Document:

exv10w5

 

EXHIBIT 10.5

CHANGE IN CONTROL AGREEMENT

     This Change in Control Agreement is entered into this 1st day of September 2006,
between Methode Electronics, Inc., a Delaware corporation (the “Company”), and Paul E. Whybrow (the
“Executive”).

WITNESSETH:

     WHEREAS, Executive is employed by the Company or one of its wholly-owned subsidiaries
(referred to collectively as the “Company”) and the Company desires to provide certain security to
Executive in connection with any potential change in control of the Company; and

     NOW, THEREFORE, it is hereby agreed by and between the parties, for good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, as follows:

     1. Payments and Benefits Upon a Change in Control. If within twenty-four (24) months
after a Change in Control (as defined below) or during the Period Pending a Change in Control (as
defined below): (i) the Company shall terminate Executive’s employment with the Company without
Good Cause (as defined below), or (ii) Executive shall voluntarily terminate such employment with
Good Reason (as defined below), the Company shall, within 30 days of Executive’s Employment
Termination (as defined below), make the payments and provide the benefits described below.

     (a) Salary Payment. The Company shall make a lump sum cash payment to
Executive equal to two times the Executive’s Annual Salary (as defined below).

     (b) Bonuses. The Company shall make a lump sum cash payment to Executive equal
to the sum of the following amounts: (i) a bonus equal to two times the lesser of: (a) the
Executive’s target bonus amount for the fiscal year in which Executive’s Employment
Termination occurs, or (b) the bonus the Executive earned in the prior fiscal year (however,
if the Executive’s Employment Termination takes place in the 2007 fiscal year, this amount
shall be the Executive’s target bonus amount for 2007); provided, however, that if the
target bonus amount for the fiscal year has not yet been determined as of the date of the
Executive’s Employment Termination, then the bonus amount payable hereunder shall be
calculated based on the Executive’s target bonus amount for the previous fiscal year,
regardless of whether such bonus was actually earned; plus (ii) all of Executive’s unpaid,
but accrued matching bonus pursuant to the Longevity Contingent Bonus Plan. Payments made
pursuant to subsection (i) above shall not be subject to matching pursuant to the Longevity
Contingent Bonus Plan.

     (c) Welfare Benefit Plans. With respect to each Welfare Benefit Plan (as
defined below), for the period beginning on Executive’s Employment Termination and ending on
the earlier of: (i) twenty-four (24) months following Executive’s Employment Termination,
or (ii) the date Executive becomes covered by a welfare benefit plan or

 

 

program maintained by an entity other than the Company which provides coverage or
benefits substantially equivalent to such Welfare Benefit Plan, Executive shall continue to
participate in such Welfare Benefit Plan on the same basis and at the same cost to Executive
as was the case immediately prior to the Change in Control (or, if more favorable to
Executive, as was the case at any time hereafter), or, if any benefit or coverage cannot be
provided under a Welfare Benefit Plan because of applicable law or contractual provisions,
Executive shall be provided with substantially similar benefits and coverage for such
period. Immediately following the expiration of the continuation period required by the
preceding sentence, Executive shall be entitled to continued group health benefit plan
coverage (so-called “COBRA coverage”) in accordance with Section 498OB of the Internal
Revenue Code of 1986, as amended (the “Code”), it being intended that COBRA coverage shall
be consecutive to the benefit and coverage provided for in the preceding sentence.

     (d) Employment. This Agreement shall not be construed as creating an express
or implied contract of employment and, except as otherwise agreed in writing between the
Executive and the Company, the Executive shall not have any right to be retained in the
employ of the Company.

     2. Definitions. For purposes of this Agreement:

     (a) “Annual Salary” shall mean Executive’s salary at the greater of (i) Executive’s
annualized base salary (including Executive’s monthly car allowance) in effect on the date
of the Change in Control, or (ii) Executive’s annualized base salary in effect on
Executive’s Employment Termination.

