Document:

exv10w15

 

Exhibit 10.15

IBC SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(EFFECTIVE JUNE 6, 2002)

(AMENDED FEBRUARY 3, 2004)

(AMENDED AND RESTATED NOVEMBER 11, 2004)

 

 

ARTICLE I

ESTABLISHMENT AND PURPOSE

     1.1 Establishment. Effective as of June 2, 2002, Interstate Bakeries Corporation, a
Delaware corporation, hereby establishes the IBC Supplemental Executive Retirement Plan (the “IBC
SERP”). The IBC SERP is intended to provide a supplemental executive retirement plan benefit
(“SERP Benefit”) in accordance with the provisions hereof for certain key employees and positions
of the Employer.

     1.2 Purpose. This nonqualified IBC SERP is subject to amendment or termination at any
time. The IBC SERP is an unfunded, non-tax-qualified mechanism which may be used to enhance the
Employer’s ability to retain the services of certain Employees. The IBC SERP is intended to be an
unfunded plan for a select group of management or highly compensated employees as defined in
Section 201(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

     The IBC SERP is designed to provide SERP Benefits for certain Employees who, on or after June
2, 2002, terminate employment with the Employer on account of Retirement, Total and Permanent
Disability or death, pursuant to the terms and conditions herein. The SERP Benefit is a pension
annuity payable for the life of the Participant or, if the Participant is married and so elects,
for the joint lives of the Participant and his Spouse.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

     2.1 Definitions. Whenever the following terms are used in this IBC SERP, they shall
have the meanings set forth below unless the context otherwise requires, and when the defined
meaning is intended herein, the first letter of each word comprising the term will be capitalized.

     (a) Actuarial Equivalent shall mean for purposes of calculating a joint and
survivor annuity hereunder, a monthly amount of equivalent value to another monthly amount
determined using the following actuarial assumptions (or such other assumptions as may be
adopted by the Administrator from time to time upon the recommendation of the Company’s
outside actuary):

Interest: 7%

Mortality: the GAM 83 mortality table, blended 50% male/50% female

     (b) Cause shall mean (i) dishonesty by an Employee which results in direct or
indirect enrichment to the Employee at the expense of the Employer or (ii) a willful
violation of the Employee’s obligations to the Employer which results in a material injury
to the Employer or is intended to result in material injury to the Employer. In the event
the Employer terminates an Employee for Cause, the Employer shall so notify the Employee of
that fact in writing at the time of the termination, specifying the acts or

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conduct claimed to constitute such Cause.

     (c) Chief Executive Officer shall mean the Chief Executive Officer of
Interstate Bakeries Corporation.

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

     (e) Company means Interstate Bakeries Corporation, a Delaware corporation, or
its successor.

     (f) Compensation Committee means the Compensation Committee of the Company’s
Board of Directors.

     (g) Earnings means base salary for services for the Employer (other than such
items as bonuses, other incentive compensation and pay for accrued and/or earned but unused
vacation) payable by the Employer to the Employee in cash, but before reduction for amounts
voluntarily deferred by the Employee pursuant to the Interstate Brands Companies Retirement
Income Plan, the IBC Non-Qualified Deferred Compensation Plan and the Employer’s Code
Section 125 cafeteria plan. In the case of Total and Permanent Disability, “Earnings” shall
include payments to the Employee under the Employer’s Salary Continuation Policy. The Plan
Administrator shall determine whether a particular item of income constitutes Earnings if a
question arises.

     (h) Effective Date shall be June 2, 2002.

     (i) Employee means any corporate officer or senior management employee of the
Employer.

     (j) Employer means the Company and such other employers authorized by the
Compensation Committee, as listed on Schedule B.

     (k) Final Average Earnings means the annual average of the Employee’s Earnings
during the consecutive sixty (60) months (or if the Employee’s period of employment with the
Employer is less than sixty (60) consecutive months, the annual average of the Employee’s
Earnings over his entire period of employment) immediately preceding (i) in the case of
Retirement or death, the Employee’s Retirement or death or (ii) in the case of Total and
Permanent Disability, the last day the Employee received pay under the Employer’s Salary
Continuation policy.

     (l) Participant means an Employee who (i) is eligible to participate pursuant
to Section 3.1 (Participation) hereof and (ii) is not ineligible to participate pursuant to
Section 3.2 (Ineligible Employees).

     (m) Pension Benefit Amount means an annual single life pension annuity benefit,
calculated as follows:

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     1.80% of a Participant’s Final Average Earnings multiplied by his Years of Credited
Service up to twenty (20) years.

     (n) Plan Administrator is defined in Section 5.1.

     (o) Retirement shall mean retirement by a Participant who retires on or after
his Retirement Age.

     (p) Retirement Age means age sixty (60).

     (q) Retirement Date shall be a date which is the first day of the month that
falls on or after the date of Retirement.

     (r) Spouse means the spouse of a Participant who is legally married to the
Participant on the date of the earlier to occur of the Participant’s Retirement, Total and
Permanent Disability or death.

     (s) Total and Permanent Disability or Totally and Permanently Disabled
means a physical or mental disability for which the Participant qualifies for long-term
disability benefits under the Employer’s then existing group long-term disability insurance
policy or for which the Participant would qualify for long-term disability benefits if the
Participant were covered by such policy.

