Document:

Exhibit 10.12

 

FORM OF SECOND
AMENDED AND RESTATED

SECURITIES HOLDERS AGREEMENT

 

dated as of
April [     ], 2004

 

among

 

 

B&G FOODS
HOLDINGS CORP.

 

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

 

CANTERBURY
MEZZANINE CAPITAL II, L.P.,

 

THE CIT
GROUP/EQUITY INVESTMENTS, INC.

 

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

  	
  REGISTRATION RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  EXCHANGE OF CLASS B COMMON STOCK FOR EISs

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Exchange of Class B Common Stock for EISs.

  	
   

  
	
  6.2.

  	
  No Fractional Shares.

  	
   

  
	
  6.3.

  	
  Exchange Rate Adjustments.

  	
   

  
	
  6.4.

  	
  Related Covenants.

  	
   

  
	
  6.5.

  	
  Certain Defined Terms.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  AMENDMENT AND RESTATEMENT; REPURCHASE OF
  PREFERRED 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.

  	
   

  
	
  7.5.

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

  	
   

  
	
  7.6.

  	
  Release From Liability.

  	
   

  

 

i

 

	
  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
April [    ], 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) THE
CIT GROUP/EQUITY INVESTMENTS, INC., a New Jersey corporation (“CIT” and,
together with its Permitted Transferees, the “CIT 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 CIT 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.                                    CIT
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 Food s 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 $6.00 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 155.5556 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 155.5556. 
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 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 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 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 and the EISs.

 

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)
[                            ]
shares of Common Stock, consisting of [                            ]
shares of Class A Common Stock and
[                            ]
shares of Class B Common Stock, of which
[                            ]
shares of Class A Common Stock, or if the Over-Allotment Option (as defined
below) is exercised in full
[                            ]
shares of Class A Common Stock, and
[                            ]
shares of Class B Common Stock, or if the Over-Allotment Option is exercised in
full
[                            ]
shares of Class B Common Stock, will be issued and outstanding and (ii)
[100,000] 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 as provided in this Agreement, in the
foregoing sentence, as set forth in the terms of the capital stock of B&G
Foods or 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, except, in the case of CIT, the consent
of Protostar Equity Partners, L.P., a Delaware limited partnership
(“Protostar”), which consent has been obtained on or prior to the date hereof
and a copy of which has been provided to B&G Foods; 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.

 

4

 

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

 

(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, except, in the case of CIT,
a conditional sale agreement to Protostar, a copy of which has been provided to
B&G Foods (the “CIT Conditional Sale Agreement”).

 

(f)                                    Such
Stockholder has not sold, transferred, assigned, conveyed, pledged or
encumbered in any manner whatsoever all or any part of the Existing Securities,
except that CIT has entered into the CIT Conditional Sale Agreement.

 

(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 or the EISs (including the shares of
Class A Common Stock and the Senior Subordinated Notes comprising the EISs),
including certificates issued upon any voluntary or involuntary transfer of
such Securities, EISs, Class A Common Stock or Senior Subordinated Notes,
unless such transfer is pursuant to a registered public offering of the
Securities, EISs, Class A Common Stock or Senior Subordinated Notes 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

 

5

 

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 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 CIT Entity:

 

(a)                                  Subject
to the additional conditions to Transfer by the Management Stockholders imposed
by Section 6.2 hereof, each Management Stockholder, BRS Entity, Canterbury
Entity and CIT Entity is prohibited from Transferring any of his or its
Securities except in the following circumstances: (i) to Permitted Transferees
(as hereinafter defined), and (ii) 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; 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 CIT 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, CIT 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 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.

 

6

 

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
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

 

7

 

(iv)                              in
the case of any CIT Entity, (A) any other CIT Entity, (B) any Affiliate of
any CIT Entity, (C) Protostar and (D) any Affiliate of Protostar.

 

(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 and EISs (including the
shares of Class A Common Stock and the Senior Subordinated Notes comprising the
EISs) 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 EISs (including the shares of Class A Common
Stock and the Senior Subordinated Notes comprising the EISs) and, under certain
circumstances, to pay dividends on the Class A Common Stock and 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.
Subject to Section 6.1 hereof and 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)
purchased or acquired in connection with an exchange of its shares of Class B
Common Stock for EISs, (ii) issued or distributed to such Stockholder in
connection with EISs previously acquired by such Stockholder or (iii) purchased
or acquired in the form of EISs.  Each
Stockholder agrees that from time to time as requested by the Company such
Stockholders will provide a written Certificate to the Company 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 from the date of the prospectus included in
the EIS Registration Statement (the “Lock-Up Period”).

 

8

 

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.

 

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.

 

9

 

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 right to elect two 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

 

10

 

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.

 

(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

 

REGISTRATION
RIGHTS

 

The Stockholders shall have registration rights with respect to the
EISs, Class A Common Stock and Class B Common Stock as set forth in the Registration
Rights Agreement attached hereto as Exhibit B (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 (other than any EISs, Class A Common Stock or Senior
Subordinated Notes not acquired by such Stockholder upon exchange of Class B
Common Stock) 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 VI

 

EXCHANGE OF
CLASS B COMMON STOCK FOR EISs

 

6.1.                              Exchange of Class B Common Stock for
EISs.

 

(a)                                  Shares
of Class B Common Stock shall be exchangeable for EISs at the option of the holder
thereof on any Exchange Date (as defined below) at the Exchange Rate (as
defined below); provided, however, that until the second anniversary of the
date of consummation of the Initial Public Offering, shares of Class B Common
Stock shall not be exchangeable for EISs if after giving effect to such
exchange, the total shares of Class B

 

11

 

Common Stock
outstanding would be fewer than [3,994,396] shares on a fully diluted
basis.  If on any Exchange Date, the
Stockholders propose to exchange a greater number of shares of Class B Common
Stock than may be exchanged in accordance with the immediately preceding
sentence, the shares of Class B Common Stock accepted for exchange by the
Company shall be allocated among the Stockholders in the following
priority:  (i) first, pro rata among the
BRS Entities, the Canterbury Entities and the CIT Entities pro rata in
proportion to the number of shares, if any, of Class B Common Stock proposed to
be exchanged by such Stockholders on such Exchange Date and (ii) second, pro
rata among the Management Stockholders in proportion to the number of shares of
Class B Common Stock proposed to be exchanged by such Management Stockholders
on such Exchange Date.

 

Notwithstanding anything in this Article VI to the contrary other
than Section 6.1(e) and (f), no Stockholder shall have any right to
exchange, and the Company may not exchange, any shares of Class B Common Stock
for EISs:  (i) 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 (the “Senior Subordinated Note Indenture”) has occurred and
is continuing or would be caused thereby or so long as 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, (ii) unless
the Lock-Up Period has expired and (iii) unless the EISs issuable upon such
exchange have been registered under the Securities Act.

 

(b)                                 To
exercise the exchange right, the holder of Class B Common Stock to be exchanged
shall surrender the certificate representing such Class B Common Stock, duly
endorsed or assigned to B&G Foods or in blank, at the principal office of
the Transfer Agent (as defined below) accompanied by written notice to B&G
Foods that such holder elects to exchange such Class B Common Stock. Unless the
EISs issuable on exchange are to be issued in the same name as the name in
which the Class B Common Stock is registered, in which case B&G Foods shall
bear the related taxes, each share surrendered for exchange shall be
accompanied by instruments of transfer, in form and substance satisfactory to
the Transfer Agent and B&G Foods, duly executed by the holder or such
holder’s duly authorized attorney and an amount sufficient to pay any transfer
or similar tax (or evidence reasonably satisfactory to the Transfer Agent and
B&G Foods demonstrating that such taxes have been paid).

 

(c)                                  Each
exchange consummated pursuant to this Section 6.1 shall be deemed to have
been effected immediately prior to the close of business on the applicable
Exchange Date, provided that certificates representing shares of Class B Common
Stock shall have been surrendered and such notice (and if applicable, payment
of an amount equal to the distribution payable on such shares) received by
B&G Foods as aforesaid, and the person or persons in whose name or names
any certificate or certificates representing EISs shall be issuable upon such
exchange shall be deemed to have become the holder or holders of record of the
shares represented thereby at such time on such Exchange Date, and such
exchange shall be at the Exchange Rate in effect at such time and on such date
unless the stock transfer records of B&G Foods for the Class B Common Stock
shall be closed on that date, in which event such person or persons shall be
deemed to have become such holder or holders or record at the close

 

12

 

of business on
the next succeeding day on such stock transfer records for the Class B Common
Stock are open, but such exchange shall be at the Exchange Rate in effect on
the date on which such shares have been surrendered and such notice received by
B&G Foods.

 

(d)                                 As
promptly as practicable after the surrender of the certificates representing
the Class B Common Stock as aforesaid, B&G Foods shall issue and deliver at
such office to such holder, or on his written order, certificates representing
the full number of shares of Class A Common Stock and Senior Subordinated Notes
represented by the EISs issuable upon the exchange of such shares of Class B
Common Stock in accordance with the provisions of this Section 6.1, and
any fractional interest shall be settled as provided by Section 6.2 below.

