Document:

Exhibit 10.34

 

Synopsys, Inc. 2005 Assumed Stock Option Plan

(As Restated september 6, 2005)

 

1.             Purposes
of the Plan.  The purposes of this
Plan are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees and
Consultants and to promote the success of the Company’s business.  Only Nonstatutory Stock Options may be
granted under the Plan.  This Plan is a
restatement of the Nassda Corporation 2001 Stock Option Plan, as most recently
approved by the stockholders of Nassda Corporation on February 25,
2003.  This Plan was assumed by the
Company in connection with the acquisition of Nassda Corporation that was
consummated on May 11, 2005.  In
accordance with Rule 4350(i)(1)(A)(iii) of the NASD Marketplace
Rules, the Company may grant new Options under the Plan to individuals who
either (i) were not employed by the Company or any of its subsidiaries on May 11,
2005, or (ii) were providing employment or consulting services to Nassda
Corporation (or any subsidiary corporation thereof) prior to May 11, 2005.

 

2.             Definitions.  As used herein, the following definitions
shall apply:

 

(a)           “Administrator”
means the Board or any of its Committees appointed in accordance with Section 4
hereof.

 

(b)           “Applicable
Laws” means the requirements relating to the administration of stock option
plans under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction
where Options are, or will be, granted under the Plan.

 

(c)           “Board”
means the Board of Directors of the Company.

 

(d)           “Code”
means the Internal Revenue Code of 1986, as amended.

 

(e)           “Committee”
means a committee of the Board appointed in accordance with Section 4
hereof.

 

(f)            “Common
Stock” means the Common Stock of the Company.

 

(g)           “Company”
means Synopsys, Inc., a Delaware corporation.

 

(h)           “Consultant”
means any person who is engaged by the Company or any Parent or Subsidiary to
render consulting or advisory services to such entity and who is compensated
for such services.

 

(i)            “Eligible
Service Provider” means an Employee or Consultant who either (i) was
not employed by the Company or any of its subsidiaries on May 11, 2005, or
(ii) was providing employment or consulting services to Nassda Corporation
(or any subsidiary corporation thereof) prior to May 11, 2005.       

 

(j)            “Employee”
means any person, including Officers, employed by the Company or any Parent or
Subsidiary of the Company.  An Eligible
Service Provider shall not cease to be an Employee in the case of (i) any
leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or
any successor.  

 

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

 

(l)            “Fair
Market Value” means, as of any date, the value of Common Stock determined
as follows:

 

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(i)            If
the Common Stock is listed on any established stock exchange or a national
market system, including, without limitation, the Nasdaq National Market or The
Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall
be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system for the last market trading day
prior to the time of determination, as reported in The Wall
Street Journal or such other source as the Administrator deems
reliable;

 

(ii)           If
the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, its Fair Market Value shall be the mean
between the high bid and low asked prices for the Common Stock on the last
market trading day prior to the day of determination; or

 

(iii)          In
the absence of an established market for the Common Stock, the Fair Market
Value thereof shall be determined in good faith by the Administrator.

 

(m)          [intentionally
omitted]

 

(n)           “Nonstatutory
Stock Option” means an Option not intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code.

 

(o)           “Officer”
means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

 

(p)           “Option”
means a stock option granted pursuant to the Plan.

 

(q)           “Option
Agreement” means a written or electronic agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option
grant.  The Option Agreement is subject
to the terms and conditions of the Plan.

 

(r)            “Option
Exchange Program” means a program whereby outstanding Options are exchanged
for Options with a lower exercise price.

 

(s)           “Optioned
Stock” means the Common Stock subject to an Option.

 

(t)            “Optionee”
means the holder of an outstanding Option granted under the Plan.

 

(u)           “Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of
the Code.

 

(v)           “Plan”
means this 2005 Assumed Stock Option Plan.

 

(w)          [intentionally
omitted] 

 

(x)            “Share”
means a share of the Common Stock, as adjusted in accordance with Section 11
below.

 

(y)           “Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

 

3.             Stock
Subject to the Plan.  Subject to the
provisions of Section 11 of the Plan, the maximum number of Shares that
may be issued over the term of the Plan is 3,594,565 Shares.  The Shares may be authorized but unissued, or
reacquired Common Stock.

 

If an Option expires or
becomes unexercisable without having been exercised in full, or is surrendered
pursuant to an Option Exchange Program, the unpurchased Shares which were
subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated). 
However, Shares that have

 

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actually been issued under the Plan, upon exercise of
an Option, shall not be returned to the Plan and shall not become available for
future distribution under the Plan.

