of the Pledged Securities
and make application thereof to the Obligations in the order set forth in
Section 6.5, and (ii) any or all of the Pledged Securities shall be registered
in the name of the Administrative Agent or its nominee, and the Administrative
Agent or its nominee may thereafter exercise (x) all voting, corporate and
other rights pertaining to such Pledged Securities at any meeting of
shareholders of the relevant Issuer or Issuers or otherwise and (y) any
and all rights of conversion, exchange and subscription and any other

 

22

 

rights, privileges or
options pertaining to such Pledged Securities as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Pledged Securities upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
structure of any Issuer, or upon the exercise by any Grantor or the
Administrative Agent of any right, privilege or option pertaining to such
Pledged Securities, and in connection therewith, the right to deposit and
deliver any and all of the Pledged Securities with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege
or option and shall not be responsible for any failure to do so or delay in so
doing.

(c)   Each Grantor hereby authorizes and instructs
each Issuer of any Pledged Securities pledged by such Grantor hereunder to (i)
comply with any instruction received by it from the Administrative Agent in
writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without
any other or further instructions from such Grantor, and each Grantor agrees
that each Issuer shall be fully protected in so complying, and (ii) unless
otherwise expressly permitted hereby, pay any dividends or other payments with
respect to the Pledged Securities directly to the Administrative Agent.

6.4.          Proceeds
to be Turned Over To Administrative Agent.  In addition to the rights of the
Administrative Agent and the Secured Parties specified in Section 6.1 with
respect to payments of Receivables, if an Event of Default shall occur and be
continuing, all Proceeds received by any Grantor consisting of cash, checks and
other near-cash items shall be held by such Grantor in trust for the
Administrative Agent and the Secured Parties, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over
to the Administrative Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative
Agent hereunder shall be held by the Administrative Agent in a Collateral
Account maintained under its sole dominion and control.  All Proceeds while held by the
Administrative Agent in a Collateral Account (or by such Grantor in trust for
the Administrative Agent and the Secured Parties) shall continue to be held as
collateral security for all the Obligations and shall not constitute payment
thereof until applied as provided in Section 6.5.

6.5.          Application
of Proceeds.  If an Event of
Default shall have occurred and be continuing, at any time at the
Administrative Agent’s election, the Administrative Agent may apply all or any
part of Proceeds constituting Collateral, whether or not held in any Collateral
Account, and any proceeds of the guarantee set forth in Section 2, in payment
of the Obligations in the following order:

First, to pay incurred and unpaid fees and expenses of the
Administrative Agent under the Loan Documents;

Second, to the Administrative Agent, for application by it
towards payment of amounts then due and owing and remaining unpaid in respect
of the Obligations, pro  rata

 

23

 

among the Secured Parties
according to the amounts of the Obligations then due and owing and remaining
unpaid to the Secured Parties;

Third, to the Administrative Agent, for application by it
towards prepayment of the Obligations, pro  rata among the Secured
Parties according to the amounts of the Obligations then held by the Secured
Parties;

Fourth, to the Administrative Agent, for application by it
towards replacement of outstanding Letters of Credit and/or deposit an amount
in cash in a cash collateral account established with the Administrative Agent
for the benefit of the Secured Parties on terms and conditions satisfactory to
the Administrative Agent and each applicable Issuing Lender; and

Fifth, any balance of such Proceeds remaining after the
Obligations shall have been paid in full, no Letters of Credit shall be
outstanding and the Commitments shall have terminated shall be paid over to the
Borrower or to whomsoever may be lawfully entitled to receive the same.

6.6.          Code
and Other Remedies.  If an Event
of Default shall occur and be continuing, the Administrative Agent, on behalf
of the Secured Parties, may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the New York UCC or any other applicable
law.  Without limiting the generality of
the foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do
any of the foregoing), in one or more parcels at public or private sale or
sales, at any exchange, broker’s board or office of the Administrative Agent or
any Secured Party or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk.  The Administrative Agent or any Secured
Party shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and
released.  Each Grantor further agrees,
at the Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative Agent at places which the Administrative Agent
shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall apply the
proceeds of any action taken by it pursuant to this Section 6.6, after
deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and the Secured Parties hereunder, including, without
limitation, reasonable attorneys’ fees and disbursements, to the payment in
whole or in part of the Obligations, in such order as the Administrative Agent
may elect, and only after such application and after the payment by the
Administrative Agent of any other

 

24

 

amount required by any provision of law, including,
without limitation, Section 9-615(a)(3) of the New York UCC, need the
Administrative Agent account for the surplus, if any, to any Grantor.  To the extent permitted by applicable law,
each Grantor waives all claims, damages and demands it may acquire against the
Administrative Agent or any Secured Party arising out of the exercise by them
of any rights hereunder.  If any notice
of a proposed sale or other disposition of Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.

6.7.          Registration
Rights.  (a)  If the Administrative Agent shall determine
to exercise its right to sell any or all of the Pledged Stock pursuant to
Section 6.6, and if in the opinion of the Administrative Agent it is necessary
or advisable to have the Pledged Stock, or that portion thereof to be sold,
registered under the provisions of the Securities Act, the relevant Grantor
will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as
may be, in the opinion of the Administrative Agent, necessary or advisable to register
the Pledged Stock, or that portion thereof to be sold, under the provisions of
the Securities Act, (ii) use its best efforts to cause the registration
statement relating thereto to become effective and to remain effective for a
period of one year from the date of the first public offering of the Pledged
Stock, or that portion thereof to be sold, and (iii) make all amendments
thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto.  Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Administrative Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) which will satisfy the provisions of
Section 11(a) of the Securities Act.

(b)   Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof.  Each Grantor
acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

(c)   Each Grantor agrees to use its best efforts
to do or cause to be done all such other acts as may be necessary to make such
sale or sales of all or any portion of the Pledged Stock pursuant to this
Section 6.7 valid and binding and in compliance with any and all other
applicable Requirements of Law.  Each
Grantor further agrees that a breach of any of the covenants contained in this
Section 6.7 will cause irreparable injury to the Administrative Agent and the
Secured Parties, that the Administrative Agent and the Secured Parties have no
adequate 

 

25

 

remedy at law in respect of
such breach and, as a consequence, that each and every covenant contained in
this Section 6.7 shall be specifically enforceable against such Grantor, and
such Grantor hereby waives and agrees not to assert any defenses against an
action for specific performance of such covenants except for a defense that no
Event of Default has occurred.

6.8.          Waiver;
Deficiency.  Each Grantor shall
remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay its Obligations and the
fees and disbursements of any attorneys employed by the Administrative Agent or
any Secured Party to collect such deficiency.

SECTION
7.  THE ADMINISTRATIVE AGENT

7.1.          Administrative
Agent’s Appointment as Attorney-in-Fact, etc.  (a) 
Each Grantor hereby irrevocably constitutes and appoints the
Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power
and authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

(i)            in the name of such Grantor or its
own name, or otherwise, take possession of and indorse and collect any checks,
drafts, notes, acceptances or other instruments for the payment of moneys due
under any Receivable or Contract or with respect to any other Collateral and
file any claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Administrative Agent for the
purpose of collecting any and all such moneys due under any Receivable or
Contract or with respect to any other Collateral whenever payable;

(ii)           in the case of any Intellectual
Property, execute and deliver, and have recorded, any and all agreements,
instruments, documents and papers as the Administrative Agent may request to
evidence the Administrative Agent’s and the Secured Parties’ security interest
in such Intellectual Property and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby;

(iii)          pay or discharge taxes and Liens
levied or placed on or threatened against the Collateral, effect any repairs or
any insurance called for by the terms of this Agreement and pay all or any part
of the premiums therefor and the costs thereof;

(iv)          execute, in connection with any sale
provided for in Section 6.6 or 6.7, any indorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral; and

(v)           (1) direct any party liable for any
payment under any of the Collateral to make payment of any and all moneys due
or to become due thereunder directly to the

 

26

 

Administrative Agent or as
the Administrative Agent shall direct; (2) ask or demand for, collect, and
receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral; (3) sign and indorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the
Collateral; (4) commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral
or any portion thereof and to enforce any other right in respect of any
Collateral; (5) defend any suit, action or proceeding brought against such
Grantor with respect to any Collateral; (6) settle, compromise or adjust any
such suit, action or proceeding and, in connection therewith, give such
discharges or releases as the Administrative Agent may deem appropriate; (7)
assign any Copyright, Patent or Trademark (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), throughout
the world for such term or terms, on such conditions, and in such manner, as
the Administrative Agent shall in its sole discretion determine; and (8)
generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do,
at the Administrative Agent’s option and such Grantor’s expense, at any time,
or from time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s and the Secured Parties’ security interests therein and
to effect the intent of this Agreement, all as fully and effectively as such
Grantor might do.

Anything in this Section 7.1(a) to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any
rights under the power of attorney provided for in this Section 7.1(a) unless
an Event of Default shall have occurred and be continuing.

(b)   If any Grantor fails to perform or comply
with any of its agreements contained herein, the Administrative Agent, at its
option following notice to such Grantor of such failure, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

(c)   The expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this Section 7.1,
together with interest thereon at a rate per annum equal to the rate per annum
at which interest would then be payable on past due Revolving Credit Loans that
are Base Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Administrative Agent on demand.

(d)   Each Grantor hereby ratifies all that said
attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

7.2.          Duty
of Administrative Agent.  The
Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession,

 

27

 

under Section 9-207 of the New York UCC or otherwise,
shall be to deal with it in the same manner as the Administrative Agent deals
with similar property for its own account. 
Neither the Administrative Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure
to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the Secured Parties hereunder are solely to protect the
Administrative Agent’s and the Secured Parties’ interests in the Collateral and
shall not impose any duty upon the Administrative Agent or any Secured Party to
exercise any such powers.  The
Administrative Agent and the Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act hereunder,
except for their own gross negligence or willful misconduct.

7.3.          Financing
Statements.  Pursuant to the New
York UCC or any other applicable law, each Grantor authorizes the
Administrative Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the
signature of such Grantor in such form and in such offices as the
Administrative Agent reasonably determines appropriate to perfect the security
interests of the Administrative Agent under this Agreement.  Each Grantor authorizes the Administrative
Agent to use the collateral description “all personal property” or “all assets”
in any such financing statements.  Each Grantor
hereby ratifies and authorizes the filing by the Administrative Agent of any
financing statement with respect to the Collateral made prior to the date
hereof.

7.4.          Authority of Administrative Agent.  Each Grantor acknowledges that the rights
and responsibilities of the Administrative Agent under this Agreement with
respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Administrative Agent and the
Lenders, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Lenders with full and valid
authority so to act or refrain from acting, and no Grantor or other Person
(except a Lender) shall be under any obligation, or entitlement, to make any
inquiry respecting such authority. 
Notwithstanding any other provision herein or in any Loan Document, the
only duty or responsibility of the Administrative Agent to any Qualified Counterparty
or to any Foreign Currency L/C Issuing Lender, in its capacity as such, under
this Agreement is the duty to remit to such Qualified Counterparty or such
Foreign Currency L/C Issuing Lender any amounts to which it is entitled
pursuant to Section 6.5.

SECTION
8.  MISCELLANEOUS

8.1.          Amendments
in Writing.  None of the terms
or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Section 9.1 of the Credit
Agreement.

28

 

8.2.          Notices.  All notices, requests and demands to or upon
the Administrative Agent or any Grantor hereunder shall be effected in the
manner provided for in Section 9.2 of the Credit Agreement; provided
that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1.

8.3.          No
Waiver by Course of Conduct; Cumulative Remedies.  Neither the Administrative Agent nor any
Secured Party shall by any act (except by a written instrument pursuant to
Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy hereunder or to have acquiesced in any Default or Event of
Default.  No failure to exercise, nor
any delay in exercising, on the part of the Administrative Agent or any Secured
Party, any right, power or privilege hereunder shall operate as a waiver
thereof.  No single or partial exercise
of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent or any
Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Administrative Agent or
such Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

8.4.          Enforcement
Expenses; Indemnification. 
(a)  Each Guarantor agrees to pay
or reimburse each Secured Party and the Administrative Agent for all its costs
and expenses incurred in collecting against such Guarantor under the guarantee
contained in Section 2 or otherwise enforcing or preserving any rights under
this Agreement and the other Loan Documents to which such Guarantor is a party,
including, without limitation, the fees and disbursements of counsel (including
the allocated fees and expenses of in-house counsel) to each Secured Party and
of counsel to the Administrative Agent.

(b)   Each Guarantor agrees (subject to Section
2.15 of the Credit Agreement) to pay, and to save the Administrative Agent and
the Secured Parties harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other
taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by this
Agreement.

(c)   Each Guarantor agrees to pay, and to save the
Administrative Agent and the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement to the extent the Borrower would be required to do so
pursuant to Section 9.5 of the Credit Agreement.

(d)   The agreements in this Section shall survive
repayment of the Obligations and all other amounts payable under the Credit
Agreement and the other Loan Documents.

8.5.          Successors
and Assigns.  This Agreement
shall be binding upon the successors and assigns of each Grantor and shall
inure to the benefit of the Administrative Agent and the Secured Parties and
their successors and assigns; provided that no Grantor may assign,
transfer or delegate any of its rights or obligations under this Agreement
(except by operation of

 

29

 

law as a result of a merger permitted by the Credit
Agreement) without the prior written consent of the Administrative Agent and
each Lender and any attempted such assignment, transfer or delegation without
such consents shall be null and void.

