Document:

<PAGE>   1
                                                                 EXHIBIT 10.13

                                  $500,000,000

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                  dated as of

                                 March 30, 2000

                                     among

                            FLOWERS INDUSTRIES, INC.

                            The Banks Listed Herein

                              WACHOVIA BANK, N.A.,
                                   as Agent,

                            THE BANK OF NOVA SCOTIA,
                             as Documentation Agent

                                      and

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

<PAGE>   2
                               TABLE OF CONTENTS

                     AMENDED AND RESTATED CREDIT AGREEMENT

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<S>                                                                                                     <C>
ARTICLE I DEFINITIONS....................................................................................1

         Section 1.01.  Definitions......................................................................1

         Section 1.02.  Accounting Terms and Determinations.............................................16

         Section 1.03.  References......................................................................16

         Section 1.04.  Use of Defined Terms............................................................16

         Section 1.05.  Terminology.....................................................................16

ARTICLE II THE CREDITS..................................................................................17

         Section 2.01.  Commitments to Lend Syndicated Loans and Swing Loans............................17

         Section 2.02.  Method of Borrowing Syndicated Loans and Swing Loans............................18

         Section 2.03.  Money Market Loans..............................................................20

         Section 2.04.  Notes...........................................................................23

         Section 2.05.  Maturity of Loans...............................................................23

         Section 2.06.  Interest Rates..................................................................24

         Section 2.07.  Fees............................................................................25

         Section 2.08.  Optional Termination or Reduction of Commitments................................25

         Section 2.09.  Mandatory Reduction and Termination of Commitments..............................26

         Section 2.10.  Optional Prepayments............................................................26

         Section 2.11.  Mandatory Prepayments...........................................................27

         Section 2.12.  General Provisions as to Payments...............................................27

         Section 2.13.  Computation of Interest and Fees................................................28
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                                      (i)
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<S>                                                                                                     <C>
ARTICLE III CONDITIONS TO BORROWINGS....................................................................29

         Section 3.01.  Conditions to First Borrowing...................................................29

         Section 3.02.  Conditions to All Borrowings....................................................30

ARTICLE IV REPRESENTATIONS AND WARRANTIES...............................................................31

         Section 4.01.  Corporate Existence and Power...................................................31

         Section 4.02.  Corporate and Governmental Authorization; No Contravention......................31

         Section 4.03.  Binding Effect..................................................................31

         Section 4.04.  Financial Information...........................................................32

         Section 4.05.  No Litigation...................................................................32

         Section 4.06.  Compliance with ERISA...........................................................32

         Section 4.07.  Compliance with Laws; Payment of Taxes..........................................32

         Section 4.08.  Subsidiaries....................................................................33

         Section 4.09.  Investment Company Act..........................................................33

         Section 4.10.  Public Utility Holding Company Act..............................................33

         Section 4.11.  Ownership of Property; Liens....................................................33

         Section 4.12.  No Default......................................................................33

         Section 4.13.  Full Disclosure.................................................................33

         Section 4.14.  Environmental Matters...........................................................34

         Section 4.15.  Capital Stock...................................................................34

         Section 4.16.  Margin Stock....................................................................34

         Section 4.17.  Insurance.......................................................................35

ARTICLE V COVENANTS.....................................................................................35

         Section 5.01.  Information.....................................................................35
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                                     (ii)

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         <S>            <C>                                                                             <C>
         Section 5.02.  Inspection of Property, Books and Records.......................................37

         Section 5.03.  Maintenance of Existence........................................................37

         Section 5.04.  Consolidations, Mergers and Sales of Assets.....................................37

         Section 5.05.  Use of Proceeds.................................................................38

         Section 5.06.  Compliance with Laws; Payment of Taxes..........................................38

         Section 5.07.  Insurance.......................................................................39

         Section 5.08.  Change in Fiscal Year...........................................................39

         Section 5.09.  Maintenance of Property.........................................................39

         Section 5.10.  Environmental Notices...........................................................39

         Section 5.11.  Environmental Matters...........................................................40

         Section 5.12.  Environmental Release...........................................................40

         Section 5.13.  Transactions with Affiliates....................................................40

         Section 5.14.  Loans or Advances...............................................................40

         Section 5.15.  Investments.....................................................................40

         Section 5.16.  Negative Pledge.................................................................41

         Section 5.17.  Adjusted Fixed Charges Coverage Ratio...........................................43

         Section 5.18.  Leverage Ratio..................................................................43

         Section 5.19.  Minimum Adjusted Consolidated Net Worth.........................................43

         Section 5.20.  Subsidiary Borrowings...........................................................43

         Section 5.21.  Separateness from Unrestricted Subsidiaries.....................................43

         Section 5.22.  Adjusted Consolidated EBITDA....................................................44

         Section 5.23.  Borrowing Base..................................................................45

         Section 5.24.  New Indebtedness for Money Borrowed and New Capitalized Leases..................45

         Section 5.25.  Capital Expenditures............................................................45

         Section 5.26.  Restricted Payments.............................................................46
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                                     (iii)

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<S>                                                                                                    <C>
ARTICLE VI DEFAULTS.....................................................................................46

         Section 6.01.  Events of Default...............................................................46

         Section 6.02.  Notice of Default...............................................................49

ARTICLE VII THE AGENT...................................................................................49

         Section 7.01.  Appointment; Powers and Immunities..............................................49

         Section 7.02.  Reliance by Agent...............................................................50

         Section 7.03.  Defaults........................................................................50

         Section 7.04.  Rights of Agent and its Affiliates as a Bank....................................51

         Section 7.05.  Indemnification.................................................................51

         Section 7.06.  Consequential Damages...........................................................51

         Section 7.07.  Payee of Note Treated as Owner..................................................51

         Section 7.08.  Nonreliance on Agent and Other Banks............................................52

         Section 7.09.  Failure to Act..................................................................52

         Section 7.10.  Resignation or Removal of Agent.................................................52

ARTICLE VIII CHANGE IN CIRCUMSTANCES; COMPENSATION......................................................53

         Section 8.01.  Basis for Determining Interest Rate Inadequate or Unfair........................53

         Section 8.02.  Illegality......................................................................53

         Section 8.03.  Increased Cost and Reduced Return...............................................54

         Section 8.04.  Base Rate Loans Substituted for Euro-Dollar Loans...............................55

         Section 8.05.  Compensation....................................................................55

         Section 8.06.  Replacement of Bank.............................................................56

ARTICLE IX MISCELLANEOUS................................................................................56

         Section 9.01.  Notices.........................................................................56
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                                     (iv)

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         <S>            <C>                                                                             <C>
         Section 9.02.  No Waivers......................................................................57

         Section 9.03.  Expenses; Documentary Taxes.....................................................57

         Section 9.04.  Indemnification.................................................................57

         Section 9.05.  Setoff; Sharing of Setoffs......................................................57

         Section 9.06.  Amendments and Waivers..........................................................58

         Section 9.07.  Successors and Assigns..........................................................59

         Section 9.08.  Confidentiality.................................................................61

         Section 9.09.  Representation by Banks.........................................................61

         Section 9.10.  Obligations Several.............................................................61

         Section 9.11.  Georgia Law.....................................................................62

         Section 9.12.  Severability....................................................................62

         Section 9.13.  Interest........................................................................62

         Section 9.14.  Interpretation..................................................................63

         Section 9.15.  Waiver of Jury Trial; Consent to Jurisdiction...................................63

         Section 9.16.  Counterparts....................................................................63

         Section 9.17.  Source of Funds -- ERISA........................................................63
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EXHIBIT A-1    Form of Syndicated Loan Note
EXHIBIT A-2    Form of Money Market Loan Note
EXHIBIT A-3    Form of Swing Loan Note
EXHIBIT B      Form of Opinion of Counsel for the Borrower
EXHIBIT C      Form of Opinion of Special Counsel for the Agent
EXHIBIT D      Form of Assignment and Acceptance
EXHIBIT E      Form of Notice of Borrowing
EXHIBIT F      Form of Compliance Certificate
EXHIBIT G      Form of Closing Certificate
EXHIBIT H      Form of Officer's Certificate
EXHIBIT I      Form of Money Market Quote Request
EXHIBIT J      Form of Money Market Quote

Schedule 4.08  Subsidiaries

                                      (v)

<PAGE>   7

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of
March 30, 2000 among FLOWERS INDUSTRIES, INC., the BANKS listed on the
signature pages hereof, WACHOVIA BANK, N.A., as Agent, THE BANK OF NOVA SCOTIA,
as Documentation Agent, and BANK OF AMERICA, N.A., as Syndications Agent.

                  This Second Amended and Restated Credit Agreement is an
amendment and restatement of the Amended and Restated Credit Agreement by and
among the Borrower, the Banks parties thereto, Wachovia Bank, N.A., as Agent,
The Bank of Nova Scotia, as Documentation Agent and Bank of America, N.A.
(formerly Nationsbank, N.A.), as Syndications Agent, as amended by First
Amendment to Credit Agreement dated as of September 24, 1998, Second Amendment
to Credit Agreement dated as of July 16, 1999, Third Amendment to Credit
Agreement dated as of October 8, 1999 and Fourth Amendment to Credit Agreement
dated as of December 29, 1999 (as so amended, the "Original Agreement"), which
is replaced and superseded hereby.

                  The parties hereto agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

                  SECTION 1.01.     Definitions. The terms as defined in this
Section 1.01 shall, for all purposes of this Agreement and any amendment hereto
(except as herein otherwise expressly provided or unless the context otherwise
requires), have the meanings set forth herein:

                  "Adjusted Total Capitalization" means the sum of (i) Adjusted
Consolidated Total Debt and (ii) Adjusted Consolidated Net Worth.

                  "Adjusted Consolidated EBITDA" means at any time the sum of
the following, determined on a consolidated basis for the Borrower and its
Restricted Subsidiaries, at the end of each Fiscal Quarter: (i) Adjusted
Consolidated Net Income; plus (ii) Adjusted Consolidated Interest Expense; plus
(iii) taxes on income; plus (iv) depreciation; plus (v) amortization; plus (vi)
without duplication, other non-cash charges.

                  "Adjusted Consolidated Fixed Charges" means at any date the
sum of (i) Adjusted Consolidated Interest Expense for the Fiscal Year to date
or 4 Fiscal Quarter period (as applicable) used in the calculation of Adjusted
Consolidated Net Income for the determination of Adjusted EBILTDA, and (ii) all
payment obligations of the Borrower and its Restricted Subsidiaries for such
period under all operating leases and rental agreements.

                  "Adjusted Consolidated Interest Expense" for any period means
interest, whether expensed or capitalized, in respect of Indebtedness of the
Borrower or any of its Restricted Subsidiaries outstanding during such period.

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<PAGE>   8

                  "Adjusted Consolidated Net Income" means, for any period, the
Net Income of the Borrower and its Restricted Subsidiaries determined on a
consolidated basis, including (without duplication) any cash dividends received
from Keebler or any other Investment, but excluding (i) extraordinary items,
(ii) any equity interests of the Borrower or any Restricted Subsidiary in the
unremitted earnings of any Person that is not a Subsidiary, (iii) mark to
market adjustments made in connection with the Borrower's commodities hedging
program in accordance with GAAP, and (iv) gains and losses from sales of assets
outside the ordinary course of business.

                  "Adjusted Consolidated Net Worth" means the Net Worth of the
Borrower and the Subsidiaries, with all Unrestricted Subsidiaries being
accounted for on an equity basis of accounting, and otherwise determined on a
consolidated basis in accordance with GAAP.

                  "Adjusted Consolidated Total Assets" means, at any time, the
total assets of the Borrower and its Restricted Subsidiaries, with any
investments in Unrestricted Subsidiaries included as assets as if all
Unrestricted Subsidiaries were being accounted for on an equity basis of
accounting, determined in all other respects on a consolidated basis in
accordance with GAAP.

                  "Adjusted Consolidated Total Debt" means the aggregate of all
Indebtedness (except that, for purposes of determining Adjusted Consolidated
Total Debt, letters of credit and similar instruments described in clause (e)
of the definition of Indebtedness shall be included only to the extent they
have maturities greater than 1 year) of the Borrower and its Restricted
Subsidiaries on a consolidated basis in accordance with GAAP, excluding,
however, any Convertible Redeemable Capital Stock or Convertible Subordinated
Debt if the current market value of an equity security into which such
Convertible Redeemable Capital Stock or Convertible Subordinated Debt is
convertible is greater than the conversion price for such security.

                  "Adjusted EBILTDA" means at any date the sum of (i) Adjusted
Consolidated Net Income for the Fiscal Year to date (when calculated as of the
end of the second and third Fiscal Quarters of the 2000 Fiscal Year) or the 4
Fiscal Quarters ending on or prior to the date of measurement (when calculated
as of the end of the fourth Fiscal Quarter of the 2000 Fiscal Year and
thereafter), plus (ii) the sum of Adjusted Consolidated Fixed Charges and taxes
on income (including deferred taxes), depreciation and amortization for the
same Fiscal Year to date or 4 Fiscal Quarters (as applicable).

                  "Adjusted London Interbank Offered Rate" has the meaning set
forth in Section 2.06(c).

                  "Affiliate" of any relevant Person means (i) any Person that
directly, or indirectly through one or more intermediaries, controls the
relevant Person (a "Controlling Person"), (ii) any Person (other than the
relevant Person or a Subsidiary of the relevant Person) which is controlled by
or is under common control with a Controlling Person, or (iii) any Person
(other than a Subsidiary of the relevant Person) of which the relevant Person
owns, directly or indirectly, 20% or more of the common stock or equivalent
equity interests. As used herein, the term "control" means possession, directly
or indirectly, of the power to direct or cause the

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direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "Agent" means Wachovia Bank, N.A., a national banking
association organized under the laws of the United States of America, in its
capacity as agent for the Banks hereunder, and its successors and permitted
assigns in such capacity.

                  "Agent's Letter Agreement" means that certain letter
agreement, dated as of December 18, 1997 between the Borrower and the Agent
relating to the structure of the Loans, and certain fees from time to time
payable by the Borrower to the Agent, together with all amendments and
supplements thereto.

                  "Agreement" means this Second Amended and Restated Credit
Agreement, together with all amendments and supplements hereto.

                  "Applicable Margin" has the meaning set forth in Section
2.06(a).

                  "Assignee" has the meaning set forth in Section 9.07(c).

                  "Assignment and Acceptance" means an Assignment and
Acceptance executed in accordance with Section 9.07(c) in the form attached
hereto as Exhibit D.

                  "Authority" has the meaning set forth in Section 8.02.

                  "Bank" means each bank listed on the signature pages hereof
as having a Commitment, and its successors and permitted assigns.

                  "Base Rate" means for any Base Rate Loan for any day, the
rate per annum equal to the higher as of such day of (i) the Prime Rate, or
(ii) one-half of one percent above the Federal Funds Rate. For purposes of
determining the Base Rate for any day, changes in the Prime Rate or the Federal
Funds Rate shall be effective on the date of each such change.

                  "Base Rate Borrowing" has the meaning set forth in the
definition of Borrowing.

                  "Base Rate Loan" means a Loan which bears or is to bear
interest at a rate based upon the Base Rate, and is to be made as a Base Rate
Loan pursuant to the applicable Notice of Borrowing, Section 2.02(f), or
Article VIII, as applicable.

                  "Borrower" means Flowers Industries, Inc. a Georgia
corporation, and its successors and its permitted assigns.

                  "Borrowing" means a borrowing hereunder consisting of Loans
made to the Borrower (i) at the same time by all of the Banks, in the case of a
Syndicated Borrowing, or (ii) separately by one or more Banks, in the case of a
Money Market Borrowing, in each case pursuant to Article II or (iii) by
Wachovia, for Swing Loans. A Borrowing is a "Money Market Borrowing" if such
Loans are made pursuant to Section 2.03 or a "Syndicated Borrowing" if such
Loans are made pursuant to Section 2.01(a), or a "Swing Loan Borrowing" if such
Loan is made pursuant to Section 2.01(b). A Borrowing is a "Base Rate
Borrowing" if such Loans are

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made as Base Rate Loans or a "Euro-Dollar Borrowing" if such Loans are made as
Euro-Dollar Loans.

                  "Borrowing Base" means the sum on the last day of any Fiscal
Period, as shown on the balance sheet of the Borrower for such date (except as
to clause (iv) below), of:

                  (i)      80% of the net book value of all accounts receivable
         (net of all reserves) of the Borrower and its Restricted Subsidiaries,
         calculated in accordance with GAAP;

                  (ii)     50% of the book value of all inventory of the
         Borrower and its Restricted Subsidiaries, calculated in accordance
         with GAAP;

                  (iii)    50% of the net book value of all tangible property,
         plant and equipment of the Borrower and its Restricted Subsidiaries,
         calculated in accordance with GAAP; and

                  (iv)     60% of the product of (a) the average per share
         closing price of Keebler common stock during such Fiscal Period times
         (b) the number of shares of such stock owned by the Borrower, as of
         such date.

                  "Capital Expenditures" means for any period the sum of all
capital expenditures incurred during such period by the Borrower and its
Restricted Subsidiaries, as determined in accordance with GAAP.

                  "Capital Stock" means any nonredeemable capital stock of the
Borrower or any Consolidated Subsidiary (to the extent issued to a Person other
than the Borrower), whether common or preferred.

                  "Capitalized Lease" means any lease which is required to be
capitalized on the balance sheet of the lessee pursuant to GAAP but shall
exclude any lease which at the time of its incurrence was an operating lease
for purposes of GAAP as in effect at such time.

                  "CERCLA" means the Comprehensive Environmental Response
Compensation and Liability Act, 42 U.S.C. ss.9601 et. seq. and its implementing
regulations and amendments.

                  "CERCLIS" means the Comprehensive Environmental Response
Compensation and Liability Inventory System established pursuant to CERCLA.

                  "Change of Law" shall have the meaning set forth in Section
8.02.

                  "Closing Certificate" has the meaning set forth in Section
3.01(e).

                  "Closing Date" means March 30, 2000.

                  "Code" means the Internal Revenue Code of 1986, as amended,
or any successor Federal tax code.

                  "Commitment" means, with respect to each Bank, (i) the amount
set forth opposite the name of such Bank on the signature pages hereof, and
(ii)as to any Bank which

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enters into any Assignment and Acceptance (whether as transferor Bank or as
Assignee thereunder), the amount of such Bank's Commitment after giving effect
to such Assignment and Acceptance, in each case as such amount may be reduced
from time to time pursuant to Sections 2.08 and 2.09.

                  "Compliance Certificate" has the meaning set forth in Section
5.01(c).

                  "Consolidated Subsidiary" means at any date any Subsidiary or
other entity the accounts of which, in accordance with GAAP, would be
consolidated with those of the Borrower in its consolidated financial
statements as of such date.

                  "Consolidated Total Assets" means, at any time, the total
assets of the Borrower and its Consolidated Subsidiaries, determined on a
consolidated basis, as set forth or reflected on the most recent consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries, prepared in
accordance with GAAP.

                  "Controlled Group" means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower, are treated as a single
employer under Section 414 of the Code.

                  "Convertible Redeemable Capital Stock" means any Capital
Stock that by its terms (or by the terms of any agreement by which or equity
security into which it is convertible or for which it is exchangeable or any
other agreement) or upon the happening of any event matures or is or will
become mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in
part, or is exchangeable for or convertible into an equity security of the
Borrower.

                  "Convertible Subordinated Debt" means any Indebtedness of the
Borrower (i) which is and remains subordinated in right of payment to the
obligations of the Borrower on the Notes and (ii) which by its terms is
exchangeable for or convertible into an equity security of the Borrower.

                  "Default" means any condition or event which constitutes an
Event of Default or which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

                  "Default Rate" means, with respect to any Loan, on any day,
the sum of 2% plus the then highest interest rate (including the Applicable
Margin) which may be applicable to any Loans hereunder (irrespective of whether
any such type of Loans are actually outstanding hereunder).

                  "Dollars" or "$" means dollars in lawful currency of the
United States of America.

                  "Domestic Business Day" means any day except a Saturday,
Sunday or other day on which commercial banks in Georgia are authorized by law
to close.

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<PAGE>   12

                  "Environmental Authority" means any foreign, federal, state,
local or regional government that exercises any form of jurisdiction or
authority under any Environmental Requirement.

                  "Environmental Authorizations" means all licenses, permits,
orders, approvals, notices, registrations or other legal prerequisites for
conducting the business of the Borrower or any Restricted Subsidiary required
by any Environmental Requirement.

                  "Environmental Judgments and Orders" means all judgments,
decrees or orders arising from or in any way associated with any Environmental
Requirements, whether or not entered upon consent, or written agreements with
an Environmental Authority or other entity arising from or in any way
associated with any Environmental Requirement, whether or not incorporated in a
judgment, decree or order.

                  "Environmental Liabilities" means any liabilities, whether
accrued, contingent or otherwise, arising from and in any way associated with
any Environmental Requirements.

                  "Environmental Notices" means notice from any Environmental
Authority or by any other person or entity, of possible or alleged
noncompliance with or liability under any Environmental Requirement, including
without limitation any complaints, citations, demands or requests from any
Environmental Authority or from any other person or entity for correction of
any violation of any Environmental Requirement or any investigations concerning
any violation of any Environmental Requirement.

                  "Environmental Proceedings" means any judicial or
administrative proceedings arising from or in any way associated with any
Environmental Requirement.

                  "Environmental Releases" means releases as defined in CERCLA
or under any applicable state or local environmental law or regulation.

                  "Environmental Requirements" means any legal requirement
relating to health, safety or the environment and applicable to the Borrower,
any Restricted Subsidiary or the Properties, including but not limited to any
such requirement under CERCLA or similar state legislation and all federal,
state and local laws, ordinances, regulations, orders, writs, decrees and
common law.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, or any successor law. Any reference to any
provision of ERISA shall also be deemed to be a reference to any successor
provision or provisions thereof.

                  "Euro-Dollar Borrowing" has the meaning set forth in the
definition of Borrowing.

                  "Euro-Dollar Business Day" means any Domestic Business Day on
which dealings in Dollar deposits are carried out in the London interbank
market.

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<PAGE>   13

                  "Euro-Dollar Loan" means a Loan which bears or is to bear
interest at a rate based upon the Adjusted London Interbank Offered Rate, and
to be made as a Euro-Dollar Loan pursuant to the applicable Notice of
Borrowing.

                  "Euro-Dollar Reserve Percentage" has the meaning set forth in
Section 2.06(c).

                  "Event of Default" has the meaning set forth in Section 6.01.

                  "Federal Funds Rate" means, for any day, the rate per annum
(rounded upward, if necessary, to the next higher 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Domestic
Business Day next succeeding such day, provided that (i) if the day for which
such rate is to be determined is not a Domestic Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Domestic Business Day as so published on the next succeeding Domestic Business
Day, and (ii) if such rate is not so published for any day, the Federal Funds
Rate for such day shall be the average rate charged to Wachovia on such day on
such transactions, as determined by the Agent.

                  "Fiscal Period" means each fiscal period of the Borrower,
consisting of approximately four weeks, the Borrower having thirteen such
fiscal periods in each Fiscal Year.

                  "Fiscal Quarter" means any fiscal quarter of the Borrower.

                  "Fiscal Year" means any fiscal year of the Borrower.

                  "Fixed Rate Borrowing" means a Euro-Dollar Borrowing or a
Money Market Borrowing, or either of them, as the context shall require.

                  "Fixed Rate Loans" means Euro-Dollar Loans or Money Market
Loans, or either of them, as the context shall require.

                  "GAAP" means generally accepted accounting principles applied
on a basis consistent with those which, in accordance with Section 1.02, are to
be used in making the calculations for purposes of determining compliance with
the terms of this Agreement.

                  "Guaranty" means, with respect to any Person, any obligation
(except the endorsement in the ordinary course of business of negotiable
instruments for deposit or collection) of such Person guaranteeing or in effect
guaranteeing any Indebtedness, dividends or other obligation of any other
Person in any manner, whether directly or indirectly, including (without
limitation) obligations incurred through an agreement, contingent or otherwise,
by such Person:

                  (a)      to purchase such Indebtedness or obligation or any
         property constituting security therefore;

                  (b)      to advance or supply funds (i) for the purchase or
         payment of such Indebtedness or obligation, or (ii) to maintain any
         working capital or other balance sheet

                                       7
<PAGE>   14

         condition or any income statement condition of any other Person or
         otherwise to advance or make available funds for the purchase or
         payment of such Indebtedness or obligations;

                  (c)      to lease properties or to purchase properties or
         services primarily for the purpose of assuring the owner of such
         Indebtedness or obligation of the ability of any other Person to make
         payment of the Indebtedness or obligation; or

                  (d)      otherwise to assure the owner of such Indebtedness
         or obligations against loss in respect thereof.

In any computation of the Indebtedness or other liabilities of the obligor
under any Guaranty, the Indebtedness or other obligations that are the subject
of such Guaranty shall be assumed to be direct obligations of such obligor.

                  "Hazardous Materials" includes, without limitation, (a) solid
or hazardous waste, as defined in the Resource Conservation and Recovery Act of
1980, 42 U.S.C. ss. 6901 et seq. and its implementing regulations and
amendments, or in any applicable state or local law or regulation, (b)
"hazardous substance", "pollutant", or "contaminant" as defined in CERCLA, or
in any applicable state or local law or regulation, (c) gasoline, or any other
petroleum product or by-product, including, crude oil or any fraction thereof,
(d) toxic substances, as defined in the Toxic Substances Control Act of 1976,
or in any applicable state or local law or regulation and (e) insecticides,
fungicides, or rodenticides, as defined in the Federal Insecticide, Fungicide,
and Rodenticide Act of 1975, or in any applicable state or local law or
regulation, as each such Act, statute or regulation may be amended from time to
time.

                  "Indebtedness" with respect to any Person means, at any time,
without duplication,

                  (a)      its liabilities for borrowed money and its
         redemption obligations in respect of mandatorily redeemable Preferred
         Stock;

                  (b)      its liabilities for the deferred purchase price of
         property acquired by such Person (excluding accounts payable arising
         in the ordinary course of business but including all liabilities
         created or arising under any conditional sale or other title retention
         agreement with respect to any such property);

                  (c)      all liabilities appearing on its balance sheet in
         accordance with GAAP in respect of Capitalized Leases;

                  (d)      all liabilities for borrowed money secured by any
         Lien with respect to any property owned by such Person (whether or not
         it has assumed or otherwise become liable for such liabilities);

                  (e)      all its liabilities in respect of letters of credit
         or instruments serving a similar function issued or accepted for its
         account by banks and other financial institutions (whether or not
         representing obligations for borrowed money);

                  (f)      Swaps of such Person; and

                                       8
<PAGE>   15

                  (g)      any Guaranty of such Person with respect to
         liabilities of a type described in any clauses (a) through (f) hereof.

                  "Indebtedness for Borrowed Money" means Indebtedness of the
types described in clauses (a) and (d) of the definition of Indebtedness.

                  "Interest Period" means: (1) with respect to each Euro-Dollar
Borrowing, the period commencing on the date of such Borrowing and ending on
the numerically corresponding day in the first, second, third or sixth month
thereafter, as the Borrower may elect in the applicable Notice of Borrowing;
provided that:

                  (a)      any Interest Period (subject to paragraph (c) below)
         which would otherwise end on a day which is not a Euro-Dollar Business
         Day shall be extended to the next succeeding Euro-Dollar Business Day
         unless such Euro-Dollar Business Day falls in another calendar month,
         in which case such Interest Period shall end on the next preceding
         Euro-Dollar Business Day;

                  (b)      any Interest Period which begins on the last
         Euro-Dollar Business Day of a calendar month (or on a day for which
         there is no numerically corresponding day in the appropriate
         subsequent calendar month) shall, subject to paragraph (c) below, end
         on the last Euro-Dollar Business Day of the appropriate subsequent
         calendar month; and

                  (c)      no Interest Period may be selected which begins
         before the Termination Date and would otherwise end after the
         Termination Date.

(2) with respect to each Base Rate Borrowing, the period commencing on the date
of such Borrowing and ending 30 days thereafter (or, if sooner, on the
Termination Date); provided that:

                  (a)      any Interest Period (subject to paragraph (b) below)
         which would otherwise end on a day which is not a Domestic Business
         Day shall be extended to the next succeeding Domestic Business Day;
         and

                  (b)      no Interest Period which begins before the
         Termination Date and would otherwise end after the Termination Date
         may be selected.

(3) with respect to each Money Market Borrowing, the period commencing on the
date of such Borrowing and ending on the Stated Maturity Date specified in the
applicable Money Market Quote; provided that:

                  (a)      any Interest Period (subject to clause (b) below)
         which would otherwise end on a day which is not a Domestic Business
         Day shall be extended to the next succeeding Domestic Business Day;
         and

                  (b)      no Interest Period may be selected which begins
         before the Termination Date and would otherwise end after the
         Termination Date.

                  "Investment" means any investment in any Person, whether by
means of purchase or acquisition of obligations or securities of such Person,
capital contribution to such Person,

                                       9
<PAGE>   16

loan or advance to such Person, making of a time deposit with such Person,
Guaranty or assumption of any obligation of such Person or otherwise.

                  "Keebler" means Keebler Foods Company, a Delaware corporation
with its principal place of business in Elmhurst, Illinois.

                  "Keebler Acquisition" means, collectively, the acquisition by
the Borrower (i) from Artal Luxembourg S.A., pursuant to a Stock Purchase
Agreement dated as of January 28, 1998, of an aggregate of 9,581,169 shares of
common capital stock in Keebler, and (ii) from Bermore Limited, pursuant to a
Stock Purchase and Stockholder's Agreement dated as of January 28, 1998, of an
aggregate of 1,616,691 shares of common capital stock in Keebler, as a result
of which, after giving effect to the Keebler Acquisition, the Borrower will own
approximately 51% of the common capital stock of Keebler, on a fully diluted
basis.

                  "Lending Office" means, as to each Bank, its office located
at its address set forth on the signature pages hereof (or identified on the
signature pages hereof as its Lending Office) or such other office as such Bank
may hereafter designate as its Lending Office by notice to the Borrower and the
Agent.

                  "Leverage Ratio" means the ratio of Adjusted Consolidated
Total Debt to Adjusted Total Capitalization.

                  "Lien" means, with respect to any asset, any mortgage, deed
to secure debt, deed of trust, lien, pledge, charge, security interest,
security title, preferential arrangement which has the practical effect of
constituting a security interest or encumbrance, or encumbrance or servitude of
any kind in respect of such asset to secure or assure payment of a Indebtedness
or a Guaranty, whether by consensual agreement or by operation of statute or
other law, or by any agreement, contingent or otherwise, to provide any of the
foregoing. For the purposes of this Agreement, the Borrower or any Subsidiary
shall be deemed to own subject to a Lien any asset which it has acquired or
holds subject to the interest of a vendor or lessor under any conditional sale
agreement, Capitalized Lease or other title retention agreement relating to
such asset.

                  "Loan" means a Base Rate Loan, Euro-Dollar Loan, Syndicated
Loan, Money Market Loan or Swing Loan, and "Loans" means Base Rate Loans,
Euro-Dollar Loans, Syndicated Loans, Money Market Loans, or Swing Loans, or any
or all of them, as the context shall require.

                  "Loan Documents" means this Agreement, the Notes, any other
document evidencing, relating to or securing the Loans, and any other document
or instrument delivered from time to time in connection with this Agreement,
the Notes or the Loans, as such documents and instruments may be amended or
supplemented from time to time.

                  "London Interbank Offered Rate" has the meaning set forth in
Section 2.06(c).

                  "Margin Stock" means "margin stock" as defined in Regulations
T, U or X.

                  "Material Adverse Effect" means, with respect to any event,
act, condition or occurrence of whatever nature (including any adverse
determination in any litigation,

                                      10
<PAGE>   17

arbitration, or governmental investigation or proceeding), whether singly or in
conjunction with any other event or events, act or acts, condition or
conditions, occurrence or occurrences, whether or not related, a material
adverse change in, or a material adverse effect upon, any of (a) the financial
condition, operations, business or properties of the Borrower and its
Consolidated Subsidiaries taken as a whole, (b) the rights and remedies of the
Agent or the Banks under the Loan Documents, or the ability of the Borrower to
perform its obligations under the Loan Documents to which it is a party, as
applicable, or (c) the legality, validity or enforceability of any Loan
Document.

                  "Material Subsidiary" means, as of each date of
determination, any Restricted Subsidiary that would at such time constitute a
"significant subsidiary" (as such term is defined in Regulation S-X of the
Securities and Exchange Commission as in effect on the Closing Date) of the
Borrower.

                  "Money Market Borrowing" has the meaning set forth in the
definition of Borrowing.

                  "Money Market Borrowing Date" has the meaning specified in
Section 2.03.

                  "Money Market Loan Notes" means the promissory notes of the
Borrower, substantially in the form of Exhibit A-2, evidencing the obligation
of the Borrower to repay the Money Market Loans, together with all amendments,
consolidations, modifications, renewals and supplements thereto.

                  "Money Market Quote" has the meaning specified in Section
2.03.

                  "Money Market Quote Request" has the meaning specified in
Section 2.03(b).

                  "Money Market Rate" has the meaning specified in Section
2.03(c)(ii)(C).

                  "Multiemployer Plan" shall have the meaning set forth in
Section 4001(a)(3) of ERISA.

                  "Net Income" means, as applied to any Person for any period,
the aggregate amount of net income of such Person, after taxes, for such
period, as determined in accordance with GAAP.

                  "Net Proceeds of Capital Stock" means any cash proceeds
received by the Borrower or a Restricted Subsidiary in respect of the issuance
of Capital Stock, after deducting therefrom all reasonable and customary costs
and expenses incurred by the Borrower or such Consolidated Subsidiary directly
in connection with the issuance of such Capital Stock.

                  "Net Worth" of any Person means the Total Assets of such
Person less all liabilities of such Person which would be shown as liabilities
on a balance sheet of such Person as of such time prepared in accordance with
GAAP.

                  "New Capitalized Leases" means Capitalized Leases which are
entered into on or after the Closing Date, other than Permitted Refinancing
Leases; provided, that any Synthetic

                                      11
<PAGE>   18

Lease which is in existence on the Closing Date and is not a Permitted
Refinancing Lease shall not constitute a New Capitalized Lease, regardless of
any classification or reclassification thereof at any time for purposes of
GAAP.

                  "New Indebtedness for Borrowed Money" means Indebtedness for
Borrowed Money which is incurred on or after the Closing Date, other than
Permitted Refinancing Indebtedness.

                  "Notes" means each of the Syndicated Loan Notes, Money Market
Loan Notes, Swing Loan Note, or any or all of them, as the context shall
require.

                  "Notice of Borrowing" has the meaning set forth in Section
2.02.

                  "Officer's Certificate" has the meaning set forth in Section
3.01(f).

                  "Operating Profits" means, as applied to any Person for any
period, the operating income of such Person for such period, as determined in
accordance with GAAP.

                  "Original Agreement" has the meaning set forth in the
preamble hereto.

                  "Participant" has the meaning set forth in Section 9.07(b).