     (b) “Change in Control” shall be deemed to have occurred if:

	 	(i)	 	any “person” (as such term is used in Section
13(d) and 14(d)(2) of the Exchange Act, other than any Subsidiary, any
employee benefit plan of the Company or a Subsidiary is or becomes a
beneficial owner, directly or indirectly, of stock of the Company
representing 25% or more of the total voting power of the Company’s
then outstanding stock;
	 
	 	(ii)	 	a tender offer (for which a filing has been
made with the SEC which purports to comply with the requirements of
Section 14(d) of the Exchange Act and the corresponding SEC rules) is
made for the stock of the Company. In case of a tender offer described
in this paragraph (ii), the “Change of Control” will be deemed to have
occurred upon the first to occur of: (A) any time during the offer
when the person (using the definition in (i) above) making the offer
owns or has accepted for payment stock of the Company with 25% or more
of the total voting power of the Company’s outstanding stock, or (B)
three business days before the offer is to terminate unless the offer
is withdrawn first, if the person making the offer could own, by the
terms of the offer plus any shares

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	 	 	 	owned by this person, stock with 50% or more of the total voting
power of the Company’s outstanding stock when the offer terminates;
or
	 
	 	(iii)	 	individuals who were the Board’s nominees for
election as directors of the Company immediately prior to a meeting of
the shareholders of the Company involving a contest for the election of
directors shall not constitute a majority of the Board following the
election.

     (c) “Employment Termination” shall mean the effective date of: (i) Executive’s
voluntary termination of employment with the Company with Good Reason, or (ii) the
termination of Executive’s employment by the Company without Good Cause.

     (d) “Good Cause” shall mean: (i) Executive’s conviction of a felony; (ii) Executive’s
commission of any act or acts of personal dishonesty intended to result in substantial
personal enrichment to Executive to the detriment of the Company; or (iii) repeated
violations of Executive’s responsibilities which are demonstrably willful and deliberate,
provided that such violations have continued more than ten days after the Board of Directors
of the Company has given written notice of such violations and of its intention to terminate
Executive’s employment because of such violations.

     (e) “Good Reason” shall exist if, without Executive’s express written consent:

	 	(i)	 	The Company shall materially reduce the nature,
scope or level of Executive’s responsibilities from the nature, scope
or level of such responsibilities prior to the Change in Control (or
prior to the Period Pending a Change in Control), or shall fail to
provide Executive with adequate office facilities and support services
to perform such responsibilities.
	 
	 	(ii)	 	The Company shall require Executive to move
Executive’s principal business office more than 25 miles from
Executive’s principal business office at the time of this Agreement, or
assign to Executive duties that would reasonably require such move;
provided, however, that if Executive’s principal business office is not
located at the Company’s then current corporate headquarters, and the
Company requires Executive to move Executive’s principal business
office to such corporate headquarters, or assigns to Executive duties
that would reasonably require such move, such actions shall not
constitute “Good Reason” under this subsection (ii).
	 
	 	(iii)	 	The Company shall require Executive, or assign
duties to Executive which would reasonably require Executive, to
increase, by more than twenty-four, the number of normal working days
(determined at the time of this Agreement) that Executive spends

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	 	 	 	away from Executive’s principal business office during any
consecutive twelve-month period.
	 
	 	(iv)	 	The Company shall reduce Executive’s Annual
Salary below that in effect as of the date of this Agreement (or as of
the Change in Control, if greater).
	 
	 	(v)	 	The Company shall materially reduce or fail to
continue in effect any cash or stock-based incentive or bonus plan,
retirement plan, welfare benefit plan, or other benefit plan, program
or arrangement, unless the aggregate value (as computed by an
independent employee benefits consultant selected by the Company) of
all such incentive, bonus, retirement and benefit plans, programs and
arrangements provided to Executive is not materially less than their
aggregate value as of the date of this Agreement (or as of the Change
in Control, if greater).
	 
	 	(vi)	 	If the Board of Directors fails to act in good
faith with respect to the Company’s obligations hereunder, or the
Company breaches its obligations hereunder.

     (f) “Period Pending a Change in Control” shall mean the period between the time an
agreement is entered into by the Company with respect to a merger or other business
combination of the Company, which would constitute a Change in Control, and the effective
time of such merger or other business combination of the Company.

     (g) “Welfare Benefit Plan” shall mean each welfare benefit plan maintained or
contributed to by the Company, including, but not limited to a plan that provides health
(including medical and dental), life, accident or disability benefits or insurance, or
similar coverage, in which Executive was participating at the time of the Change in Control.

     3. Salary to Date of Employment Termination. The Company shall pay to Executive any
unpaid salary or other compensation of any kind earned with respect to any period prior to
Executive’s Employment Termination, including, but not limited to a lump sum cash payment for
accumulated but unused vacation earned through such Employment Termination.

     4. Other Incentive Plans. Except as otherwise provided herein, nothing in this
Agreement shall impair or impact the vesting of any restricted stock, stock options, cash
incentives or other form of compensation or benefits provided under any other plan, program or
arrangement.

