Document:

Exhibit 10.1

Execution Copy

STOCK REPURCHASE AND EXCHANGE AGREEMENT

THIS STOCK REPURCHASE AND EXCHANGE AGREEMENT (the “Agreement”),
dated as of May 9, 2007, is by and between B&G FOODS, INC., a Delaware
corporation (the “Company”), and the holders of Class B common stock
listed on Schedule A hereto (each, a “Holder” and collectively,
the “Holders.”)

Background

A.            Each
Holder owns the number of shares listed opposite his, her or its name on Schedule
A (the “Shares”) of the Class B common stock, par value $0.01 per
share, of the Company (the “Class B common stock”).

B.            Each
Holder has requested that the Company (i) repurchase all or a portion of such
Holder’s Shares from the Holder (the “Purchase Shares”) and (ii)
exchange the Holder’s remaining Shares (the “Exchange Shares”) for the
same number of shares of the Class A common stock, par value $0.01 per share,
of the Company (the “Class A common stock”), all as set forth on Schedule
A.

C.            The
Company proposes to sell shares of its Class A common stock in an underwritten
public offering (the “Offering”) and intends to use a portion of the
proceeds from the Offering to repurchase the Purchase Shares.

D.            The
Company and the Holders are parties to the Second Amended and Restated
Securities Holders Agreement, dated as of October 14, 2004 (the “Securities
Holders Agreement”).

E.             The
Company and Bruckmann, Rosser, Sherrill & Co., Inc. (“BRSI”) are
parties to the Amended and Restated Transaction Services Agreement, dated as of
September 30, 2004 (the “Transaction Services Agreement”).

F.             Concurrent
with the Company’s initial public offering of its Enhanced Income Securities in
October 2004, B&G Foods Holdings Corp. merged with and into the Company,
with the Company as survivor of such merger.

G.            The
Company and the Holders desire to terminate the Securities Holders Agreement.

H.            The
Company and BRSI desire to terminate the Transaction Services Agreement.

I.              The
Holders who have requested that the Company repurchase the Purchase Shares from
such Holders (each, a “Selling Holder” and collectively, the “Selling
Holders”) desire to sell their Purchase Shares to the Company and the
Company desires to purchase such Purchase Shares from such Selling Holders upon
the terms and conditions specified herein.

 

 

J.             The
Holders who have requested that the Company exchange the Exchange Shares into
shares of Class A common stock (each, an “Exchanging Holder” and
collectively, the “Exchanging Holders”) desire to exchange their
Exchange Shares for an equal number of shares of Class A common stock and the
Company desires to exchange an equal number of shares of Class A common stock
for the Exchange Shares upon the terms and conditions specified herein.

Terms

NOW, THEREFORE, in consideration of the mutual
representations, warranties and covenants contained herein, and intending to be
legally bound hereby, the parties hereto agree as follows:

1.             Purchase and Sale of the Purchase Shares.  Each Selling Holder agrees to sell to the
Company, and the Company agrees to purchase from each Selling Holder, such
Selling Holder’s Purchase Shares for an aggregate purchase price (the “Purchase
Price”) of the number of Purchase Shares set forth on Schedule A
multiplied by the dollar amount included in the “Per Share” row and the “Proceeds
to B&G Foods” column in the table on the front cover of the final
prospectus supplement to be filed in connection with the Offering (the “Prospectus
Supplement”).

2.             Exchange of the Exchange Shares.  

a.             Each Exchanging Holder agrees to surrender to the
Company its Exchange Shares, and the Company agrees to provide to such
Exchanging Holder the number of shares of Class A common stock equal to the
Exchange Shares surrendered.

b.             Each Exchanging Holder agrees to enter into a lock-up
agreement with the underwriters as described in the Prospectus Supplement
substantially in the form provided to such Exchanging Holder prior to the date
hereof (the “Lock-Up Agreement”) whereby such Exchanging Holder will
agree not to directly or indirectly, offer, sell or otherwise dispose of any
shares of Class A common stock for a period of 180 days from the date of the
Prospectus Supplement.