     (t) Years of Credited Service shall mean an Employee’s number of years (and the
fraction thereof) of full-time employment with the Employer as reflected on the Employer’s
records, including (i) years (and the fraction thereof) of such full-time employment prior
to the Effective Date of the IBC SERP and (ii) years (and the fraction thereof) of an
Employee’s full-time employment with an entity that was acquired by the Company where
immediately following such acquisition the Company is in control of such acquired entity.
For purposes of the immediately preceding sentence, a “year of full-time employment” means
each 12-month period measured from the Employee’s employment commencement date with the
Employer (or, if earlier, from the Employee’s employment commencement date with an acquired
entity referred to in the immediately preceding sentence) during which an Employee is
continuously reflected as an active full-time employee on the Employer’s records, and
“control” means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of an entity, whether through the ownership of
voting securities, by contract, or otherwise. For purposes of determining an Employee’s
Years of Credited Service under this Section 2.1(t), the bridging of service policy adopted
by the Employer from time to time shall apply whenever the Employee has a break in service
with the Employer that is bridged under such policy. Further, in the event that after the
Effective Date the Compensation Committee removes an Employee, salary grade or position from
Schedule A, or the Employee is removed from any salary grade or position on Schedule A, then
unless otherwise provided on Schedule A, the Years of Credited Service and Final Average
Earnings shall only be recognized for purposes of this IBC SERP through the date of removal.
If the Employee whose name is removed from Schedule A or who is removed

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from a salary grade or position on Schedule A, or whose salary grade or position is
removed from Schedule A, is subsequently placed in a salary grade or position on Schedule A
or whose name or then current salary grade or position is added or restored to Schedule A,
that Employee’s Years of Credited Service and Final Average Earnings shall be recognized for
purposes of this IBC SERP as if the Employee or the Employee’s salary grade or position had
never been removed from Schedule A, or the Employee had never been removed from a salary
grade or position on Schedule A.

     2.2 Gender or Number. Except when otherwise indicated by the context, any reference
to the masculine gender shall also include the feminine gender, or vice versa, and the definition
of any term in the singular shall also include the plural, or vice versa.

     2.3 Severability. In the event that any provision of the IBC SERP shall be held
invalid or illegal for any reason, any illegality or invalidity shall not affect the remaining
parts of the IBC SERP, but the IBC SERP shall be construed and enforced as if the illegal or
invalid provision had never been inserted. The Compensation Committee shall have the right and
opportunity to correct and remedy such questions of illegality or invalidity by amendment as
provided herein.

     2.4 Applicable Law. To the extent not controlled by the laws of the United States of
America, this IBC SERP shall be governed and construed in accordance with the laws of the State of
Missouri.

     2.5 Contractual Obligations. The IBC SERP is not an employment contract. It does not
give to any person any rights to continued employment with the Employer. The IBC SERP does not
give any person any rights to gain or to maintain eligibility to participate in the IBC SERP at his
Retirement Date or any other date. All Employees remain subject at all times to change of
responsibility level, including, but not limited to, change of job, change of salary, transfer,
discipline, layoff, discharge and any other change of employment status without regard for the
impact that any change in employment status might have upon an Employee’s eligibility to be a
Participant in the IBC SERP.

ARTICLE III

PARTICIPATION

     3.1 Participation. After the Effective Date, to become a Participant, the following
requirements of this Section 3.1 must be simultaneously satisfied by any Employee. The Employee
must:

     (a) be designated as a Participant by the Compensation Committee by name, by salary
grade or by position and listed on the attached Schedule A, as amended from time to time at
the discretion of the Compensation Committee;

     (b) be in the active employment of the Employer immediately prior to his Retirement
Date or, if the Employee has accrued twenty (20) Years of Credited Service, be in active
employment with the Employer immediately prior to his death or the date he commences his
final disability leave which immediately precedes the subsequent

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determination that he is Totally and Permanently Disabled; and

     (c) except in the case of a Death Benefit provided under Section 4.3, have executed any
nondisclosure agreement, release or such other agreements or documents that the Plan
Administrator may require as a condition for eligibility to receive a SERP Benefit.

     Notwithstanding anything herein to the contrary, no SERP Benefit shall, except as otherwise
provided in Section 4.8(b), be payable to any Employee so long as such Employee continues in active
employment. Further, in the event that an Employee’s name, salary grade or position is removed
from Schedule A or the Employee is removed from a salary grade or position on Schedule A, such
Employee, if he or she satisfies the requirements of (b) and (c) above, shall become a Participant
and shall be credited with Years of Credited Service and Final Average Earnings to the extent
provided in the second to last sentence of Section 2.1(t).

     3.2 Ineligible Employees.

     (a) No person who has retired from the Employer prior to the Effective Date shall be
eligible to be a Participant in the IBC SERP or to receive a SERP Benefit.

     (b) Except as provided in Sections 4.3 and 4.4, no Participant shall vest in a SERP
Benefit until the date provided in Section 4.7. No Employee, except as otherwise provided
in Section 4.8, may grow into eligibility for a SERP Benefit after his employment with the
Employer is terminated.

     (c) Notwithstanding an Employee’s satisfaction of the requirements for participation
herein, such Employee may nevertheless be deemed to be ineligible to participate or to
continue to participate in the IBC SERP and such Employee and his Spouse, if any, may be
denied benefits hereunder if, upon consideration of the facts and circumstances and any
advice or recommendation of the Employer, the Compensation Committee determines that such
Employee’s employment has been terminated for Cause or such Employee during employment or
following termination of employment has:

     (i) violated any material written Employer policies or agreement with the
Employer, or

     (ii) committed a felony or other major offense related in any manner to the
Employee’s employment with the Employer.

ARTICLE IV

SERP BENEFIT AND PAYMENT

     4.1 Form of Benefit. The IBC SERP has been created to provide certain Employees with
a specified level of pension annuity benefits.

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     4.2 SERP Benefit at Retirement.

     (a) The SERP Benefit payable to a Participant at Retirement (the “Retirement Benefit”)
is a monthly amount equal to one-twelfth of the Pension Benefit Amount and is payable on the
first day of each month, beginning on the Participant’s Retirement Date, and continuing
monthly thereafter for the remainder of the Participant’s lifetime, provided that if the
Participant dies before receiving 300 monthly payments, monthly payments in the same amount
shall continue to be made to his Spouse, if any, until the earlier of the Spouse’s death or
when a total of 300 monthly payments have been made to the Participant and his Spouse in the
aggregate.

