Document:

exv10w2

Exhibit 10.2

IBC INVESTORS I, LLC

September 12, 2008

Interstate Bakeries Corporation

12 East Armour Boulevard

Kansas City, MO 64111

			
	Attention:	 	Mr. Michael Anderson, Chairman of the Board

Mr. Craig Jung, Chief Executive Officer

Fee Letter

Gentlemen:

     Reference is made to the commitment letter between IBC Investors I, LLC (“Investors”) and
Interstate Bakeries Corporation (“IBC”) dated the date hereof (including the exhibits and annexes
attached thereto and as amended, restated, supplemented or otherwise modified from time to time in
accordance with the terms thereof, the “Commitment Letter”). Capitalized terms used but not
defined herein are used with the meanings assigned to them in the Commitment Letter. This letter
agreement is the Fee Letter referred to in the Commitment Letter.

     As consideration for the commitments of Investors under the Commitment Letter, IBC agrees to
pay or caused to be paid to Investors the following fees:

     (i) a commitment fee for Investors’ commitments to purchase New Common Stock under the
Commitment Letter, in the amount of $2,210,000 (the “Equity Commitment Fee”); and

     (ii) a commitment fee for Investors’ commitment to purchase New Convertible Debt under the
Commitment Letter, in the amount of $4,290,000 (the “Debt Commitment Fee”).

Each of the Equity Commitment Fee and the Debt Commitment Fee shall be due and payable by IBC (a)
50% upon entry of the Investment Agreement Order by the Bankruptcy Court and (b) 50% upon the
earliest of (w) the Effective Date, (x) the consummation by any of the Debtors of a transaction or
series of transactions on terms that are more favorable from a financial point of view to the
Debtors’ constituents than would be obtained through the consummation of the Investment and the
Transaction at any time on or after the date IBC terminates the Commitment Letter or the Investment
Agreement in connection with a Superior Proposal, (y) the date that is six months after the date
IBC terminates the Commitment Letter or the Investment Agreement in connection with a Superior
Proposal and (z) the consummation, within twelve months of the date Investors terminates the
Commitment Letter or the Investment Agreement as a result of any of the conditions set forth in the
Commitment Letter or the Investment Agreement becoming incapable of being satisfied, by any of the
Debtors of a transaction or series of transactions (1) on terms that are more favorable from a
financial point of view to the Debtors’ constituents than would be obtained through the
consummation of the Investment and the Transaction
and (2) with any of the Prepetition

 

 

Investors providing any new debt or equity financing (excluding
any restructuring of Prepetition Debt that does not result in additional funds being provided by
any of the Prepetition Investors) in connection with such transaction or series of transactions.

     In addition, IBC agrees to reimburse Investors and its affiliates for all of the reasonable
out-of-pocket costs and expenses (including due diligence expenses, consultants’ and investment
bankers’ fees and expenses, travel expenses and fees, charges and disbursements of counsel, and
irrespective of whether such costs and expenses are incurred prior to, on or after the date hereof)
(collectively, “Investors Transaction Expenses”) incurred in connection with the Investment or the
Transaction, including those incurred in connection with any related documentation or the
preparation thereof (including the Commitment Letter, this Fee Letter and the definitive
documentation for the Investment and any other documentation related to the Transaction) or the
administration, amendment, modification or waiver thereof or the procurement of Bankruptcy Court
approval of any thereof. Upon entry of the Fee Order by the Bankruptcy Court, all Investors
Transaction Expenses incurred prior thereto shall become due and payable by IBC. Upon the earliest
of (A) the Effective Date, (B) the date Investors terminates the Commitment Letter or the
Investment Agreement as a result of any of the conditions set forth in the Commitment Letter or the
Investment Agreement becoming incapable of being satisfied and (C) the date IBC terminates the
Commitment Letter or the Investment Agreement in connection with a Superior Proposal, all Investors
Transaction Expenses (other than those that have been reimbursed by IBC pursuant to the immediately
preceding sentence) shall become due and payable by IBC; provided, however, that
the amount of Investors Transaction Expenses payable by IBC under clause (B) or (C) above, plus the
amount of Investors Transaction Expenses that have been reimbursed by IBC pursuant to the
immediately preceding sentence, shall not exceed $6,000,000 in the aggregate.

     IBC agrees that, once paid, the fees and reimbursement of costs and expenses or any part
thereof payable hereunder or under the Commitment Letter shall not be refundable under any
circumstances, regardless of whether the Investment, the Transaction or the other transactions
contemplated by the Commitment Letter are consummated. All fees and reimbursement of costs and
expenses payable hereunder and under the Commitment Letter shall be paid in immediately available
funds. IBC agrees that Investors, in its sole discretion, may share all or a portion of any of the
fees or reimbursement of costs and expenses payable pursuant to this Fee Letter or the Commitment
Letter with any person to whom a portion of Investors’ commitments under the Commitment Letter may
be assigned pursuant to the Commitment Letter.

     It is understood and agreed that this Fee Letter shall not constitute or give rise to any
commitment or similar obligation; such an obligation will arise only to the extent provided in the
Commitment Letter if accepted in accordance with its terms. This Fee Letter may not be amended or
any provision hereof waived or modified except by an instrument in writing signed by Investors and
IBC. This Fee Letter shall be governed by, and construed in accordance with, the laws of the State
of New York. IBC consents to the nonexclusive jurisdiction and venue of the Bankruptcy Court, and
in the event that the Bankruptcy Court does not have or declines to exercise jurisdiction or there
is reason to believe that it would not have or would decline to exercise jurisdiction, to the
nonexclusive jurisdiction and venue of the state or federal courts located in the City of New York
in the Borough of Manhattan. Subject to the foregoing, each party hereto irrevocably waives, to
the fullest extent permitted by applicable law, (a) any right it may have to a trial by jury in any
legal proceeding related to or arising out of the Commitment Letter, this Fee Letter or the
transactions contemplated hereby or thereby (whether based on contract, tort or any other theory)
and (b) any objection that it may now or hereafter have to the laying of venue of any such legal
proceeding in the Bankruptcy Court or the state or federal courts located in the City of New York
in the Borough of Manhattan.

 

 

     This Fee Letter may be executed in any number of counterparts, each of which shall be an
original and all of which, when taken together, shall constitute one agreement. Delivery of an
executed counterpart of a signature page of this Fee Letter by facsimile or electronic transmission
shall be effective as delivery of a manually executed counterpart.

     Please confirm that the foregoing is our mutual understanding by signing and returning to us
an executed counterpart of this Fee Letter.

Very truly yours,

IBC INVESTORS I, LLC,

by
  /s/ Christopher Minnetian

     Name: Christopher Minnetian

     Title:   Authorized Signatory

Accepted and agreed to as of

the date first above written:

INTERSTATE BAKERIES CORPORATION,

on behalf of itself and the other Debtors,

by
  /s/ Craig D. Jung

     Name: Craig D. Jung

     Title:   Chief Executive Officerexv10w3

Exhibit 10.3

CONFIDENTIAL

September 12, 2008

Interstate Bakeries Corporation

Interstate Brands Corporation

12 East Armour Boulevard

Kansas City, MO 64111

Attention: Mr. Randall Vance, Chief Financial Officer

Interstate Bakeries Corporation

Interstate Brands Corporation

$125,000,000 Senior Secured Revolving Credit Facility

Commitment Letter

Ladies and Gentlemen:

You (the “Borrowers”) have advised each of General Electric Capital Corporation (“GE
Capital”) and GE

Capital Markets, Inc. (“GECM” and, together with GE Capital, the “Commitment
Parties,” “we” or “us”) that IBC Investors I, LLC (“Holdings”), an
entity formed by one or more affiliates of Ripplewood Holdings L.L.C. (Ripplewood Holdings L.L.C.,
together with its affiliates, “Sponsor”), intends to acquire (the “Acquisition” or
the “Transaction”) stock of Interstate Bakeries Corporation (the “Company” and
together with its subsidiaries, the “Acquired Business”), a debtor and debtor-in-possession
under Chapter 11 (“Chapter 11”) of title 11 of the United States Code (as amended, the
“Bankruptcy Code”) intended to be reorganized pursuant to a Chapter 11 plan of
reorganization (the “Plan”). You have further advised us that, in connection with the
consummation of the Plan, you are seeking to obtain a working capital senior secured revolving
credit facility in an amount of $125,000,000 (the “Revolving Credit Facility”). You have
further advised us that Holdings intends to provide not less than $130,000,000 in cash financing to
the Company, of which $44,200,000 shall be common equity and $85,800,000 shall be Convertible Debt
(as defined below). In connection with the consummation of the Plan, you also have advised us that
the Borrowers also intend to obtain certain other financing facilities consisting of (a) senior
secured term loans in an aggregate principal amount of $339,150,000 (the “Term Loan
Facility”), (b) senior secured third-lien term loans in an aggregate principal amount of
$147,300,000 (the “Third-Lien Debt”) and (c) senior secured fourth-lien convertible debt in
an aggregate principal amount (including the $85,800,000 to be provided by Holdings as referenced
above) of $171,600,000 (the “Convertible Debt” and together with the Term Loan Facility and
the Third-Lien Debt, collectively, the “Cash Flow Facilities”).