3.             Closing. 
The purchase and sale of the Purchase Shares and the exchange of the
Exchange Shares for an equal number shares of Class A common stock (the “Closing”)
as well as the payment of all amounts described in Section 1 hereof shall occur
and shall be deemed to have occurred simultaneously in all respects and shall
take place on the date of the consummation of the Offering (the “Closing
Date”), unless another date is agreed to by the parties hereto.  Notwithstanding the foregoing, in the event
that the dollar amount in the “Per Share” row and the “Price to Public” column
in the table on the front cover of the Prospectus Supplement (the “Offering
Price”) is less than $12.00, no party to this Agreement shall be obligated
to consummate the sale or exchange transactions set forth in this Agreement.

4.             Representations and Warranties of the Holders.  Each Holder hereby represents and warrants to
the Company that:

 

 2
 

 

a.             Such
Holder is the sole record and beneficial owner of the Shares listed opposite
his, her or its name on Schedule A, free and clear of any and all liens,
claims, security interests, pledges, charges, equities, options, restrictions
and encumbrances of whatever nature (other than restrictions under the
Securities Act of 1933, as amended, and state securities laws).  Other than this Agreement, there are no
options, warrants, rights, contracts, calls, puts or other agreements or
commitments to which such Holder is a party providing for the acquisition or
disposition of any of the Shares held by such Holder.

b.             This
Agreement and the transactions contemplated hereby have been duly authorized by
all necessary action on the part of such Holder.  Such Holder has the full legal right, power
and authority to enter into this Agreement and to perform such Holder’s
obligations hereunder, without the need for the consent of any other person or
entity other than those consents which have been obtained.

c.             This
Agreement has been duly and validly executed and delivered by such Holder and
constitutes the legal, valid and binding obligation of such Holder, enforceable
against such Holder in accordance with its terms.

d.             Such
Holder has no other present or future right or interest in or to any shares of
Class B common stock, other than such Holder’s ownership of the Shares.

e.             Giving
effect to the Closing, the Company has acquired hereby good and valid title to
such Holder’s Shares, free and clear of any and all liens, claims, security
interests, pledges, charges, equities, options, restrictions and encumbrances.

f.              (1)
Such Holder has reviewed the Registration Statement, the prospectus supplements
and free writing prospectuses, if any, filed by the Company with respect to the
Offering, (2) by reason of his, her or its business and financial experience,
and the business and financial experience of his, her or its advisors, together
with such advisers, such Holder has such knowledge, sophistication and
experience in business and financial matters as to be capable of evaluating the
merits and risks of the sale and/or exchange of the Shares, and (3) such Holder
believes he, she or it has reviewed sufficient information about the Company
and the Offering to enable such Holder to make an informed decision with
respect to his, her or its sale and/or exchange of the Shares.

g.             Such
Holder acknowledges that (1) the issuance of any shares of Class A common stock
to be exchanged for the Exchange Shares will be made pursuant to an exemption
from the registration requirements of Section 5 of the Securities Act of 1933,
(2) any further sale or transfer of the shares of Class A common stock to be
exchanged for the Exchange Shares will be subject to the registration
requirements of the Securities Act of 1933 or an exemption therefrom and (3) at
the Closing, the shares of Class A common stock exchanged for the Exchange
Shares will contain a restrictive legend.

h.             Such
Holder is not making any other representations, express or implied, with respect
to such Holder, the Shares or the transactions contemplated hereby, except as
otherwise set forth in this Section 4.

 3

5.             Representations
and Warranties of the Company.  The
Company hereby represents and warrants to the Holders that:

a.             Giving
effect to the Closing, the Exchanging Holders have acquired hereby good and
valid title to the shares of Class A common stock issuable upon tender of the
Exchange Shares, free and clear of any and all liens, claims, security
interests, pledges, charges, equities, options, restrictions and encumbrances,
except for restrictions under the federal securities laws.  The Class A common stock issuable upon tender
of the Exchange Shares has been duly reserved for issuance by the Company.

b.             This
Agreement and the transactions contemplated hereby have been duly authorized by
all necessary action on the part of the Company.  The Company has the full legal right, power
and authority to enter into this Agreement and to perform the Company’s
obligations hereunder, without the need for the consent of any other person or
entity other than those consents which have been obtained.

c.             This
Agreement has been duly and validly executed and delivered by the Company and
constitutes the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms.

d.             The
Company is not making any other representations, express or implied, with
respect to the Company, the shares of Class A common stock to be issued
hereunder or the transactions contemplated hereby, except as otherwise set
forth in this Section 5.