 

(e)                                  Notwithstanding
anything to the contrary contained in this Agreement, in the event of a
mandatory or optional redemption by B&G Foods of 100% of the Senior
Subordinated Notes such that following the redemption there will no longer be
any Senior Subordinated Notes and EISs outstanding, B&G Foods shall give
notice to the holders of the Class B Common Stock [15] days prior to such
redemption date (the “Notes Redemption Date”). 
Notwithstanding the Lock-Up Period or any other restrictions on exchange
set forth in this Agreement, if B&G Foods redeems all of the Senior
Subordinated Notes outstanding, all outstanding shares of the Class B Common
Stock will be automatically (and without any action required on the part of the
holders of the Class B Common Stock) exchanged on the Notes Redemption Date for
EISs at the Exchange Rate, and the Senior Subordinated Notes acquired by the
holders of the Class B Common Stock as part of the EISs in such exchange shall
be redeemed by B&G Foods as part of such mandatory or optional
redemption.  If such exchange occurs
during the Lock-Up Period, all shares of Class A Common Stock acquired upon the
exchange will remain subject to the Lock-Up Agreement for the remainder of the
Lock-Up Period.

 

(f)                                    Notwithstanding
anything to the contrary contained in this Agreement, following the maturity
date of the Senior Subordinated Notes, and during any period in which there are
otherwise no longer any Senior Subordinated Notes and EISs outstanding (other than
in connection with a mandatory or optional redemption of 100% of the Senior
Subordinated Notes), the holders of Class B Common Stock shall have the right
to exchange their shares of Class B Common Stock for shares of Class A Common
Stock on a one-for-one basis.

 

6.2.                              No Fractional Shares.   No fractional portion of an EIS shall be issued upon exchange of
Class B Common Stock.  Instead of any
fraction of an EIS that would otherwise be deliverable upon the exchange of
Class B Common Stock, B&G Foods shall pay to the holder of such shares an
amount in cash in respect of such fractional interest based upon the Fair
Market Value (as defined below) of EISs on the Trading Day immediately
preceding the Exchange Date.

 

6.3.                              Exchange Rate Adjustments.

 

(a)                                  The
Exchange Rate shall be adjusted from time to time as follows:

 

(i)                                     If
B&G Foods shall after the date on hereof:

 

13

 

(1)                                  pay
or make a distribution to holders of Class A Common Stock in the form of shares
of Class A Common Stock or Class B Common Stock;

 

(2)                                  subdivide
its outstanding Class A Common Stock or Class B Common Stock into a greater
number of shares of Class A Common Stock or Class B Common Stock;

 

(3)                                  combine
its outstanding Class A Common Stock or Class B Common Stock into a smaller
number of shares of Class A Common Stock or Class B Common Stock;

 

(4)                                  issue
any equity securities by reclassification of its Class A Common Stock or Class
B Common stock (other than any reclassification by way of merger or binding
share exchange that is subject to Section 6.3(b)); or

 

(5)                                  issue
rights, options or warrants to all holders of Class A Common Stock entitling
them [(for a period expiring within 45 days after the record date for
determination of stockholders entitled to receive such rights, options or
warrants)] to subscribe for or purchase EISs, Class A Common Stock [and/or
Class B Common Stock] at a price per share less than the Fair Market Value per
share of EISs, Class A Common Stock [or Class B Common Stock] on the record
date for the determination of stockholders entitled to receive such rights,
options or warrants;

 

then the
Exchange Rate in effect at the opening of business on the day following the
record date for the determination of stockholders entitled to receive such
distribution or at the opening of business on the day following the day on
which such subdivision, combination or reclassification becomes effective, as
the case may be, shall be adjusted so that the holder of any share of Class B
Common Stock thereafter surrendered for exchange shall be entitled to receive
the number of EISs (including the number of shares of Class A Common Stock and
the principal amount of Senior Subordinated Notes comprising the EISs) and
other equity securities issued by reclassification of Class A Common Stock or
Class B Common Stock that such holder would have owned or have been entitled to
receive after the happening of any of the events described above had such
shares been exchanged immediately prior to the record date in the case of a
distribution or the effective date in the case of a subdivision, combination or
reclassification.  An adjustment made
pursuant to this subparagraph (i) shall become effective immediately after the
opening of business on the day following such record date (except as provided
in Section 6.3(e)) in the case of a distribution and shall become
effective immediately after the opening of business on the day next following
the effective date in the case of a subdivision, combination or reclassification.

 

(ii)                                  If
B&G Foods shall after the date of consummation of the Initial Public
Offering issue or sell EISs (or securities convertible into or exchangeable for
EISs) at a price per EIS less than the Fair Market Value per EIS on the date of
issuance or sale, then the Exchange Rate in effect immediately prior to such
issuance or sale shall be adjusted to equal the amount determined by
multiplying (I) the Exchange Rate in effect immediately prior to such issuance
or sale by (II) a fraction, the numerator of which shall be the sum of (A) the
number of EISs outstanding immediately prior to such issuance or sale and (B)
the number of additional

 

14

 

EISs issued or
sold and the denominator of which shall be the sum of (A) the number of EISs
outstanding immediately prior to such issuance or sale and (B) the number of
shares that the aggregate proceeds to B&G Foods from the issuance or sale
of such EISs would purchase at such Fair Market Value.  Such adjustment shall become effective
immediately after the opening of business on the day following such issuance or
sale.  In determining whether any such
issuance or sale would allow the holders of EISs to subscribe for or purchase
EISs at less than the Fair Market Value, the value of any consideration
received by B&G Foods other than cash shall be determined by the Board of
Directors of B&G Foods.

 

(iii)                               Except
as provided in clauses (i) or (ii) of this Section 6.3(a), if B&G
Foods shall after the date of consummation of the Initial Public Offering issue
or sell shares of Class A Common Stock (or securities convertible into or
exchangeable for shares of Class A Common Stock) at a price per share of Class
A Common Stock less than the Fair Market Value per share of Class A Common
Stock on the date of issuance or sale, then the Exchange Rate in effect
immediately prior to the issuance or sale shall be adjusted as the board of
Directors determines to be equitable in the circumstances.  Such adjustment shall become effective immediately
after the opening of business on the day following such issuance or sale.  In determining whether any such issuance or
sale would allow the a person or entity to subscribe for or purchase shares of
Class A Common Stock at less than the Fair Market Value, the value of any
consideration received by B&G Foods upon such sale other than cash shall
determined by the Board of Directors of B&G Foods.

 

(iv)                              No
adjustment in the Exchange Rate shall be required unless such adjustment would
require a cumulative increase or decrease of at least [1]% in the Exchange
Rate; provided, however, that any adjustments that by reason of this
subparagraph (iv) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment until made; [and provided,
further, that any adjustment shall be required and made in accordance with the
provisions of this Section 6.3 (other than this subparagraph (iv)) not
later than such time as may be required in order to preserve the tax-free nature
of a distribution to the holders of EISs]. 
All calculations under this Section 6.3 shall be made to the
nearest cent (with $.005 being rounded upward) or to the nearest one-tenth of a
share (with .05 of a share being rounded upward), as the case may be.  Anything in this subsection (a) to the
contrary notwithstanding, B&G Foods shall be entitled, to the extent
permitted by law, to make such increases in the Exchange Rate, in addition to
those required by this subsection (a), as it in its discretion shall determine
to be advisable in order that any share distributions, subdivision,
reclassification or combination of shares, distribution of rights, options or
warrants to purchase shares or securities, or a distribution of other assets
(other than cash distributions) hereafter made by B&G Foods to its
stockholders shall not be taxable.

 

(b)                                 Except
as otherwise provided for in Section 6.3(a)(i), if B&G Foods shall be
a party to any transaction (including, without limitation, a merger,
consolidation, statutory share exchange, tender offer for all or substantially
all of the EISs or Class A Common Stock, sale or transfer of all or
substantially all of B&G Foods’ assets or recapitalization of the EISs or
Class A Common Stock) (each of the foregoing being referred to herein as a
“Transaction”), in each case as a result of which EISs or Class A Common Stock
shall be converted into the right to receive shares, stock, securities or other
property (including cash or any combination thereof), B&G Foods (or its
successor in such Transaction) shall make

 

15

 

appropriate
provision so that each share of Class B Common Stock, if not converted into the
right to receive shares, stock, securities or other property in connection with
such Transaction in accordance with the third to last sentence of this
subsection (b) shall thereafter be exchangeable into the kind and amount
of shares, stock, securities and other property (including cash or any
combination thereof) receivable upon the consummation of such Transaction by a
holder of that number of EISs into which one share of Class B Common Stock was
convertible immediately prior to such Transaction, assuming such holder of
Common Stock (i) is not a Person with which B&G Foods consolidated or into
which B&G Foods merged or which merged into B&G Foods or to which such
sale or transfer was made, as the case may be (a “Constituent Person”), or an
affiliate of a Constituent Person and (ii) failed to exercise his rights of the
election, if any, as to the kind or amount of shares, stock, securities and
other property (including cash or any combination thereof) receivable upon such
Transaction (each, a “Non-Electing Share”) (provided that if the kind and
amount of shares, stock, securities and other property (including cash or any
combination thereof) receivable upon consummation of such Transaction is not
the same for each Non-Electing Share, the kind and amount of shares, stock,
securities and other property (including cash or any combination thereof)
receivable upon such Transaction by each Non-Electing Share shall be deemed to
be the kind and amount so receivable per share by a plurality of the
Non-Electing Shares). B&G Foods shall not be a party to any Transaction in
which any share of Class B Common Stock is converted into the right to receive
shares, stock, securities or other property (including cash or any combination
thereof) with an aggregate value (as determined by the Board of Directors in
good faith, whose determination shall be conclusive) less than that receivable
by the number of shares of EISs into which shares of Class B Common Stock were
exchangeable immediately prior to such Transaction.  B&G Foods shall not be a party to any Transaction unless the
terms of such Transaction are consistent with the provisions of this
subsection (b), and it shall not consent or agree to the occurrence of any
Transaction until B&G Foods has entered into an agreement with the
successor or purchasing entity, as the case may be, for the benefit of the holders
of the Class B Common Stock that will contain provisions enabling holders of
Class B Common Stock that remains outstanding after such Transaction to
exchange their Class B Common Stock into the consideration received by holders
of EISs at the Exchange Rate in effect immediately prior to such Transaction.
The provisions of this subsection (b) shall similarly apply to successive
Transactions.