In connection with the Transaction, GE Capital (in such capacity, the “Initial Lender”) is
pleased to advise you of its commitment to underwrite and provide, directly or through an
affiliate, the Revolving Credit Facility and to act as the sole administrative agent and the sole
collateral agent for the Revolving Credit Facility, all upon and subject to the general terms and
conditions set forth herein, in the Summary of Terms attached hereto as Exhibit A and
incorporated herein by reference (the “Term Sheet” and together with this letter, this
“Commitment Letter”) and in the Fee Letter (as defined below). GECM (in such capacity the
“Lead Arranger”) is pleased to agree to act as the sole lead arranger for the Revolving
Credit Facility and book-running manager for the Revolving Credit Facility. Capitalized terms used
in the text of this Commitment Letter without definition have the meanings assigned to such terms
in the Term Sheet.

 

 

Syndication.

The Initial Lender intends and reserves the right, prior to and after the execution of the
Revolving Credit Facility Documentation (as defined below), to syndicate all or a portion of its
commitments under this Commitment Letter or its loans and commitments under the Revolving Credit
Facility Documentation, as the case may be, to one or more banks, financial institutions or other
institutional lenders reasonably acceptable to you pursuant to a syndication to be managed by GECM
(the Initial Lender and such financial institutions becoming parties to such Revolving Credit
Facility Documentation being collectively referred to as the “Lenders”). The syndication
of all or a portion of the Initial Lender’s commitments under this Commitment Letter and/or its
loans and commitments under the Revolving Credit Facility is hereinafter referred to as the
“Primary Syndication.” Any assignments of the Initial Lender’s commitments under this
Commitment Letter or its loans and commitments under the Revolving Credit Facility entered into to
complete the Primary Syndication shall not be subject to the minimum amounts and fee provisions set
forth in the assignment provisions of either this Commitment Letter or the Revolving Credit
Facility Documentation. Each of the Commitment Parties acknowledges and agrees that its commitment
hereunder is not conditioned upon a successful syndication.

The Lead Arranger will commence the Primary Syndication promptly after your acceptance of this
Commitment Letter and the Fee Letter (as defined below), subject to the Company’s preparation,
completion and filing of a disclosure statement, in form and substance reasonably acceptable to the
Commitment Parties. It is understood and agreed that GECM will, in consultation with you, manage
and control all aspects of the Primary Syndication, including selection of prospective Lenders
reasonably acceptable to you, determination of when the Lead Arranger will approach prospective
Lenders and the time of acceptance of Lenders’ commitments, any naming rights, titles or roles to
be awarded to Lenders, and the final allocations of the commitments among Lenders. It is further
understood and agreed that (i) no additional agents, arrangers or book-running managers shall be
appointed, or other titles, names or roles conferred to any Lender or any other person or entity,
by you in respect of the Revolving Credit Facility, (ii) the amount and distribution of fees among
the Lenders will be at the Lead Arranger’s discretion and (iii) no Lender will be offered by, or
receive from, you compensation of any kind for its participation in the Revolving Credit Facility,
except as expressly provided for in this Commitment Letter or the Fee Letter or with the prior
written consent of GECM.

You agree to use commercially reasonable efforts to take all actions that the Lead Arranger may
reasonably request to actively assist and cooperate (and use your commercially reasonable efforts
to cause Holdings, Sponsor and their respective representatives and advisors to assist and
cooperate) with the Lead Arranger in connection with the Primary Syndication. Such assistance
shall include, without limitation (a) promptly preparing and providing to the Lead Arranger, to the
extent reasonably available, all information with respect to Holdings, the Acquired Business, the
Transaction and the other transactions contemplated hereby, including financial information and
projections to be provided jointly by the Borrowers and the Sponsor in connection with the Plan
(the “Projections”) and copies of due diligence, accounting or similar reports or memoranda
prepared at your direction or the direction of Sponsor by legal, accounting, tax, environmental or
other advisors in connection with the Transaction (in each case subject to non-disclosure and
non-reliance letters to the extent required by such advisors), in each case, as the Lead Arranger
may reasonably deem necessary to complete the Primary Syndication, (b) participating and using
commercially reasonable efforts to cause Holdings to participate in meetings with prospective
Lenders and other relevant meetings, (c) providing (or, in the case of Holdings or Sponsor, using
commercially reasonable efforts to provide) direct contact during the Primary Syndication between
Holdings’, Sponsor’s and the Acquired Business’ senior management, representatives and advisors, on
the one hand, and prospective Lenders, on the other hand, and (d) using your commercially
reasonable efforts to ensure that the Lead Arranger’s syndication efforts benefit from Holdings’,
Sponsor’s and the Acquired Business’ existing financial and banking relationships.

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At GECM’s request, you agree to assist (and use your commercially reasonable efforts to cause
Holdings to assist) in the preparation of confidential information memoranda, presentations and
other Evaluation Material (as defined below) regarding Holdings, the Acquired Business and their
respective subsidiaries and the Revolving Credit Facility to be used in connection with the Primary
Syndication and to confirm (and to use commercially reasonable efforts to cause Holdings to
confirm), prior to such materials being made available to prospective Lenders, the accuracy in all
material respects of such materials when taken as a whole. The Evaluation Material shall include a
version of the confidential information memorandum, presentation and other information materials
consisting exclusively of information that is either publicly available with respect to Holdings,
the Acquired Business and their respective subsidiaries, or that is not material with respect to
Holdings, the Acquired Business and their respective securities for purposes of U.S. federal and
state securities laws. You also hereby agree that you will (a) identify in writing (and cause
Holdings to identify in writing) and (b) clearly and conspicuously mark such Evaluation Material
that does not contain any such material non-public information referred to in the prior sentence as
“PUBLIC”. You hereby agree that by identifying such Evaluation Material pursuant to clause (a) of
the preceding sentence and marking Evaluation Material as “PUBLIC” pursuant to clause (b) of the
preceding sentence and/or publicly filing any Evaluation Material with the Securities and Exchange
Commission, then the Commitment Parties, Lenders and prospective Lenders shall be entitled to treat
such Evaluation Material as not containing any material non-public information with respect to
Holdings, the Acquired Business and their respective subsidiaries and parent companies for purposes
of U.S. federal and state securities laws. You further acknowledge and agree that the following
documents and materials shall be deemed to be PUBLIC, whether or not so marked, and do not contain
any material non-public information: term sheets with respect to the Revolving Credit Facility and
the Transaction, and administrative materials of a customary nature prepared by the Commitment
Parties for prospective Lenders, such as a lender meeting invitation, bank allocation, if any, and
funding and closing memorandum. Before distribution of any Evaluation Material, you agree (or
agree to use commercially reasonable efforts to cause Holdings) to execute and deliver to us a
letter in which you authorize distribution of the Evaluation Material to prospective Lenders and
their employees willing to receive material non-public information, and a separate letter in which
you authorize distribution of Evaluation Material that does not contain material non-public
information and represent that no material non-public information is contained therein.

Until the earlier of (a) the completion of the Primary Syndication (as determined by GECM in its
discretion) and (b) the 45th day following the Closing Date, the Acquired Business shall not (and
you shall use commercially reasonable efforts to cause Holdings not to), without the prior written
consent of GECM, offer, issue, place, syndicate or arrange any debt securities or debt facilities
(including any renewals, restatements, restructuring or refinancings of any existing debt
securities or debt facilities other than the Cash Flow Facilities and those expressly contemplated
by the Plan, attempt or agree to do any of the foregoing, announce or authorize the announcement of
any of the foregoing, or engage in discussion concerning any of the foregoing.

Information.

You hereby represent and covenant (and it is a condition to the Initial Lender’s commitment
hereunder) that to your knowledge (a) all information other than the Projections and general
economic or specific industry information developed by, and obtained from, third-party sources (the
“Information”) that has been or will be made available to the Commitment Parties and/or the
Lenders by Holdings, Sponsor, the Acquired Business or any of your or their respective affiliates
or representatives, when taken as a whole, is or will be, when furnished, correct in all material
respects and does not or will not, when furnished, contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements contained therein not
materially misleading in light of the circumstances under which such

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statements are made and (b) the Projections that have been or will be made available to the
Commitment Parties by Holdings, Sponsor, the Acquired Business or any of your or their respective
affiliates or representatives have been or will be prepared in good faith based upon assumptions
that are believed to be reasonable at the time made (it being understood and agreed that financial
projections are not a guarantee of financial performance and actual results may differ from
financial projections and such differences may be material). You agree that if at any time prior
to the closing of the Revolving Credit Facility any of the representations in the preceding
sentence would be incorrect if the Information or Projections were being furnished, and such
representations were being made, at such time, then you will promptly supplement the Information or
the Projections, as the case may be, so that such representations will be correct in all material
respects under those circumstances. You understand that in arranging and syndicating the Revolving
Credit Facility the Lead Arranger may use and rely on the Information and Projections without
independent verification thereof.

You hereby authorize and agree, on behalf of Holdings, Sponsor, the Acquired Business and your and
their respective affiliates, that the Information, the Projections and all other information
provided by or on behalf of Holdings, Sponsor, the Acquired Business and your and their respective
affiliates to the Commitment Parties regarding Holdings, Sponsor, the Acquired Business and their
respective affiliates, the Transaction and the other transactions contemplated hereby in connection
with the Revolving Credit Facility (collectively, “Evaluation Material”) may be
disseminated by or on behalf of the Commitment Parties, and made available, to prospective Lenders
and other persons, who have agreed to be bound by customary confidentiality undertakings
(including, “click-through” agreements), all in accordance with the Lead Arranger’s standard loan
syndication practices (whether transmitted electronically by means of a website, e-mail or
otherwise, or made available orally or in writing, including at prospective Lender or other
meetings). You hereby further authorize the Lead Arranger to download copies of Holdings’,
Sponsor’s and the Acquired Business’ logos from their respective websites and post copies thereof
on an Intralinks® or similar workspace and use such logos on any confidential
information memoranda, presentations and other marketing and materials prepared in connection with
the Primary Syndication.