6.             Conditions
of the Company’s Obligations at Closing. 
The obligations of the Company under Section 1 and Section 2 of this
Agreement are subject to the fulfillment on or before the Closing of each of
the following conditions:

a.             Consummation
of the Offering.  The Offering shall
have consummated with an Offering Price of at least $12.00.

b.             Representations
and Warranties.  The representations
and warranties of each Holder contained in Section 4 shall be true on and as of
the Closing with the same effect as though such representations and warranties
had been made on and as of the date of such Closing.

c.             Share
Certificates.  The Company shall have
received from each Holder one business day prior to the Closing Date either one
or more certificates evidencing such Holder’s Shares, accompanied by a stock
power duly executed in blank, or a certification of lost certificate(s) and
indemnification.

d.             Wire
Transfer Instructions.  At least two
(2) days prior to the Closing, each Holder shall have designated in writing to
the Company the account to which his, her or its respective payment set forth
in Section 1 shall be made.

 4
 

 

e.             Listing.  The Class A common stock shall have been
approved for listing on the New York Stock Exchange or any other national
securities exchange, subject only to official notice of issuance.

f.              Lock-Up
Agreement.  Each Exchanging Holder
shall have delivered an executed Lock-Up Agreement to the Company one business
day prior to the Closing Date.

7.             Conditions
of each Holder’s Obligations at Closing. 
The obligations of each Holder under Section 1 and Section 2 of this
Agreement are subject to the fulfillment on or before the Closing of each of
the following conditions:

a.             Consummation
of the Offering.  The Offering shall
have consummated with an Offering Price of at least $12.00.

b.             Representations
and Warranties.  The representations
and warranties of the Company contained in Section 5 shall be true on and as of
the Closing with the same effect as though such representations and warranties
had been made on and as of the Closing.

c.             Delivery
of the Purchase Price or Shares of Class A Common Stock.

(1)           The
Company shall have delivered to each Selling Holder the Purchase Price and the
Company shall collectively have acquired and paid for each Selling Holders’
Purchase Shares at the Closing.

(2)           The
Company shall have delivered to each Exchanging Holder the number of shares of
Class A common stock equal to the Exchange Shares of such Exchanging Holder.

d.             Listing.  The Class A common stock shall have been
approved for listing on the New York Stock Exchange or any other national
securities exchange, subject only to official notice of issuance.

8.             Termination
of Agreements.  Concurrently with the
Closing, the Securities Holders Agreement (including the registration rights
contained therein) and the Transaction Services Agreement shall each terminate
and be of no further force and effect.

9.             Indemnification.  Each Holder shall indemnify, defend, save and
hold harmless the Company and its successors and assigns from and against any
and all damages, claims, losses, liability, demands, fines, judgments, and fees
(including reasonable attorneys’ fees) arising from or relating to such Holder’s
breach of any representation, warranty or covenant contained herein.

10.           Notices,
etc.          All notices, requests,
demands and other communications hereunder shall be deemed to have been duly
given if delivered in person or by electronic facsimile or mailed, certified or
registered mail with postage prepaid or by overnight courier:

 5
 

 

	
  

  	
  If to the Company, to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B&G Foods,
  Inc.

  	
   

  
	
   

  	
   

  	
  Four Gatehall
  Drive, Suite 110

  	
   

  
	
   

  	
   

  	
  Parsippany, NJ 07054

  
	
   

  	
   

  	
  Attention:

  	
  Scott E. Lerner

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President,

  
	
   

  	
   

  	
   

  	
  General Counsel
  and Secretary

  
	
   

  	
   

  	
  Facsimile:

  	
  (973) 630-6550

  
					

 

If to
a Holder, to the address set forth in the books and records of the transfer
agent for the Company’s Class B common stock.