     5. Restricted Stock and Cash Awards.

     (a) Restricted Stock Award Agreements. The Parties agree that the Restricted
Stock Award Agreements (Executive Award/Performance Based) dated June 18, 2004 and June 15,
2005 between the Executive and the Company (“Restricted Stock Award Agreements”) shall be
amended by replacing the phrase “a fraction, the numerator of

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which is the number of months elapsed since May 1, 2004 [or 2005] (rounded up) and the
denominator of which is 36” in the last sentence of Section 6(c) with the phrase “the
percentage set forth in Exhibit C (Column (d)) corresponding to the number of months elapsed
since May 1, 2004 [2005].” A copy of a revised Exhibit B and Exhibit C are attached hereto.
In all other respects the Restricted Stock Award Agreements remain in full force and
effect.

     (b) Cash Award Agreements. The Parties agree that the Cash Award Agreements
dated June 18, 2004 and June 15, 2005between the Executive and the Company (“Cash Award
Agreements”) shall be amended by replacing the phrase “a fraction, the numerator of which is
the number of months elapsed since May 1, 2004 (or 2005] (rounded up) and the denominator of
which is 36” in lines 18 and 19 of Paragraph 3(b) of the Cash Award Agreements with the
phrase “the percentage set forth in Exhibit C (Column (d)) corresponding to the number of
months elapsed since May 1, 2004 [2005].” A copy of a revised Exhibit B and Exhibit C are
attached hereto. In all other respects the Cash Award Agreements remain in full force and
effect.

     6. Certain Additional Payments by the Company.

     (a) In the event it shall be determined that as a result, directly or indirectly, of
any payment or distribution by the Company to or for the benefit of the Executive, whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise (a “Payment”), the Executive would be subject to the excise tax imposed by Section
4999 of the Code or any interest or penalties are incurred by the Executive with respect to
such excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax), then the Executive shall be
entitled to promptly receive an additional payment (a “Gross-Up Payment”) in an amount such
that after payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, but excluding any income taxes on the Payment, the Executive is in the
same after-tax position as if no Excise Tax had been imposed upon the Executive; provided,
however, that the Gross-Up Payment shall be made only to the extent that the total value of
any payments or benefits received by the Executive under this Agreement or any other plan or
agreement with the Company (“Benefits”) exceeds by 10 percent or more the dollar amount that
is three times the Executive’s “base amount” (as defined in Section 280G of the Code). If
the total value of Benefits exceeds by less than 10 percent the dollar amount that is three
times the Executive’s “base amount,” then no Gross-Up Payment shall be made and Benefits
shall be capped at the amount that is $1 less than three times the Executive’s “base
amount.”

     (b) Subject to the provisions of Section 5(c), all determinations required to be made
under this Section 5, including whether or when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determinations, shall be made by the Company’s Independent Public Accounting Firm (the
“Accounting Firm”) which shall provide detailed supporting calculations both to the Company
and the Executive within 15 business days of receipt of notice from the

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Executive that there has been a Payment or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive shall appoint
another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up
Payment, as determined pursuant to this Section 5, shall be paid to the Executive within
five business days of the receipt of the Accounting Firm’s determination. If the Accounting
Firm determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive with a written opinion that failure to report the Excise Tax on the Executive’s
applicable federal income tax return would not result in the imposition of a negligence or
similar penalty. Any determination by the Accounting Firm shall be binding upon the Company
and the Executive. As a result of the uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company should have
been made (“Underpayment”), consistent with the calculations required to be made hereunder.
In the event that the Company exhausts its remedies pursuant to Section 5(c) and the
Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Executive.

     (c) The Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment. Such notification shall be given as soon as practicable but no later than
ten business days after the Executive knows of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period following
the date on which it gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the Company notifies
the Executive in writing prior to the expiration of such period that it desires to contest
such claim, the Executive shall:

	 	(i)	 	give the Company any information reasonably
requested by the Company relating to such claim,
	 
	 	(ii)	 	take such action in connection with contesting
such claim as the Company shall reasonably request in writing from time
to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the
Company,
	 
	 	(iii)	 	cooperate with the Company in good faith in
order to effectively contest such claim, and,

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	 	(iv)	 	permit the Company to participate in any
proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax
or income tax (including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section 5(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive to pay the
tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such payment to the
Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on
an after-tax basis, from any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any imputed income
with respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

     (d) If, after the receipt by the Executive of an amount advanced by the Company
pursuant to Section 5(c), the Executive becomes entitled to receive any refund with respect
to such claim, the Executive shall (subject to the Company’s complying with the requirements
of Section 5(c)) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the receipt by
the Executive of an amount advanced by the Company pursuant to Section 5(c), a determination
is made that the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be
paid.