 

(c)                                  If:

 

(i)                                     B&G
Foods shall declare a distribution on the Class A Common Stock, in the form of
shares of Class A Common Stock or Class B Common Stock, [(other than cash
distributions which do not constitute extraordinary dividends)] or there shall
be a reclassification, subdivision or combination of the Class A Common Stock
or Class B Common Stock; or

 

(ii)                                  B&G
Foods shall grant to the holders of Class A Common Stock rights, options or
warrants to subscribe for or purchase EISs, Class A Common Stock [or Class B
Common Stock] at less than Fair Market Value; or

 

(iii)                               B&G
Foods shall sell EISs, Class A Common Stock or securities convertible into EISs
or Class A Common Stock for less than Fair Market Value; or

 

16

 

(iv)                              B&G
Foods shall enter into a Transaction; or

 

(v)                                 there
shall occur the voluntary or involuntary liquidation, dissolution or winding up
of B&G Foods;

 

then B&G Foods shall cause to be filed with the Transfer Agent and
shall cause to be mailed to the holders of the Class B Common Stock at their
addresses as shown on the stock transfer records of B&G Foods, as promptly
as possible, but at least 15 days prior to the applicable date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for
the purpose of such distribution or rights, options or warrants, or, if a
record is not to be taken, the date as of which the holders of Common Stock or
EISs of record to be entitled to such distribution or rights, options or
warrants are to be determined or (ii) the date on which such reclassification,
subdivision, combination, Transaction or liquidation, dissolution or winding up
is expected to become effective, and the date as of which it is expected that
holders of EISs of record shall be entitled to exchange their EIS (or shares of
Class A Common Stock or Senior Subordinated Notes comprising the EISs) for
securities or other property, if any, deliverable upon such reclassification,
subdivision, combination, Transaction or liquidation, dissolution or winding
up.  Failure to give or receive such
notice or any defect therein shall not affect the legality or validity of the
proceedings described in this Section 6.3.

 

(d)                                 Whenever
the Exchange Rate is adjusted as herein provided, B&G Foods shall promptly
file with the Transfer Agent an officer’s certificate setting forth the
Exchange Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment, which certificate shall be conclusive evidence
of the correctness of such adjustment absent manifest error.  Promptly after delivery of such certificate,
B&G Foods shall prepare a notice of such adjustment of the Exchange Rate
setting forth the adjusted Exchange Rate and the effective date such adjustment
becomes effective and shall mail such notice of such adjustment of the Exchange
Rate to the holder of each share of Class B Common Stock at such holder’s last
address as shown on the stock transfer records of B&G Foods.

 

(e)                                  In
any case in which Section 6.3(a) provides that an adjustment shall become
effective on the day following the record date for an event, B&G Foods may
defer until the occurrence of such event (i) issuing to the holder of any share
of Class B Common Stock converted after such record date and before the
occurrence of such event the additional EISs issuable upon such conversion by
reason of the adjustment required by such event over and above the shares of
EISs issuable upon such conversion before giving effect to such adjustment and
(ii) fractionalizing any share of Class B Common Stock and/or paying to such
holder any amount of cash in lieu of any fraction pursuant to Section 6.2.

 

(f)                                    There
shall be no adjustment of the Exchange Rate in case of the issuance of any
equity securities of B&G Foods in a reorganization, acquisition or other
similar transaction except as specifically set forth in this Section 6.3.  If any action or transaction would require
adjustment of the Exchange Rate pursuant to more than one subsection of
Section 6.3(a), only one adjustment shall be made, and such adjustment
shall be the amount of adjustment that has the highest absolute value.

 

17

 

6.4.                              Related Covenants.

 

(a)                               If
B&G Foods shall take any action affecting the EISs, Class A Common Stock or
Class B Common Stock, other than the actions described in this Article VI,
that in the opinion of the Board of Directors of B&G Foods would materially
and adversely affect the exchange rights of the holders of Class B Common
Stock, the Exchange Rate for the Class B Common Stock shall be adjusted, to the
extent permitted by law, in such manner, if any, and at such time, as the Board
of Directors of B&G Foods, in its sole discretion, determines to be
equitable in the circumstances.

 

(b)                                 B&G
Foods shall at all times reserve and keep available, free from preemptive
rights, out of the aggregate authorized but unissued Class A Common Stock, for
the purpose of effecting the exchange of the Class B Common Stock, the full
number of shares of Class A Common Stock deliverable upon the exchange of all
outstanding shares of Class B Common Stock not theretofore exchanged.  For purposes of this subsection (b),
the number of shares of Class A Common Stock that shall be deliverable upon the
exchange of all outstanding shares of Class B Common Stock shall be computed as
if at the time of computation all outstanding shares were held by a single
holder.

 

(c)                                  B&G
Foods covenants that any shares of Class A Common Stock issued upon the
exchange of Class B Common Stock for EISs, shall be validly issued, fully paid
and non-assessable.

 

(d)                                 B&G
Foods shall list the EISs required to be delivered upon exchange of the Class B
Common Stock, prior to such delivery, upon each national exchange, if any, upon
which the outstanding EISs are listed at the time of such delivery.

 

(e)                                  Prior
to the delivery of the EISs (including the shares of Class A Common Stock and
the Senior Subordinated Notes comprising the EISs) that B&G Foods shall be
obligated to deliver upon the exchange of the Class B Common Stock, B&G
Foods shall comply with all federal and state laws and regulations thereunder
requiring registration of such securities with, or any approval or consent to
the delivery thereof, by any governmental authority.

 

(f)                                    [B&G
Foods shall pay any and all documentary stamp or similar issue or transfer
taxes payable in respect of the issue and delivery of EISs or other securities
or property on exchange of the Class B Common Stock pursuant hereto; provided,
however, that B&G Foods shall not be required to pay any tax that may be
payable in respect of any transfer involved in the issue or delivery of EISs or
other securities or property in a name other than that of the record holder of
the Class B Common Stock to be exchanged, and no such issue or delivery shall
be made unless and until the person requesting such issue or delivery has paid to
B&G Foods the amount of any such tax or established, to the reasonable
satisfaction of B&G Foods, that such tax has been paid.]

 

6.5.                              Certain Defined Terms.

 

(a)                                  As
used herein the term “Current Market Price” of any EIS or equity security of
B&G Foods or any other issuer for any day shall mean the last reported
sales price, regular way, on such day, or, if no sale takes place on such day,
the average of the reported

 

18

 

closing bid
and asked prices on such day, regular way, in either case as reported on the
American Stock Exchange or, if such security is not listed or admitted for
trading on the American Stock Exchange, on the principal national securities
exchange on which such security is 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 such security is 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.

 

(b)                                 As
used herein, the term “Exchange Date” shall mean any date on or after the 181st
day after the date of this Agreement and prior to the maturity date of the
Senior Subordinated Notes (as such maturity date may be extended from time to
time in accordance with the Senior Subordinated Note Indenture) designated by
BRS or a majority of the holders of Class B Common Stock as an Exchange Date by
providing not less than 15 days written notice to B&G Foods and each of the
other Stockholders; provided, however, that (i) a date within 6 months of any
previous Exchange Date may not be designated as an Exchange Date and (ii) BRS
and the holders of Class B Common Stock may not declare an Exchange Date if the
number of shares of Class B Common Stock to be exchanged on such Exchange Date
is less than the lesser
of              shares
or              %
of the total number of shares of Class B Common Stock then outstanding.

 

(c)                                  As
used herein the term “Exchange Rate” shall mean an amount equal to (i) the per
EIS Initial Public Offering price of the EISs less $6.00 divided by (ii) the
per EIS Initial Public Offering Price of the EISs, as adjusted from time to
time in accordance with this Article VI;

 

(d)                                 As
used herein the term “Fair Market Value” shall mean the average of the daily
Current Market Prices per EIS during the ten consecutive Trading Days selected
by B&G Foods commencing not more than 20 Trading Days before, and ending
not later than, the earlier of the day in question and the day before the
“ex-date” with respect to the issuance or distribution requiring such
computation.  The term “ex-date,” when
used with respect to any issuance or distribution, means the first day on which
the EISs trade regular way, without the right to receive such issuance or
distribution, on the exchange or in the market, as the case may be, for
purposes of determining that day’s Current Market Price.