11.           Survival of Representations and Warranties; Limitation
of Actions.  All representations and
warranties contained herein and in any certificate, documentation or agreement
delivered pursuant hereto shall survive the execution and delivery of this
Agreement, the sale of the Purchase Shares and payment therefor and the
exchange of Class A common stock for the Exchange Shares, as provided for in
this Agreement.

12.           Termination.  This Agreement may be terminated at any time
prior to the Closing by the Holders or the Company if the Offering shall not
have been consummated prior to July 31, 2007.

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

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

15.           No
Third-Party Beneficiaries; Assignment. 
This Agreement is for the sole benefit of and binding upon the parties
hereto and their permitted successors and assigns and nothing herein, express
or implied, is intended to or shall confer upon any other person or entity any
legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement.  This
Agreement shall be binding upon the parties hereto and their respective successors
and permitted assigns, and shall inure to the benefit of and be enforceable by
the parties hereof and their respective successors and permitted assigns.  No party may assign either this Agreement or
any of his or its rights, interests or obligations hereunder without the prior
written consent of the other parties hereto.

16.           Fees
and Expenses.  The parties hereby
agree that each of the parties hereto shall bear its fees and expenses incurred
in connection with this Agreement, including without limitation all legal and
accounting fees and expenses.

 6
 

 

17.           Amendment;
Waiver.  This Agreement may be
amended or modified only by an instrument in writing signed by the parties
hereto.  No failure or delay on the part
of any of the parties hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.

18.           Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and shall supersede all previous negotiations and
writings with respect to such subject matter.

19.           Counterparts.  This Agreement may be executed in two or more
counterparts by facsimile signature, and with counterpart signature pages, each
of which shall be an original, but all of which together shall constitute one
Agreement.

[Signature
pages follow]

 

 7

 

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

	
  

  	
  B&G FOODS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  
	
   

  	
   

  	
  Name:

  	
  Robert C. Cantwell

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
  By: 

  	
  BRS Partners, Limited Partnership, the general
  partner

  
	
   

  	
  By: 

  	
  BRSE Associates, Inc., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen C. Sherrill

  
	
   

  	
  Name:

  	
  Stephen C. Sherrill

  
	
   

  	
  Title: 

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MORNING STREET PARTNERS, L.P.

  
	
   

  	
  By: 

  	
  Morning Street Associates, LLC, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Misir

  
	
   

  	
  Name:

  	
  Paul Misir

  
	
   

  	
  Title: 

  	
  Managing Partner

  
	
   

  	
   

  
	
   

  	
  PROTOSTAR EQUITY PARTNERS, L.P.

  
	
   

  	
  By: 

  	
  Protostar Equity Advisors, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph Haviv

  
	
   

  	
  Name: 

  	
  Joseph Haviv

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Bruce C. Bruckmann

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Harold O. Rosser II

  
	
   

  	
   

  
	
   

  	
  /s/ Stephen C. Sherrill

  
	
   

  	
  Stephen C. Sherrill

  
							

 

 

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Polly Bruckmann for Estate of Donald Bruckmann

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Thomas J. Baldwin

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  H. Virgil Sherrill

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Nancy Zweng

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Paul D. Kaminski

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Polly Bruckmann

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Elizabeth McShane

  
	
   

  	
   

  
	
   

  	
  *

  
	
   

  	
  Beverly Place

  
	
   

  	
   

  
	
   

  	
  BCB PARTNERSHIP

  
	
   

  	
  By: 

  	
  Bruce C. Bruckmann, General Partner

  
	
   

  	
  By:

  	
  *

  
	
   

  	
  Name: 

  	
  Bruce C. Bruckmann

  
	
   

  	
  Title: 

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NAZ PARTNERSHIP

  
	
   

  	
  By: 

  	
  Nancy Zweng, General Partner

  
	
   

  	
  By:

  	
  *

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IRA FBO PAUL D. KAMINSKI

  
	
   

  	
  DB Securities Inc., as Custodian

  
	
   

  	
  By: 

  	
  Paul D. Kaminski

  
	
   

  	
  By:

  	
  *

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  *By:

  	
  /s/ Stephen C. Sherrill

  
	