8.6.          Set-Off.  Each Grantor hereby irrevocably authorizes
the Administrative Agent and each Secured Party at any time and from time to
time while an Event of Default shall have occurred and be continuing, without
notice to such Grantor or any other Grantor, any such notice being expressly
waived by each Grantor, to set off and appropriate and apply any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Administrative Agent or such
Secured Party to or for the credit or the account of such Grantor, or any part
thereof in such amounts as the Administrative Agent or such Secured Party may
elect, against and on account of the obligations and liabilities of such
Grantor to the Administrative Agent or such Secured Party hereunder and claims
of every nature and description of the Administrative Agent or such Secured
Party against such Grantor, in any currency, whether arising hereunder, under
the Credit Agreement, under any other Loan Document or otherwise, as the
Administrative Agent or such Secured Party may elect, whether or not the
Administrative Agent or any Secured Party has made any demand for payment and
although such obligations, liabilities and claims may be contingent or
unmatured.  The Administrative Agent and
each Secured Party shall notify such Grantor promptly of any such set-off and
the application made by the Administrative Agent or such Secured Party of the
proceeds thereof, provided that the failure to give such notice shall
not affect the validity of such set-off and application.  The rights of the Administrative Agent and
each Secured Party under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the
Administrative Agent or such Secured Party may have.

8.7.          Counterparts.  This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

8.8.          Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

8.9.          Section
Headings.  The Section headings
used in this Agreement are for convenience of reference only and are not to
affect the construction hereof or be taken into consideration in the
interpretation hereof.

8.10.      Integration. 
This Agreement and the other Loan Documents represent the entire
agreement of the Grantors, the Administrative Agent and the Secured Parties
with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Secured Party relative to subject matter hereof and thereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

30

 

8.11.      GOVERNING LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

8.12.      Submission To Jurisdiction; Waivers.  Each Grantor hereby irrevocably and
unconditionally:

(a)   submits for itself and its property in any
legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of
the Courts of the State of New York, the courts of the United States of
America for the Southern District of New York, and appellate courts from
any thereof;

(b)   consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;

(c)   agrees that service of process in any such
action or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
such Grantor at its address referred to in Section 8.2 or at such other address
of which the Administrative Agent shall have been notified pursuant thereto;

(d)   agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

(e)   waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

8.13.      Acknowledgments.  Each Grantor hereby acknowledges that:

(a)   it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party;

(b)   neither the Administrative Agent nor any
Secured Party has any fiduciary relationship with or duty to any Grantor
arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Grantors, on the one hand, and the
Administrative Agent and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

(c)   no joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Grantors and the
Secured Parties.

 

31

 

8.14.     Additional Grantors.  Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 5.10 of the
Credit Agreement  shall become a Grantor
for all purposes of this Agreement upon execution and delivery by such
Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

8.15.     Releases.  (a)            At such time as the Borrower
Revolving Credit Obligations and any obligations owing pursuant to this
Agreement shall have been indefeasibly paid in full, the Commitments have been
terminated and no Letters of Credit shall be outstanding, the Collateral shall
be released from the Liens created hereby, and this Agreement and all
obligations (other than those expressly stated to survive such termination) of
the Administrative Agent and each Grantor hereunder shall terminate, all
without delivery of any instrument or performance of any act by any party, and
all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to such Grantor any Collateral held by the Administrative Agent hereunder, and
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such termination.

(b)   If any of the Collateral shall be sold,
transferred or otherwise disposed of by any Grantor in a transaction permitted
by the Credit Agreement, then the Administrative Agent, at the request and sole
expense of such Grantor, shall execute and deliver to such Grantor all releases
or other documents reasonably necessary or desirable for the release of the
Liens created hereby on such Collateral. 
At the request and sole expense of the Borrower, a Subsidiary Guarantor
shall be released from its obligations hereunder in the event that all the
Capital Stock of such Subsidiary Guarantor shall be sold, transferred or
otherwise disposed of in a transaction permitted by the Credit Agreement; provided
that the Borrower shall have delivered to the Administrative Agent, at least 10
Business Days prior to the date of the proposed release, a written request for
release identifying the relevant Subsidiary Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof and any
expenses in connection therewith, together with a certification by the Borrower
stating that such transaction is in compliance with the Credit Agreement and
the other Loan Documents.

(c)   No consent of any Qualified Counterparty or
Foreign Currency L/C Issuing Lender, in its capacity as such, shall be required
for any action under this Agreement, the Credit Agreement or the other Loan
Documents, including, without limitation, 
release of Collateral or Guarantors pursuant to this Section.

8.16   WAIVER OF
JURY TRIAL. 
EACH
GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH AGENT AND EACH SECURED
PARTY, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN.

 

32

 

IN WITNESS WHEREOF, each of the undersigned has caused
this Guarantee and Collateral Agreement to be duly executed and delivered as of
the date first above written.

 

	
   

  	
  B&G FOODS, INC.

  
	
   

  	
  BGH  HOLDINGS, INC.

  
	
   

  	
  BLOCH & GUGGENHEIMER, INC.

  
	
   

  	
  POLANER, INC.

  
	
   

  	
  TRAPPEY’S FINE FOODS,
  INC.

  
	
   

  	
  MAPLE GROVE FARMS OF
  VERMONT, INC.

  
	
   

  	
  HERITAGE ACQUISITION
  CORP.

  
	
   

  	
  ORTEGA HOLDINGS INC.

  
	
   

  	
  WILLIAM UNDERWOOD
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  	
   

  
	
   

  	
   

  	
  Name:  Robert C. Cantwell

  
	
   

  	
   

  	
  Title:

  

 

 

33

 

 

 

Schedule 1

NOTICE ADDRESSES OF GUARANTORS

 

34

 

 

Schedule 2

 

DESCRIPTION OF PLEDGED SECURITIES

Pledged
Stock:

 

	
  Issuer

  	
   

  	
  Class of Stock

  	
   

  	
  Stock Certificate No.

  	
   

  	
  No. of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

Pledged
Notes:

 

	
  Issuer

  	
   

  	
  Payee

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

Schedule 3

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

Uniform Commercial Code Filings

[List each office where a financing statement is to be
filed]

 

Patent and Trademark Filings

[List all filings]

 

 

Actions with respect to Pledged Stock

 

Other Actions

 

[Describe other actions to be taken]

Schedule 4

JURISDICTION OF
ORGANIZATION, IDENTIFICATION NUMBER AND

LOCATION OF CHIEF EXECUTIVE OFFICE

 

 

	
   

  	
   

  	
  Jurisdiction of

  	
   

  	
  Identification

  	
   

  	
  Location of Chief

  
	
  Grantor

  	
   

  	
  Organization

  	
   

  	
  Number      

  	
   

  	
  Executive Office

  

 

 

 

Schedule 5

 

LOCATION OF INVENTORY AND
EQUIPMENT

 

	
  Grantor

  	
   

  	
  Locations

  

 

 

Schedule 6

 

COPYRIGHTS AND COPYRIGHT LICENSES

 

PATENTS AND PATENT LICENSES

 

TRADEMARKS AND TRADEMARK LICENSES

Schedule 7

EXISTING PRIOR LIENS

 

 

ACKNOWLEDGMENT AND CONSENT

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of October 14, 2004 (the “Agreement”),
made by the Grantors parties thereto for the benefit of Lehman Commercial Paper
Inc., as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Secured
Parties as follows:

1.             The
undersigned will notify the Administrative Agent promptly in writing of the
occurrence of any of the events described in Section 5.8(a) of the Agreement
with respect to the Pledged Securities issued by it.

2.             The
terms of Sections 6.7 of the Agreement shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to Section 6.7
of the Agreement.

 

	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fax: 

  	
   

  

 

Exhibit 10.2

Annex 1 to

Guarantee and Collateral Agreement

ASSUMPTION AGREEMENT, dated as of [                           ],
made by [                           ]
(the “Additional Grantor”), in favor of LEHMAN COMMERCIAL PAPER INC., as
administrative agent (in such capacity, the “Administrative Agent”) for
the banks and other financial institutions (the “Lenders”) parties to
the Credit Agreement referred to below. 
All capitalized terms not defined herein shall have the meaning ascribed
to them in the Credit Agreement.

W  I  T  N
E  S  S  E  T  H :

WHEREAS, B&G FOODS, INC. (the “Borrower”),
the Lenders, the Administrative Agent, and others have entered into the Credit
Agreement, dated as of October 14, 2004 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”);

WHEREAS, in connection with the Credit Agreement, the
Borrower and certain of its Affiliates (other than the Additional Grantor) have
entered into the Guarantee and Collateral Agreement, dated as of October 14,
2004 (as amended, supplemented or otherwise modified from time to time, the “Guarantee
and Collateral Agreement”), in favor of the Administrative Agent, for the
ratable benefit of the Lenders;

WHEREAS, the Credit Agreement requires the Additional
Grantor to become a party to the Guarantee and Collateral Agreement; and

WHEREAS, the Additional Grantor has agreed to execute
and deliver this Assumption Agreement in order to become a party to the
Guarantee and Collateral Agreement;

NOW, THEREFORE, IT IS AGREED:

Guarantee and Collateral Agreement. 
By executing and delivering this Assumption Agreement, the Additional
Grantor, as provided in Section 8.14 of the Guarantee and Collateral Agreement,
hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor
thereunder with the same force and effect as if originally named therein as a
Grantor and, without limiting the generality of the foregoing, hereby expressly
assumes all obligations and liabilities of a Grantor thereunder.  The information set forth in Annex 1-A
hereto is hereby added to the information set forth in Schedules
____________*** to the Guarantee and Collateral Agreement.  The Additional Grantor hereby represents and
warrants that, with respect to itself, each of the representations and
warranties contained in Section 4 of the Guarantee and Collateral Agreement is
true and correct on and as the date hereof (after giving effect to this
Assumption Agreement) as if made on and as of such date.

***  Refer to each Schedule which needs to be
supplemented.

 

 

 

GOVERNING
LAW. 
THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

IN WITNESS WHEREOF, the undersigned has caused this
Assumption Agreement to be duly executed and delivered as of the date first
above written.

	
   

  	
  [ADDITIONAL GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit
10.3

 

EXECUTION COPY

 

SECOND AMENDED AND RESTATED

SECURITIES HOLDERS AGREEMENT

 

dated as of October 14, 2004

among

 

B&G FOODS HOLDINGS CORP.

 

BRUCKMANN, ROSSER, SHERRILL & CO., L.P.,

 

CANTERBURY MEZZANINE CAPITAL II, L.P.,

 

PROTOSTAR EQUITY PARTNERS, L.P.

 

and

 

MANAGEMENT STOCKHOLDERS

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  I

  	
  REPRESENTATIONS, WARRANTIES AND COVENANTS OF B&G FOODS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  Representations, Warranties and Covenants of B&G Foods

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  REPRESENTATIONS, WARRANTIES AND COVENANTS OF EACH STOCKHOLDER

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Representations, Warranties and Covenants
  of Each Stockholder

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2.

  	
  Legend

  	
   

  
	
   

  	
   

  	
   

  
	
  2.3.

  	
  Provisions
  Regarding Transfers of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  2.4.

  	
  Notation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.5.

  	
  Limitation
  on Repurchase of Securities and Dividend Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  2.6.

  	
  Restrictions on Acquisition of Senior
  Subordinated Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  2.7.

  	
  Lock-Up
  Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  2.8.

  	
  Reliance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  OTHER COVENANTS AND REPRESENTATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Covenant
  Not to Compete

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
  CORPORATE ACTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Directors

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2.

  	
  Right
  to Remove Certain of B&G Foods’ Directors

  	
   

  
	
   

  	
   

  	
   

  
	
  4.3.

  	
  Right
  to Fill Certain Vacancies in B&G Foods’ Board

  	
   

  
	
   

  	
   

  	
   

  
	
  4.4.

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  CLASS B COMMON STOCK REPURCHASES

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Class
  B Common Stock Repurchases

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
  REGISTRATION RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  AMENDMENT AND RESTATEMENT; REPURCHASE OF PREFERRED STOCK, CLASS B
  COMMON STOCK, WARRANTS AND OPTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Amendment and Restatement of Existing Securities Holders Agreement;
  Approvals of Initial Public Offering Transactions

  	
   

  
	
   

  	
   

  	
   

  
	
  7.2.

  	
  Repurchase Upon Initial Public Offering

  	
   

  
	
   

  	
   

  	
   

  
	
  7.3.

  	
  Repurchase Upon Exercise of the
  Over-Allotment Option

  	
   

  
	
   

  	
   

  	
   

  
	
  7.4.

  	
  Repurchase
  Price

  	
   

  

 

i

 

	
  7.5.

  	
  Adjustments
  Upon Partial Exercise of Over-Allotment Option

  	
   

  
	
   

  	
   

  	
   

  
	
  7.6.

  	
  Payment
  of the Purchase Price

  	
   

  
	
   

  	
   

  	
   

  
	
  7.7.

  	
  Exercise
  of Remaining Existing Warrants Following IPO and Expiration of Over-Allotment
  Option

  	
   

  
	
   

  	
   

  	
   

  
	
  7.6.

  	
  Release
  From Liability

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Amendment and Modification

  	
   

  
	
   

  	
   

  	
   

  
	
  8.2.

  	
  Survival of Representations and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3.

  	
  Successors
  and Assigns; Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4.

  	
  Separability

  	
   

  
	
   

  	
   

  	
   

  
	
  8.5.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  8.6.

  	
  Governing
  Law

  	
   

  
	
   

  	
   

  	
   

  
	
  8.7.

  	
  Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  8.8.

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  8.9.

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  8.10.

  	
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  8.11.

  	
  Party
  No Longer Owning Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  8.12.

  	
  No
  Effect on Employment

  	
   

  
	
   

  	
   

  	
   

  
	
  8.13.