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions under ERISA.

                  "Permitted Keebler Investments" means: (i) the Keebler
Acquisition; and (ii) additional shares of common capital stock in Keebler
acquired from time to time (a) from third parties in the open market, (b) from
Bermore, Limited and Artal Luxembourg S.A. in private transactions, (c) from
management of Keebler in private transactions and/or (d) from Keebler as part
of an offering of stock by Keebler (whether public or private), but in the case
of this clause (d), only to the extent necessary for the Borrower to maintain
ownership of at least 51% of the common capital stock of Keebler, on a fully
diluted basis.

                  "Permitted Refinancing Indebtedness" means Indebtedness for
Borrowed Money which is incurred on or after the Closing Date solely to
refinance Indebtedness for Borrowed Money which existed prior to the Closing
Date, so long as the principal amount outstanding or available under the credit
or other agreement governing such Indebtedness for Borrowed Money is not
increased or the maturity shortened to a date prior to January 1, 2004, such
Indebtedness for Borrowed Money is not secured by a Lien on any assets of the
Borrower or any of its Subsidiaries, other than a Lien on assets, if any, which
as of the Closing Date secured the Indebtedness for Borrowed Money being
refinanced, and the credit or other agreement governing such Indebtedness for
Borrowed Money does not contain any financial, negative or affirmative covenants
(other than collateral related covenants, where collateral is permitted pursuant
to this definition) which are more restrictive in any material respect on the
Borrower or any of its Subsidiaries than those contained in this Agreement.

                  "Permitted Refinancing Leases" means Capitalized Leases which
are entered into on or after the Closing Date solely to refinance Capitalized
Leases or Synthetic Leases which existed prior to the Closing Date, so long as
the principal component of the base rent obligations

                                      12
<PAGE>   19

thereunder are not increased or the maturity shortened to a date prior to
January 1, 2004, such Capitalized Leases are not secured by a Lien on any
assets of the Borrower or any of its Subsidiaries, other than a Lien on assets,
if any, which as of the Closing Date secured the obligations under the
Capitalized Lease or Synthetic Lease being refinanced, and lease agreement,
participation agreement, guaranty or other agreement governing such Capitalized
Lease does not contain any financial, negative or affirmative covenants (other
than collateral related covenants, where collateral is permitted pursuant to
this definition)which are more restrictive in any material respect on the
Borrower or any of its Subsidiaries than those contained in this Agreement.

                  "Person" means an individual, a corporation, a partnership,
an unincorporated association, a trust or any other entity or organization,
including, but not limited to, a government or political subdivision or an
agency or instrumentality thereof.

                  "Plan" means at any time an employee pension benefit plan
which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code and is either (i) maintained by a
member of the Controlled Group for employees of any member of the Controlled
Group or (ii) maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to
which a member of the Controlled Group is then making or accruing an obligation
to make contributions or has within the preceding 5 plan years made
contributions.

                  "Preferred Stock" means any class of capital stock of a
corporation that is preferred over any other class of capital stock of such
corporation as to the payment of dividends or the payment of any amount upon
liquidation or dissolution of such corporation.

                  "Prime Rate" refers to that interest rate so denominated and
set by Wachovia from time to time as an interest rate basis for borrowings. The
Prime Rate is but one of several interest rate bases used by Wachovia. Wachovia
lends at interest rates above and below the Prime Rate.

                  "Properties" means all real property owned, leased or
otherwise used or occupied by the Borrower or any Restricted Subsidiary,
wherever located.

                  "Refunding Loan" means a new Syndicated Loan made on the day
on which an outstanding Syndicated Loan is maturing or a Base Rate Borrowing is
being converted to a Fixed Rate Borrowing, if and to the extent that the
proceeds thereof are used entirely for the purpose of paying such maturing Loan
or Loan being converted, excluding any difference between the amount of such
maturing Loan or Loan being converted and any greater amount being borrowed on
such day and actually either being made available to the Borrower pursuant to
Section 2.02(c) or remitted to the Agent as provided in Section 2.12, in each
case as contemplated in Section 2.02(d).

                  "Regulation T" means Regulation T of the Board of Governors
of the Federal Reserve System, as in effect from time to time, together with
all official rulings and interpretations issued thereunder.

                                      13
<PAGE>   20

                  "Regulation U" means Regulation U of the Board of Governors
of the Federal Reserve System, as in effect from time to time, together with
all official rulings and interpretations issued thereunder.

                  "Regulation X" means Regulation X of the Board of Governors
of the Federal Reserve System, as in effect from time to time, together with
all official rulings and interpretations issued thereunder.

                  "Required Banks" means at any time Banks having at least 66
2/3% of the aggregate amount of the Commitments or, if the Commitments are no
longer in effect, Banks holding at least 66 2/3% of the aggregate outstanding
principal amount of the sum of the (i) Syndicated Loans and (ii) Money Market
Loans.

                  "Responsible Officer" means the chief financial officer,
principal accounting officer, treasurer or comptroller of the Borrower, and any
other officer of the Borrower with responsibility for the administration of the
relevant portion of this Agreement.

                  "Restricted Payment" means (i) any dividend or other
distribution on any shares of the Borrower's Capital Stock (except dividends
payable solely in shares of its Capital Stock) or (ii) any payment on account
of the purchase, redemption, retirement or acquisition of (a) any shares of the
Borrower's Capital Stock (except shares acquired upon the conversion thereof
into other shares of its Capital Stock) or (b) any option, warrant or other
right to acquire shares of the Borrower's Capital Stock.

                  "Restricted Subsidiary" of a Person means any Subsidiary of
the referent Person that is not an Unrestricted Subsidiary.

                  "S&P" means Standard & Poor's Ratings Group, a division of
McGraw-Hill, Inc.

                  "Stated Maturity Date" means, with respect to any Money
Market Loan, the Stated Maturity Date therefor specified by the Bank in the
applicable Money Market Quote.

                  "Subsidiary" means any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by the Borrower.

                  "Swaps" means, with respect to any Person, payment
obligations with respect to interest rate swaps, currency swaps and similar
obligations obligating such Person to make payments, whether periodically or
upon the happening of a contingency. For the purposes of this Agreement, the
amount of the obligation under any Swap shall be the amount determined in
respect thereof as of the end of the then most recently ended Fiscal Quarter of
such Person, based on the assumption that such Swap had terminated at the end
of such Fiscal Quarter, and in making such determination, if any agreement
relating to such Swap provides for the netting of amounts payable by and to
such Person thereunder or if any such agreement provides for the simultaneous
payment of amounts by and to such Person, then in each such case, the amount of
such obligation shall be the net amount so determined.

                                      14
<PAGE>   21

                  "Swing Loan" means a Loan made by Wachovia pursuant to
Section 2.01(b), which must be a Base Rate Loan.

                  "Swing Loan Note" means the promissory note of the Borrower,
substantially in the form of Exhibit A-3, evidencing the obligation of the
Borrower to repay the Swing Loans, together with all amendments,
consolidations, modifications, renewals, and supplements thereto.

                  "Syndicated Borrowing" has the meaning set forth in the
definition of Borrowing.

                  "Syndicated Loans" means Base Rate Loans or Euro-Dollar Loans
made pursuant to the terms and conditions set forth in Section 2.01.

                  "Syndicated Loan Notes" means the promissory notes of the
Borrower, substantially in the form of Exhibit A-1, evidencing the obligation
of the Borrower to repay Syndicated Loans, together with all amendments,
consolidations, modifications, renewals and supplements thereto.

                  "Synthetic Lease" means a lease of property which is intended
to be classified as an operating lease in accordance with GAAP, but with
respect to which it is intended that the lessee be treated as the owner of the
property subject thereto for purposes of federal income tax.

                  "Synthetic Lease Obligations" means the principal component
of the base rent obligations of a Person as lessee under a Synthetic Lease.

                  "Taxes" has the meaning set forth in Section 2.12(c).

                  "Termination Date" means whichever is applicable of (i)
January 29, 2003, (ii) the date the Commitments are terminated pursuant to
Section 6.01 following the occurrence of an Event of Default, or (iii) the date
the Borrower terminates the Commitments entirely pursuant to Section 2.08.

                  "Third Parties" means all lessees, sublessees, licensees and
other users of the Properties, excluding those users of the Properties in the
ordinary course of the Borrower's business and on a temporary basis.

                  "Total Assets" means, with respect to any Person at any time,
the total assets of such Person as set forth or reflected on the most recent
consolidated balance sheet of such Person, prepared in accordance with GAAP.

                  "Total Capitalization" means the sum of (i) Consolidated
Total Debt and (ii) Consolidated Net Worth.

                  "Transferee" has the meaning set forth in Section 9.07(d).

                  "Unfunded Vested Liabilities" means, with respect to any Plan
at any time, the amount (if any) by which (i) the present value of all vested
nonforfeitable benefits under such Plan exceeds (ii) the fair market value of
all Plan assets allocable to such benefits, all determined as of the then most
recent valuation date for such Plan, but only to the extent that such excess

                                      15
<PAGE>   22

represents a potential liability of a member of the Controlled Group to the
PBGC or the Plan under Title IV of ERISA.

                  "Unrestricted Subsidiary" means, so long as Keebler is a
Subsidiary, Keebler, or any of its Subsidiaries, and "Unrestricted
Subsidiaries" means, collectively, Keebler and its Subsidiaries.

                  "Unused Commitment" means at any date, with respect to any
Bank, an amount equal to its Commitment less the aggregate outstanding
principal amount of its Syndicated Loans (but not its Money Market Loans and
not the Swing Loans).

                  "Wachovia" means Wachovia Bank, N.A., a national banking
association, and its successors.

                  "Wholly Owned Subsidiary" means any Subsidiary all of the
shares of capital stock or other ownership interests of which (except
directors' qualifying shares) are at the time directly or indirectly owned by
the Borrower.

                  SECTION 1.02.     Accounting Terms and Determinations. Unless
otherwise specified herein, all terms of an accounting character used herein
shall be interpreted, all accounting determinations hereunder shall be made,
and all financial statements required to be delivered hereunder shall be
prepared, in accordance with GAAP, applied on a basis consistent (except for
changes concurred in by the Borrower's independent public accountants or
otherwise required by a change in GAAP) with the most recent audited
consolidated financial statements of the Borrower and its Consolidated
Subsidiaries delivered to the Banks unless with respect to any such change
concurred in by the Borrower's independent public accountants or required by
GAAP, in determining compliance with any of the provisions of this Agreement or
any of the other Loan Documents: (i) the Borrower shall have objected to
determining such compliance on such basis at the time of delivery of such
financial statements, or (ii) the Required Banks shall so object in writing
within 30 days after the delivery of such financial statements, in either of
which events such calculations shall be made on a basis consistent with those
used in the preparation of the latest financial statements as to which such
objection shall not have been made (which, if objection is made in respect of
the first financial statements delivered under Section 5.01 hereof, shall mean
the financial statements referred to in Section 4.04).

                  SECTION 1.03.     References. Unless otherwise indicated,
references in this Agreement to "Articles", "Exhibits", "Schedules", "Sections"
and other Subdivisions are references to articles, exhibits, schedules,
sections and other subdivisions hereof.

                  SECTION 1.04.     Use of Defined Terms. All terms defined in
this Agreement shall have the same defined meanings when used in any of the
other Loan Documents, unless otherwise defined therein or unless the context
shall require otherwise.

                  SECTION 1.05.     Terminology. All personal pronouns used in
this Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders; the singular shall include the plural, and the
plural shall include the singular. Titles of Articles and Sections in this
Agreement are for convenience only, and neither limit nor amplify the
provisions of this Agreement.

                                      16
<PAGE>   23

                                  ARTICLE II

                                  THE CREDITS

                  SECTION 2.01.     Commitments to Lend Syndicated Loans and
Swing Loans (a)Each Bank severally agrees, on the terms and conditions set
forth herein, to make Syndicated Loans to the Borrower from time to time before
the Termination Date; provided that,

                  (i)      immediately after each such Syndicated Loan is made,
         the aggregate outstanding principal amount of Syndicated Loans by such
         Bank shall not exceed the amount of its Commitment, and

                  (ii)     the aggregate outstanding principal amount of all
         Syndicated Loans, Money Market Loans and Swing Loans shall not exceed
         the aggregate amount of the Commitments.

Each Syndicated Borrowing under this Section shall be in an aggregate principal
amount of (i) for Euro-Dollar Loans, $10,000,000 or any larger integral
multiple of $5,000,000, and (ii) for Base Rate Loans, $5,000,000 or any larger
integral multiple of $1,000,000 (except in each case that any such Syndicated
Borrowing may be in the aggregate amount of the Unused Commitments), and shall
be made from the several Banks ratably in proportion to their respective
Commitments. Within the foregoing limits, the Borrower may borrow under this
Section, repay or, to the extent permitted by Section 2.10, prepay Syndicated
Loans and reborrow under this Section at any time before the Termination Date.

                  (b)      Swing Loans. In addition to the foregoing, Wachovia
shall from time to time, upon the request of the Borrower, if the applicable
conditions precedent in Article III have been satisfied, make Swing Loans to
the Borrower in an aggregate principal amount at any time outstanding not
exceeding $15,000,000; provided that, immediately after such Swing Loan is
made, the condition set forth in clause (ii) of Section 2.01(a) shall have been
satisfied. Each Swing Loan Borrowing under this Section 2.01(b) shall be in an
aggregate principal amount of $500,000 or any larger multiple of $100,000.
Within the foregoing limits, the Borrower may borrow under this Section
2.01(b), prepay and reborrow under this Section 2.01(b) at any time before the
Termination Date. Swing Loans shall not be considered a utilization of the
Commitment of Wachovia or any other Bank hereunder. All Swing Loans shall be
made as Base Rate Loans. At any time, upon the request of Wachovia, each Bank
other than Wachovia shall, on the third Domestic Business Day after such
request is made, purchase a participating interest in Swing Loans in an amount
equal to its ratable share (based upon its respective Commitment) of such Swing
Loans. On such third Domestic Business Day, each Bank will immediately transfer
to Wachovia, in immediately available funds, the amount of its participation.
Whenever, at any time after Wachovia has received from any such Bank its
participating interest in a Swing Loan, the Agent receives any payment on
account thereof, the Agent will distribute to such Bank its participating
interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Bank's participating
interest was outstanding and funded); provided, however, that in the event that
such payment received by the Agent is required to be returned, such Bank will
return to the Agent any portion thereof previously distributed by the Agent to
it. Each Bank's obligation to purchase

                                      17
<PAGE>   24

such participating interests shall be absolute and unconditional and shall not
be affected by any circumstance, including, without limitation: (i) any
set-off, counterclaim, recoupment, defense or other right which such Bank or
any other Person may have against Wachovia requesting such purchase or any
other Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default or an Event of Default or the termination of the Commitments; (iii) any
adverse change in the condition (financial or otherwise) of the Borrower or any
other Person; (iv) any breach of this Agreement by the Borrower or any other
Bank; or (v) any other circumstance, happening or event whatsoever, whether or
not similar to any of the foregoing.

                  SECTION 2.02.     Method of Borrowing Syndicated Loans and
Swing Loans. (a) The Borrower shall give the Agent notice (a "Notice of
Borrowing"), which shall be substantially in the form of Exhibit E, prior to
11:00 A.M. (Atlanta, Georgia time) on the same Domestic Business Day as each
Base Rate Borrowing and at least 3 Euro-Dollar Business Days before each
Euro-Dollar Borrowing, specifying:

                  (i)      the date of such Syndicated Borrowing or Swing Loan
         Borrowing, which shall be a Domestic Business Day in the case of a
         Base Rate Borrowing or a Euro-Dollar Business Day in the case of a
         Euro-Dollar Borrowing,

                  (ii)     the aggregate amount of such Syndicated Borrowing or
         Swing Loan Borrowing,

                  (iii)    whether the Syndicated Loans comprising such
         Borrowing are to be Base Rate Loans or Euro-Dollar Loans, or stating
         that such Borrowing is to be a Swing Loan Borrowing, and

                  (iv)     in the case of a Euro-Dollar Borrowing, the duration
         of the Interest Period applicable thereto, subject to the provisions
         of the definition of Interest Period.

                  (b)      Upon receipt of a Notice of Borrowing, the Agent
shall promptly notify each Bank of the contents thereof (unless such Borrowing
is a Swing Loan Borrowing) and of such Bank's ratable share of such Syndicated
Borrowing and such Notice of Borrowing, once received by the Agent, shall not
thereafter be revocable by the Borrower.

                  (c)      Not later than (i) as to Base Rate Loans, 2:00 P.M.
(Atlanta, Georgia time), and (ii) as to Euro-Dollar Loans, 11:00 A.M.,
(Atlanta, Georgia time) on the date of each Syndicated Borrowing, each Bank
shall (except as provided in paragraph (d) of this Section) make available its
ratable share of such Syndicated Borrowing, in Federal or other funds
immediately available in Atlanta, Georgia, to the Agent at its address
determined pursuant to Section 9.01. Unless the Agent determines that any
applicable condition specified in Article III has not been satisfied, the Agent
will make the funds so received from the Banks available to the Borrower on
such date by depositing the same, in immediately available funds, not later
than 4:00 p.m. (Atlanta, Georgia time), in an account of the Borrower
maintained with Wachovia. Unless the Agent receives notice from a Bank, at the
Agent's address referred to in or specified pursuant to Section 9.01, no later
than 4:00 P.M. (local time at such address) on the Domestic Business Day before
the date of a Syndicated Borrowing stating that such Bank will not make a
Syndicated Loan in connection with such Syndicated Borrowing, the Agent shall
be entitled to

                                      18
<PAGE>   25

assume that such Bank will make a Syndicated Loan in connection with such
Syndicated Borrowing and, in reliance on such assumption, the Agent may (but
shall not be obligated to) make available such Bank's ratable share of such
Syndicated Borrowing to the Borrower for the account of such Bank. If the Agent
makes such Bank's ratable share available to the Borrower and such Bank does
not in fact make its ratable share of such Syndicated Borrowing available on
such date, the Agent shall be entitled to recover such Bank's ratable share
from such Bank or the Borrower (and for such purpose shall be entitled to
charge such amount to any account of the Borrower maintained with the Agent),
together with interest thereon for each day during the period from the date of
such Syndicated Borrowing until such sum shall be paid in full at a rate per
annum equal to the rate at which the Agent determines that it obtained (or
could have obtained) overnight Federal funds to cover such amount for each such
day during such period, provided that (i) any such payment by the Borrower of
such Bank's ratable share and interest thereon shall be without prejudice to
any rights that the Borrower may have against such Bank and (ii) until such
Bank has paid its ratable share of such Syndicated Borrowing, together with
interest pursuant to the foregoing, it will have no interest in or rights with
respect to such Syndicated Borrowing for any purpose hereunder. If the Agent
does not exercise its option to advance funds for the account of such Bank, it
shall forthwith notify the Borrower of such decision. Wachovia will make
available to the Borrower at Wachovia's Lending Office the amount of any such
Borrowing which is a Swing Loan Borrowing not later than 2:00 P.M. (Atlanta,
Georgia time).

                  (d)      If any Bank makes a new Syndicated Loan hereunder on
a day on which the Borrower is to repay all or any part of an outstanding
Syndicated Loan from such Bank, such Bank shall apply the proceeds of its new
Syndicated Loan to make such repayment as a Refunding Loan and only an amount
equal to the difference (if any) between the amount being borrowed and the
amount of such Refunding Loan shall be made available by such Bank to the Agent
as provided in paragraph (c) of this Section, or remitted by the Borrower to
the Agent as provided in Section 2.12, as the case may be.

                  (e)      Notwithstanding anything to the contrary contained
in this Agreement, no Fixed Rate Borrowing may be made if there shall have
occurred a Default or an Event of Default, which Default or Event of Default
shall not have been cured or waived, and in such case all Refunding Loans shall
be made as Base Rate Loans (but shall bear interest at the Default Rate, if
applicable).

                  (f)      In the event that a Notice of Borrowing fails to
specify whether the Syndicated Loans comprising such Syndicated Borrowing are
to be Base Rate Loans or Euro-Dollar Loans, such Syndicated Loans shall be made
as Base Rate Loans. If the Borrower is otherwise entitled under this Agreement
to repay any Syndicated Loans maturing at the end of an Interest Period
applicable thereto with the proceeds of a new Borrowing, and the Borrower fails
to repay such Syndicated Loans using its own moneys and fails to give a Notice
of Borrowing in connection with such new Syndicated Borrowing, a new Syndicated
Borrowing shall be deemed to be made on the date such Syndicated Loans mature
in an amount equal to the principal amount of the Syndicated Loans so maturing,
and the Syndicated Loans comprising such new Syndicated Borrowing shall be Base
Rate Loans.

                                      19
<PAGE>   26

                  (g)      Notwithstanding anything to the contrary contained
herein, there shall not be more than 10 Fixed Rate Borrowings outstanding at
any given time.

                  SECTION 2.03.     Money Market Loans. (a) So long as, at the
end of the immediately preceding Fiscal Quarter, the Borrower had a ratio of
Adjusted EBILTDA to Adjusted Consolidated Fixed Charges of 3.50 to 1.0, in
addition to making Syndicated Borrowings, the Borrower may, as set forth in
this Section 2.03, request the Banks to make offers to make Money Market
Borrowings available to the Borrower. The Banks may, but shall have no
obligation to, make such offers and the Borrower may, but shall have no
obligation to, accept any such offers in the manner set forth in this Section
2.03, provided that:

                  (i)      the number of Money Market Borrowings which may be
         outstanding at any given time is subject to the provisions of Section
         2.02(g);

                  (ii)     the aggregate principal amount of all Money Market
         Loans, together with the aggregate principal amount of all Syndicated
         Loans and Swing Loans, at any one time outstanding shall not exceed
         the aggregate amount of the Commitments of all of the Banks at such
         time; and

                  (iii)    the Money Market Loans of any Bank will be deemed to
         be usage of the Commitments for the purpose of calculating
         availability pursuant to Section 2.01(ii) and 2.03(a)(ii), but will
         not reduce such Bank's obligation to lend its pro rata share of the
         remaining Unused Commitment.

                  (b)      When the Borrower wishes to request offers to make
Money Market Loans, it shall give the Agent (which shall promptly notify the
Banks) notice substantially in the form of Exhibit I hereto (a "Money Market
Quote Request") so as to be received no later than 11:00 A.M. (Atlanta, Georgia
time) at least 1 Domestic Business Day prior to the date of the Money Market
Borrowing proposed therein (or such other time and date as the Borrower and the
Agent, with the consent of the Required Banks, may agree), specifying:

                  (i)      the proposed date of such Money Market Borrowing,
         which shall be a Euro-Dollar Business Day (the "Money Market Borrowing
         Date");

                  (ii)     the maturity date (or dates) (each a "Stated
         Maturity Date") for repayment of each Money Market Loan to be made as
         part of such Money Market Borrowing (which Stated Maturity Date shall
         be that date occurring not less than 7 days but not more than 180 days
         from the date of such Money Market Borrowing); provided that the
         Stated Maturity Date for any Money Market Loan may not extend beyond
         the Termination Date (as in effect on the date of such Money Market
         Quote Request); and

                  (iii)    the aggregate amount of principal to be requested by
         the Borrower as a result of such Money Market Borrowing, which shall
         be at least $10,000,000 (and in larger integral multiples of
         $5,000,000) but shall not cause the limits specified in Section
         2.03(a) to be violated.

The Borrower may request offers to make Money Market Loans having up to 2
different Stated Maturity Dates in a single Money Market Quote Request;
provided that the request for each

                                      20
<PAGE>   27

separate Stated Maturity Date shall be deemed to be a separate Money Market
Quote Request for a separate Money Market Borrowing. Except as otherwise
provided in the immediately preceding sentence, after the first Money Market
Quote Request has been given hereunder, no Money Market Quote Request shall be
given until at least 5 Domestic Business Days after all prior Money Market
Quote Requests have been fully processed ("fully processed" as used in this
sentence shall mean the later to occur of (i) the failure of all Banks timely
to offer a Money Market Quote, (ii) the failure of the Borrower timely to
accept any Money Market Quote, or (iii) the timely acceptance of any Money
Market Quotes) by the Agent, the Banks and the Borrower pursuant to this
Section 2.03.

                  (c)(i)   Each Bank may, but shall have no obligation to,
         submit a response containing an offer to make a Money Market Loan
         substantially in the form of Exhibit J hereto (a "Money Market Quote")
         in response to any Money Market Quote Request; provided that, if the
         Borrower's request under Section 2.03(b) specified more than 1 Stated
         Maturity Date, such Bank may, but shall have no obligation to, make a
         single submission containing a separate offer for each such Stated
         Maturity Date and each such separate offer shall be deemed to be a
         separate Money Market Quote. Each Money Market Quote must be submitted
         to the Agent not later than 10:00 A.M. (Atlanta, Georgia time) on the
         Money Market Borrowing Date; provided that any Money Market Quote
         submitted by Wachovia may be submitted, and may only be submitted, if
         Wachovia notifies the Borrower of the terms of the offer contained
         therein not later than 9:45 A.M. (Atlanta, Georgia time) on the Money
         Market Borrowing Date (or 15 minutes prior to the time that the other
         Banks are required to have submitted their respective Money Market
         Quotes). Subject to Section 6.01, any Money Market Quote so made shall
         be irrevocable except with the written consent of the Agent given on
         the instructions of the Borrower.

                           (ii)     Each Money Market Quote shall specify:

                                    (A)      the proposed Money Market
                           Borrowing Date and the Stated Maturity Date
                           therefor;

                                    (B)      the principal amounts of the Money
                           Market Loan which the quoting Bank is willing to
                           make for the applicable Money Market Quote, which
                           principal amounts (x) may be greater than or less
                           than the Commitment of the quoting Bank, (y) shall
                           be at least $5,000,000 or a larger integral multiple
                           of $500,000, and (z) may not exceed the principal
                           amount of the Money Market Borrowing for which
                           offers were requested;

                                    (C)      the rate of interest per annum
                           (rounded upwards, if necessary, to the nearest
                           1/100th of 1%) offered for each such Money Market
                           Loan (such amounts being hereinafter referred to as
                           the "Money Market Rate"); and

                                    (D)      the identity of the quoting Bank.

                                      21
<PAGE>   28

         Unless otherwise agreed by the Agent and the Borrower, no Money Market
         Quote shall contain qualifying, conditional or similar language or
         propose terms other than or in addition to those set forth in the
         applicable Money Market Quote Request (other than setting forth the
         principal amounts of the Money Market Loan which the quoting Bank is
         willing to make for the applicable Interest Period) and, in
         particular, no Money Market Quote may be conditioned upon acceptance
         by the Borrower of all (or some specified minimum) of the principal
         amount of the Money Market Loan for which such Money Market Quote is
         being made.

                  (d)      The Agent shall as promptly as practicable after the
Money Market Quote is submitted (but in any event not later than 10:30 A.M.
(Atlanta, Georgia time)) on the Money Market Borrowing Date, notify the
Borrower of the terms (i) of any Money Market Quote submitted by a Bank that is
in accordance with Section 2.03(c) and (ii) of any Money Market Quote that
amends, modifies or is otherwise inconsistent with a previous Money Market
Quote submitted by such Bank with respect to the same Money Market Quote
Request. Any such subsequent Money Market Quote shall be disregarded by the
Agent unless such subsequent Money Market Quote is submitted solely to correct
a manifest error in such former Money Market Quote. The Agent's notice to the
Borrower shall specify (A) the principal amounts of the Money Market Borrowing
for which offers have been received and (B) the respective principal amounts
and Money Market Rates so offered by each Bank (identifying the Bank that made
each Money Market Quote).

                  (e)      Not later than 11:00 A.M. (Atlanta, Georgia time) on
the Money Market Borrowing Date, the Borrower shall notify the Agent of its
acceptance or nonacceptance of the offers so notified to it pursuant to Section
2.03(d) and the Agent shall promptly notify each Bank which submitted an offer.
In the case of acceptance, such notice shall specify the aggregate principal
amount of offers (for each Stated Maturity Date) that are accepted. The
Borrower may accept any Money Market Quote in whole or in part; provided that:

                  (i)      the aggregate principal amount of each Money Market
         Borrowing may not exceed the applicable amount set forth in the
         related Money Market Quote Request;

                  (ii)     the aggregate principal amount of each Money Market
         Loan comprising a Money Market Borrowing shall be at least $10,000,000
         (and in larger integral multiples of $5,000,000) but shall not cause
         the limits specified in Section 2.03(a) to be violated;

                  (iii)    acceptance of offers may only be made in ascending
         order of Money Market Rates; and

                  (iv)     the Borrower may not accept any offer where the
         Agent has advised the Borrower that such offer fails to comply with
         Section 2.03(c)(ii) or otherwise fails to comply with the requirements
         of this Agreement (including without limitation, Section 2.03(a)).

If offers are made by 2 or more Banks with the same Money Market Rates for a
greater aggregate principal amount than the amount in respect of which offers
are accepted for the related Stated Maturity Date, the principal amount of
Money Market Loans in respect of which

                                      22
<PAGE>   29

such offers are accepted shall be allocated by the Borrower among such Banks as
nearly as possible in proportion to the aggregate principal amount of such
offers. Determinations by the Borrower of the amounts of Money Market Loans
shall be conclusive in the absence of manifest error.

                  (f)      Any Bank whose offer to make any Money Market Loan
has been accepted shall, not later than 12:00 P.M. (Atlanta, Georgia time) on
the Money Market Borrowing Date, make the amount of such Money Market Loan
allocated to it available to the Agent at its address referred to in Section
9.01 in immediately available funds. The amount so received by the Agent shall,
subject to the terms and conditions of this Agreement, be made available to the
Borrower on such date by depositing the same, in immediately available funds,
not later than 4:00 P.M. (Atlanta, Georgia time), in an account of the Borrower
maintained with Wachovia.

                  (g)      After any Money Market Loan has been funded, the
Agent shall notify the Banks of the aggregate principal amount of the Money
Market Quotes received and the highest and lowest rates included in such Money
Market Quotes.

                  SECTION 2.04.     Notes. (a) The Syndicated Loans of each
Bank shall be evidenced by a single Syndicated Loan Note payable to the order
of such Bank for the account of its Lending Office in an amount equal to the
original principal amount of such Bank's Commitment. The Swing Loans shall be
evidenced by a single Swing Loan Note payable to the order of Wachovia in the
original principal amount of $15,000,000.

                  (b)      The Money Market Loans made by any Bank to the
Borrower shall be evidenced by a single Money Market Loan Note payable to the
order of such Bank for the account of its Lending Office in an amount equal to
the original principal amount of the aggregate Commitments.

                  (c)      Upon receipt of each Bank's Notes pursuant to
Section 3.01, the Agent shall deliver such Notes to such Bank. Each Bank shall
record, and prior to any transfer of its Notes shall endorse on the schedules
forming a part thereof appropriate notations to evidence, the date, amount and
maturity of, and effective interest rate for, each Loan made by it, the date
and amount of each payment of principal made by the Borrower with respect
thereto, and such schedules of each such Bank's Notes shall constitute
rebuttable presumptive evidence of the respective principal amounts owing and
unpaid on such Bank's Notes; provided that the failure of any Bank to make, or
any error in making, any such recordation or endorsement shall not affect the
obligation of the Borrower hereunder or under the Notes or the ability of any
Bank to assign its Notes. Each Bank is hereby irrevocably authorized by the
Borrower so to endorse its Notes and to attach to and make a part of any Note a
continuation of any such schedule as and when required.

                  SECTION 2.05.     Maturity of Loans. (a) Each Loan included in
any Borrowing shall mature, and the principal amount thereof shall be due and
payable, on the last day of the Interest Period applicable to such Borrowing.

                                      23
<PAGE>   30

                  (b)      Notwithstanding the foregoing, the outstanding
principal amount of the Loans, if any, together with all accrued but unpaid
interest thereon, if any, shall be due and payable on January 29, 2003.

                  SECTION 2.06.     Interest Rates. (a) "Applicable Margin"
means:

                  (i)      for the period commencing on the Closing Date to and
         including June 30, 2001, (x) for any Base Rate Loan, 0%, and (y) for
         any Euro-Dollar Loan, 2.00%; and

                  (ii)     from and after June 30, 2001, (x) for any Base Rate
         Loan, 0.50% and (y) for each Euro-Dollar Loan, 2.50.

                  (b)      Each Base Rate Loan shall bear interest on the
outstanding principal amount thereof, for each day from the date such Loan is
made until it becomes due, at a rate per annum equal to the Base Rate for such
day plus the Applicable Margin. Such interest shall be payable for each
Interest Period on the last day thereof. Any overdue principal of and, to the
extent permitted by applicable law, overdue interest on any Base Rate Loan
shall bear interest, payable on demand, for each day until paid at a rate per
annum equal to the Default Rate.

                  (c)      Each Euro-Dollar Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at a rate per annum equal to the sum of the Applicable Margin plus the
applicable Adjusted London Interbank Offered Rate for such Interest Period.
Such interest shall be payable for each Interest Period on the last day thereof
and, if such Interest Period is longer than 3 months, at intervals of 3 months
after the first day thereof. Any overdue principal of and, to the extent
permitted by law, overdue interest on any Euro-Dollar Loan shall bear interest,
payable on demand, for each day until paid at a rate per annum equal to the
Default Rate.

                  The "Adjusted London Interbank Offered Rate" applicable to
any Interest Period means a rate per annum equal to the quotient obtained
(rounded upwards, if necessary, to the next higher 1/100th of 1%) by dividing
(i) the applicable London Interbank Offered Rate for such Interest Period by
(ii) 1.00 minus the Euro-Dollar Reserve Percentage.

                  The "London Interbank Offered Rate" applicable to any
Euro-Dollar Loan means for the Interest Period of such Euro-Dollar Loan, the
rate per annum determined on the basis of the offered rate for deposits in
Dollars of amounts equal or comparable to the principal amount of such
Euro-Dollar Loan offered for a term comparable to such Interest Period, which
rates appear on the Telerate Page 3750 effective as of 11:00 A.M., London time,
2 Euro-Dollar Business Days prior to the first day of such Interest Period,
provided that if no such offered rates appear on such page, the "London
Interbank Offered Rate" for such Interest Period will be the arithmetic average
(rounded upward, if necessary, to the next higher 1/100th of 1%) of rates
quoted by not less than 2 major banks in New York City, selected by the Agent,
at approximately 10:00 A.M., New York City time, 2 Euro-Dollar Business Days
prior to the first day of such Interest Period, for deposits in Dollars offered
by leading European banks for a period comparable to such Interest Period in an
amount comparable to the principal amount of such Euro-Dollar Loan.

                                      24
<PAGE>   31

                  "Euro-Dollar Reserve Percentage" means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in respect of "Eurocurrency liabilities" (or in
respect of any other category of liabilities which includes deposits by
reference to which the interest rate on Euro-Dollar Loans is determined or any
category of extensions of credit or other assets which includes loans by a
non-United States office of any Bank to United States residents). The Adjusted
London Interbank Offered Rate shall be adjusted automatically on and as of the
effective date of any change in the Euro-Dollar Reserve Percentage.