   

  	
  Stephen C. Sherrill

  
	
   

  	
  Attorney-in-Fact

  
								

 

 

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Ellen S. Polaner

  
	
   

  	
  Ellen Polaner as trustee under the indenture for

  
	
   

  	
  Leonard Polaner dated March 9, 1998

  
	
   

  	
  for the benefit of Steven Polaner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ellen S. Polaner

  
	
   

  	
  Ellen Polaner as trustee under the indenture for

  
	
   

  	
  Leonard Polaner dated March 9, 1998

  
	
   

  	
  for the benefit of Doug Polaner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ellen S. Polaner

  
	
   

  	
  Ellen Polaner as trustee under the indenture for

  
	
   

  	
  Leonard Polaner dated March 9, 1998

  
	
   

  	
  for the benefit of Max Polaner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ David L. Wenner

  
	
   

  	
  David L. Wenner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert C. Cantwell

  
	
   

  	
  Robert C. Cantwell

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ James Brown

  
	
   

  	
  James Brown

  
	
   

  	
   

  
	
   

  	
  /s/ David Burke

  
	
   

  	
  David Burke

  
	
   

  	
   

  
	
   

  	
  /s/ Albert Soricelli

  
	
   

  	
  Albert Soricelli

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Solely for purposes of terminating the Transaction
  Services Agreement:

  
	
   

  	
   

  
	
   

  	
  BRUCKMANN, ROSSER, SHERRILL & CO., INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen C. Sherrill

  
	
   

  	
  Name: 

  	
  Stephen C. Sherrill

  
	
   

  	
  Title: 

  	
  Managing Director

  
						

 

 

Schedule A

SELLING HOLDERS

	
  Name

  	
   

  	
   

  	
   

  	
  Purchase

  Shares

  	
   

  
	
  Bruckmann,
  Rosser, Sherrill & Co., L.P.

  	
   

  	
  5,196,166

  	
   

  
	
  Bruce C.
  Bruckmann

  	
   

  	
  105,219

  	
   

  
	
  Harold O. Rosser
  II

  	
   

  	
  21,139

  	
   

  
	
  Stephen C.
  Sherrill

  	
   

  	
  108,514

  	
   

  
	
  H. Virgil
  Sherrill

  	
   

  	
  70,453

  	
   

  
	
  Nancy Zweng

  	
   

  	
  4,229

  	
   

  
	
  BCB Partnership

  	
   

  	
  6,061

  	
   

  
	
  NAZ Partnership

  	
   

  	
  2,925

  	
   

  
	
  Paul D. Kaminski

  	
   

  	
  5,122

  	
   

  
	
  IRA FBO Paul
  Kaminski, DB Securities Inc. as Custodian

  	
   

  	
  5,122

  	
   

  
	
  Elizabeth
  McShane

  	
   

  	
  1,647

  	
   

  
	
  Beverly Place

  	
   

  	
  1,647

  	
   

  
	
  Polly Bruckmann

  	
   

  	
  14,090

  	
   

  
	
  Morning Street
  Partners, L.P.

  	
   

  	
  546,295

  	
   

  
	
  Protostar Equity
  Partners, L.P.

  	
   

  	
  182,098

  	
   

  
	
  David L. Wenner

  	
   

  	
  76,917

  	
   

  
	
  Robert C.
  Cantwell

  	
   

  	
  76,917

  	
   

  
	
  James H. Brown

  	
   

  	
  76,917

  	
   

  
	
  David H. Burke

  	
   

  	
  107,143

  	
   

  
	
  Albert J.
  Soricelli

  	
   

  	
  76,917

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Steven Polaner

  	
   

  	
  25,639

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Doug Polaner

  	
   

  	
  25,639

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Max Polaner

  	
   

  	
  25,639

  	
   

  
	
  Total

  	
   

  	
  6,762,455

  	
   

  

 

 

EXCHANGING HOLDERS

	
  Name

  	
   

  	
   

  	
   

  	
  Exchange

  Shares

  	
   

  
	
  David L. Wenner

  	
   

  	
  137,369

  	
   

  
	