     (b) In lieu of the monthly Retirement Benefit payable under Section 4.2(a), the
Participant, if he is legally married on his Retirement Date, may elect to receive an
adjusted Retirement Benefit payable as a monthly joint and survivor annuity to the
Participant for his lifetime and, in the event he predeceases his Spouse, payable to such
Spouse for the remainder of the Spouse’s lifetime. The monthly amount of such annuity
payments to the Participant will equal the Actuarial Equivalent of one-twelfth of the
Pension Benefit Amount which would have been paid to the Participant if he had not elected
this option. The survivor percentage elected can be 50% or 100%. Accordingly, the monthly
amount of annuity payments to the Spouse will equal 50% or 100% of the monthly joint and
survivor annuity payments payable to the Participant, depending on the Participant’s
election. The Participant must make an election to receive this joint and survivor annuity
benefit (i) within sixty (60) days prior to his Retirement Date and (ii) in accordance with
procedures established by the Plan Administrator.

     (c) Notwithstanding anything herein to the contrary, the amount of the Retirement
Benefit calculated under Section 4.2(a) or 4.2(b), as the case may be, shall not be
actuarially increased on the basis of the Participant’s age where the Participant retires
after his Retirement Age.

     4.3 Death Benefit.

     (a) If a Participant who has reached his Retirement Age, or who has accrued twenty (20)
Years of Credited Service, dies prior to termination of employment with the Employer, his
Spouse, if any, shall be entitled to a monthly death benefit (the “Death Benefit”) equal to
one-twelfth of the Pension Benefit Amount. Payment of a Death Benefit will commence on the
first day of the month immediately following the date on which the Participant would have
attained Retirement Age or if the Participant had attained Retirement Age prior to his
death, payment will commence on the first day of the month immediately following the
Participant’s death. Payment of a Death Benefit to the Spouse will terminate upon the
Spouse’s death or when a total of 300 monthly payments have been made to the Spouse,
whichever occurs first.

     (b) Notwithstanding any provision herein to the contrary, the Death Benefit provided
under Section 4.3(a) shall not be actuarially increased on the basis of the Participant’s
age where the Participant dies after his Retirement Age.

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     4.4 Disability Benefit.

     (a) If a Participant with twenty (20) Years of Credited Service terminates employment
with the Employer prior to attaining his Retirement Age due to Total and Permanent
Disability and remains Totally and Permanently Disabled until Retirement Age, the
Participant shall be entitled to a monthly disability benefit (the “Disability Benefit”)
equal to one-twelfth of the Pension Benefit Amount. Such Disability Benefit shall commence
on the first day of the month immediately following the date on which the Participant would
have attained Retirement Age and shall continue monthly thereafter for the remainder of the
Participant’s lifetime, provided that if the Participant dies before receiving 300 monthly
payments, monthly payments in the same amount shall continue to be made to his Spouse, if
any, until the earlier of the Spouse’s death or when a total of 300 monthly payments have
been made to the Participant and his Spouse in the aggregate.

     (b) In lieu of the Disability Benefit set forth in Section 4.4(a) above, a Participant
with a Spouse may elect to receive an adjusted Disability Benefit calculated and payable in
the same manner set forth in Section 4.2(b) above. The Participant must make an election to
receive this joint and survivor Disability Benefit (i) within sixty (60) days prior to his
attainment of Retirement Age and (ii) in accordance with procedures established by the Plan
Administrator.

     (c) If a Participant who is entitled to a Disability Benefit dies prior to his
Retirement Age, his Spouse (if still married to the Participant on the date of the
Participant’s death) if any, shall receive the Death Benefit provided under Section 4.3(a).

     4.5 Reduction, Suspension or Elimination of Benefits. The Compensation Committee, in
its sole discretion, may at any time reduce, suspend or eliminate any SERP Benefit otherwise
payable to a Participant or Spouse, if the Participant has acted or failed to act in one or more of
the ways specified in Section 3.2(c) (Ineligible Employees). Any such reduction, suspension or
elimination of SERP Benefits payable hereunder to a Participant shall automatically apply to any
Death Benefit or survivor annuity that would be payable hereunder to the Participant’s Spouse.

     4.6 Additional Years of Credited Service or Age and Other Adjustments. In the sole
and absolute discretion of the Compensation Committee, a Participant may be (i) provided with
additional years of age or Years of Credited Service under this IBC SERP or (ii) provided with
benefits supplemental to, or otherwise calculated in a different manner from (including, but not
limited to, the calculation of Final Average Earnings), his SERP Benefit. Any such additional
benefit or payment provisions shall be as set forth in a separate, written agreement with such
Participant signed by the then current chairman of the Compensation Committee which shall otherwise
be subject to all the terms of this IBC SERP.

     4.7 Contingent Rights. Except as provided in Sections 4.3, 4.4 and 6.3, no Employee
or Participant shall have a vested or future interest in, or entitlement to, any benefits from the
IBC SERP until the last day of the month immediately preceding his Retirement Date, at which

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time such SERP Benefit shall be fully vested, subject only to forfeiture as provided in
Section 3.2(c) (Ineligible Employees) and Section 4.5 (Reduction, Suspension, or Elimination of
Benefits). As a non-qualified plan, any benefit hereunder is made subject to the conditions
precedent as set forth herein and to the rights reserved herein by the Compensation Committee to
increase, reduce, suspend, or eliminate benefits hereunder, to terminate or amend the IBC SERP, and
the Compensation Committee’s discretionary authority to deem any Employee ineligible hereunder.

     4.8 Continued Employment and Reemployment of Participant Receiving or Having Received
Benefits.

     (a) No benefits accrued under this IBC SERP may be distributed to a Participant while
the Participant remains in active employment with the Employer.