  	
  Pronouns

  	
   

  

 

ii

 

SECOND AMENDED AND RESTATED SECURITIES
HOLDERS AGREEMENT

 

SECOND AMENDED AND RESTATED SECURITIES HOLDERS AGREEMENT, dated as of
October 14, 2004 (the “Agreement”), by and among (1) B&G FOODS
HOLDINGS CORP., a Delaware corporation (“B&G Foods”), (2) BRUCKMANN,
ROSSER, SHERRILL & CO., L.P., a Delaware limited partnership (“BRS”), the
individuals listed on Exhibit A hereto as the BRS Stockholders (the “BRS
Stockholders” and, together with BRS and their respective BRS Permitted
Transferees, the “BRS Entities”), (3) CANTERBURY MEZZANINE CAPITAL II, L.P., a
Delaware limited partnership (“Canterbury” and, together with its Permitted
Transferees, the “Canterbury Entities”), (4) PROTOSTAR EQUITY PARTNERS, L.P., a
Delaware limited partnership, as successor in interest to The CIT Group/Equity
Investments, Inc. (“Protostar” and, together with its Permitted Transferees,
the “Protostar Entities”), and (5) the individuals listed on Exhibit A
hereto as “Management Stockholders” (such individuals, together with their
Permitted Transferees, the “Management Stockholders”).  The BRS Entities, the Canterbury Entities,
the Protostar Entities and the Management Stockholders are sometimes referred
to hereinafter individually as a “Stockholder” and collectively as the
“Stockholders.”

 

Background

 

A.                                   B&G
Foods and the Stockholders are parties to the Amended and Restated Securities
Holders Agreement, dated as of December 22, 1999 (the “Existing Securities
Holders Agreement”), and desire to amend and restate the Existing Securities
Holders Agreement in its entirety effective upon consummation of the Initial
Public Offering (as defined below).

 

B.                                     Prior
to the Initial Public Offering each of the BRS Entities is the record owner of
(i) the number of shares of Common Stock, par value $.01 per share (the
“Existing Common Stock”), of B&G Foods set forth opposite its name on Exhibit
A hereto, (ii) the number of shares of 13% Series A Cumulative Preferred
Stock, par value $.01 per share (the “Series A Preferred Stock”), of B&G
Foods set forth opposite its name on Exhibit A hereto, (iii) the number
of shares of 13% Series B Cumulative Preferred Stock, par value $.01 per share
(the “Series B Preferred Stock”), of B&G Foods set forth opposite its name
on Exhibit A hereto, (iv) the number of shares of Series C Senior
Preferred Stock, par value $.01 per share (the “Series C Preferred Stock”), of
B&G Foods set forth opposite its name on Exhibit A hereto and (v)
the number of warrants to purchase shares of Common Stock (the “Existing
Warrants”) of B&G Foods set forth opposite its name on Exhibit A
hereto.

 

C.                                     Canterbury
is the record owner of (i) the number of shares of Series C Preferred Stock of
B&G Foods set forth opposite its name on Exhibit A hereto and (ii)
the number of Existing Warrants of B&G Foods set forth opposite its name on
Exhibit A hereto.

 

D.                                    Protostar
is the record owner of (i) the number of shares of Series C Preferred Stock of
B&G Foods set forth opposite its name on Exhibit A hereto and (ii)
the number of Warrants of B&G Foods set forth opposite its name on Exhibit
A hereto.

 

 

E.                                      Each
of the Management Stockholders is the record owner of (i) the number of shares
of Existing Common Stock of B&G Foods set forth opposite his or her name on
Exhibit A hereto, (ii) the number of shares of Series A Preferred Stock
of Holdings Corp. set forth opposite his or her name on Exhibit A hereto
and (iii) the number of stock options to purchase shares of Existing Common
Stock (the “Existing Options”) of Holdings Corp. set forth opposite his or her
name on Exhibit A hereto.

 

F.                                      B&G
Foods desires to conduct an initial public offering (the “Initial Public
Offering”) of Enhanced Income Securities (“EISs”), each initially representing
one share of B&G Foods Class A Common Stock, par value $0.01 per share (the
“Class A Common Stock”) and $7.15 aggregate principal amount of B&G Foods’
Senior Subordinated Notes (the “Senior Subordinated Notes”) pursuant to a
registration statement on Form S-1 (the “EIS Registration Statement”) filed
under the Securities Act of 1933, as amended (the “Securities Act”).

 

G.                                     Immediately
prior to the Initial Public Offering, B&G Foods, Inc. will be merged with
and into B&G Foods Holdings Corp., the sole asset of which is the capital
stock of B&G Foods, Inc. (the “Merger”). 
Concurrently with the Merger, B&G Foods Holdings Corp. will be
renamed B&G Foods, Inc. (the “Name Change”).

 

H.                                    At
the effective time of the Merger (the “Effective Time”), each share of B&G
Foods’ Existing Common Stock issued and outstanding immediately prior to the
Effective Time, will be automatically reclassified as and converted (the
“Reclassification and Conversion”) into 109.8901 shares of B&G Foods’ Class
B Common Stock, par value $0.01 per share (“Class B Common Stock”).  Any stock certificate that, immediately
prior to the Effective Time, represented shares of the Existing Common Stock
will, from and after the Effective Time, automatically and without the
necessity of presenting the same for exchange, represent the number of shares
of Class B Common Stock as equals the product obtained by multiplying the
number of shares of Existing Common Stock represented by such certificate
immediately prior to the Effective Time by 109.8901.  In lieu of any fractional shares to which the holders of the
Existing Common Stock would otherwise be entitled upon conversion, B&G
Foods shall pay cash equal to such fraction multiplied by the fair market value
(as determined by the Board Directors of B&G Foods) of one share of Class B
Common Stock.

 

I.                                         Upon
completion of the Initial Public Offering, B&G Foods shall subject to the
terms and conditions set forth in this Agreement repurchase from the
Stockholders Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Class B Common Stock, Existing Options and Existing Warrants
as set forth in Article VII, and, following the expiration of the
Over-Allotment Option (as defined below), any Existing Warrants not so
repurchased will be exercised by the holders thereof for shares of Class B
Common Stock.

 

J.                                        Pursuant
to an underwriting agreement to be entered into among B&G Foods and the
underwriters of the Initial Public Offering (collectively, the “Underwriters”),
B&G Foods will grant to the Underwriters an option to purchase additional
EISs (the “Over-Allotment Option”).  If
the Underwriters exercise their Over-Allotment Option, B&G Foods will
repurchase a portion of the remaining Existing Warrants and shares of Class B
Common Stock held by the Stockholders.

 

2

 

K.                                    As
used herein, the term “Subsidiaries” shall mean, collectively, (i) BGH
Holdings, Inc., a Delaware corporation, (ii) Bloch & Guggenheimer, Inc., a
Delaware corporation, (iii) Heritage Acquisition Corp., a Delaware corporation,
(iv) Les Produits Alimentaires Jacques Et Fils, Inc., a Quebec corporation, (v)
Maple Grove Farms of Vermont, Inc., a Vermont corporation, (vi) Ortega Holdings
Inc., a Delaware corporation, (vii) Polaner, Inc., a Delaware corporation,
(viii) Trappey’s Fine Foods, Inc., a Delaware corporation, (ix) William
Underwood Company, a Massachusetts business trust, and (x) all future
subsidiaries of B&G Foods, and the term “Subsidiary” shall be construed
accordingly.  As used herein, the term
“Securities” shall mean the Class B Common Stock, the Existing Warrants and any
options to purchase shares of Class B Common Stock (“Class B Options”) held by
any Stockholder after the date of consummation of the Initial Public Offering,
including shares of Class B Common Stock, Class B Options and all other
securities of B&G Foods or a successor to B&G Foods (other than EISs,
shares of Class A Common Stock and Senior Subordinated Notes (each as defined
below)), including, without limitation, all securities (other than EISs, shares
of Class A Common Stock and Senior Subordinated Notes) issued in connection
with any merger, consolidation, stock dividend, stock distribution, stock
split, reverse stock split, stock combination, recapitalization,
reclassification, subdivision, conversion or similar transaction in respect
thereof.  A reference to any class of
Securities shall be deemed to include reference to all Securities issued in
respect thereof.  As used herein, the
term “Existing Securities” shall mean collectively the Series A Preferred
Stock, the Series B Preferred Stock, the Series C Preferred Stock, the Existing
Common Stock, the Existing Options and the Existing Warrants.

 

L.                                      The
Stockholders and B&G Foods wish to set forth, among other things, certain
agreements regarding their future relationships and their rights and
obligations with respect to the Securities.

 

Terms

 

In consideration of the mutual representations, warranties and
covenants contained herein, and intending to be legally bound hereby, the
parties hereto acknowledge and agree that this Agreement shall in accordance
with Section 7.1 hereof amend and supersede in its entirety the Existing
Securities Holders Agreement, and agree as follows:

 

ARTICLE
I

 

REPRESENTATIONS, WARRANTIES AND

COVENANTS OF B&G FOODS

 

1.1.                              Representations, Warranties and Covenants of
B&G Foods.  B&G Foods
represents and warrants to, and covenants and agrees with, each of the
Stockholders as follows:

 

(a)                                  B&G
Foods is a corporation validly existing and in good standing under the laws of
the State of Delaware.

 

(b)                                 B&G
Foods has full corporate power and corporate authority to make, execute,
deliver and perform this Agreement and to carry out all of the transactions
provided for herein.

 

3

 

(c)                                  B&G
Foods has taken such corporate action as is necessary or appropriate to enable
it to perform its obligations hereunder, and this Agreement constitutes the
legal, valid and binding obligation of B&G Foods, enforceable against
B&G Foods in accordance with the terms hereof.

 

(d)                                 As
of the date of consummation of the Initial Public Offering (after giving effect
to the Initial Public Offering and the repurchase of the securities of B&G
Foods as set forth in Section 7.2 hereof, the authorized capital stock of
B&G Foods will consist of (i) 125,000,000 shares of Common Stock,
consisting of 100,000,000 shares of Class A Common Stock and 25,000,000 shares
of Class B Common Stock, of which 17,391,305 shares of Class A Common Stock, or
if the Over-Allotment Option (as defined below) is exercised in full 20,000,000
shares of Class A Common Stock, and 12,787,781 shares of Class B Common Stock
and warrants to purchase shares of Class B Common Stock, or if the
Over-Allotment Option is exercised in full 7,556,446 shares of Class B Common
Stock, will be issued and outstanding and (ii) 1,000,000 shares of preferred
stock, par value $0.01 per share (such shares, of any class whether heretofore or
hereafter designated, being referred to as “Preferred Stock”), none of which
will be issued and outstanding.  Except
(i) as provided in this Agreement (including, without limitation, in Article
VII or in the foregoing sentence), (ii) as set forth in the terms of the
capital stock of B&G Foods or (iii) as described the EIS Registration
Statement, as of the date of consummation of the Initial Public Offering (x)
there will be no rights, subscriptions, warrants, options, conversion rights,
or agreements of any kind outstanding to purchase from B&G Foods, or
otherwise require B&G Foods to issue, any shares of capital stock of
B&G Foods or securities or obligations of any kind convertible into or
exchangeable for any shares of capital stock of B&G Foods; (y) B&G
Foods will not be subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of its capital stock; and
(z) the Class A Common Stock and the Class B Common Stock will constitute all
of the outstanding shares of B&G Foods’ capital stock.

 

ARTICLE II

 

REPRESENTATIONS, WARRANTIES AND

COVENANTS OF EACH STOCKHOLDER

 

2.1.                              Representations, Warranties and Covenants of Each
Stockholder.  Each of the
Stockholders severally represents and warrants to, and covenants and agrees
with, B&G Foods that:

 

(a)                                  Such
Stockholder has full legal right, capacity, power and authority (including the
due authorization by all necessary corporate or partnership action in the case
of corporate or partnership Stockholders) to enter into this Agreement and to
perform such Stockholder’s obligations hereunder without the need for the
consent of any other person or entity; and this Agreement has been duly
authorized, executed and delivered and constitutes the legal, valid and binding
obligation of such Stockholder, enforceable against such Stockholder in
accordance with the terms hereof.

 

(b)                                 Such
Management Stockholder’s residence address and social security number are as
set forth on Exhibit B hereto.

 

4

 

(c)                                  Such
Stockholder will not effect a Transfer (as hereinafter defined) of any
Securities or EISs (including the shares of Class A Common Stock and the Senior
Subordinated Notes comprising the EISs) except in compliance with the
registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”) (and applicable state securities laws) or pursuant to an
available exemption therefrom, and, without limiting the foregoing, will not
effect a Transfer of any Securities or EISs (including the shares of Class A
Common Stock and the Senior Subordinated Notes comprising the EISs) prior to
the lapse of such period of time following acquisition thereof as may be
required to comply with applicable state securities laws.

 

(d)                                 Upon
the effectiveness of this Agreement in accordance with Section 7.1(a) hereof,
such Stockholder hereby waives any preemptive rights or registration rights,
including any rights relating to the failure to receive advance notice in
connection with any such rights, that such Stockholder may have had under the
Existing Securities Holders Agreement, and any such preemptive rights,
registration rights or rights in connection therewith under the Existing
Securities Holders Agreement are no longer of any force or effect.

 

(e)                                  The
number of Existing Securities owned by such Stockholder (prior to giving effect
to the Reclassification and Conversion) is set forth opposite such
Stockholder’s name on Exhibit A. 
Such Stockholder has good, valid and marketable title to the Existing
Securities free and clear of any liens, charges, claims, pledges, security
interests, conditional sale agreements, and other encumbrances whatsoever.

 

(f)                                    Such
Stockholder has not sold, transferred, assigned, conveyed, pledged or
encumbered in any manner whatsoever all or any part of the Existing Securities.

 

(g)                                 Such
Stockholder has received a copy of the EIS Registration Statement, and that
such Stockholder has been given the opportunity to obtain information regarding
the business and affairs of B&G Foods to such Stockholder’s satisfaction.