  Robert C.
  Cantwell

  	
   

  	
  137,369

  	
   

  
	
  James H. Brown

  	
   

  	
  137,369

  	
   

  
	
  David H. Burke

  	
   

  	
  107,143

  	
   

  
	
  Albert J.
  Soricelli

  	
   

  	
  137,369

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Steven Polaner

  	
   

  	
  45,789

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Doug Polaner

  	
   

  	
  45,790

  	
   

  
	
  Ellen Polaner as
  trustee under the indenture for Leonard Polaner dated 

  March 9, 1998 for the benefit of Max Polaner

  	
   

  	
  45,790

  	
   

  
	
  Total

  	
   

  	
  793,988Exhibit 10.1

May 10, 2007

Dr. Ron
Cohen

15
Skyline Drive

Hawthorne,
NY 10532

Re:   Amendment to August 11, 2002,
Employment Agreement

Dear Ron:

This letter serves
as an amendment to your letter agreement, dated August 11, 2002, and
amended September 26, 2005, with Acorda Therapeutics, Inc. (the
“Agreement”), in accordance with paragraph 9(b) of the Agreement.
Specifically, the Agreement is amended as follows, effective May 10, 2007:

1.     Vacation.   Paragraph 4(b) is amended to provide
for paid vacation in accordance with the Company’s vacation policy for senior
managers (as that policy may be amended from time to time).

2.     Equity Compensation.   Paragraph 5 is amended to provide
that you will be eligible to receive annual Options, SARs, and/or Stock Awards
under the Acorda Therapeutics, Inc. 2006 Employee Incentive Plan, as
amended (in addition to the Acorda Therapeutics, Inc. 1999 Employee Stock
Option Plan).

3.     Exercise of Options after Death or Disability.   Paragraph
6(b)(iii) is amended to read in its entirety:

(iii)  65% of all
unvested Options, SARs, and other Stock Awards shall become immediately vested,
and all vested Options and SARs shall remain exercisable by you or your estate,
as the case may be, for 48 months following the termination date, provided,
however, that no Option or SAR will be exercisable after the earlier of the
latest date upon which the Option or SAR could have expired by its original
terms under any circumstances (as determined under section 409A of the Internal
Revenue Code (the “Code”)) or the 10th anniversary of the original date of
grant.

4.     Termination Without Cause or With Good Reason.   To
comply with Section 409A of the Internal Revenue Code, paragraph
6(c)(iv) of the Agreement is amended to read in its entirety as follows:

(iv)  All Options,
SARs, and other Stock Awards granted to you hereunder or under any other
agreement shall become immediately and fully vested as of the termination date,
and all vested Options and SARs shall remain exercisable for 48 months
following such date, provided,
however, that no Option or SAR will be exercisable after the earlier of the
latest date upon which the Option or SAR could have expired by its original
terms under any circumstances (as determined under section 409A of the Code or
the 10th anniversary of the original date of grant.

5.     Termination With Cause or Without Good Reason.   To
comply with Section 409A of the Internal Revenue Code, paragraph
6(d) is amended to read in its entirety as follows:

(d)   Termination of Your Employment by the Company With Cause or by You
Without Good Reason.   The Company may terminate your employment
with Cause or you may resign without Good Reason at any time. In such case, you
shall be paid all amounts due for services rendered under this Agreement up
until the termination date, and payment shall be made at the time of the
Company’s standard payroll for the pay period that includes the date of
termination of your employment. Thereafter, no further payments shall be made
to you under this Agreement. All stock options granted to you hereunder or
under any other agreement that are fully vested as of the date of your
termination shall remain exercisable for ninety (90) days from the termination
date. If you dispute the grounds for your termination, your vested options will
remain exercisable until ninety (90) days after the date the dispute is
resolved. All unvested options shall be forfeited. Notwithstanding the
foregoing, no stock option will be exercisable after the earlier of the latest
date upon which the stock 

option could have expired
by its original terms under any circumstances (as determined under section 409A
of the Code) or the 10th anniversary of the original date of grant.