     (b) Notwithstanding anything herein to the contrary, if a Participant who is receiving
a Retirement Benefit is subsequently reemployed, payment of such benefit shall continue
without interruption. At the time of the Participant’s subsequent termination of
employment, if he executes any additional nondisclosure agreement, release, or such other
agreements or documents the Plan Administrator may require, his Retirement Benefit shall be
recalculated and payment of such benefit shall be adjusted to reflect any increase (but not
any decrease) in such benefit attributable to any increase in his Final Average Earnings and
any increase attributable to his additional Years of Credited Service (but only if his Years
of Credited Service upon his previous Retirement do not equal or exceed twenty (20)).
Notwithstanding anything herein to the contrary, (i) no Death Benefit shall be payable under
Section 4.3 to the Spouse of a Participant who resumes employment under this Section 4.8(b)
and (ii) the calculation of Final Average Earnings shall not include the amount of the
Retirement Benefit being paid to such reemployed Participant.

ARTICLE V

ADMINISTRATION AND CLAIMS PROCEDURES

     5.1 Administration. The Company, acting through its Chief Executive Officer, shall be
the Plan Administrator. The Plan Administrator shall have the discretionary authority that is
expressly stated in this IBC SERP as being delegated and empowered to the Plan Administrator and
shall have the discretionary authority to handle the day-to-day administration of the IBC SERP and
to administer and interpret the IBC SERP according to its provisions. Meanwhile, the Compensation
Committee shall have the discretionary authority that is expressly stated in this IBC SERP as being
delegated and empowered to the Compensation Committee.

     Determinations of the Plan Administrator as to any questions arising under this IBC SERP,
including questions of construction and interpretation shall be final, binding, and conclusive upon
all persons. All determinations reserved for the Compensation Committee herein shall be final,
binding and conclusive upon all persons.

     5.2 Plan Administrator Powers. In addition to the other powers provided elsewhere in

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this IBC SERP, the Plan Administrator shall have the power and authority in its sole and
absolute discretion:

     (a) To construe and interpret the IBC SERP, determine the application of the IBC SERP
to situations where such application is unclear or disputable, to resolve all questions
arising under the IBC SERP (including questions of fact) and make equitable adjustments for
any mistakes or errors made in the administration of the IBC SERP; provided that individual
exceptions to the provisions of the IBC SERP shall not be permitted;

     (b) To determine all questions arising in the administration of the IBC SERP, including
the power to determine the status of individuals as Participants, the rights of Participants
and their Spouses and the amount of their respective benefits and such determination,
interpretation or other action shall, subject to the right to appeal and arbitration under
Section 5.3, be final and binding for all purposes and upon all persons;

     (c) To adopt, amend and rescind such rules, regulations and forms as it may deem
necessary for the proper and efficient administration of the IBC SERP consistent with its
purposes;

     (d) To enforce and administer the IBC SERP in accordance with its terms and the rules,
regulations and forms it adopts; to appoint others and to delegate to them such
administrative duties as the Plan Administrator shall deem appropriate;

     (e) To take such action and establish such procedures as it deems necessary or
appropriate to coordinate benefits under this IBC SERP and any other plan;

     (f) To direct the appropriate person to make payments from the IBC SERP;

     (g) To employ such counsel, auditors, actuaries, or other specialists (who may be
counsel, auditors, actuaries or other specialists for the Company) and to engage such
clerical or other services to the extent such services are not provided by the Company;

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     (h) To maintain records concerning the IBC SERP sufficient to prepare reports, returns
and other information required by the IBC SERP or by law, and to communicate the terms of
the IBC SERP and any material amendments thereto to the Participants;

     (i) To delegate such of its powers and authorities (including the power and authority
to delegate) to such person or persons, who so consent, as the Plan Administrator may
appoint; and

     (j) To do all other things the Plan Administrator deems necessary or desirable for the
advantageous administration of the IBC SERP and to make the IBC SERP fully effective in
accordance with its terms and intent.

     5.3 Claims Procedure and Arbitration. In the event that a dispute arises under this
IBC SERP, then a written claim must be made to the Plan Administrator within sixty (60) days from
the date the payment or benefit is refused. The Plan Administrator shall review the written claim
and, if the claim is denied in whole or in part, the Plan Administrator shall provide, in writing
and within ninety (90) days of receipt of such claim (or, if the claim is for a Disability Benefit
and the Employer’s then existing long-term disability insurance carrier is not making the
determination of whether the Participant has incurred a Total and Permanent Disability, within 45
days of the Plan Administrator’s receipt of such claim, subject to a 30-day extension if the Plan
Administrator notifies the claimant in writing before the end of the initial 45-day period of the
reason for the extension), the Plan Administrator’s specific reasons for such denial and reference
to the provisions of this IBC SERP upon which the denial is based and any additional material or
information necessary for the claimant to perfect the claim. Such written notice shall further
indicate the steps to be taken by claimant if a further review of the claim denial is desired. A
claim shall be deemed denied if the Plan Administrator fails to take any action within the
aforesaid periods.

     If claimant desires a second review, the claimant shall notify the Plan Administrator in
writing within sixty (60) days of the date of the first claim denial. Claimant may review the IBC
SERP or any documents relating thereto and submit any written issues and comments he may feel
appropriate. In its sole discretion, the Compensation Committee may then review the second claim
and if so reviewed provide a written decision within sixty (60) days of receipt of such claim. If
reviewed by the Compensation Committee, its decision shall likewise state the specific reasons for
the decision and shall include reference to specific provisions of this IBC SERP upon which the
decision is based.

     If claimant continues to dispute the benefit denial, then such dispute will be resolved only
in arbitration before a single arbitrator and not in any court nor before any jury. The
arbitration procedures shall be those provided in the Federal Arbitration Act or, if for any reason
it does not apply, the Missouri Arbitration Act. The arbitration will be in Kansas City, Missouri,
or such other place as the claimant and Compensation Committee agree in writing. The arbitrator
will determine the amount of the arbitrator’s fees and expenses that the claimant will pay. All
arbitration hearings must commence within 90 days after the Compensation Committee has sent its
written decision to the claimant pursuant to the immediately preceding paragraph.