                  (d)      Each Money Market Loan shall bear interest on the
outstanding principal amount thereof, for each day from the date such Money
Market Loan is made until it becomes due, at a rate per annum equal to the
applicable Money Market Rate set forth in the relevant Money Market Quote. Such
interest shall be payable on the Stated Maturity Date thereof, and, if the
Stated Maturity Date occurs more than 90 days after the date of the relevant
Money Market Loan, at intervals of 90 days after the first day thereof. Any
overdue principal of and, to the extent permitted by law, overdue interest on
any Money Market Loan shall bear interest, payable on demand, for each day
until paid at a rate per annum equal to the Default Rate.

                  (e)      The Agent shall, subject to the provisions of
Section 2.03 with respect to Money Market Loans, determine each interest rate
applicable to the Loans hereunder. The Agent shall give prompt notice to the
Borrower and the Banks by telecopier of each rate of interest so determined,
and its determination thereof shall be conclusive in the absence of manifest
error.

                  (f)      After the occurrence and during the continuance of
an Event of Default, the principal amount of the Loans (and, to the extent
permitted by applicable law, all accrued interest thereon) shall bear interest
at the Default Rate and shall be payable on demand.

                  SECTION 2.07.     Fees. (a) The Borrower shall pay to the
Agent, for the ratable account of each Bank, a facility fee, calculated in the
manner provided in the last paragraph of Section 2.06(a)(ii), on the aggregate
amount of such Bank's Commitment (without taking into account the amount of the
outstanding Loans made by such Bank), at a rate per annum equal to 0.50%

Such facility fees shall accrue from and including the Closing Date to but
excluding the Termination Date and shall be payable in arrears on each March 31,
June 30, September 30 and December 31 and on the Termination Date, commencing on
March 31, 2000.

                  (b)      The Borrower shall pay to the Agent, for the account
and sole benefit of the Agent, such fees and other amounts at such times as set
forth in the Agent's Letter Agreement.

                  SECTION 2.08.     Optional Termination or Reduction of
Commitments. The Borrower may, upon at least 3 Domestic Business Days' notice
to the Agent, terminate at any time, or proportionately reduce all or any part
of the Unused Commitments, after deducting therefrom the aggregate amount of
any outstanding Money Market Loans, from time to time by an aggregate amount of
at least $10,000,000 or any larger integral multiple of $5,000,000. If the

                                      25
<PAGE>   32

Commitments are terminated in their entirety, all accrued fees (as provided
under Section 2.07) shall be due and payable on the effective date of such
termination.

                  SECTION 2.09.     Mandatory Reduction and Termination of
Commitments. (a) If, upon a transfer of assets or the discontinuance or
elimination of a Restricted Subsidiary or a division thereof or of Keebler (in
a single transaction or in a series of related transactions), the aggregate
assets so transferred or utilized in a Restricted Subsidiary or division
thereof or of Keebler to be so discontinued, when combined with all other
assets transferred, and all other assets utilized in all other Restricted
Subsidiaries or divisions thereof and of Keebler discontinued since the Closing
Date, constitute more than 30% of Consolidated Total Assets (excluding from
such calculation assets of the types described in clause (ii) of the last
sentence of Section 5.04) measured as of February 3, 1998 (the amount of such
excess being the "Excess Proceeds"), then the Borrower shall promptly (and in
any event within 5 Domestic Business Days after such sale) notify in writing
the Agent and the Banks thereof, which notice shall include the amount of the
Excess Proceeds and the amount of such Excess Proceeds which the Borrower
intends to invest in operating assets of the Borrower or its Restricted
Subsidiaries within 90 days after such sale (the "Intended Reinvestment
Amount"), and the aggregate amount of the Commitments shall be permanently
reduced (i) on the date which is 5 Domestic Business Days after such sale, by
an amount equal to the difference between the Excess Proceeds and the Intended
Reinvestment Amount, and (ii) on the date which is 90 days after such sale, by
the amount of any Excess Proceeds which was included in the Intended
Reinvestment Amount but which have not been invested in operating assets of the
Borrower within such 90 day period (and the Borrower shall notify the Agent and
the Banks of such amount on such date), and in each case the Borrower shall
make any prepayments required by Section 2.11 as a result thereof.

                  (b)      Without limiting the rights of the Banks under
Section 5.24, upon the incurrence of any New Indebtedness for Borrowed Money,
other than New Indebtedness for Borrowed Money permitted by clause (ii) of
Section 5.24, the aggregate amount of the Commitments shall be permanently
reduced by an amount equal to the net cash proceeds thereof (net of customary
fees and closing costs directly incurred in connection therewith), and the
Borrower shall make any prepayments required by Section 2.11 as a result
thereof.

                  (c)      The Commitments shall terminate on the Termination
Date and any Loans then outstanding (together with accrued interest thereon)
shall be due and payable on such date.

                  SECTION 2.10.     Optional Prepayments. (a) The Borrower may,
upon at least 1 Domestic Business Days' notice to the Agent, prepay any Base
Rate Borrowing in whole at any time, or from time to time in part in amounts
aggregating at least $5,000,000 or $500,000 as to Swing Loans, or any larger
integral multiple of $1,000,000, by paying the principal amount to be prepaid
together with accrued interest thereon to the date of prepayment. Each such
optional prepayment shall be applied to prepay ratably the Base Rate Loans of
the several Banks (or of Wachovia, in the case of Swing Loans) included in such
Base Rate Borrowing.

                  (b)      Subject to any payments required pursuant to the
terms of Section 8.05(a) for such Fixed Rate Loan, upon 3 Domestic Business
Day's prior written notice, the Borrower may prepay in minimum amounts of
$10,000,000 with additional increments of $5,000,000 (or any

                                      26
<PAGE>   33

lesser amount equal to the outstanding balance of such Loan) all or any portion
of the principal amount of any Fixed Rate Loan prior to the maturity thereof.

                  (c)      Upon receipt of a notice of prepayment pursuant to
this Section 2.10, the Agent shall promptly notify each Bank of the contents
thereof and of such Bank's ratable share of such prepayment and such notice,
once received by the Agent, shall not thereafter be revocable by the Borrower.

                  SECTION 2.11.     Mandatory Prepayments. On each date on which
the Commitments are reduced pursuant to Section 2.08 or Section 2.09, the
Borrower shall repay or prepay such principal amount of the outstanding Loans,
if any (together with interest accrued thereon and any amount due under Section
8.05(a)), as may be necessary so that after such payment the aggregate unpaid
principal amount of the Loans does not exceed the aggregate amount of the
Commitments as then reduced. In addition, the Borrower shall make such
mandatory prepayments as may be necessary from time to time to be in compliance
with the provisions of Section 5.23. Each such payment or prepayment shall be
applied first to any Swing Loans outstanding, and then ratably to the Loans of
the Banks outstanding on the date of payment or prepayment in the following
order of priority:(i) first, to Base Rate Loans; (ii) secondly, to Euro-Dollar
Loans; and (iii) lastly, to Money Market Loans.

                  SECTION 2.12.     General Provisions as to Payments. (a) The
Borrower shall make each payment of principal of, and interest on, the Loans
and of fees hereunder, not later than 11:00 A.M. (Atlanta, Georgia time) on the
date when due, in Federal or other funds immediately available in Atlanta,
Georgia, to the Agent at its address referred to in Section 9.01. The Agent
will promptly distribute to Wachovia each such payment received on account of
the Swing Loans and to each Bank its ratable share of each such payment
received by the Agent for the account of the Banks.

                  (b)      Whenever any payment of principal of, or interest
on, the Base Rate Loans, Money Market Loans or of fees hereunder shall be due
on a day which is not a Domestic Business Day, the date for payment thereof
shall be extended to the next succeeding Domestic Business Day. Whenever any
payment of principal of or interest on, the Euro-Dollar Loans shall be due on a
day which is not a Euro-Dollar Business Day, the date for payment thereof shall
be extended to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case the
date for payment thereof shall be the next preceding Euro-Dollar Business Day.

                  (c)      All payments of principal, interest and fees and all
other amounts to be made by the Borrower pursuant to this Agreement with
respect to any Loan or fee relating thereto shall be paid without setoff,
deduction or counterclaim of any kind, including, without limitation, any
deduction for, and free from, any tax, imposts, levies, duties, deductions, or
withholdings of any nature now or at anytime hereafter imposed by any
governmental authority or by any taxing authority thereof or therein excluding
in the case of the Agent and each Bank, taxes imposed on or measured by its net
income, and franchise taxes imposed on it, by the jurisdiction under the laws
of which the Agent or such Bank is organized or any political subdivision
thereof and, in the case of each Bank, taxes imposed on its income, and
franchise taxes imposed on it, by the jurisdiction of such Bank's applicable
Lending Office or any political subdivision thereof (all

                                      27
<PAGE>   34

such non-excluded taxes, imposts, levies, duties, deductions or withholdings of
any nature being "Taxes"). In the event that the Borrower is required by
applicable law to make any such withholding or deduction of Taxes with respect
to any Loan or fee or other amount, the Borrower shall pay such deduction or
withholding to the applicable taxing authority, shall promptly furnish to any
Bank in respect of which such deduction or withholding is made all receipts and
other documents evidencing such payment and shall pay to such Bank additional
amounts as may be necessary in order that the amount received by such Bank
after the required withholding or other payment shall equal the amount such
Bank would have received had no such withholding or other payment been made. If
no withholding or deduction of Taxes are payable in respect to any Loan or fee
relating thereto, the Borrower shall furnish any Bank, at such Bank's request,
either (at the option of the Borrower) a certificate from each applicable
taxing authority or an opinion of counsel acceptable to such Bank, in either
case stating that such payments are exempt from or not subject to withholding
or deduction of Taxes. If the Borrower fails to provide such original or
certified copy of a receipt evidencing payment of Taxes or certificate(s) or
opinion of counsel of exemption, the Borrower hereby agrees to compensate such
Bank for, and indemnify them with respect to, the tax consequences of the
Borrower's failure to provide evidence of tax payments or tax exemption.

                  Each Bank which is not organized under the laws of the United
States or any state thereof agrees, as soon as practicable after receipt by it
of a request by the Borrower to do so, to file all appropriate forms and take
other appropriate action to obtain a certificate or other appropriate document
from the appropriate governmental authority in the jurisdiction imposing the
relevant Taxes, establishing that it is entitled to receive payments of
principal and interest under this Agreement and the Notes without deduction and
free from withholding of any Taxes imposed by such jurisdiction; provided that
if it is unable, for any reason, to establish such exemption, or to file such
forms and, in any event, during such period of time as such request for
exemption is pending, the Borrower shall nonetheless remain obligated under the
terms of the immediately preceding paragraph.

                  In the event any Bank receives a refund of any Taxes paid by
the Borrower pursuant to this Section 2.12(c), it will pay to the Borrower the
amount of such refund promptly upon receipt thereof; provided that if at any
time thereafter it is required to return such refund, the Borrower shall
promptly repay to it the amount of such refund.

                  Without prejudice to the survival of any other agreement of
the Borrower hereunder, the agreements and obligations of the Borrower and the
Banks contained in this Section 2.12(c) shall be applicable with respect to any
Participant, Assignee or other Transferee, and any calculations required by
such provisions (i) shall be made based upon the circumstances of such
Participant, Assignee or other Transferee, and (ii) constitute a continuing
agreement and shall survive the termination of this Agreement and the payment
in full or cancellation of the Notes.

                  SECTION 2.13.     Computation of Interest and Fees. Interest
on Base Rate Loans shall be computed on the basis of a year of 360 days and
paid for the actual number of days elapsed (including the first day but
excluding the last day). Interest on Euro-Dollar Loans and Money Market Loans
shall be computed on the basis of a year of 360 days and paid for the actual
number of days elapsed, calculated as to each Interest Period from and
including the first

                                      28
<PAGE>   35

day thereof to but excluding the last day thereof. Commitment fees and any
other fees payable hereunder shall be computed on the basis of a year of 360
days and paid for the actual number of days elapsed (including the first day
but excluding the last day).

                                  ARTICLE III

                            CONDITIONS TO BORROWINGS

                  SECTION 3.01.     Conditions to First Borrowing. The
obligation of each Bank to make a Loan on the occasion of the first Borrowing
is subject to the satisfaction of the conditions set forth in Section 3.02 and
receipt by the Agent of the following (as to the documents described in
paragraphs (a),(c), (d)and (e) below, in sufficient number of counterparts for
delivery of a counterpart to each Bank and retention of one counterpart by the
Agent); provided, however, that (i) this Agreement replaces and supersedes the
Original Agreement, and (ii) all of the following conditions set forth in (b)
through (d), inclusive, and (g) below shall be deemed to have been satisfied by
the satisfaction of the same at the time of the closing of the Original
Agreement (and the Notes currently held by the Banks shall continue to evidence
the Syndicated Loans and Money Market Loans hereunder):

                  (a)      from the Borrower, the Agent and each of the
         Required Banks of either (i) a duly executed counterpart of this
         Agreement signed by such party or (ii) a facsimile transmission of
         such executed counterpart, with the original to be sent to the Agent
         by overnight courier);

                  (b)      a duly executed Syndicated Loan Note and a duly
         executed Money Market Loan Note for the account of each Bank complying
         with the provisions of Section 2.04;

                  (c)      an opinion letter of Stephen R. Avera, Assistant
         General Counsel of the Borrower, dated as of the Closing Date,
         substantially in the form of Exhibit B and covering such additional
         matters relating to the transactions contemplated hereby as the Agent
         or any Bank may reasonably request;

                  (d)      an opinion of Jones, Day, Reavis & Pogue, special
         counsel for the Agent, dated as of the Closing Date, substantially in
         the form of Exhibit C and covering such additional matters relating to
         the transactions contemplated hereby as the Agent may reasonably
         request;

                  (e)      a certificate (the "Closing Certificate")
         substantially in the form of Exhibit G), dated as of the Closing Date,
         signed by a principal financial officer of the Borrower, to the effect
         that (i) no Default has occurred and is continuing on the date of the
         first Borrowing and (ii) the representations and warranties of the
         Borrower contained in Article IV are true on and as of the date of the
         first Borrowing hereunder;

                  (f)      a certificate of the Borrower substantially in the
         form of Exhibit H (the "Officer's Certificate"), signed by the
         Secretary or an Assistant Secretary of the Borrower, certifying as to
         (i) the names, true signatures and incumbency of the officer or
         officers of the Borrower authorized to execute and deliver this
         Agreement and the Swing

                                      29
<PAGE>   36

         Loan Note, (ii) the Borrower's Certificate of Incorporation and (iii)
         the Borrower's Bylaws;

                  (g)      a Notice of Borrowing or notification pursuant to
         Section 2.03(e) of acceptance of one or more Money Market Quotes, as
         applicable;

                  (h)      a duly executed Swing Loan Note for the account of
         Wachovia complying with the provisions of Section 2.04;

                  (i)      receipt by the Agent of (i) an amendment fee payable
         to the Agent for the ratable account of each of the Banks which
         executes this Agreement on or before the Closing Date in an amount
         equal to 0.25% of the Commitments on the Closing Date, and (ii) all
         fees payable on the Closing Date pursuant to the letter agreement
         dated March 23, 2000 between the Borrower, the Agent and Wachovia
         Securities, Inc.;

                  (j)      receipt by the Agent of a certificate showing the
         calculation of the Indebtedness, the Synthetic Lease Obligations and
         the Borrowing Base pursuant to Section 5.23, as of the Fiscal Period
         just ended;

                  (k)      with respect to any indenture, agreement or other
         instrument pertaining to Indebtedness which must be amended to prevent
         the occurrence of an Event of Default under Section 6.01(e) or (f),
         receipt by the Agent of a copy of the amendments executed in
         connection therewith which prevent such occurrence, and the Agents'
         reasonable satisfaction that such amendments do not include any
         financial, negative or affirmative covenants which are more
         restrictive in any material respect on the Borrower or any of its
         Subsidiaries than those contained in this Agreement; and

                  (l)      receipt by the Agent of a Federal Reserve Form FR
         U-1 pertaining to this Agreement and the Loans hereunder in form and
         substance satisfactory to the Agent, and executed by the Agent and the
         Borrower.

                  SECTION 3.02.     Conditions to All Borrowings. The obligation
of each Bank to make a Loan on the occasion of each Borrowing or of Wachovia to
make a Swing Loan is subject to the satisfaction of the following conditions
except as expressly provided in the last sentence of this Section 3.02:

                  (a)      receipt by the Agent of a Notice of Borrowing or
         notification pursuant to Section 2.03(e) of acceptance of one or more
         Money Market Quotes, as applicable;

                  (b)      the fact that, immediately before and after such
         Borrowing, no Default shall have occurred and be continuing;

                  (c)      the fact that the representations and warranties of
         the Borrower contained in Article IV of this Agreement shall be true
         on and as of the date of such Borrowing, except to the extent such
         representations and warranties relate to a prior date; and

                  (d)      the fact that, immediately after such Borrowing, the
         conditions set forth in clauses (i) and (ii) of Section 2.01(a) shall
         have been satisfied.

                                      30
<PAGE>   37

The acceptance by the Borrower of each Syndicated Borrowing and each Money
Market Borrowing hereunder shall be deemed to be a representation and warranty
by the Borrower on the date of such Borrowing as to the truth and accuracy of
the facts specified in paragraphs (b), (c) and (d) of this Section; provided
that: (i) if such Borrowing is a Syndicated Borrowing which consists solely of
a Refunding Loan, (x) such Borrowing shall not be deemed to be such a
representation and warranty as to the truth and accuracy of the fact specified
in paragraph (c) of this Section, and (y) if the facts specified in paragraph
(b) are not true and accurate, such Refunding Loan shall be made as a Base Rate
Loan; and (ii) any representation and warranty contained in Article IV which by
its terms is made as to matters as of a specified date shall when remade
pursuant to this Section in connection with such Borrowing be deemed to be made
as to matters as of such specified date and not any later date.

                                  ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  The Borrower represents and warrants that:

                  SECTION 4.01.     Corporate Existence and Power. The Borrower
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Georgia. The Borrower is duly qualified to transact
business in every jurisdiction where, by the nature of its business, such
qualification is necessary, except for any failure to comply with the foregoing
which does not have and reasonably could not be expected to cause a Material
Adverse Effect, and has all corporate powers and all government authorizations,
licenses, consents and approvals required to engage in its business and
operations as now conducted, except for any failure to comply with the
foregoing which does not have and reasonably could not be expected to cause a
Material Adverse Effect.

                  SECTION 4.02.     Corporate and Governmental Authorization; No
Contravention. The execution, delivery and performance by the Borrower of this
Agreement, the Notes and the other Loan Documents (i) are within the Borrower's
corporate powers, (ii) have been duly authorized by all necessary corporate
action, (iii) require no action by or in respect of or filing with, any
governmental body, agency or official, (iv) do not contravene, or constitute a
default under, any provision of applicable law or regulation or of the
certificate of incorporation or by-laws of the Borrower or of any material
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or any of its Restricted Subsidiaries, and (v) do not result in
the creation or imposition of any Lien on any asset of the Borrower or any of
its Restricted Subsidiaries.

                  SECTION 4.03.     Binding Effect. This Agreement constitutes a
valid and binding agreement of the Borrower enforceable in accordance with its
terms, and the Notes and the other Loan Documents, when executed and delivered
in accordance with this Agreement, will constitute valid and binding
obligations of the Borrower enforceable in accordance with their respective
terms, provided that the enforceability hereof and thereof is subject in each
case to general principles of equity and to bankruptcy, insolvency and similar
laws affecting the enforcement of creditors' rights generally.

                                      31
<PAGE>   38

                  SECTION 4.04.     Financial Information. (a) The consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of January
2, 1999 and the related consolidated statements of income, shareholders' equity
and cash flows for the Fiscal Year then ended, reported on by Price Waterhouse
LLP, copies of which have been delivered to each of the Banks, and the
unaudited consolidated financial statements of the Borrower for the interim
period ended October 9, 1999 copies of which have been delivered to each of the
Banks, fairly present, in conformity with GAAP, the consolidated financial
position of the Borrower and its Consolidated Subsidiaries as of such dates and
their consolidated results of operations and cash flows for such periods
stated.

                  (b)      Since January 2, 1999, there has been no event, act,
condition or occurrence which has or reasonably could be expected to cause a
Material Adverse Effect.

                  SECTION 4.05.     No Litigation. There is no action, suit or
proceeding pending, or to the knowledge of the Borrower threatened, against or
affecting the Borrower or any of its Restricted Subsidiaries before any court
or arbitrator or any governmental body, agency or official which has or
reasonably could be expected to have a Material Adverse Effect or which in any
manner draws into question the validity of this Agreement, the Notes or any of
the other Loan Documents.

                  SECTION 4.06.     Compliance with ERISA. (a) The Borrower and
each member of the Controlled Group have fulfilled their obligations under the
minimum funding standards of ERISA and the Code with respect to each Plan and
are in compliance in all material respects with the presently applicable
provisions of ERISA and the Code, and have not incurred any liability to the
PBGC or a Plan under Title IV of ERISA.

                  (b)      Neither the Borrower nor any member of the
Controlled Group has incurred any withdrawal liability with respect to any
Multiemployer Plan under Title IV of ERISA, and no such liability is expected
to be incurred.

                  SECTION 4.07.     Compliance with Laws; Payment of Taxes. The
Borrower and, to the best of the Borrower's knowledge, its Material
Subsidiaries, are in compliance with all applicable laws, regulations and
similar requirements of governmental authorities, except where such compliance
is being contested in good faith through appropriate proceedings or which does
not have and reasonably could not be expected to cause a Material Adverse
Effect. There have been filed on behalf of the Borrower and its Material
Subsidiaries all Federal, state and local income, material excise, material
property and other material tax returns which are required to be filed by them
and all taxes due pursuant to such returns or pursuant to any assessment
received by or on behalf of the Borrower or any Material Subsidiary have been
paid, except where such payments are being contested in good faith through
appropriate proceedings or the failure to pay does not have and reasonably
could not be expected to cause a Material Adverse Effect. The charges, accruals
and reserves on the books of the Borrower and its Material Subsidiaries in
respect of taxes or other governmental charges are, in the opinion of the
Borrower, adequate. As of the Closing Date, United States income tax returns of
the Borrower and its Material Subsidiaries have been examined and closed
through the 1995 Fiscal Year.

                                      32
<PAGE>   39

                  SECTION 4.08.     Subsidiaries. Each of the Borrower's
Subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation, is duly qualified
to transact business in every jurisdiction where, by the nature of its
business, such qualification is necessary, and has all corporate powers and all
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted, except for any failure to comply with the
foregoing which does not have and reasonably could not be expected to cause a
Material Adverse Effect. As of the Closing Date, the Borrower has no
Subsidiaries except for those Subsidiaries listed on Schedule 4.08, which
assumes the consummation of the Keebler Acquisition and which accurately sets
forth each such Subsidiary's complete name and jurisdiction of incorporation.
None of such Subsidiaries, other than those listed as such on Schedule 4.08, is
a Material Subsidiary as of the Closing Date. Within 15 days after any
Subsidiary becomes a Material Subsidiary, or the creation or acquisition of any
Subsidiary which becomes a Material Subsidiary, the Borrower will send to the
Agent and each of the Banks either a supplement to or replacement of Schedule
4.08 (showing such Subsidiary and indicating that it is a Material Subsidiary),
or a copy of Form 8-K sent to the Securities and Exchange Commission, showing
such Subsidiary as a Material Subsidiary.

                  SECTION 4.09.     Investment Company Act. Neither the Borrower
nor any of its Subsidiaries is an "investment company" within the meaning of
the Investment Company Act of 1940, as amended.

                  SECTION 4.10.     Public Utility Holding Company Act. Neither
the Borrower nor any of its Subsidiaries is a "holding company", or a
"subsidiary company" of a "holding company", or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", as such terms are
defined in the Public Utility Holding Company Act of 1935, as amended.

                  SECTION 4.11.     Ownership of Property; Liens. Each of the
Borrower and its Material Subsidiaries has title to, or leasehold or other
interests in, its properties sufficient for the conduct of its business, and
none of such property is subject to any Lien except as permitted in Section
5.16.

                  SECTION 4.12.     No Default. Neither the Borrower nor any of
its Material Subsidiaries is in default under or with respect to any agreement,
instrument or undertaking to which it is a party or by which it or any of its
property is bound which has or reasonably could be expected to cause a Material
Adverse Effect. No Default or Event of Default has occurred and is continuing.

                  SECTION 4.13.     Full Disclosure. The Borrower's annual
report on Form 10-K for the fiscal year ended at January 2, 1999, a copy of
which has been furnished by the Borrower to the Agent and the Banks, did not,
as of the date such Form 10-K was filed with the Securities and Exchange
Commission, contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. From the date of
filing of the Borrower's quarterly report on Form 10-Q for the fiscal quarter
ended on October 9, 1999 through the date hereof, the Borrower has not filed a
current report on Form 8-K with the Securities and Exchange

                                      33
<PAGE>   40

Commission and, as of the date hereof, no event or condition exists which would
require such filing by the Borrower pursuant to the Securities Exchange Act of
1934, as amended, except for any such event or condition which has heretofore
been disclosed in writing to the Agent and the Banks by delivery to the Agent
and the Banks of a Form 8-K.

                  SECTION 4.14.     Environmental Matters. (a) Neither the
Borrower nor any Restricted Subsidiary is subject to any Environmental
Liability which has or reasonably could be expected to cause a Material Adverse
Effect and, to the best of the Borrower's knowledge, neither the Borrower nor
any Restricted Subsidiary has been designated as a potentially responsible
party under CERCLA or under any state statute similar to CERCLA. To the best of
the Borrower's knowledge, none of the Properties has been identified on any
current or proposed (i) National Priorities List under 40 C.F.R. ss. 300, (ii)
CERCLIS list or (iii) any list arising from a state statute similar to CERCLA.

                  (b)      To the best of the Borrower's knowledge, no
Hazardous Materials have been or are being used, produced, manufactured,
processed, treated, recycled, generated, stored, disposed of, managed or
otherwise handled at, or shipped or transported to or from the Properties or
are otherwise present at, on, in or under the Properties, or, to the best of
the knowledge of the Borrower, at or from any adjacent site or facility, except
for Hazardous Materials, such as cleaning solvents, pesticides and other
materials used, produced, manufactured, processed, treated, recycled,
generated, stored, disposed of, managed, or otherwise handled in material
compliance with all applicable Environmental Requirements.

                  (c)      To the best of the Borrower's knowledge, the
Borrower, and each of its Restricted Subsidiaries and Affiliates, has procured
all Environmental Authorizations necessary for the conduct of its business, and
is in compliance with all Environmental Requirements in connection with the
operation of the Properties and the Borrower's, and each of its Restricted
Subsidiary's and Affiliate's, respective businesses, except where failure to
comply does not have and reasonably could not be expected to cause a Material
Adverse Effect.

                  SECTION 4.15.     Capital Stock. All Capital Stock,
debentures, bonds, notes and all other securities of the Borrower presently
issued and outstanding are validly and properly issued in accordance with all
applicable laws in all material respects, including but not limited to, the
"Blue Sky" laws of all applicable states and the federal securities laws,
except to the extent any failure with respect thereto would not have and
reasonably could not be expected to cause a Material Adverse Effect. The issued
shares of Capital Stock of the Borrower's Wholly Owned Subsidiaries are owned
by the Borrower free and clear of any Lien or adverse claim. At least a
majority of the issued shares of capital stock of each of the Borrower's other
Subsidiaries (other than Wholly Owned Subsidiaries) is owned by the Borrower
free and clear of any Lien or adverse claim.

                  SECTION 4.16.     Margin Stock. Neither the Borrower nor any
of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of purchasing or carrying any Margin Stock (other
than its ownership of stock in Keebler), and no part of the proceeds of any
Loan will be used for any purpose in violation of the provisions of Regulation
T, U or X.

                                      34
<PAGE>   41

                  SECTION 4.17.     Insurance. The Borrower and each of its
Material Subsidiaries has (either in the name of the Borrower or in such
Material Subsidiary's own name), with financially sound and reputable insurance
companies, insurance in at least such amounts (including deductibles,
co-insurance and self-insurance with respect to which adequate reserves are
maintained) and against at least such risks (including on all its property, and
public liability and worker's compensation) as are usually insured against in
the same general area by companies of established repute engaged in the same or
similar business and similarly situated.

                                   ARTICLE V

                                   COVENANTS

                  The Borrower agrees that, so long as any Bank has any
Commitment hereunder or any amount payable hereunder or under any Note remains
unpaid (unless the Required Banks consent in writing):

                  SECTION 5.01.     Information. The Borrower will deliver to
each of the Banks:

                  (a)      as soon as available and in any event within 90 days
after the end of each Fiscal Year.

                           (i)      a consolidated balance sheet of the
         Borrower and its Consolidated Subsidiaries as of the end of such
         Fiscal Year and the related consolidated statements of income,
         shareholders' equity and cash flows for such Fiscal Year, setting
         forth in each case in comparative form the figures for the previous
         fiscal year, all certified by PricewaterhouseCoopers or other
         independent public accountants of nationally recognized standing, with
         such certification to be free of exceptions and qualifications not
         acceptable to the Required Banks,

                           (ii)     so long as there is an Unrestricted
         Subsidiary, a consolidated balance sheet and statement of income for
         such periods which accounts for the Unrestricted Subsidiaries using an
         equity basis of accounting, in each case setting forth in each case in
         comparative form the figures for the previous fiscal year, accompanied
         by a restricted use report as to such balance sheet and income
         statement from PricewaterhouseCoopers LLP or other nationally
         recognized standing, which report may be qualified on the basis that
         the use of the equity basis of accounting does not conform to GAAP and
         qualified as to the absence of a statement of cash flows and as to the
         absence of footnotes and otherwise to be free of exceptions and
         qualifications not acceptable to the Required Banks; and

                           (iii)    simultaneously with the delivery of each
         set of financial statements referred to in clauses (i) and (ii) above,
         a copy of the auditor's management letter furnished to the Borrower by
         such independent public accountants.

                  (b)      as soon as available and in any event within 45 days
after the end of each of the first 3 Fiscal Quarters of each Fiscal Year;

                                      35
<PAGE>   42

                           (i)      a consolidated balance sheet of the
         Borrower and its Consolidated Subsidiaries as of the end of such
         Fiscal Quarter and the related statement of income and statement of
         cash flows for such Fiscal Quarter and for the portion of the Fiscal
         Year ended at the end of such Fiscal Quarter, setting forth in each
         case in comparative form the figures for the corresponding portion of
         the previous Fiscal Year, all certified (subject to normal year-end
         adjustments) as to fairness of presentation, GAAP and consistency by
         the chief financial officer or the chief accounting officer of the
         Borrower;

                           (ii)     so long as there is an Unrestricted
         Subsidiary, a consolidated balance sheet and statement of income for
         such periods which accounts for the Unrestricted Subsidiaries using an
         equity basis of accounting, in each case setting forth in each case in
         comparative form the figures for the corresponding Fiscal Quarter and
         the corresponding portion of the previous Fiscal Year, all certified
         (subject to normal year-end adjustments and to qualification based on
         the use of the equity basis of accounting ) as to fairness of
         presentation, GAAP and consistency by the chief financial officer or
         the chief accounting officer of the Borrower;

                  (c)      simultaneously with the delivery of each set of
financial statements referred to in paragraphs (a) and (b) above, a
certificate, substantially in the form of Exhibit F (a "Compliance
Certificate"), of the chief financial officer or the chief accounting officer
of the Borrower (i) setting forth in reasonable detail the calculations
required to establish whether the Borrower was in compliance with the
requirements of Sections 5.13 through 5.19, inclusive, and 5.22 and 5.25 on the
date of such financial statements and (ii) stating whether any Default exists
on the date of such certificate and, if any Default then exists, setting forth
the details thereof and the action which the Borrower is taking or proposes to
take with respect thereto;

                  (d)      simultaneously with the delivery of each set of
annual financial statements referred to in paragraph (a) above, a statement of
the firm of independent public accountants which reported on such statements to
the effect that nothing has come to their attention to cause them to believe
that any Default under Sections 5.13 through 5.19, inclusive, and Section 5.22
existed on the date of such financial statements;

                  (e)      within 5 Domestic Business Days after the Borrower
becomes aware of the occurrence of any Default, a certificate of a senior
financial officer or accounting officer or the chief financial officer or the
chief accounting officer or the Treasurer of the Borrower setting forth the
details thereof and the action which the Borrower is taking or proposes to take
with respect thereto;

                  (f)      promptly upon the mailing thereof to the
shareholders of the Borrower generally, copies of all financial statements,
reports and proxy statements so mailed;

                  (g)      promptly upon the filing thereof, copies of all
registration statements (other than the exhibits thereto and any registration
statements on Form S-8 or its equivalent) and annual or quarterly reports which
the Borrower shall have filed with the Securities and Exchange Commission;

                                      36
<PAGE>   43

                  (h)      if and when any member of the Controlled Group (i)
gives or is required to give notice to the PBGC of any "reportable event" (as
defined in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable
event given or required to be given to the PBGC; (ii) receives notice of
complete or partial withdrawal liability under Title IV of ERISA, a copy of
such notice; or (iii) receives notice from the PBGC under Title IV of ERISA of
an intent to terminate or appoint a trustee to administer any Plan, a copy of
such notice;

                  (i)      within 15 days after the receipt thereof, a copy of
the report of Arthur Andersen Consulting to the Borrower rendered pursuant to
engagement letter dated January 12, 2000; and

                  (j)      from time to time such additional information
regarding the financial position or business of the Borrower and its
Subsidiaries (other than non-public information as to the Unrestricted
Subsidiaries) as the Agent, at the request of any Bank, may reasonably request.

                  SECTION 5.02.     Inspection of Property, Books and Records.
The Borrower will (i) keep, and cause each Subsidiary to keep, proper books of
record and account in which full, true and correct entries in conformity with
GAAP shall be made of all dealings and transactions in relation to its business
and activities; and (ii) permit, and cause each Restricted Subsidiary to
permit, representatives of any Bank (x) at such Bank's expense and upon
reasonable notice and at a time reasonably convenient to the Borrower (but in
any event within 10 days of such notice) prior to the occurrence and
continuance of a Default and (y) at the Borrower's expense and without prior
notice after the occurrence and continuance of a Default, to visit and inspect
any of their respective properties, to examine and make abstracts from any of
their respective books and records and to discuss their respective affairs,
finances and accounts with their respective officers, employees and independent
public accountants. The Borrower agrees to cooperate and assist in such visits
and inspections, in each case at such reasonable times and as often as may
reasonably be desired.

                  SECTION 5.03.     Maintenance of Existence. The Borrower will
at all times preserve and keep in full force and effect its corporate
existence. Subject to Section 5.04, the Borrower will at all times preserve and
keep in full force and effect the corporate existence of each of its Restricted
Subsidiaries (unless merged into the Borrower or a Restricted Subsidiary) and
all rights and franchises of the Borrower and its Restricted Subsidiaries
unless, in the good faith judgment of the Borrower, the termination of or
failure to preserve and keep in full force and effect such corporate existence,
right or franchise would not, individually or in the aggregate, have and could
not reasonably be expected to cause a Material Adverse Effect. The Borrower
will, and will cause each Restricted Subsidiary (subject to Section 5.04), at
all times to carry on its business in the food or beverage business or any
related line of business.