 

4.             Administration
of the Plan.

 

(a)           Procedure.

 

(i)            Multiple
Administrative Bodies.  The Plan may
be administered by different Committees with respect to different groups of
Employees and Consultants.

 

(ii)           Section 162(m).  To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the Plan shall
be administered by a Committee of two or more “outside directors” within the
meaning of Section 162(m) of the Code.

 

(iii)          Rule 16b-3.  To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder shall be structured to satisfy the requirements for
exemption under Rule 16b-3.

 

(iv)          Other
Administration.  Other than as
provided above, the Plan shall be administered by (A) the Board or (B) a
Committee, which Committee shall be constituted to satisfy Applicable Laws.

 

(b)           Powers
of the Administrator.  Subject to the
provisions of the Plan and, in the case of a Committee, the specific duties
delegated by the Board to such Committee, and subject to the approval of any
relevant authorities, the Administrator shall have the authority in its
discretion:

 

(i)            to
determine the Fair Market Value;

 

(ii)           to
select the Eligible Service Providers to whom Options may from time to time be
granted hereunder;

 

(iii)          to
determine the number of Shares to be covered by each such award granted
hereunder;

 

(iv)          to
approve forms of agreement for use under the Plan;

 

(v)           to
determine the terms and conditions, of any Option granted hereunder.  Such terms and conditions include, but are
not limited to, the exercise price, the time or times when Options may be
exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or the Common Stock relating thereto, based in
each case on such factors as the Administrator, in its sole discretion, shall
determine;

 

(vi)          to
determine whether and under what circumstances an Option may be settled in cash
under subsection 9(e) instead of Common Stock;

 

(vii)         to
reduce the exercise price of any Option to the then current Fair Market Value
if the Fair Market Value of the Common Stock covered by such Option has
declined since the date the Option was granted;

 

(viii)        to
initiate an Option Exchange Program, but only in the event stockholder approval
has been obtained;

 

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(ix)           to
prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax laws;

 

(x)            to
allow Optionees to satisfy withholding tax obligations by electing to have the
Company withhold from the Shares to be issued upon exercise of an Option that
number of Shares having a Fair Market Value equal to the amount required to be
withheld.  The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined.  All
elections by Optionees to have Shares withheld for this purpose shall be made
in such form and under such conditions as the Administrator may deem necessary
or advisable; 

 

(xi)           to
construe and interpret the terms of the Plan and awards granted pursuant to the
Plan; and 

 

(xii)          to
make all other determinations deemed necessary or advisable for administering
the Plan.

 

(c)           Effect
of Administrator’s Decision.  All
decisions, determinations and interpretations of the Administrator shall be
final and binding on all Optionees.

 

5.             Eligibility.

 

(a)           Nonstatutory
Stock Options may be granted to Eligible Service Providers.  

 

(b)           Each
Option shall be designated in the Option Agreement as a Nonstatutory Stock
Option.  

 

(c)           Neither
the Plan nor any Option shall confer upon any Optionee any right with respect
to continuing the Optionee’s relationship as an Eligible Service Provider with
the Company, nor shall it interfere in any way with his or her right or the
Company’s right to terminate such relationship at any time, with or without
cause.

 

(d)           The
following limitations shall apply to grants to options to Eligible Service
Providers:

 

(i)            No
Employee shall be granted in any fiscal year, Options to purchase more than
1,668,399 Shares.

 

(ii)           In
connection with his or her initial employment, an Employee may be granted
Options to purchase up to an additional 834,200 Shares which shall not count
against the amount set forth in subsection (i) above.

 

(iii)          The
foregoing limitations shall be adjusted appropriately in connection with any
change in the Company’s capitalization as described in Section 11.

 

(iv)          If
an Option is cancelled in the same fiscal year of the Company in which it was
granted (other than in connection with a transaction described in Section 11),
the cancelled Option will be counted against the limits set forth in
subsections (i) and (ii) above. 
For this purpose, if the exercise price of an Option is reduced, the
transaction will be treated as a cancellation of the Option and the grant of a
new Option.

 

6.             Term
of Plan.  The Plan shall continue in
effect until August [1], 2011 unless sooner terminated under Section 13
of the Plan.

 

7.             Term
of Option.  The term of each Option
shall be stated in the Option Agreement; provided, however, that
the term shall be no more than ten (10) years from the date of grant
thereof.

 

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8.             Option
Exercise Price and Consideration.