 

2.2.                              Legend.   The
certificates representing the Securities, including certificates issued upon
any voluntary or involuntary transfer of such Securities, unless such transfer
is pursuant to a registered public offering of the Securities, or the
conditions specified in Section 2.3 hereof are satisfied, shall bear the
following legend in addition to any other legend required under applicable law:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR
STATE SECURITIES LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO B&G FOODS,
INC., THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE
TERMS AND CONDITIONS OF A SECOND AMENDED AND RESTATED SECURITIES HOLDERS
AGREEMENT BY AND AMONG B&G FOODS, INC. AND THE HOLDERS SPECIFIED THEREIN, A
COPY OF WHICH AGREEMENT IS ON

 

5

 

FILE AT THE PRINCIPAL OFFICE OF B&G FOODS, INC.  THE SALE, TRANSFER OR OTHER DISPOSITION OF
THE SECURITIES IS SUBJECT TO THE TERMS OF SUCH AGREEMENT AND THE SECURITIES ARE
TRANSFERABLE ONLY UPON PROOF OF COMPLIANCE THEREWITH.

 

2.3.                              Provisions Regarding Transfers of Securities.  The following provisions shall apply with
respect to the Transfer (as hereinafter defined) of any Securities owned by any
Management Stockholder, BRS Entity, Canterbury Entity or Protostar Entity:

 

(a)                                  Each
Management Stockholder, BRS Entity, Canterbury Entity and Protostar Entity is
prohibited from Transferring any of his or its Securities except in the
following circumstances: (i) to Permitted Transferees (as hereinafter defined),
(ii) beginning on the day after the expiration of the Lock-Up Period (as
defined in Section 2.7 hereof), to third parties in private sales exempt from
or not subject to the registration requirements of the Securities Act, and
(iii) pursuant to an effective registration statement under the Securities Act;
provided, however, that, in the case of any such
Transfer, except in the case of a sale pursuant to an effective registration
statement, each such transferee shall take such Securities subject to and be
fully bound by the terms of this Agreement applicable to it with the same
effect as if it were a party hereto, including, without limitation, the
representations, warrants and covenants contained in Section 2.6 hereof; and provided, further, that no Transfer shall be
effected except in compliance with the registration requirements of the
Securities Act (and applicable state securities laws) or pursuant to an
available exemption therefrom.

 

(b)                                 No
Transfer shall, in any event, except in the case of a sale pursuant to an
effective registration statement, be made by any Management Stockholder, BRS
Entity, Canterbury Entity or Protostar Entity unless in connection with such
Transfer, the applicable transferee has complied with the terms and provisions
of this Agreement.  No Management
Stockholder, BRS Entity, Canterbury Entity, Protostar Entity or transferee may
effect any Transfer of Securities, whether to a Permitted Transferee or
otherwise, unless the transferee executes an agreement pursuant to which such
transferee agrees to be bound by the terms and provisions of this Agreement
(including, without limitation, the representations, warranties and covenants
contained in Section 2.6 hereof) applicable to the transferor (except in the
case of a sale pursuant to an effective registration statement under the
Securities Act or as otherwise specifically provided herein).  Any purported Transfer in violation of this
covenant shall be null and void and of no force and effect and the purported
transferee shall have no rights or privileges in or with respect to B&G
Foods.  As used herein, “Transfer” means
the making of any sale, exchange, assignment, hypothecation, gift, security
interest, pledge or other encumbrance, or any contract therefor, any voting
trust or other agreement or arrangement with respect to the transfer of voting
rights (including any proxy or similar arrangement (whether or not revocable))
or any other beneficial interest in any of the Securities, the creation of any
other claim thereto or any other transfer or disposition whatsoever, whether
voluntary or involuntary, affecting the right, title, interest or possession in
or to such Securities.

 

Prior to any proposed Transfer of any Securities, the holder thereof
shall give written notice to B&G Foods describing the manner and
circumstances of the proposed Transfer accompanied, if requested by B&G
Foods, by a written opinion of legal counsel reasonably satisfactory to B&G
Foods, addressed to B&G Foods and the transfer agent, if other than B&G

 

6

 

Foods, and reasonably
satisfactory in form and substance to each addressee, to the effect that the
proposed Transfer of the Securities may be effected without registration under
the Securities Act and applicable state securities laws.  Each certificate evidencing the Securities
transferred shall bear the legend set forth in Section 2.2, except that such
certificate shall not bear such legend if the opinion of counsel referred to
above is to the further effect that such legend is not required in order to
establish compliance with any provision of the Securities Act or applicable
state securities laws.

 

(c)                                  As
used herein, “Permitted Transferee” shall mean:

 

(i)                                     in
the case of any Management Stockholder, (A) B&G Foods or any BRS Entity,
(B) any spouse or lineal descendant of a Management Stockholder, or any heir,
executor, administrator, testamentary trustee, legatee or beneficiary of a
Management Stockholder or any of the foregoing persons referred to in this clause
(B) (collectively, “Management Stockholder Associates”) and (C) any trust, the
beneficiaries of which, or any corporation, limited liability company or
partnership, the stockholders, members or general and limited partners of which
include only such Management Stockholders and their respective Management
Stockholder Associates;

 

(ii)                                  in
the case of any BRS Entity, (A) any other BRS Entity, (B) any Affiliate (as
hereinafter defined) of any BRS Entity, (C) any member or partner of BRS,
provided that, in the case of a distribution to BRS’s members or partners, such
distribution shall be made in accordance with the terms of its agreement of
limited partnership, (D) any spouse or lineal descendant of a member or partner
of BRS, or any heir, executor, administrator, testamentary trustee, legatee or
beneficiary of BRS or any of the foregoing persons referred to in this clause
(D) (collectively, “BRS Associates”), (E) any trust, the beneficiaries of
which, or any corporation, limited liability company or partnership, the
stockholders, members or general and limited partners of which include only BRS
or their respective BRS Associates, and (F) one or more banks or other
financial institutions or entities which are not then in direct competition
with B&G Foods or any of the Subsidiaries, but only if BRS is required to
make a Transfer of its Securities to such bank or financial institution or
entity pursuant to BRS’s agreement of limited partnership or in connection with
any dissolution of BRS pursuant to its agreement of limited partnership;

 

(iii)                               in
the case of any Canterbury Entity, (A) any other Canterbury Entity, (B) any
Affiliate of any Canterbury Entity, (C) any member or partner of Canterbury,
provided that, in the case of a distribution to Canterbury’s members or
partners, such distribution shall be made pro
rata to all such members or partners in accordance with the terms of
its agreement of limited partnership and (D) one or more banks or other
financial institutions or entities which are not then in direct competition
with B&G Foods or any of the Subsidiaries, but only if Canterbury is
required to make a Transfer of its Securities to such bank or financial
institution or entity pursuant to Canterbury’s agreement of limited partnership
or in connection with any dissolution of Canterbury pursuant to its agreement
of limited partnership; and

 

(iv)                              in
the case of any Protostar Entity, (A) any other Protostar Entity or
(B) any Affiliate of any Protostar Entity.

 

7

 

(d)                                 As
used herein, “Affiliate” of any person means any person, directly or
indirectly, controlling, controlled by or under common control with such
person, and includes any person who is an officer, director or employee of such
person and any person who would be deemed to be an “affiliate” or an
“associate” of such person, as those terms are defined in Rule 12b-2 of the
General Rules and Regulations under the Securities Exchange Act of 1934, as
amended.  As used in this definition,
“controlling” (including, with its correlative meanings, “controlled by” and
“under common control with”) means possession, directly or indirectly, of power
to direct or cause the direction of management or policies (whether through
ownership of securities, partnership or other ownership interests, by contract
or otherwise).

 

2.4.                              Notation.  A
notation will be made in the appropriate transfer records of B&G Foods with
respect to the restrictions on transfer of the Securities referred to in this
Agreement.

 

2.5.                              Limitation on Repurchase of Securities and
Dividend Payments.  Each Stockholder
understands that B&G Foods has entered into certain financing agreements
which contain prohibitions, restrictions and limitations on the ability of
B&G Foods to purchase any of the Securities and, under certain
circumstances, to pay dividends on the Class B Common Stock.

 

2.6.                              Restrictions on Acquisition of Senior
Subordinated Notes.  Each
Stockholder hereby represents that it does not currently hold any Senior
Subordinated Notes. So long as any EISs are issued and outstanding, each
Stockholder agrees that it shall not purchase or otherwise acquire any Senior
Subordinated Notes other than Senior Subordinated Notes (i) issued or
distributed to such Stockholder in connection with EISs previously acquired by
such Stockholder or (ii) purchased or acquired in the form of EISs.  Each Stockholder agrees that from time to
time as requested by B&G Foods such Stockholder will provide a written
certificate to B&G Foods certifying compliance with this Section 2.6.

 

2.7.                              Lock-Up Agreements.   Each Stockholder agrees that it will enter into a lock-up
agreement with the Underwriters as described in the EIS Registration Statement
and substantially in the form provided to such Stockholder prior to the date
hereof (each, a “Lock-Up Agreement”) whereby such Stockholder will agree not to
directly or indirectly, offer, sell or otherwise dispose of any EISs or shares
of Class A Common Stock or Class B Common Stock, Senior Subordinated Notes or
any securities which may be converted into or exchanged or exercised for such
securities for a period of 180 days (or up to 215 days if extended in
accordance with the terms thereof) from the date of the prospectus included in
the EIS Registration Statement (the “Lock-Up Period”).

 

2.8.                              Reliance.  Each
Stockholder acknowledges that B&G Foods and each of the other Stockholders
is entering into this Agreement in reliance upon such Stockholder’s
representations and warranties and other covenants and agreements contained
herein.

 

8

 

ARTICLE
III

 

OTHER COVENANTS AND REPRESENTATIONS

 

3.1.                              Covenant Not to Compete.  Each Management Stockholder hereby agrees
that during the term of his employment by B&G Foods or any of the
Subsidiaries and for a period of ten (10) months after the Management
Stockholder ceases his or her employment with B&G Foods or the Subsidiaries
for any reason other than termination without cause (the “Restriction Period”),
such Management Stockholder shall not, directly or indirectly, own, manage,
operate, join, control or participate in the ownership, management, operation
or control of, or be connected as an officer, director, employee, consultant,
stockholder, partner or otherwise with, any component of a business which at
any relevant time during such period directly or indirectly competes with
B&G Foods or any of the Subsidiaries or their Affiliates in the Covered
Business (as hereafter defined) in the States of California, Delaware,
Maryland, Michigan, New Jersey, New York or Vermont or any other state in the
United States in which B&G Foods or any of the Subsidiaries or their
Affiliates are conducting business during the term of his employment.  For purposes hereof, the term “Covered
Business” shall mean the purchase, manufacture, marketing or selling of the
products and the raw materials with respect to such products as to which the
Management Stockholder has assisted B&G Foods, the Subsidiaries or their
Affiliates in purchasing, manufacturing, marketing or selling during the term
of the employment of the Management Stockholder, together with any use or
modification of any such products for the same, new or additional purposes or
applications.  The restrictive covenant
contained in this Section 3.1 is a covenant independent of any other provision
of this Agreement, and the existence of any claim which such Management
Stockholder may allege against B&G Foods or any of the Subsidiaries,
whether based on this Agreement or otherwise, shall not prevent the enforcement
of this covenant.  Each of the
Management Stockholders agrees that a breach by him of this Section 3.1 shall
cause irreparable harm to B&G Foods, the Subsidiaries and their Affiliates
and that the Subsidiaries’ and B&G Foods’ remedies at law for any breach or
threat of breach by any of the Management Stockholders of the provisions of
this Section 3.1 shall be inadequate, and that the Subsidiaries or B&G
Foods shall be entitled to an injunction or injunctions to prevent breaches of
this Section 3.1 and to enforce specifically the terms and provisions hereof,
in addition to any other remedy to which B&G Foods or the Subsidiaries may
be entitled at law or in equity.  The
length of time for which this covenant not to compete shall be in force shall
not include any period of violation or any other period required for litigation
during which B&G Foods or any of the Subsidiaries seeks to enforce this
covenant.  In the event that this
covenant not to compete shall be determined by any court of competent
jurisdiction to be unenforceable by reason of its extending for too long a
period of time or over too large a geographical area or by reason of its being
too extensive in any other respect, it shall be interpreted to extend only over
the longest period of time for which it may be enforceable, and/or over the
largest geographical area as to which it may be enforceable and/or to the
maximum extent in all other aspects as to which it may be enforceable, all as
determined by such court in such action.

 

ARTICLE IV

 

CORPORATE ACTIONS

 

4.1.                              Directors. 
For so long as the BRS Entities are the beneficial owners (as that term
is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended)
of more than 10% of the outstanding shares of Common Stock in the aggregate on
a fully-diluted basis and as a result the holders of Class B Common Stock have
the exclusive right to elect two

 

9

 

directors in accordance with the Amended and
Restated Certificate of Incorporation of B&G Foods, each Stockholder and
Permitted Transferee agrees that it shall take, at any time and from time to
time, all action necessary (including voting the Class B Common Stock owned by
him, her or it, calling special meetings of stockholders and executing and
delivering written consents) to ensure that the Board of Directors of B&G
Foods at all times includes two individuals designated by BRS.

 

4.2.                              Right to Remove Certain of B&G Foods’ Directors.  BRS may request that any director designated
by it be removed (with or without cause) by written notice to the other
Stockholders, and, in any such event, each Stockholder shall promptly consent
in writing or vote or cause to be voted all shares of Class B Common Stock now
or hereafter owned or controlled by it for the removal of such person as a
director.  In the event any person
ceases to be a director, such person shall also cease to be a member of any
committee of the Board of Directors of B&G Foods.