 

(e)                                  As
used herein, the term “Trading Day” shall mean any day on which the securities
in question are traded on the American Stock Exchange or, if such securities
are not listed or admitted for trading on the American Stock Exchange, on the
principal national securities exchange on which securities are listed or
admitted or, if not listed or admitted for trading on any national securities
exchange, on The Nasdaq National Market or, if such securities are not quoted
on The Nasdaq National Market, on the applicable securities market in which
such securities are traded.  If such
securities are not trading on any securities market, the Board of Directors of
B&G Foods shall determine which day shall be deemed the Trading Day.

 

(f)                                    As
used herein, the term “Transfer Agent” shall mean The Bank of New York or any
successor transfer agent of B&G Foods’ EISs and Class B Common Stock.

 

19

 

ARTICLE VII

 

AMENDMENT AND
RESTATEMENT; REPURCHASE OF PREFERRED 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 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 the
amendment and restatement of the bylaws of B&G Foods, substantially in the
forms as filed by B&G Foods as exhibits to the EIS Registration Statement.

 

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
(except, in the case of CIT, for the CIT Conditional Sale Agreement):

 

(a)                                  all
of such Stockholders’ shares of Series A Preferred Stock;

 

(b)                                 all
of such Stockholders’ shares of Series B Preferred Stock;

 

(c)                                  all
of such Stockholder’ shares of Series C Preferred Stock;

 

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

 

(e)                                  all
of such Stockholders’ Existing Options (as adjusted following the Reclassification
and Conversion);

 

(f)                                    the
number of Existing Warrants set forth opposite such Stockholder’s name in the
second column of Exhibit E hereto;

 

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

 

20

 

hereby
purchases from such Stockholder, free and clear of all liens, claims, security
interests, pledges, charges, equities, options, restrictions and encumbrances
(except, in the case of CIT, for the CIT Conditional Sale Agreement) 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 D and in the third column of
Exhibit E 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
such pro rata number of shares of Class B Common Stock and Existing Warrants of
such Stockholder based on 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 D hereto and in the third column of Exhibit E hereto as will
be purchased by the total proceeds received by B&G Foods in such partial
exercise of the Over-Allotment Option. 
For purposes of determining such pro rata allocation each share of Class
B Common Stock shall be treated the same as each Existing Warrant.

 

7.4.                              Repurchase Price.

 

(a)                                  The
per share purchase price for the Series A Preferred Stock on the Initial
Repurchase Date is 100% of the then effective Liquidation Preference (as
defined in the applicable certificate of designation) per share plus an amount
equal to a prorated dividend for the period from the Dividend Payment Date (as
defined in the applicable certificate of designation) immediately prior to the
Initial Repurchase Date to the Initial Repurchase Date..

 

(b)                                 The
per share purchase price for the Series B Preferred Stock on the Initial
Repurchase Date is 100% of the then effective Liquidation Preference (as
defined in the applicable certificate of designation) per share plus an amount
equal to a prorated dividend for the period from the Dividend Payment Date (as
defined in the applicable certificate of designation) immediately prior to the
Initial Repurchase Date to the Initial Repurchase Date.

 

(c)                                  The
per share purchase price for the Series C Preferred Stock on the Initial
Repurchase Date is 100% of the then effective Liquidation Preference (as
defined in the applicable certificate of designation) per share plus an amount
equal to a prorated dividend for the period from the Dividend Payment Date (as
defined in the applicable certificate of designation) immediately prior to the
Initial Repurchase Date to the Initial Repurchase Date.

 

(d)                                 The
per share purchase price for the Class B Common Stock is an amount equal to the
Exchange Rate multiplied by the per EIS Initial Public Offering price of the
EISs.

 

(e)                                  The
per option purchase price for the Existing Options is an amount equal to the
Exchange Rate multiplied by the per EIS Initial Public Offering price of the
EISs less the exercise price thereof (as such exercise price has been
adjusted following the Reclassification and Conversion).

 

(f)                                    The
per warrant purchase price for the Existing Warrants is an amount equal to the
Exchange Rate multiplied by the initial per EIS Initial Public Offering Price

 

21

 

of the EISs
less the exercise price thereof (as such exercise price has been adjusted
following the Reclassification and Conversion).

 

The purchase price for the Existing Securities shall be delivered to
the Stockholders, [by wire transfer of immediately available funds], to the
bank account(s) provided to B&G Foods by such Stockholders.

 

7.5.                              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 deemed exercised by such Stockholder without
any further action on the part of such Stockholder, 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 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 Exchange Rate multiplied by the per EIS
Initial Public Offering price of the EISs.

 

7.6.                              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
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 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
Common Stock on a fully diluted basis), (iv) the holders of a majority of the

 

22

 

Common Stock
held by the Management Stockholders and (v) the holders of a majority of the
outstanding Common Stock on a fully diluted basis (including Common Stock owned
by the BRS Entities, but not including 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 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

 

23

 

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

 

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:  Patrick N.W. Turner

 

with a
required copy to:

 

Cravath,
Swaine & Moore

Worldwide
Plaza

825 Eighth
Avenue

New York, NY
10019

Attention:  Mayme Greer, Esq.

 

If to any CIT Entity, to:

 

The CIT Group/Equity Investments, Inc.

207 Queens Quay West, Suite 700

Toronto, ON MSJ 1A7

 

24

 

Canada

 

Attention:  Terry Parco

 

with required
copies to:

 

Sidley Austin
Brown & Wood LLP

787 Seventh
Avenue

New York, NY
10019

Attention:  James D. Johnson, Esq.

 

and

 

Laud Collier
& Company, LLC

75 Livingston Avenue

Roseland, NJ 07068

Attention:  Colby W. Collier

 

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.

 

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

 

25

 

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, Securities or EISs, 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.

 

26

 

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:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE CIT GROUP/EQUITY INVESTMENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  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

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Donald Bruckmann

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. Baldwin

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  H. Virgil Sherrill

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Nancy Zweng

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Paul D. Kaminski

  	
   

  

 

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

 

 

	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  

 

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

 

 

	
   

  	
  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

  	
   

  
								

 

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

 

 

	
   

  	
   

  	
   

  
	
   

  	
  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

  	
   

  

 

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

 

 

	
   

  	
  EMERIL’S FOOD OF LOVE PRODCUTIONS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
	
   

  	
   

  
	
   

  	
  WILLIAM MORRIS AGENCY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  

 

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

 

 

EXHIBIT B

 

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.

 

“CIT Demand Transferee” means any third party to whom any CIT
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 or BRS Demand Transferees,
and a registration on Form S-2 or Form S-3 (or any successor form(s) under the
Securities Act) under the Securities Act made at the request of any of the
Canterbury Entities, the CIT 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 CIT 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.

 

B-1

 

“Registrable Securities” means 
(i) any EISs, shares of Class A Common Stock and Senior Subordinated
Notes issued or issuable to or otherwise acquired by any BRS Entity, Canterbury
Entity, CIT Entity or Management Stockholders upon the exchange of their Class
B Common Stock in accordance with Section 6.1 of the Agreement and (ii)
any EISs, shares of Class A Common Stock and Senior Subordinated Notes issued
or issuable with respect to 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 EISs, shares of Class A
Common Stock and Senior Subordinated Notes 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, CIT
Entities and their respective Demand Transferees participating in the offering selected
by the Canterbury Entities, CIT 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.

 

B-2

 

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

 

“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                                 Registration.  (a) 
If B&G Foods proposes to register any of its 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 Class B Common Stock
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 Class B Common Stock,
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

 

B-3

 

Registration Expenses 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 CIT 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 Common Stock 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 date of the Agreement, a BRS Entity or a BRS Demand
Transferee or, if registration on Form S-2 or Form S-3 (or any successor
form(s) under the Securities Act) shall be available to B&G Foods, a
Canterbury Entity, a CIT Entity, a Canterbury Demand Transferee or a CIT 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 CIT Entities (including each of their
respective Demand Transferees) shall each be entitled to two (2) Demand
Registrations.

 

(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) any Common Stock
proposed to be registered by B&G

 

B-4

 

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.

 

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.  Whenever any Shareholder
requests that any Registration Securities be registered pursuant to
Section 2.1 or 2.2 hereof, B&G Foods 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)                                  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

 

B-5

 

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 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

 

B-6

 

(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.

 

(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.

 

B-7

 

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, 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

 

B-8

 

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 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

 

B-9

 

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 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

 

B-10

 

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.

 

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.

 

B-11Exhibit 10.13

 

AGREEMENT BY AND BETWEEN

EMERIL’S FOOD OF LOVE PRODUCTIONS, L.L.C. and

B&G FOODS, INC.

 

This agreement (the “Agreement”) is entered into as of this day, the 9th
of JUNE, 2000. (“Effective Date”) between Emeril’s Food of Love Productions,
L.L.C., a Louisiana
[                  (State)]
limited liability company, having an address of 638 Camp, New Orleans, LA and
B&G Foods, Inc. (“B&G”), a Delaware corporation, having offices at Four
Gatehall Drive, Suite 110, Parsippany, New Jersey 07054.