                  SECTION 5.04.     Consolidations, Mergers and Sales of Assets.
The Borrower will not, nor will it permit any Material Subsidiary to,
consolidate or merge with or into, or sell, lease or otherwise transfer all or
any substantial part of its assets to, any other Person, or discontinue or
eliminate any business line or segment, provided that (a) the Borrower

                                      37
<PAGE>   44

may merge with another Person if (i) such Person was organized under the laws
of the United States of America or one of its states, (ii) the Borrower is the
corporation surviving such merger and (iii) immediately after giving effect to
such merger, no Default shall have occurred and be continuing, (b) Subsidiaries
of the Borrower may merge with one another, provided that in the case of a
merger of a Restricted Subsidiary with an Unrestricted Subsidiary, the
Restricted Subsidiary is the corporation surviving such merger, (c) other
Persons may merge into or with Subsidiaries to effect an acquisition permitted
by Section 5.15 and (d) the foregoing limitation on the sale, lease or other
transfer of assets and on the discontinuation or elimination of a Subsidiary or
division shall not prohibit (x) transfers of assets (including stock of a
Restricted Subsidiary) to or among Restricted Subsidiaries, (y) during any
Fiscal Year, a transfer of assets other than Margin Stock or the discontinuance
or elimination of a Subsidiary or division (in a single transaction or in a
series of related transactions) unless the aggregate assets to be so
transferred or utilized in a Restricted Subsidiary or division to be so
discontinued, when combined with all other assets transferred, and all other
assets utilized in all other Restricted Subsidiaries or divisions discontinued,
in any Fiscal Year, constituted more than 15% of Adjusted Consolidated Total
Assets measured as of the end of the immediately preceding Fiscal Year and (z)
transfers of (but not Liens on) Margin Stock. Nothing in this Section 5.04
shall be interpreted to (i) limit or abridge the provisions of Section 2.09(a)
or (ii) restrict the Borrower's ability to dispose of (1) vehicles, (2)
delivery routes, (3) assets obtained through acquisitions of businesses or
assets on or after the date hereof, provided that proceeds of any such
disposition shall be reinvested in the Borrower by reducing Indebtedness or by
investing in operating assets, and (4) obsolete, under-performing or non-core
assets, disposition of which, in management's judgment, would enhance the
Borrower's operations and profitability, and dispositions described in this
sentence shall not be subject to, or included in the computations under, clause
(d) above.

                  SECTION 5.05.     Use of Proceeds. The proceeds of the Loans
shall be used for general corporate purposes, including the Keebler Acquisition
and other acquisitions permitted by Section 5.15, and the repayment of
Indebtedness; provided, that no portion of the proceeds of the Loans will be
used by the Borrower or any Subsidiary (i) in connection with, whether directly
or indirectly, any tender offer for, or other acquisition of, stock of any
corporation with a view towards obtaining control of such other corporation,
unless such tender offer or other acquisition is to be made on a negotiated
basis with the approval of the Board of Directors of the Person to be acquired,
and the provisions of Section 5.16 would not be violated, (ii) in violation of
Section 4.16, or (iii) for any purpose in violation of any applicable law or
regulation.

                  SECTION 5.06.     Compliance with Laws; Payment of Taxes. (a)
The Borrower will, and will cause each of its Material Subsidiaries and each
member of the Controlled Group to, comply with applicable laws (including but
not limited to ERISA), regulations and similar requirements of governmental
authorities (including but not limited to PBGC), except where the necessity of
such compliance is being contested in good faith through appropriate
proceedings diligently pursued or if failure to comply does not have and
reasonably could not be expected to cause a Material Adverse Effect. The
Borrower will, and will cause each of its Material Subsidiaries to, pay
promptly when due all taxes, assessments, governmental charges, claims for
labor, supplies, rent and other obligations which, if unpaid, might become a
lien against the property of the Borrower or any Restricted Subsidiary, except
liabilities being contested in good faith and against which, if requested by
the Agent, the Borrower will set up

                                      38
<PAGE>   45

reserves in accordance with GAAP and liabilities the nonpayment of which would
not have and reasonably could not be expected to cause a Material Adverse
Effect.

                  (b)      The Borrower shall not permit the aggregate complete
or partial withdrawal liability under Title IV of ERISA with respect to
Multiemployer Plans incurred by the Borrower and members of the Controlled
Group to exceed $5,000,000 at any time. For purposes of this Section 5.06(b),
the amount of withdrawal liability of the Borrower and members of the
Controlled Group at any date shall be the aggregate present value of the amount
claimed to have been incurred less any portion thereof which the Borrower and
members of the Controlled Group have paid or as to which the Borrower
reasonably believes, after appropriate consideration of possible adjustments
arising under Sections 4219 and 4221 of ERISA, it and members of the Controlled
Group will have no liability, provided that the Borrower shall obtain prompt
written advice from independent actuarial consultants supporting such
determination. The Borrower agrees (i) once in each year, beginning with the
1998 Fiscal Year, to request a current statement of the withdrawal liability of
the Borrower and members of the Controlled Group from each Multiemployer Plan,
if any, and (ii) to transmit a copy of such statement to the Agent and the
Banks within 15 days after the Borrower receives the same.

                  SECTION 5.07.     Insurance. The Borrower will maintain, and
will cause each of its Material Subsidiaries to maintain (either in the name of
the Borrower or in such Material Subsidiary's own name), with financially sound
and reputable insurance companies, insurance on all its property in at least
such amounts (including deductibles, co-insurance and self-insurance, if
adequate reserves are maintained with respect thereto) and against at least
such risks (including on all its property, and public liability and worker's
compensation) as are usually insured against in the same general area by
companies of established repute engaged in the same or similar business and
similarly situated.

                  SECTION 5.08.     Change in Fiscal Year. The Borrower will not
change its Fiscal Year without the consent of the Required Banks, which shall
not be unreasonably withheld (taking into consideration for such purpose the
effect, if any, such change would have on the financial covenants contained in
this Agreement).

                  SECTION 5.09.     Maintenance of Property. The Borrower shall,
and shall cause each Restricted Subsidiary to, maintain all of its properties
and assets in good condition, repair and working order, ordinary wear and tear
excepted, except where any failure would not have and could not reasonably be
expected to cause a Material Adverse Effect.

                  SECTION 5.10.     Environmental Notices. The Borrower shall
furnish to the Banks and the Agent prompt written notice of all Environmental
Liabilities, pending, threatened or anticipated Environmental Proceedings,
Environmental Notices, Environmental Judgments and Orders, and Environmental
Releases of which the Borrower shall have received actual notice or have actual
knowledge at, on, in, under or in any way affecting the Properties, and all
facts, events, or conditions that could lead to any of the foregoing, if the
amount of liability or of remediation cost to the Borrower has or reasonably
could be expected to cause a Material Adverse Effect.

                                      39
<PAGE>   46

                  SECTION 5.11.     Environmental Matters. The Borrower and its
Material Subsidiaries will not, and will not knowingly permit any Third Party
to, use, produce, manufacture, process, treat, recycle, generate, store,
dispose of, manage at, or otherwise handle, or ship or transport to or from the
Properties any Hazardous Materials in violation of applicable Environmental
Requirements, except to the extent that failure to comply would not have and
reasonably could not be expected to cause a Material Adverse Effect.

                  SECTION 5.12.     Environmental Release. The Borrower agrees
that upon its becoming aware of the occurrence of an Environmental Release,
except for any Environmental Release which occurred in substantial compliance
with all Environmental Requirements, at or on any of the Properties it will act
promptly to determine the extent of, and to take such remedial action to
eliminate, any such Environmental Release, whether or not ordered or otherwise
directed to do so by any Environmental Authority, except to the extent that
failure to take remedial action would not have and reasonably could not be
expected to cause a Material Adverse Effect.

                  SECTION 5.13.     Transactions with Affiliates. Neither the
Borrower nor any of its Material Subsidiaries shall enter into, or be a party
to, any transaction with any Affiliate of the Borrower or such Material
Subsidiary (which Affiliate is not the Borrower or a Restricted Subsidiary,
other than a Person in which the Borrower or such Material Subsidiary owns less
than a majority interest and which, if it were a Restricted Subsidiary, would
not be a Material Subsidiary), except as permitted by law and in the ordinary
course of business and pursuant to reasonable terms which either (x) are no
less favorable to Borrower or such Material Subsidiary than would be obtained
in a comparable arm's length transaction with a Person which is not an
Affiliate or (y) have been approved by a majority of the Board of Directors of
the Borrower or such Material Subsidiary; provided, that the foregoing shall
not affect the ability of the Borrower or any Material Subsidiary to determine,
in its sole discretion, the amount or form of executive or director
compensation from time to time.

                  SECTION 5.14.     Loans or Advances. Neither the Borrower nor
any of its Material Subsidiaries shall make loans or advances to any Person
except as permitted by Section 5.16 and except: (i) loans or advances to
employees not exceeding $10,000,000 in the aggregate principal amount
outstanding at any time, in each case made in the ordinary course of business
and consistent with practices existing on the Closing Date; (ii) deposits
required by government agencies or public utilities; (iii) loans or advances to
and among Borrower and its Wholly Owned Subsidiaries; and (iv) other loans or
advances, to Persons other than the Unrestricted Subsidiaries (loans and
advances to Unrestricted Subsidiaries not being permitted), in an aggregate
amount outstanding which do not exceed 15% of Adjusted Consolidated Total
Assets as of the last day of the immediately preceding Fiscal Quarter; provided
that after giving effect to the making of any loans, advances or deposits
permitted by this Section, no Default shall be in existence or be created
thereby.

                  SECTION 5.15.     Investments. Neither the Borrower nor any of
its Restricted Subsidiaries shall make Investments in any Person except as
permitted by Section 5.14 and except Investments in (i) direct obligations of
the United States Government maturing within one year, (ii) certificates of
deposit issued by a commercial bank whose credit is satisfactory to the Agent,
(iii) commercial paper rated A1 or the equivalent thereof by Standard & Poor's
Ratings

                                      40
<PAGE>   47

Group, a division of McGraw-Hill, Inc. or P1 or the equivalent thereof by
Moody's Investors Service, Inc. and in either case maturing within 6 months
after the date of acquisition; (iv) tender bonds the payment of the principal
of and interest on which is fully supported by a letter of credit issued by a
United States bank whose long-term certificates of deposit are rated at least
AA or the equivalent thereof by Standard & Poor's Corporation and Aa or the
equivalent thereof by Moody's Investors Service, Inc.; (v) Investments by the
Borrower or any Restricted Subsidiary in the stock (or other ownership
interests) of Persons which are Restricted Subsidiaries as of the Closing Date
and/or (vi) Permitted Keebler Investments; provided, however, immediately after
giving effect to the making of any Investment, no Default shall have occurred
and be continuing.

                  SECTION 5.16.     Negative Pledge. Neither the Borrower nor
any Restricted Subsidiary will create, assume or suffer to exist any Lien on
any asset now owned or hereafter acquired by it, except:

                  (a)(i)   Liens existing on the date of the Original Agreement
securing Indebtedness outstanding on the date of the Original Agreement in an
aggregate principal amount not exceeding $24,000,000 and (ii) Liens in favor of
the Agent, for the ratable benefit of the Banks, to secure the Loans and other
obligations under this Agreement and (if applicable) under any other agreement
pertaining to Indebtedness which is required to be equally and ratably secured
by any Lien securing the Loans;

                  (b)      any Lien existing on any specific fixed asset of any
corporation at the time such corporation becomes a Restricted Subsidiary and
not created in contemplation of such event;

                  (c)      any Lien on any specific fixed asset (real or
personal) securing Indebtedness incurred or assumed for the purpose of
financing all or any part of the cost of acquiring or constructing such asset,
provided that such Lien attaches to such asset concurrently with or within 18
months after the acquisition or completion of construction thereof;

                  (d)      any Lien on any specific fixed asset of any
corporation existing at the time such corporation is merged or consolidated
with or into the Borrower or a Restricted Subsidiary and not created in
contemplation of such event;

                  (e)      any Lien existing on any specific fixed asset prior
to the acquisition thereof by the Borrower or a Restricted Subsidiary and not
created in contemplation of such acquisition;

                  (f)      Liens on assets of a Restricted Subsidiary securing
Indebtedness owing by any Restricted Subsidiary to the Borrower or by any
Restricted Subsidiary to another Restricted Subsidiary;

                  (g)      any Lien arising out of the refinancing, extension,
renewal or refunding of any Indebtedness secured by any Lien permitted by any
of the foregoing paragraphs of this Section, provided that (i) such
Indebtedness is not secured by any additional assets, and (ii) the amount of
such Indebtedness secured by any such Lien is not increased;

                                      41
<PAGE>   48

                  (h)      Liens incidental to the conduct of its business or
the ownership of its assets which (i) do not secure Indebtedness and (ii) do
not in the aggregate materially detract from the value of its assets or
materially impair the use thereof in the operation of its business;

                  (i)      Liens imposed by any governmental authority for
taxes, assessments or charges not yet delinquent or which are being contested
in good faith and by appropriate proceedings if adequate reserves with respect
thereto are maintained on the books of the Borrower or any of its Subsidiaries,
as the case may be, in accordance with GAAP;

                  (j)      carriers', warehousemen's, mechanics',
materialmen's, repairmen's or other like Liens arising in the ordinary course
of business (whether or not statutory) which are not overdue for a period of
more than 30 days or which are being contested in good faith and by appropriate
proceedings, for which a reserve or other appropriate provisions, if any, as
shall be required by GAAP shall have been made;

                  (k)      Liens, pledges or deposits to secure non-delinquent
obligations under worker's compensation, unemployment insurance and other
social security legislation and Liens arising from the pledge by the Borrower
or any of its Subsidiaries of industrial revenue bonds or other instruments to
secure reimbursement obligations under letters of credit issued to support the
payment of such bonds or instruments;

                  (l)      Liens on capital stock of or other ownership
interests in any Person not a Restricted Subsidiary of the Borrower securing
Indebtedness of such Person;

                  (m)      Liens resulting from progress payments or partial
payments under United States government contracts or subcontracts;

                  (n)      Liens arising from legal proceedings, so long as
such proceedings are being contested in good faith by appropriate proceedings
diligently conducted and so long as execution is stayed on all judgments
resulting from any such proceedings;

                  (o)      grants of security and rights of setoff in deposit
or credit accounts, including demand, savings, passbook, share draft or like
accounts, certificates of deposit, money market accounts, items held for
collection or deposit, commercial paper, negotiable instruments and similar
accounts and instruments held at banks or financial institutions to secure the
payment or reimbursement under overdraft, acceptance and similar facilities and
rights of setoff, banker's liens and other similar rights arising solely by
operation of law; and

                  (p)      Liens not otherwise permitted by the foregoing
paragraphs of this Section securing Indebtedness (other than indebtedness
represented by the Notes) in an aggregate principal amount at any time
outstanding which, together with the aggregate amount of Indebtedness of
Restricted Subsidiaries permitted by Section 5.20(iv), does not exceed 20% of
Adjusted Consolidated Net Worth as of the last day of the immediately preceding
Fiscal Quarter.

                                      42
<PAGE>   49

                  SECTION 5.17.     Adjusted Fixed Charges Coverage Ratio. At
the end of each Fiscal Quarter, commencing with the second Fiscal Quarter of
the 2000 Fiscal Year, the ratio of Adjusted EBILTDA to Adjusted Consolidated
Fixed Charges shall at all times be equal to or greater than the ratio set
forth below for such Fiscal Quarter of each Fiscal Year set forth below:

<TABLE>
<CAPTION>

                                                  Adjusted Fixed Charges
         Fiscal Quarter         Fiscal Year       Coverage Ratio
         --------------         -----------       --------------

         <S>                    <C>               <C>
         Second                 2000              1.10 to 1.0
         Third                  2000              1.15 to 1.0
         Fourth                 2000              1.20 to 1.0
         First                  2001              1.25 to 1.0
         Second                 2001              1.25 to 1.0
         Third                  2001              1.25 to 1.0
         Fourth                 2001
         and thereafter                           1.50 to 1.0
</TABLE>

                  SECTION 5.18.     Leverage Ratio. The Leverage Ratio shall at
all times be equal to or less than 0.65 to 1.0.

                  SECTION 5.19.     Minimum Adjusted Consolidated Net Worth.
Adjusted Consolidated Net Worth will at no time be less than $487,569,000, plus
the sum of (x) 50% of the cumulative Net Proceeds of Capital Stock received
during any period after April 27, 1998, plus (y) 50% of any equity resulting
from a conversion of Indebtedness of the Borrower during any period after April
27, 1998, less (z) any amount of equity of the Borrower repurchased during any
period after April 27, 1998, calculated quarterly at the end of each Fiscal
Quarter.

                  SECTION 5.20.     Subsidiary Borrowings. The Borrower shall
not permit any Restricted Subsidiary to become liable for any Indebtedness,
whether secured or unsecured, except: (i) such of the foregoing as is owed to
the Borrower or another Wholly-Owned Subsidiary; (ii) Indebtedness or
obligations secured by Liens permitted by Section 5.16; (iii) Indebtedness or
obligations of a Subsidiary outstanding at the time such Subsidiary becomes a
Subsidiary, provided that (a) such Indebtedness shall not have been incurred in
contemplation of such Subsidiary becoming a Subsidiary, and (b) immediately
after such Subsidiary becomes a Subsidiary, no Default or Event of Default
shall exist, and provided, further, that such Indebtedness may not be extended,
renewed, or refunded except as otherwise permitted by this Agreement; and (iv)
subject to the provisions of Section 5.24 (and, if applicable, Sections 2.09(b)
and 2.11), other Indebtedness which, when combined with the total of the
Indebtedness secured by all Liens permitted by Section 5.16(p), without
duplication, does not exceed 20% of Adjusted Consolidated Net Worth as of the
last day of the immediately preceding Fiscal Quarter.

                  SECTION 5.21.     Separateness from Unrestricted Subsidiaries.
The Borrower shall conduct its business and operations in accordance with the
following provisions:

                  (a)      maintain books and records and bank accounts
separate from those of the Unrestricted Subsidiaries;

                                      43
<PAGE>   50

                  (b)      maintain its bank accounts and all its other assets
separate from those of the Unrestricted Subsidiaries;

                  (c)      hold itself out to creditors and the public as a
legal entity separate and distinct from the Unrestricted Subsidiaries;

                  (d)      prepare separate tax returns and financial
statements showing it as a separate member of a consolidated group of which the
Unrestricted Subsidiaries also are members;

                  (e)      allocate and charge fairly and reasonably any common
employee or overhead shared with any of the Unrestricted Subsidiaries;

                  (f)      transact all business with Unrestricted Subsidiaries
on an arm's length basis and enter into transactions with Unrestricted
Subsidiaries only on a commercially reasonable basis;

                  (g)      conduct business in its own name and use separate
stationery, invoices and checks;

                  (h)      not commingle its assets or funds with those of any
Unrestricted Subsidiary;

                  (i)      not assume, Guarantee or pay the Indebtedness of any
Unrestricted Subsidiary;

                  (j)      pay its own liabilities and expenses only out of its
own funds, and not pay any liabilities and expenses of any of the Unrestricted
Subsidiaries;

                  (k)      pay salaries of its own employees from its own
funds, and not pay salaries of the employees of any Unrestricted Subsidiary;

                  (l)      not hold out its credit as being available to
satisfy the obligations of any Unrestricted Subsidiary;

                  (m)      not make loans to any Unrestricted Subsidiary or buy
or hold evidence of indebtedness issued by any Unrestricted Subsidiary;

                  (n)      not pledge its assets for the benefit of any
Unrestricted Subsidiary; and

                  (o)      correct any known misunderstanding regarding its
identity as being separate from the Unrestricted Subsidiaries.

                  SECTION 5.22.     Adjusted Consolidated EBITDA. At the end of
each Fiscal Quarter, commencing with the first Fiscal Quarter of the 2000
Fiscal Year, Adjusted Consolidated EBITDA shall at all times equal to or
greater than the amount set forth below for each Fiscal Quarter of each Fiscal
Year set forth below, and shall be calculated (i) at the end of

                                      44
<PAGE>   51

each Fiscal Quarter in the 2000 Fiscal Year, for such Fiscal Quarter only, and
(ii) at the end of each Fiscal Quarter thereafter, for the 4 Fiscal Quarter
period then ending.

<TABLE>
<CAPTION>

                                                  Adjusted
         Fiscal Quarter         Fiscal Year       Consolidated EBITDA
         --------------         -----------       -------------------

         <S>                    <C>               <C>
         First                  2000              $ 26,500,000
         Second                 2000              $ 18,500,000
         Third                  2000              $ 24,500,000
         Fourth                 2000              $ 25,000,000
         First                  2001              $105,000,000
         Second                 2001              $105,000,000
         Third                  2001              $115,000,000
         Fourth                 2001              $115,000,000
         First and thereafter   2002              $125,000,000
</TABLE>

                  SECTION 5.23.     Borrowing Base. At the end of each Fiscal
Period, the sum of (i) all Indebtedness (including the Loans) of the Borrower
and its Restricted Subsidiaries plus (ii) all Synthetic Lease Obligations of
the Borrower and its Restricted Subsidiaries shall not exceed the Borrowing
Base, and within 10 Domestic Business Days after the end of such Fiscal Period,
the Borrower shall furnish to the Agent and the Banks a certificate, in
reasonable detail, showing the calculations with respect thereto.

                  SECTION 5.24.     New Indebtedness for Money Borrowed and New
Capitalized Leases. The Borrower shall not, and the Borrower shall not permit
its Restricted Subsidiaries to, incur any New Indebtedness for Money Borrowed or
New Capitalized Leases, provided, that, so long as no Default or Event of
Default is in existence or would be created thereby: (i) New Indebtedness for
Money Borrowed may be issued in any amount, subject to the provisions of Section
5.20 and, if applicable, Sections 2.09ba) and 2.11, so long as the indenture,
agreement, instrument or other agreement related thereto does not directly or
indirectly prohibit or restrain, or have the effect of prohibiting or
restraining, or imposing materially adverse conditions on, the ability of the
Borrower or its Restricted Subsidiaries to create any Lien on any of its assets
in favor of the Agent to secure the Loans and other obligations under this
Agreement and under any other agreement pertaining to Indebtedness which must be
equally and ratably secured by any Lien securing the Loans (the foregoing being
collectively referred to as a "Negative Pledge Clause"), or a clause which would
require that such New Indebtedness for Money Borrowed be equally and ratably
secured by any Lien on its assets in favor of the Agent to secure the Loans and
other obligations under this Agreement (except if and to the extent that such
New Indebtedness for Money Borrowed arises out of an agreement in existence on
the Closing Date which contains such a clause on the Closing Date); (ii) subject
to the provisions of Section 5.20 (but not Sections 2.09(b) or 2.11), New
Indebtedness for Money Borrowed may be incurred pursuant to a working capital
line up to $50,000,000 which does not contain a Negative Pledge Clause); and
(iii) New Capitalized Leases may be entered into up to an aggregate of
$25,000,000 which do not contain a Negative Pledge Clause (except as to the
assets being leased pursuant thereto).

                  SECTION 5.25.     Capital Expenditures. The Borrower shall
not, and the Borrower shall not permit its Restricted Subsidiaries to, incur
Capital Expenditures in any Fiscal Year, except that Capital Expenditures may
be incurred up to an aggregate amount not exceeding

                                      45
<PAGE>   52
(x) $40,000,000 in the 2000 Fiscal Year and (y) $37,500,000 in any Fiscal Year
thereafter, provided that after giving effect to the incurrence of any Capital
Expenditures permitted by this Section, no Default shall be in existence or be
created thereby.

         SECTION 5.26. Restricted Payments. The Borrower will not declare any
Restricted Payment during any Fiscal Year unless, as of the date of such
declaration, no Default or Event of Default is in existence or would be created
by the making of such payment, and: (i) with respect to Restricted Payments
consisting of repurchases of stock in the Borrower from any employee of the
Borrower or any Restricted Subsidiary whose such employment is being or has
been terminated (whether voluntarily or involuntarily), repurchases for an
aggregate amount for all such employees not exceeding $2,500,000 in any Fiscal
Year; and (ii) with respect to all other Restricted Payments, on a proforma
basis, based upon the Borrower's good faith estimates (taking into account
circumstances then known to it), after giving effect to such declaration and
the payment thereof, and taking into account any additional Indebtedness
anticipated in good faith by the Borrower to be incurred in connection
therewith during the relevant period and other Indebtedness anticipated in good
faith by the Borrower to be incurred during the relevant period, together with
interest expense during the relevant period on all such anticipated
Indebtedness, both as of (x) the end of the current Fiscal Period and (y) the
end of the current Fiscal Quarter, (1) no Default or Event of Default would be
in existence or created thereby, (2) the sum of the Unused Commitments, less
any Swing Loans and Money Market Loans then outstanding, would be at least
$15,000,000 and (3) the amount by which the Borrowing Base would exceed the sum
of all Indebtedness (including the Loans) plus (without duplication) all
Synthetic Lease Obligations would be at least $15,000,000. Prior to declaring
any Restricted Payments pursuant hereto, the Borrower shall furnish to the
Agent and the Banks a certificate, in reasonable detail, showing the
calculations with respect to the foregoing.

                                   ARTICLE VI
                                    DEFAULTS

         SECTION 6.01. Events of Default. If one or more of the following
events ("Events of Default") shall have occurred and be continuing:

          (a) the Borrower shall fail to pay when due any principal of any Loan
     or shall fail to pay any interest on any Loan within 5 Domestic Business
     Days after such interest shall become due, or shall fail to pay any fee or
     other amount payable hereunder within 5 Domestic Business Days after such
     fee or other amount becomes due; or

          (b) the Borrower shall fail to observe or perform any covenant
     contained in: (i) Sections 5.01(e), 5.02(ii), 5.03 through 5.05, inclusive,
     Sections 5.17 through 5.19, inclusive, Section 5.22, Sections 5.24 through
     5.26, inclusive; or (ii) Section 5.23, and, with respect to this clause
     (ii) such failure shall not have been cured within 10 days after the
     earlier to occur of (1) delivery to the Agent and the Banks of the
     certificate required to be furnished pursuant to Section 5.23 and (2) the
     date such certificate was required to be so delivered pursuant to Section
     5.23; or (iii) Sections 5.14, 5.15 or 5.20, and with

                                       46
<PAGE>   53

     respect to this clause (iii) such failure shall not have been cured within
     10 days after the earlier to occur of (1) written notice thereof has been
     given to the Borrower by the Agent at the request of any Bank or (2) any
     Responsible Officer of the Borrower otherwise becomes aware of any such
     failure; or

          (c) the Borrower shall fail to observe or perform any covenant or
     agreement contained or incorporated by reference in this Agreement (other
     than those covered by paragraph (a) or (b) above) and such failure shall
     not have been cured within 30 days after the earlier to occur of (i)
     written notice thereof has been given to the Borrower by the Agent at the
     request of any Bank or (ii) any Responsible Officer of the Borrower
     otherwise becomes aware of any such failure; or

          (d) any representation, warranty, certification or statement made by
     the Borrower in Article IV of this Agreement or in any certificate,
     financial statement or other document delivered pursuant to this Agreement
     shall prove to have been incorrect or misleading in any material respect
     when made (or deemed made); or

          (e) the Borrower or any Material Subsidiary shall fail to make any
     payment in respect of Indebtedness in an aggregate amount outstanding in
     excess of $10,000,000 (other than the Notes) when due or within any
     applicable grace period; or

          (f) any event or condition shall occur which results in the
     acceleration of the maturity of Indebtedness or, as a result of any event
     of default, there is a requirement for the mandatory purchase or sale of
     property subject to any "synthetic lease" (meaning a lease transaction
     under which the obligations of the Borrower are treated as debt for tax
     purposes but not under GAAP) and/or the payment of any final rent payment
     or guaranteed residual amount with respect thereto (any such obligation to
     purchase or sell property or pay a final rent payment or guaranteed
     residual amount under a synthetic lease as a result of an event of default
     thereunder being a "synthetic lease obligation") in an aggregate amount
     outstanding in excess of $10,000,000 of the Borrower or any Material
     Subsidiary (including, without limitation, any required mandatory
     prepayment or "put" of such Indebtedness or, as a result of an event of
     default, a synthetic lease obligation, to the Borrower or any Material
     Subsidiary) or enables (or, with the giving of notice or lapse of time or
     both, would enable) the holders of such Indebtedness or commitment therefor
     or lessor under any such synthetic lease or any Person acting on such
     holders' or lessor's behalf to accelerate the maturity thereof or terminate
     any such commitment or to require, as a result of an event of default, the
     purchase or sale of such property or the payment of any other synthetic
     lease obligation (including, without limitation, any required mandatory
     prepayment or "put" of such Indebtedness or synthetic lease obligation to
     the Borrower or any Material Subsidiary); or

          (g) the Borrower or any Material Subsidiary shall commence a voluntary
     case or other proceeding seeking liquidation, reorganization or other
     relief with respect to itself or its debts under any bankruptcy, insolvency
     or other similar law now or hereafter in effect or seeking the appointment
     of a trustee, receiver, liquidator, custodian or other similar official of
     it or any substantial part of its property, or shall consent to any such
     relief or to the appointment of or taking possession by any such official
     in an involuntary

                                       47
<PAGE>   54

     case or other proceeding commenced against it, or shall make a general
     assignment for the benefit of creditors, or shall fail generally, or shall
     admit in writing its inability, to pay its debts as they become due, or
     shall take any corporate action to authorize any of the foregoing; or

          (h) an involuntary case or other proceeding shall be commenced against
     the Borrower or any Material Subsidiary seeking liquidation, reorganization
     or other relief with respect to it or its debts under any bankruptcy,
     insolvency or other similar law now or hereafter in effect or seeking the
     appointment of a trustee, receiver, liquidator, custodian or other similar
     official of it or any substantial part of its property, and such
     involuntary case or other proceeding shall remain undismissed and unstayed
     for a period of 60 days; or an order for relief shall be entered against
     the Borrower or any Material Subsidiary under the federal bankruptcy laws
     as now or hereafter in effect; or

          (i) the Borrower or any member of the Controlled Group shall fail to
     pay when due any material amount which it shall have become liable to pay
     to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to
     terminate a Plan or Plans shall be filed under Title IV of ERISA by the
     Borrower, any member of the Controlled Group, any plan administrator or any
     combination of the foregoing; or the PBGC shall institute proceedings under
     Title IV of ERISA to terminate or to cause a trustee to be appointed to
     administer any such Plan or Plans or a proceeding shall be instituted by a
     fiduciary of any such Plan or Plans to enforce Section 515 or 4219(c)(5) of
     ERISA and such proceeding shall not have been dismissed within 30 days
     thereafter; or a condition shall exist by reason of which the PBGC would be
     entitled to obtain a decree adjudicating that any such Plan or Plans must
     be terminated, in each case if the amount of Unfunded Vested Liabilities is
     in excess of $10,000,000; or

          (j) one or more judgments or orders for the payment of money in an
     aggregate amount in excess of $20,000,000 shall be rendered against the
     Borrower or any Material Subsidiary and such judgment or order shall
     continue unbonded, undischarged, unsatisfied and unstayed for a period of
     30 days; or

          (k) a federal tax lien shall be filed against the Borrower or any
     Material Subsidiary under Section 6323 of the Code, if the amount involved
     is in excess of $20,000,000, or a lien of the PBGC shall be filed against
     the Borrower or any Material Subsidiary under Section 4068 of ERISA and in
     either case such lien shall remain undischarged for a period of 25 days
     after the date of filing, if the amount involved is in excess of
     $10,000,000; or

          (l) in any 12 month period or less, (i) 50% or more of the members of
     the full Board of Directors of the Borrower shall have resigned or been
     removed or replaced, or (ii) any Person or "Group" (as defined in Section
     2(d)(3) of the Securities Exchange Act of 1934, as amended) (other than an
     employee benefit or stock ownership plan of the Borrower) shall have
     acquired, during such period, directly or indirectly, more than 30% of the
     capital stock (whether common or preferred or a combination thereof) of the
     Borrower, provided that the Borrower's purchase of treasury shares of
     shares of its capital stock outstanding on the date of the Original
     Agreement which results in one or more of

                                       48
<PAGE>   55

     the Borrower's shareholders of record as of the date of the Original
     Agreement owning 30% or more of the Borrower's Capital Stock shall not
     constitute an acquisition for purposes of this Section 6.01 (l); or

          (m) the occurrence of any event, act, occurrence, or condition which
     either has or which reasonably could be expected to cause a Material
     Adverse Effect.

then, and in every such event, (i) the Agent shall, if requested by the
Required Banks, by notice to the Borrower terminate the Commitments and they
shall thereupon terminate, (ii) any Bank may terminate its obligation to fund a
Money Market Loan in connection with any relevant Money Market Quote, and (iii)
the Agent shall, if requested by the Required Banks, by notice to the Borrower
declare the Notes (together with accrued interest thereon), and all other
amounts payable hereunder and under the other Loan Documents, to be, and the
Notes, including the Swing Loan Note (together with accrued interest thereon),
and all other amounts payable hereunder and under the other Loan Documents
shall thereupon become, immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower together with interest at the Default Rate accruing on the
principal amount thereof from and after the date of such Event of Default;
provided that if any Event of Default specified in paragraph (g) or (h) above
occurs with respect to the Borrower, without any notice to the Borrower or any
other act by the Agent or the Banks, the Commitments shall thereupon terminate
and the Notes (together with accrued interest thereon) and all other amounts
payable hereunder and under the other Loan Documents shall automatically and
without notice become immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Borrower together with interest thereon at the Default Rate accruing on the
principal amount thereof from and after the date of such Event of Default.
Notwithstanding the foregoing, the Agent shall have available to it all other
remedies at law or equity, and shall exercise any one or all of them at the
request of the Required Banks.

         SECTION 6.02. Notice of Default. The Agent shall give notice to the
Borrower of any Default under Section 6.01(b) or (c) promptly upon being
requested to do so by any Bank and shall thereupon notify all the Banks thereof.