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     5.4 Expenses. The expenses of administering the IBC SERP shall be borne by the
Company.

ARTICLE VI

MERGER, AMENDMENT, AND TERMINATION

     6.1 Merger, Consolidation or Acquisition. In the event of a merger, consolidation, or
acquisition where the Employer is not the surviving corporation, this IBC SERP shall continue as an
obligation of the surviving corporation.

     6.2 Amendment or Modification. The Compensation Committee may amend or modify the IBC
SERP at any time; provided, however, that (i) no amendment or modification of the IBC SERP shall
deprive a Participant or Spouse of any SERP Benefit which has become vested prior to the effective
date of such amendment or modification and (ii) no amendment or modification will reduce any
Employee’s accrued but unvested SERP Benefit below the accrued SERP Benefit which would have vested
as provided in Section 6.3(ii) had the IBC SERP terminated on the date of such amendment or
modification. The Administrator shall calculate and shall maintain as part of the Company’s
records the amount of the SERP Benefit in (i) or (ii) of the immediately preceding sentence as of
the date of the amendment or modification where any such amendment or modification would otherwise
reduce SERP Benefits.

     6.3 Termination. In the case of a termination of the IBC SERP, (i) the termination
shall not deprive a Participant or Spouse of any SERP Benefit which has become vested prior to the
effective date of termination and (ii) each Employee with an accrued but unvested SERP Benefit on
the termination date shall become vested in his accrued SERP Benefit as of the termination date. In
the case of an accrued SERP Benefit which becomes vested under (ii) of the immediately preceding
sentence, such accrued SERP shall be calculated as set forth in Section 4.2 above and based on the
Participant’s Years of Credited Service and Final Average Earnings as of the IBC SERP termination
date. Payment of a Participant’s accrued SERP Benefit shall not be dependent upon his continuation
of employment with the Employer following the IBC SERP termination date, and such Benefit shall
become payable at the date for commencement of payment of a SERP Benefit pursuant to the terms of
Sections 4.2, 4.3 or 4.4 above, subject to the provisions of Section 3.2(c). The Administrator
shall calculate and shall maintain as part of the Company’s records the amount of all vested SERP
Benefits upon termination of the IBC SERP.

ARTICLE VII

MISCELLANEOUS PROVISIONS

     7.1 Funding. Benefits hereunder shall constitute an unfunded obligation of the
Employer, but the Employer may create reserves, funds, and/or provide for amounts to be held in
trust on the Employer’s behalf. Payment of benefits may be made by the Employer, or on behalf of
the Employer by such a trust or through a service or benefit provider to the Employer or such
trust. No Participant, Employee, or any other person shall have any right, title, or interest
whatsoever in or to, or any preferred claim in or to, any such trust assets or to any other
investment reserves, accounts, or funds that the Employer may purchase, establish, or

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accumulate to aid in providing the payments described in this IBC SERP. Nothing contained in
this IBC SERP, and no action taken pursuant to its provisions, shall create or be construed to
create a trust or a fiduciary relationship of any kind between the Employer and a Participant,
Employee, or any other person.

     7.2 Tax Withholding. The Employer shall withhold or cause to be withheld from any
benefit payments (and, where necessary, any other amounts payable by the Employer) any withholding
or other taxes required to be withheld with respect to such payment and such sum as the Employer
may reasonably estimate as necessary to cover any withholding or other taxes which may be due and
owing as a result of any SERP Benefit or the creation or maintenance of this IBC SERP.

     7.3 Other Plans. No benefit payable hereunder shall be deemed compensation to the
Participant for the purposes of computing benefits to which such Participant may be entitled under
any other plan or arrangement of the Employer for the benefit of its employees.

     7.4 Anti-assignment and Nontransferability. An Employee, Participant, Spouse or other
person shall have no rights, by way of anticipation or otherwise, to assign or otherwise dispose of
any interest under this IBC SERP, nor shall rights be assigned or transferred by operation of law.
No SERP Benefits hereunder may be assigned.

ARTICLE VIII

SUSPENSION

     8.1 Suspension. This IBC SERP was suspended upon notice to Participants effective
November 11, 2004. Effective as of that date, all SERP Benefits, payments, accruals, interest and
other benefits under this IBC SERP were thereby suspended until such time as the Company determines
otherwise.

IN WITNESS WHEREOF, the Company has caused this IBC SERP to be executed and adopted by its duly
authorized officer effective as of June 2, 2002, amended February 3, 2004, and amended November 11,
2004.

	 	 	 	 	 
	 

	 	INTERSTATE BAKERIES CORPORATION	 	 
	 
	 
	 	/s/ Antonio C. Alvarez II	 	 
	 

	 	 	 	 
	 

	 	Antonio C. Alvarez II	 	 
	 

	 	Chief Executive Officer	 	 
	 
	 
	 

	 	/s/ Kent B. Magill	 	 
	 

	 	 	 	 
	 
	 	Kent B. Magill	 	 
	 

	 	Vice President, General Counsel and Corporate Secretary	 	 

12

 

SCHEDULE A

TO THE IBC SERP

PARTICIPANTS

14

 

SCHEDULE B

TO THE IBC SERP

PARTICIPATING EMPLOYERS

Interstate Brands Corporation

Interstate Brands West Corporation

15

 

Table of Contents

	 	 	 	 	 
	IBC SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I ESTABLISHMENT AND PURPOSE
	 	 	1	 
	 
	 	 	 	 
	1.1 Establishment
	 	 	1	 
	 
	 	 	 	 
	1.2 Purpose
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II DEFINITIONS AND CONSTRUCTION
	 	 	1	 
	 
	 	 	 	 
	2.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	2.2 Gender or Number
	 	 	4	 
	 
