Document:

Execution Copy  

February 15, 2007 

GFA Holdings, Inc.
c/o TSG4,
L.P.
Attention: Alexander Panos 
600 Montgomery Street, Suite 2900 
San Francisco, CA 94111

Dear Alex, 

        As
you know, Article VII of the Agreement and Plan of Merger, dated September 25, 2006 (the
“Merger Agreement”), sets forth various rights to terminate the Merger Agreement
prior to the consummation of the merger upon the occurrence or non-occurrence of certain
events. One such event, which would give both GFA Holdings, Inc. (“Holdings”)
and Boulder Specialty Brands, Inc. (“Boulder”) the right to terminate the Merger
Agreement pursuant to subsection 7.1(d) of the Merger Agreement, is the failure of the
parties to consummate the merger by February 16, 2007 (the “Termination Date”).
As permitted and contemplated by subsection 7.1(f) of the Merger Agreement, Boulder hereby
agrees to, and requests that Holdings and TSG4, L.P. (“TSG4”), as
Shareholders’ Representative, execute this letter agreement as confirmation of their
agreement to, extend the Termination Date to May 31, 2007, and therefore amend subsection
7.1(d) of the Merger Agreement by substituting “February 16, 2007” with
“May 31, 2007". 

        Further,
in connection with the extension of the Termination Date contemplated herein, Boulder
hereby agrees, and hereby requests that Holdings and TSG4 agree by signing below, to amend
subsection 7.1(f) of the Merger Agreement by replacing subsection 7.1(f) in its entirety
with the following: “by the Company if final SEC approval of the Proxy Statement has
not been received by April 30, 2007;". 

        In
consideration for Holdings’ and TSG4‘s acknowledgement and agreement to the
terms and conditions of this letter agreement, Boulder hereby acknowledges and agrees
that (i) Holdings and GFA Brands, Inc. (“Brands”) have used reasonable
commercial efforts to date to deliver to Boulder those certain financial statements set
forth in Section 4.1(f) of the Merger Agreement and notwithstanding such efforts the
delivery of the June 30, 2006 audited financial statements were delayed but nevertheless
such delay shall not constitute a breach of the Merger Agreement by either Holdings or
Brands, (ii) as of the date hereof, Boulder is not aware of any breach by Holdings or
Brands of any of their obligations under Sections 4.1, 4.2, and 4.14 of the Merger
Agreement and notwithstanding commercially reasonable efforts by Holdings and Brands the
delivery of the monthly financial statements as required by Section 4.1(d) were delayed
but nevertheless such delay shall not constitute a breach of the Merger Agreement by
either Holdings or Brands (iii) the mere filing of a Chapter 11 petition by itself by
Creative Foods LLC is not a Material Adverse Effect under the Merger Agreement, (iv) the
Debtor In Possession financing totaling $353,000 provided to Creative Foods LLC and the
related payments of contingent consulting fees, in each case, by an affiliate of TSG4, as
well as the pricing concessions given to Creative Foods LLC under the Processing and
Packaging Agreement, dated January 7, 2003, with GFA Brands, Inc. (as amended, the “Processing
&Packaging Agreement”), shall not be construed as a breach of the Merger
Agreement or a failure of Holdings or TSG4 to satisfy the conditions to closing in
Section 3.2 of the Merger Agreement, (v) Holdings and Brands plan to hire a new senior
sales and/or marketing executive and the parties hereto agree that before an offer is
made to such executive Boulder will be informed of such executive’s name and the
proposed terms and conditions of such executive’s employment and the parties hereto
also agree that Boulder’s consent shall not be required under the Merger Agreement
for the hiring of such executive and that such hiring shall not constitute a breach of
the Merger Agreement by either Holdings or Brands, and (vi) the terms and conditions of a
draft agreement between Brands and Ventura Foods, LLC (“Ventura”) provided to
Boulder (the “Draft New Ventura Agreement”) are acceptable and the parties
hereto agree that Boulder’s consent shall not be required under the Merger Agreement
in order for Brands to enter into any agreement with Ventura and that the entering into
such an agreement with Ventura by Brands shall not constitute a breach of the Merger
Agreement by either Holdings or Brands, in each case, as long as the terms and conditions
of such an agreement are not materially more adverse to Brands in the aggregate than the
terms of the Draft New Ventura Agreement.  