 

(a)           The
per share exercise price for the Shares to be issued upon exercise of an Option
shall be such price as is determined by the Administrator, but shall be subject
to the following:

 

(i)            In
the case of a Nonstatutory Stock Option granted to an Eligible Service Provider
who, at the time of grant of such Option, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of the grant.

 

(ii)           Notwithstanding
the foregoing, Options may be granted with a per Share exercise price other
than as required above pursuant to a merger or other corporate transaction.

 

(b)           The
consideration to be paid for the Shares to be issued upon exercise of an
Option, including the method of payment, shall be determined by the
Administrator at the time of grant.  Such
consideration may consist of (1) cash, (2) check, (3) promissory
note, (4) other Shares which (x) in the case of Shares acquired upon
exercise of an Option, have been owned by the Optionee for more than six months
on the date of surrender, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which such
Option shall be exercised, (5) delivery of a properly executed exercise
notice together with such other documentation as the Administrator and the
broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the
exercise price, (6) consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan, (7) any
combination of the foregoing methods of payment, or (8) such other
consideration and method of payment for the issuance of Shares to the extent
permitted by Applicable Laws.  In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected
to benefit the Company.

 

9.             Exercise
of Option.

 

(a)           Procedure
for Exercise; Rights as a Stockholder. 
Any Option granted hereunder shall be exercisable according to the terms
hereof at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement.  Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence.

 

An Option may not be
exercised for a fraction of a Share.

 

An Option shall be deemed
exercised when the Company receives: (i) written or electronic notice of
exercise (in accordance with the Option Agreement) from the person entitled to
exercise the Option, and (ii) full payment for the Shares with respect to
which the Option is exercised.  Full
payment may consist of any consideration and method of payment authorized by
the Administrator and permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option
shall be issued in the name of the Optionee or, if requested by the Optionee,
in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a Stockholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. 
The Company shall issue (or cause to be issued) such Shares promptly
after the Option is exercised.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 11
of the Plan.

 

Exercise of an Option in
any manner shall result in a decrease in the number of Shares thereafter
available, both for purposes of the Plan and for sale under the Option, by the
number of Shares as to which the Option is exercised.

 

(b)           Termination
of Relationship as an Eligible Service Provider.  If an Optionee ceases to be an Eligible
Service Provider, such Optionee may exercise his or her Option within such
period of time as is specified in the Option Agreement (of at least thirty (30)
days) to the extent that the Option is vested on the date of

 

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termination (but
in no event later than the expiration of the term of the Option as set forth in
the Option Agreement).  In the absence of
a specified time in the Option Agreement, the Option shall remain exercisable
for three (3) months following the Optionee’s termination.  If, on the date of termination, the Optionee
is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

 

(c)           Disability
of Optionee.  If an Optionee ceases
to be an Eligible Service Provider as a result of the Optionee’s Disability,
the Optionee may exercise his or her Option within such period of time as is
specified in the Option Agreement to the extent the Option is vested on the
date of termination (but in no event later than the expiration of the term of
such Option as set forth in the Option Agreement).  In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee’s termination. 
If, on the date of termination, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option
shall revert to the Plan.  If, after
termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

 

(d)           Death
of Optionee.  If an Optionee dies while
an Eligible Service Provider, the Option may be exercised within such period of
time as is specified in the Option Agreement (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant), by
the Optionee’s estate or by a person who acquires the right to exercise the
Option by bequest or inheritance, but only to the extent that the Option is
vested on the date of death.  In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee’s termination.  If, at the time of death, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately revert to the Plan.  The Option may be exercised by the executor
or administrator of the Optionee’s estate or, if none, by the person(s)
entitled to exercise the Option under the Optionee’s will or the laws of
descent or distribution.  If the Option
is not so exercised within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

 

(e)           Buyout
Provisions.  The Administrator may at
any time offer to buy out for a payment in cash or Shares, an Option previously
granted, based on such terms and conditions as the Administrator shall
establish and communicate to the Optionee at the time that such offer is made.

 

10.           Non-Transferability
of Options.  Options may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee.

 

11.           Adjustments
Upon Changes in Capitalization, Merger or Asset Sale.

 

(a)           Changes
in Capitalization.  Subject to any
required action by the Stockholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to which
no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per share of
Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without
receipt of consideration by the Company. 
The conversion of any convertible securities of the Company shall not be
deemed to have been “effected without receipt of consideration.”  Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and
conclusive.  Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

 

(b)           Dissolution
or Liquidation.  In the event of the
proposed dissolution or liquidation of the Company, the Administrator shall notify
each Optionee as soon as practicable prior to the effective date of such
proposed transaction.  The Administrator
in its discretion may provide for an Optionee to have the right to exercise

 

6

 

his or her Option until fifteen (15) days prior to
such transaction as to all of the Optioned Stock covered thereby, including
Shares as to which the Option would not otherwise be exercisable.  In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares purchased upon
exercise of an Option shall lapse as to all such Shares, provided the proposed
dissolution or liquidation takes place at the time and in the manner
contemplated.  To the extent it has not
been previously exercised, an Option will terminate immediately prior to the
consummation of such proposed action.