     7. Mitigation and Set-Off. Executive shall not be required to mitigate Executive’s
damages by seeking other employment or otherwise. The Company’s obligations under this Agreement
shall not be reduced in any way by reason of any compensation or benefits received (or foregone)

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by Executive from sources other than the Company after Executive’s Employment Termination, or
any amounts that might have been received by Executive in other employment had Executive sought
other employment, except for the termination of benefits under a Welfare Benefit Plan pursuant to
Section 1(c)(ii) hereof. Except as expressly provided in section 1(c) of this Agreement,
Executive’s entitlement to benefits and coverage under this Agreement shall continue after, and
shall not be affected by, Executive’s obtaining other employment after his Employment Termination,
provided that any such benefit or coverage shall not be furnished if Executive expressly waives the
specific benefit or coverage by giving written notice of waiver to the Company.

     8. Litigation Expenses. The Company shall pay to Executive all out-of-pocket
expenses, including attorneys’ fees, incurred by Executive in the event Executive successfully
enforces any provision of this Agreement in any action, arbitration or lawsuit.

     9. Assignment, Successors. This Agreement may not be assigned by the Company without
the written consent of Executive but the obligations of the Company under this Agreement shall be
the binding legal obligations of any successor to the Company by merger or other business
combination, and in the event of any business combination or transaction that results in the
transfer of substantially all of the assets or business of the Company, the Company will cause the
transferee to assume the obligations of the Company under this Agreement. This Agreement may not be
assigned by Executive during Executive’s life, and upon Executive’s death will inure to the benefit
of Executive’s heirs, legatees and legal representatives of Executive’s estate.

     10. Interpretation. The validity, interpretation, construction and performance of
this Agreement shall be governed by the laws of the State of Illinois, without regard to the
conflict of law principles thereof. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

     11. Withholding. The Company may withhold from any payment that it is required to
make under this Agreement amounts sufficient to satisfy applicable withholding requirements under
any federal, state or local law.

     12. Amendment or Termination. This Agreement may be amended at any time by written
agreement between the Company and Executive. The Company may terminate this Agreement by written
notice given to Executive at least [two years] prior to the effective date of such termination,
provided that, if a Change in Control occurs prior to the effective date of such termination, the
termination of this Agreement shall not be effective and Executive shall be entitled to the full
benefits of this Agreement. Any such amendment or termination shall be made pursuant to a
resolution of the Company’s Board of Directors.

     13. Financing. Cash and benefit payments under this Agreement shall constitute
general obligations of the Company. Executive shall have only an unsecured right to payment
thereof out of the general assets of the Company. Notwithstanding the foregoing, the Company may,
by agreement with one or more trustees to be selected by the Company, create a trust on such terms,
as the Company shall determine, to make payments to Executive in accordance with the terms of this
Agreement.

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     14. Severability. In the event that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect.

     15. Arbitration. The parties initially shall attempt to resolve by direct negotiation
any dispute, controversy or claim arising out of or relating to this Agreement or its breach or
interpretation (each, a “Dispute”). For purposes of this negotiation, the Company shall be
represented by one or more of its directors appointed by the Board of Directors. If the parties
are unable to resolve the Dispute by direct negotiation within 30 days after written notice by one
party to the other of the Dispute, either party may initiate a confidential, binding arbitration to
resolve the Dispute. All such Disputes shall be arbitrated in Chicago, Illinois pursuant to the
arbitration rules of J.A.M.S. Endispute before a single arbitrator. (If, at the time of any
Dispute, J.A.M.S. Endispute has ceased to exist, all such Disputes shall be arbitrated in Chicago,
Illinois pursuant to the arbitration rules of the American Arbitration Association before a single
arbitrator.) Judgment upon any award rendered by the arbitrator may be entered in any court having
jurisdiction, and both parties consent and submit to the jurisdiction of such court for purposes of
such action. Nothing in this Agreement shall preclude either party from seeking equitable relief
from a court of competent jurisdiction. The statute of limitations, estoppel, waiver, laches and
similar doctrines, which would otherwise be applicable in any action brought by a party shall be
applicable in any arbitration proceeding, and the commencement of an arbitration proceeding shall
be deemed the commencement of an action for those purposes. The Federal Arbitration Act shall
apply to the construction, interpretation and enforcement of this arbitration provision.