 

4.3.                              Right to Fill Certain Vacancies in B&G Foods’
Board.  In the event that a vacancy
is created on B&G Foods’ Board of Directors at any time by the death,
disability, retirement, resignation or removal (with or without cause) of a
director designated by BRS and elected by the holders of Class B Common Stock,
or if otherwise there shall exist or occur any vacancy on B&G Foods’ Board
of Directors in a directorship subject to designation by BRS and election by
the holders of Class B Common Stock, such vacancy shall not be filled by the
remaining members of B&G Foods’ Board of Directors, but each Stockholder
hereby agrees promptly to consent in writing or vote or cause to be voted all
shares of Class B Common Stock now or hereafter owned or controlled by it to
elect that individual designated to fill such vacancy and serve as a director,
as shall be designated by BRS.

 

4.4.                              Confidentiality.

 

(a)                                  Each
Stockholder hereby agrees that Confidential Information (as defined below) has
been and may be made available to him or it in connection with such
Stockholder’s interest in B&G Foods and its subsidiaries.  Each Stockholder agrees that he or it will
not use the Confidential Information in any way that is reasonably likely to
result in a material detriment to the business of B&G Foods and its Subsidiaries.  Each Stockholder further acknowledges and
agrees that he or it will not disclose any Confidential Information to any
person; provided that
Confidential Information may be disclosed (i) to such Stockholder’s
Representatives (as defined below) in the normal course of the performance of
their duties, (ii) to the extent required by applicable statute, law, rule or
regulation (including complying with any oral or written questions,
interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process to which a Stockholder is subject) or
by generally accepted accounting principles, (iii) to any third party to whom
such Stockholder is contemplating a transfer of his or its Securities, provided that such transfer would not be
in violation of the provisions of this Agreement and as long as such third
party is advised of the confidential nature of such information and agrees to
be bound by a confidentiality agreement in form and substance satisfactory to
B&G Foods and substantially similar to the provisions hereof or (iv) if the
prior consent of the Board of Directors of B&G Foods shall have been
obtained.  Nothing contained herein
shall prevent the use of Confidential Information in connection with the
assertion or defense of any claim by or against B&G Foods or any
Stockholder.

 

10

 

(b)                                 “Confidential
Information” means any information concerning B&G Foods, its financial
condition, business, subsidiaries, operations or prospects in the possession of
or to be furnished to any Stockholder in his or its capacity as a shareholder
of B&G Foods or by virtue of his or its present or former position as, or
right to designate, a director of B&G Foods; provided that the term “Confidential Information” does not
include information which (a) was or becomes generally available publicly other
than as a result of a disclosure by a Stockholder or his or its partners,
directors, officers, employees, agents, counsel, investment advisers,
accountants, consultants or representatives (all such persons being
collectively referred to as “Representatives”) in violation of this Section
4.4(b) was or becomes available to such Stockholder on a nonconfidential basis
from a source other than B&G Foods, any regulatory entity or a Stockholder or
his or its Representatives, provided that
such source is or was (at the time of receipt of the relevant information) not,
to the best of such Stockholder’s knowledge, bound by a confidentiality
agreement with B&G Foods or another person.

 

ARTICLE V

 

CLASS B COMMON STOCK REPURCHASES

 

5.1.                              Class B Common Stock Repurchases

 

(a)                                  Following
the consummation of the Initial Public Offering, B&G Foods and the holders
of Class B Common Stock may enter into an agreement pursuant to which B&G
Foods shall agree to repurchase all or a portion of the shares of Class B
Common Stock from the holders of such shares,
provided, however,
that (i) until the second anniversary of the date of consummation of the
Initial Public Offering, shares of Class B Common Stock may not be repurchased
by B&G Foods unless after giving effect to such repurchase, the total
number of shares of Class B Common Stock outstanding would be equal to or
greater than 3,144,998 shares on a fully diluted basis, and (ii) B&G Foods
shall not effect a repurchase of any shares of Class B Common Stock so long as
an Event of Default as defined in the Indenture (for the Senior Subordinated
Notes), dated as of the date of the Initial Public Offering, between B&G
Foods and The Bank of New York, as Trustee, as amended, supplemented or
otherwise modified from time to time or an Event of Default as defined in the
Indenture (for B&G Foods’ Senior Notes), dated as of the date of the
Initial Public Offering, between B&G Foods and The Bank of New York, as
Trustee, as amended, supplemented or otherwise modified from time to time has
occurred and is continuing or would be caused thereby.

 

Notwithstanding anything in this Article V to the contrary and except
as set forth in Section 7.3 of this Agreement, no Stockholder shall have any
right to compel B&G Foods to purchase such Stockholder’s Class B Common
Stock and, subject to Section 2.2(e) of the Registration Rights Agreement,
B&G Foods shall not have any right to compel a Stockholder to sell such
Stockholder’s Class B Common Stock to B&G Foods.

 

(b)                                 In
the event that B&G Foods and a holder of shares of Class B Common Stock
agree that B&G Foods shall repurchase all or a portion of such
Stockholder’s shares of Class B Common Stock, the purchase price per share of
Class B Common Stock (the “Repurchase Price”) shall be equal to the last
reported sales price of a share of Class A Common Stock, regular way, on the
business day prior to the date of the sale agreement, or, if no sale

 

11

 

takes place on such day, the average of the
reported closing bid and asked prices on such day, regular way, in either case
as reported on the American Stock Exchange or, if shares of Class A Common
Stock are not listed or admitted for trading on the American Stock Exchange, on
the principal national securities exchange on which shares of Class A Common
Stock are listed or admitted for trading or, if not listed or admitted for
trading on any national securities exchange, on The Nasdaq National Market or,
if shares of Class A Common Stock are not quoted on the Nasdaq National Market,
the average of the closing bid and asked prices on such day in the
over-the-counter market, or, in the event that shares of Class A Common Stock
are not traded in the over-the-counter market, the fair value as determined by
an independent appraisal firm selected by the Board of Directors of B&G
Foods.  The Repurchase Price shall be
paid by delivery to the Stockholder of immediately available funds or other
form of consideration as set forth in the applicable repurchase agreement
against delivery of certificates or other instruments representing the shares
of Class B Common Stock so repurchased, appropriately endorsed or executed by
such Stockholder.

 

ARTICLE VI

 

REGISTRATION RIGHTS

 

The Stockholders shall have registration rights with respect to the
Class B Common Stock as set forth in the Registration Rights Agreement attached
hereto as Exhibit C (the “Registration Rights Agreement”).  Each of the Stockholders agrees not to
effect any public sale or public distribution of any securities of B&G
Foods during the periods specified in the Registration Rights Agreement, except
as permitted thereby, and each such Stockholder agrees to be bound by the
rights of priority to participate in offerings as set forth therein.

 

ARTICLE
VII

 

AMENDMENT AND RESTATEMENT; REPURCHASE OF
PREFERRED STOCK, CLASS B COMMON STOCK, WARRANTS AND OPTIONS

 

7.1.                              Amendment and Restatement of
Existing Securities Holders Agreement; Approvals of Initial Public Offering
Transactions.

 

(a)                                  Each
party hereto agrees that, upon completion of the Initial Public Offering, (i)
the Existing Securities Holders Agreement shall be amended and restated and
replaced in its entirety with this Agreement and (ii) the terms of the Existing
Securities Holders Agreement and the Registration Rights Agreement (as defined
in the Existing Securities Holders Agreement) shall cease to be of any effect.

 

(b)                                 Each
Stockholder consents and agrees to take all action necessary for the completion
of the Initial Public Offering and the related transactions, and consents to
B&G Foods entering into the Underwriting Agreement and the transactions
contemplated thereby and by this Agreement.

 

(c)                                  Each
party hereto consents to the Merger and the Name Change and to the amendment
and restatement of the certificate of incorporation of B&G Foods and to

 

12

 

the amendment and restatement of the bylaws
of B&G Foods, substantially in the forms attached as Annex 1 and 2 to Exhibit
D hereto.  Each Stockholder hereby
consents to the adoption of the resolutions attached hereto as Exhibit D,
in accordance with Section 228 of the Delaware General Corporation Law, and
hereby consents to the taking of the actions referred to in such resolutions
and agrees that such actions and resolutions shall have the same force and
effect as though duly taken and adopted at a meeting of the stockholders of the
Company duly called and legally held.

 

7.2.                              Repurchase Upon Initial Public Offering.  Upon consummation of the Initial Public
Offering (the “Initial Repurchase Date”), each Stockholder hereby sells,
transfers and assigns to B&G Foods, and B&G Foods hereby purchases from
such Stockholder, free and clear of all liens, claims, security interests, pledges,
charges, equities, options, restrictions and encumbrances:

 

(a)                                  all
of such Stockholders’ shares of Series A Preferred Stock as set forth opposite
such Stockholder’s name in the second column of Exhibit E-1 hereto;

 

(b)                                 all
of such Stockholders’ shares of Series B Preferred Stock as set forth opposite
such Stockholder’s name in the second column of Exhibit E-2 hereto;

 

(c)                                  all
of such Stockholder’ shares of Series C Preferred Stock as set forth opposite
such Stockholder’s name in the second column of Exhibit E-3 hereto;

 

(d)                                 the
number of shares of Class B Common Stock set forth opposite such Stockholder’s
name in the third column of Exhibit E-5 hereto;

 

(e)                                  all
of such Stockholders’ Existing Options (as adjusted following the
Reclassification and Conversion) as set forth opposite such Stockholder’s name
in the second column of Exhibit E-6 hereto;

 

(f)                                    the
number of Existing Warrants (as adjusted following the Reclassification and
Conversion) set forth opposite such Stockholder’s name in the third column of Exhibit
E-4 hereto;

 

The calculations set forth in the above referenced Exhibits reflect
that (i) the holders of Series A Preferred Stock are selling such securities on
the Initial Repurchase Date at a discount to the principal amount thereof plus
all accrued and unpaid dividends thereon and (ii) the number of Existing
Warrants and shares of Class B Common Stock sold on the Initial Repurchase Date
reflects a reallocation of the proportionate interests of the Stockholders in
the Existing Warrants and Class B Common Stock outstanding after the Initial
Repurchase Date to compensate the holders of Series A Preferred Stock in full
for the discount referred to in clause (i) above.

 

7.3.                              Repurchase Upon Exercise of the
Over-Allotment Option.

 

(a)                                  Upon
exercise by the Underwriters of the Over-Allotment Option in full, each
Stockholder hereby sells, transfers and assigns to B&G Foods, and B&G
Foods hereby purchases from such Stockholder, free and clear of all liens,
claims, security interests,

 

13

 

pledges, charges, equities, options,
restrictions and encumbrances the number of shares of Class B Common Stock and
Existing Warrants set forth opposite such Stockholder’s name in the third
column of Exhibit F-2 and in the third column of Exhibit F-1
hereto, respectively hereto.

 

(b)                                 Upon
any partial exercise of the Over-Allotment Option, each Stockholder hereby
sells, transfers and assigns to B&G Foods, and B&G Foods hereby
purchases from such Stockholder, free and clear of all liens, claims, security
interests, pledges, charges, equities, options, restrictions and encumbrances,
to the extent of proceeds from any such partial exercise and in the following
order of priority (i) first, to the extent of the discount referred to
in clause (i) of the final paragraph of Section 7.2 above, such number of
shares of Class B Common Stock and Existing Warrants held by any Stockholder
who sold shares of Series A Preferred Stock on the Initial Repurchase Date
proportionate to such Stockholder’s interest in such shares of Series A
Preferred Stock and (ii) second, such number of shares of Class B Common
Stock and Existing Warrants that remain outstanding in accordance with the
proportionate interests set forth in Exhibits F-1 and F-2, adjusted
to reflect the repurchases pursuant to clause (i) above.

 

7.4.                              Repurchase Price.  In consideration for the shares of Series A Preferred Stock,
shares of Series B Preferred Stock, shares of Series C Preferred Stock, shares
of Class B Common Stock, Existing Options and Existing Warrants, as applicable,
repurchased from the Stockholders, B&G Foods shall pay each Stockholder the
dollar amounts set forth opposite such Stockholder’s name under Exhibits E-1
to E-6 and Exhibits F-1, F-2 and G, respectively, as
applicable, copies of which are attached hereto.  For accounting and tax purposes, these payments shall be
allocated by the Company and the Stockholders as set forth on Exhibit H-1, if
the Over-Allotment Option expires without having been exercised, and as set
forth on Exhibit H-2, if the Over-Allotment Option is exercised in full. 

 

7.5.                              Adjustments Upon Partial Exercise of
Over-Allotment Option.  Appropriate
and equitable adjustments (taking into account any preferences such
Stockholders may have in accordance with Sections 7.2 and 7.3(b) hereof) shall
be made in respect of any partial exercise of the Over-Allotment Option.

 

7.6.                              Payment of the Purchase Price.  The purchase price for the Existing
Securities shall be delivered to the Stockholders promptly following the
Initial Repurchase Date or any subsequent repurchase date, by wire transfer of
immediately available funds, to the bank account(s) provided to B&G Foods
by such Stockholders or by check.

 

7.7.                              Exercise of Remaining Existing Warrants Following
IPO and Expiration of Over-Allotment Option.

 

(a)                                  Each
Stockholder hereby agrees that the balance of any Existing Warrants (as
adjusted following the Reclassification and Conversion) held by such
Stockholder following the Initial Public Offering and the expiration of the
Over-Allotment Option that have not been repurchased in accordance with Section
7.2 or Section 7.3 hereof, shall be exercised by such Stockholder in accordance
with the procedures set forth in the warrant agreements entered into by such Stockholders
in connection with the Existing Warrants, and such Stockholder shall receive in
accordance with the terms of the Existing Warrants (as adjusted following the
Reclassification and Conversion) the applicable number of shares of Class B
Common Stock

 

14

 

following such deemed exercise upon payment
by such Stockholder of the exercise price therefor as set forth under the terms
of the Existing Warrants (as adjusted following the Reclassification and Conversion).