 

(c)           Merger
or Asset Sale.  In the event of a
merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option shall
be assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation
refuses to assume or substitute for the Option, the Optionee shall fully vest
in and have the right to exercise the Option as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or
exercisable.  If an Option becomes fully
vested and exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee in
writing or electronically that the Option shall be fully exercisable for a
period of fifteen (15) days from the date of such notice, and the Option shall
terminate upon the expiration of such period. 
For the purposes of this paragraph, the Option shall be considered
assumed if, following the merger or sale of assets, the option or right confers
the right to purchase or receive, for each Share of Optioned Stock subject to
the Option immediately prior to the merger or sale of assets, the consideration
(whether stock, cash, or other securities or property) received in the merger
or sale of assets by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option, for each Share of Optioned Stock subject to the Option,
to be solely common stock of the successor corporation or its Parent equal in
fair market value to the per share consideration received by holders of Common
Stock in the merger or sale of assets.

 

12.           Time
of Granting Options.  The date of
grant of an Option shall, for all purposes, be the date on which the
Administrator makes the determination granting such Option, or such other date
as is determined by the Administrator. 
Notice of the determination shall be given to each Employee or
Consultant to whom an Option is so granted within a reasonable time after the
date of such grant.

 

13.           Amendment
and Termination of the Plan.

 

(a)           Amendment
and Termination.  The Board may at
any time amend, alter, suspend or terminate the Plan.

 

(b)           Stockholder
Approval.  The Board shall obtain
stockholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws.

 

(c)           Effect
of Amendment or Termination.  No
amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Administrator, which agreement must be in writing and signed by the
Optionee and the Company.  Termination of
the Plan shall not affect the Administrator’s ability to exercise the powers
granted to it hereunder with respect to Options granted under the Plan prior to
the date of such termination.

 

14.           Conditions
Upon Issuance of Shares.

 

(a)           Legal
Compliance.  Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and
the issuance and delivery of such Shares shall comply with Applicable Laws and
shall be further subject to the approval of counsel for the Company with
respect to such compliance.

 

(b)           Investment
Representations.  As a condition to
the exercise of an Option, the Administrator may require the person exercising
such Option to represent and warrant at the time of any such

 

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exercise that the
Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required.

 

15.           Inability
to Obtain Authority.  The inability
of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

 

16.           Reservation
of Shares.  The Company, during the
term of this Plan, shall at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.

 

17.           [intentionally
omitted] 

 

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APPENDIX A

NASSDA CORPORATION

TO 2001 STOCK OPTION PLAN

Rules for French Option Grants

 

The following rules shall apply in the case of
Option grants to French residents.

 

1.             Definitions.  As used herein, the following definitions
shall apply:

 

(a)           “Applicable
Laws” means the legal requirements relating to the administration of stock
option plans under French corporate, securities, and tax laws and regulations.

 

(b)           “Disability”
means total and permanent disability, as defined under Applicable Laws.

 

(c)           “Employee”
means any person employed (within the meaning of French labor laws) by the
Company or any Parent or Subsidiary of the Company, (i) who does not own
more than 10% of the voting power of all classes of stock of the Company, or
any Parent or Subsidiary of the Company, and (ii) who is a resident of the
Republic of France for tax purposes or who performs his or her duties in France
and is subject to French income tax on his or her remuneration.

 

(d)           “Fair
Market Value” means, as of any date, the dollar value of Common Stock
determined as follows:

 

(i)            If
the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the Nasdaq National Market of the
Nasdaq Stock Market, its Fair Market Value shall be the average quotation price
for the last 20 days preceding the date of determination for such stock (or the
average closing bid for such 20 day period, if no sales were reported) as
quoted on such exchange or system and reported in The Wall
Street Journal or such other source as the Administrator deems
reliable;

 

(ii)           If
the Common Stock is quoted on the Nasdaq Stock market (but not on the Nasdaq
National Market thereof) or regularly quoted by a recognized securities dealer
but selling prices are not reported, its Fair Market Value shall be the mean
between the high bid and low asked prices for the Common Stock for the last 20
days preceding the date of determination; or

 

(iii)          In
the absence of an established market for the Common Stock, the Fair Market
Value thereof shall be determined in good faith by the Administrator, in
accordance with Applicable Laws and accounting standards.