	 	 	 	 
	2.3 Severability
	 	 	4	 
	 
	 	 	 	 
	2.4 Applicable Law
	 	 	4	 
	 
	 	 	 	 
	2.5 Contractual Obligations
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III PARTICIPATION
	 	 	4	 
	 
	 	 	 	 
	3.1 Participation
	 	 	4	 
	 
	 	 	 	 
	3.2 Ineligible Employees
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV SERP BENEFIT AND PAYMENT
	 	 	5	 
	 
	 	 	 	 
	4.1 Form of Benefit
	 	 	5	 
	 
	 	 	 	 
	4.2 SERP Benefit at Retirement
	 	 	6	 
	 
	 	 	 	 
	4.3 Death Benefit
	 	 	6	 
	 
	 	 	 	 
	4.4 Disability Benefit
	 	 	7	 
	 
	 	 	 	 
	4.5 Reduction, Suspension or Elimination of Benefits
	 	 	7	 
	 
	 	 	 	 
	4.6 Additional Years of Credited Service or Age and Other Adjustments
	 	 	7	 
	 
	 	 	 	 
	4.7 Contingent Rights
	 	 	7	 
	 
	 	 	 	 
	4.8 Continued Employment and Reemployment of Participant Receiving or Having Received Benefits
	 	 	8	 
	 
	 	 	 	 
	ARTICLE V ADMINISTRATION AND CLAIMS PROCEDURES
	 	 	8	 

i

 

	 	 	 	 	 
	5.1 Administration
	 	 	8	 
	 
	 	 	 	 
	5.2 Plan Administrator Powers
	 	 	8	 
	 
	 	 	 	 
	5.3 Claims Procedure and Arbitration
	 	 	10	 
	 
	 	 	 	 
	5.4 Expenses
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI MERGER, AMENDMENT, AND TERMINATION
	 	 	11	 
	 
	 	 	 	 
	6.1 Merger, Consolidation or Acquisition
	 	 	11	 
	 
	 	 	 	 
	6.2 Amendment or Modification
	 	 	11	 
	 
	 	 	 	 
	6.3 Termination
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII MISCELLANEOUS PROVISIONS
	 	 	11	 
	 
	 	 	 	 
	7.1 Funding
	 	 	11	 
	 
	 	 	 	 
	7.2 Tax Withholding
	 	 	12	 
	 
	 	 	 	 
	7.3 Other Plans
	 	 	12	 
	 
	 	 	 	 
	7.4 Anti-assignment and Nontransferability
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VIII SUSPENSION
	 	 	12	 
	 
	 	 	 	 
	8.1 Suspension
	 	 	12	 

iiexv10w19

 

Exhibit 10.19

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement” or “Employment Agreement”) is made and entered into
as of the 13th day of July 2004, by INTERSTATE BAKERIES CORPORATION, a Delaware
corporation (“IBC”), and Ronald B. Hutchison (“Employee”).

     IBC and Employee hereby mutually agree as follows:

     1. Employment.

     (a) IBC or one of its subsidiaries (hereinafter referred to as the “Company”) shall employ
Employee, and Employee shall serve the Company on the terms and subject to the conditions set forth
herein for a period commencing on July 7, 2004, and terminating on July 7, 2006 (the “Expiration
Date”), except as provided in Section 1(b) below. Employee shall serve in the capacity of
Executive Vice President – Chief Financial Officer of the Company. The duties, responsibilities
and authority of Employee shall be those that are normally incident to the office to be held by
Employee. Employee shall devote his best efforts and abilities and all his business time to the
affairs and interests of the Company (except as may be otherwise authorized by the Board of
Directors of IBC). Employee’s principal office shall be at Kansas City, Missouri.

     (b) On the first anniversary of the Effective Time (as defined in paragraph 16) of the
Employment Agreement and annually thereafter, (the “Extension Date”) the Employment Agreement shall
be automatically extended for an additional one (1) year period unless terminated by either the
Company or Employee by delivery, on or

 

 

prior to December 1 of the calendar year immediately preceding such Extension Date, of a
termination notice to the other party.

     2. Compensation. For his services to the Company, Employee shall be entitled:

     (a) To receive (i) commencing July 7, 2004, an aggregate base annual salary in the amount not
less than Three Hundred Fifty Thousand dollars ($350,000) and (ii) an annual bonus pursuant to the
terms of the Incentive Compensation Plan (“Plan”) with an annual target bonus equal to 50% of
Employee’s annual salary, as the same may be amended from time to time; provided, however, for
IBC’s 2005 fiscal year, this bonus will, at a minimum, be One Hundred Thousand dollars ($100,000).
At annual or approximate annual intervals, the Company shall conduct, or cause to be conducted, a
review of Employee’s salary, giving attention to all pertinent factors, including without
limitation the performance of the Company, the performance of Employee and compensation practices
inside and outside the Company. The Company shall, after such review, determine Employee’s base
salary to be paid until the completion of the next review.

     (b) To receive a $10,000 decorating allowance for decorating expenses related to Employee’s
new home. Such allowance shall be paid in lump sum no later than 60 days after the Effective Time
and shall be grossed-up for all income (calculated at the highest applicable federal and Missouri
state individual income tax rates), FICA, and local earnings taxes (including any such taxes
imposed on such gross-up) imposed on such decorating allowance.

     (c) To receive, subject to approval by IBC’s Board of Directors Compensation Committee and in
accordance with the terms of IBC’s 1996 Stock

2

 

Incentive Plan and the underlying award agreement,
Twenty Thousand (20,000) restricted, non vested shares of IBC’s common stock, which restrictions
shall lapse and which shares shall become vested ratably over a three year period commencing on the
date such shares of restricted stock are granted by IBC’s Board of Directors.

     (d) To be covered by noncash benefit plans and programs of the Company that are the same as
those that are provided to executives with comparable responsibilities and pay grade, including
without limitation retirement plans and programs, health and medical insurance coverage, long-term
disability insurance coverage and life insurance coverage.

     (e) To participate in any other benefit programs that are made available to other executives
of the Company.