Fee Letter.

As consideration for the Commitment Parties’ agreements hereunder you agree to pay (or to cause to
be paid) to the Initial Lender, the Lead Arranger and such other specified parties, if any, the
fees as set forth in the Term Sheet and in the Fee Letter dated the date hereof and delivered
herewith with respect to the Revolving Credit Facility (the “Fee Letter”).

Conditions.

The commitment and agreements of the Initial Lender hereunder, and the agreements of the Lead
Arranger to provide the services described herein, are subject to the following: (a) the execution
and delivery of definitive documentation for the Revolving Credit Facility (such documentation,
including without limitation, the Intercreditor Agreement, is collectively referred to as the
“Revolving Credit Facility Documentation”) consistent with the Term Sheet and otherwise
reasonably acceptable to the Initial Lender, (b) the Initial Lender not becoming aware after the
date hereof of any information not previously disclosed to the Initial Lender affecting Holdings,
the Acquired Business or their respective subsidiaries or the Transaction that in the Initial
Lender’s judgment is inconsistent in a material and adverse manner with any such information
disclosed to the Initial Lender prior to the date hereof, (c) the Lead Arranger having been
afforded a period of at least 45 days following the general launch of the Primary Syndication
(which shall not be earlier than the date of the initial bank meeting) and immediately prior to the
date of closing of the Revolving Credit Facility to complete the Primary Syndication (provided that
such period shall not include any day from and including (i) November 26, 2008 through and November
30, 2008, or (ii) December 20, 2008 through and including January 4, 2009) and (d) the

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other conditions set forth in the Term Sheet and your compliance in all material respects with the
terms and provisions of this Commitment Letter and the Fee Letter. Those matters with respect to
the Revolving Credit Facility that are not covered by the provisions hereof or the Term Sheet shall
be consistent with the Term Sheet and shall be subject to approval and agreement by the Commitment
Parties and you, it being agreed that there shall be no conditions to closing or the initial
funding of the Revolving Credit Facility, representations, warranties, covenants or events of
default other than those expressly set forth in this Commitment Letter and the Term Sheet.

Expenses.

By signing this Commitment Letter, regardless of whether the Revolving Credit Facility closes,
you agree to pay (or cause to be paid) to the Commitment Parties all reasonable
out-of-pocket fees and expenses (including, but not limited to, all reasonable costs and fees of a
single external legal counsel for GE Capital and GECM, plus if necessary one local counsel in each
applicable jurisdiction, environmental consultants, appraisers, auditors and other consultants and
advisors, due diligence reports, recording and transfer fees and taxes, title charges and survey
costs) incurred by them in connection with this Commitment Letter, the Fee Letter, the Transaction,
the Revolving Credit Facility and the transactions contemplated hereby (and the negotiation,
documentation, closing and syndication thereof)

Confidentiality.

The Commitment Parties are delivering this Commitment Letter to you with the understanding that you
will not disclose the existence or contents of this Commitment Letter, the Fee Letter or the
Commitment Parties’ involvement with or the Initial Lender’s commitment to provide or the Lead
Arranger’s agreement to arrange the Revolving Credit Facility to any third party (including,
without limitation, any financial institution or intermediary) without the Initial Lender’s prior
written consent other than (a) to the officers, directors, employees, accountants, attorneys and
other advisors of Sponsor, Holdings, the Company and then only on a confidential and “need to know”
basis in connection with the transactions contemplated hereby, (b) as may be compelled in a
judicial or administrative proceeding or as otherwise required by law, provided that to the
extent it is necessary to disclose the Fee Letter or a summary of the terms thereof, you agree to
take such reasonable actions as necessary to prevent the Fee Letter from becoming publicly
available in such judicial or administrative proceeding, or (c) other than the Fee Letter, after
prior written notice of such intended recipient to the Commitment Parties and then only on a
confidential and “need to know” basis in connection with the transactions contemplated hereby, to
(i) the officers, directors, employees, accountants, attorneys and other advisors of the lenders
and potential lenders under the Cash Flow Facilities, (ii) the Official Committee of Unsecured
Creditors for the Chapter 11 cases of the Acquired Business and their professionals, (iii) the
Official Committee of Equity Security Holders for the Chapter 11 cases of the Acquired Business and
their professionals, (iv) the Committee of Pre-Petition Senior Secured Lenders for the Chapter 11
cases of the Acquired Business and their professionals, or (v) the lenders providing the debtor in
possession financing facility to the Acquired Business in connection with the Chapter 11 cases and
their professionals. Notwithstanding the foregoing, you may disclose this Commitment Letter or a
summary of the terms thereof and a summary of the terms of the Fee Letter (other than fee amounts),
to the bankruptcy court (the “Bankruptcy Court”) administering the Chapter 11 cases of the
Acquired Business and in any disclosure statement filed in connection with such Chapter 11 cases,
provided that to the extent it is necessary to disclose the Fee Letter or a summary of the
terms thereof to the Bankruptcy Court, any statutory committee appointed in such Chapter 11 cases
and the applicable U.S. Trustee for purposes of obtaining approval to pay any fees provided for
therein or otherwise, you agree to take such reasonable actions as necessary to prevent the Fee
Letter from becoming publicly available, including, without limitation, the filing of a motion or
an ex parte request pursuant to Sections 105(a) and 107(b) of the Bankruptcy Code and Bankruptcy
Rule 9018 seeking an order of the Bankruptcy Court authorizing you to file the Fee Letter under
seal (it being

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understood that the issuance of such order will be subject to the approval of the Bankruptcy
Court). You agree to inform all such persons who receive information concerning the Commitment
Parties, this Commitment Letter or the Fee Letter that such information is confidential and may not
be used for any purpose other than in connection with the Transaction and may not be disclosed to
any other person. The Commitment Parties agree on behalf of themselves and each of their
affiliates to use all non-public information provided to them by or on behalf of Sponsor, Holdings,
the Acquired Business or their subsidiaries solely for the purpose of providing the services which
are the subject of this Commitment Letter and to treat confidentially such information in
accordance with their customary banking practices. The provisions of this paragraph shall survive
any termination or completion of the financing provided by this Commitment Letter.

Indemnity.

Regardless of whether the Revolving Credit Facility closes, you agree to (a) indemnify, defend and
hold each of the Commitment Parties, each Initial Lender, and their respective affiliates and the
principals, directors, officers, employees, representatives, agents and third party advisors of
each of them (each, an “Indemnified Person”), harmless from and against all losses,
disputes, claims, damages, liabilities and related reasonable out-of-pocket expenses (including,
but not limited to, reasonable attorneys’ fees) which may be incurred by, or asserted against, any
such Indemnified Person in connection with, arising out of, or relating to, this Commitment Letter,
the Fee Letter, the Revolving Credit Facility, the use or the proposed use of the proceeds thereof,
the Transaction, any other transaction contemplated by this Commitment Letter, any other
transaction related thereto and any claim, litigation, investigation or proceeding relating to any
of the foregoing (each, a “Claim”, and collectively, the “Claims”), regardless of
whether such Indemnified Person is a party thereto, and (b) reimburse each Indemnified Person for
all reasonable out-of-pocket legal and other expenses incurred by it in connection with
investigating, preparing to defend or defending, or providing evidence in or preparing to serve or
serving as a witness with respect to, any lawsuit, investigation, claim or other proceeding
relating to any of the foregoing (each, an “Expense”); provided that no Indemnified
Person shall be entitled to indemnity hereunder in respect of any Claim or Expense to the extent
that the same is found by a final, non-appealable judgment of a court of competent jurisdiction to
have resulted from the gross negligence or willful misconduct of such Indemnified Person or any of
its affiliates or any of their respective principals, directors, officers, employees,
representatives, agents or third party advisors. Under no circumstances shall the Commitment
Parties or any of their respective affiliates be liable to you for any punitive, exemplary,
consequential or indirect damages that may be alleged to result in connection with, arising out of,
or relating to, any Claims, this Commitment Letter, the Fee Letter, the Revolving Credit Facility,
the use or the proposed use of the proceeds thereof, the Transaction, any other transaction
contemplated by this Commitment Letter and any other transaction related thereto. Furthermore, you
hereby acknowledge and agree that the use of electronic transmission is not necessarily secure and
that there are risks associated with such use, including risks of interception, disclosure and
abuse. You agree to assume and accept such risks by hereby authorizing the transmission of
electronic transmissions, and you agree that each of the Commitment Parties or any of their
respective affiliates will not have any liability for any damages arising from the use of such
electronic transmission systems. If an Indemnified Person shall be indemnified in respect of any
Claim or Expense and such Claim or Expense is found by a final, non-appealable judgment of a court
of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such
Indemnified Person or any of its affiliates or any of their respective principals, directors,
officers, employees, representatives, agents or third party advisors, then such Indemnified Person
shall refund all amounts received by it in respect of such indemnification in excess of those to
which it shall have been entitled under the terms of this paragraph.

Sharing Information; Absence of Fiduciary Relationship.