                                   ARTICLE VII

                                    THE AGENT

         SECTION 7.01. Appointment; Powers and Immunities. (a) Each Bank
hereby irrevocably appoints and authorizes the Agent to act as its agent
hereunder and under the other Loan Documents with such powers as are
specifically delegated to the Agent by the terms hereof and thereof, together
with such other powers as are reasonably incidental thereto. The Agent: (a)
shall have no duties or responsibilities except as expressly set forth in this
Agreement and the other Loan Documents, and shall not by reason of this
Agreement or any other Loan Document be a trustee for any Bank; (b) shall not be
responsible to the Banks for any recitals, statements, representations or
warranties contained in this Agreement or any other Loan Document, or in any
certificate or other document referred to or provided for in, or received by any
Bank under, this Agreement or any other Loan Document, or for the validity,
effectiveness,

                                       49
<PAGE>   56
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or any other document referred to or provided for herein or therein or
for any failure by the Borrower to perform any of its obligations hereunder or
thereunder; (c) shall not be required to initiate or conduct any litigation or
collection proceedings hereunder or under any other Loan Document except to the
extent requested by the Required Banks, and then only on terms and conditions
satisfactory to the Agent, and (d) shall not be responsible for any action taken
or omitted to be taken by it hereunder or under any other Loan Document or any
other document or instrument referred to or provided for herein or therein or in
connection herewith or therewith, except for its own gross negligence or wilful
misconduct. The Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. The provisions of this
Article VII are solely for the benefit of the Agent and the Banks, and the
Borrower shall not have any rights as a third party beneficiary of any of the
provisions hereof. In performing its functions and duties under this Agreement
and under the other Loan Documents, the Agent shall act solely as agent of the
Banks and does not assume and shall not be deemed to have assumed any obligation
towards or relationship of agency or trust with or for the Borrower. The duties
of the Agent shall be ministerial and administrative in nature, and the Agent
shall not have by reason of this Agreement or any other Loan Document a
fiduciary relationship in respect of any Bank.

         (b) Each Bank hereby designates The Bank of Nova Scotia as
Documentation Agent and Bank of America, N.A. as Syndications Agent. The
Documentation Agent and the Syndications Agent, in such capacity, shall have no
duties or obligations whatsoever under this Agreement or any other Loan Document
or any other document or any matter related hereto and thereto, but shall
nevertheless be entitled to all the indemnities and other protection afforded to
the Agent under this Article VII.

         SECTION 7.02. Reliance by Agent. The Agent shall be entitled to
rely upon any certification, notice or other communication (including any
thereof by telephone, telecopier, telegram or cable) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants or other experts selected by the Agent. As to any
matters not expressly provided for by this Agreement or any other Loan Document,
the Agent shall in all cases be fully protected in acting, or in refraining from
acting, hereunder and thereunder in accordance with instructions signed by the
Required Banks, and such instructions of the Required Banks in any action taken
or failure to act pursuant thereto shall be binding on all of the Banks.

         SECTION 7.03. Defaults. The Agent shall not be deemed to have
knowledge of the occurrence of a Default or an Event of Default (other than the
nonpayment of principal of or interest on the Loans) unless the Agent has
received notice from a Bank or the Borrower specifying such Default or Event of
Default and stating that such notice is a "Notice of Default". In the event that
the Agent receives such a notice of the occurrence of a Default or an Event of
Default, the Agent shall give prompt notice thereof to the Banks. The Agent
shall give each Bank prompt notice of each nonpayment of principal of or
interest on the Loans whether or not it has received any notice of the
occurrence of such nonpayment. The Agent shall (subject to Section 9.06) take
such action hereunder with respect to such Default or Event of Default as shall
be directed by the Required Banks, provided that, unless and until the Agent
shall have received

                                       50
<PAGE>   57

such directions, the Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Banks.

         SECTION 7.04. Rights of Agent and its Affiliates as a Bank. With
respect to the Loans made by the Agent and any Affiliate of the Agent, Wachovia
in its capacity as a Bank hereunder and any Affiliate of the Agent or such
Affiliate in its capacity as a Bank hereunder shall have the same rights and
powers hereunder as any other Bank and may exercise the same as though Wachovia
were not acting as the Agent, and the term "Bank" or "Banks" shall, unless the
context otherwise indicates, include Wachovia in its individual capacity and any
Affiliate of the Agent in its individual capacity. The Agent and any Affiliate
of the Agent may (without having to account therefor to any Bank) accept
deposits from, lend money to and generally engage in any kind of banking, trust
or other business with the Borrower (and any of the Borrower's Affiliates) as if
Wachovia were not acting as the Agent, and the Agent and any Affiliate of the
Agent may accept fees and other consideration from the Borrower (in addition to
any agency fees and arrangement fees heretofore agreed to between the Borrower
and the Agent) for services in connection with this Agreement or any other Loan
Document or otherwise without having to account for the same to the Banks.

         SECTION 7.05. Indemnification. Each Bank severally agrees to indemnify
the Agent, to the extent the Agent shall not have been reimbursed by the
Borrower, ratably in accordance with its Commitment, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
out-of-pocket costs, expenses (including, without limitation, reasonable counsel
fees and disbursements actually incurred) or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the
Agent in any way relating to or arising out of this Agreement or any other Loan
Document or any other documents contemplated by or referred to herein or therein
or the transactions contemplated hereby or thereby (excluding, unless an Event
of Default has occurred and is continuing, the normal administrative costs and
expenses incident to the performance of its agency duties hereunder) or the
enforcement of any of the terms hereof or thereof or any such other documents;
provided that no Bank shall be liable for any of the foregoing to the extent
they arise from the gross negligence or wilful misconduct of the Agent. If any
indemnity furnished to the Agent for any purpose shall, in the opinion of the
Agent, be insufficient or become impaired, the Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until
such additional indemnity is furnished.

         SECTION 7.06. Consequential Damages. THE AGENT SHALL NOT BE
RESPONSIBLE OR LIABLE TO ANY BANK, THE BORROWER OR ANY OTHER PERSON OR ENTITY
FOR ANY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A
RESULT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.

         SECTION 7.07. Payee of Note Treated as Owner. The Agent may deem
and treat the payee of any Note as the owner thereof for all purposes hereof
unless and until a written notice of the assignment or transfer thereof shall
have been filed with the Agent and the provisions of Section 9.07(c) have been
satisfied. Any requests, authority or consent of any

                                       51
<PAGE>   58

Person who at the time of making such request or giving such authority or
consent is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee or assignee of that Note or of any Note or Notes
issued in exchange therefor or replacement thereof.

         SECTION 7.08. Nonreliance on Agent and Other Banks. Each Bank agrees
that it has, independently and without reliance on the Agent or any other Bank,
and based on such documents and information as it has deemed appropriate, made
its own credit analysis of the Borrower and decision to enter into this
Agreement and that it will, independently and without reliance upon the Agent or
any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under this Agreement or any of the other Loan
Documents. The Agent shall not be required to keep itself (or any Bank) informed
as to the performance or observance by the Borrower of this Agreement or any of
the other Loan Documents or any other document referred to or provided for
herein or therein or to inspect the properties or books of the Borrower or any
other Person. Except for notices, reports and other documents and information
expressly required to be furnished to the Banks by the Agent hereunder or under
the other Loan Documents, the Agent shall not have any duty or responsibility to
provide any Bank with any credit or other information concerning the affairs,
financial condition or business of the Borrower or any other Person (or any of
their Affiliates) which may come into the possession of the Agent.

         SECTION 7.09. Failure to Act. Except for action expressly required of
the Agent hereunder or under the other Loan Documents, the Agent shall in all
cases be fully justified in failing or refusing to act hereunder and thereunder
unless it shall receive further assurances to its satisfaction by the Banks of
their indemnification obligations under Section 7.05 against any and all
liability and expense which may be incurred by the Agent by reason of taking,
continuing to take, or failing to take any such action.

         SECTION 7.10. Resignation or Removal of Agent. Subject to the
appointment and acceptance of a successor Agent as provided below, the Agent may
resign at any time by giving notice thereof to the Banks and the Borrower and
the Agent may be removed at any time with or without cause by the Required
Banks. Upon any such resignation or removal, the Required Banks shall have the
right to appoint a successor Agent, subject to the approval of the Borrower,
which shall not be unreasonably withheld or delayed; provided, that no approval
of the Borrower shall be required if a Default is in existence. If no successor
Agent shall have been so appointed by the Required Banks and shall have accepted
such appointment within 30 days after the retiring Agent's notice of resignation
or the Required Banks' removal of the retiring Agent, then the retiring Agent
may, on behalf of the Banks, appoint a successor Agent, subject to the approval
of the Borrower, which shall not be unreasonably withheld or delayed; provided,
that no approval of the Borrower shall be required if a Default is in existence.
Any successor Agent shall be a bank which has a combined capital and surplus of
at least $500,000,000. Upon the acceptance of any appointment as Agent hereunder
by a successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its duties and obligations
hereunder. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VII shall continue in effect for its benefit in

                                       52
<PAGE>   59

respect of any actions taken or omitted to be taken by it while it was acting as
the Agent hereunder.

                                  ARTICLE VIII

                      CHANGE IN CIRCUMSTANCES; COMPENSATION

         SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair.
If on or prior to the first day of any Interest Period:

          (a) the Agent determines that deposits in Dollars (in the applicable
     amounts) are not being offered in the relevant market for such Interest
     Period, or

          (b) the Required Banks advise the Agent that the London Interbank
     Offered Rate, as determined by the Agent will not adequately and fairly
     reflect the cost to such Banks of funding Euro-Dollar Loans for such
     Interest Period,

the Agent shall forthwith give notice thereof to the Borrower and the Banks,
whereupon until the Agent notifies the Borrower that the circumstances giving
rise to such suspension no longer exist, the obligations of the Banks to make
the type of Fixed Rate Loans specified in such notice shall be suspended.
Unless the Borrower notifies the Agent at least 2 Domestic Business Days before
the date of any Borrowing of such type of Fixed Rate Loans for which a Notice
of Borrowing has previously been given that it elects not to borrow on such
date, such Borrowing shall instead be made as a Base Rate Borrowing.

         SECTION 8.02. Illegality. If, after the date hereof, the adoption of
any applicable law, rule or regulation, or any change therein or any existing or
future law, rule or regulation, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof (any such
agency being referred to as an "Authority" and any such event being referred to
as a "Change of Law"), or compliance by any Bank (or its Lending Office) with
any request or directive (whether or not having the force of law) of any
Authority shall make it unlawful or impossible for any Bank (or its Lending
Office) to make, maintain or fund its Euro-Dollar Loans and such Bank shall so
notify the Agent, the Agent shall forthwith give notice thereof to the other
Banks and the Borrower, whereupon until such Bank notifies the Borrower and the
Agent that the circumstances giving rise to such suspension no longer exist, the
obligation of such Bank to make Euro-Dollar Loans shall be suspended. Before
giving any notice to the Agent pursuant to this Section, such Bank shall
designate a different Lending Office if such designation will avoid the need for
giving such notice and will not, in the judgment of such Bank, be otherwise
disadvantageous to such Bank. If such Bank shall determine that it may not
lawfully continue to maintain and fund any of its outstanding Euro-Dollar Loans
to maturity and shall so specify in such notice, the Borrower shall, on the
later of (i) the date such notice is received by the Borrower and (ii) the date
such Change of Law becomes effective, prepay in full the then outstanding
principal amount of each Euro-Dollar Loan of such Bank, together with accrued
interest thereon and any amount due such Bank pursuant to Section 8.05(a).
Concurrently with prepaying each such Euro-Dollar Loan, the Borrower shall
borrow a Base Rate Loan in an equal principal amount from such Bank (on which
interest and principal shall be payable

                                       53
<PAGE>   60
contemporaneously with the related Euro-Dollar Loans of the other Banks), and
such Bank shall make such a Base Rate Loan.

         SECTION 8.03. Increased Cost and Reduced Return. (a) If after the date
hereof, a Change of Law or compliance by any Bank (or its Lending Office) with
any request or directive (whether or not having the force of law) of any
Authority:

          (i) shall impose, modify or deem applicable any reserve, special
     deposit or similar requirement (including, without limitation, any such
     requirement imposed by the Board of Governors of the Federal Reserve
     System, but excluding any such requirement included in an applicable
     Euro-Dollar Reserve Percentage) against assets of, deposits with or for the
     account of, or credit extended by, any Bank (or its Lending Office); or

          (ii) shall impose on any Bank (or its Lending Office) or on the London
     interbank market any other condition affecting its Fixed Rate Loans or
     Money Market Loans, its Notes or its obligation to make Fixed Rate Loans;

and the result of any of the foregoing is to increase the cost to such Bank (or
its Lending Office) of making or maintaining any Loan, or to reduce the amount
of any sum received or receivable by such Bank (or its Lending Office) under
this Agreement or under its Notes with respect thereto, by an amount deemed by
such Bank to be material, then, within 15 days after demand by such Bank (with
a copy to the Agent), the Borrower shall pay to such Bank such additional
amount or amounts as will compensate such Bank for such increased cost or
reduction; provided, however, that the Borrower shall not be responsible to
such Bank for any increased cost or reduced return under this Section 8.03(a)
which accrued at any time before that date which is 90 calendar days prior to
the date upon which the Borrower is notified of same.

         (b) If any Bank shall have determined that after the date hereof the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, or any change in the interpretation or administration
thereof, or compliance by any Bank (or its Lending Office) with any request or
directive regarding capital adequacy (whether or not having the force of law) of
any Authority, has or would have the effect of reducing the rate of return on
such Bank's capital as a consequence of its obligations hereunder to a level
below that which such Bank could have achieved but for such adoption, change or
compliance (taking into consideration such Bank's policies with respect to
capital adequacy) by an amount deemed by such Bank to be material, then from
time to time, within 15 days after demand by such Bank, the Borrower shall pay
to such Bank such additional amount or amounts as will compensate such Bank for
such reduction; provided, however, that the Borrower shall not be responsible to
such Bank for any increased cost or reduced return under this Section 8.03(b)
which accrued at any time before that date which is 90 calendar days prior to
the date upon which the Borrower is notified of same.

         (c) Each Bank will promptly notify the Borrower and the Agent of any
event of which it has knowledge, occurring after the date hereof, which will
entitle such Bank to compensation pursuant to this Section and will designate a
different Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the judgment of such Bank, be
otherwise disadvantageous to such Bank. A certificate of any

                                       54
<PAGE>   61

Bank claiming compensation under this Section and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error, provided such certificate shall set forth the basis of such
claim and shall be accompanied by a statement of an officer of such Bank
certifying that such claim for compensation is being made pursuant to a policy
adopted by such Bank to seek such compensation generally from customers with
similar types of loans. In determining such amount, such Bank may use any
reasonable averaging and attribution methods.

         (d) The provisions of this Section 8.03 shall be applicable with
respect to any Participant, Assignee or other Transferee, and any calculations
required by such provisions shall be made based upon the circumstances of such
Participant, Assignee or other Transferee.

         SECTION 8.04. Base Rate Loans Substituted for Euro-Dollar Loans. If (i)
the obligation of any Bank to make or maintain any Euro-Dollar Loans has been
suspended pursuant to Section 8.02 or (ii) any Bank has demanded compensation
under Section 8.03, and the Borrower shall, by at least 5 Euro-Dollar Business
Days' prior notice to such Bank through the Agent, have elected that the
provisions of this Section shall apply to such Bank, then, unless and until such
Bank notifies the Borrower that the circumstances giving rise to such suspension
or demand for compensation no longer apply:

          (a) all Loans which would otherwise be made by such Bank as
     Euro-Dollar Loans shall be made instead as Base Rate Loans, and interest
     and principal on such Loans shall be payable contemporaneously with the
     related Euro-Dollar Loans of the other Banks), and

          (b) after each of its Euro-Dollar Loans has been repaid, all payments
     of principal which would otherwise be applied to repay such Euro-Dollar
     Loans shall be applied to repay its Base Rate Loans instead.

         SECTION 8.05. Compensation. Upon the request of any Bank, delivered to
the Borrower and the Agent, the Borrower shall pay to such Bank such amount or
amounts as shall compensate such Bank for any loss, cost or expense (but not
loss of margin or profit) incurred by such Bank as a result of:

         (a) any payment or prepayment (pursuant to Section 2.10, 2.11, 6.01,
8.02 or otherwise) of a Fixed Rate Loan on a date other than the last day of an
Interest Period for such Loan; or

         (b) any failure by the Borrower to borrow a Fixed Rate Loan on the date
for the Fixed Rate Borrowing of which such Fixed Rate Loan is a part specified
in the applicable Notice of Borrowing delivered pursuant to Section 2.02 or
notification of acceptance of Money Market Quotes pursuant to Section 2.03(e);

such compensation to include, without limitation, an amount equal to the
excess, if any, of (x) the amount of interest which would have accrued on the
amount so paid or prepaid or not prepaid or borrowed for the period from the
date of such payment, prepayment or failure to prepay or borrow to the last day
of the then current Interest Period for such Fixed Rate Loan (or, in the case
of a failure to prepay or borrow, the Interest Period for such Fixed Rate Loan
which would have

                                       55
<PAGE>   62

commenced on the date of such failure to prepay or borrow) at the applicable
rate of interest for such Fixed Rate Loan provided for herein over (y) the
amount of interest (as reasonably determined by such Bank) such Bank would have
paid on deposits in Dollars of comparable amounts having terms comparable to
such period placed with it by leading banks in the London interbank market (if
such Fixed Rate Loan is a Euro-Dollar Loan); provided, that (i) the Borrower
shall be responsible to such Bank only for its actual costs incurred in
connection with same (i.e. not for any lost profits which were expected over the
course of such Interest Period), (ii) such Bank shall take reasonable efforts to
mitigate its damages in connection with same, and (iii) if such Fixed Rate Loan
is a Euro-Dollar Loan, the Borrower shall not be responsible to such Bank for
such losses in excess of those amounts as such Bank would have incurred had it
funded or maintained the Euro-Dollar Loan in the London interbank market
(regardless of whether it actually did so).

         SECTION 8.06. Replacement of Bank. In the event that any Bank (a
"Subject Bank") gives any notice under Section 8.02 resulting in the suspension
of its obligation to make or maintain Euro-Dollar Loans, or requests
compensation pursuant to Section 8.05, or requests compensation with respect to
withholding Taxes pursuant to Section 2.12, or becomes insolvent or fails to
make any Syndicated Loan in response to a request for borrowing by the Borrower
where the Required Banks have made the Syndicated Loans to be made by them in
response to such request, then, so long as such condition exists, the Borrower
may designate another bank or financial institution (a "Replacement Bank")
acceptable to the Agent (which acceptance will not be unreasonably withheld) and
which is not an Affiliate of the Borrower, to assume the Subject Bank's
Commitment hereunder and to purchase the Loans of the Subject Bank and the
Subject Bank's rights under this Agreement and the Notes held by the Subject
Bank, all without recourse to or representation or warranty by, or expense to
the Subject Bank for a purchase price equal to the outstanding principal amount
of the Loans payable to the Subject Bank plus any accrued but unpaid interest on
such Loans and accrued but unpaid fees owing to the Subject Bank plus any
amounts payable to the Subject Bank under Sections 2.12 and 8.05, and upon such
assumption, purchase and substitution, and subject to the execution and delivery
to the Agent by the Subject Bank and the Replacement Bank of an Assignment and
Acceptance, the Replacement Bank shall succeed to the rights and obligations of
the Subject Bank hereunder. In the event that the Borrower exercises its rights
under the preceding sentence, the Subject Bank agrees to sell its Loans and
rights under this Agreement and its Notes pursuant to the foregoing, and upon
such sale, it shall no longer be a party hereto or have any rights or
obligations hereunder; provided that the obligations of the Borrower to the
Subject Bank under Article VIII and Section 9.03 with respect to events
occurring or obligations arising before or as a result of such replacement shall
survive such exercise.

                                   ARTICLE IX

                                  MISCELLANEOUS

         SECTION 9.01. Notices. All notices, requests and other communications
to any party hereunder shall be in writing (including telecopier or similar
writing) and shall be given to such party at its address or telecopier number
set forth on the signature pages hereof or such other address or telecopier
number as such party may hereafter specify for the purpose by notice to each
other party. Each such notice, request or other communication shall be effective

                                       56
<PAGE>   63

(i) if given by telecopier, when such telecopy is transmitted to the telecopier
number specified in this Section and the confirmation is received, (ii) if given
by mail, 3 Business Days after such communication is deposited in the mails with
first class postage prepaid, addressed as aforesaid or (iii) if given by any
other means, when delivered at the address specified in this Section; provided
that notices to the Agent under Article II or Article VIII shall not be
effective until received.

         SECTION 9.02. No Waivers. No failure or delay by the Agent or any Bank
in exercising any right, power or privilege hereunder or under any Note or other
Loan Document shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law.

         SECTION 9.03. Expenses; Documentary Taxes. The Borrower shall pay (i)
all reasonable out-of-pocket expenses of the Agent, including reasonable fees
and disbursements of special counsel for the Agent, in connection with the
preparation of this Agreement and the other Loan Documents, any waiver or
consent hereunder or thereunder or any amendment hereof or thereof or any
Default or alleged Default hereunder or thereunder and (ii) if a Default occurs,
all reasonable out-of-pocket expenses incurred by the Agent and the Banks,
including reasonable fees and disbursements of counsel, in connection with such
Default and collection and other enforcement proceedings resulting therefrom,
including reasonable out-of-pocket expenses incurred in enforcing this Agreement
and the other Loan Documents. The Borrower shall indemnify the Agent and each
Bank against any transfer taxes, documentary taxes, assessments or charges made
by any Authority by reason of the execution and delivery of this Agreement or
the other Loan Documents.

         SECTION 9.04. Indemnification. The Borrower shall indemnify the Agent,
the Banks and each Affiliate thereof and their respective directors, officers,
employees and agents from, and hold each of them harmless against, any and all
losses, liabilities, claims or damages to which any of them may become subject,
insofar as such losses, liabilities, claims or damages arise out of or result
from any actual or proposed use by the Borrower of the proceeds of any extension
of credit by any Bank hereunder or breach by the Borrower of this Agreement or
any other Loan Document or from any investigation, litigation (including,
without limitation, any actions taken by the Agent or any of the Banks to
enforce this Agreement or any of the other Loan Documents) or other proceeding
(including, without limitation, any threatened investigation or proceeding)
relating to the foregoing, and the Borrower shall reimburse the Agent and each
Bank, and each Affiliate thereof and their respective directors, officers,
employees and agents, upon demand for any reasonable expenses (including,
without limitation, legal fees) incurred in connection with any such
investigation or proceeding; but excluding any such losses, liabilities, claims,
damages or expenses incurred by reason of the gross negligence or wilful
misconduct of the Person to be indemnified.

         SECTION 9.05. Setoff; Sharing of Setoffs. (a) The Borrower hereby
grants to the Agent and each Bank and to Wachovia as to the Swing Loan Note,
and, to the fullest extent permitted by law, each Affiliate of each Bank, the
right to setoff, against the obligations of the Borrower under this Agreement,
upon all deposits or deposit accounts, of any kind, or any

                                       57
<PAGE>   64

interest in any deposits or deposit accounts thereof, now or hereafter pledged,
mortgaged, transferred or assigned to the Agent or any such Bank or Affiliate of
such Bank or otherwise in the possession or control of the Agent or any such
Bank or Affiliate of such Bank for any purpose for the account or benefit of the
Borrower and including any balance of any deposit account or of any credit of
the Borrower with the Agent or any such Bank or Affiliate of such Bank, whether
now existing or hereafter established, after the occurrence and during the
continuance of an Event of Default, hereby authorizing the Agent and each Bank
and each Affiliate of each Bank at any time or times with or without prior
notice to apply such balances or any part thereof to such of the indebtedness
and obligations owing by the Borrower hereunder to the Banks or their Affiliates
and/or the Agent then past due and in such amounts as they may elect, and
whether or not the collateral, if any, or the responsibility of other Persons
primarily, secondarily or otherwise liable may be deemed adequate. For the
purposes of this paragraph, all remittances and property shall be deemed to be
in the possession of the Agent or any such Bank or its Affiliate as soon as the
same may be put in transit to it by mail or carrier or by other bailee.

         (b) Each Bank agrees that if it or any of its Affiliates shall, by
exercising any right of setoff or counterclaim or resort to collateral security
or otherwise, receive payment of a proportion of the aggregate amount of
principal and interest owing with respect to the Note held by it which is
greater than the proportion received by any other Bank or its Affiliate in
respect of the aggregate amount of all principal and interest owing with respect
to the Note held by such other Bank, the Bank receiving (directly or through its
Affiliate) such proportionately greater payment shall purchase such
participations in the Notes held by the other Banks owing to such other Banks,
and such other adjustments shall be made, as may be required so that all such
payments of principal and interest with respect to the Notes held by the Banks
owing to such other Banks shall be shared by the Banks pro rata; provided that
(i) nothing in this Section shall impair the right of any Bank or its Affiliates
to exercise any right of setoff or counterclaim it may have and to apply the
amount subject to such exercise to the payment of indebtedness of the Borrower
other than its indebtedness under the Notes, and (ii) if all or any portion of
such payment received by the purchasing Bank is thereafter recovered from such
purchasing Bank, such purchase from each other Bank or its Affiliate shall be
rescinded and such other Bank or Affiliate shall repay to the purchasing Bank
the purchase price of such participation to the extent of such recovery together
with an amount equal to such other Bank's ratable share (according to the
proportion of (x) the amount of such other Bank's required repayment to (y) the
total amount so recovered from the purchasing Bank) of any interest or other
amount paid or payable by the purchasing Bank in respect of the total amount so
recovered. The Borrower agrees, to the fullest extent it may effectively do so
under applicable law, that any holder of a participation in a Note, whether or
not acquired pursuant to the foregoing arrangements, may exercise rights of
setoff or counterclaim and other rights with respect to such participation as
fully as if such holder of a participation were a direct creditor of the
Borrower in the amount of such participation.

         SECTION 9.06. Amendments and Waivers. (a) Any provision of this
Agreement, the Notes or any other Loan Documents may be amended or waived if,
but only if, such amendment or waiver is in writing and is signed by the
Borrower and the Required Banks (and, if the rights or duties of the Agent are
affected thereby, by the Agent); provided that, no such amendment or waiver
shall, unless signed by all Banks, (i) increase the Commitment of any Bank or
subject any Bank to any additional obligation, (ii) reduce the principal of or
rate of interest on any Loan or any fees (other than fees payable to the Agent)
hereunder, (iii) postpone

                                       58
<PAGE>   65

the date fixed for any payment of principal of or interest on any Loan or any
fees hereunder, (iv) reduce the amount of principal, interest or fees due on any
date fixed for the payment thereof, (v) change the percentage of the Commitments
or of the aggregate unpaid principal amount of the Notes, or the percentage of
Banks, which shall be required for the Banks or any of them to take any action
under this Section or any other provision of this Agreement, (vi) change the
manner of application of any payments made under this Agreement or the Notes,
(vii) release or substitute all or any substantial part of the collateral (if
any) held as security for the Loans, or (viii) release any Guaranty given to
support payment of the Loans.

The Borrower will not solicit, request or negotiate for or with respect to any
proposed waiver or amendment of any of the provisions of this Agreement from or
with any Bank, except on terms fully disclosed to the Agent (which terms the
Agent shall be authorized to disclose to the Banks). Executed or true and
correct copies of any waiver or consent effected pursuant to the provisions of
this Agreement shall be delivered by the Borrower to the Agent (for delivery to
each Bank) forthwith following the date on which the same shall have been
executed and delivered by the requisite percentage of Banks. The Borrower will
not, directly or indirectly, pay or cause to be paid any remuneration, whether
by way of supplemental or additional interest, fee or otherwise, to any Bank
(in its capacity as such) as consideration for or as an inducement to the
entering into by such Bank of any waiver or amendment of any of the terms and
provisions of this Agreement unless such remuneration is concurrently paid, on
the same terms, ratably to all such Banks.

         SECTION 9.07. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns; provided that the Borrower may not
assign or otherwise transfer any of its rights under this Agreement.

         (b) Any Bank may at any time sell to one or more Persons (each a
"Participant") participating interests in any Loan owing to such Bank, any Note
held by such Bank, any Commitment hereunder or any other interest of such Bank
hereunder. In the event of any such sale by a Bank of a participating interest
to a Participant, such Bank's obligations under this Agreement shall remain
unchanged, such Bank shall remain solely responsible for the performance
thereof, such Bank shall remain the holder of any such Note for all purposes
under this Agreement, and the Borrower and the Agent shall continue to deal
solely and directly with such Bank in connection with such Bank's rights and
obligations under this Agreement. In no event shall a Bank that sells a
participation be obligated to the Participant to take or refrain from taking any
action hereunder except that such Bank may agree that it will not (except as
provided below), without the consent of the Participant, agree to (i) the change
of any date fixed for the payment of principal of or interest on the related
Loan or Loans, (ii) the change of the amount of any principal, interest or fees
due on any date fixed for the payment thereof with respect to the related Loan
or Loans, (iii) the change of the principal of the related Loan or Loans, (iv)
any change in the rate at which either interest is payable thereon or (if the
Participant is entitled to any part thereof) fee is payable hereunder from the
rate at which the Participant is entitled to receive interest or fee (as the
case may be) in respect of such participation, or (v) the release of any
Guaranty given to support payment of the Loans. Each Bank selling to any Person
other than an Affiliate of such Bank a participating interest in any Loan, Note,
Commitment or other interest under this Agreement, other than a Money Market
Loan or Money Market Note or participating interest therein, shall, within 10
Domestic Business Days of such sale, provide the

                                       59
<PAGE>   66

Borrower and the Agent with written notification stating that such sale has
occurred and identifying the Participant and the interest purchased by such
Participant. The Borrower agrees that each Participant shall be entitled to the
benefits of Article VIII with respect to its participation in Loans outstanding
from time to time, subject to the provisions of Section 9.07(e).

         (c) Any Bank may at any time assign to one or more banks or financial
institutions (each an "Assignee") all or a proportionate part of its rights and
obligations under this Agreement, the Notes and the other Loan Documents, and
such Assignee shall assume all such rights and obligations, pursuant to an
Assignment and Acceptance, executed by such Assignee, such transferor Bank and
the Agent (and, in the case of an Assignee that is not then a Bank, subject to
clause (iii) below, by the Borrower); provided that (i) no interest may be sold
by a Bank pursuant to this paragraph (c) unless the Assignee shall agree to
assume ratably equivalent portions of the transferor Bank's Commitment, (ii) if
a Bank is assigning only a portion of its Commitment, then, the amount of the
Commitment being assigned (determined as of the effective date of the
assignment) shall be in an amount not less than $15,000,000, (iii) except during
the continuance of a Default, no interest may be sold by a Bank pursuant to this
paragraph (c) to any Assignee that is not then a Bank (or an Affiliate of a
Bank) without the consent of the Borrower and the Agent, which consent shall not
be unreasonably withheld (provided that it shall not constitute the unreasonable
withholding of consent if the Borrower shall decline to consent because (1) the
Borrower makes a reasonable determination that it is materially more likely that
the proposed Assignee will be entitled to compensation under Section 2.12 or
8.05, or to a greater amount of compensation thereunder than the transferor
Bank, or (2) the proposed Assignee has a combined capital and surplus of less
than $500,000,000), and (iv) a Bank may not have more than 2 Assignees that are
not then Banks at any one time. Upon (A) execution of the Assignment and
Acceptance by such transferor Bank, such Assignee, the Agent and (if applicable)
the Borrower, (B) delivery of an executed copy of the Assignment and Acceptance
to the Borrower and the Agent, (C) payment by such Assignee to such transferor
Bank of an amount equal to the purchase price agreed between such transferor
Bank and such Assignee, and (D) payment of a processing and recordation fee of
$2,500 to the Agent, such Assignee shall for all purposes be a Bank party to
this Agreement and shall have all the rights and obligations of a Bank under
this Agreement to the same extent as if it were an original party hereto with a
Commitment as set forth in such instrument of assumption, and the transferor
Bank shall be released from its obligations hereunder to a corresponding extent,
and no further consent or action by the Borrower, the Banks or the Agent shall
be required. Upon the consummation of any transfer to an Assignee pursuant to
this paragraph (c), the transferor Bank, the Agent and the Borrower shall make
appropriate arrangements so that, if required, a new Note is issued to each of
such Assignee and such transferor Bank.

         (d) Subject to the provisions of Section 9.08, the Borrower authorizes
each Bank to disclose to any Participant, Assignee or other transferee (each a
"Transferee") and any prospective Transferee any and all financial information
in such Bank's possession concerning the Borrower which has been delivered to
such Bank by the Borrower pursuant to this Agreement or which has been delivered
to such Bank by the Borrower in connection with such Bank's credit evaluation
prior to entering into this Agreement.

         (e) No Transferee shall be entitled to receive any greater payment
under Section 2.12 or 8.03 than the transferor Bank would have been entitled to
receive with respect to the

                                       60
<PAGE>   67

rights transferred, unless such transfer is made with the Borrower's prior
written consent or by reason of the provisions of Section 8.02 or 8.03 requiring
such Bank to designate a different Lending Office under certain circumstances or
at a time when the circumstances giving rise to such greater payment did not
exist.

         (f) Anything in this Section 9.07 to the contrary notwithstanding, any
Bank may assign and pledge all or any portion of the Loans and/or obligations
owing to it to any Federal Reserve Bank or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal Reserve
Bank, provided that any payment in respect of such assigned Loans and/or
obligations made by the Borrower to the assigning and/or pledging Bank in
accordance with the terms of this Agreement shall satisfy the Borrower's
obligations hereunder in respect of such assigned Loans and/or obligations to
the extent of such payment. No such assignment shall release the assigning
and/or pledging Bank from its obligations hereunder.

         SECTION 9.08. Confidentiality. Each Bank agrees to exercise
commercially reasonable efforts to keep any information delivered or made
available by the Borrower to it which is clearly indicated (orally or in
writing) to be confidential information, confidential from anyone other than
persons employed or retained by such Bank who are or are expected to become
engaged in evaluating, approving, structuring or administering the Loans;
provided that nothing herein shall prevent any Bank from disclosing such
information (i) to any other Bank, (ii) upon the order of any court or
administrative agency, (iii) upon the request or demand of any regulatory agency
or authority having jurisdiction over such Bank, (iv) which has been publicly
disclosed (unless a person responsible for administering this Agreement on
behalf of such Bank has actual knowledge that such disclosure is made by a
Person in violation of a confidentiality agreement with or confidentiality
obligation to the Borrower or any Subsidiary), (v) to the extent reasonably
required in connection with any litigation to which the Agent, any Bank or their
respective Affiliates may be a party, (vi) to the extent reasonably required in
connection with the exercise of any remedy hereunder, (vii) to such Bank's legal
counsel and independent auditors and (viii) to any actual or proposed
Participant, Assignee or other Transferee of all or part of its rights hereunder
which has agreed in writing to be bound by the provisions of this Section 9.08;
provided that should disclosure of any such confidential information be required
by virtue of clause (ii) of the immediately preceding sentence, any relevant
Bank shall promptly notify the Borrower of same so as to allow the Borrower to
seek a protective order or to take any other appropriate action, unless such
Bank is prohibited by law or any such order from giving such notice; provided,
further, that, no Bank shall be required to delay compliance with any directive
to disclose any such information so as to allow the Borrower to effect any such
action.

         SECTION 9.09. Representation by Banks. Each Bank hereby represents that
it is a commercial lender or financial institution which makes loans in the
ordinary course of its business and that it will make its Loans hereunder for
its own account in the ordinary course of such business; provided that, subject
to Section 9.07, the disposition of the Note or Notes held by that Bank shall at
all times be within its exclusive control.