 

WHEREAS, Emeril
Lagasse (“Lagasse”) is a widely recognized chef of superior ability and an
entertainer, who enjoys celebrity status for his ability to prepare gourmet
foods;

 

WHEREAS, Emeril’s
Food of Love Productions, L.L.C. has ownership of, and is authorized to grant
exclusive licenses pertaining to, the name, picture, image and other
identifying marks of Lagasse;

 

WHEREAS, B&G
Foods, Inc. is a company that manufactures and markets at wholesale a variety
of foods products throughout the United States and Canada; and

 

WHEREAS, the parties
desire to develop and promote an exclusive line of certain quality food
products bearing the name, picture, image and other identifying marks of
Lagasse for retail distribution.

 

NOW THEREFORE, the
parties hereby agree as follows:

 

Section 1. Definitions.  The following terms shall have the
meanings given to them by the parties:

 

a.                                       FLP. 
As used herein, “FLP” shall mean Emeril’s Food of Love Productions,
L.L.C. and Lagasse, except where used in conjunction with Lagasse, in which
event the term shall apply solely to Emeril’s Food of Love Productions.

 

b.                                      Marks.  The term “Marks” shall mean all copyrights,
patents, trade names, logos, trademarks, service marks and other proprietary
and intellectual rights held by or associated with FLP and/or Emeril Lagasse
including without limitation the name “Emeril Lagasse”.

 

c.                                       Net
Sales.  “Net Sales” shall mean
gross sales of Products less discounts, promotional allowances, and returns
actually allowed and for which full refunds are granted. Notwithstanding the
above definition, sales to FLP or Related Companies shall not be

 

1

 

included in computing Net Sales or royalties
paid hereunder to FLP. The Products shall be sold and distributed hereunder for
the sole purpose of wholesale and retail sales and shall not be sold or
distributed as favors, premiums, give-aways, or tie-ins in connection with the
sale and/or advertising of any other goods, (excluding the “Product”), wares,
merchandise or services of any nature or description, except as may be approved
in writing by FLP. “Promotional allowances” shall not exceed those customarily
accorded to other B&G premium brands.

 

d.                                      Personality.  “Personality” shall refer to any name (given or professional),
picture, photograph, in-person appearance, catch-phrase, likeness, image,
facsimile signature, testimonial, endorsement and/or biographical material of
Lagasse.

 

e.                                       Preferential Price.  A “Preferential Price” shall mean a price
for a Product set by B&G which shall be fifteen percent (15%) less than
B&G’s published average wholesale selling price but in no event more than
any price charged to a Retail Channel.

 

f.                                         Product.  The term “Product” shall mean any and all dry seasoning, liquid
seasoning, condiment, pepper, sauce, syrup, dressing, jarred garlic, and
marinade products manufactured, marketed and/or distributed by B&G bearing
Marks or Personality pursuant to this Agreement. This term may be amended by
the parties to include the items set forth in Section 4(b) of this Agreement.

 

g.                                      Recipe.  The term “Recipe” shall mean any product
formulation, or component thereof, created in whole or in part by FLP or
Lagasse (either alone or together with B&G) for any Product.

 

h.                                      Retail
Channels.  “Retail Channels”
shall mean the following types of outlets to which, and individual retailers to
whom, B&G may supply the Products under this Agreement: grocery stores,
specialty stores, gourmet markets, mass merchants, convenience stores,
drugstores, warehouse shopping clubs, shopping malls, military and wholesalers
and distributors who service the foregoing.

 

i.                                          Related Companies.  “Related Companies” shall mean all entities
in which FLP or Lagasse, separately or in combination, hold a majority of the
financial interest thereto and which pertain in any way to food preparation or
products, including, but not limited to “Emerils.com, LLC” and “Emeril’s
Homebase, LLC.”

 

j.                                          Right
of First Negotiation.  As used
in Section 4(b) below, a “Right of First Negotiation”, if exercised, shall
entitle B&G to enter into bona fide
and exclusive negotiations with FLP which shall be conducted for 30 days
following either (1) notice from FLP of its desire to have used, or (2) notice
from B&G of its desire to use, any Mark, Personality, or Recipe in
conjunction with a product other than one defined as a Product herein.

 

2

 

k                                          Territory.  The term “Territory” shall mean the United States of America, its
territories and possessions, the Caribbean Basin and Canada.

 

Section 2. Grant of Rights

 

a.                                       License.  Subject to the provisions of Section 6, FLP hereby grants an
exclusive license to B&G to use all Marks, Personality and Recipes with
respect to B&G’s manufacturing, marketing and distributing to Retail
Channels of all Products in the Territory. A schedule of all existing Marks is
annexed hereto as Attachment C.

 

1.                                       Restrictions.  Ownership of all Marks, Personality and Recipes shall remain the
property of FLP, and B&G shall not have the right to license, sublicense or
grant the right to use same without the prior written consent of FLP.  No Marks, Personality or Recipe shall be
used or licensed by B&G to endorse any Retail Channel.

 

2.                                       Nothing herein
contained shall prohibit Lagasse from appearing on a television program
sponsored by manufacturer(s) of products competitive with the Products or doing
generic commercial lead-ins and lead-outs; provided, however, Lagasse shall not
endorse any products competitive with any the Product.

 

3.                                       Third Party Infringers/Licenses/Co-Packers.

 

A.                                   Third Party Infringers.  In the event a party shall become aware of
any use by any third party of any Marks, Personality, or Recipe or any term
confusingly similar thereto, licensed under this Agreement, with respect to any
dry seasoning, liquid seasoning, condiment, pepper, sauce, syrup, dressing,
jarred garlic, or marinade product, it shall promptly notify the other party in
writing of such use, and if said use commenced prior to this Agreement or was
the result of any actions of FLP intended prior to execution of this Agreement,
FLP shall take such actions as may be required, including the engagement of
legal counsel, to enforce the rights of FLP and B&G and protect the
exclusivity of the license granted herein. 
Any recovery of monies in excess of expenses shall be split fifty
percent (50%) to B&G and fifty percent (50%) to FLP.  If 
FLP fails to take the required action, B&G may terminate this
Agreement, or may file suit so on behalf of FLP and FLP shall indemnify and hold
B&G harmless with respect to all costs and expenses, (including reasonable
attorney’s fees and costs) incidental thereto and which are in excess of any
recovery.  In such instance, B&G
shall also be entitled to retain any monies recovered in said litigation.  In the event such use occurs subsequent to
the execution of this agreement and was not the result of actions of FLP as
aforesaid, B&G shall take such actions as may be required, including the
engagement of counsel, to enforce the rights of FLP and B&G and protect the
exclusivity

 

3

 

of the license granted herein. 
Any recovery of monies in excess of expenses shall be split fifty
percent (50%) to B&G and fifty percent (50%) to FLP.  If B&G fails to take such necessary
action, FLP may do so on behalf of B&G and B&G shall indemnify and hold
FLP harmless with respect to all costs and expenses (including reasonable
attorney’s fees) incidental thereto and which are in excess of any recovery.  In such instance, FLP shall also be entitled
to retain any monies recovered in said litigation.

 

B.                                     Third Party Licenses.  Except for any agreements or alleged
agreements with Alive Culinary (which FLP obligates itself to terminate
immediately) because the license granted herein is exclusive, any grant,
agreement, contract or understanding between FLP and a third party for the use
of any Marks, Personality or Recipe with respect to any dry seasoning, liquid
seasoning, condiment, pepper, sauce, syrup, dressing, jarred garlic, or
marinade product, is strictly prohibited. 
FLP hereby represents and warrants that any and all such preexisting
licenses have expired or been terminated (or as to Alive Culinary will be
terminated upon execution hereof), and that FLP shall indemnify and hold
B&G harmless (including reasonable attorney’s fees and costs) with respect
to any and all claims by any alleged past or present third party license.

 

C.                                     Third Party Co-Packers, Etc.  Except for any agreements or alleged
agreements with Alive Culinary (which FLP obligates itself to terminate
immediately), FLP agrees and represents that as of the date of this agreement,
neither FLP, nor any third party under contract with FLP, manufactures, markets
and/or distributes any dry seasoning, liquid seasoning, condiment, pepper,
sauce, syrup, dressing, jarred garlic or marinade product.  FLP hereby represents and warrants that any
and all such preexisting contracts have expired or been terminated (or as to
Alive Culinary will be terminated upon execution hereof), and that FLP shall
indemnify and hold B&G harmless (including reasonable attorneys’ fees and
costs) with respect to any and all claims by any such past or present third
party.

 

b.                                      Exclusive Supplier.  If, during the term of this Agreement, FLP
is required to supply any dry seasoning, liquid seasoning, condiment, pepper,
sauce, syrup, dressing, jarred garlic, or marinade product, regardless of
whether same is presently manufactured or marketed by B&G under this
Agreement, to a third party, including but not limited to, restaurant chains
and processors of prepared foods, B&G shall have the option to exclusively
supply same to, or on behalf of, FLP, and shall further have the option to
supply same to Retail Channels as a Product, subject to FLP approval as set
forth in Section 6 and provided B&G can supply same in a timely fashion,
sufficient quantity of approved quality and at a competitive price which shall
not be less than the Preferential Price unless mutually

 

4

 

agreed to by the parties hereto.