     (f) To receive perquisites that are the same as those that are provided to executives with
comparable responsibilities and pay grade, including without limitation, a new company car every
three (3) years, an annual allowance of $5,000 for financial counseling (any unused amount may be
rolled over to the next succeeding year provided that the amount available in any given year will
not exceed twice the annual allowance) and four weeks of paid vacation beginning January 1, 2005.
Future vacation entitlements shall be in accordance with the IBC Vacation Policy.

     3. Termination; Effect of Termination.

     (a) Employee’s employment hereunder shall be terminated prior to the Expiration Date if
Employee dies or becomes permanently disabled under circumstances
in which he would be entitled to the benefits therefor under the long-term disability
insurance coverage referred to in Section 2(d), in which case IBC and Employee shall be

3

 

released
from all further obligations and liabilities hereunder (except as provided in this Section 3, for
obligations accrued but not yet paid, for those set forth in Section 6, for liability arising from
any breach of this Agreement occurring prior to such termination and except that Employee and his
beneficiaries shall be entitled to receive all disability and other benefits payable upon his death
or disability).

     (b) If Employee’s employment hereunder is terminated by the Company without his consent or for
any reason specified in Section 3(a) (each a “Termination Event”), then, within the 30 day period
following such Termination Event, the Company shall make a lump sum payment to Employee in an
amount equal to the sum of the remaining salary payments that Employee would have earned if he had
continued working for the Company for the period of time equal to the balance of the term of this
Employment Agreement as set forth in Section 1 remaining as of such Termination Event (the
“Severance Period”). The Company shall continue to provide to Employee during such Severance
Period all health, medical, disability and insurance coverage provided for in Section 2(d).

     (c) For purposes hereof, during the Severance Period Employee shall be deemed to be in service
and shall continue to accrue benefits under any retirement plan of the Company and any supplemental
retirement benefits agreement in effect between the Company and Employee immediately prior to the
Severance Period. All such payments shall be made without reference to or deduction for any
subsequent employment obtained or obtainable by Employee. In the event that Employee would be
ineligible to participate in or be covered by any noncash benefit plan or program by
reason of such termination of his employment, the Company shall provide substantially similar
benefits or coverage through other sources.

4

 

     (d) During the Severance Period the Company shall continue to make all payments of its portion
of the premiums for the life insurance in effect with respect to Employee’s life. Employee shall
also be entitled to receive or exercise during the Severance Period all other benefits and rights
available under any benefit plans or programs to terminated or discharged employees.

     (e) Notwithstanding any amounts having been paid to Employee under Section 4, if, prior to the
second anniversary of the Effective Time, Employee’s employment hereunder is terminated (i) by the
Company without cause or (ii) by the Employee for good reason, (either such type of termination
hereinafter referred to as an “Early Termination”), the Company, subject to the condition stated
below, shall pay to Employee, in a lump sum, One Hundred Thousand dollars ($100,000) to compensate
Employee for moving expenses and other relocating expenses related to Employee’s move from the
Kansas City metropolitan area. Employee shall be eligible to receive the payment provided for
under this Section 3(e) only if during the 18-month period following the Early Termination,
Employee relocates his permanent residence more than 60 miles outside of the Kansas City
metropolitan area. In the event Employee is eligible to receive the payment provided for under
this Section 3(e), the Company shall pay Employee no later than 60 days following the date of such
relocation. For purposes of this Section 3(e), Employee shall have been terminated by the Company
for cause if such termination is a result of Employee’s willful misconduct that is materially
injurious to the financial condition of the Company or the Employee’s failure to perform his
duties, as communicated to Employee with reasonable specificity by the Company’s Chief
Executive Officer or IBC’s Board of Directors, after express notice of such failure to perform
and a 30-day opportunity to cure such failure. For purposes of this Section 3(e),

5

 

Employee shall
have terminated his employment for good reason if such termination is because of any material
breach by the Company of any material term, condition or covenant contained in this Agreement, with
express notice of such failure to perform and a 30-day opportunity to cure such failure.

     (f) Notwithstanding any of the other provisions of this Employment Agreement to the contrary,
in the event that the Employee is convicted in a court of competent jurisdiction, or the Employee
pleads guilty or makes a plea of nolo contendere of any felony crime, the Employee’s employment
with the Company shall be terminated and all of the Employee’s rights to any and all compensation
and benefits provided under and pursuant to the terms of this Employment Agreement, except to the
extent protected by law, shall terminate.

     4. Moving and Commuting Expense. In connection with Employee’s move to the Kansas
City metropolitan area, the Company shall pay or reimburse Employee for all reasonable and
customary moving expenses related to such move. In addition, the Company shall pay or reimburse
Employee for all of Employee’s reasonable and customary commuting expenses incurred or paid by
Employee related to the Employee’s commute between Kansas City, Missouri and Simpsonville, South
Carolina during the six month period immediately following the Effective Time upon presentation of
expense statements or vouchers and such other information as the Company may reasonably require.

     5. Travel Expense. Employee’s duties under this Agreement may require a reasonable
amount of travel and the incurrence of travel and other business
expenses. The Company shall pay or reimburse Employee for all such reasonable expenses
incurred or paid by him upon presentation of expense statements or vouchers

6

 

and such other
information as the Company may reasonably require.

     6. Confidentiality. Employee shall not at any time during or after the term of this
Agreement (and without regard to the circumstances under which this Agreement or Employee’s
employment hereunder may have terminated), directly or indirectly, disclose or permit those under
his control to disclose, or use, or permit those under his control to use, except as shall be
necessary in the performance of his duties hereunder, any trade secrets or other proprietary
information owned by or confidential to IBC or any of its subsidiaries without the prior written
consent of IBC including but not limited to (i) any confidential information concerning the
business, affairs, properties, management or prospects (financial or otherwise) of IBC or any of
its subsidiaries that he may have acquired in the course of, or as an incident to, his employment
by IBC or any of its subsidiaries or predecessors or (ii) any confidential information entrusted to
IBC or any of its subsidiaries or predecessors which any such company is obligated to keep
confidential.