         SECTION 9.10. Obligations Several. The obligations of each Bank
hereunder are several, and no Bank shall be responsible for the obligations or
commitment of any

                                       61
<PAGE>   68

other Bank hereunder. Nothing contained in this Agreement and no action
taken by the Banks pursuant hereto shall be deemed to constitute the Banks to
be a partnership, an association, a joint venture or any other kind of entity.
The amounts payable at any time hereunder to each Bank shall be a separate and
independent debt, and each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement or any other Loan Document and it shall
not be necessary for any other Bank to be joined as an additional party in any
proceeding for such purpose.

         SECTION 9.11. Georgia Law. This Agreement and each Note shall be
construed in accordance with and governed by the law of the State of Georgia.

         SECTION 9.12. Severability. In case any one or more of the provisions
contained in this Agreement, the Notes or any of the other Loan Documents should
be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby and shall be enforced to the
greatest extent permitted by law.

         SECTION 9.13. Interest. In no event shall the amount of interest, and
all charges, amounts or fees contracted for, charged or collected pursuant to
this Agreement, the Notes or the other Loan Documents and deemed to be interest
under applicable law (collectively, "Interest") exceed the highest rate of
interest allowed by applicable law (the "Maximum Rate"), and in the event any
such payment is inadvertently received by any Bank, then the excess sum (the
"Excess") shall be credited as a payment of principal, unless the Borrower shall
notify such Bank in writing that it elects to have the Excess returned
forthwith. It is the express intent hereof that the Borrower not pay and the
Banks not receive, directly or indirectly in any manner whatsoever, interest in
excess of that which may legally be paid by the Borrower under applicable law.
The right to accelerate maturity of any of the Loans does not include the right
to accelerate any interest that has not otherwise accrued on the date of such
acceleration, and the Agent and the Banks do not intend to collect any unearned
interest in the event of any such acceleration. All monies paid to the Agent or
the Banks hereunder or under any of the Notes or the other Loan Documents,
whether at maturity or by prepayment, shall be subject to rebate of unearned
interest as and to the extent required by applicable law. By the execution of
this Agreement, the Borrower covenants, to the fullest extent permitted by law,
that (i) the credit or return of any Excess shall constitute the acceptance by
the Borrower of such Excess, and (ii) the Borrower shall not seek or pursue any
other remedy, legal or equitable , against the Agent or any Bank, based in whole
or in part upon contracting for charging or receiving any Interest in excess of
the Maximum Rate, other than the crediting of the Excess as set forth herein.
For the purpose of determining whether or not any Excess has been contracted
for, charged or received by the Agent or any Bank, all interest at any time
contracted for, charged or received from the Borrower in connection with this
Agreement, the Notes or any of the other Loan Documents shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread in
equal parts throughout the full term of the Commitments. The Borrower, the Agent
and each Bank shall, to the maximum extent permitted under applicable law, (i)
characterize any non-principal payment as an expense, fee or premium rather than
as Interest and (ii) exclude voluntary prepayments and the effects thereof. The
provisions of this Section shall be deemed to be incorporated into each Note and
each of the other Loan Documents (whether or not any provision of this Section
is referred to therein). All such Loan Documents and communications relating to
any Interest

                                       62
<PAGE>   69

owed by the Borrower and all figures set forth therein shall, for the sole
purpose of computing the extent of obligations hereunder and under the Notes and
the other Loan Documents be automatically recomputed by the Borrower, and by any
court considering the same, to give effect to the adjustments or credits
required by this Section.

         SECTION 9.14. Interpretation. No provision of this Agreement or any of
the other Loan Documents shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured or
dictated such provision.

         SECTION 9.15. Waiver of Jury Trial; Consent to Jurisdiction. The
Borrower (a) and each of the Banks and the Agent irrevocably waives, to the
fullest extent permitted by law, any and all right to trial by jury in any legal
proceeding arising out of this Agreement, any of the other Loan Documents, or
any of the transactions contemplated hereby or thereby, (b) submits to the
nonexclusive personal jurisdiction in the State of Georgia, the courts thereof
and the United States District Courts sitting therein, for the enforcement of
this Agreement, the Notes and the other Loan Documents, (c) waives any and all
personal rights under the law of any jurisdiction to object on any basis
(including, without limitation, inconvenience of forum) to jurisdiction or venue
within the State of Georgia for the purpose of litigation to enforce this
Agreement, the Notes or the other Loan Documents, and (d) agrees that service of
process may be made upon it in the manner prescribed in Section 9.01 for the
giving of notice to the Borrower. Nothing herein contained, however, shall
prevent the Agent from bringing any action or exercising any rights against any
security and against the Borrower personally, and against any assets of the
Borrower, within any other state or jurisdiction.

         SECTION 9.16. Counterparts. This Agreement may be signed in any number
of counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

         SECTION 9.17. Source of Funds -- ERISA. Each of the Banks hereby
severally (and not jointly) represents to the Borrower that no part of the funds
to be used by such Bank to fund the Loans hereunder from time to time
constitutes (i) assets allocated to any separate account maintained by such Bank
in which any employee benefit plan (or its related trust) has any interest nor
(ii) any other assets of any employee benefit plan. As used in this Section, the
terms "employee benefit plan" and "separate account" shall have the respective
meanings assigned to such terms in Section 3 of ERISA.

               [Signatures are contained on the following pages.]

                                       63
<PAGE>   70

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, under seal, by their respective authorized officers as of the day
and year first above written.

                                  FLOWERS INDUSTRIES, INC.    (SEAL)

                                  By:
                                      ------------------------
                                      Name:
                                           -------------------
                                      Title:
                                            ------------------

                                  Flowers Industries, Inc.
                                  1919 Flowers Circle
                                  Thomasville, Georgia 31757
                                  Attention: Jimmy M. Woodward
                                  Telecopier number: 912-225-3808
                                  Confirmation number: 912-227-2266

                                       64
<PAGE>   71

COMMITMENTS                       WACHOVIA BANK, N.A.,
$110,000,000                      as Agent and as a Bank    (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  Lending Office

                                  Wachovia Bank, N.A.
                                  191 Peachtree Street, N.E.
                                  Atlanta, Georgia  30303-1757
                                  Attention:  Kevin B. Harrison
                                  Telecopier number:  404-332-6920
                                  Confirmation number:  404-332-5269

$100,000,000                      THE BANK OF NOVA SCOTIA, as
                                  Documentation Agent and as
                                  a Bank         (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  Lending Office
                                  The Bank of Nova Scotia
                                  600 Peachtree Street, N.E.
                                  Suite 2700
                                  Atlanta, Georgia  30308
                                  Attention:  William Zarrett
                                  Telecopier number:  404-888-8998
                                  Confirmation number:  404-877-1504

                                       65
<PAGE>   72

100,000,000                       BANK OF AMERICA, N.A., as Syndications
                                  Agent and as a Bank       (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  Lending Office
                                  Bank of America, N.A.
                                  231 S. LaSalle Street
                                  Suite 944
                                  Chicago, Illinois  60697
                                  Attention:  Casey Cosgrove.
                                  Telecopier number:  312-987-1276
                                  Confirmation number:  312-828-3092

                                       66
<PAGE>   73

$75,000,000                       FIRST UNION NATIONAL BANK
                                  as a Bank       (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  Lending Office
                                  First Union National Bank
                                  999 Peachtree Street, N.E.
                                  9th Floor
                                  Atlanta, Georgia 30309
                                  Attention:  Michael Romanzo
                                  Telecopier number: 404-827-7199
                                  Confirmation number:  404-827-7140

                                       67
<PAGE>   74

$45,000,000                       BANK ONE, NA, as a Bank
                                  Chicago Main Office
                                  (f/k/a The First National Bank
                                  of Chicago)     (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  Lending Office
                                  Bank One, NA
                                  c/o Bank One Capital Markets, Inc.
                                  1 Bank One Plaza, 10th Floor
                                  Chicago, Illinois  60670
                                  Attention:  David McNeela
                                  Telecopier number:  312-732-5296
                                  Confirmation number:  312-732-5730

                                       68
<PAGE>   75

$30,000,000                      SUNTRUST BANK, as a Bank          (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                 Lending Office
                                 SunTrust Bank
                                 25 Park Place, 23rd Floor
                                 Atlanta, Georgia  30303
                                 Attention:  Kim S. Martin
                                 Telecopier number:  404-230-5305
                                 Confirmation number:  404-588-7883

                                       69
<PAGE>   76

$25,000,000                      COOPERATIEVE CENTRALE RAIFFEISEN-
                                 BOERENLEENBANK B.A., "RABOBANK
                                 NEDERLAND", NEW YORK BRANCH,
                                 as a Bank        (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                 Lending Office
                                 Cooperatieve Centrale Raiffeisen-Boerenleenbank
                                 B.A., "Rabobank Nederland", New York Branch
                                 245 Park Avenue
                                 New York, New York 10157
                                 Attention: Brenda Llew
                                 Telecopier number: 212-916-7930
                                 Confirmation number: 212-916-7928

                                       70
<PAGE>   77

$15,000,000                      DG BANK, DEUTSCHE
                                 GENOSSENSCHAFTSBANK, AG, CAYMAN
                                 ISLANDS BRANCH, as a Bank  (SEAL)

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                  By:
                                     -------------------------
                                      Name:
                                            ------------------
                                      Title:
                                             -----------------

                                 Lending Office
                                 DG Bank, Deutsche Genossenschaftsbank, AG,
                                 Cayman Islands Branch
                                 c/o DG Bank
                                 303 Peachtree Street, N.E.
                                 Suite 2900
                                 Atlanta, Georgia 30308
                                 Attention:  Kurt A. Morris
                                 Telecopier number:  404-524-4006
                                 Confirmation number:  404-524-3966

---------------
TOTAL COMMITMENTS:
$500,000,000

                                       71
<PAGE>   78

                                                                     EXHIBIT A-1

                    AMENDED AND RESTATED SYNDICATED LOAN NOTE

                                Atlanta, Georgia
                                January 30, 1998

         For value received, FLOWERS INDUSTRIES, INC., a Georgia corporation
(the "Borrower"), promises to pay to the order of
_________________________________________, a ____________________ (the "Bank"),
for the account of its Lending Office, the principal sum of
___________________________________ AND NO/100 DOLLARS ($________ ), or such
lesser amount as shall equal the unpaid principal amount of each Syndicated Loan
made by the Bank to the Borrower pursuant to the Credit Agreement referred to
below, on the dates and in the amounts provided in the Credit Agreement. The
Borrower promises to pay interest on the unpaid principal amount of this Amended
and Restated Syndicated Loan Note on the dates and at the rate or rates provided
for in the Credit Agreement. Interest on any overdue principal of and, to the
extent permitted by law, overdue interest on the principal amount hereof shall
bear interest at the Default Rate, as provided for in the Credit Agreement. All
such payments of principal and interest shall be made in lawful money of the
United States in Federal or other immediately available funds at the office of
Wachovia Bank, N.A., 191 Peachtree Street, N.E., Atlanta, Georgia 30303-1757, or
such other address as may be specified from time to time pursuant to the Credit
Agreement.

         All Syndicated Loans made by the Bank, the respective maturities
thereof, the interest rates from time to time applicable thereto, and all
repayments of the principal thereof shall be recorded by the Bank and, prior to
any transfer hereof, endorsed by the Bank on the schedule attached hereto, or on
a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

         This Amended and Restated Syndicated Loan Note is one of the Syndicated
Loan Notes referred to in the Amended and Restated Credit Agreement dated as of
January 30, 1998 among the Borrower, the Banks listed on the signature pages
thereof, Wachovia Bank, N.A., as Agent, The Bank of Nova Scotia, as
Documentation Agent, and NationsBank, N.A., as Syndications Agent (as the same
may be amended and modified from time to time, the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the optional and
mandatory prepayment and the repayment hereof and the acceleration of the
maturity hereof, as well as the obligation of the Borrower to pay all costs of
collection, including reasonable attorneys fees, in the event this Amended and
Restated Syndicated Loan Note is collected by law or through an attorney at law.

         The Borrower hereby waives presentment, demand, protest, notice of
demand, protest and nonpayment and any other notice required by law relative
hereto, except to the extent as otherwise may be expressly provided for in the
Credit Agreement.

                                       72
<PAGE>   79

         IN WITNESS WHEREOF, the Borrower has caused this Amended and Restated
Syndicated Loan Note to be duly executed, under seal, by its duly authorized
officer as of the day and year first above written.

                                              FLOWERS INDUSTRIES, INC. (SEAL)

                                              By:
                                                  ---------------------
                                                    Title:

                                       73
<PAGE>   80

               Amended and Restated Syndicated Loan Note (cont'd)

                   SYNDICATED LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

Base Rate      Amount                  Amount of
or Euro-       of                      Principal         Maturity               Notation
Date           Dollar Loan             Loan              Repaid                 Date             Made By
<S>            <C>                     <C>               <C>                    <C>              <C>

---------------------------------------------------------------------------------------------------------

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</TABLE>

                                       74
<PAGE>   81

                                                                     EXHIBIT A-2

                   AMENDED AND RESTATED MONEY MARKET LOAN NOTE

                             As of January 30, 1998

         For value received, FLOWERS INDUSTRIES, INC., a Georgia corporation
(the "Borrower"), promises to pay to the order of ____________________________,
a _______________ (the "Bank"), for the account of its Lending Office, the
principal sum of FIVE HUNDRED MILLION AND NO/100 DOLLARS ($500,000,000), or such
lesser amount as shall equal the unpaid principal amount of each Money Market
Loan made by the Bank to the Borrower pursuant to the Credit Agreement referred
to below, on the dates and in the amounts provided in the Credit Agreement. The
Borrower promises to pay interest on the unpaid principal amount of this Amended
and Restated Money Market Loan Note on the dates and at the rate or rates
provided for in the Credit Agreement referred to below. Interest on any overdue
principal of and, to the extent permitted by law, overdue interest on the
principal amount hereof shall bear interest at the Default Rate, as provided for
in the Credit Agreement. All such payments of principal and interest shall be
made in lawful money of the United States in Federal or other immediately
available funds at the office of Wachovia, N.A., 191 Peachtree Street, N.E.,
Atlanta, Georgia 30303-1757, or such other address as may be specified from time
to time pursuant to the Credit Agreement.

         All Money Market Loans made by the Bank, the respective maturities
thereof, the interest rates from time to time applicable thereto, and all
repayments of the principal thereof shall be recorded by the Bank and, prior to
any transfer hereof, endorsed by the Bank on the schedule attached hereto, or on
a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

         This Amended and Restated Money Market Loan Note is one of the Money
Market Loan Notes referred to in the Amended and Restated Credit Agreement dated
as of January 30, 1998 among the Borrower, the Banks listed on the signature
pages thereof, Wachovia Bank, N.A., as Agent, The Bank of Nova Scotia, as
Documentation Agent, and NationsBank, N.A., as Syndications Agent (as the same
may be amended and modified from time to time, the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the optional and
mandatory prepayment and the repayment hereof and the acceleration of the
maturity hereof, as well as the obligation of the Borrower to pay all costs of
collection, including reasonable attorneys fees, in the event this Amended and
Restated Money Market Loan Note is collected by law or through an attorney at
law.

         The Borrower hereby waives presentment, demand, protest, notice of
demand, protest and nonpayment and any other notice required by law relative
hereto, except to the extent as otherwise may be expressly provided for in the
Credit Agreement.

                                       75
<PAGE>   82

         IN WITNESS WHEREOF, the Borrower has caused this Amended and Restated
Money Market Loan Note to be duly executed, under seal, by its duly authorized
officer as of the day and year first above written.

                                          FLOWERS INDUSTRIES, INC.  (SEAL)

                                          By:
                                             ---------------------
                                               Title:

                                       76
<PAGE>   83

              Amended and Restated Money Market Loan Note (cont'd)

                  MONEY MARKET LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

               Amount                  Amount of         Stated
Interest       of                      Principal         Maturity               Notation
Date           Rate                    Loan              Repaid                 Date             Made By
<S>            <C>                     <C>               <C>                    <C>              <C>

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------

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</TABLE>

                                       77
<PAGE>   84

                                                                     EXHIBIT A-3

                                 SWING LOAN NOTE

                                Atlanta, Georgia

                                 March 30, 2000

     For value received, FLOWERS INDUSTRIES, a Georgia corporation (the
"Borrower"), promises to pay to the order of WACHOVIA BANK, N.A., a national
banking association (the "Bank"), for the account of its Lending Office, the
principal sum of Fifteen Million and No/100 Dollars ($15,000,000), or such
lesser amount as shall equal the unpaid principal amount of each Swing Loan made
by the Bank to the Borrower pursuant to the Credit Agreement referred to below,
on the dates and in the amounts provided in the Credit Agreement. The Borrower
promises to pay interest on the unpaid principal amount of this Swing Loan Note
at the rate provided for Base Rate Loans on the dates provided for in the Credit
Agreement. Interest on any overdue principal of and, to the extent permitted by
law, overdue interest on the principal amount hereof shall bear interest at the
Default Rate, as provided for in the Credit Agreement. All such payments of
principal and interest shall be made in lawful money of the United States in
Federal or other immediately available funds at the office of Wachovia Bank,
N.A., 191 Peachtree Street, N.E., Atlanta, Georgia 30303-1757, or such other
address as may be specified from time to time pursuant to the Credit Agreement.

     All Swing Loans made by the Bank, the respective maturities thereof, and
all repayments of the principal thereof shall be recorded by the Bank and, prior
to any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

     This Swing Loan Note is the Swing Loan Note referred to in the Second
Amended and Restated Credit Agreement dated as of even date herewith among the
Borrower, the Banks listed on the signature pages thereof and Wachovia Bank,
N.A., as Agent (as the same may be amended and modified from time to time, the
"Credit Agreement"). Terms defined in the Credit Agreement are used herein with
the same meanings. Reference is made to the Credit Agreement for provisions for
the optional and mandatory prepayment and the repayment hereof and the
acceleration of the maturity hereof.

                                       78
<PAGE>   85

     IN WITNESS WHEREOF, the Borrower has caused this Swing Loan Note to be duly
executed, under seal, by its duly authorized officer as of the day and year
first above written.

                                       FLOWERS INDUSTRIES, INC.    (SEAL)

                                       By:
                                          ---------------------
                                            Title:

                                       79
<PAGE>   86

                          Swing Loan Note (continued)

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                           LOANS AND PAYMENTS OF PRINCIPAL

                                                      AMOUNT OF
                             AMOUNT OF                PRINCIPAL                MATURITY               NOTATION
        DATE                   LOAN                     REPAID                   DATE                  MADE BY
        <S>                  <C>                      <C>                      <C>                    <C>

----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       80
<PAGE>   87

                                                                       EXHIBIT B

                                   OPINION OF
                            COUNSEL FOR THE BORROWER

                                                  [Dated as provided in Section
                                                   3.01 of the Credit Agreement]

To the Banks and the Agent
Referred to Below
c/o Wachovia Bank, N.A.,
as Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attn:  Syndications Group

Dear Sirs:

         I am Assistant General Counsel of Flowers Industries, Inc., a Georgia
corporation (the "Borrower") in connection with the Amended and Restated Credit
Agreement (the "Credit Agreement") dated as of January 30, 1998, among the
Borrower, the banks listed on the signature pages thereof, Wachovia Bank, N.A.,
as Agent, The Bank of Nova Scotia, as Documentation Agent, and NationsBank,
N.A., as Syndications Agent. Terms defined in the Credit Agreement are used
herein as therein defined.

         I have examined originals or copies, certified or otherwise identified
to my satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as I have deemed necessary or advisable for purposes of this
opinion. I have assumed for purposes of my opinions set forth below that the
execution and delivery of the Credit Agreement by each Bank and by the Agent
have been duly authorized by each Bank and by the Agent.

         Upon the basis of the foregoing, I am of the opinion that:

         1. The Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of Georgia and has all corporate powers
required to carry on its business as now conducted.

         2. The execution, delivery and performance by the Borrower of the
Credit Agreement and the Notes (i) are within the Borrower's corporate powers,
(ii) have been duly authorized by all necessary corporate action, (iii) require
no action by or in respect of, or filing with, any governmental body, agency or
official, (iv) do not contravene, or constitute a default under, any provision
of applicable law or regulation or of the certificate of incorporation or
by-laws of the Borrower or of any agreement, judgment, injunction, order, decree
or other instrument which to our knowledge is binding upon the Borrower and (v)
except as provided in

                                       81
<PAGE>   88

the Credit Agreement, do not result in the creation or imposition of any Lien on
any asset of the Borrower or any of its Subsidiaries.

         3. The Credit Agreement constitutes a valid and binding agreement of
the Borrower, enforceable against the Borrower in accordance with its terms, and
the Notes constitute valid and binding obligations of the Borrower, enforceable
in accordance with their respective terms, except as such enforceability may be
limited by: (i) bankruptcy, insolvency or similar laws affecting the enforcement
of creditors' rights generally and (ii) general principles of equity.

         4. There is no action, suit or proceeding pending, or threatened,
against or affecting the Borrower or any of its Subsidiaries before any court or
arbitrator or any governmental body, agency or official in which there is a
reasonable possibility of an adverse decision which could materially adversely
affect the business, consolidated financial position or consolidated results of
operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole, or which in any manner questions the validity or enforceability of the
Credit Agreement or any Note.

         5. Each of the Borrower's Subsidiaries is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

         6. Neither the Borrower nor any of its Subsidiaries is an "investment
company" within the meaning of the Investment Company Act of 1940, as amended.

         7. Neither the Borrower nor any of its Subsidiaries is a "holding
company", or a "subsidiary company" of a "holding company", or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company", as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.

         The opinion contained in Paragraph 2(iv) hereof is qualified to the
effect that no opinion is given thereunder as to Regulations G, T, U or X of the
Board of Governors of the Federal Reserve System.

         I am qualified to practice in the State of Georgia and do not purport
to be experts on any laws other than the laws of the United States and the State
of Georgia and this opinion is rendered only with respect to such laws. I have
made no independent investigation of the laws of any other jurisdiction.

         This opinion is delivered to you in connection with the transaction
referenced above and may only be relied upon by you, any Assignee, Participant
or other Transferee under the Credit Agreement, and Jones, Day, Reavis & Pogue
without our prior written consent.

                                             Very truly yours,

                                       82
<PAGE>   89

                                                                       EXHIBIT C

                                   OPINION OF
                   JONES, DAY, REAVIS & POGUE, SPECIAL COUNSEL
                                  FOR THE AGENT

                                                 [Dated as provided in Section
                                                  3.01 of the Credit Agreement]

To the Banks and the Agent
Referred to Below
c/o Wachovia Bank, N.A.,
as Agent
191 Peachtree Street, N.E.
Atlanta, Georgia 30303-1757
Attn: Syndications Group

Dear Sirs:

         We have participated in the preparation of the Amended and Restated
Credit Agreement (the "Credit Agreement") dated as of January 30, 1998, among
Flowers Industries, Inc., a Georgia corporation (the "Borrower"), the banks
listed on the signature pages thereof (the "Banks"), Wachovia Bank, N.A., as
Agent (the "Agent"), The Bank of Nova Scotia, as Documentation Agent, and
NationsBank, N.A., as Syndications Agent, and have acted as special counsel for
the Agent for the purpose of rendering this opinion pursuant to Section 3.01(d)
of the Credit Agreement. Terms defined in the Credit Agreement are used herein
as therein defined.

         This opinion letter is limited by, and is in accordance with, the
January 1, 1992 edition of the Interpretive Standards applicable to Legal
Opinions to Third Parties in Corporate Transactions adopted by the Legal Opinion
Committee of the Corporate and Banking Law Section of the State Bar of Georgia
which Interpretive Standards are incorporated herein by this reference.

         We have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, corporate records, certificates of
public officials and other instruments and have conducted such other
investigations of fact and law as we have deemed necessary or advisable for
purposes of this opinion.

         Upon the basis of the foregoing, and assuming the due authorization,
execution and delivery of the Credit Agreement and each of the Notes by or on
behalf of the Borrower, we are of the opinion that the Credit Agreement
constitutes a valid and binding agreement of the Borrower and each Note
constitutes valid and binding obligations of the Borrower, in each case
enforceable in accordance with its terms except as: (i) the enforceability
thereof may be affected by bankruptcy, insolvency, reorganization, fraudulent
conveyance, voidable preference, moratorium or similar laws applicable to
creditors' rights or the collection of debtors' obligations

                                       83
<PAGE>   90

generally; (ii) rights of acceleration and the availability of equitable
remedies may be limited by equitable principles of general applicability; and
(iii) the enforceability of certain of the remedial, waiver and other provisions
of the Credit Agreement and the Notes may be further limited by the laws of the
State of Georgia; provided that such additional laws do not, in our opinion,
substantially interfere with the practical realization of the benefits expressed
in the Credit Agreement and the Notes, except for the economic consequences of
any procedural delay which may result from such laws.

         In giving the foregoing opinion, we express no opinion as to the effect
(if any) of any law of any jurisdiction except the State of Georgia. We express
no opinion as to the effect of the compliance or noncompliance of the Agent or
any of the Banks with any state or federal laws or regulations applicable to the
Agent or any of the Banks by reason of the legal or regulatory status or the
nature of the business of the Agent or any of the Banks.

         This opinion is delivered to you in connection with the transaction
referenced above and may only be relied upon by you and any Assignee,
Participant or other Transferee under the Credit Agreement without our prior
written consent.

                                               Very truly yours,

                                       84
<PAGE>   91

                                                                       EXHIBIT D

                           ASSIGNMENT AND ACCEPTANCE
                      Dated _______________ ____, ________

         Reference is made to the Second Amended and Restated Credit Agreement
dated as of March 30, 2000 (together with all amendments and modifications
thereto, the "Credit Agreement") among Flowers Industries, Inc., a Georgia
corporation (the "Borrower"), the Banks (as defined in the Credit Agreement),
Wachovia Bank, N.A., as Agent (the "Agent"), The Bank of Nova Scotia, as
Documentation Agent, and Bank of America, N.A., as Syndications Agent. Terms
defined in the Credit Agreement are used herein with the same meaning.

         ____________________________________________ (the "Assignor") and
____________________________________ (the "Assignee") agree as follows:

         1. The Assignor hereby sells and assigns to the Assignee, without
recourse to the Assignor, and the Assignee hereby purchases and assumes from the
Assignor, a _____% interest in and to all of the Assignor's rights and
obligations under the Credit Agreement as of the Effective Date (as defined
below) (including, without limitation, a _____% interest (which on the Effective
Date hereof is $__________) in the Assignor's Commitment and a _____% interest
(which on the Effective Date hereof is $_______________) in the Syndicated Loans
[and Money Market Loans] owing to the Assignor and a _____% interest in the
Note[s] held by the Assignor (which on the Effective Date hereof is
$__________).

         2. The Assignor (i) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto, other
than that it is the legal and beneficial owner of the interest being assigned by
it hereunder, that such interest is free and clear of any adverse claim and that
as of the date hereof its Commitment (without giving effect to assignments
thereof which have not yet become effective) is $__________ and the aggregate
outstanding principal amount of Syndicated Loans [and Money Market Loans] owing
to it (without giving effect to assignments thereof which have not yet become
effective) is $ __________; (ii) makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iii) attaches the Note[s] referred to in paragraph 1 above and requests
that the Agent exchange such Note[s] for [a new Syndicated Loan Note
dated ________ , ______, in the principal amount of $__________ payable to the
order of the Assignee and a new Money Market Loan Note dated ___________, ____
in the principal amount of $______________ payable to the order of the Assignee]
[new Notes as follows: a (i) Syndicated Loan Note dated ___________ , ____ in
the principal amount of $ __________ payable to the order of the Assignor
(ii) Syndicated Loan Note dated __________ , _____ in the principal amount of
$ ________ payable to the order of the Assignee, and (iii) and a new Money
Market Loan Note dated ___________, ____ in the principal amount of
$______________ payable to the order of the Assignee].

                                       85
<PAGE>   92

         3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.04(a) thereof (or any more recent financial statements of the Borrower
delivered pursuant to Section 5.01(a) or (b) thereof) and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor or any other
Bank and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement; (iii) confirms that it is a bank or financial
institution; (iv) appoints and authorizes the Agent to take such action as agent
on its behalf and to exercise such powers under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Bank; (vi) specifies as its
Lending Office (and address for notices) the office set forth beneath its name
on the signature pages hereof, (vii) represents and warrants that the execution,
delivery and performance of this Assignment and Acceptance are within its
corporate powers and have been duly authorized by all necessary corporate
action, (viii) makes the representation and warranty contained in Section 9.17
of the Credit Agreement[, and (ix) attaches the forms prescribed by the Internal
Revenue Service of the United States certifying as to the Assignee's status for
purposes of determining exemption from United States withholding taxes with
respect to all payments to be made to the Assignee under the Credit Agreement
and the Notes or such other documents as are necessary to indicate that all such
payments are subject to such taxes at a rate reduced by an applicable tax
treaty].

         4. The Effective Date for this Assignment and Acceptance shall be
_______________, _____ (the "Effective Date"). Following the execution of this
Assignment and Acceptance, it will be delivered to the Agent for execution and
acceptance by the Agent and to the Borrower for execution by the Borrower.

         5. Upon such execution and acceptance by the Agent [and execution by
the Borrower] [IF REQUIRED BY THE CREDIT AGREEMENT], from and after the
Effective Date, (i) the Assignee shall be a party to the Credit Agreement and,
to the extent rights and obligations have been transferred to it by this
Assignment and Acceptance, have the rights and obligations of a Bank thereunder
and (ii) the Assignor shall, to the extent its rights and obligations have been
transferred to the Assignee by this Assignment and Acceptance, relinquish its
rights (other than under Sections 8.03, 9.03 and 9.04 of the Credit Agreement)
and be released from its obligations under the Credit Agreement.

         6. Upon such execution and acceptance by the Agent [and execution by
the Borrower] [IF REQUIRED BY THE CREDIT AGREEMENT], from and after the
Effective Date, the Agent shall make all payments in respect of the interest
assigned hereby to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments for periods prior to such acceptance by the
Agent directly between themselves.

         7. This Assignment and Acceptance shall be governed by, and construed
in accordance with, the laws of the State of Georgia.

                                       86
<PAGE>   93

                                    [NAME OF ASSIGNOR]

                                    By:
                                       ------------------------------
                                        Title:

                                    [NAME OF ASSIGNEE]

                                    By:
                                       ------------------------------
                                        Title:

                                    Lending Office:
                                    [Address]

                                    WACHOVIA BANK, N.A.,
                                    As Agent

                                    By:
                                       ------------------------------
                                        Title:

                                    FLOWERS INDUSTRIES, INC.
                                    IF REQUIRED BY THE CREDIT AGREEMENT

                                    By:
                                       ------------------------------
                                        Title:

                                       87
<PAGE>   94

                                                                       EXHIBIT E

                               NOTICE OF BORROWING

                              ________________, ___

Wachovia Bank, N.A., as Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention:  Syndications Group

                  Re:  Second Amended and Restated Credit Agreement (as
                       amended and modified from time to time, the "Credit
                       Agreement") dated as of March 30, 2000, by and among
                       Flowers Industries, Inc., the Banks from time to
                       time parties thereto, Wachovia Bank, as Agent, The
                       Bank of Nova Scotia, as Documentation Agent, and
                       Bank of America, N.A., as Syndications Agent.

Gentlemen:

     Unless otherwise defined herein, capitalized terms used herein shall have
the meanings attributable thereto in the Credit Agreement.

     This Notice of Borrowing is delivered to you pursuant to Section 2.02 of
the Credit Agreement.

     The Borrower hereby requests a [Syndicated Borrowing] [Swing Loan
Borrowing] [Euro-Dollar Borrowing] [Base Rate Borrowing] in the aggregate
principal amount of $_____ to be made on_____,___, and for interest to accrue
thereon at the rate established by the Credit Agreement for [Euro-Dollar Loans]
[Base Rate Loans]. The duration of the Interest Period with respect thereto
shall be [1 month] [2 months] [3 months] [6 months] [30 days].

     The Borrower has caused this Notice of Borrowing to be executed and
delivered by its duly authorized officer this____ day of____,___.

                                    FLOWERS INDUSTRIES, INC.

                                    By:
                                       ----------------------
                                        Title:

                                       88
<PAGE>   95

                                                                       EXHIBIT F

                             COMPLIANCE CERTIFICATE

     Reference is made to the Second Amended and Restated Credit Agreement dated
as of March 30, 2000 (as modified and supplemented and in effect from time to
time, the "Credit Agreement") among Flowers Industries, Inc., the Banks from
time to time parties thereto, Wachovia Bank, N.A., as Agent, The Bank of Nova
Scotia, as Documentation Agent, and Bank of America, N.A., as Syndications
Agent. Capitalized terms used herein shall have the meanings ascribed thereto in
the Credit Agreement.

Pursuant to Section 5.01(c) of the Credit Agreement,______, the duly authorized
________ of Flowers Industries, Inc., hereby (A) certifies to the Agent and the
Banks that the information contained in the Compliance Check List attached
hereto is true, accurate and complete as of______,___, (B) certifies to the
Agent and the Banks that no Default is in existence on and as of the date hereof
and (C) restates and reaffirms that the representations and warranties contained
in Article IV of the Credit Agreement are true on and as of the date hereof as
though restated on and as of this date.

                                    FLOWERS INDUSTRIES, INC.

                                    By:
                                       ------------------------------
                                        Title:

                                       89
<PAGE>   96

                              COMPLIANCE CHECK LIST
                            Flowers Industries, Inc.

                            ________________________

                             ______________, ______

1.       Loans and Advances (Section 5.14)

         Neither the Borrower nor any of its Material Subsidiaries shall make
         loans or advances to any Person except as permitted by Section 5.16 and
         except: (i) loans or advances to employees not exceeding $10,000,000 in
         the aggregate principal amount outstanding at any time, in each case
         made in the ordinary course of business and consistent with practices
         existing on the Closing Date; (ii) deposits required by government
         agencies or public utilities; (iii) loans or advances to and among
         Borrower and its Wholly Owned Subsidiaries; and (iv) other loans or
         advances, to Persons other than the Unrestricted Subsidiaries (loans
         and advances to Unrestricted Subsidiaries not being permitted), in an
         aggregate amount outstanding which do not exceed 15% of Adjusted
         Consolidated Total Assets as of the last day of the immediately
         preceding Fiscal Quarter; provided that after giving effect to the
         making of any loans, advances or deposits permitted by this Section, no
         Default shall be in existence or be created thereby.

         (a)  loans and advances to employees                $
                                                              ----------
         (b)  lesser of (a) and $10,000,000                  $
                                                              ----------
         (c)  other loans and advances not
              permitted by clauses (i) through (iii),
              inclusive (1)                                  $
                                                              ----------
         (d)  Adjusted Consolidated Total Assets             $
                                                              ----------
         (e)  15% of (d)                                     $
                                                              ----------
         Limitation (d) may not exceed (e)

2.       Negative Pledge (Section 5.16)

         (a)  Amount of Indebtedness secured by Liens
              permitted by Sections 5.1(a)
              through 5.16(g), inclusive, and
              (l) and (n)    Schedule - 1                    $
                                                              ----------
         (b)  Amount of Debt secured by Liens not

---------------

(1)      Loans and advances to the Unrestricted Subsidiaries are not permitted
         and may not be included in this category.