 

c.                                       Preferential Pricing.  FLP and Related Companies shall have the
right to purchase all Products at Preferential Prices, and to sell same except
to Retail Channels.

 

Section 3. Duties of the Parties.

 

a.             B&G.

 

1.                                       Products.  B&G shall manufacture, package, market and distribute at
least one (1) dry seasoning, and one (1) marinade Product, each such Product
based upon Recipes, by the first anniversary of the Effective Date.  Thereafter, B&G shall introduce and market
at least three (3) new Products based upon Recipes in each year of the term of
this Agreement.

 

2.                                       Supply.  B&G agrees to supply FLP with quantities of Products, as
required by FLP and Related Companies and in accordance with Section 5.

 

b.                                      FLP. 
In each contract year, FLP shall, at the request of B&G, develop and
deliver at least five (5) commercially feasible Recipes for Products within
thirty (30) business days of such a request.

 

c.             Lagasse.

 

1.                                       Publicity Events.  Upon the request of B&G, which shall not
be unreasonable as to time, place or duration, Lagasse shall attend six (6)
publicity events per year to promote the Products.  As many as four (4) such appearances shall be at trade shows or
other professional venues selected by B&G, subject to the approval of
Lagasse, which shall not be unreasonably withheld.  A minimum of two (2) such appearances will be at a time and place
suitable for the promotion of the Products and specified by Lagasse, subject to
the approval of B&G, which shall not be unreasonably withheld.  The duration of any single appearance shall
be mutually agreed upon, but in no event may be less than two (2) hours,
greater than eight (8) hours, or span a period longer than one (1) day.  If Lagasse must travel for the purpose of
making any such appearance, B&G shall make arrangements and provide for
first-class transportation and hotel accommodations for Lagasse and a
companion.

 

2.                                       Photographs.  At the request and under the direction of  B&G, but not more that twice a year,
Lagasse shall appear and pose for photographs which may be used by B&G
solely in connection with the rights granted to it by this Agreement.  Such photographs shall be taken at a
mutually agreeable time and place for a period of not more than two (2)
consecutive hours and four (4) hours total. 
If Lagasse must

 

5

 

travel for such purpose, B&G shall make arrangements and provide
for first-class transportation and hotel accommodations for Lagasse and a
companion.  B&G shall enjoy full
ownership of all photographs taken, but its right to use any such photograph
for the promotion of any Product shall cease upon termination or expiration of
this Agreement.  All photographs shall
be subject to FLP’s prior approval as well as its approval rights in Section 6
below.  FLP shall also have this right
to utilize, without charge, any such photographs during the term of this
Agreement.

 

3.                                       Use of Products.  Lagasse will use his best efforts to utilize
and to otherwise promote Products during public events or events to be
broadcast, whenever appropriate.

 

Section 4. Products

 

a.                                       Generally.  As of the Effective Date and subject to Section 6 below, B&G
shall have the right to manufacture, market and/or distribute the following
types of products using the license granted to it by FLP under Section 2(a) of
this Agreement: dry seasonings, liquid seasonings, condiments, peppers, sauce
of all kinds, syrups, dressings, jarred garlic, and marinades.

 

b.                                      Additional Products.  FLP hereby grants B&G the Right of First
Negotiation with respect to packaged side dishes, soup products and other
shelf-stable grocery products not specified in Section 4(a) above.

 

c.                                       During the Term
of this Agreement, B&G will not sell or distribute any Recipe under any label
other than one using Marks and/or Personality.

 

Section 5. Supply.  Subject to the terms of this Agreement,
B&G agrees to manufacture and sell Products to FLP and Related Companies
under the following conditions:

 

a.                                       Orders.  B&G shall accept written orders
for Products on a weekly basis, or at any other interval mutually agreeable to
the parties.  Such orders shall be made
in accordance with the notice provisions of Section 16 and shall be binding
upon the party placing same.  All orders
shall specify the number of cases requested.

 

b.                                      Price.  The
price for any Product shall be the Preferential Price, as defined herein.

 

c.                                       Delivery/Risk
of Loss.  With respect to actual shipment of Products
ordered pursuant to this Section 5, B&G shall require at least ten (10)
days prior written notice of a desired data for delivery.  B&G will delivery Products to FLP or
Related Company F.O.B. the applicable B&G manufacturing facility or any
approved co-packing facility.  Products
shall be deemed to be delivered when loaded onto a common carrier for shipment,
with

 

6

 

complete delivery instructions, at said location. B&G represents
that the foregoing terms are B&G’s standard terms with its other buyers.

 

d.                                      Limitation of B&G’s Obligations.  B&G shall use reasonable efforts to fill
any order in a timely fashion but shall not be so obligated if product
commitments to third parties prevent such accommodation or if the required raw
material, ingredients or packaging are not available. In the event B&G
cannot fill any order made in accordance with this Section 5, B&G shall
promptly so notify FLP or Related Company.

 

Section 6. Approvals

 

a.                                       Product: Labeling.  Before selling or distributing any of the
Products, B&G shall furnish FLP, without charge, a reasonable number of
samples of each Product and its packaging materials for approval, which
approval shall not be unreasonably withheld. Any item submitted to FLP shall be
deemed approved unless the same shall be disapproved by FLP in writing not
later than fifteen (15) business days after delivery. All manufactured Products
shall comply with the approved samples. All Product packaging and marketing
material shall contain appropriate copyright and trademark notices to protect
FLP’s rights. In order to assure product quality, FLP shall have the right,
upon reasonable notice, to inspect and approve of B&G’s manufacturing and
distribution facilities.

 

b.                                      Marketing Materials.  Prior to use, B&G shall, furnish to FLP
all advertising and publicity material pertaining to the Products or FLP for
approval, which approval shall not be unreasonably withheld. Any such item
submitted to FLP shall be deemed approved unless the same shall be disapproved
by FLP in writing not later than fifteen (15) business days after delivery.

 

c.                                       Co-Packing Companies.  Notwithstanding any terms to the contrary,
B&G shall have the right to utilize third parties to manufacture and/or
package Products, provided that notice of any such intention be given to FLP
and that FLP have the right to approve, on a reasonable basis, any such third
party with respect to quality. B&G shall use reasonable efforts to obtain
information from and permission for FLP to inspect the premises of such third
party. FLP’s approval shall be deemed to have been given unless same shall be
disapproved by FLP in writing not later than fifteen (15) business days after
notice. Any such third party shall be required to sign a confidentiality
agreement in content substantially as set forth in Section 13 below.

 

Section 7. Term: Extension

 

a.                                       Initial Term. The initial term of this
Agreement shall be three (3) years from the Effective Date (“Initial Term”).
During the Initial Term, B&G shall pay to FLP an advance and minimum
royalties as set forth in Section 8.

 

7

 

b.                                      Extensions and Renewal Terms.  As set forth below, the term of this
Agreement is subject to extensions based upon annual Net Sales. Sixty (60) days
prior to the end of any given term, B&G shall determine the Net Sales for
the immediately proceeding four (4) fiscal quarters of B&G (the “Past
Year”) using reasonable business accounting methods. B&G shall notify FLP
of its determination, and, where applicable, its desire to extend the present
term, at least forty-five (45) days prior to the end of the present term.

 

1.                                       First Renewal Term.  The Initial Term shall be automatically
extended for an additional two-year period (“First Renewal Term”) if Net Sales
are at least $6 million during the Past Year of the Initial Term.

 

2.                                       Second Renewal Term.  B&G shall have the option of
automatically extending the term for an additional five-year period (“Second
Renewal Term”) if Net Sales are at least $10 million during the Past Year of
the First Renewal Term.

 

3.                                       Additional Renewal Terms.

 

A.                                   Automatic Renewal Terms.  After the Second Renewal Term, this
Agreement shall automatically renew for consecutive one-year periods
(“Automatic Renewal Term”) for so long as Net Sales in the Past Year are at
least $20 million.

 

B.                                     Optional Renewal Terms.  At any time following the Second Renewal
Term, B&G shall have the continuing option to renew the Agreement for
additional, consecutive one-year periods (“Optional Renewal Term”) for so long
as Net Sales in the Past Year are at least $15 million, but less than $20
million.

 

C.                                     CPI Adjustment.  Notwithstanding anything contained in Subparagraphs A and B
above, for purposes of computing the Net Sales level in the Past Year after the
Second Renewal Term and for each renewal year thereafter, the Net Sales level
shall be that amount determined by multiplying $20 million or $15 million as
the case may be, by a fraction the denominator of which shall be in the
Consumer Price Index (“CPI”), now known as the “United States Department of Labor,
Bureau of Labor Statistics, Consumer Price Index, U.S. City Average for all
Urban Consumers, Seasonally Adjusted, All items (1982 - 1984), at the end of
the Second Renewal Term and the numerator of which shall be the CPI at the end
of the Past Year (the “CPI Adjustment”); provided, however, that the CPI
Adjustment shall not exceed two percent (2%) in any one year.