        Notwithstanding
Boulder’s consent to the terms and conditions of the Draft New Ventura Agreement, if
Brands enters into such a new agreement with Ventura as contemplated herein before the
Closing, the parties hereto acknowledge that the requirement to obtain Ventura’s
consent to the assignment of such new agreement with Ventura to Boulder is a condition to
the obligations of the parties to close the transactions contemplated by the Merger
Agreement as set forth therein.  

        In
consideration of Boulder’s acknowledgment and agreement to the terms and conditions
set forth in the preceding paragraph, (i) Holdings and Brands agree to use commercially
reasonable efforts to prepare and deliver December 31, 2006 audited financial statements
as soon as practicable consistent with past practice and (ii) Brands agrees to spend a
total aggregate dollar amount on (x) advertising consisting of print, television, radio
and free standing insert advertising, (y) trade spend consisting of cash discounts,
advertising payments to customers, off-invoice allowances, billbacks, scan programs, and
temporary price reduction fees, and (z) catalina coupon distribution fees for the first
five months of 2007 (the “2007 Five Month Aggregate Ad and Trade Spend”) equal
to or greater than the total aggregate dollar amount spent on the same such items for the
first five months of 2006 (the “2006 Five Month Aggregate Ad and Trade Spend”);
provided, that Holdings and Brands shall credit Boulder at Closing the dollar amount, if
any, by which such 2006 Five Month Aggregate Ad and Trade Spend exceeds such 2007 Five
Month Aggregate Ad and Trade Spend as set forth above (such amounts to be pro rated
through the Cutoff Date to the extent the Cutoff Date occurs prior to May 31, 2007); and
provided, further, that the expenditures described in clause (x), (y) and (z) above shall
be made consistent with historical practices and that neither Brands nor Holdings shall
intentionally defer any such expenditures to post-Closing periods. 

        Notwithstanding
the new May 31, 2007 Termination Date and the new April 30, 2007 date relevant to the
amended subsection 7.1(f) of the Merger Agreement, as described above, the parties agree
that the Termination Date and the new April 30, 2007 date relevant to the amended
subsection 7.1(f) shall automatically extend beyond May 31, 2007 and April 30, 2007,
respectively, by the same number of days as the delivery of the December 31, 2006 audited
financial statements to Boulder extends beyond March 16, 2007; provided, however, that the
new May 31, 2007 Termination Date under Section 7.1(d) of the Merger Agreement shall not
under any circumstances extend beyond June 30, 2007 and the new April 30, 2007 date
relevant to the amended subsection 7.1(f) of the Merger Agreement shall not under any
circumstances extend beyond May 18, 2007. 

        Capitalized
terms used but not defined in this letter agreement shall have the respective meanings
assigned to such terms in the Merger Agreement. The parties agree that, with respect to
Section 5.5(a) of the Merger Agreement, the term “Audited Financial Statements”
shall include the December 31, 2006 audited financial statements when delivered and the
definition of “Unaudited Financial Statements” shall include the monthly
consolidated interim financial statements described in Section 4.1(d) of the Merger
Agreement when delivered. 

        If
Holdings and TSG4, as Shareholders’ Representative, are agreeable to the contents of
this letter agreement, please execute the acknowledgement and agreement set forth below.
Should you have any questions regarding this letter, please feel free to contact me
directly. 

		
Very truly yours,
		
BOULDER SPECIALTY BRANDS, INC.
		

By: /s/ Stephen B. Hughes
		      Stephen B. Hughes, Chairman and CEO

ACKNOWLEDGEMENT AND
AGREEMENT: 

TSG4 L.P., as
Shareholders’ Representative 

By:  /s/ Chuck Esserman
      Chuck Esserman, Authorized Person

GFA HOLDINGS, INC. 

By:  /s/ Chuck Esserman
      Chuck Esserman, Authorized Person

BSB ACQUISITION CO., INC. 

By:  /s/ Stephen B. HughesEXECUTION COPY 

February 15, 2007 

Och-Ziff Capital Management Group,
LLC 
Attention: Joel M. Frank, David Stonehill 
9 West 57th St., 39th
floor 
New York, NY 10019 

Glenview Capital
Management, LLC 
Attention: Mark Horowitz 
767 Fifth Avenue, 44th Floor 
New York, NY 10153

 