 

(b)                                 Upon
such exercise, no fractional portion of a share of Class B Common Stock shall
be issued upon exercise of such Existing Warrants.  Instead of any fraction of a share of Class B Common Stock that
would otherwise be deliverable upon the exercise of Existing Warrants, B&G
Foods shall pay to the holder of such Existing Warrant an amount in cash in
respect of such fractional interest based upon the value of one share of Class
B Common Stock being equal to the per Initial Class B Repurchase Price.

 

7.8.                              Release From Liability.  The Stockholders hereby release and
discharge B&G Foods from any and all claims and/or causes of action, known
or unknown, arising from or relating to the Existing Securities, the Existing
Securities Holders Agreement, the Registration Rights Agreement and the option
agreements and the warrant agreements entered into by such Stockholders in
connection with the Existing Options and Existing Warrants, with respect to any
Existing Securities repurchased by B&G Foods in accordance with this
Article VII.

 

ARTICLE
VIII

 

MISCELLANEOUS

 

8.1.                              Amendment and Modification.  This Agreement may be amended or modified,
or any provision hereof may be waived, provided that such amendment,
modification or waiver is set forth in a writing executed by (i) B&G Foods,
(ii) BRS (so long as the BRS Entities own in the aggregate at least 3% of the
outstanding Class B Common Stock on a fully diluted basis), (iii) Canterbury
(so long as the Canterbury Entities own in the aggregate at least 3% of the outstanding
Class B Common Stock on a fully diluted basis), (iv) the holders of a majority
of the Class B Common Stock held by the Management Stockholders and (v) the
holders of a majority of the outstanding Class B Common Stock on a fully
diluted basis (including Class B Common Stock owned by the BRS Entities, but
not including Class B Common Stock held by holders not a party hereto or
hereafter made a party hereto). 
Notwithstanding the foregoing, no amendment or waiver of Sections 2.3,
3.1 or 4.4, Article V, VI or VII, this Section 8.1 or the Registration Rights
Agreement will be effective against any Stockholder that would be adversely
affected by such amendment or waiver unless such Stockholder consents to such
amendment or waiver.  No course of
dealing between or among any persons having any interest in this Agreement will
be deemed effective to modify, amend or discharge any part of this Agreement or
any rights or obligations of any person under or by reason of this Agreement.

 

8.2.                              Survival of Representations and
Warranties.  The representations and
warranties set forth in Section 2.1 of this Agreement will survive the
execution and delivery of this Agreement, regardless of any investigation made
by a Stockholder or on its behalf.  No
other representations, warranties or covenants set forth herein shall so
survive.

 

8.3.                              Successors and Assigns; Entire Agreement.  This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their

 

15

 

respective successors and permitted assigns
and executors, administrators and heirs; provided,
however, no party may assign,
delegate or otherwise transfer any of its rights or obligations under this
Agreement, except to a Permitted Transferee in connection with a Transfer to
such Permitted Transferee or as otherwise set forth in this Agreement.  This Agreement (including the Registration
Rights Agreement) sets forth the entire agreement and understanding among the
parties as to the subject matter hereof and merges and supersedes all prior
discussions, agreements and understandings of any and every nature among them.

 

8.4.                              Separability. 
In the event that any provision of this Agreement or the application of
any provision hereof is declared to be illegal, invalid or otherwise
unenforceable by a court of competent jurisdiction, the remainder of this
Agreement shall not be affected except to the extent necessary to delete such
illegal, invalid or unenforceable provision unless that provision held invalid
shall substantially impair the benefits of the remaining portions of this
Agreement.

 

8.5.                              Notices.  All
notices provided for or permitted hereunder shall be made in writing by
hand-delivery, registered or certified first-class mail, telex, telecopier or
air courier guaranteeing overnight delivery to the other party at the following
addresses (or at such other address as shall be given in writing by any party
to the others):

 

If to B&G Foods, to:

 

B&G Foods Holdings Corp.

(and, following the Merger, B&G Foods, Inc.)

Four Gatehall Drive, Suite 110

Parsippany, NJ 07054

Attention:  Robert C. Cantwell

 

with required copies to:

 

Dechert LLP

30 Rockefeller Plaza

New York, NY 10112

Attention:  Glyndwr P. Lobo,
Esq.

 

and (prior to the Initial Public Offering)

 

Bruckmann, Rosser, Sherrill & Co., Inc.

126 East 56th Street, 29th Floor

New York, New York 10022

Attention:  Stephen C. Sherrill

 

If to any BRS Entity, to:

 

Bruckmann, Rosser, Sherrill & Co., Inc.

126 East 56th Street, 29th Floor

New York, New York 10022

Attention:  Stephen C. Sherrill

 

16

 

with a required copy to:

 

Dechert LLP

30 Rockefeller Plaza

New York, NY 10112

Attention:  Glyndwr P. Lobo,
Esq.

 

If to any Canterbury Entity, to:

 

Canterbury Mezzanine Capital II, L.P.

600 Fifth Avenue, 23rd Floor

New York, NY 10020

Attention:  Nicholas B. Dunphy

 

with a required copy to:

 

Loeb & Loeb LLP

345 Park Avenue

New York, NY 10154-0037

Attention:  Stan Johnson

 

If to any Protostar Entity, to:

 

Protostar Equity Partners, L.P.

c/o Protostar Partners, LLC

13-15 West 54th Street, Fourth Floor

New York, NY 10019

Attention:  Joseph Haviv

 

with required copies to:

 

Ropes & Gray LLP

One International Place

Boston, MA 02110

Attention:  Alison T. Bomberg,
Esq.

 

If to the Management Stockholders or any of them, to their addresses as
listed in the books of B&G Foods or the relevant Subsidiary.

 

All such notices shall be deemed to have been duly given: when
delivered by hand, if personally delivered; five business days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next business
day, if timely delivered to an air courier guaranteeing overnight delivery.

 

8.6.                              Governing Law.  The validity, performance, construction and effect of this
Agreement shall be governed by and construed in accordance with the internal
law of New York, without giving effect to principles of conflicts of law, except
to the extent that Delaware law shall be mandatorily applicable.

 

17

 

8.7.                              Headings.  The
headings in this Agreement are for convenience of reference only and shall not
constitute a part of this Agreement, nor shall they affect its meaning,
construction or effect.  Unless
otherwise specified, section references herein refer to sections of this
Agreement and schedules and exhibits refer to schedules and exhibits attached
hereto.

 

8.8.                              Counterparts. 
This Agreement may be executed in two or more counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original, and all of which taken together shall constitute
one and the same instrument.

 

8.9.                              Further Assurances.  Each party shall cooperate and take such action as may be
reasonably requested by another party in order to carry out the provisions and
purposes of this Agreement and the transactions contemplated hereby.

 

8.10.                        Remedies.  In
the event of a breach or a threatened breach by any party to this Agreement of
its obligations under this Agreement, any party injured or to be injured by
such breach, in addition to being entitled to exercise all rights granted by
law, including recovery of damages, will be entitled to specific performance of
its rights under this Agreement.  The
parties agree that the provisions of this Agreement shall be specifically
enforceable, it being agreed by the parties that the remedy at law, including
monetary damages, for breach of such provision will be inadequate compensation
for any loss and that any defense in any action for specific performance that a
remedy at law would be adequate is waived.

 

8.11.                        Party No Longer Owning Securities.  If a party hereto ceases to own any Existing
Securities or Securities, such party will no longer be deemed to be a
Stockholder or Management Stockholder for purposes of this Agreement.

 

8.12.                        No Effect on Employment.  Nothing herein contained shall confer on any
Management Stockholder the right to remain in the employ of B&G Foods or
any of the Subsidiaries or their Affiliates.

 

8.13.                        Pronouns. 
Whenever the context may require, any pronouns used herein shall be
deemed also to include the corresponding neuter, masculine or feminine forms.

 

18

 

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

 

	
   

  	
  B&G FOODS HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Name:

  	
  Robert Cantwell

  
	
   

  	
   

  	
    Title:

  	
  Executive Vice President Finance

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BRUCKMANN, ROSSER, SHERRILL & CO., L.P.

  
	
   

  	
  By:

  	
  BRS Partners, Limited Partnership, the general partner

  
	
   

  	
   

  	
  By:

  	
  BRSE Associates, Inc., its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    Name:

  	
  Stephen C. Sherrill

  
	
   

  	
   

  	
   

  	
   

  	
    Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CANTERBURY MEZZANINE CAPITAL II, L.P.

  
	
   

  	
  By:

  	
  Canterbury Capital II, LLC, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  PROTOSTAR EQUITY PARTNERS, L.P.

  
	
   

  	
  By:

  	
  Protostar Equity Advisors, LLC, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
								

 

[Signature Pages to the Second Amended and
Restated Securities Holders Agreement]

 

 

	
   

  	
  BRS STOCKHOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Bruce C. Bruckmann

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Harold O. Rosser II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Stephen C. Sherrill

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Polly Bruckmann for Estate of Donald Bruckmann

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. Baldwin

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  H. Virgil Sherrill

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Nancy Zweng

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  *

  	
   

  
	
   

  	
  Paul D. Kaminski

  	
   

  

 

 

	
   

  	
  *

  	
   

  	 

	
   

  	
  Polly Bruckmann

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  *

  	
   

  	 

	
   

  	
  Elizabeth McShane

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  *

  	
   

  	 

	
   

  	
  Beverly Place

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  BCB PARTNERSHIP

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By: Bruce C. Bruckmann, General Partner

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  *

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bruce C. Bruckmann

  	 

	
   

  	
   

  	
  Title:

  	
  General Partner

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  NAZ PARTNERSHIP

  	
   

  	 

	
   

  	
  By: Nancy Zweng, General Partner

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  *

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	 

	
   

  	
   

  	
  Title:

  	
   

  	 

						

 

 

	
   

  	
  MERRILL LYNCH, PIERCE, FENNER

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  & SMITH INCORPORATED, CUSTODIAN FBO

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  PAUL D. KAMINSKI IRA

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By: Paul D. Kaminski

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  *

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	 

	
   

  	
   

  	
  Title:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  *By:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Stephen C. Sherrill

  	 

	
   

  	
   

  	
   

  	
  Attorney-in-Fact

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  MANAGEMENT STOCKHOLDERS

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Leonard S. Polaner

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  David L. Wenner

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  David Burke

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Robert C. Cantwell

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  James Brown

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Albert Soricelli

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  Alfred Poe

  	
   

  	 

							

 

 

	
   

  	
   

  	
   

  
	
   

  	
  William F. Callahan, III

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sumner Kaufman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Marvin Schwinder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Greg Theile

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lou Sommer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Michael Malone

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William Wright

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Gaylord Sledge

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James DePrima

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James Buoye

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Rodger Graham

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Cynthia Wojcik

  	
   

  

 

 

	
   

  	
  EMERIL’S FOOD OF LOVE PRODCUTIONS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
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  WILLIAM MORRIS AGENCY, INC.

  
	
   

  	
   

  
	
   

  	
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EXHIBIT C

 

REGISTRATION RIGHTS AGREEMENT

 

ARTICLE I

 

DEFINITIONS

 

1.1.                              Definitions.  The following terms, as used herein, shall
have the following meanings:

 

“Agreement” means the Second Amended and Restated Securities
Holders Agreement to which this Registration Rights Agreement is an Exhibit.

 

“Board” means the board of directors of B&G Foods.

 

“BRS Demand Transferee” means any third party to whom any BRS
Entity assigns registration rights in accordance with Section 2.11 hereof.

 

“Canterbury Demand Transferee” means any third party to whom any
Canterbury Entity assigns registration rights in accordance with Section 2.11
hereof.

 

“Protostar Demand Transferee” means any third party to whom any
Protostar Entity assigns registration rights in accordance with Section 2.11
hereof.

 

“Demand Registration” means a registration under the Securities
Act made at the request of any of the BRS Entities, Canterbury Entities,
Protostar Entities or their respective Demand Transferees in accordance with
Section 2.2 hereof.

 

“Demand Transferee” means any of the BRS Demand Transferees, the
Canterbury Demand Transferees or the Protostar Demand Transferees.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 

“Holders” has the meaning given to such term in Section 2.1(a)
hereof.

 

“Maximum Offering Size” has the meaning given to such term in
Section 2.1(b) hereof.

 

“Person” means an individual, corporation, partnership, limited
liability company, association, trust or other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

 

“Public Offering” means an underwritten public offering of
Securities pursuant to an effective registration statement under the Securities
Act.

 

“Registrable Securities” means (i) any shares of Class B Common
Stock issued or issuable to or otherwise acquired by any BRS Entity, Canterbury
Entity, Protostar Entity or Management Stockholders and (ii) any Class B Common
Stock issued or issuable with respect to 

 

C-1

 

the securities referred to in
clause (i) above by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization, in any case until (x) a registration statement covering such
shares of Class B Common Stock has been declared effective by the SEC and such
securities have been disposed of pursuant to such effective registration
statement, (y) such securities have been sold under circumstances in which all
of the applicable conditions of Rule 144 (or any similar provisions then in
force) under the Securities Act have been met, or such securities may be sold
pursuant to Rule 144(k) or (z) such securities have been otherwise transferred,
B&G Foods has delivered a new certificate or other evidence of ownership
for such securities not bearing the legend set forth in Section 2.2 of the
Agreement (or other legend of similar import) and such securities may be resold
without subsequent registration under the Securities Act.