 

Where the Net Sales for any Past Year are below the above stated
thresholds, either party may terminate this Agreement by serving written notice
upon the other party within ninety (90) days after the end of the preceding
term.

 

8

 

During the term hereof, B&G shall not manufacture or distribute
Products utilizing the name or likeness of or the endorsement by another chef
or celebrity.

 

Section 8. Compensation.

 

a.                                       Advance.  B&G shall pay FLP a non-returnable $1.2 million advance,
$600,000 payable upon the execution of this Agreement and $600,000 payable upon
the first anniversary of the Effective Date. Both advance disbursements are
conditioned upon FLP’s performance throughout the year in which the
disbursement is made.

 

b.                                      Royalty Schedule.  During the term of this Agreement, B&G
shall pay FLP royalties based upon set percentages of Net Sales. A schedule of
royalty percentages is set forth in Attachment B, annexed hereto.

 

c.                                       Royalty Payments.  At the beginning of the second anniversary
of the Effective Date, and thereafter, at the beginning of each subsequent
anniversary during the term of this Agreement, B&G shall pay to FLP a
non-refundable minimum royalty payment for FLP’s performance throughout the
following 12 month period, as set forth in Attachment A, annexed hereto. Each
year after the tenth year, the minimum non-refundable royalty shall be
increased by the CPI adjustment. In addition, B&G shall pay additional
royalties that may be due FLP as follows.

 

d.                                      Actual Royalties; Excess Payments.  Following each anniversary of the Effective
Date, B&G shall calculate and notify FLP of the actual royalties based upon
Net Sales and the royalty schedule set forth in Attachment A. Such notice shall
include a certified statement by B&G detailing the number of units of each
Product sold, applicable discounts, promotional allowances, and number of units
of each Product returned and fully refunded. Any royalties in excess of the
minimum royalty payment for the given year shall be paid within forty-five (45)
business days following the end of each year of the Agreement.

 

e.                                       Audit Rights.  Once during each fiscal quarter, FLP, or a representative of FLP,
may, during mutually agreeable business hours and upon reasonable written
notice, audit the financial records of B&G pertaining to the distribution
of Products for the sole purposes of verifying past royalty payment amounts. If
any audit by FLP discloses an error, then appropriate adjustments shall
immediately be made, and if such error shows an under reporting by B&G of
more than 2%, B&G shall pay the costs of the audit. Such audit and the
information contained therein is expressly subject to Section 13
(“Confidentially”).

 

f.                                         Stock Options. FLP shall receive stock
options to purchase stock in B&G in an amount representing forty-five
hundredths of one percent (0.45%) ownership in B&G upon the Effective Date,
the terms and conditions of which are set forth in Attachments C and D. The
William Morris Agency, Inc. (“Agency”), which has represented FLP in the
negotiation of this Agreement, shall receive stock options to purchase stock in
B&G in an

 

9

 

amount representing five-hundredths of one percent (0.05%) ownership,
the terms and conditions of which are set forth in Attachments E and F. FLP and
the William Morris Agency shall receive such respective shares hereunder
pursuant to and subject to the B&G Stock Purchase Agreement and the B&G
Stock Ownership Agreement, as reviewed and executed by said parties and hereto
annexed as Attachments C, D, E and F.

 

Section 9. Representations and Warranties.

 

a.                                       Compliance with Law.  B&G hereby warrants that the Products
will be manufactured, labeled, distributed and promoted by B&G in
accordance with all Federal State and local laws.

 

b.                                      Ownership of Marks/Personality/Recipes.  FLP hereby warrants that it possesses
exclusive ownership of the Marks, Personality and Recipes licensed to B&G
for the purposes of this Agreement, and has full authority to grant such
license. B&G warrants that it will possess exclusive ownership of any
recipes furnished by B&G pursuant to this Agreement.

 

c.                                       Capacity to Contact.  Each party hereto for itself hereby warrants
and represents that it is under no disability, restriction or prohibition,
whether contractual or otherwise, with respect to performing under this
Agreement and that there are no agreements or understanding with any third
party which would conflict with the rights provided to or obligations to the
other hereunder.

 

Section 10. Indemnity

 

a.                                     Generally.  Each party agrees to indemnify, hold harmless and, at the request
of the other party, defend the other party from and against all claims,
liabilities, damages, losses and expenses (including reasonable attorneys’
fees) arising out of, or in connection with, a breach of any warranty,
representation, duty or obligation under this Agreement.

 

b.                                      Additional Indemnification of FLP.  B&G further agrees to indemnify, defend
and hold harmless FLP from any claims, suits, loss and damage arising out of
any allegedly unauthorized use of any Mark, Personality or Recipe by B&G in
connection with the Products marketed under this Agreement and also from any
claims, suits, loss and  damage arising
out of defects of a Product or packaging or claims relating to the advertising
manufacturing and distribution of Products. B&G shall also carry product
liability insurance covering FLP and Lagasse as additional named insureds in
such amounts as B&G shall reasonably determine but in no event, less
than  $5 million per occurrence.

 

10

 

Section 11. Termination.

 

a.                                       Generally.  Either party shall have the right to immediately terminate this
Agreement at its election upon the delivery of written notice to the other
party, if the other party:

 

1.                                       breaches or is
in default of any material obligation under this Agreement; provided, however,
if such default is capable of being cured, such termination shall not be
effective unless such default has not been cured within thirty (30) days after
delivery of written notice of such default;

 

2.                                       is unable to pay
its debts as they mature or admits in writing its inability to pay its debts as
they mature;

 

3.                                       makes general
assignment for the benefit of creditors;

 

4.                                       files a
voluntary petition for bankruptcy or has filed against it an involuntary
petition for bankruptcy;

 

5.                                       applies for the
appointment of a receiver or trustee for substantially all of its assets or
permits the assignment of any such receiver or trustee who is not discharged
within a period of thirty (30) days after such appointment; or

 

6.                                       discontinues
manufacture and distribution of the Products.

 

b.                                      Morality Clause.  In the event that Lagasse (1) engages in any
conduct which disparages the reputation or standing of B&G or any of its
officers or employees, (2) is convicted of any criminal act or formally accused
of any crime punishable by death or imprisonment of at least twenty (20) years,
or (3) engages in any act of moral turpitude, then B&G may terminate this
Agreement upon five (5) days notice to FLP

 

c.                                       Disability.  If, by reason of illness, injury, mental incapacity or accident,
Lagasse fails or is unable to perform the services herein specified, for a
period in excess of thirty (30) consecutive days, B&G shall have the right
to terminate this Agreement upon thirty (30) days notice to FLP.

 

d.                                      Death.  The parties recognize that the celebrity of
Lagasse is material component of this Agreement. Should Lagasse die during the
term of this Agreement, B&G shall have, within one (1) year following his
death, the right to terminate this Agreement upon thirty (30) days notice to
FLP.

 

e.                                       B&G
shall have the right to terminate this agreement upon thirty (30) days notice
to FLP if Lagasse is no longer actively engaged in any food, merchandising,
restaurant or entertainment business for a period of 180 consecutive days.

 

11

 

f.                                         Disposition of Materials; Use of
Marks/Personality/Recipes.  Upon termination or expiration of this Agreement, B&G shall
(1) return to FLP all documents, materials, and equipment given by FLP to
B&G, and (2) cease its use of all Marks, Personality and Recipes, except
that B&G, shall be permitted to market and distribute all remaining
inventories of Products and Product ingredients for a period not exceeding one
hundred eighty (80) days; provided, however, FLP shall have the option upon
termination or expiration to purchase not less than all the remaining
inventories of Products and Product ingredients, including all designated
packaging materials at the cost of same to B&G.  Following termination of this Agreement (i) FLP shall have the
exclusive ownership of and all rights to all Recipes created by FLP alone or in
conjunction with B&G and FLP shall have no obligation to B&G with
respect thereto, and (ii) B&G shall have the exclusive ownership of and all
rights to all recipes created by B&G alone, without any obligation to FLP,
provided, however, that B&G shall not have a license to use any Marks or
Personality of FLP.

 

g.                                      B&G Remedies.  The parties hereby recognize that the
services of Lagasse are unique and extraordinary.  Therefore, in the event of any breach or threatened breach of the
terms of this Agreement by FLP, FLP acknowledges and agrees that any remedy at
law is inadequate, and B&G shall be entitled, in addition to remedies at
law, to petition for injunctive and/or other equitable relief restraining FLP
from breaching or acting in any manner inconsistent with the conduct or
performance required by this Agreement.

 

Section 12. 
Excused Performance

 

a.                                       B&G.  If B&G is prevented from performing any obligation under this
Agreement by any cause or causes beyond its reasonable control and without the
intentional fault or willful negligence of the party affected thereby,
including, without limitation, Acts of God, severe weather, acts of civil
authority (including State and federal agencies and courts of competent
jurisdiction), acts of military authority, war, insurrections, riots, strikes,
lockouts, work stoppages, labor or material shortages, or mechanical breakdowns
at facilities, or other causes of similar nature which wholly or partially
prevent a party from fulfilling its obligations under this Agreement, the
operation of this Agreement may, at the option of B&G exercised in writing,
be suspended during such interruption. 
Upon the resumption of work by B&G, a period of time equal to the
period of such interruption shall be added at the end of the than current
term.  In the event such interruption
extends beyond 6 moths, FLP shall have the right to terminate this Agreement.