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You acknowledge that the Commitment Parties and their affiliates may be providing debt financing,
equity capital or other services to other companies in respect of which you may have conflicting
interests regarding the transactions described herein and otherwise. None of the Commitment
Parties or any of their respective affiliates will furnish confidential information obtained from
you, Holdings, Sponsor, the Acquired Business and your and their respective officers, directors,
employees, attorneys, accountants or other advisors by virtue of the transactions contemplated by
this Commitment Letter or its other relationships with you to other companies. You also acknowledge
that none of the Commitment Parties or any of their respective affiliates has any obligation to use
in connection with the transactions contemplated by this Commitment Letter, or furnish to you,
Holdings, Sponsor, the Acquired Business and your and their respective officers, directors,
employees, attorneys, accountants or other advisors, confidential information obtained by the
Commitment Parties or any of their respective affiliates from other companies.

You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between
you, on the one hand, and or any of the Commitment Parties, on the other hand, has been or will be
created in respect of any of the transactions contemplated by this Commitment Letter, irrespective
of whether the Commitment Parties and/or their respective affiliates have advised or are advising
you on other matters and (b) you will not bring or otherwise assert any claim against any of the
Commitment Parties for breach of fiduciary duty or alleged breach of fiduciary duty in respect of
any of the transactions contemplated by this Commitment Letter.

Assignments and Amendments.

This Commitment Letter shall not be assignable by you without the prior written consent of us (and
any purported assignment without such consent shall be null and void), such consent not to be
unreasonably withheld in connection with any assignment to an affiliate of Holdings, and is
intended to be solely for the benefit of the parties hereto and is not intended to confer any
benefits upon, or create any rights in favor of, any person other than the parties hereto, Holdings
and the Indemnified Persons. The Initial Lender may transfer and assign its commitment hereunder,
in whole or in part, to any of its affiliates or to any prospective Lender reasonably acceptable to
you in connection with the Primary Syndication or otherwise, provided that no such
assignment shall release the Initial Lender from its obligation to fund its commitment hereunder.

This Commitment Letter may not be amended or waived except by an instrument in writing signed by
you and us. The Commitment Parties may perform the duties and activities described hereunder
through any of their respective affiliates and the provisions of the paragraph entitled “Indemnity”
shall apply with equal force and effect to any of such affiliates so performing any such duties or
activities.

Counterparts and Governing Law.

This Commitment Letter may be executed in counterparts, each of which shall be deemed an original
and all of which counterparts shall constitute one and the same document. Delivery of an executed
signature page of this Commitment Letter by facsimile or electronic (including “PDF”) transmission
shall be effective as delivery of a manually executed counterpart hereof.

The laws of the State of New York shall govern all matters arising out of, in connection with or
relating to this Commitment Letter, including, without limitation, its validity, interpretation,
construction, performance and enforcement.

Venue and Submission to Jurisdiction.

-7-

 

You consent to the exclusive jurisdiction and venue of the Bankruptcy Court, and in the event that
the Bankruptcy Court declines to exercise jurisdiction or there is reason to believe that it would
decline to exercise jurisdiction, to the exclusive jurisdiction and venue of the state or federal
courts located in the City of New York to hear and determine any claims or disputes between or
among any of the parties hereto pertaining to this Commitment Letter, the Fee Letter, any
transaction relating hereto or thereto, any other financing related thereto, and any investigation,
litigation, or proceeding in connection with, related to or arising out of any such matters,
provided, that you acknowledge that any appeal from those courts may have to be heard by a
court located outside of such jurisdiction. You expressly submit and consent in advance to such
jurisdiction in any action or suit commenced in any such court, and hereby waive any objection,
which either of them may have based upon lack of personal jurisdiction, improper venue or
inconvenient forum.

Waiver of Jury Trial.

THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS COMMITMENT LETTER, THE
FEE LETTER, THE REVOLVING CREDIT FACILITY AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY. THIS
WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

Survival.

The provisions of this letter set forth under this heading and the headings “Syndication”,
“Information”, “Expenses”, “Confidentiality”, “Indemnity”, “Assignments and Amendments”,
“Counterparts and Governing Law”, “Venue and Submission to Jurisdiction” and “Waiver of Jury Trial”
shall survive the termination or expiration of this Commitment Letter and shall remain in full
force and effect regardless of whether the Revolving Credit Facility closes or the Revolving Credit
Facility Documentation shall be executed and delivered; provided that in the event the
Revolving Credit Facility closes or the Revolving Credit Facility Documentation shall be executed
and delivered, the provisions under the heading “Syndication” shall survive only until the
completion of the Primary Syndication and the compensation, expense reimbursement and
indemnification provisions herein shall be superseded by the provisions of the Revolving Credit
Facility Documentation upon effectiveness thereof.

Integration.

This Commitment Letter and the Fee Letter supersede any and all prior discussions, negotiations,
understandings or agreements, written or oral, express or implied, between or among the parties
hereto and any other person as to the subject matter hereof.

Patriot Act.

We hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L.
107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), each Lender may be required
to obtain, verify and record information that identifies each Borrower, which information includes
the name, address, tax identification number and other information regarding such Borrower that
will allow such Lender to identify such Borrower in accordance with the PATRIOT Act. This notice
is given in accordance with the requirements of the PATRIOT Act and is effective as to each Lender.

Rights of Holdings.

-8-

 

The parties hereto acknowledge and agree that this Commitment Letter is being entered into in
connection with the Acquisition pursuant to which Holdings intends to acquire stock of the Company
and that Holdings is an intended third party beneficiary of the rights of the Borrowers, and the
obligations of the Commitment Parties to the Borrowers, under this Commitment Letter.
Notwithstanding anything to the contrary contained in this Commitment Letter, (a) any waiver or
amendment of this Commitment Letter shall require the prior written consent of Holdings (and any
purported waiver or amendment hereof without such consent shall be null and void) and (b) any
requirements contained in this Commitment Letter to consult with, or obtain the approval of, the
Borrowers with respect to any matter, or that any matter be reasonably acceptable to the Borrowers,
or any similar rights of the Borrowers arising hereunder, including requirements (i) to consult
with the Borrowers in connection with the Primary Syndication, (ii) that Lenders be reasonably
acceptable to the Borrowers, and (iii) to obtain the Borrowers’ approval of any additional matters
with respect to the Revolving Credit Facility that are not covered by the provisions hereof or the
Term Sheet, shall also require consultation with or approval by or reasonable acceptability to (as
the case may be) Holdings with respect to such matter. The parties hereto acknowledge and agree
that the execution and delivery of this Commitment Letter by Holdings shall confer on Holdings the
benefit of and right to enforce the provisions of this Commitment Letter.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

-9-

 

Please indicate your acceptance of the terms hereof and of the Fee Letter by signing in the
appropriate space below and in the Fee Letter and returning to GE Capital on behalf of the
Commitment Parties such signature pages by 5:00 p.m., New York time on September 12, 2008. Unless
extended in writing by the Commitment Parties, the commitments contained herein shall automatically
expire on the first to occur of (a) the date and time referred to in the previous sentence unless
you shall have executed and delivered a copy of this Commitment Letter and the Fee Letter as
provided above and (b) 5:00 p.m. New York time on February 9, 2009.

	 	 	 	 	 
	Sincerely,

GENERAL ELECTRIC CAPITAL CORPORATION

 	 	 
	By:  	/s/ Michelle Handy	 	 
	 	Name:  	Michelle Handy	 	 
	 	Title:  	Duly Authorized Signatory	 	 
	 
	AGREED AND ACCEPTED

THIS 12th DAY OF SEPTEMBER, 2008.

INTERSTATE BAKERIES CORPORATION

 	 	 
	By:  	/s/ Craig D. Jung	 	 
	 	Name:  	Craig D. Jung	 	 
	 	Title:  	Chief Executive Officer	 	 
	 
	INTERSTATE BRANDS CORPORATION

 	 	 
	By:  	/s/ Craig D. Jung	 	 
	 	Name:  	Craig D. Jung	 	 
	 	Title:  	Chief Executive Officer & President	 	 
	 
	AGREED AND ACCEPTED, for the purposes of the provisions set forth under heading “Rights of
Holdings” only.

THIS 12th DAY OF SEPTEMBER, 2008.

IBC INVESTORS I, LLC

 
	By:  	/s/ Christropher Minnetian	 	 
	 	Name:  	Christropher Minnetian	 	 
	 	Title:  	Authorized Signatory	 	 

 

Exhibit A to Commitment Letter

$125,000,000 Senior Secured Revolving Credit Facility

Summary of Terms

This is the Term Sheet described as Exhibit A in that certain letter dated the date hereof, of
which this Exhibit A is a part. Capitalized terms used herein without definition shall have the
meanings assigned to such terms in the letter referenced above.

	 	 	 
	Borrowers:

	 	Reorganized Interstate Bakeries Corporation (the “Company”) and reorganized
Interstate Brands Corporation (together with the Company, the “Borrowers”).
	 
	 	 
	Guarantors:

	 	Each of the Borrowers’ existing and subsequently acquired or formed direct and
indirect domestic wholly owned subsidiaries, subject to exceptions that may be agreed upon
with respect to immaterial subsidiaries (together, the “Guarantors”, and together
with the Borrowers, the “Loan Parties”).
	 
	 	 
	Administrative Agent
and Collateral Agent:

	 	General Electric Capital Corporation (“GE Capital” and, in
such capacities, collectively, “Agent”).
	 
	 	 
	Lead Arranger
and Book-Running Manager:

	 	GE Capital Markets, Inc. (“GECM”).
	 
	 	 
	Lenders:

	 	A syndicate of banks, financial institutions or other institutional investors
(including GE Capital individually) arranged by GECM and reasonably acceptable to Holdings
and the Borrowers.
	 