                                       90
<PAGE>   97

              permitted by Section (q) Schedule - 1          $
                                                              ----------
         (c)  Aggregate amount of Indebtedness of
              Restricted Subsidiaries permitted
              by Section 5.20(iv)                            $
                                                              ----------
         (d)  Sum of (b) and (c)                             $
                                                              ----------
         (e)  Adjusted Consolidated Net Worth                $
                                                              ----------
         (f)  20% of (e)                                     $
                                                              ----------
         Limitation (d) may not exceed (f)

3.       Adjusted Fixed Charge Coverage Ratio (Section 5.17)

At the end of each Fiscal Quarter, commencing with the second Fiscal Quarter of
the 2000 Fiscal Year, the ratio of Adjusted EBILTDA to Adjusted Consolidated
Fixed Charges shall at all times be equal to or greater than the ratio set
forth below for such Fiscal Quarter of each Fiscal Year set forth below:

<TABLE>
<CAPTION>
                                      Adjusted Fixed Charges
  Fiscal Quarter      Fiscal Year         Coverage Ratio
  --------------      -----------         --------------
  <S>                 <C>             <C>
  Second                 2000              1.10 to 1.0
  Third                  2000              1.15 to 1.0
  Fourth                 2000              1.20 to 1.0
  First                  2001              1.25 to 1.0
  Second                 2001              1.25 to 1.0
  Third                  2001              1.25 to 1.0
  Fourth                 2001
  and thereafter                           1.50 to 1.0
</TABLE>

          (a)  Adjusted Consolidated Net Income Schedule 2          $
                                                                     ----------
          (b)  Adjusted Consolidated Interest Expense - Schedule 2  $
                                                                     ----------
          (c)  payments on operating leases and rental agreements   $
                                                                     ----------
          (d)  taxes - Schedule 2                                   $
                                                                     ----------
          (e)  depreciation - Schedule 2                            $
                                                                     ----------
          (f)  amortization - Schedule 2                            $
                                                                     ----------

                                       91
<PAGE>   98

          (g)  sum of (a) plus (b) plus (c) plus (d) plus (e)
               plus (f)                                             $
                                                                     ----------
          (h)  sum of (b) plus (c)                                  $
                                                                     ----------
               Ratio of (g) to (h)                                  $
                                                                     ----------
               Requirement                                       [>1.10 to 1.0]
                                                                  -
                                                                 [>1.15 to 1.0]
                                                                  -
                                                                 [>1.20 to 1.0]
                                                                  -
                                                                 [>1.25 to 1.0]
                                                                  -
                                                                 [>1.50 to 1.0]
                                                                  -

4.       Leverage Ratio (Section 5.18)

         The Leverage Ratio shall at all times be equal to or less than 0.65 to
         1.0.

          (a)  Adjusted Consolidated Total Debt Schedule - 4        $
                                                                     ----------
          (b)  Adjusted Consolidated Net Worth                      $
                                                                     ----------
          (c)  Sum of (a) plus (b)                                  $
                                                                     ----------
          Ratio of (a) to (c)                                       $
                                                                     ----------
          Requirement                                            > 0.65 to 1.00
                                                                 -

5.       Minimum Adjusted Consolidated Net Worth (Section 5.19)

         Adjusted Consolidated Net Worth will at no time be less than
         $487,569,000, plus the sum of (x) 50% of the cumulative Net Proceeds
         of Capital Stock received during any period after April 27, 1998, plus
         (y) 50% of any equity resulting from a conversion of Indebtedness of
         the Borrower during any period after April 27, 1998, less (z) any
         amount of equity of the Borrower repurchased during any period after
         April 27, 1998, calculated quarterly at the end of each Fiscal
         Quarter.

          (a)  cumulative Net Capital Proceeds since April 27, 1998 $
                                                                     ----------
          (b)  50% of (a)                                           $
                                                                     ----------
          (c)  equity resulting from Indebtedness conversion
               since April 27, 1998                                 $
                                                                     ----------
          (d)  amount of equity repurchased since April 27, 1998    $
                                                                     ----------
          (e)  (c) less (d)                                         $
                                                                     ----------

                                       92
<PAGE>   99

          (f)  50% of (e)                                           $
                                                                     ----------
          (g)  sum of $487,589,000, plus (b),
               plus (f)                                             $
                                                                     ----------
          (h)  Adjusted Consolidated Net Worth                      $
                                                                     ----------
               Limitation (h) may not be less than (g)

6.       Adjusted Consolidated EBITDA (Section 5.22)

At the end of each Fiscal Quarter, commencing with the first Fiscal Quarter of
the 2000 Fiscal Year, Adjusted Consolidated EBITDA shall at all times be equal
to or greater than the amount set forth below for each Fiscal Quarter of each
Fiscal Year set forth below, and shall be calculated (i) at the end of each
Fiscal Quarter in the 2000 Fiscal Year, for such Fiscal Quarter only, and (ii)
at the end of each Fiscal Quarter thereafter, for the 4 Fiscal Quarter period
then ending.

<TABLE>
<CAPTION>

                                                     Adjusted
Fiscal Quarter                  Fiscal Year        Consolidated
--------------                  -----------        ------------
                                                      EBITDA
                                                      ------
<S>                             <C>                <C>
First                              2000            $ 26,500,000
Second                             2000            $ 18,500,000
Third                              2000            $ 24,500,000
Fourth                             2000            $ 25,000,000
First                              2001            $105,000,000
Second                             2001            $105,000,000
Third                              2001            $115,000,000
Fourth                             2001            $115,000,000
First and thereafter               2002            $125,000,000
   Adjusted Consolidated EBITDA
     Schedule - 5                                  $
</TABLE>                                           ------------

7.       Capital Expenditures (Section 5.25)

         The Borrower shall not, and the Borrower shall not permit its
         Restricted Subsidiaries to, incur Capital Expenditures in any Fiscal
         Year, except that Capital Expenditures may be incurred up to an
         aggregate amount not exceeding (x) $40,000,000 in the 2000 Fiscal Year
         and (y) $37,500,000 in any Fiscal Year thereafter, provided that after
         giving effect to the incurrence of any Capital Expenditures permitted
         by this Section, no Default shall be in existence or be created
         thereby.

          (a)  Capital Expenditures incurred in Fiscal Year         $
               to date:                                              ----------

               Limitation: (a) may not exceed $40,000,000 in the 2000 Fiscal
                              Year and $37,500,000 in any Fiscal Year thereafter

                                       93
<PAGE>   100

                                                                    Schedule - 1

     (a) Liens Securing Debt In The Principal Amount of $50,000 or More which
are Not Permitted by Sections 5.1(a) through 5.16(g), inclusive, and
(l), (n) and (o)

<TABLE>
<CAPTION>

                                                     Relevant Provision of
Description of Lien    Amount of Debt Secured     Section 5.16 Permitting Same
-------------------    ----------------------     ----------------------------
<S>                    <C>                        <C>

1.                       $
  ----------------       ----------------               ---------------
2.                       $
  ----------------       ----------------               ---------------
3.                       $
  ----------------       ----------------               ---------------
4.                       $
  ----------------       ----------------               ---------------
5.                       $
  ----------------       ----------------               ---------------
6.                       $
  ----------------       ----------------               ---------------
7.                       $
  ----------------       ----------------               ---------------
8.                       $
  ----------------       ----------------               ---------------
9.                       $
  ----------------       ----------------               ---------------
</TABLE>

(b)  Aggregate Amount of Other Liens Securing Debt which are
     Not Permitted by Sections 5.1(a) through 5.16(g), inclusive
     and (l), (n) and (o)                                            $
                                                                      ----------
(c)  Aggregate Amount of All Debt Secured by Liens                   $
                                                                      ----------

                                       94
<PAGE>   101

                                                                    Schedule - 2

                       Adjusted Fixed Charge Coverage (2)

<TABLE>

<S>                                                           <C>
Adjusted Consolidated Net Income for:

      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------

       Total                                                  $
                                                               ----------

Adjusted Consolidated Interest Expense for:

      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------

       Total                                                  $
                                                               ----------

Operating Leases and Rentals for:

      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------
      quarter                                                 $
-----         -----                                            ----------

       Total                                                  $
                                                               ----------

Taxes for:

                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------
</TABLE>

Depreciation for:

---------------

(2)    Include Restricted Subsidiaries Only, and include only Fiscal Year to
       date for calculation at end of second and third Fiscal Quarter of 2000
       Fiscal Year

                                       95

<PAGE>   102

<TABLE>
<S>   <C>     <C>                                             <C>
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------

Amortization for:

                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------
</TABLE>

                                       96
<PAGE>   103

                                                                    Schedule - 4

                        Adjusted Consolidated Total Debt

<TABLE>
<CAPTION>

                                                     INTEREST
                                                       RATE                MATURITY                 TOTAL
                                                     --------              --------                 -----

<S>      <C>                                         <C>                   <C>                   <C>
(a)      Unsecured Borrowed Money
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Unsecured Borrowed Money                                                          $
                                                                                                  ----------
(b)      Deferred Purchase Price
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Deferred Purchase Price                                                           $
                                                                                                  ----------
(c)      Capitalized Leases
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Capitalized Leases                                                                $
                                                                                                  ----------
(d)      Secured Borrowed Money
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Secured Borrowed Money                                                            $
                                                                                                  ----------
(e)      Letters of Credit and Similar Instruments(3)
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Letters of Credit and Similar Instruments                                         $
                                                                                                  ----------
</TABLE>

--------------

(3)    Include only if have maturities of greater than 1 year

                                       97
<PAGE>   104

<TABLE>

<S>      <S>                                         <C>                   <C>                   <C>
(f)      Swaps
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Swaps                                                                             $
                                                                                                  ----------
(g)      Guaranties
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Guaranties                                                                        $
                                                                                                  ----------
(h)      Convertible Redeemable Capital Stock (4)
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Convertible Redeemable Capital Stock                                              $
                                                                                                  ----------
(i)      Convertible Subordinated Debt (2)
                                                                                                 $
         ===================                         ----------            ----------             ----------
                                                                                                 $
         ===================                         ----------            ----------             ----------

         Total Convertible Subordinated Debt                                                     $
                                                                                                  ----------
         ADJUSTED CONSOLIDATED TOTAL DEBT-sum of (a) plus (b)
         plus (c) plus (d) plus (e) plus (f) plus (g)                                            $
         less (h) less (i)                                                                        ----------
</TABLE>

--------------

(4)    Include only if current market value of an equity security into which it
       is convertible is greater than the conversion price for such security.

                                       98
<PAGE>   105

                                                                    Schedule - 5

                         Adjusted Consolidated EBITDA (5)

<TABLE>

<S>                                                           <C>
Adjusted Consolidated Net Income for:
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------

Adjusted Consolidated Interest Expense for:
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------

Taxes for:
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------

Depreciation for:
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------
</TABLE>

Amortization for:

---------------

(5)    Include Restricted Subsidiaries Only and for each Fiscal Quarter of the
       2000 Fiscal Year, include only calculation for such Fiscal Quarter

                                       99
<PAGE>   106

<TABLE>

<S>                                                           <C>
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------
Other Non-cash Charges for:

----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------
                                                              $
----- quarter -----                                            ----------

       Total                                                  $
                                                               ----------
</TABLE>

                                      100
<PAGE>   107

                                                                       EXHIBIT G

                            FLOWERS INDUSTRIES, INC.

                               CLOSING CERTIFICATE

     Reference is made to the Second Amended and Restated Credit Agreement (the
"Credit Agreement") dated as of March 30, 2000, among Flowers Industries, Inc.,
the Banks listed therein, Wachovia Bank , N.A., as Agent, The Bank of Nova
Scotia, as Documentation Agent, and Bank of America, N.A., as Syndications
Agent. Capitalized terms used herein have the meanings ascribed thereto in the
Credit Agreement.

     Pursuant to Section 3.01(e) of the Credit Agreement,________________ , the
duly authorized____________ of Flowers Industries, Inc. hereby certifies to the
Agent and the Banks that (i) no Default has occurred and is continuing as of the
date hereof, and (ii) the representations and warranties contained in Article IV
of the Credit Agreement are true on and as of the date hereof.

     Certified as of this March 30, 2000.

                                          By:
                                             ----------------------------------

                                             Printed Name:
                                                          ---------------------
                                             Title:
                                                   ----------------------------

                                      101
<PAGE>   108

                                                                       EXHIBIT H

                            FLOWERS INDUSTRIES, INC.

                             SECRETARY'S CERTIFICATE

         The undersigned,_________________,_______________, Secretary of Flowers
Industries, Inc., a Georgia corporation (the "Borrower"), hereby certifies that
he has been duly elected, qualified and is acting in such capacity and that, as
such, [s]he is familiar with the facts herein certified and is duly authorized
to certify the same, and hereby further certifies, in connection with the Second
Amended and Restated Credit Agreement dated as of March 30, 2000 among the
Borrower, Wachovia Bank, N.A. as Agent and as a Bank, The Bank of Nova Scotia,
as Documentation Agent, and Bank of America, N.A., as Syndications Agent, and
certain other Banks listed on the signature pages thereof (capitalized terms
used herein without definition have the meanings given them therein), that:

     1. The Certificate of Incorporation of the Borrower delivered at the
closing of the Original Agreement is still in full force and effect on the date
hereof [EXCEPT THAT IT HAS BEEN AMENDED BY THE AMENDMENT ATTACHED HERETO AS
EXHIBIT A].

     2. The Bylaws of the Borrower delivered at the closing of the Original
Agreement are still in full force and effect on the date hereof [EXCEPT THAT
THEY HAVE BEEN AMENDED BY THE AMENDMENT ATTACHED HERETO AS EXHIBIT B].

     3. _____________________, who is _____________________ of the Borrower
signed the Credit Agreement and the Swing Loan Note on behalf of the Borrower,
was duly elected, qualified and acting as such at the time he signed the Credit
Agreement and the Swing Loan Note, and his signature appearing on the Credit
Agreement and the Swing Loan Note is his genuine signature.

     IN WITNESS WHEREOF, the undersigned has hereunto set [his/her] hand as of
March 30, 2000.

                                             -------------------------------

                                      102
<PAGE>   109

                                                                       EXHIBIT I

                           MONEY MARKET QUOTE REQUEST

Wachovia Bank, N.A.,
  as Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention:  Syndications Group

         Re:      Money Market Quote Request

     This Money Market Quote Request is given in accordance with Section 2.03 of
the Second Amended and Restated Credit Agreement (as amended or modified from
time to time, the "Credit Agreement") dated as of March 30, 2000, among Flowers
Industries, Inc., the Banks from time to time parties thereto, Wachovia Bank,
N.A., as Agent, The Bank of Nova Scotia, as Documentation Agent, and Bank of
America, N.A., as Syndications Agent. Terms defined in the Credit Agreement are
used herein as defined therein.

     The Borrower hereby requests that the Agent obtain quotes for a Money
Market Borrowing based upon the following:

     1.   The proposed date of the Money Market Borrowing shall be
          ______________, _____ (the "Money Market Borrowing Date").1*

     2.   The aggregate amount of the Money Market Borrowing shall be $_____.2

     3.   The Stated Maturity Date(s) applicable to the Money Market Borrowing
          shall be days. _____(3)

                                        Very truly yours,

                                        FLOWERS INDUSTRIES, INC.

                                        By:
                                            --------------------
                                            Title:
---------------

(1)  The date must be a Euro-Dollar Business Day.

(2)  The amount of the Money Market Borrowing is subject to Section 2.03(a) and
     (b).

(3)  The Stated Maturity Dates are subject to Section 2.03(b)(iii). The Borrower
     may request that up to 2 different Stated Maturity Dates be applicable to
     any Money Market Borrowing, provided that (i) each such Stated Maturity
     Date shall be deemed to be a

                                      103
<PAGE>   110

     separate Money Market Quote Request and (ii) the Borrower shall specify the
     amounts of such Money Market Borrowing to be subject to each such different
     Stated Maturity Date.

                                      104
<PAGE>   111

                                                                       EXHIBIT J

                               MONEY MARKET QUOTE

Wachovia Bank, N.A.,
  as Agent
191 Peachtree Street, N.E.
Atlanta, Georgia 30303-1757
Attention:  Syndications Group

         Re:  Money Market Quote to Flowers Industries, Inc.

     This Money Market Quote is given in accordance with Section 2.03(c)(ii) of
the Second Amended and Restated Credit Agreement (as amended or modified from
time to time, the "Credit Agreement") dated as of March 30, 2000, among Flowers
Industries, Inc. (the "Borrower"), the Banks from time to time parties thereto,
Wachovia Bank, N.A., as Agent, The Bank of Nova Scotia, as Documentation Agent,
and Bank of America, N.A., as Syndications Agent. Terms defined in the Credit
Agreement are used herein as defined therein.

     In response to the Borrower's Money Market Quote Request dated
_______________, _____, we hereby make the following Money Market Quote on the
following terms:

     1.  Quoting Bank:

     2.  Person to contact at Quoting Bank:

     3.  Date of Money Market Borrowing:1*

     4.  We hereby offer to make Money Market Loan(s) in the following maximum
principal amounts for the following Interest Periods and at the following rates:
<TABLE>
<CAPTION>

 <S>                        <C>                      <C>
  Maximum                    Stated
 Principal                  Maturity
  Amount (2)                 Date (3)                Rate Per Annum (4)

</TABLE>

---------------

*    All numbered footnotes appear on the last page of this Exhibit I

                                      105
<PAGE>   112

     We understand and agree that the offer(s) set forth above, subject to the
satisfaction of the applicable conditions set forth in the Credit Agreement,
irrevocably obligate(s) us to make the Money Market Loan(s) for which any
offer(s) [is] [are] accepted, in whole or in part (subject to the last sentence
of Section 2.03(c)(i) of the Credit Agreement).

                                         Very truly yours,

                                         [Name of Bank]

Dated:                                    By:
                                              -----------------------
------------------------                       Authorized

Officer

------------------------

-----------------

(1)  As specified in the related Money Market Quote Request.

(2)  The principal amount bid for each Stated Maturity Date may not exceed the
     principal amount requested. Money Market Quotes must be made for at least
     $10,000,000 or a larger integral multiple of $5,000,000.

(3)  The Stated Maturity Dates are subject to Section 2.03(b)(iii).

(4)  Subject to Section 2.03(c)(ii)(C).

                                      106
<PAGE>   113

                                  SCHEDULE 4.08

Updated February 1, 2000

                          DOMESTIC CORPORATE STRUCTURE
                                       OF
                            FLOWERS INDUSTRIES, INC.

<TABLE>
<CAPTION>

F:\TAX\DATA\AMIFILES\STRUCTUR.DOC                                                DATE AND STATE            FEDERAL
                                                                                 OF INCORPORATION            I.D.#
                                                                                 ----------------            -----

<S>                                                                              <C>        <C>           <C>
FLOWERS INDUSTRIES, INC.                                                         11/03/87   (GA           58-0244940

  S - Flowers Investments, Inc.                                                  04/07/97   (GA)          58-2343711

  S - Flowers Bakeries Brands, Inc.                                              05/26/98   (SC)
     ss - Flowers Bakeries, Inc.                                                 05/27/98   (GA)          59-3483283
         sss - Flowers Baking Company of Florida, Inc.
                  ssss - Flowers Baking Company of Miami, Inc.                   08/05/77   (FL)          59-1758784
                           p - Miami, Florida
                  ssss - Flowers Baking Company of Jacksonville, Inc.            01/03/77   (FL)          59-1718773
                           p - Jacksonville, Florida
                  ssss - Flowers Baking Co. of Bradenton, Inc.                   10/30/84   (FL)          58-1723981
                           p - Bradenton, Florida
         sss - Flowers Baking Company of Thomasville, Inc.                       06/30/78   (GA)          58-1330782
                           p - Thomasville, Georgia
         sss - Flowers Baking Co. of Villa Rica, Inc.                            11/23/93   (GA)          58-2109227
                           p - Villa Rica, Georgia
         sss - Flowers Baking Company of Opelika, Inc.                           06/28/78   (AL)          63-0752595
                           p - Opelika, Alabama
         sss - Hardin's Bakery, Incorporated                                     11/12/46   (AL)          63-0252356
                           p - Tuscaloosa, Alabama
         sss - Midtown Bakery, Inc.                                              10/22/96   (AL)          58-2272791
                           p - Atlanta, Georgia
         sss - Home Baking Company, Inc.                                         01/01/54   (AL)          63-0334970
                           p - Birmingham, Alabama
         sss - Huval Bakery, Incorporated                                        02/12/76   (LA)          59-1686698
                           p - Lafayette, Louisiana
                  ssss - Bunny Bread, Inc.                                       09/28/65   (LA)          72-0500448
                           p - New Orleans, Louisiana
                           sssss - Flowers Baking Co. of Baton Rouge, Inc.       07/20/87   (LA)          58-1740889
                           p - Baton Rouge, Inc.
         sss - Flowers Baking Company of Jamestown, Inc.                         07/02/84   (NC)          58-1567728
                           p - Jamestown, North Carolina
</TABLE>

                                      107
<PAGE>   114

<TABLE>

<S>                                                                              <C>        <C>           <C>
         sss - Franklin Baking Co.                                               1954       (NC)           56-0605051
                           p - Goldsboro, North Carolina
         sss - Flowers Baking Company of Lynchburg, Inc.                         12/13/77   (VA)           58-1309193
                           p - Lynchburg, Virginia
         sss - Flowers Baking Company of Norfolk, Inc.                           07/03/78   (VA)           58-1330779
                           p - Norfolk, Virginia
         sss - Flowers Baking Company of Morristown, Inc.                        07/15/80   (TN)           58-1403615
                           p - Morristown, Tennessee
         sss - Flowers Baking Company of Memphis, Inc.                           10/14/99   (TN)           62-1799669
                           p - Memphis, Tennessee
         sss - Schott's Bakery, Inc.                                             03/07/24   (TX)           74-0886850
                           p - Houston, Texas
         sss - Flowers Baking Company of West Virginia, Inc.                     06/26/85   (WV)           55-0654747
                           p - Bluefield, West Virginia
                  ssss - The Donut House, Inc.                                   11/17/69   (WV)           55-0517749
                           p - Charleston, West Virginia
         sss - Flowers Baking Company of Texas, Inc. (h)                         11/05/81   (TX)           58-1453104
                  ssss - Flowers Baking Company of Tyler, Inc.                   12/17/91   (GA)           75-1786865
                           p - Tyler, Texas
                           sssss - ButterKrust Bakery, Inc.                      09/21/94   (TX)           74-2720708
                           p - San Antonio, Texas
                  ssss - El Paso Baking Co., Inc.                                03/10/93   (TX)           74-2657988
                           (fna Flowers Distributing Co. of El Paso, Inc.)
                           p - El Paso, Texas
                           sssss - El Paso Baking Co. de Mexico, S.A. de C.V.    09/00/94   (Mexican Corp.)
                  ssss - San Antonio Baking Co., Inc.                            01/06/97   (TX)           74-2830409
                  ssss - Austin Baking Co., Inc.                                 02/03/97   (TX)           74-2830410
                  ssss - Corpus Christi Baking Co., Inc.                         02/18/97   (TX)           74-2830414
         sss - Flowers Baking Company of Fresno, Inc.                            11/10/86   (CA)           77-0130552
         sss - Flowers Baking Company of Texarkana, Inc.                         11/10/86   (AR)           71-0638493
                           p - Texarkana, Arkansas
         sss - Holsum Baking Company                                             03/27/46   (AR)           71-0209537
                           p - Pine Bluff, Arkansas
         sss - Shipley Baking Company                                            10/01/96   (AR)           71-0254043
                           p - Fort Smith, Arkansas
         sss - Flowers Baking Co. of Ohio, Inc.                                  01/02/96   (OH)           55-0747366
         sss - Storck Baking company f/n/a Flowers Acquisition Company           09/21/95   (WV)           55-0745937
                           p - Parkersburg, West Virginia
         sss - Flowers Baking Company of Memphis, Inc.                           10/14/99   (TN)           62-1799669
                           p - Memphis, Tennessee

S - Mrs. Smith's Bakeries, Inc.                                                  04/28/98   (GA)           58-2392473
     ss - Mrs. Smith's Bakery of Suwanee, Inc.                                   06/14/99   (GA)           8-2480300
     ss - European Bakers, Ltd.                                                  11/30/74   (GA)           58-0944858
                           p - Tucker, Georgia
</TABLE>

                                      108
<PAGE>   115

<TABLE>

<S>                                                                              <C>        <C>           <C>
         sss - Aunt Fanny's Bakery, Inc.                                         03/28/95   (GA)           58-2168689
                           p -  Atlanta, Georgia
     ss - Dan-Co Bakery, Inc.                                                    01/31/92   (GA)           58-1989098
                           p - Forest Park, Georgia
         sss - Daniels Home Bakery of North Carolina, Inc.                       04/13/93   (NC)           58-2023526
                           p - Lumberton, North Carolina
     ss - Table Pride, Inc.                                                      05/30/89   (GA)           58-1846861
                           p - Chamblee, Georgia
     ss - Mrs. Smith's Sales Support Group, Inc.(d)                              06/02/89   (GA)           58-1846859
         sss - Mrs. Smith's Foil Co., Inc.                                       02/02/98   (GA)           23-2947803
                           p - Pottstown, PA
     ss - Broad Street Bakeries, Inc. (d)                                        02/07/90   (GA)           58-1910488
     ss - Special Touch Bakeries, Inc. (d)                                       02/10/90   (GA)           58-1910485
     ss - Flowers Specialty of Suwanee, Inc. (d)                                 08/16/94   (GA)           58-2125051
     ss - Mrs. Smith's Frozen Bakery Distributors, Inc. (d)                      08/16/94   (GA)           58-2125054
                           p - Suwanee, Georgia
         sss - Mrs. Smith's Bakeries of Pennsylvania, Inc.                       04/30/96   (GA)           58-2236380
                           p - Pottstown, PA
         sss - Allied Frozen Food Services, Inc. (d)                             09/24/98   (NY)           13-3967930
     ss - Flowers Specialty Foods of Montgomery, Inc.                            03/31/89   (AL)           63-0998333
                           p - Montgomery, Alabama
     ss - Flowers Baking Company of South Carolina, Inc.                         08/21/69   (SC)           57-0518564
                           p - Spartanburg, South Carolina
     ss - Flowers Baking Company of Fountain Inn, Inc.                           12/17/76   (SC)           57-0641441
                           p - Fountain Inn, South Carolina
     ss - Flowers Baking Company of Chattanooga, Inc.                            12/30/77   (TN)           58-1333171
                           p - Crossville, Tennessee
     ss - Flowers Fresh Bakery Distributors, Inc. (d)                            08/01/94   (TN)           62-1574151
     ss - Aunt Fanny's Bakery of Pennsylvania, Inc.                              08/14/95   (PA)           25-1770720
                           p - North East, Pennsylvania
     ss - Mrs. Smith's Bakeries of London, Inc.                                  05/31/83   (KY)           61-1027735
                           p - London, Kentucky
         sss - Bluebird Brands, Inc. (d)                                         02/10/90   (GA)           31-1307421
     ss - Pies, Inc.,                                                            07/30/91   (MN)           58-1953616
                           p - Chaska, Minnesota
         sss - Mrs. Smith's Brands, Inc.                                                    (SC)           57-1069445
     ss - Stilwell Foods, Inc.                                                   04/01/74   (OK)           73-0962847
                           p - Stilwell, Oklahoma
         sss - Stilwell Foods of Texas, Inc. (i)                                 12/18/91   (OK)           74-1791072
                           (f/k/a Rio Grande Foods, Inc.)
                           p - McAllen, Texas
         sss - Stilwell Foods Manpower of Texas, Inc.                            12/27/82   (TX)           73-1167155
                           (f/k/a Rio Grande Foods Manpower)
     ss - Flowers Holding Co., Inc.
</TABLE>

                                      109
<PAGE>   116

                          DOMESTIC CORPORATE STRUCTURE
                                       OF
                            FLOWERS INDUSTRIES, INC.

S        - subsidiary of Flowers Industries, Inc.
ss       - subsidiary of a subsidiary
sss      - subsidiary of a subsidiary of a sub subsidiary
ssss     - subsidiary of a subsidiary of a subsidiary of a subsidiary
sssss    - subsidiary of a subsidiary of a subsidiary of a subsidiary of a
           subsidiary
p        - location
(h)      - holding company
(i)      - inactive
(d)      - distribution

                                      110<PAGE>   1
                                                                  EXHIBIT 10.15

                             MASTER LEASE AGREEMENT

                          Dated as of October 20, 1995

                                    Between
                         WACHOVIA LEASING CORPORATION,
                                 as the Lessor,

                                      and

                           FLOWERS INDUSTRIES, INC.,
                                 as the Lessee

<PAGE>   2

ADDRESSES OF PARTIES:

Wachovia Leasing Corporation                Flowers Industries, Inc.
301 North Main Street                       200 U.S. Highway 10 South
P.O. Box 3099                               P. O. Box 1338
Winston-Salem, NC 27150                     Thomasville, GA 31799
ATTENTION: Jonathan E. Head                 ATTENTION: C. Martin Wood, III

         THIS LEASE HAS BEEN MANUALLY EXECUTED IN COUNTERPARTS NUMBERED
         CONSECUTIVELY FROM 1 TO 2. TO THE EXTENT, IF ANY, THAT THIS LEASE
         CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM
         COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO
         SECURITY INTEREST IN THIS LEASE MAY BE CREATED THROUGH THE TRANSFER OR
         POSSESSION OF ANY COUNTERPART OF THIS LEASE OTHER THAN COUNTERPART
         NUMBER 1.

                                    This is Counterpart Number__________

<PAGE>   3

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     PAGE

<S>                                                                                  <C>
Section 1.     Certain Defined Terms.................................................  1

Section 2.     Lease of Equipment....................................................  1

Section 3.     Payments..............................................................  2
               (a)     Interim Rent..................................................  2
               (b)     Basic Rent....................................................  3
               (c)     Final Rent Payment............................................  4
               (d)     Supplemental Rent.............................................  4
               (e)     Computations..................................................  5
               (f)     Absolute Net Lease............................................  5

Section 4.     [ RESERVED ]..........................................................  6

Section 5.     Agency Agreement......................................................  6

Section 6.     Title to Remain in the Lessor.........................................  7

Section 7.     Maintenance of the Equipment; Operations..............................  7

Section 8.     Modifications.........................................................  9

Section 9.     Further Assurances.................................................... 10

Section 10.    Compliance with Governmental Requirements and
                       Insurance Requirements: Related Contracts..................... 10

Section 11.    Condition and Use of Equipment; Quiet
               Enjoyment............................................................. 10

Section 12.    Liens................................................................. 12

Section 13.    Permitted Contests.................................................... 13

Section 14.    Insurance, etc........................................................ 13

Section 15.    Termination; Cancellation; Purchase Option............................ 16
</TABLE>

                                       i

<PAGE>   4

<TABLE>

<S>                                                                                   <C>
Section 16.    Transfer of Title on Removal of Equipment;
                       Expenses of Transfer.......................................... 19

Section 17.    Events of Default and Remedies........................................ 21

Section 18.    Change in the Lessee's Name or Structure.............................. 25

Section 19.    Inspection; Right to Enter Premises of the
                       Lessee........................................................ 25

Section 20.    Right to Perform the Lessee's Covenants............................... 25

Section 21.    Participation by Co-Lessees or Sublessees;
                       Participations by Lessor...................................... 26

Section 22.    Notices............................................................... 27

Section 23.    Amendments and Waivers................................................ 28

Section 24.    Severability.......................................................... 28

Section 25.    Federal Income Tax Considerations..................................... 28

Section 26.    Other Provisions...................................................... 28

Section 27.    Yield Protection and Illegality....................................... 30
               (a)     Basis for Determining Interest Rate
                       Inadequate or Unfair.......................................... 30
               (b)     Illegality.................................................... 32
               (c)     Increased Cost and Reduced Return............................. 32
               (d)     Payments and Computations..................................... 34
               (e)     Compensation.................................................. 34

Section 28.    Conditions Precedent.................................................. 35
               (a)     Closing; Conditions Precedent to
                       Effectiveness of this Lease................................... 35
               (b)     Conditions to Commencement of Lease for each
                       Phase......................................................... 36
               (c)     Conditions to addition of any Equipment in
                       each Phase.................................................... 36

Section 29.    The Lessee's Representations and Warranties........................... 38
</TABLE>

                                       ii

<PAGE>   5

<TABLE>

<S>                                                                                   <C>
               (a)  Corporate Existence and Power.................................... 38
               (b)  Corporate and Governmental Authorization......................... 38
               (c)  Binding Effect................................................... 39
               (d)  No Litigation.................................................... 39
               (e)  Compliance with Laws............................................. 39
               (f)  Ownership of Property; Liens..................................... 39
               (g)  No Default....................................................... 39
               (h)  Full Disclosure.................................................. 39
               (i)  Capital Stock.................................................... 40
               (j)  Margin Stock..................................................... 40
               (k)  Annual Financial Statements...................................... 40

Section 30.    Covenants............................................................. 40
               (a)     Information................................................... 40
               (b)     Maintenance and Inspection of Property,
                       Books and Records............................................. 42
               (c)     Maintenance of Existence...................................... 42
               (d)     Consolidations, Mergers and Sales of Assets................... 42
               (e)     Dissolution................................................... 43
               (f)     Use of Proceeds............................................... 43
               (g)     Compliance with Laws.......................................... 43
               (h)     Insurance..................................................... 43
               (i)     Change in Fiscal Year......................................... 44
               (j)     Maintenance of Property....................................... 44
               (k)     Environmental Notices......................................... 44
               (l)     Environmental Matters......................................... 44
               (m)     Environmental Release......................................... 44
               (n)     Transactions with Affiliates.................................. 45
               (o)     Further Assurances............................................ 45
               (p)     Liens, Etc.................................................... 45
               (q)     Negative Pledge............................................... 45
               (r)     Guarantees.................................................... 47
               (s)     ERISA......................................................... 47

Section 31.    Miscellaneous......................................................... 47
               (a)     Entire Agreement.............................................. 47
               (b)     No Personal Liability......................................... 48
               (c)     Interpretation................................................ 48
               (d)     Governing Law................................................. 48
               (e)     No Third Party Beneficiaries.................................. 48
               (f)     Counterparts.................................................. 48
               (g)     Waiver of Jury Trial.......................................... 48
</TABLE>

                                      iii

<PAGE>   6

<TABLE>

<S>                                                                                   <C>
               (h)     Invalidity..................................................   48
               (i)     Usury.......................................................   49
               (j)     Time of the Essence.........................................   50
               (k)     Indemnification.............................................   50

SCHEDULE 1(b)                            Defined Terms.............................   56

SCHEDULE 3(b)                            Scheduled Amounts.........................   76

SCHEDULE 14                              Insurance Requirements....................   77

EXHIBIT A                                ACQUISITION, AGENCY, INDEMNITY
                                         AND SUPPORT AGREEMENT.....................   80

EXHIBIT B                                Certificate of Acceptance.................  102

EXHIBIT C                                Lease Supplement..........................  106

EXHIBIT D                                FORM OF LEGAL OPINION OF
                                         ASSISTANT GENERAL COUNSEL
                                         OF LESSEE.................................  111

EXHIBIT E                                PROGRESS PAYMENT AGREEMENT................  115

EXHIBIT F                                FORM OF APPROVED SUBLEASE.................  118
</TABLE>

                                       iv

<PAGE>   7

         This Master Lease Agreement dated as of October 20, 1995, (as the same
may be amended, modified or supplemented from time to time, this "Lease") is
between WACHOVIA LEASING CORPORATION, a North Carolina corporation (together
with its successors and permitted assigns, the "Lessor"), and FLOWERS
INDUSTRIES, INC., a Georgia corporation (together with its successors and
permitted assigns, the "Lessee").