     16. Other Agreements. This Agreement supersedes and cancels all prior written or oral
agreements and understandings relating to the terms of this Agreement.

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

	 	 	 	 	 	 
	 	 	METHODE ELECTRONICS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Donald W. Duda
	 

	 	 	 	 
	 

	 	Its:
	 	President and Chief Executive Officer
	 
	 	 	 	 
	 	 	EMPLOYEE:
	 
	 	 	 	 
	 	 	/s/ Paul E. Whybrow
	 	 	 
	 	 	Name: Paul E. Whybrow

9exv10w1

 

EXHIBIT 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

AND JOINDER AGREEMENT

     This Amendment No. 1 to Credit Agreement and Joinder Agreement (this “Amendment”) dated as of
August 31, 2006, is made by and among TREEHOUSE FOODS, INC., a Delaware corporation (the
“Borrower”), BAY VALLEY FOODS, LLC, a Delaware limited liability company
(the “Guarantor”), BANK OF
AMERICA, N.A., a national banking association organized and existing under the laws of the United
States (“Bank of America”), in its capacity as administrative agent for the Lenders (as defined in
the Credit Agreement described below) (in such capacity, the “Administrative Agent”), each of the
existing Lenders under such Credit Agreement (collectively, the “Existing Lenders”), and each of
the Persons becoming Lenders by the execution of this Amendment (the “Joining Lenders”).

W I T N E S S E T H:

     WHEREAS, the Borrower, the Administrative Agent, Bank of America, as Swing Line Lender and L/C
Issuer and the Existing Lenders have entered into that certain Credit Agreement dated as of June 27,
2005 (the “Credit Agreement”; capitalized terms used in this Amendment not otherwise defined
herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which
the Existing Lenders have made available to the Borrower a revolving credit facility with letter of
credit and swing line subfacilities; and

     WHEREAS, the Guarantor has entered into the Guaranty pursuant to which it has guaranteed the
payment and performance of the obligations of the Borrower under the Credit Agreement and the other
Loan Documents; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Existing Lenders that it
desires to amend certain provisions of the Credit Agreement to, among other things, (i) amend the
Applicable Rate, (ii) extend the Maturity Date, and (iii) add an additional $100,000,000 in the
aggregate of Commitments (each, an “Incremental Commitment”) from certain of the Existing Lenders
and the Joining Lenders, in each case as more particularly set forth below, and the Administrative
Agent, the Existing Lenders and the Joining Lenders are willing to effect such amendment and to
provide the Incremental Commitments on the terms and conditions contained in this Amendment;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1.      Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

	 	(a)	 	The existing definition of “Applicable Rate” in Section 1.01 is
deleted in its entirety and the following is inserted in lieu thereof:

     “Applicable Rate” means the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section
6.02(a):

 

 

Applicable Rate

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Eurodollar	 
	 	 	 	 	 	 	 	 	 	 	 	Rate +	 
	Pricing	 	 	Consolidated	 	 	 	 	 	 	 	Letter of	 
	Level	 	 	Leverage Ratio	 	 	Facility Fee	 	 	Credit Fee	 
	 	 	 	 	 	 	 	 	 	 	 
	1
	 	 	Less than or equal to 1.50 to 1.00	 	 	 	0.080	%	 	 	 	0.295	%	 
	2
	 	 	Less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00	 	 	 	0.100	%	 	 	 	0.350	%	 
	3
	 	 	Less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00	 	 	 	0.125	%	 	 	 	0.425	%	 
	4
	 	 	Less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00	 	 	 	0.150	%	 	 	 	0.500	%	 
	5
	 	 	Less than or equal to 3.50 to 1.00 but greater than 3.00 to 1.00	 	 	 	0.175	%	 	 	 	0.575	%	 
	6
	 	 	Greater than 3.50 to 1.00	 	 	 	0.225	%	 	 	 	0.900	%	 

	 	 	 	Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(a); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then Pricing
Level 6 shall apply from the first Business Day after the date on which such
Compliance Certificate was required to have been delivered until the date that is
the first Business Day immediately after the date such Compliance Certificate is
delivered. The Applicable Rate in effect from the Closing Date until the first
Business Day immediately following the date a Compliance Certificate is delivered
pursuant to Section 6.02(a) shall be determined based upon the Consolidated
Leverage Ratio as calculated in the certificate delivered pursuant to Section
4.02(a)(vi).
	 