	 	 
	Credit Facility:

	 	Revolving Credit Facility: A revolving credit facility of $125,000,000 (the
“Revolving Credit Facility”) under which borrowings may be made and letters of
credit may be issued, subject to Availability (as defined below), from time to time during
the period from the Closing Date until the fifth anniversary of the Closing Date.
	 
	 	 
	 

	 	A.  Letters
of Credit. A sub-facility of $75,000,000 of the
Revolving Credit Facility will be available for the
issuance of letters of credit (“Letters of
Credit”) for the account of the Loan Parties.
No Letter of Credit will, without the consent of the
issuing Lender, have a termination date that is
later than (a) unless cash collateralized (in amount
equal to 105% of the undrawn face amount) on or
prior to seventh day prior to the termination date
of the Revolving Credit Facility, seven (7) days
prior to the termination date of the Revolving
Credit Facility and (b) other than through the

 

 

	 	 	 
	 

	 	operation of “evergreen provisions” (which shall in no
event extend beyond the date referred to in clause (a)
above), one (1) year after the date of issuance. Any
such Letters of Credit shall reduce Availability under
the Revolving Credit Facility on a dollar-for-dollar
basis. Drawings under any Letter of Credit shall be
reimbursed by the applicable Borrower (whether from its
own funds or with the proceeds of the Loans) within one
business day of such drawing (or two business days if
notice of such drawing is received by such Borrower
after the deadline for a Base Rate (as defined below)
borrowing) and any unreimbursed drawing shall be deemed
a request for a Loan in the amount of such drawing. To
the extent the Borrowers do not so reimburse the issuing
Lender, the Lenders under the Revolving Credit Facility
shall be irrevocably and unconditionally obligated to
reimburse the issuing Lender on a pro rata basis.
	 
	 	 
	 

	 	B.   Swing
Line Loans. A sub-facility of $15,000,000 of the
Revolving Credit Facility, subject to Availability,
will be available to the Borrowers for swing line
loans from GE Capital. Except for purposes of
calculating the Commitment Fee (as defined below),
any such swing line loans shall reduce Availability
under the Revolving Credit Facility on a
dollar-for-dollar basis.

	 
	 	 
	Availability:

	 	Borrowing availability under the Revolving Credit Facility will be limited to (a)
the sum of (i) 85% of the Loan Parties’ eligible accounts receivable and (ii) the lesser
of (x) 60% of the Loan Parties’ eligible inventory valued at the lower of cost (FIFO) or
market, and (y) 85% of the net orderly liquidation value for eligible inventory of the
Loan Parties, less (b) appropriate reserves relating to the foregoing as determined by
Agent in its Permitted Discretion ((a) less (b), the “Borrowing Base”), but not to
exceed the maximum amount of the Revolving Credit Facility, less (c) the sum of
outstanding Loans and Letter of Credit exposure (collectively, “Availability”).
	 
	 	 
	 

	 	“Permitted Discretion” shall mean a determination
made by Agent in good faith and in the exercise of its
commercially reasonable discretion.
	 
	 	 
	 

	 	Agent will retain the right from time to time to adjust
standards of eligibility and to establish reserves against
Availability in its Permitted Discretion.
	 
	 	 
	Use of Proceeds:

	 	Advances under the Revolving Credit Facility made after the Closing Date
(collectively, the “Loans”) will be used solely for working capital and general
corporate purposes.
	 
	 	 
	Interest:

	 	Interest will be payable on the unpaid principal amount of all Loans at a rate per
annum equal to, at the option of the

- 2 -

 

	 	 	 
	 

	 	Borrowers, (a) the Base Rate (as defined below)
plus the Applicable Margin (as defined below),
payable quarterly in arrears or (b) the Eurodollar Rate (as
defined below) plus the Applicable Margin, payable
at the end of the relevant interest period, but in any
event, at least quarterly, provided that upon the
occurrence and during the continuation of an event of
default, at the direction of the Required Lenders, (i) the
Administrative Agent shall convert all Eurodollar Rate
Loans to Base Rate Loans and (ii) the Borrowers shall be
prohibited from borrowing at the Eurodollar Rate.
	 
	 	 
	 

	 	“Base Rate” means a floating rate of interest per
annum equal to the higher of (i) the rate publicly quoted
from time to time by The Wall Street Journal as the
“base rate on corporate loans posted by at least 75% of the
nation’s 30 largest banks” and (ii) the federal funds rate
plus 50 basis points. “Eurodollar Rate” means, for
each interest period, the offered rate for deposits in U.S.
dollars in the London interbank market for the relevant
interest period which is published by the British Bankers’
Association, and currently appears on Reuters Screen
LIBOR01 Page, as of 11:00 a.m. (London time) on the day
which is two (2) business days prior to the first day of
such interest period adjusted for reserve requirements.
When selecting the Eurodollar Rate option, the Borrowers
will be entitled to choose 1, 2, 3 or 6 (or, if available
to all Lenders, 9 or 12) month interest periods.
	 
	 	 
	 

	 	All interest will be calculated based on a 360-day year
(or, in the case of Base Rate Loans calculated by reference
to the prime rate, a 365/366-day year) and actual days
elapsed. The Revolving Credit Facility Documentation will
set forth appropriate detail describing the exact method of
calculation and relevant reserve requirements for the
interest rates referred to above as well as Eurodollar Rate
breakage provisions (excluding loss of anticipated
profits), Eurodollar Rate borrowing mechanics and other
Eurodollar Rate definitions.
	 
	 	 
	 

	 	The “Applicable Margin” (on a per annum basis)
means with respect to Loans under the Revolving Credit
Facility, 2.25% per annum, in the case of Base Rate Loans,
and 3.25% per annum, in the case of Eurodollar Rate Loans;
	 
	 	 
	 

	 	Adjustments in the Applicable Margins will be implemented
quarterly, on a prospective basis, from and after the
completion of the first full fiscal quarter following the
Closing Date, on the 3rd business day after the date of
delivery of quarterly or annual financial statements (and
related compliance certificates) evidencing the need for
such adjustments in accordance with the pricing grid set
forth below (the “Pricing Grid”). Failure to
timely deliver such financial statements shall, in addition
to any other remedy provided for in the Revolving Credit
Facility Documentation, result in an increase of the
Applicable Margins to the highest level of such pricing

- 3 -

 

	 	 	 
	 

	 	grid until such financial statements are delivered.
Downward adjustments will only take effect (and only remain
effective) provided no event of default has occurred and is
continuing. The Convertible Debt shall not be included as
debt in calculating Total Leverage Ratio.

	 	 	 	 	 	 	 	 	 
	Total Leverage Ratio	 	 	Base Rate:	 	 	Eurodollar Rate:
	Greater than 8.00:1.00
	 	 	2.50	%	 	 	3.50	%
	Between 8.00:1.00 and 6.50:1.00
	 	 	2.25	%	 	 	3.25	%
	Less than 6.50:1.00
	 	 	2.00	%	 	 	3.00	%

	 	 	 
	Default Rate:

	 	From and after the occurrence of a payment or bankruptcy event of default, or, at
the election of Agent or the Required Lenders for any other event of default, all amounts
under the Revolving Credit Facility Documentation shall bear interest at the applicable
interest rate (including those obligations which are determined by reference to the rate
applicable to any other obligation) plus 2% per annum and the Letter of Credit Fee (as
defined below) shall be increased by 2% per annum.
	 
	 	 
	Interest Rate Protection:

	 	The Company shall use commercially reasonable efforts to obtain,
within 180 days following the Closing Date (or such longer period as agreed to by Agent in
its sole discretion), interest rate protection agreements on terms and with counterparties
reasonably satisfactory to Agent in effect for the three years following the Closing Date
covering a notional amount that equals at least 50% of the aggregate principal amount of
the Company’s consolidated long-term indebtedness (other than the Revolving Credit
Facility). For the avoidance of doubt, any Lender shall be a reasonably acceptable
counterparty for an interest rate protection agreement.
	 
	 	 
	Fees:

	 	In addition to the fees payable to GE Capital as specified in the Fee Letter, the
Borrowers shall pay the following fees:
	 
	 	 
	 

	 	A fee of 0.50% per annum of the average daily balance of
the unused portion of the Revolving Credit Facility will be
payable quarterly in arrears (the “Commitment
Fee”).
	 
	 	 
	 

	 	A Letter of Credit fee (the “Letter of Credit Fee”)
will be payable on the average daily undrawn face amount of
all outstanding Letters of Credit at a rate per annum equal
to the Applicable Margin for Loans under the Revolving
Credit Facility bearing interest based on the Eurodollar
Rate. Such fee will be due and payable quarterly in
arrears. A fronting fee equal to an amount to be agreed
per annum on the face amount of each Letter of Credit shall
be payable quarterly in arrears to the issuer of such
Letter of Credit for its own account. The

- 4 -

 

	 	 	 
	 

	 	Borrowers shall also pay certain fees, documentary and
processing charges to each issuer of Letters of Credit as
separately agreed with such issuer or in accordance with
such issuer’s standard schedule at the time of
determination thereof.
	 
	 	 
	 

	 	All fees will be calculated based on a 360-day year and
actual days elapsed.
	 
	 	 
	Mandatory Prepayments:

	 	If the Loans and undrawn Letters of Credit under the Revolving Credit
Facility exceed the Borrowing Base at any time, the Borrowers shall prepay the Loans to the
extent of such excess.
	 
	 	 
	 

	 	Mandatory prepayments shall be accompanied by (A) accrued
interest on the amount prepaid to the date of prepayment
and (B) any breakage costs (excluding loss of anticipated
profits) in connection with any prepayments of Eurodollar
Rate Loans.
	 