 

(e)           “Parent”
means a parent corporation of the Company as defined under Section 2(u) of
the Plan, which is also a parent company within the meaning of Section L.
225-180 of the French commercial code.

 

(f)            “Subsidiary”
means a subsidiary corporation of the Company as defined under Section 2(y)
of the Plan, which is also a subsidiary company within the meaning of Section L.
225-180 of the French commercial code.

 

2.             Eligibility.  Options granted pursuant to this Appendix A
may be granted only to Employees; provided, however, that the Président Directeur du conseil d’administration, the Général, the Directeur général,
the Gérant of a company with capital divided
by shares and the administrateurs who are also
Employees of a Subsidiary may be granted Options hereunder.

 

9

 

3.             Limitations.  Neither the Plan nor any Option Agreement
shall confer upon any Optionee any right with respect to continuing the
Optionee’s employment relationship with the Company.

 

4.             Stock
Subject to the Plan.  The total
number of Options outstanding which may be exercised for newly issued Shares of
Common Stock may at no time exceed that number equal to one-third of the
Company’s voting stock, whether preferred stock of the Company or Common
Stock.  If any Optioned Stock is to
consist of reacquired Shares, such Optioned Stock must be purchased by the
Company prior to the date of the grant of the corresponding new Option and must
be reserved and set aside for such purposes. 
In addition, the new Option must be granted within one (1) year of
the acquisition of the Shares underlying such new Option.

 

5.             Term
of Plan.  Options may be granted
under this Appendix A from the date of the adoption of the Plan by the
Board.  It shall continue in effect until
the earlier of (i) the termination of the Plan or (ii) the date five (5) years
from the date of its adoption or the maximum length of time permitted for
favorable tax and social security treatment under Applicable Laws, unless terminated
earlier under Section 13 of the Plan.

 

6.             Option
Price.  The Option price for the
Shares to be issued pursuant to exercise of an Option shall be determined by
the Administrator upon the date of grant of the Option and stated in the Option
Agreement, but in no event shall be lower than one hundred percent (100%) of
the Fair Market Value on the date the Option is granted.  The Option Price cannot be modified while the
Option is outstanding, except as required by Applicable Laws.

 

7.             Exercise
of Option; Restriction on Sale.

 

(a)           Options
granted hereunder may be not be exercised within one (1) year of the date
the Option is granted (the “Initial Exercise Date”) whether or not the Option
has vested prior to such time; provided, however, that the Initial Exercise
Date shall be automatically adjusted to conform with any changes under
Applicable Laws so that the length of time from the date of grant to the
Initial Exercise Date when added to the length of time in which shares may not
be disposed of after the Initial Exercise Date as provided in Section 7(b) below,
will allow for favorable tax and social security treatment under Applicable
Laws as determined by the Administrator. 
Thereafter, Options may be exercised to the extent they have vested.  Options granted hereunder shall vest as
determined by the Administrator.

 

An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with
the Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised together
with any applicable withholding taxes. 
Full payment may consist of any consideration and method of payment
authorized by the Administrator and permitted by the Option Agreement and the
Plan.  Shares issued upon exercise of an
Option shall be issued in the name of the Optionee or, if required by the
Optionee, in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by
the appropriate entry in an individual and nominative account on the books of
the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be
issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or
other right for which the record date is prior to the date the shares are
issued, except as provided in Section 8 of this Appendix A to the Plan.

 

(b)           The
Shares subject to this Option may not be transferred, assigned or hypothecated
in any manner otherwise than by will or by the laws of descent or distribution
before the date three (3) years from the Initial Exercise Date, except for
any events provided for in Article 91 ter of Annex II to the French tax
code; provided, however, that the duration of this restriction on sale may be
adjusted to conform with any changes to the holding period required for
favorable tax and social security treatment under Applicable Laws as determined
by the Administrator and to the extent permitted under Applicable Laws.