 

“Registration Expenses” means (i) all registration and filing
fees, (ii) fees and expenses relating to compliance with securities or blue sky
laws (including reasonable fees and disbursements of counsel in connection with
blue sky qualifications of the securities registered), (iii) printing expenses,
(iv) internal expenses of B&G Foods (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), (v) reasonable fees and disbursements of counsel for
B&G Foods and customary fees and expenses for independent certified public
accountants retained by B&G Foods (including the expenses of any comfort
letters or costs associated with the delivery by independent certified public
accountants of a comfort letter or comfort letters requested pursuant to
Section 2.4(h) hereof), (vi) reasonable fees and expenses of any special
experts retained by B&G Foods in connection with such registration, (vii)
reasonable fees and expenses of one counsel for the BRS Entities and BRS Demand
Transferees participating in the offering selected by the BRS Entities and BRS
Demand Transferees and reasonably acceptable to B&G Foods, (viii) reasonable
fees and expenses of one counsel for the Canterbury Entities, Protostar
Entities and their respective Demand Transferees participating in the offering
selected by the Canterbury Entities, Protostar Entities and their respective
Demand Transferees and reasonably acceptable to B&G Foods, (ix) fees and
expenses in connection with any review of underwriting arrangements by the
National Association of Securities Dealers, Inc. (the “NASD”), including fees
and expenses of any “qualified independent underwriter” and (x) fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities (but not including any underwriting fees, discounts or commissions
attributable to the sale of Registrable Securities, or any out-of-pocket
expenses (except as set forth in clauses (vii) and (viii) above) of the
Shareholders (or the agents who manage their accounts) or any fees and expenses
of underwriter’s counsel).

 

“Registration Securities” has the meaning given to such term in
Section 2.1(a).

 

“SEC” means the Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Selling Shareholder” means any BRS Entity, Canterbury Entity,
Protostar Entity or Demand Transferee who makes a request pursuant to Section
2.2 hereof that B&G Foods effect a Demand Registration.

 

C-2

 

“Shareholder” means each Person (other than B&G Foods) who
is a party to the Agreement, whether in connection with the execution and
delivery hereof as of the date of execution or otherwise in accordance
herewith, so long as such Person shall beneficially own any Registrable
Securities or have the irrevocable right to acquire Registrable
Securities.  The term “Shareholder,” to
the extent such Shareholder has transferred any of its, his or her Registrable
Securities to transferees in accordance with Section 2.11 hereof, shall mean
such Shareholder and such transferees, taken together, and any right or action
that may be exercised or taken at the election of such Shareholder may be
exercised or taken at the election of such Shareholder and such transferees.

 

Unless otherwise defined in this Exhibit, all terms used in this
Exhibit shall have the meanings ascribed to them in the Agreement.

 

ARTICLE II

 

REGISTRATION RIGHTS

 

2.1.                              Incidental
Registration.

 

(a)                                  If,
after the Demand Rights Effective Date (as defined below), B&G Foods
proposes to register any of its Class A Common Stock or EISs (or shares of
Class A Common Stock or Senior Subordinated Notes comprising the EISs) under
the Securities Act (other than a registration (i) on Form S-8 or S-4 or any
successor or similar forms or (ii) relating to EISs, Class A Common Stock or
Senior Subordinated Notes issuable upon exercise of employee stock options or
in connection with any employee benefit or similar plan of B&G Foods),
B&G Foods shall each such time, subject to the provisions of Section 2.1(b)
hereof, give prompt written notice at least concurrently with the initial
filing date of the registration statement relating to such registration to each
Shareholder, which notice shall set forth such Shareholder’s rights under this
Section 2.1 and shall offer all such Shareholders the opportunity to include in
such registration statement such amount of Registrable Securities as such
Shareholders shall request (each, an “Incidental Registration” and the
Shareholders requesting an Incidental Registration, the “Relevant
Shareholders”).  Upon the written
request of any Relevant Shareholder made within 15 days after the receipt of notice
from B&G Foods (which request shall specify the amount and kinds of
Registrable Securities intended to be disposed of by such Relevant
Shareholders), B&G Foods will use its best efforts to effect the
registration under the Securities Act of all such Registration Securities which
B&G Foods has been so requested to register by such Relevant Shareholders,
to the extent required to permit the disposition of such Registration
Securities to be so registered; provided
that (y) if such registration involves a Public Offering, all Relevant
Shareholders must sell their Registration Securities to the underwriters
selected as provided in Section 2.4(f) on the same terms and conditions as
applicable to B&G Foods and (z) if, at any time after giving written notice
of its intention to register any EISs, Class A Common Stock or Senior
Subordinated Notes pursuant to this Section 2.1(a) and prior to the effective
date of the registration statement filed in connection with such registration,
B&G Foods shall determine for any reason not to register such EISs, Class A
Common Stock or Senior Subordinated Notes, B&G Foods shall give written
notice thereof to all such Relevant Shareholders and, thereupon, shall be
relieved of its obligation to register any Registration Securities in
connection with such registration. 
B&G Foods will pay all Registration Expenses

 

C-3

 

in connection with each
registration of Registration Securities requested to be registered pursuant to
this Section 2.1 and Section 2.2.  All
Shareholders properly requesting registration of Registrable Securities under
this Section 2.1 are referred to as “Holders” and all Registrable Securities
sought to be registered by such Holders pursuant to this Section 2.1 or by a
BRS Entity, a Canterbury Entity, a Protostar Entity or a Demand Transferee
pursuant to Section 2.2 are referred to as “Registration Securities.”

 

(b)                                 If
a registration pursuant to this Section 2.1 involves a Public Offering (other
than in the case of a Public Offering pursuant to a Demand Registration, in
which case the provisions with respect to priority of inclusion in such
offering set forth in Section 2.2(c) shall apply) and the managing
underwriter(s) shall advise B&G Foods that, in its view, the amount of
securities which B&G Foods and the Relevant Shareholders intend to include
in such registration will exceed the amount which can be sold in such Public
Offering (the “Maximum Offering Size”), B&G Foods shall include in such
registration, up to the Maximum Offering Size, so many of the securities
proposed to be registered by B&G Foods as would not cause the offering to
exceed the Maximum Offering Size allocated in the following orders of
priority:  (i) first, all of the shares
of EISs and Class A Common Stock and Senior Subordinated Notes that B&G
Foods proposes to sell for its own account and (ii) second, the Registration
Securities requested to be included in such Incidental Registration by the
Holders; provided that if all the
Registration Securities requested to be included in such Incidental
Registration by the Holders are not to be included, selection of Registration
Securities to be included shall be made pro rata based on the number of
Registration Securities that each Holder shall have requested to be included
therein.

 

2.2.                              Demand
Registration.

 

(a)                                  At
any time after the earliest of:  (i) the
five-year anniversary of the consummation of the Initial Public Offering (the
“IPO Date”), (ii) the date upon which at least 10% of the Company’s shares of
Class A Common Stock issued in the Initial Public Offering are held separately
and not in the form of EISs so that a separate trading market in the Class A
Common Stock has developed and has subsisted for at least 180 days, as
evidenced by the listing of the Class A Common Stock on the American Stock
Exchange, any other national stock exchange or Nasdaq or any other national
quotation system, provided that at least one year has elapsed since the IPO
Date; and (iii) any earlier date, provided that the Company first confirms that
the exercise of the registration rights will not adversely affect the Company’s
treatment of the EISs and the Senior Subordinated Notes separate from the EISs
for financial reporting purposes (the “Demand Rights Effective Date”), a BRS
Entity or a BRS Demand Transferee, a Canterbury Entity, a Protostar Entity, a
Canterbury Demand Transferee or a Protostar Demand Transferee may make a
written request for registration with the SEC under and in accordance with the
provisions of the Securities Act of all or part of its, his or her Registrable
Securities; provided, that B&G Foods may, if the Board so determines in the
exercise of its reasonable judgment that it would be inadvisable to effect such
Demand Registration at such time, defer such Demand Registration for a single
period not to exceed 180 days.

 

(b)                                 BRS
Entities, Canterbury Entities and Protostar Entities (including each of their
respective Demand Transferees) shall each be entitled to two (2) Demand
Registrations per year following the Demand Rights Effective Date, provided
that no such Demand Registration request shall be made within 6 months of any
Incidental Registration or Demand Registration.  A

 

C-4

 

Demand Registration request by
a Shareholder will not count as the use by such Shareholder of his, her or its
Demand Registration request unless and until the requested Demand Registration
has become effective under the Securities Act, and unless such Shareholder
shall have been able to register and sell at least 75% of the Registrable
Securities initially requested to be registered by it pursuant hereto; provided
further, however, that in any event, B&G Foods will pay all Registration
Expenses in connection with any Demand Registration initiated by such
Shareholder whether or not it has become effective.

 

(c)                                  If
a Demand Registration involves a Public Offering and the managing
underwriter(s) shall advise B&G Foods that, in its view, the amount of
securities proposed to be sold in such Demand Registration will exceed the
Maximum Offering Size, B&G Foods shall include in such registration, up to
the Maximum Offering Size, so many of the securities proposed to be registered
as would not cause the offering to exceed the Maximum Offering Size allocated
in the following orders of priority: 
(i) first, the Registrable Securities requested to be included in such
Demand Registration by the Selling Shareholder(s), (ii) second, the Registrable
Securities requested to be included in such Demand Registration by the
Shareholders other than the Selling Shareholder(s) and (iii) third, any EISs,
Class A Common Stock, Class B Common Stock or Senior Subordinated Notes
proposed to be registered by B&G Foods; provided
that (y) if all the Registrable Securities requested to be included in such
Demand Registration by members of any group set forth above are not to be
included, selection of Registrable Securities to be included from within such
group shall be made pro rata based on the number of Registrable Securities that
each member of such group shall have requested to be included therein, and (z)
if any Shareholder has requested inclusion in such Demand Registration and if
10% or more of the Registrable Securities requested to be included by such
Shareholder are not so included, such Shareholder shall be entitled to an
additional Demand Registration hereunder on the same terms and conditions as
would have applied to such Shareholder had such earlier Demand Registration not
been effected.

 

(e)                                  B&G
Foods shall have the right to preempt the exercise of a Demand Registration by
offering to repurchase the shares of Class B Common Stock sought to be
registered for the per share fair market value of such Class B Common Stock
determined in accordance with Section 5.1 of the Agreement.

 

2.3.                              Holdback
Agreements.  If any registration of
Registration Securities shall be in connection with a Public Offering, each
Shareholder and B&G Foods agree not to effect any public sale or
distribution, including, without limitation, any sale pursuant to Rule 144, or
any successor provision, under the Securities Act, of any securities of the
same kind as the Registration Securities and not to effect any such public sale
or distribution of any other security convertible into or exchangeable or
exercisable for any such securities of B&G Foods (in each case, other than
as part of such Public Offering) during the 10 days prior to the effective date
of such registration statement (except as part of such registration) or during
the period after such effective date that shall be required by the managing
underwriter(s) (but not to exceed 180 days). 
B&G Foods agrees that it will use its best efforts to require a
similar commitment from future holders of its securities.

 

2.4.                              Registration
Procedures.  In connection with any
registration of any Registrable Securities under the Securities Act pursuant to
Section 2.1 or 2.2 hereof, B&G Foods

 

C-5

 

will, subject to the provisions
of such Sections, use its best efforts to effect the registration and the sale
of such Registration Securities in accordance with the intended method of
disposition thereof as quickly as practicable and in connection with any such
request:

 

(a)                                  in
the case of a registration pursuant to Section 2.1 or 2.2, B&G Foods will
as expeditiously as possible prepare and file with the SEC a registration
statement on any form for which B&G Foods then qualifies or which counsel
for B&G Foods shall deem appropriate and which form shall be available for
the sale of the Registration Securities to be registered thereunder in
accordance with the intended method of distribution thereof, and use its best
efforts to cause such filed registration statement to become and remain
effective and usable for a period of not less than 270 days (or such shorter
period in which all of the Registration Securities of the Shareholders included
in such registration statement shall have actually been sold thereunder),
subject to proviso (z) of Section 2.1(a).

 

(b)                                 B&G
Foods will, if requested, prior to filing a registration statement or
prospectus or any amendment or supplement thereto, furnish to each Shareholder
that is participating in a registration hereunder and each underwriter, if any,
of the securities covered by such registration statement copies of such
registration statement as proposed to be filed, and thereafter B&G Foods
will furnish to each such Shareholder and underwriter, if any, such number of
copies of such registration statement, each amendment and supplement thereto
(in each case including all exhibits thereto and documents incorporated by
reference therein), the prospectus included in such registration statement
(including each preliminary prospectus and all amendments and supplements
thereto) and such other documents as each such Shareholder or underwriter, if
any, may reasonably request in order to facilitate the proposed sale or
disposition of the Registration Securities owned by each such Shareholder which
are covered by such registration statement. 
B&G Foods hereby consents to the use of the prospectus, including
each preliminary prospectus, each as referred to in the immediately preceding
sentence, by each such Shareholder and each underwriter, if any, of the
Registration Securities covered by such registration statement, in connection
with the offering and sale of such securities covered by such prospectus or
preliminary prospectus.

 

(c)                                  After
the filing of the registration statement, B&G Foods will (i) prepare and
file with the SEC such amendments and post-effective amendments to the
registration statement as may be necessary to keep such registration statement
effective and usable for the period set forth in Section 2.4(a), (ii) cause the
related prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 under the Securities
Act, (iii) comply with the provisions of the Securities Act with respect to the
disposition of all Registration Securities covered by such registration statement
during the applicable period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement or
supplement to such prospectus and (iv) promptly notify each Shareholder holding
Registration Securities covered by such registration statement of any stop
order issued or threatened by the SEC or any state securities commission under
state blue sky laws and take all reasonable actions required to prevent the
entry of such stop order or to remove it if entered.