	 	(b)	 	The existing definition of “Consolidated EBIT” in Section 1.01
is deleted in its entirety and the following is inserted in lieu thereof:

     “Consolidated EBIT” means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for
such period plus (a) the following to the extent deducted in calculating
such Consolidated Net Income (without duplication): (i) Consolidated Interest
Charges for such period, (ii) the provision for Federal, state, local and foreign
income taxes payable by the Borrower and its Subsidiaries for such period, (iii)
non-

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recurring expenses or losses of the Borrower and its Subsidiaries reducing such
Consolidated Net Income which do not represent a cash item in such period;
provided, that Consolidated EBIT shall be decreased by the amount of any
cash expenditures in such period related to non-cash expenses or losses added back
to Consolidated EBIT during any prior period, and (iv) any non-cash stock-based
compensation expenses of the Borrower and its Subsidiaries reducing Consolidated Net
Income for such period, and minus (b) the following to the extent included
in calculating such Consolidated Net Income: (i) Federal, state, local and foreign
income tax credits of the Borrower and its Subsidiaries for such period and (ii) all
extraordinary, unusual or nonrecurring gains increasing Consolidated Net Income for
such period.

	 	(c)	 	The existing definition of “Maturity Date” in Section 1.01 is
deleted in its entirety and the following is inserted in lieu thereof:

     “Maturity Date” means August 31, 2011.

	 	(d)	 	The following definitions are added to Section 1.01 in the appropriate
alphabetical locations therein:

     “Incremental Commitments” means, collectively, (a) any increase in the
Commitments of the Lenders that were party to the Credit Agreement prior to the
effectiveness of the Amendment No. 1 to Credit Agreement and Joinder Agreement dated
as of August 31, 2006 (the “First Amendment”), and (b) any Commitments of
Lenders that became party to the Credit Agreement pursuant to the First Amendment.

     “Senior Notes” means the Borrower’s senior notes due 2013 to be issued
on or about September 12, 2006, in an aggregate principal amount of $100,000,000.

     “Trigger Quarter” has the meaning specified in Section 7.12(b).

	 	(e)	 	Section 2.14(a) is hereby amended by adding the parenthetical,
“(exclusive of the Incremental Commitments)” in the fourth line thereof immediately
after “$100,000,000”.
	 
	 	(f)	 	Clause (a) of Section 7.03 is deleted in its entirety and the following
is inserted in lieu thereof:

(a)      (i) Indebtedness under the Loan Documents or, with respect to any Loan
Party, under any Related Credit Arrangement, and (ii) to the extent a
Subsidiary is also a Guarantor, Indebtedness of such Subsidiary under
Guarantees of the Senior Notes and Guarantees of other unsecured
Indebtedness of the Borrower;

	 	(g)	 	Section 7.12(b) is deleted in its entirety and the following is
inserted in lieu thereof:

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     (b)      Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of
the end of any fiscal quarter of the Borrower to be greater than 3.50 to 1.00;
provided that if, at the end of any fiscal quarter, the Consolidated
Leverage Ratio is greater than 3.50 to 1.00 and the Borrower has entered into a
Permitted Acquisition within such fiscal quarter (a fiscal quarter in which such
conditions are satisfied, a “Trigger Quarter”), then the Consolidated
Leverage Ratio may be greater than 3.50 to 1.00 but shall not exceed 4.00 to 1.00
for such Trigger Quarter and the next succeeding three fiscal quarters;
provided, further, that, following the occurrence of a Trigger
Quarter, no subsequent Trigger Quarter shall be deemed to have occurred or to exist
for any reason unless and until the Consolidated Leverage Ratio is less than or
equal to 3.50 to 1.00 as of the end of any fiscal quarter following the occurrence
of such initial Trigger Quarter.

	 	(h)	 	The existing Schedule 2.01 is deleted it in its entirety and
Schedule 2.01 attached hereto is inserted in lieu thereof.

     2.      Joinder of the Joining Lenders; Funding of Loans with Incremental Commitments.

     (a)      By its execution of this Amendment, each Joining Lender hereby confirms and agrees that,
on and after the date this Amendment becomes effective (the “Amendment Effective Date”), it
shall be and become a party to the Credit Agreement as a Lender, and shall have all of the rights
and be obligated to perform all of the obligations of a Lender thereunder with the Commitment
applicable to such Lender identified on Schedule 2.01 attached hereto. Each Joining Lender
further (i) acknowledges that it has received a copy of the Credit Agreement and the schedules and
exhibits thereto and such other documents and information as it has deemed appropriate to make its
own credit and legal analysis and decision to enter into this Amendment; and (ii) agrees that it
will, independently and without reliance upon the Administrative Agent, the L/C Issuer, any other
Lender or, other than reliance on the representations and warranties set forth herein, in the other
Loan Documents and the deliveries hereunder and thereunder, the Borrower or the Guarantor, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit and legal decisions in taking or not taking action under the Credit Agreement and
the other Loan Documents. On and after the date this Amendment becomes effective, all references
to the “Lenders” in the Credit Agreement shall be deemed to include the Joining Lenders.