 

10

 

(c)           Termination
of Employment Relationship.  In the
event that an Optionee’s status as an Employee terminates (other than upon the
Optionee’s death or Disability), the Optionee may exercise his or her Option,
within such period of time as specified in the Option Agreement to the extent
that the Optionee was entitled to exercise it at the date of termination (but
in no event later than the expiration of the term of such Option as set forth
in the Option Agreement).  In the absence
of a specified time in the Option Agreement, the Option shall remain
exercisable for three (3) months following the Optionee’s
termination.  If, after termination, the
Optionee does not exercise the vested portion of his or her Option within the
time specified by the Administrator, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

 

(d)           Disability
of Optionee.  In the event that an
Optionee’s status as an Employee terminates as a result of the Optionee’s
Disability, the Optionee may exercise his or her Option within such period of
time as specified in the Option Agreement to the extent that the Optionee was
entitled to exercise it at the date of such termination (but in no event later
than the expiration of the term of such Option as set forth in the Option Agreement).  In the absence of a time specified in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee’s termination. 
If, at the date of termination, the Optionee has not vested as to his or
her entire Option, the Shares covered by the unexercisable portion of the
Option shall revert to the Plan.  If,
after termination, the Optionee does not exercise the vested portion of his or
her Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

 

(e)           Death
of Optionee.  In the event of the
death of an Optionee while an Employee, the Option may be exercised at any time
within six (6) months following the date of death by the Optionee’s estate
or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option had vested at the date of
death (but in no event later than the expiration of the term of such Option as
set forth in the Option Agreement).  If,
at the time of death, the Optionee had not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option shall revert
to the Plan.  If, after death, the
Optionee’s estate or a person who acquired the right to exercise the Option by
bequest or inheritance does not exercise the vested portion of Option within
the time specified herein, the Option shall terminate, and the Shares covered
by such Option shall immediately revert to the Plan.

 

8.             Changes
in Capitalization.  If any adjustment
provided for in Section 11(a) of the Plan to the exercise price and
the number of shares of Common Stock covered by outstanding Options would
violate Applicable Laws in such a way to jeopardize the favorable tax and
social security treatment of this Plan together with this Appendix A and the
Options granted thereunder, then no such adjustment shall be made prior to the
exercise of any such outstanding Option.

 

9.             Information
Statements to Optionees.  The Company
or its French Parent or Subsidiary, as required under Applicable Laws, shall
provide to each Optionee, with copies to the appropriate governmental entities,
such statements of information as required by the Applicable Laws.

 

10.           Effect
of Amendment or Termination.  No amendment,
alteration, suspension or termination of the Plan shall impair the rights of
any Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee
and the Company.  Any favorable
amendments or alteration are automatically deemed to be approved by
Optionee.  Termination of the Plan shall
not affect the Administrator’s ability to exercise the powers granted to it
hereunder with respect to Options granted under the Plan prior to the date of
such termination.

 

11.           Information
to Shareholders.  The French Parent
or Subsidiary of the Company, as required under Applicable Laws, shall provide
its shareholders with an annual report with respect to Options granted and/or
exercised by its Employees in the financial year.

 

11Exhibit 10.1

 

[Execution Copy]

 

SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT 

Dated as of September 9, 2005

 

This SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT (this
“Amendment”) is among B&G FOODS, INC., a Delaware
corporation (the “Borrower”), the several banks and other financial
institutions or entities from time to time party to the Credit Agreement as
lenders (the “Lenders”), and LEHMAN
COMMERCIAL PAPER INC., as administrative agent for the Lenders (in
such capacity, the “Administrative Agent”).

 

PRELIMINARY
STATEMENTS:

 

A.            The Borrower, the Lenders, the
Administrative Agent and Lehman Brothers Inc., as Arranger, The Bank of New
York, as Documentation Agent, and Bank of America, N.A., successor by merger to
Fleet National Bank, as Syndication Agent, entered into a Revolving Credit
Agreement, dated as of October 14, 2004, as amended by the Amendment dated
as of March 30, 2005 (such Revolving Credit Agreement as so amended and as
may be further amended, supplemented or otherwise modified from time to time,
and together with all Annexes, Exhibits and Schedules thereto, the “Credit
Agreement”; capitalized terms used and not otherwise defined herein shall
have the meanings ascribed to such terms in the Credit Agreement); and

 

B.            The Borrower has requested that the
Lenders amend the Credit Agreement to revise certain definitions and the
Lenders have agreed to such proposed amendments, subject to the other terms and
conditions contained herein.