 

(d)                                 B&G
Foods will use its best efforts to (i) register or qualify the Registration
Securities covered by such registration statement under such other securities
or blue

 

C-6

 

sky laws of such jurisdictions
in the United States as any Shareholder holding such Registration Securities
reasonably (in light of such Shareholder’s intended plan of distribution)
requests and (ii) cause such Registration Securities to be registered with or
approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of B&G Foods and do any and all
other acts and things that may be reasonably necessary or advisable to enable
such Shareholder to consummate the disposition of such Registration Securities
owned by such Shareholder; provided that B&G Foods will not be required to
(A) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph 2.4(d), (B) subject
itself to taxation in any such jurisdiction or (C) consent to general service
of process in any such jurisdiction.

 

(e)                                  B&G
Foods will immediately notify each Shareholder holding such Registration
Securities, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the occurrence of an event requiring the
preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registration Securities, such
prospectus will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading and promptly prepare and make available to each such
Shareholder any such supplement or amendment.

 

(f)                                    In
the event of a Public Offering, B&G Foods may, subject to its other
contractual obligations, select in its sole discretion, an underwriter or
underwriters and legal counsel as it may deem appropriate.  B&G Foods will enter into customary
agreements (including an underwriting agreement in customary form) and take
such other actions as are reasonably necessary in order to expedite or
facilitate the disposition of such Registration Securities, including, without
limitation, the engagement of a “qualified independent underwriter” in
connection with the qualification of the underwriting arrangements with the
NASD, maintaining a current marketmaking prospectus and conducting customary
“road show” presentations.

 

(g)                                 B&G
Foods shall make available for inspection by any Shareholder and any
underwriter participating in any disposition pursuant to a registration
statement being filed by B&G Foods pursuant to this Section 2.4 and any
attorney, accountant or other professional retained by any such Shareholder or
underwriter (collectively, the “Inspectors”), all financial and other records,
pertinent corporate documents and properties of B&G Foods (collectively,
the “Records”) as shall be reasonably requested by any such Inspector, and
cause B&G Foods’ officers, directors and employees to supply all
information reasonably requested by any Inspectors in connection with such
registration statement; provided
that Records which B&G Foods determines, in good faith, to be confidential
and which B&G Foods notifies the Inspectors as being confidential shall not
be disclosed by the Inspectors unless (i) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in such registration
statement, (ii) the release of such Records is ordered pursuant to a subpoena
or other order from a court of or agency with competent jurisdiction or (iii)
such Records have previously been generally made available to the public.

 

C-7

 

(h)                                 B&G
Foods will obtain and furnish to each such Shareholder and to each such
underwriter, if any, a signed counterpart of (i) an opinion or opinions of
counsel to B&G Foods and (ii) a comfort letter or comfort letters from
B&G Foods’ independent public accountants, each in customary form and
covering such matters of the type customarily covered by opinions or comfort
letters, as the case may be, as holders of a majority of the aggregate amount
of Registration Securities or the managing underwriter therefor reasonably
requests.

 

(i)                                     B&G
Foods shall use its best efforts to effect the listing of the Registration
Securities on each securities exchange, if any, on which such Registration
Securities are then listed or will be listed in connection with the
registration of the Registration Securities, to the extent the Registration
Securities satisfy the applicable listing requirements of such exchanges.

 

(j)                                     B&G
Foods shall use its best efforts to comply with all applicable rules and
regulations of the SEC and the relevant state blue sky commissions, and make
available to its securityholders, as soon as reasonably practicable, an
earnings statement covering a period of 12 months, beginning within three months
after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 promulgated thereunder.

 

B&G Foods may require each such Shareholder to promptly furnish in
writing to B&G Foods such information regarding the distribution of the
Registration Securities as B&G Foods may from time to time reasonably
request and such other information as may be legally required in connection
with such registration.

 

Each such Shareholder agrees that, upon receipt of any notice from
B&G Foods of the happening of any event of the kind described in Section
2.4(e) hereof, such Shareholder will forthwith discontinue disposition of
Registration Securities pursuant to the registration statement covering such
Registration Securities until such Shareholder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.4(e) hereof, and,
if so directed by B&G Foods, such Shareholder will deliver to B&G Foods
all copies, other than any permanent file copies then in such Shareholder’s
possession, of the most recent prospectus covering such Registration Securities
at the time of receipt of such notice. 
In the event that B&G Foods shall give such notice, B&G Foods
shall extend the period during which such registration statement shall be
maintained effective (including the period referred to in Section 2.4(a)
hereof) by the number of days during the period from and including the date of
the giving of notice pursuant to Section 2.4(e) hereof to the date when B&G
Foods shall make available to such Holder a prospectus supplemented or amended
to conform with the requirements of Section 2.4(e) hereof.

 

2.5.                              Indemnification
by B&G Foods.  B&G Foods
agrees to indemnify and hold harmless each Shareholder, each Person, if any,
who controls such Shareholder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act and the respective officers,
directors, partners, employees, representatives and agents of each Shareholder
and each controlling Person, to the fullest extent lawful, from and against any
and all losses, claims, damages, liabilities, judgments, actions and expenses
(including, without limitation and as incurred, reimbursement of all costs of investigating,
preparing, pursuing and defending any claim or action, or any investigation or
proceeding by any governmental agency or body,

 

C-8

 

commenced or threatened,
including the fees and expenses of counsel to any such indemnified Person)
(collectively, “Losses”) directly or indirectly caused by or arising out of any
untrue statement or alleged untrue statement of a material fact contained in
any registration statement (or any amendment thereto) or prospectus relating to
such Shareholder’s Registration Securities (as amended or supplemented if
B&G Foods shall have furnished any amendments or supplements thereto) or
any preliminary prospectus or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein (in the case of the prospectus or any preliminary
prospectus, in light of the circumstances under which they were made) not
misleading, except insofar as such Losses are caused by any such untrue
statement or omission or alleged untrue statement or omission that is made in
reliance upon and in conformity with information furnished in writing to
B&G Foods by such Shareholder or on such Shareholder’s behalf expressly for
use therein; provided that with
respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus, or in any prospectus, as the case
may be, the indemnity agreement contained in this paragraph shall not apply to the
extent that any such Losses results from the fact that a current copy of the
prospectus (or amended or supplemented prospectus, as the case may be) was not
sent or given to the Person asserting any such Losses at or prior to the
written confirmation of the sale of the Registration Securities concerned to
such Person if it is determined that B&G Foods has provided such prospectus
(or amended or supplemented prospectus, as the case may be) and it was the
responsibility of such Shareholder to provide such Person with a current copy
of the prospectus (or amended or supplemented prospectus, as the case may be)
and such current copy of the prospectus (or amended or supplemented prospectus,
as the case may be) would have completely cured the defect giving rise to such
Losses.  B&G Foods also agrees to
indemnify any underwriters of the Registration Securities, their officers and
directors and each Person who controls such underwriters on substantially the
same basis as that of the indemnification of the Shareholders provided in this
Section 2.5.

 

2.6.                              Indemnification
by Participating Shareholders.  Each
Shareholder holding Registration Securities included in any registration
statement agrees, severally but not jointly, to indemnify and hold harmless
B&G Foods, each Person, if any, who controls B&G Foods within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
and the respective officers, directors, partners, employees, representatives
and agents of B&G Foods and each controlling Person to the same extent as
the foregoing indemnity from B&G Foods to such Shareholder, but only (a)
with respect to information furnished in writing by such Shareholder or on such
Shareholder’s behalf expressly for use in any registration statement or prospectus
relating to such Registration Securities, or any amendment or supplement
thereto, or any preliminary prospectus or (b) to the extent that any Losses
described in Section 2.5 results from the fact that a current copy of the
prospectus (or amended or supplemented prospectus, as the case may be) provided
by B&G Foods was not sent or given to the Person asserting any such Losses
at or prior to the written confirmation of the sale of the Registration
Securities concerned to such Person if it is determined that it was the
responsibility of such Shareholder to provide such Person with a current copy
of the prospectus (or amended or supplemented prospectus, as the case may be)
and such current copy of the prospectus (or amended or supplemented prospectus,
as the case may be) would have completely cured the defect giving rise to such
Losses.  Each such Shareholder also
agrees to indemnify and hold harmless any underwriters of the Registration
Securities, their officers and directors and each Person who controls such

 

C-9

 

underwriters on substantially
the same basis as that of the indemnification of B&G Foods provided in this
Section 2.6.

 

2.7.                              Conduct
of Indemnification Proceedings.  In
case any proceeding (including, without limitation, any governmental
investigation) shall be instituted involving any Person in respect of which
indemnity may be sought pursuant to this Article II, such Person (an
“Indemnified Party”) shall promptly notify the Person against whom such
indemnity may be sought (the “Indemnifying Party”) in writing and the
Indemnifying Party shall assume the defense thereof, including, without
limitation, the employment of counsel reasonably satisfactory to such
Indemnified Party, and shall assume the payment of all fees and expenses
related thereto; provided that
the failure of any Indemnified Party to so notify the Indemnifying Party shall
not relieve the Indemnifying Party of any obligations hereunder except to the
extent that the Indemnifying Party is prejudiced by such failure to
notify.  In any such proceeding, each
Indemnified Party shall have the right to retain its, his or her own counsel,
but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (a) the Indemnifying Party and the Indemnified Party
shall have mutually agreed to the retention of such counsel or (b) in the
reasonable judgment of such Indemnified Party representation of both parties by
the same counsel would be inappropriate due to an actual or potential conflict
of interest between them.  The
Indemnifying Party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) at
any time for all such Indemnified Parties, unless in the reasonable judgment of
any Indemnified Party a conflict of interest may exist between such Indemnified
Party and any other of such Indemnified Parties with respect to such proceeding,
and all such fees and expenses shall be reimbursed as they are incurred.  In the case of any such separate firm(s) for
the Indemnified Parties, such firm(s) shall be designated in writing by the
Indemnified Parties.  The Indemnifying
Party shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent, or if consent is
withheld and there shall be a final judgment for the plaintiff, the
Indemnifying Party shall indemnify and hold harmless such Indemnified Parties
from and against any Losses (to the extent stated above) by reason of such
settlement or judgment.  No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect
any settlement of any pending or threatened proceeding in respect of which any
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability arising out
of such proceeding.

 

2.8.                              Contribution.  If the indemnification provided for in this
Article II is unavailable to the Indemnified Parties in respect of any Losses
referred to herein, then each such Indemnifying Party, in lieu of indemnifying
such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses (a) as between B&G Foods and
the Shareholders holding Registration Securities covered by a registration
statement, on the one hand, and the underwriters, if any, on the other hand, in
such proportion as is appropriate to reflect the relative benefits received by
B&G Foods and such Shareholders, on the one hand, and the underwriters, if
any, on the other hand, from the offering of the Registration Securities, or if
such allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits but also the relative
fault of B&G Foods and such Shareholders, on the one hand, and of such
underwriters, if any, on the

 

C-10

 

other hand, in connection with
the statements or omissions which resulted in such Losses, as well as any other
relevant equitable considerations and (b) as between B&G Foods, on the one
hand, and each such Shareholder, on the other hand, in such proportion as is
appropriate to reflect the relative fault of B&G Foods and of each such
Shareholder in connection with such statements or omissions, as well as any
other relevant equitable considerations. 
The relative benefits received by B&G Foods and such Shareholders,
on the one hand, and such underwriters, if any, on the other hand, shall be
deemed to be in the same proportion as the aggregate proceeds from the offering
(net of underwriting discounts and commissions but before deducting expenses)
received by B&G Foods and such Shareholders bear to the aggregate
underwriting discounts and commissions received by such underwriters, in each
case as set forth in the table on the cover page of the prospectus.  The relative fault of B&G Foods and such
Shareholders, on the one hand, and of such underwriters, if any, on the other
hand, shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
B&G Foods and such Shareholders or by such underwriters.  The relative fault of B&G Foods, on the
one hand, and of each such Shareholder, on the other hand, shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by such party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

B&G Foods and the Shareholders agree that it would not be just and
equitable if contribution pursuant to this Section 2.8 were determined by pro  rata
allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an Indemnified
Party as a result of the Losses referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or
claim.  Notwithstanding the provisions
of this Section 2.8, no underwriter shall be required to contribute, or shall
be liable under any other provision of this Article II for, any amount in
excess of the amount by which the aggregate price at which the Registration
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission, and no Shareholder shall be required to
contribute, or shall be liable under any other provision of this Article II
for, any amount in excess of the amount by which the aggregate price at which
the Registration Securities of such Shareholder were offered to the public
exceeds the amount of any damages which such Shareholder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
Each such Shareholder’s obligation to contribute pursuant to this
Section 2.8 is several in the proportion that the proceeds of the offering
received by such Shareholder bears to the aggregate proceeds of the offering
received by all such Shareholders and not joint.

 

C-11

 

2.9.                              Participation
in Public Offering.  No Person may
participate in any Public Offering hereunder unless such Person (a) agrees to
sell such Person’s securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires,
powers-of-attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements and the
provisions of the Agreement in respect of registration rights.

 

2.10.                        Other
Indemnification.  Indemnification
similar to that specified herein (with appropriate modifications) shall be
given by B&G Foods and each Shareholder participating therein with respect
to any required registration or other qualification of securities under any
federal or state law or regulation or governmental authority other than the
Securities Act.

 

2.11.                        Transfer
of Registration Rights.  In
connection with any transfer of Registrable Securities by the Shareholders to
any third party (which transfer must be in compliance with the Securities Act
and the Agreement), the Shareholders may assign any registration rights to
which they are entitled hereunder, provided
that such third party agrees to be bound by all of the terms and conditions of
the Agreement.  It is understood and
agreed that B&G Foods will be under no obligation to effect a registration
of Registrable Securities held by such third party except and to the extent
such third party requests in notices provided by it to B&G Foods in
accordance with Section 2.1 or 2.2.

 

C-12

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