     (b)      On the Amendment Effective Date, (i) each Existing Lender that is increasing its
Commitment and each Joining Lender shall make available to the Administrative Agent such amounts in
immediately available funds as the Administrative Agent shall determine, for the benefit of the
other relevant Lenders, as being required in order to cause, after giving effect to such increase
and joinder and the application of such amounts to make payments to such other relevant Existing
Lenders, the outstanding Committed Loans (and risk participations in outstanding Swing Line Loans
and Letter of Credit Exposure) to be held ratably by all Lenders in accordance with their
respective Applicable Percentages (as revised by this Amendment), (ii) the Borrower shall be deemed
to have prepaid and reborrowed the outstanding Committed Loans as of the Amendment Effective Date
to the extent necessary to keep the outstanding Committed Loans ratable with any revised Applicable
Percentages arising from any nonratable increase in

4

 

the Commitments under this Amendment and the joinder of the Joining Lenders, and (iii) the
Borrower shall pay to the relevant Existing Lenders the amounts, if any, required pursuant to
Section 3.05 of the Credit Agreement as a result of such prepayment.

     3.      Effectiveness; Conditions Precedent. The effectiveness of this Amendment and the
amendments to the Credit Agreement herein provided are subject to the satisfaction of the following
conditions precedent:

     (a)      the Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

     (i)      counterparts of this Amendment, duly executed by the Borrower, the
Administrative Agent, the Guarantor, each of the Existing Lenders and each of the
Joining Lenders (which Existing Lenders and Joining Lenders are listed on
Schedule 2.01 attached hereto);

     (ii)      evidence of the existence, good standing, authority and capacity of the
Borrower to execute, deliver and perform its obligations under the Credit Agreement
as amended hereby, including, (x) a true and complete copy of resolutions approving
the amendments contemplated hereby, and (y) a certification that the certificate of
incorporation and by-laws of the Borrower have not been amended or otherwise
modified since the effective date of the Credit Agreement or, in the alternative,
attaching true and complete copies of all amendments and modifications thereto; and

     (iii)      such other documents, instruments, opinions, certifications,
undertakings, further assurances and other matters as the Administrative Agent, the
L/C Issuer or any Lender shall reasonably request;

     (b)      the Borrower shall have paid the fees in the amounts and at the times specified in
the letter agreement, dated as of July 27, 2006, among the Borrower, the Administrative
Agent and BAS (the “Amendment Fee Letter”); and

     (c)      unless waived by the Administrative Agent, all fees and expenses payable to the
Administrative Agent and the Lenders (including the fees and expenses of counsel to the
Administrative Agent to the extent invoiced prior to the date hereof) estimated to date
shall have been paid in full (without prejudice to final settling of accounts for such fees
and expenses).

5

 

     4.      Consent of the Guarantor. The Guarantor hereby consents, acknowledges and agrees
to the amendments set forth herein and hereby confirms and ratifies in all respects the Guaranty
(including without limitation the continuation of the Guarantor’s payment and performance
obligations thereunder upon and after the effectiveness of this Amendment and the amendments
contemplated hereby) and the enforceability of the Guaranty against the Guarantor in accordance
with its terms.

     5.      Representations and Warranties. In order to induce the Administrative Agent, the
Existing Lenders and the Joining Lenders to enter into this Amendment, the Borrower represents and
warrants to the Administrative Agent, the Existing Lenders and the Joining Lenders as follows:

     (a)      Before and after giving effect to this Amendment, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and correct
on and as of the Amendment Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are true and
correct as of such earlier date, and except that the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall
be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement, and (B) no Default exists.

     (b)      Since the date of the most recent financial reports of the Borrower delivered
pursuant to Section 6.01(a) of the Credit Agreement, there has been no event or
circumstance, either individually or in the aggregate, that has had or would reasonably be
expected to have a Material Adverse Effect;

     (c)      The Guarantor is the only Person that is required to be a party to the Guaranty
pursuant to the terms of the Credit Agreement; and

     (d)      This Amendment has been duly authorized, executed and delivered by the Borrower and
the Guarantor and constitutes a legal, valid and binding obligation of such parties, except
as may be limited by general principles of equity or by the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’
rights generally.