 

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

 

1.             Amendments to Credit Agreement.  Subject to the satisfaction of the conditions
set forth in Section 2 hereof, the Credit Agreement is amended as follows:

 

(a)           Section 1.1 of the Credit Agreement is hereby
amended by inserting the following new definition in the appropriate
alphabetical position:

 

“Consolidated Net Debt”: at any date, without
duplication (a) Consolidated Total Debt at such date plus (b) the
amount, at such date, of all accrued and unpaid dividends on any series of
Capital Stock of the Borrower or any of its Subsidiaries, other than the amount
of any dividends on Capital Stock payable solely in Capital Stock of the
Borrower or any of its Subsidiaries (other than Disqualified Stock) or to the
Borrower or a Subsidiary of the Borrower plus (c) (y) the amount of
interest expected to be due and payable on the Senior Subordinated Notes at the
next regularly scheduled quarterly interest payment date, plus (z) all accrued
interest, if any, on the Senior Subordinated Notes with respect to prior
regularly scheduled interest payment dates that remains unpaid as of such date,
less (d) the amount of cash and cash equivalents of the Borrower and its
Subsidiaries at such date, all determined on a consolidated basis in accordance
with GAAP.

 

(b)           The definition of “Consolidated Leverage Ratio”
contained in Section 1.1 of the Credit Agreement is hereby amended by
deleting the term “Consolidated Total Debt” and inserting the term “Consolidated
Net Debt” in lieu thereof.

 

 

(c)           The definition of “Consolidated Senior Debt” contained
in Section 1.1 of the Credit Agreement is hereby amended by deleting the
term “Consolidated Total Debt” and inserting the term “Consolidated Net Debt”
in lieu thereof.

 

2.             Conditions
to Effectiveness.  The
effectiveness of all the amendments contained in Section 1 of this
Amendment are conditioned upon satisfaction of the
following conditions precedent (the date on which all such conditions precedent
have been satisfied being referred to herein as the “Amendment Effective
Date”):

 

(a)           the Administrative Agent shall have
received counterparts of this Amendment signed by each of the Borrower, the
Administrative Agent and the Required Lenders;

 

(b)           the Administrative Agent shall have
received counterparts of the consent of the Guarantors attached hereto as Annex
I (the “Consent”) executed by each of the Guarantors;

 

(c)           each of the representations and warranties in Section 3
below shall be true and correct in all material respects on and as of the
Amendment Effective Date; and

 

(d)           the Administrative Agent shall have received payment
in immediately available funds of all expenses incurred by the Administrative
Agent (including, without limitation, legal fees) that are then due and payable
and reimbursable under the Credit Agreement and for which invoices have been
presented.

 

3.             Representations
and Warranties.  The Borrower
represents and warrants to the Administrative Agent and the Lenders as follows:

 

(a)           Authority.  The Borrower
has the corporate or other organizational power and authority to execute and
deliver this Amendment and to perform its obligations hereunder and under the
Credit Agreement (as amended hereby). 
Each of the Guarantors has the corporate or other organizational power
and authority, to execute and deliver the Consent and to perform its
obligations thereunder.  The execution,
delivery and performance (i) by the Borrower of this Amendment and the
Credit Agreement (as amended hereby) and the transactions contemplated hereby
and thereby and (ii) by the Guarantors of the Consent, in each case, have
been authorized by all necessary corporate or other organizational action of
such Person.  Other than any required
disclosure filings with the Securities and Exchange Commission, no material
consent or authorization of, filing with, notice to or other act by or in
respect of, any governmental Authority or any other Person is required in
connection with the execution, delivery, performance, validity or
enforceability of this Amendment or the Consent.

 

(b)           Enforceability.  Each of the
Consent and this Amendment has been duly executed and delivered on behalf of
each Loan Party that is party thereto or hereto.  Assuming the conditions precedent in Section 2
of this Amendment have been satisfied, each of the Consent, this Amendment and
the Credit Agreement (as amended hereby) (i) constitutes a legal, valid
and binding obligation of each Loan Party party hereto or thereto, as
applicable, enforceable against each such Loan Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law) and (ii) is
in full force and effect.  Neither the
execution or delivery of the Consent or this Amendment by the Borrower or any
of the Guarantors, as applicable, or the performance by the Borrower or the
Guarantors of their respective obligations under the Consent, this Amendment or
the Credit Agreement (as amended hereby), will

 

2

 

adversely affect the validity, perfection or priority of the
Administrative Agent’s Lien on any of the Collateral or its ability to realize
thereon.

 

(c)           Representations and Warranties. 
After giving effect to this Amendment, the representations and warranties
contained in the Credit Agreement and the other Loan Documents (other than any
such representations and warranties that, by their terms, are specifically made
as of a date other than the date hereof) are true and correct in all material
respects on and as of the date hereof as though made on and as of the date
hereof.