     7. Restrictions. The Employee agrees, as a condition of entering into this Employment
Agreement, that during the Severance Period the Employee will not, as an individual or as a
partner, employee, agent, advisor, consultant or in any other capacity of or to any person, firm,
corporation or other entity (excluding the Company), directly or indirectly, other than as a 2% or
less shareholder of a publicly traded corporation, do any of the following:

	 	(a)	 	carry on any business, or become involved in any business
activity, which is competitive with the business conducted by the Company
immediately prior to a Termination Event; or

7

 

	 	(b)	 	induce or attempt to induce, or assist anyone else to induce
or attempt to induce, any customer of IBC or any of its subsidiaries to
discontinue its business with IBC or any of its subsidiaries or disclose to
anyone else any confidential information relating to the identities,
preferences, and/or requirements of any such customer.

     The Employee agrees (i) that the restraints contained in this Section 7, both separately and
in total, are reasonable in view of the legitimate interests of the Company in protecting its trade
secret information and business relationships; and (ii) to disclose to any potential future
employer during the Severance Period, the terms of the restrictions against competition contained
in this Section 7.

     If any provision or subpart of this Section 7 is adjudicated to be invalid or unenforceable
under applicable law, the validity or enforceability of the remaining provisions and subparts shall
be unaffected. If any provision or subpart of this Section 7 is adjudicated to be invalid or
unenforceable because it is overbroad or unreasonable, that provision or subpart shall not be void
but rather shall be limited to the extent required to make it reasonable and shall be enforced as
so limited.

     In the event of a breach of this Section 7, the Company (i) shall have no further liability
for any of the severance benefits described in Section 3(b) that have not been paid as of the date
of the breach, and (ii) shall be entitled, in addition to any other legal or equitable remedies it
may have, to temporary, preliminary and permanent injunctive relief restraining such breach.

     8. Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach or asserted breach of its terms, will be settled by arbitration before a
single arbitrator in Kansas City, Missouri, in accordance with the rules then in

8

 

effect under the
Federal Arbitration Act, and judgment upon the award rendered may be entered in any court having
jurisdiction thereof. No claim may be arbitrated unless written notice of the basis of the claim
is received within 180 days after the party first knew of the existence of the general facts upon
which the claim is based. All arbitration hearings must commence within 90 days after the written
notice of the claim. Employee and the Company shall share equally any fees and expenses of any
arbitrator. The arbitrator will decide what amount, if any, of the prevailing party’s legal fees
and expenses will be paid by the non-prevailing party. For all purposes, this Agreement will be
interpreted and enforced under Missouri and United States law, as respectively applicable.

     9. Entire Agreement. This Agreement is the entire agreement between the parties
hereto with respect to Employee’s employment and shall not be amended, altered or modified in any
manner whatsoever, except by a written instrument executed by the parties hereto. This Agreement
supersedes all prior agreements between the Company and Employee and all such prior agreements
shall be void and of no further force or effect as of the Effective Time.

     10. No Continuous Waiver. The waiver by any party hereto of a breach of any provision
of this Agreement by the other party hereto shall not operate or be construed as a waiver of any
subsequent breach by such party.

     11. Governing Law. This Agreement shall be subject to, and be
governed by, the laws of the State of Missouri.

     12. Transfer, Assignment, Modification, etc. This Agreement may not be transferred,
assigned, modified, amended or waived without the prior written consent of all parties except that
the Company may assign this Agreement without the

9

 

consent of the Employee in the event any person,
corporation or other entity, by merger, consolidation, purchase of assets, liquidation, voluntary
or involuntary assignment or otherwise, acquires all or a substantial part of the assets of the
Company or succeeds to one or more lines of business of the Company.

     13. Severability. If any one or more of the provisions of this Agreement, as applied
to any party or any circumstance, shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Agreement, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained in the Agreement. If any one or more
of the provisions of this Agreement shall, for any reason, be held to be unenforceable as to
duration, scope, activity or subject, such provision shall be construed by limiting and reducing it
so as to make such provision enforceable to the extent compatible with the then existing applicable
law.

     14. Notices. All notices hereunder shall be in writing, shall be delivered personally
or sent by certified or registered mail, postage prepaid, return receipt requested, or by overnight
delivery utilizing a recognized national express delivery carrier such as FedEx, if to Employee, to
his attention at the principal office of IBC, and if to the Company, to IBC at its principal
office, Attention: General Counsel. No notice shall be effective if given otherwise than as
provided herein.

     15. Effect of Management Continuity Agreement. In the event of a Change of Control of
IBC, as defined under the Management Continuity Agreement effective as of July 13, 2004, by and
between IBC and the Employee (the “Continuity Agreement”), all of the Employee’s rights to any
compensation and benefits to be

10

 

provided to Employee upon the Employee’s termination of employment
following such Change of Control shall be solely governed by and paid pursuant to the terms of the
Continuity Agreement and the Employee shall have no rights to any of the compensation and benefits
provided for under this Agreement. Notwithstanding the above, Employee’s eligibility to receive
the payment provided for in Section 3(e) of this Agreement shall continue following such a Change
of Control and shall not be affected by this Section 15.

     16. Effective Time. This Agreement may be signed in any number of counterparts each
of which shall be an original and all of which, when taken together, shall constitute one and the
same instrument and shall become effective as of July 7, 2004 (the “Effective Time”) upon the
execution and delivery hereof by the parties hereto.

[The remainder of this page has intentionally been left blank.]

11

 

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

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

	 	 	 	 	 
	 	 	INTERSTATE BAKERIES CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ James R. Elsesser
 

	 

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	/s/ Ronald B. Hutchison
	 	 	   
	 	 	Ronald B. Hutchison

12

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