6.     Good Reason.   Paragraph 6(f) is amended to read in
its entirety as follows:

(f)    Good Reason.   As used herein, “Good Reason” means:

(i)    a material
diminution in the your base salary;

(ii)   a material
diminution in your authority, duties, or responsibilities;

(iii)  a requirement
that you report to a corporate officer or employee of the Company instead of
reporting directly to the Board of Directors of the Company;

(iv)  a material
diminution in the budget over which you retain authority;

(v)    a material
change in the geographic location at which you must perform the services; and

(vi)  any other
action or inaction that constitutes a material breach by the Company of this
Agreement.

Termination for
Good Reason may occur only if (A) you give the Board of Directors of the
Company notice within 90 days of the initial existence of the condition on
which Good Reason is based, (B) the Company does not cure the condition
within 30 days of receiving such notice, and (C) you terminate within two
years following the initial existence of the condition.

7.     Change in Control.   The following two sentences are
added to the end of paragraph 7(a):

Notwithstanding the
previous sentence, in the event of a “reorganization event” (as defined in the
Acorda Therapeutics, Inc. 2006 Employee Incentive Plan (the “2006 Plan”),
each of your then outstanding “awards” (as defined under the 2006 Plan) that
were issued under the 2006 Plan, excluding grants of restricted stock as to
which you elected at the time of grant not to have such acceleration applied,
shall, immediately prior to such reorganization event, become exercisable in
full (or free from restrictions, if applicable). The preceding sentence shall
apply regardless of whether a Change in Control occurs before, after, or in
connection with such “reorganization event,” and regardless of whether any
other provision of this Agreement would provide or has provided only partial
vesting of an award.

8.     Termination After a Change in Control.   Section 7(b)(iv) is
amended to read in its entirety as follows:

(iv)  To the
extent that the last two sentences of Section 7(a) do not apply
and/or your Options, SARs, and other Stock Awards have not fully vested under
Section 7(a) or otherwise at the time of the termination of your
employment, 65% of all outstanding Options, SARs, and other Stock Awards shall
vest as of the termination date and all vested Options and SARs shall remain
exercisable for 48 months following such date, provided, however, that no
Option or SAR will be exercisable after the earlier of the latest date upon
which the Option or SAR could have expired by its original terms under any
circumstances (as determined under section 409A of the Code) or the 10th
anniversary of the original date of grant.

9.     Termination After a Change in Control.   To comply with
Section 409A of the Internal Revenue Code, a new paragraph 7(b)(v) is
added to the Agreement to read in its entirety as follows:

(v)   Notwithstanding
the foregoing:  (A) payment of base
salary pursuant to subsection (i) above shall be paid at the time of the
Company’s standard payroll, except that any payment that otherwise would be
made in the first six months following your termination of employment shall be
made in the seventh month following your termination of employment;
(B) the bonus described in subsection (ii) above shall be paid 

 2
 

in the seventh month
following your termination; (C) notwithstanding paragraph (iv), no stock
option or stock appreciation right will be exercisable after the earlier of the
latest date upon which the award could have expired by its original terms under
any circumstances (as determined under section 409A of the Code) or the 10th
anniversary of the original date of grant.

10.   Compliance with Section 409A.   To comply with
Section 409A of the Internal Revenue Code, a new paragraph 9(i) is
added to the Agreement to read in its entirety as follows:

(i)    Compliance with Section 409A.   Any payment under
this Agreement that is subject to Section 409A and is contingent upon
termination of your employment shall be payable only if such termination
qualifies as a “separation from service” within the meaning of
Section 409A, and regulations promulgated thereunder. However, it is your
obligation to pay all required taxes (including any additional taxes under
Section 409A) on any payments provided under this Agreement.

Except
as provided in this letter, the Agreement remains in full force and effect. If
this amendment is acceptable, please sign and date the copy of this letter
provided herewith and return it to me at your earliest convenience.

	
   

  	
  Sincerely,

  
	
   

  	
  Acorda
  Therapeutics, Inc.

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  David Lawrence

  
	
   

  	
  Chief Financial Officer

  
	
   

  	
  Agreed to and
  Accepted:

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Dr. Ron Cohen

  
	
   

  	
  DATE:

  	
   

  	
   

  
					

 

 3

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