	 	 
	Voluntary Prepayments:

	 	Voluntary prepayments of the Loans and voluntary reductions of the
unutilized portion of the commitments under the Revolving Credit Facility will be permitted at
any time provided that the Borrowers’ voluntary prepayments are accompanied by (A) accrued
interest on the amount prepaid to the date of prepayment and (B) any breakage costs (excluding
loss of anticipated profits) in connection with any voluntary prepayments of Eurodollar Rate
Loans.
	 
	 	 
	 

	 	Voluntary prepayments shall be applied as directed by
the Borrowers.
	 
	 	 
	Collateral:

	 	All obligations of the Borrowers under the Revolving Credit Facility and under any
interest rate protection, or certain other hedging arrangements to be agreed, and under any
cash management arrangements, entered into with or supported by Agent or an entity that is a
Lender at the time such arrangements are entered into (or any affiliate of the foregoing) and
of the Guarantors under the guarantees will be secured by:
	 
	 	 
	 

	 	(i) first priority (subject to permitted liens) perfected
security interests in substantially all of the following
property of each Borrower and each Guarantor, whether now
existing or hereafter arising (the “First Priority
Collateral”): (a) all accounts and other receivables
for goods sold or leased or services rendered whether or
not earned (“Receivables”); (b) all inventory of
any kind wherever located (“Inventory”); (c) all
instruments, chattel paper and other contracts evidencing,
or substituted for, any Receivable; (d) all guarantees,
letters of credit, security and other credit enhancements
for the Receivables; (e) all documents of title for any
Inventory; (f) all claims and causes of action in any way
relating to any of the Receivables or Inventory; (g) all
bank accounts into which any proceeds of Receivables or
Inventory are deposited (including

 - 5 -

 

	 	 	 
	 

	 	all cash and other funds
on deposit therein), except in each case
for any bank accounts and any cash or other funds that
constitute identifiable proceeds of Second Priority
Collateral (as defined below); (h) all books and records
relating to any of the foregoing; and (i) all
substitutions, replacements, accessions, products or
proceeds (including, without limitation, insurance
proceeds) of any of the foregoing. In addition, GE Capital
would have the right to utilize, at no cost or expense, any
tradenames, trademarks, copyrights or other intellectual
property to the extent necessary or appropriate in order to
sell, lease or otherwise dispose of any of the First
Priority Collateral; and
	 
	 	 
	 

	 	(ii) second priority (subject to permitted liens) perfected
security interests and mortgages (where applicable) in all
collateral securing from time to time the Term Loan
Facility on a first lien basis (the “Second Priority
Collateral” and, together with the First Priority
Collateral, the “Collateral”). For purposes of
clarity, the Second Priority Collateral shall include all
collateral pledged with respect to the Cash Flow
Facilities.
	 
	 	 
	 

	 	Within 60 days following the Closing Date (or such longer
period as may be reasonably acceptable to Agent), (a) the
Borrowers will maintain a main concentration account with a
bank reasonably acceptable to Agent and shall, and shall
cause each of the Guarantors to, maintain, subject to
certain exceptions to be agreed, deposit accounts into
which all proceeds of First Priority Collateral are paid
with one or more banks reasonably acceptable to Agent, in
each case who have accepted the assignment of such account
to Agent for the benefit of the Lenders and (b) the
Borrowers shall obtain deposit account control agreements
reasonably acceptable to Agent over such accounts. In the
event that (i) an event of default shall have occurred and
be continuing or (ii) Availability shall be less than 15%
of the Borrowing Base, funds deposited into any such
depository account will be swept on a daily basis into a
blocked account with Agent and used to reduce amounts owing
under the Revolving Credit Facility; provided that
such requirement will cease to apply (unless subsequently
triggered again) (i) in the case of an event of default
trigger, if such event of default shall have been cured or
waived or (ii) in the case of an Availability trigger, if
Availability is greater than 15% of the Borrowing Base for
30 consecutive days.
	 
	 	 
	 

	 	Notwithstanding the foregoing, the Borrowers and the
Guarantors will not be required to take any action to
perfect a security interest in any asset where Agent and
the Borrowers agree the cost of perfection is excessive in
relation to the benefit afforded thereby.

 - 6 -

 

	 	 	 
	 

	 	All of the above-described pledges, security interests and
mortgages shall be created on terms, and pursuant to
documentation, reasonably satisfactory to the Agent
(including, in the case of real property, by customary
items such as satisfactory title insurance and surveys),
and none of the First Priority Collateral shall be subject
to any other liens, claims or encumbrances, except those
related to the Cash Flow Facilities and permitted liens and
encumbrances reasonably acceptable to Agent to be agreed in
the Revolving Credit Facility Documentation.
	 
	 	 
	Intercreditor Agreements:

	 	The lien priority, relative rights and
other creditors’ rights issues in respect
of the Collateral will be set forth in
intercreditor agreements on terms and
conditions reasonably satisfactory to
Agent (the “Intercreditor Agreements”).
	 
	 	 
	Conditions Precedent to Closing:

	 	 As set forth in the Commitment Letter
under the heading “Conditions” and in
Schedule I hereto (the date upon which
all such conditions precedent shall be
satisfied and the initial funding under
the Revolving Credit Facility shall take
place, the “Closing Date”).
	 
	 	 
	Conditions Precedent to each
Extension of Credit under the
Revolving Credit Facility:

	 	

All of the representations and warranties
in the Revolving Credit Facility
Documentation shall be true and correct
in all material respects; no default or
event of default shall be continuing; and
delivery of any relevant borrowing
notices or letter of credit requests.
	 
	 	 
	Representations and Warranties:

	 	 The following representations and
warranties will apply to the Company and
its subsidiaries, subject to materiality
thresholds, baskets and exceptions to be
agreed upon:
	 
	 	 
	 

	 	Valid existence, compliance with law, power to execute,
authorization, execution and enforceability of the
Revolving Credit Facility Documentation (and accuracy of
representations and warranties thereunder, status of
obligations under the Revolving Credit Facility as “senior
debt” and no conflict thereof with material agreements or
applicable law), ownership of subsidiaries, accuracy of
financial statements, absence of material adverse effect
(“material adverse effect” to be defined for the purposes
hereof and the Revolving Credit Facility Documentation as
any event, change or occurrence that, individually or in
the aggregate, has had or could reasonably be expected to
have a material adverse effect on (a) the business, assets,
results of operations or financial condition of the Company
and its subsidiaries, taken as a whole, (b) the ability of
the Borrowers and the Guarantors, when taken as a whole, to
perform their obligations under any of the Revolving Credit
Facility Documentation and (c) the validity or
enforceability of any of the Revolving Credit Facility
Documentation or the

 - 7 -

 

	 	 	 
	 

	 	rights and remedies of Agent, the Lenders and the issuing
Lenders under any of the Revolving Credit Facility
Documentation), solvency of the Loan Parties on a
consolidated basis on the Closing Date, absence of material
litigation, taxes, compliance with margin regulations,
absence of burdensome restrictions and defaults,
inapplicability of Investment Company Act, insurance, labor
matters, ERISA, environmental matters, necessary rights to
intellectual property, title to and ownership of
properties, accuracy in all material respects of all
information provided when taken as a whole and no violation
of the Patriot Act or any other United States law relating
to terrorism, sanctions and money laundering.
	 
	 	 
	Affirmative Covenants:

	 	The following affirmative covenants will apply to the Company and its
subsidiaries, subject to materiality thresholds, baskets and exceptions to be agreed upon:
	 
	 	 
	 

	 	Preservation of corporate existence, compliance with
material applicable laws (including environmental laws),
payment of taxes and other obligations, maintenance of
properties, permits and customary insurance, access to
books and records and visitation rights, use of proceeds,
further assurances (including provision of additional
collateral and guaranties consistent with the paragraph
above entitled “Collateral” and delivery of landlord,
mortgagee and bailee waivers deemed necessary by Agent),
maintenance of accounts (including deposit, security and
cash collateral accounts) and interest rate contracts in
accordance with “Interest Rate Protection” on page 4 above.
	 
	 	 
	Financial Performance Covenant:

	 	 

If Availability under the Revolving Credit
Facility is equal to or greater than 12.5%
of the Borrowing Base, no financial
covenants will apply; if Availability
under the Revolving Credit Facility is
less than 12.5% of the Borrowing Base, a
minimum fixed charge coverage ratio of 1.1
to 1.0 will apply to the Company and its
consolidated subsidiaries for the trailing
thirteen fiscal periods then most recently
ended until such time that Availability is
greater than 12.5% of the Borrowing Base
for 10 consecutive days; provided that in
the event Availability under the Revolving
Credit Facility falls below 12.5% of the
Borrowing Base as of any date, any failure
to satisfy such minimum fixed charge
coverage ratio shall not result in a
default or event of default under the
Revolving Credit Facility so long as the
Borrowers increase Availability to at
least 12.5% of the Borrowing Base within a
15 day grace period following such date.
	 