     6.      Entire Agreement. This Amendment, together with the Amendment Fee Letter and the
Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and
agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such subject matter. No promise,
condition, representation or warranty, express or implied, not set forth in the Relevant Documents
shall bind any party hereto, and no such party has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except as otherwise
expressly stated in the Relevant Documents, no representations, warranties or commitments, express
or implied, have been made by any party to the other in relation to the subject matter hereof or
thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or
canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the Credit
Agreement.

6

 

     7.      Full Force and Effect of Agreement. Except as hereby specifically amended,
modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed
and ratified in all respects and shall be and remain in full force and effect according to their
respective terms.

     8.      Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Amendment by telecopy shall be effective as a manually
executed counterpart of this Amendment.

     9.      Governing Law. This Amendment shall in all respects be governed by, and construed
in accordance with, the laws of the State of New York applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of
Sections 10.14 and 10.15 of the Credit Agreement.

     10.      Enforceability. Should any one or more of the provisions of this Amendment be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     11.      References. All references in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby.

     12.      Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the Borrower, the Administrative Agent, the Guarantor, the Lenders and their respective
successors, legal representatives, and assignees to the extent such assignees are permitted
assignees as provided in Section 10.06 of the Credit Agreement.

[Signature pages follow.]

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and
delivered by their duly authorized officers as of the day and year first above written.

TREEHOUSE FOODS, INC.:

By: /s/ Dennis F. Riordan

Name: Dennis F. Riordan

Title: Senior Vice President and Chief Financial Officer

GUARANTOR:

BAY VALLEY FOODS, LLC

By: /s/ Thomas E. O’Neill

Name: Thomas E. O’Neill

Title: Senior Vice President

 

 

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

By: /s/ Joan Mok

Name: Joan Mok

Title: Vice President

EXISTING LENDERS:

BANK OF AMERICA, N.A., as a Lender, L/C

Issuer and Swing Line Lender

By: /s/ David L. Catherall

Name: David L. Catherall

Title: Vice President

JPMORGAN CHASE BANK, N.A.

By: /s/ Jason A. Rastovski

Name: Jason A. Rastovski

Title: Vice President

SUNTRUST BANK

By: /s/ Hugh Brown

Name: Hugh Brown

Title: Director

WACHOVIA BANK, NATIONAL ASSOCIATION

By: /s/ Jorge A. Gonzalez

Name: Jorge A. Gonzalez

Title: Managing Director

 

 

COÖPERATIEVE CENTRALE RAIFFEISEN-

BOERENLEENBANK B.A., “RABOBANK

NEDERLAND”, NEW YORK BRANCH

By: /s/ Timothy Devane

Name: Timothy Devane

Title: Executive Director

By: /s/ Brett Delfino

Name: Brett Delfino

Title: Executive Director

LASALLE BANK NATIONAL ASSOCIATION

By: /s/ Rosalie C. Hawley

Name: Rosalie C. Hawley

Title: First Vice President

FARM CREDIT SERVICES OF AMERICA, PCA

By: /s/ Curt Brown

Name: Curt Brown

Title: Vice-President

AGFIRST FARM CREDIT BANK

By: /s/ Steven J. O’Shea

Name: Steven J. O’Shea

Title: Vice President

COBANK, ACB

By: /s/ Porter Little

Name: Porter Little

Title: Vice President

 

 

U.S. AGBANK, FCB

By: /s/ Patrick Zeka

Name: Patrick Zeka

Title: Vice President

NORTHWEST FARM CREDIT SERVICES, PCA

By: /s/ Jim D. Allen

Name: Jim D. Allen

Title: Senior Vice President

FARM CREDIT BANK OF TEXAS

By: /s/ Eric J. Paul

Name: Eric J. Paul

Title: Vice President

THE NORTHERN TRUST COMPANY

By: /s/ Morgan A. Lyons

Name: Morgan A. Lyons

Title: Vice President

HARRIS N.A.

By: /s/ Curtis Flammini

Name: Curtis Flammini

Title: Vice President

 

 

JOINING LENDERS:

1ST FARM CREDIT SERVICES, PCA

By: /s/ Dale A. Richardson

Name: Dale A. Richardson

Title: Vice President, Illinois Capital Markets

FARM CREDIT SERVICES OF MINNESOTA

VALLEY, PCA dba FCS COMMERCIAL

FINANCE GROUP

By: /s/ Daniel J. Best

Name: Daniel J. Best

Title: Commercial Loan Officer

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