Dear Joel, David and Mark, 

        Article
VI of the Securities Purchase Agreement by and among Boulder Specialty Brands, Inc.
(“Boulder”) and the Investors listed therein, dated September 25, 2006 (the
“Purchase Agreement”), sets forth various provisions regarding the termination
of the Purchase Agreement. One such event is if the Closing has not occurred on or before
February 16, 2007 (the “Final Termination Date”) and Boulder and the Requisite
Investors have not agreed on an extension to the Final Termination Date. In light of
recognized delays in obtaining SEC approval of the Proxy Statement, and as contemplated
and permitted by subsection 6.1(i) of the Purchase Agreement, Boulder hereby agrees to,
and requests that the Requisite Investors execute this letter agreement as confirmation of
its agreement to, extend the Final Termination Date to May 31, 2007, and therefore to
amend subsection 6.1(i) of the Purchase Agreement by substituting “February 16,
2007” with “May 31, 2007". In addition, the parties further agree to amend
subsection 6.1(iii)(B) of the Purchase Agreement by substituting “January 10,
2007” with “May 7, 2007” and “January 5, 2007” with “April
30, 2007". 

Notwithstanding the new May 31, 2007
Final Termination Date and the new May 7, 2007 and April 30, 2007 dates relevant to
Section 6.1(iii)(B) of the Purchase Agreement, as described above, Boulder and the
undersigned Requisite Investors agree that the Final Termination Date and each of the
applicable dates relevant to Section 6.1(iii)(B) shall automatically extend beyond May 31,
2007, May 7, 2007 and April 30, 2007, respectively, by the same number of days as the
delivery of the December 31, 2006 audited financial statements of GFA Holdings, Inc. to
Boulder extends beyond March 16, 2007; provided, however, that the new May 31, 2007
Termination Date under Section 6.1(i) of the Purchase Agreement shall not extend beyond
June 30, 2007 and the new April 30, 2007 and May 7, 2007 dates relevant to Section
6.1(iii)(B) of the Purchase Agreement shall not extend beyond May 18, 2007 and May 25,
2007, respectively. 

Extension Letter 
February 15, 2007

Page 2 of 5 

        Capitalized
terms used but not defined in this letter agreement shall have the respective meanings
assigned to such terms in the Purchase Agreement. 

        If
the undersigned Requisite Investors are agreeable to the contents of this letter
agreement, please execute the acknowledgement and agreement set forth below. Although not
legally required, as previously discussed, we have also provided space below for the
consent of all of the other Investors to this letter agreement. Finally, by executing
below, you acknowledge and consent to the amendments that have been made to the Agreement
and Plan of Merger and to the Debt Commitment Letter with Bank of America and Banc of
America Securities, copies of which are attached hereto. Should you have any questions
regarding this letter, please feel free to contact me directly. 

		Very truly yours,
		
BOULDER SPECIALTY BRANDS, INC.
		

By: /s/ Stephen B. Hughes
		     Stephen B. Hughes, Chairman and CEO

	cc:  	O’Melveny
& Myers LLP
Times Square Tower
7 Times Square
New York, NY, 10036

Extension Letter 
February 15, 2007

Page 3 of 5 

ACKNOWLEDGEMENT AND
AGREEMENT 
OF REQUISITE INVESTORS TO LETTER AGREEMENT 

REQUISITE INVESTORS: 

OZ MASTER FUND, LTD.  

By:    OZ Management,
L.L.C., its Investment Manager 

By:    /s/ Joel Frank

        Name:  Joel Frank 

        Title:  Chief Financial Officer

OZ Global Special Investments Master
Fund, L.P. 

By:    OZ Management,
L.L.C., its Investment Manager 

By:  /s/ Joel Frank

        Name:  Joel Frank 

        Title:  Chief Financial Officer

GPC LVII, LLC 

By:    OZ Management,
L.L.C., its Investment Manager 

By:  /s/ Joel Frank

        Name:  Joel Frank 

        Title:  Chief Financial Officer

Fleet Maritime, Inc. 

By:    OZ Management,
L.L.C., its Investment Manager 

By:  /s/ Joel Frank

        Name:  Joel Frank 

        Title:  Chief Financial Officer

Extension Letter 
February 15, 2007

Page 4 of 5 

REQUISITE INVESTORS: 

Glenview Capital Partners, L.P. 

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

Glenview Institutional
Partners, L.P.  

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

GCM Little Arbor Partners, L.P. 

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

GCM Little Arbor Institutional
Partners, L.P. 

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

GCM Little Arbor Master
Fund Ltd.  

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

Extension Letter 
February 15, 2007

Page 5 of 5 

Glenview Capital Master
Fund Ltd.  

By:    Glenview Capital Management, LLC
its investment manager 

By:  /s/ Richard Barrera

        Name:  Richard
Barrera  
        Title:  Managing Member

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