	 	 
	Reporting Requirements:

	 	The following financial and other
reporting requirements will apply to the
Company and its subsidiaries, subject to
materiality thresholds, qualifications and
exceptions to be agreed upon:

 - 8 -

 

	 	 	 
	 

	 	Delivery of monthly (or weekly if Availability is less than
the greater of (a) 15% of the Borrowing Base or (b)
$10,000,000) borrowing base certificates; delivery of
monthly financial statements within 45 days after the end
of each fiscal month; delivery of quarterly financial
statements within 45 days after the end of each fiscal
quarter; delivery of annual audited financial statements
within 120 days after the end of each fiscal year,
provided that the audited financial statements for
the fiscal year ending May 2009 shall be delivered within
180 days after the end of such fiscal year,
provided further that if the audited
financial statements for the fiscal year ending May 2009
are not delivered within 180 days after the end of such
fiscal year, an availability block of $35,000,000 shall be
established until such time as the audited financial
statements for such fiscal year are delivered to Agent (no
default or event of default under the Revolving Credit
Facility shall result from the failure to deliver the
audited financial statements for such fiscal year within
180 days after end of such fiscal year, provided
that failure to deliver the audited financial statements
for such fiscal year within 365 days after the end of such
fiscal year shall be an event of default); delivery of
compliance certificates; delivery of management letters;
delivery of an annual budget (including assumptions made in
the build-up of such budget); delivery of annual insurance
reports; delivery of quarterly schedules of intercompany
loan balances; delivery of copies of certain reports sent
to other lenders including the lenders under the Cash Flow
Facilities; delivery of notices with respect to defaults,
mandatory prepayment events, material litigation, taxes,
material labor matters, and certain ERISA or environmental
events; delivery of monthly collateral reporting package to
be determined upon completion of field examinations and
inventory appraisals; and delivery of other information
reasonably requested by Agent.
	 
	 	 
	Negative Covenants:

	 	The following negative covenants will apply to the Company and its
subsidiaries, subject to materiality thresholds, baskets and exceptions to be agreed upon:
	 
	 	 
	 

	 	Limitations on indebtedness (including guaranties and
speculative hedging transactions), liens, investments
(including loans), asset dispositions (including sale and
leaseback transactions), restricted payments (other than
management fees) in respect of capital stock (including
dividends, redemptions and repurchases), prepayments of
indebtedness (including redemptions and repurchases),
fundamental corporate changes (including mergers,
consolidations or acquisitions), joint ventures and
creation of subsidiaries, changes in nature of business,
transactions with affiliates, third-party restrictions on
indebtedness, liens, investments or restricted payments,
modification of constituent documents and certain other
agreements, changes in accounting treatment, reporting
practices or fiscal year (other than in accordance with

 - 9 -

 

	 	 	 
	 

	 	GAAP) and compliance with margin regulations and ERISA and
environmental laws.
	 
	 	 
	 

	 	The negative covenants will permit, among other things,
(i) payment of management fees in an amount of up to
$1,000,000 per quarter, provided that no Event of
Default has occurred and is continuing, and payments of
out-of-pocket expenses incurred by Sponsor, (ii)
repurchases of equity securities from employees in the
event of death, disability or termination of employment in
a maximum amount to be determined by Agent,
provided no Event of Default has occurred and is
continuing, (iii) payment of amounts to Holdings necessary
to pay taxes or tax distributions, operating expenses and
other specified obligations to be agreed, and (iv) making
of restricted payments, investments and prepayments of
subordinated debt in each case with the proceeds of (A)
equity issuances by, or capital contributions to, the
Company and (B) so long as (i) no Event of Default has
occurred and is continuing and (ii) Availability plus
unrestricted cash on hand is at least equal to an amount to
be determined, the Company’s share of Excess Cash Flow not
required to prepay the Term Loan Facility.
	 
	 	 
	Events of Default:

	 	The following events of default will apply to the Company and its subsidiaries,
subject to materiality thresholds, baskets, exceptions and grace periods to be agreed upon:
	 
	 	 
	 

	 	Failure to pay principal when due; failure to pay interest
or any other amount after a grace period of 5 days;
representations and warranties are incorrect in any
material respect when made or deemed made; failure to
comply with covenants in the Revolving Credit Facility
Documentation (subject to a 30 day grace period for certain
affirmative covenants to be determined by Agent);
cross-default to the Cash Flow Facilities and, except for
payment defaults, there will be no cross-defaults to the
Cash Flow Facilities unless any events of default have
occurred and continued thereunder uncured or unwaived for a
period of 30 consecutive days; failure to satisfy or stay
execution of judgments; bankruptcy or insolvency; actual or
asserted invalidity or impairment of any part of the
Revolving Credit Facility Documentation (including the
failure of any lien in an amount to be determined to remain
perfected); and change of control.
	 
	 	 
	Expenses:

	 	Each Borrower and each Guarantor shall pay or reimburse GE Capital and GECM for all
reasonable out-of-pocket costs and expenses incurred by GE Capital and GECM (including
reasonable attorneys’ fees and expense for a single counsel for GE Capital and GECM, plus, if
necessary one local counsel in each applicable jurisdiction) in connection with (a) the
preparation, negotiation and execution of the Revolving Credit Facility Documentation, (b) the
syndication and funding of the

 - 10 -

 

	 	 	 
	 

	 	Revolving Credit Facility (including Intralinks® or
expenses of a similar service) and the issuance of Letters
of Credit, (c) the creation, perfection and protection of
the liens on the Collateral (including all search, filing
and recording fees) and (d) the on-going administration of
the Revolving Credit Facility Documentation (including the
preparation, negotiation and execution of any amendments,
consents, waivers, assignments, restatements or supplements
thereto).
	 
	 	 
	 

	 	In addition, each Borrower and each Guarantor further
agrees to pay or reimburse Agent and each of the Lenders
and issuers of Letters of Credit for all reasonable
out-of-pocket costs and expenses (including reasonable
attorneys’ fees and expenses) in connection with (i) the
enforcement of the Revolving Credit Facility Documentation;
(ii) any refinancing or restructuring of the Revolving
Credit Facility in the nature of a “work-out” or any
insolvency or bankruptcy proceeding and (iii) any legal
proceeding relating to or arising out of the Revolving
Credit Facility or the other transactions contemplated by
the Revolving Credit Facility Documentation, except to the
extent such costs or expenses are determined in a final
non-appealable judgment of a court of competent
jurisdiction to have resulted from the gross negligence or
wilful misconduct of Agent, any Lender or any issuer of a
Letter of Credit.
	 
	 	 
	Indemnity:

	 	Each Borrower and each Guarantor agrees to indemnify and hold harmless Agent, the
Commitment Parties, each Lender and each of their respective affiliates and each of their
respective principals, officers, directors, employees, agents, third party advisors and
representatives (each, an “Indemnified Person”) from and against any and all claims,
damages, disputes, losses, liabilities and related reasonable out-of-pocket expenses
(including, but not limited to, reasonable attorneys’ fees) that may be incurred by or
asserted or awarded against any Indemnified Person (including, without limitation, in
connection with, any investigation, litigation or proceeding or the preparation of any defense
in connection therewith) in each case arising out of or in connection with or relating to the
Revolving Credit Facility Documentation or the transactions contemplated hereby or thereby, or
any use made or proposed to be made with the proceeds of the Revolving Credit Facility, except
to the extent such claim, damage, loss, liability or expense is determined in a final
non-appealable judgment of a court of competent jurisdiction to have resulted from the gross
negligence or wilful misconduct of such Indemnified Person or any of its affiliates or its or
any of its affiliates’ officers, directors, employees, third party advisors, representatives
or agents.
	 
	 	 
	 

	 	If an Indemnified Person shall be indemnified in respect of
any losses, claims damages, liabilities or related expenses
and such losses, claims, damages, liabilities or related
expenses are

 - 11 -

 

	 	 	 
	 

	 	found by a final non-appealable judgment of a court of
competent jurisdiction to have resulted from the gross
negligence or wilful misconduct of such Indemnified Person
or any of its affiliates or its or any of its affiliates’
officers, directors, employees, advisors, representatives
or agents, then such Indemnified Person shall refund all
amounts received by it in respect of such indemnification
in excess of those to which it shall have been entitled
under the terms of such indemnification.
	 
	 	 
	Required Lenders:

	 	Lenders holding more than 50% of total
commitments and/or Loans shall constitute
“Required Lenders” under the Revolving
Credit Facility Documentation. If any
single Lender holds more than 50% of total
commitments and/or Loans, such Lender plus
one additional Lender shall constitute
“Required Lenders” under the Revolving
Credit Facility Documentation.
	 
	 	 
	Miscellaneous:

	 	The Revolving Credit Facility
Documentation will include (a) a waiver of
consequential and punitive damages and
right to a jury trial, (b) customary
agency, set-off and sharing language and
(c) other provisions as are usual and
customary for facilities of this kind.
	 
	 	 
	Lender Replacement:

	 	The Revolving Credit Facility
Documentation will include customary
provisions for replacing non-consenting
Lenders in connection with amendments and
waivers requiring the consent of all
Lenders or of all Lenders directly
affected thereby so long as Lenders
holding more than 50% of the aggregate
amount of commitments under the Revolving
Credit Facility shall have consented
thereto.
	 
	 	 
	Assignments and Participations:

	 	 Lenders will be permitted to make
assignments in a minimum amount of $1
million (unless such assignment is of a
Lender’s entire interest in the Revolving
Credit Facility) to other financial
institutions acceptable to Agent and, so
long as no event of default has occurred
and is continuing, the Borrowers, which
acceptances shall not be unreasonably
withheld or delayed; provided however,
that the approval of the Borrowers shall
not be required in connection with
assignments to other Lenders (or to
affiliates or approved funds of Lenders).
An assignment fee of $3,500 shall be
payable to Agent upon the effectiveness of
any such assignment.
	 
	 	 
	 

	 	The Lenders also shall be permitted to sell participations
in their Loans. Participants shall have the same benefits
as the Lenders with respect to yield protection and
increased cost provisions (except a participant shall not
be entitled to any greater amount than the relevant Lender
would have received if no participation had been sold).
Voting rights of participants shall be limited to certain
matters with respect to which the affirmative vote of all
Lenders would be required.