 

(d)           No Conflicts.  Neither the
execution and delivery of the Consent or this Amendment, nor the consummation
of the transactions contemplated hereby and thereby, nor the performance of and
compliance with the terms and provisions hereof or of the Credit Agreement (as
amended hereby) by any Loan Party will, at the time of such performance, (a) violate
any Requirement of Law or any material Contractual Obligation of any Loan
Party, except for any violation that could not reasonably be expected to have a
Material Adverse Effect or (b) result in, or require, the creation or
imposition of any Lien (other than Liens created by or otherwise permitted by
the Loan Documents) on any of their respective properties pursuant to any
Requirement of Law or any such Contractual Obligation.

 

(e)           No Default.  Both before
and after giving effect to this Amendment, no event has occurred and is
continuing that constitutes a Default or Event of Default.

 

4.             Reference
to and Effect on the Loan Documents.

 

(a)           Upon and after the effectiveness of this Amendment,
each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”
or words of like import referring to the Credit Agreement, and each reference in
the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as amended hereby.  This Amendment is a Loan Document.

 

(b)           Except as specifically amended by this Amendment, the
Credit Agreement and the other Loan Documents are and shall continue to be in
full force and effect and are hereby in all respects ratified and
confirmed.  Without limiting the
generality of the foregoing, the Security Documents and all of the Collateral
described therein do and shall continue to secure the payment of all
Obligations under and as defined therein, in each case as modified hereby.

 

(c)           The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver
of any right, power or remedy of any Secured Party under any of the Loan
Documents, nor, except as expressly provided herein, constitute a waiver or
amendment of any provision of any of the Loan Documents.

 

5.             Counterparts.  This Amendment and the Consent may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which taken together shall constitute one and the
same agreement.  Delivery of an executed
counterpart of a signature page to this Amendment or the Consent by
facsimile shall be effective as delivery of a manually executed counterpart of
this Amendment or Consent, as the case may be.

 

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

 

3

 

7.             Governing
Law.  This Amendment shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

[Signature
pages follow]

 

4

 

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

 

	
   

  	
  LEHMAN
  COMMERCIAL PAPER INC.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig Malloy

  
	
   

  	
   

  	
  Name: Craig
  Malloy

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  B&G
  FOODS, INC.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C.
  Cantwell

  
	
   

  	
   

  	
  Name: Robert C.
  Cantwell

  
	
   

  	
   

  	
  Title: Executive
  Vice President of Finance

  
	
   

  	
   

  	
         and Chief
  Financial Officer

  

 

 

	
   

  	
  LEHMAN
  COMMERCIAL PAPER INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig Malloy

  
	
   

  	
   

  	
  Name: Craig
  Malloy

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracy L.
  Cooper

  
	
   

  	
   

  	
  Name: Tracy L.
  Cooper

  
	
   

  	
   

  	
  Title: Asst.
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYAL
  BANK OF CANADA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dustin
  Craven

  
	
   

  	
   

  	
  Name: Dustin
  Craven

  
	
   

  	
   

  	
  Title:
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERCIA, N.A.,
  successor by merger to Fleet

  National Bank, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Jana L.
  Baker

  
	
   

  	
   

  	
  Name: Jana L.
  Baker

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

ANNEX
I

 

CONSENT
OF GUARANTORS

 

Each
of the undersigned is a Guarantor of the Obligations of the Borrower under the
Credit Agreement and hereby (a) consents to the foregoing Amendment, (b) acknowledges
that notwithstanding the execution and delivery of the foregoing Amendment, the
obligations of each of the undersigned Guarantors are not impaired or affected
and all guaranties given to the holders of Obligations and all Liens granted as
security for the Obligations continue in full force and effect, and (c) confirms
and ratifies its obligations under the Guarantee and Collateral Agreement and
each other Loan Document executed by it. 
Capitalized terms used herein without definition shall have the meanings
given to such terms in the Amendment to which this Consent is attached or in
the Credit Agreement referred to therein, as applicable.

 

IN
WITNESS WHEREOF, each of the undersigned has executed and delivered this
Consent of Guarantors as of September 9, 2005.

 

 

	
   

  	
  BGH HOLDINGS, INC.

  
	
   

  	
  BLOCH & GUGGENHEIMER, INC.

  
	
   

  	
  POLANER, INC.

  
	
   

  	
  TRAPPEY’S FINE FOODS, INC.

  
	
   

  	
  MAPLE GROVE FARMS OF VERMONT, INC.

  
	
   

  	
  HERITAGE ACQUISITION CORP.

  
	
   

  	
  ORTEGA HOLDINGS INC.

  
	
   

  	
  WILLIAM UNDERWOOD
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C.
  Cantwell

  
	
   

  	
   

  	
  Name: Robert C.
  Cantwell

  
	
   

  	
   

  	
  Title:
  Authorized Officer

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