 

b.                                      FLP. 
If, by reason of illness, injury, mental incapacity or accident, Lagasse
fails to perform the services herein specified, then B&G shall have the
option to (1) suspend the operation of this Agreement during such
non-performance and/or (2) add a period of time equal to the duration of such
non-performance to the end of the then current term.  B&G may not terminate this Agreement unless such illness,
injury, mental incapacity or accident continues for a period of at least thirty
(30) consecutive days.  If B&G has
paid minimum royalties to FLP for any such period of incapacity of failure to
perform, the 

 

12

 

time of such non-performance shall nevertheless be added to any term so
interrupted, and the minimum royalties paid to FLP during such non-performance
shall be treated as payment for its services during the time so added.

 

Section 13. 
Confidentiality.  Each party shall keep in confidence all information supplied by
the other party (“Confidential Information”) on or after the Effective Date,
including, but not limited to, (1) all Recipes, ingredients, specifications (2)
product formulations and (3) all financial and Product sales information.  Each party further agrees that it shall use
the same degree of care which it normally uses to protect its own confidential
information to prevent disclosing Confidential Information of the other party
to third parties.  Each party further
agrees to cause its agents, employees, contractors, officers and directors to
comply with this Section 13. Notwithstanding the foregoing, this paragraph will
not apply to any information which (i) is generally available to the public
other than as a result of disclosure by a party, or (ii) was known or because
available to a party on a non-confidential basis from a source other than the
other party.  THE TERMS AND DUTIES OF
THIS SECTION SHALL SURVIVE THIS AGREEMENT INDEFINITELY AND ARE NOT RESTRICTED
BY THE TERRITORY.

 

Section 14. 
Assignment.  This agreement may not be assigned or sub-licensed by either
party without the prior written consent of the other party which shall not be
unreasonably withheld. Notwithstanding any assignment, the duties to be
performed by Lagasse may not be assigned under any circumstance.

 

Section 15, No Agency Relationship.  Nothing herein contained shall be deemed to
create the relationship of partnership, agency or joint venture between the
parties.

 

Section 16. Notices.  Unless otherwise specified herein, notices
to the parties shall be hand delivered or sent by prepaid certified or registered
mail, by national overnight courier service, or by facsimile to the addresses
or numbers set forth hereunder:

 

	
  To FLP:

  	
   

  	
  Emeril’s Food of Love Productions

  
	
   

  	
   

  	
  c/o William Morris Agency. Inc.

  
	
   

  	
   

  	
  1325 Avenue of the Americas

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attn: James M.Griffin

  
	
   

  	
   

  	
  Facsimile: (212) 632-1239

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mark Stein, Esq.

  
	
   

  	
   

  	
  c/o Lowe, Stein, Hoffman, Allweiss & Hauver

  
	
   

  	
   

  	
  One Shell Square

  
	
   

  	
   

  	
  701 Poydras Street, Suit 3600

  
	
   

  	
   

  	
  New Orleans, Louisiana 70139

  
	
   

  	
   

  	
  Facsimile: (504) 581-2461

  

 

13

 

	
  To Lagasse:

  	
   

  	
  Emeril’s Homebase

  
	
   

  	
   

  	
  638 Camp Street

  
	
   

  	
   

  	
  New Orleans, Louisiana 70130

  
	
   

  	
   

  	
  Attn: Anthony Cruz

  
	
   

  	
   

  	
  Facsimile: (504) 558-3937

  
	
   

  	
   

  	
   

  
	
  To B&G:

  	
   

  	
  B&G
  Foods, Inc.

  
	
   

  	
   

  	
  Four Gatehall Drive, Suite 110

  
	
   

  	
   

  	
  Parsippany, New Jersey 07054

  
	
   

  	
   

  	
  Attention: David L. Wenner, President

  
	
   

  	
   

  	
  Facsimile: (973) 630-6550

  

 

If a facsimile notice is given, a confirmation copy shall also be hand
delivered or sent by one of the other methods specified.

 

Section 17. Governing Law.  This Agreement shall be deemed executed in,
and shall be governed by and construed in accordance with the laws of the State
of New Jersey without reference to the conflicts of laws principles thereof.

 

Section 18. Litigation Costs.  In the event either party litigates any of
the terms and conditions of this Agreement, the prevailing party shall be
entitled to reimbursement of all reasonable costs including attorneys' fees and
costs of appeal incurred in so enforcing this Agreement.

 

Section 19. Miscellaneous.

 

a.                                       Entire Agreement.  This Agreement, including any attachments
hereto, is intended by the parties to represent the entire agreement between
them and shall not be varied, except by written agreement sighed by the parties
hereto.

 

b.                                      Severability and Interpretation.  If a provision of this Agreement is held
invalid by a court of competent jurisdiction, than the remaining provisions
shall nonetheless be enforceable in accordance with their terms, Further, if
any provision is held to be overboard as written, then such provision shall be
deemed amended to narrow its application to the extent necessary to make the
provision enforceable according to applicable law and shall be enforced as
amended.

 

c.                                       Time is of the Essence.  Time is of the essence in the performance of
all terms and conditions herein set forth to be performed.

 

d.                                      No Waiver. The failure of either party
to insist on compliance with any provision hereof shall not constitute a waiver
or modification of such provision or any other provision.

 

e.                                       Advice of Counsel.  Each party hereto warrants and represents
that it has obtained any

 

14

 

and all appropriate legal advice which such
party deemed necessary prior to entering this Agreement.

 

f.                                         Headings.  This section headings are for convenience only and shall not be
interpreted to expand or limit the provisions of this Agreement as set forth in
the text of the Agreement.

 

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

 

h.                                      Authority to Sign Agreement.  The undersigned represent that he/she is
fully authorized to execute this Agreement intending his/her respective entity
to be legally bound there by.

 

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

 

	
   

  	
  EMERIL’S FOOD OF LOVE

  PRODUCTIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Emeril Lagasse

  	
   

  
	
  Attest:

  	
   

  
	
  /s/ Anthony Cruz

  	
   

  	
  Title

  	
  Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  B&G FOODS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Wenner

  	
   

  
	
  Attest:

  	
  Title:

  	
  President

  	
   

  
	
  /s/ Albert J. Soricelli Jr.

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILLIAM MORRIS AGENCY, INC.,

  
	
   

  	
  AS TO SECTION 8 (f)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Asland

  	
   

  
	
  Attest:

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
  /s/ Jonathan Olson

  	
   

  	
   

  
								

 

15

 

ATTACHMENT A

 

Schedule of Minimum
Royalties

 

	
  Term

  	
   

  	
  Contract
  Year

  	
   

  	
  Minimum
  Royalties

  
	
  Initial Term

  	
   

  	
  Year 3

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  First Renewal Term

  	
   

  	
  Year 4

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
  Year 5

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Second Renewal Term

  	
   

  	
  Years 6-10

  	
   

  	
  $

  	
  600,000 

  	
  (annually)

  
	
  Additional Renewal Terms

  	
   

  	
  Years 11--

  	
   

  	
  Variable

  (Automatic $1 million)

  (Optional $750,000)

  

 

16

 

ATTACHMENT B

 

Schedule of Royalty Percentages of Net Sales

 

	
  Product

  	
   

  	
  Royalty
  Percentage of Net Sales

  	
   

  
	
  Dry Seasoning

  	
   

  	
  8.25

  	
   

  
	
  Condiment, Sauce, Dressing, Pepper,
  Marinade or Other

  	
   

  	
  5.50

  	
   

  
	
  Third Party Sales, (i.e., sales to a third
  party who utilizes the Product in the preparation of food which prepared food
  is then sold to the public).

  	
   

  	
  5.00

  	
   

  

 

17

 

ATTACHMENT C

 

FLP Marks (Including
all derivations of the following)

 

1.             Emeril

 

2.             Emeril’s

 

3.             Essence of Emeril

 

4.             Emerilware

 

5.             Bam

 

6.             Kick it up a Notch

 

7.             Delmonico

 

8.             NOLA

 

9.             NOLA logo

 

10.           Fishhouse logo

 

11.           Emeril portrait with
a lady

 

12.           Emerils.com logo

 

18

 

INDUCEMENT

 

In order to induce B&G Foods, Inc, (“B&G”) to enter into the
foregoing agreement (the “Agreement”) with Emeril’s Food of Love Productions,
LLC (“FLP”) the undersigned represents and warrants that he has read and agrees
to all of the terms and conditions of the Agreement agreed to by FLP
(including, without limitation, the obligations, representations, warranties
and grant of rights contained therein) and agrees to perform his applicable
services in accordance with the Agreement, with the same force and effect as
though the undersigned had entered into the Agreement with B&G.  The undersigned further agrees to look
solely to FLP for any compensation due under the Agreement.  The undersigned further represents and
warrants that FLP has the sole and exclusive right to enter into the Agreement
on the undersigned’s behalf.

 

 

	
   

  	
  /s/ Emeril Lagasse

  
	
   

  	
  EMERIL LAGASSE

  

 

19

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