 - 12 -

 

	 	 	 
	Yield Protection:

	 	The Revolving Credit Facility Documentation
shall contain customary provisions (i)
protecting the Lenders against increased
costs or loss of yield resulting from changes
in reserve, tax, capital adequacy and other
requirements of law and from the imposition
of or changes in withholding or other taxes
(subject in each case to a 90 day limit on
claims and a right of the Borrowers to
replace any Lender making such a claim) and
(ii) indemnifying the Lenders for breakage
costs (excluding loss of anticipated profits)
in connection with, among other things,
prepayment of a Eurodollar Rate borrowing
other than on the last day of an interest
period.
	 
	 	 
	Field Examinations:

	 	Two field examinations may be conducted on an
annual basis at the discretion of Agent to
ensure the adequacy of the Borrowing Base
collateral and related reporting and control
systems, provided that additional field
examinations shall be permitted if (i) an
event of default shall have occurred and be
continuing or (ii) if Availability is less
than the greater of (a) 15% of the Borrowing
Base or (b) $10,000,000. In addition, at any
time when the $35,000,000 availability block
for failure to deliver audited financial
statements for the fiscal year ending May
2009 within 180 days is in place, Agent shall
be permitted to conduct additional field
examinations.
	 
	 	 
	Appraisals:

	 	One inventory appraisals may be conducted on
an annual basis at the discretion of Agent,
provided that additional appraisals shall be
permitted if (i) an event of default shall
have occurred and be continuing or (ii) if
Availability is less than the greater of (a)
15% of the Borrowing Base or (b) $10,000,000.
In addition, at any time when the
$35,000,000 availability block for failure to
deliver audited financial statements for the
fiscal year ending May 2009 is within 180
days is in place, Agent shall be permitted to
conduct additional appraisals.
	 
	 	 
	Governing Law and Submission
to Jurisdiction:

	 	

New York
	 
	 	 
	Counsel to Agent:

	 	Paul, Hastings, Janofsky & Walker LLP

 - 13 -

 

SCHEDULE I

to

Summary of Terms

Conditions to Closing

The availability of the Revolving Credit Facility, in addition to the conditions set forth in the
Commitment Letter and Exhibit A thereto, shall be subject to the satisfaction of the
following additional conditions:

1. Plan of Reorganization. The Bankruptcy Court shall have entered an order (the
“Confirmation Order”) confirming the Plan in accordance with Section 1129 of the Bankruptcy
Code, which order shall have been entered on the docket of the Bankruptcy Court and be in full
force and effect, and shall not have been stayed, reversed, vacated or otherwise modified in any
manner that is materially adverse to the Lenders (without the consent of the Agent, not to be
unreasonably withheld). The Plan (together with all exhibits and other attachments thereto
(including the Projections, but only to the extent that such Projections are less favorable than
those already provided to Agent, as reasonably determined by Agent), as any of the foregoing shall
be amended, modified or supplemented from time to time or any of the terms and conditions thereof
waived (with the consent of the Agent, which consent shall not be unreasonably withheld or delayed)
with respect to any amendment, modification, supplement, or waiver that is materially adverse to
the Lenders, as reasonably determined by Agent), the “Plan Documents”) shall be in form and
substance reasonably acceptable to Agent. The Plan shall have, or contemporaneous with the
effectiveness of the Revolving Credit Facility will, become effective. The transactions
contemplated by the Plan Documents to be concluded on the Closing Date, shall have been consummated
substantially contemporaneously with the effectiveness of the Revolving Credit Facility on the
Closing Date.

2. Other Indebtedness. The Agent shall have received reasonably satisfactory evidence
that the obligations of Interstate Bakeries Corporation and each of its other debtor subsidiaries
with respect to its debtor-in-possession financing facility have been terminated and discharged
and any collateral in respect thereof released. Concurrently with the consummation of the Plan, all
pre-existing indebtedness of Interstate Bakeries Corporation and its subsidiaries (other than
indebtedness permitted to remain outstanding under the Plan and the Revolving Credit Facility
Documentation, which shall include, among other indebtedness, the Cash Flow Facilities and all
indebtedness to be reinstated in connection with the Plan) shall have been repaid, repurchased,
satisfied in full or otherwise discharged, all commitments relating thereto shall have been
terminated, and all liens or security interests related thereto shall have been terminated or
released.

3. Equity and Subordinated Debt Structure. Agent shall have received evidence (a) that
Holdings has provided not less than $130,000,000 in cash financing to the Company, of which at
least $44,200,000 shall be common equity and up to $85,800,000 may be Convertible Debt and (b) that
the Borrowers have consummated the Cash Flow Facilities on terms, conditions and documentation (x)
consistent with (i) with respect to the Term Loan Facility, Exhibit B attached to the commitment
letter dated as of the date hereof among Interstate Bakeries Corporation, Interstate Brands
Corporation, Silver Point Finance I, LLC and Monarch Master Funding Ltd, (ii) with respect to the
Third-Lien Debt, Exhibit H attached to the commitment letter (the “Equity Commitment
Letter”) dated as of the date hereof between IBC Investors I, LLC and Interstate Bakeries
Corporation and (iii) with respect to the Convertible Debt, Exhibit C attached to the Equity
Commitment Letter and (y) reasonably satisfactory to Agent.

4. Receipt of Historical Financial Statements. Agent shall have received and be satisfied
with (a) audited financial statements of the Acquired Business for the fiscal year ended on or
about May 31,

Schedule I-1

 

2008, (b) interim unaudited quarterly financial statements of the Acquired Business for each
subsequent fiscal quarter ended 45 days before the Closing Date and (c) to the extent available,
monthly financial data generated by the Company’s internal accounting systems for use by senior and
financial management of the Company for each month ended after the most recent fiscal quarter for
which financial statements were received by Agent pursuant to clause (b) and at least 30 days
before the Closing Date.

5. Evidence of Solvency. Agent shall have received a customary certificate (which shall
be reasonably satisfactory to Agent) from the chief financial officer or other responsible officer
(reasonably acceptable to Agent) of the Company certifying the solvency of the Loan Parties on a
consolidated basis, on the Closing Date, after giving effect to the Transaction and the incurrence
of indebtedness under the Revolving Credit Facility and the Cash Flow Facilities.

6. No Material Adverse Effect. There shall not be or become known to the Commitment
Parties, except to the extent disclosed by Interstate Bakeries Corporation in any filing made by
Interstate Bakeries Corporation with the Securities and Exchange Commission prior to the date
hereof or in writing to and accepted and countersigned by the Initial Lender on the date hereof,
any events, developments, conditions or circumstances that, individually or in the aggregate, have
had or could reasonably be expected to have a material adverse effect on the business, operations,
property, condition (financial or otherwise) or prospects of Interstate Bakeries Corporation and
its direct and indirect subsidiaries, taken as a whole (or the Reorganized Interstate Bakeries
Corporation and its direct and indirect subsidiaries, taken as a whole). Other than sales of real
property relating to the Acquired Business’ exit from the bread business in the southern California
region, no material assets of the Acquired Business shall be sold or agreed to be sold from and
after the date hereof.

7. Minimum Availability. Availability under the Revolving Credit Facility, after giving
effect to all borrowings and issuances of Letters of Credit on the Closing Date shall be no less
than $90,000,000.

8. Receipt of Appraisals. Receipt by Agent of reasonably acceptable inventory appraisals
and collateral audits of the Loan Parties prepared by an appraiser or auditor reasonably acceptable
to Agent. Receipt by Agent of reasonably satisfactory results of field examinations by Agent or
its representatives of the Loan Parties’ accounts receivable, inventory, related working capital
matters and systems, including accounting, reporting, cash management and control systems.

9. Loan Documentation. Reasonably satisfactory negotiation, execution and delivery of
appropriate definitive loan documents relating to the Revolving Credit Facility, including, without
limitation, credit agreements, guarantees, security agreements, pledge agreements, intercreditor
agreements, real property security agreements, and other related definitive documents, prepared by
counsel to the Agent and based upon and substantially consistent with the terms set forth in the
Commitment Letter and Exhibit A thereto and otherwise reasonably satisfactory to Agent.

10. Other Customary Conditions. Other customary closing conditions, relating to delivery
of satisfactory legal opinions of counsel to the Loan Parties, evidence of corporate authority,
copy of organizational documents, reasonably satisfactory corporate structure, insurance reasonably
satisfactory to Agent (and receipt of additional insured and loss payee insurance certificates) and
payment of all fees and expenses required to be paid under the Commitment Letter and the Fee Letter
then due and owing for which summary invoices have been presented before the Closing Date. All
actions necessary to establish that Agent will have a perfected security interest in the Collateral
shall have been taken, or arrangements for perfection thereof reasonably acceptable to Agent shall
have been made.

Schedule I-2

 

11. Union Contracts. Receipt of agreements between Interstate Bakeries Corporation and
each of the International Brotherhood of Teamsters, the Bakery, Confectionery, Tobacco Workers and
Grain Millers’ International Union, the Retail, Wholesale and Department Store Union and the United
Auto Workers Union to implement modifications to collective bargaining agreements necessary to
effect all of the concessions and work rule changes necessary to implement “path to market” and the
Company’s business plan, in form and substance reasonably satisfactory to Agent.

12. Holdings of Sponsor. Agent shall have received reasonably satisfactory evidence that
Sponsor owns at least 40% of the stock of the Company.

Schedule I-3

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