                                    RECITALS

         WHEREAS, pursuant to the Agency Agreement, Lessor has agreed
to acquire Equipment for each Phase and

         WHEREAS, subject to the terms and conditions of this Lease, the Lessee
desires to lease from the Lessor the Equipment for each Phase, to be located at
the Applicable Site therefor, as described in the Lease Supplements for such
Phase, beginning on the Phase Commencement Date therefor, for the purpose of
occupying and using the Equipment for each Phase at the Applicable Site
therefor in accordance with the terms and conditions set forth in this Lease.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Lessor and the Lessee agree as follows:

         Section 1.        Certain Defined Terms.

                  (a)   In this lease, the terms "Lease," "Lessee," and
"Lessor," shall have the meanings indicated above.

                  (b)   As used in this Lease, all other capitalized terms
shall have the meanings assigned such terms in Schedule 1(b) attached hereto
and by reference made a part hereof.

         Section 2.        Lease of Equipment.

                  (a)   During the term of and subject to the terms and
conditions of this Lease, the Lessor hereby leases to the Lessee, and the
Lessee hereby leases from the Lessor, the Equipment for each Phase for the
Lease Term for such Phase to be used (i) as provided in the Agency Agreement
until the Phase Completion Date

<PAGE>   8

for such Phase and (ii) for and only for a Permitted Use with respect to the
portion of the Lease Term surviving the Phase Completion Date for such Phase.

                  (b)   Unless earlier terminated in accordance with the other
provisions hereof, including without limitation, Sections 15 and 17, this Lease
shall terminate as to each Phase (i) on the Scheduled Lease Termination Date
for such Phase or (ii) on the occurrence of a Non-Completion Event as to such
Phase.

                  (c)   Not less than twelve (12) months prior to the Scheduled
Lease Termination Date for each Phase, the Lessee shall notify the Lessor in
writing which of the options under Section 15(a)(ii) of this Lease the Lessee
intends to exercise for such Phase. In the event the Lessee fails to give
timely written notice to the Lessor on or before the date herein provided for
any Phase, the Lessee shall be deemed to have elected to purchase the Equipment
for such Phase on the Lease Termination Date for such Phase, for the
Termination Value for such Phase. Such election will be consummated upon the
Scheduled Lease Termination Date for such Phase unless the Lessee thereafter
elects to exercise its option under Section 15(c) of this Lease or a
Cancellation Event occurs.

                  (d)   If the Lessor declares a Non-Designated Event of
Default, the Lessee shall give to the Lessor written notice within 2 Business
Days which of the options under Section 15(a)(ii) of this Lease the Lessee
intends to exercise for all Phases upon the Lease Termination Date. In the
event the Lessee fails to give timely written notice to the Lessor on or before
the date herein provided, the Lessee shall be deemed to have elected to
purchase the Equipment for all Phases on the Lease Termination Date for the
Termination Value for all Phases.

         Section 3.        Payments.

                  (a)   Interim Rent. For each Phase, during the period
commencing on the Phase Commencement Date and ending on the Phase Completion
Date for such Phase, Interim Rent with respect to such Phase shall accrue on
Equipment Cost during each Interim Rental Period at a rate per annum equal to
the LIBO Rate prevailing on the first day of such Interim Rental Period plus 45
basis points; provided, that if there is less than one month remaining after
the end of any Interim Rental Period until the Phase Completion Date for such
Phase, Interim Rent for the final Interim Rental Period

                                       2

<PAGE>   9

shall instead be determined on the basis of 80% of the Base Rate. Interim Rent
shall be paid in arrears on the last day of the Interim Rental Period with
respect thereto. In the event any Equipment Cost on which interest accrued
based on the LIBO Rate is prepaid other than on the last day of the Interim
Rental Period with respect thereto (including by reason of the occurrence of a
Lease Termination Date for any reason), the Lessee shall compensate the Lessor
for any funding losses incurred by it as a result of such prepayment. On the
Phase Completion Date for each Phase, all Soft Costs incurred during the period
from the Phase Commencement Date through the Phase Completion Date for such
Phase shall be capitalized and added to Equipment Cost for such Phase;
provided, that in no event shall the aggregate Equipment Cost for all Phases
exceed $50,000,000, and to the extent any such capitalization of Soft Costs
would cause the aggregate Equipment Cost for all Phases to exceed $50,000,000,
the amount of the excess shall be payable to the Lessor on the Phase Completion
Date on which such excess occurs. In the event any Vendor requires any advance
payments, progress payments or full payments prior to the Lease Addition Date
of the Equipment proposed to be added to the Lease for any Phase, the Lessee
shall execute and deliver to the Lessor a Progress Payment Agreement for such
Phase, and the Lessor will make available amounts pursuant thereto for such
purpose. For any Equipment which is the subject of any payments made by the
Lessor under a Progress Payment Agreement for any Phase, unpaid Additional Rent
under such Progress Payment Agreement with respect to such Equipment shall be
capitalized and, together with the amount of such payments made by the Lessor
with respect to such Equipment, shall be added to and constitute part of the
Equipment Cost for such Phase.

                  (b)   Basic Rent.

                        (i)   Floating Rate Payment Without Election; Election
         and Election Period. For each Phase, if the Lessee has not made an
         Election within the Election Period pursuant to the provisions and
         requirements of this Section 3(b)(i), after the Phase Completion Date
         for each Phase, the Lessee's Basic Rent during the Lease Term for such
         Phase shall be payable for each Rental Period in arrears on the Rent
         Payment Date for such Rental Period in an amount equal to the sum of
         (A) the amount equal to the percentage set forth in Schedule 3(b) for
         such Rental Period (as it may be modified pursuant hereto as a result
         of an Approved Appraisal), times the Equipment Cost (the "Scheduled
         Amount") as to such Phase (the "Scheduled Payment") plus (B) an amount
         accruing on the

                                       3

<PAGE>   10

         Unrecovered Equipment Cost as to such Phase at the Floating Rate for
         such Rental Period (the "Floating Rate Payment"). In the event any
         Scheduled Amount or other amount of Equipment Cost based on the LIBO
         Rate is prepaid other than on the last day of the Rental Period with
         respect thereto (including by reason of the occurrence of a Lease
         Termination Date for any reason) the Lessee shall compensate the
         Lessor for any funding losses incurred by it as a result of such
         prepayment. Schedule 3(b) also sets forth the Estimated Residual as to
         each Phase as of the end of each Rental Period. The Lessee agrees that
         the Lessor reserves the right to modify the Estimated Residual or the
         percentage of Equipment Cost for determining the Scheduled Amount, or
         both, as to any Rental Period for the Equipment for any Phase as a
         result of the receipt of an Approved Appraisal pursuant to the Agency
         Agreement. With respect to any Phase, the Lessee shall have the option
         to convert the Basic Rent for such Phase within the Election Period
         from a Floating Rate Payment basis to a Fixed Rate Payment basis (any
         exercise of such option pursuant to the provisions and requirements of
         this Section 3(b)(i) for any Phase being an "Election" for such
         Phase). The "Election Period" with respect to each Phase shall
         commence on the Phase Completion Date for such Phase and terminate on
         the last day of the Acquisition Period. Each Election shall be made by
         written notice received not less than 7 days prior to the effective
         date of such Election (and not less than 7 days prior to the end of
         the relevant Election Period).

                        (ii)  Fixed Rate Payment With Election. For each
         Phase, if the Lessee has made an Election within the Election Period
         pursuant to the provisions and requirements of Section 3(b)(i), after
         the Phase Completion Date for each Phase, the Lessee's Basic Rent
         during the Lease Term for such Phase shall be payable for each Rental
         Period in arrears on the Rent Payment Date for such Rental Period in
         an amount equal to the sum of (A) the Scheduled Payment as to such
         Phase for such Rental Period plus (B) an amount accruing on the
         Unrecovered Equipment Cost as to such Phase at the Fixed Rate for such
         Rental Period (the "Fixed Rate Payment"). On the first Rent Payment
         Date after the Lessee makes an Election for a qualifying Phase, the
         Lessee shall make, if applicable, a Basic Rent payment consisting of
         the Scheduled Payment for such Phase plus a proportionate Floating
         Rate Payment and Fixed Rate Payment for such Phase, and the Lessee
         shall compensate the Lessor for any funding losses incurred by it as

                                       4

<PAGE>   11

         a result of such change from a Floating Rate Payment to a Fixed Rate
         Payment prior to the end of the Rental Period.

                  (c)   Final Rent Payment. In addition to Interim Rent Basic
Rent and Supplemental Rent, on the Lease Termination Date for each Phase
(whether on the Scheduled Lease Termination Date or due to the occurrence of a
Cancellation Event or a Termination Event or otherwise), the Lessee shall pay
to Lessor the Final Rent Payment for such Phase.

                  (d)   Supplemental Rent. In addition to Interim Rent, Basic
Rent and the Final Rent Payment, the Lessee will also pay to the Lessor, from
time to time, upon demand by the Lessor, as additional rent ("Supplemental
Rent"), the following (but without duplication of any amounts included in the
calculation of Rent):

                        (i)   all out-of-pocket costs and expenses reasonably
         incurred by the Lessor in connection with the preparation,
         negotiation, execution, delivery, performance and administration of
         this Lease and the other Operative Documents, including, but not
         limited to, the following: (A) fees and expenses of the Lessor,
         including, without limitation, reasonable attorneys' fees and expenses
         and the fees and expenses for the Approved Appraisal and the Related
         Contracts for each Phase; (B) all other amounts, including, without
         limitation, fees, indemnities, expenses, compensation in respect of
         increased costs of any kind or description payable under this Lease or
         any other Operative Document; (C) all yield maintenance, capital
         adequacy and other costs contemplated under Section 27 of this Lease
         and (D) all out-of-pocket costs and expenses incurred by the Lessor
         after the date of this Lease (including, without limitation,
         reasonable attorneys' fees and expenses and other expenses and
         disbursements reasonably incurred) associated with (1) negotiating and
         entering into, or the giving or withholding of, any future amendments,
         supplements, waivers or consents with respect to this Lease; (2) any
         Loss Event, Casualty Occurrence or termination of this Lease; and (3)
         any Default or Event of Default and the enforcement and preservation
         of the rights or remedies of the Lessor under this Lease and the other
         Operative Documents and (4) all reasonable costs and expenses incurred
         by the Lessor or any of its Affiliates in initially selling
         participations in this Lease, including, without limitation, the
         related reasonable fees and out-of-pocket expenses of counsel for the
         Lessor or its Affiliates, travel expenses, duplication and printing
         costs

                                       5

<PAGE>   12

         and courier and postage fees, and excluding any fees paid to
         Participants purchasing such a participation; and

                        (ii)  all other amounts that the Lessee agrees herein
         to pay other than Interim Rent, Basic Rent, the Final Rent Payment and
         amounts described in clause (i) above.

                  (e)   Computations. All computations of Interim Rent and Basic
Rent shall be made by the Lessor on the basis of a year of 360 days (or, in the
case of computations based on the Prime Rate, 365/366 days), in each case for
the actual number of days (including the first day but excluding the last day)
occurring in the Interim Rental Period or Rental Period for which such Interim
Rent or Basic Rent payments are payable. Whenever any payment hereunder shall
be stated to be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or yield;
provided, however, that if such extension would cause payment of Interim Rent
or Basic Rent to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.

                  (f)   Absolute Net Lease. This Lease is an absolute net lease,
and Rent and all other sums payable by the Lessee hereunder shall be paid
without notice except as otherwise expressly provided herein, and the Lessee
shall not be entitled to any abatement, reduction, setoff, counterclaim,
defense or deduction with respect to any Rent or other sums payable hereunder.
The obligations of the Lessee to pay Rent and all other sums payable hereunder
shall not be affected by reason of: (i) any damage to, or destruction of, the
Equipment or any part thereof by any cause whatsoever (including, without
limitation, fire, casualty or act of God or enemy or any other force majeure
event); (ii) any condemnation, including, without limitation, a temporary
condemnation of the Equipment or any portion thereof; (iii) any prohibition,
limitation, restriction or prevention of the Lessee's use, occupancy or
enjoyment of the Equipment or any part thereof by any Person (other than by the
Lessor in violation of this Lease); (iv) any matter affecting title to the
Equipment or any portion thereof (other than a defect in title caused by or
through the Lessor, other than by the Lessee as the agent of the Lessor); (v)
any loss of possession by the Lessee of the Equipment or any portion thereof,
by reason of title paramount or otherwise (other than by the Lessor in
violation of this Lease); (vi) any default by the Lessor hereunder or under any
other Operative Document; (vii) the invalidity or unenforceability of any
provision hereof or the

                                       6

<PAGE>   13

impossibility or illegality of performance by the Lessor or the Lessee or both;
(viii) any action of any Governmental Authority; or (ix) any other Loss Event,
Casualty Occurrence or other cause or occurrence whatsoever, whether similar or
dissimilar to the foregoing. The Lessee shall remain obliged under this Lease
in accordance with its terms and shall not take any action to terminate,
rescind or avoid this Lease, except as expressly provided in Section 15
notwithstanding any bankruptcy, insolvency, reorganization, liquidation,
dissolution or other proceeding affecting the Lessor or any action with respect
to this Lease which may be taken by any trustee, receiver or liquidator or by
any court. The Lessee waives all rights to terminate or surrender this Lease,
except as expressly provided in Section 15, or to any abatement or deferment of
Rent or other sums payable hereunder. The Lessee hereby waives any and all
rights now or hereafter conferred by law or otherwise to modify or to avoid
strict compliance with its obligations under this Lease. All payments made to
the Lessor hereunder as required hereby shall be final and irrevocable, and the
Lessee shall not seek to recover any such payment or any part thereof for any
reason whatsoever, absent manifest error.

                  (g)   All payments by the Lessee pursuant to this Lease shall
be made by the Lessee to the Lessor. All such payments required to be made to
the Lessor shall be made not later than 12:00 noon, Atlanta, Georgia time, on
the date due, in immediately available funds, to such account with the Lessor
as it shall specify from time to time by notice to the Lessee. Whenever any
payment to be made shall otherwise be due on a day which is not a Business Day,
except as otherwise expressly provided herein, such payment shall be made on
the next succeeding Business Day and such extension shall be included in
computing Rent, interest, yield and fees, if any, in connection with such
payment.

                  (h)   The Lessee shall pay on demand to the Lessor interest at
the Default Rate on all amounts payable by the Lessee to the Lessor hereunder
or any of the other Operative Documents, from the due date thereof until paid
in full.

         Section 4.     [ RESERVED ].

         Section 5.     Agency Agreement.  The Lessee is entering into the
Agency Agreement with the Lessor pursuant to which the Lessee will act as the
Acquisition Agent for the Lessor in causing the acquisition and installation of
the Equipment and the performance of all of the Lessor's obligations to acquire
the Equipment,

                                       7

<PAGE>   14

including negotiation and performance of all Related Contracts, obtaining all
Applicable Permits and complying with all Governmental Requirements (including
all Environmental Requirements) relating to the Equipment. Upon funding
pursuant to the Agency Agreement, title to all Equipment purchased with such
funding shall be and remain in the Lessor and, commencing with the Phase
Commencement Date for the Phase to which such Equipment relates, such Equipment
shall be subject to the terms and conditions of this Lease. The Equipment and
all components thereof shall be purchased, manufactured, constructed, improved,
renovated, assembled or installed, as applicable, in accordance with Related
Contracts entered into by the Lessee pursuant to the Agency Agreement.

         Section 6.     Title to Remain in the Lessor. The Lessor shall own
100% of the legal interest in the Equipment, including all accessions to and
replacements of the Equipment added or effected from time to time by the
Lessee, which shall be and become part of the Equipment, Property of the Lessor
and subject to the terms of this Lease; provided that the Lessor's interest in
any portion of the Equipment that is replaced by the Lessee pursuant to and as
permitted by the terms of this Lease shall be deemed released from this Lease
and thereupon become the Property of the Lessee automatically, without further
action by the Lessor, and the Lessor shall perform all acts and execute all
documents that the Lessee reasonably requests to give effect to the foregoing
at the expense of the Lessee, including the execution and delivery of bills of
sale and other documents of transfer. This Lease shall not give or grant to the
Lessee any right, title or interest in or to the Equipment, except the rights
expressly conferred by this Lease. The Equipment will remain personal property
and will not be installed in any manner that will prevent it from being readily
removed in a manner consistent with normal industry practices, it being the
intent of the parties that the Equipment is not to constitute or be deemed to
be fixtures or real property under applicable law or any lease governing the
Applicable Site. The Equipment for each Phase will be marked to disclose the
interest of the Lessor to the extent relevant under applicable law or to the
extent deemed appropriate by the Lessor.

         Section 7.     Maintenance of the Equipment; Operations.

                  (a)   The Lessee shall, and it shall require and cause any and
all employees, contractors, subcontractors, agents, representatives,
affiliates, consultants and occupants at the

                                       8

<PAGE>   15

Lessee's own cost and expense to: (i) cause the Equipment for each Phase to be
maintained in all material respects in good operating order, repair and
condition, in accordance with prudent industry practice and any applicable
manufacturer's or supplier's manuals or warranties, subject to normal wear and
tear, and take all action, and make all changes and repairs, structural and
non-structural, foreseen and unforeseen, ordinary and extraordinary, which are
required pursuant to any Governmental Requirement or Insurance Requirement at
any time in effect to assure full compliance therewith in all material
respects; and (ii) cause the Equipment for each Phase to continue to have at
all times, in all material respects, and in material compliance with all
applicable Governmental Requirements and Insurance Requirements, the capacity
and functional ability to perform, on a continuing basis (subject to normal
interruption in the ordinary course of business for maintenance, inspection,
service, repair and testing) and in commercial operation, the functions for
which it was designed and to be utilized commercially for the Permitted Use.

                  (b)   The Lessee shall, and it shall require and cause any and
all employees, contractors, subcontractors, agents, representatives,
affiliates, consultants and occupants at the Lessee's own cost and expense to,
promptly replace, or cause to be replaced, the Equipment for each Phase or
parts thereof which may from time to time be added to or substituted as
replacements for parts of the Equipment for such Phase and which may from time
to time become worn out, lost, stolen, destroyed, seized, confiscated, damaged
beyond repair, obsolete or permanently rendered unfit for use for any reason
whatsoever. All accessions and replacement parts shall be free and clear of all
Liens other than Permitted Liens, and, except for temporary replacement parts
utilized pending installation of permanent replacement parts, shall be of a
type customarily used in the industry at such time for such purpose, shall be
in as good operating condition as, and shall have a utility and useful life at
least equal to, the parts replaced (assuming such replaced parts were in the
condition and repair required to be maintained by the terms hereof) and shall
have a value at least equal to the parts replaced (assuming such replaced parts
were in the condition and repair required to be maintained by the terms
hereof).

                  (c)   Notwithstanding the provisions of Section 8 and the
foregoing provisions of this Section 7, the Lessee shall not (except as may be
required by any Governmental Requirement) remove, replace or alter any portion
of the Equipment for any

                                       9

<PAGE>   16

Phase or affix or place any accessory, equipment, part or device on any portion
of the Equipment if such removal, replacement, alteration or addition would
impair the originally intended function or use of the Equipment for such Phase
so as to materially reduce the value of the Equipment taken as a whole, or
materially decrease the estimated useful life of the Equipment for such Phase.

                  (d)   The Lessor shall not be required in any way to maintain,
repair or rebuild the Equipment for any Phase or any portion thereof and the
Lessee waives any right it may now or hereafter have to make any repairs at the
expense of the Lessor pursuant to any Governmental Requirement at any time in
effect or otherwise.

                  (e)   The Lessee shall, and it shall require and cause any and
all employees, contractors, subcontractors, agents, representatives,
affiliates, consultants and occupants at the Lessee's own cost and expense to:
(i) comply with all applicable Environmental Requirements with regard to the
Equipment for each Phase and all parts thereof, except where the failure to so
comply would not have or cause a Material Adverse Effect; and (ii) use, employ,
process, emit, generate, store, handle, transport, dispose of and/or arrange
for the disposal of, any and all Hazardous Materials in, on or, directly or
indirectly, related to or in connection with the Equipment for each Phase or
any part thereof in a manner consistent with prudent industry practice and in
compliance with any applicable Environmental Requirement, except where the
failure to so comply would not have or cause a Material Adverse Effect. The
Lessor and the Lessee hereby acknowledge and agree that the Lessee's
obligations hereunder with respect to Environmental Requirements are intended
to bind the Lessee with respect to matters and conditions involving the
Equipment for each Phase or any part thereof.

         Section 8.     Modifications.

                  (a)   Subject to the terms of Section 8(b), the Lessee shall
have the right to make modifications, alterations, renovations or improvements
to the Equipment for any Phase so long as such modifications, alterations,
renovations or improvements do not (except as may be required by any
Governmental Requirement) (i) materially reduce the value of the Equipment for
such Phase as a whole; (ii) materially and adversely affect the capacity and
performance of the Equipment for such Phase on a continuing basis in commercial
operation of

                                       10

<PAGE>   17

the function for which the Equipment for such Phase was designed; or (iii)
materially and adversely affect the estimated useful life of the Equipment for
such Phase. Within ten (10) Business Days of the end of each calendar quarter,
an Authorized Officer of the Lessee shall deliver to the Lessor a schedule
certifying to the Lessor's satisfaction: (x) the nature of the repairs,
replacements, modifications, alterations, renovations or improvements to the
Equipment for each Phase made during such quarter having a cost of at least
$25,000 at the time made, and (y) that the Equipment for each Phase continues
to have, in all material respects, the capacity and functional ability to
perform on a continuing basis (subject to normal interruption in the ordinary
course of business for maintenance, inspection, service, repair and testing)
and in commercial operation, the functions for which it was designed or, if
not, specifying the reason for any such deficiency, including, without
limitation, the existence and nature of any Loss Event or Casualty Occurrence
with respect to the such Equipment.

                  (b)   If the Lessee determines that any part of the Equipment
for any Phase is no longer necessary for the performance of the Equipment for
such Phase on a continuing basis in commercial operation of the function for
which the Equipment was designed, then the Lessee (except when such action or
removal may be required by any applicable Governmental Requirement, in which
event, the Lessee shall promptly give the Lessor notice of such action or
removal) shall give the Lessor at least thirty (30) days' notice prior to
taking any action as the result of such determination and shall not remove any
such portion unless and until the Lessor has determined that (i) such portion
is no longer necessary for the performance of the Equipment for such Phase on a
continuing basis in commercial operation of the function for which such
Equipment was designed in all material respects, (ii) removal of such portion
does not materially reduce the value of the Equipment for such Phase as a
whole, and (iii) removal of such portion does not materially decrease the
estimated useful life of the Equipment for such Phase. This Section 8(b) shall
not apply to worn out or obsolete Equipment or damaged Equipment (to the extent
such damage does not constitute a Casualty Occurrence or Loss Event) removed
and replaced by the Lessee in accordance with Section 7(b).

         Section 9.     Further Assurances.  The Lessee, at its expense,
shall execute, acknowledge and deliver from time to time such further
counterparts of this Lease or such affidavits, certificates, certificates of
title, bills of sale, financing and

                                       11

<PAGE>   18

continuation statements, consents and other instruments as may be required by
applicable law or reasonably requested by the Lessor in order to evidence the
Lessor's title to the Equipment and the Lessor's interests in this Lease, and
shall, at the Lessee's expense, cause such documents to be recorded, filed or
registered in such places as the Lessor may request and to be re-recorded,
refiled or re-registered in such places as may be required by applicable law or
at such times as may be required by applicable law in order to maintain and
continue in effect the recordation, filing or registration thereof. The Lessor
shall not grant or create any Lien on the Equipment to any Person except
Permitted Liens, Liens in favor of the Lessor and Liens pursuant to this Lease
and the other Operative Documents.

         Section 10.    Compliance with Governmental Requirements and Insurance
Requirements: Related Contracts. The Lessee, at its expense, will comply with
all Governmental Requirements applicable to the Equipment any portion thereof
or the ownership, installation, operation, mortgaging, possession, use, non-use
or condition of the Equipment or any portion thereof, all Insurance
Requirements, and all instruments, contracts or agreements affecting title to
ownership of the Equipment or any portion thereof, except, in each case, where
the failure to so comply would not have or cause a Material Adverse Effect. In
addition, the Lessee, so long as no Event of Default has occurred and is
continuing, is hereby authorized by the Lessor to, and shall, fully and
promptly keep, observe, perform and satisfy on behalf of the Lessor any and all
obligations, conditions, covenants and restrictions of or on the Lessor or the
Lessee under any and all Related Contracts so that there will be no default
thereunder and so that the other parties thereunder shall be, and remain at all
times, obliged to perform their obligations thereunder, and the Lessee, to the
extent within its control, shall not permit to exist any condition, event or
fact that could allow or serve as a basis or justification for any such Person
to avoid such performance.

         Section 11.    Condition and Use of Equipment; Quiet Enjoyment.

                  (a)   THE EQUIPMENT IS LEASED AS IS, WHERE IS, AND WITH ALL
FAULTS AND IN THE CONDITION THEREOF AND SUBJECT TO THE STATE OF THE TITLE
THERETO, AND THE RIGHTS OF OWNERSHIP THEREIN, IN EACH CASE AS IN EXISTENCE WHEN
THE SAME FIRST BECOMES SUBJECT TO THIS LEASE, WITHOUT REPRESENTATIONS AND
WARRANTIES OF ANY KIND AS TO TITLE BY THE LESSOR OR ANY PERSON ACTING ON ITS
BEHALF. THE LESSEE ACKNOWLEDGES AND AGREES THAT THE EQUIPMENT HAS NOT BEEN
SELECTED BY THE LESSOR,

                                       12

<PAGE>   19

THAT THE LESSOR HAS NOT SUPPLIED ANY SPECIFICATIONS WITH RESPECT TO THE
EQUIPMENT AND THAT THE LESSOR (i) IS NOT A VENDOR OF, OR MERCHANT OR SUPPLIER
WITH RESPECT TO, ANY OF THE EQUIPMENT OR ANY PROPERTY OF SUCH KIND, (ii) HAS
NOT MADE ANY RECOMMENDATION, GIVEN ANY ADVICE OR TAKEN ANY OTHER ACTION WITH
RESPECT TO THE CHOICE OF ANY MANUFACTURER, SUPPLIER OR TRANSPORTER OF, OR ANY
VENDOR OF OR OTHER CONTRACTOR, INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO
ANY OF THE EQUIPMENT, (iii) HAS NOT AT ANY TIME HAD PHYSICAL POSSESSION OF ANY
SUCH EQUIPMENT, (iv) HAS NOT MADE OR IS NOT MAKING ANY WARRANTY, EXPRESS OR
IMPLIED, RELATING TO THE EQUIPMENT, INCLUDING WITHOUT LIMITATION, WITH RESPECT
TO TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, THE
DESIGN, CONDITION, QUALITY OF MATERIAL OR WORKMANSHIP, CONFORMITY TO
SPECIFICATIONS, FREEDOM FROM PATENT OR TRADEMARK INFRINGEMENT, ABSENCE OF ANY
LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, WHETHER ARISING PURSUANT
TO THE UCC OR ANY OTHER PRESENT OR FUTURE LAW OR OTHERWISE, OR COMPLIANCE WITH
APPLICABLE PERMITS OR OTHER GOVERNMENTAL REQUIREMENTS, OR (v) SHALL NOT BE
LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING LIABILITY IN TORT,
STRICT OR OTHERWISE). IN THE EVENT OF ANY DEFECT OR DEFICIENCY OF ANY NATURE IN
THE EQUIPMENT OR ANY PROPERTY OR OTHER ITEM CONSTITUTING A PORTION THEREOF,
WHETHER PATENT OR LATENT, OF THE LESSOR SHALL NOT HAVE ANY RESPONSIBILITY OR
LIABILITY WITH RESPECT THERETO. THE PROVISIONS OF THIS SECTION 11 HAVE BEEN
NEGOTIATED AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY AND
ALL WARRANTIES, EXPRESS OR IMPLIED, BY THE LESSOR WITH RESPECT TO THE EQUIPMENT
OR ANY PROPERTY OR OTHER ITEM CONSTITUTING A PORTION THEREOF, WHETHER ARISING
PURSUANT TO THE UCC OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT.

                  (b)   The Lessor hereby assigns to the Lessee, until the
Equipment is purchased or sold in accordance with the terms hereof, the
benefits in respect of any Vendor's warranties or undertakings, express or
implied, relating to the Equipment (including any labor, equipment or parts
supplied therewith), and, to the extent assignment of the same is prohibited or
precludes enforcement of any such warranty or undertaking, the Lessor hereby
subrogates the Lessee to its rights in respect thereof. The Lessor hereby
authorizes the Lessee, at the Lessee's expense, to assert any and all claims
and to prosecute any and all suits, actions and proceedings, in its own name or
in the name of the Lessor, in respect of any such warranty or undertaking and,
except during the continuance of an Event of Default, or after the occurrence
of a Cancellation Event or Termination Event hereunder, to retain the proceeds
received, and after the termination of this Lease or after the occurrence and
during the continuation of an Event of Default, or after the occurrence of a
Cancellation Event or Termination Event, to pay the same in the form received
(with any necessary endorsement) to the Lessor.

                                       13

<PAGE>   20

                  (c)   The Lessee may use the Equipment for any Phase for the
Permitted Use provided that the value of such Equipment is not materially
diminished by any such use other than as a result of normal wear and tear in
the ordinary course of business. During the term of this Lease, the Lessor
covenants that unless an Event of Default, a Cancellation Event or a
Termination Event has occurred and is continuing, the Lessor will not, and will
not permit any party claiming by, through or under the Lessor to, interfere
with the peaceful and quiet possession and enjoyment of the Equipment by the
Lessee; provided, however, that the Lessor and its successors, assigns,
representatives and agents may, upon reasonable notice to the Lessee, enter
upon and examine the Equipment or any part thereof at reasonable times, subject
to the provisions of Section 19. Any failure by the Lessor to comply with the
foregoing provisions of this Section 11(c) shall not give the Lessee any right
to cancel or terminate this Lease, or to abate, reduce or make reduction from
or offset against any Rent or other sum payable under this Lease or any other
Operative Document, or to fail to perform or observe any other covenant,
agreement or obligation hereunder or thereunder. The Lessee will not do, or
fail to do, or permit or suffer to exist any act or thing, which action or
thing or failure might impair the value, use or usefulness of the Equipment for
any Phase for the Permitted Use in accordance with the design of the Equipment
for such Phase, ordinary wear and tear excepted.

         Section 12.    Liens.

                  (a)   The Lessor's interest in the Equipment is not subject to
any construction, materialman's or mechanics' lien (other than Permitted Liens)
for any improvements to the Equipment for any Phase or the Applicable Site
thereof undertaken by the Lessee or by agents of the Lessee, whether or not
such improvements are made with the consent of the Lessor.

                  (b)   The Lessee will not directly or indirectly create, or
permit to be created or to remain, and at the Lessee's expense will discharge
within ten (10) days of notice of the filing or assertion thereof, by bond,
deposit or otherwise, any Lien upon the Lease or any of the Equipment except
(i) any Lien being contested as permitted by and in accordance with Section 13,
or (ii) Permitted Liens. The Lessor agrees that the Lessee shall have during
the term of this Lease the exclusive right (so long as no Default has occurred
and is continuing) to grant, create or suffer to exist Permitted Liens in the
ordinary course of business and in accordance with prudent industry practices,

                                       14

<PAGE>   21

provided that the fair market value or use of the Equipment for any Phase or
the applicable portion thereof for the Permitted Use is not materially lessened
thereby. The Lessor agrees to execute such documents and take all other actions
as shall be reasonably necessary, and otherwise to cooperate with the Lessee in
connection with the matters described above, provided that all reasonable
out-of-pocket costs and expenses (including, without limitation, reasonable
attorneys' fees and expenses) incurred by the Lessor in connection therewith
shall be borne by the Lessee, and the Lessor shall not be required to execute
any document that would, in the opinion of the Lessor, materially and adversely
affect the value or use of the Equipment for any Phase or any portion thereof
for the Permitted Use or otherwise materially and adversely affect the
transactions contemplated by the Operative Documents or the interests of the
Lessor in the Equipment for any Phase or under the Operative Documents or
otherwise.

                  (c)   The Lessor will not directly or indirectly sell,
transfer or otherwise dispose of, or create, or permit to be created or to
remain, and will discharge, any Lien of any nature whatsoever on, in or with
respect to, its interest in the Equipment arising by or through it or its
actions, except Permitted Liens.

                  (d)   The Lessee will not directly or indirectly sell,
transfer, or otherwise dispose of, or create, or permit to be created or to
remain, and will discharge within ten (10) days of notice of the filing or
assertion thereof, by bond, deposit or otherwise, any Lien of any nature
whatsoever on, in or with respect to, its interest in any of the Equipment
except Permitted Liens.

         Section 13.    Permitted Contests. Notwithstanding any other provision
of this Lease to the contrary, after prior written notice to the Lessor and
provided there is no material risk of sale, forfeiture or loss of the Equipment
for any Phase or any material part thereof, the Lessee may at its expense
contest any Imposition which it is required to pay hereunder, by appropriate
proceedings conducted in good faith and with due diligence, so long as such
proceedings are effective to prevent the collection of such Imposition from the
Lessor or against the Equipment for any Phase or any portion thereof; provided,
however, that the actions of the Lessee, as authorized by this Section 13,
shall be subject to the express written consent of the Lessor if such actions
would subject the Lessor or the Equipment for any Phase or any portion thereof
to any liability

                                       15

<PAGE>   22

or loss not indemnified in full by the Lessee hereunder or any sanction,
criminal or otherwise, for failure to pay any such Imposition. The Lessee will
pay, and save the Lessor harmless against, all losses, Judgments and reasonable
costs, including attorneys' fees and expenses, in connection with any such
contest and will, promptly after the final determination of such contest, pay
and discharge the amounts which shall be imposed or determined to be payable
therein, together with all penalties, costs and expenses incurred in connection
therewith. The Lessee shall prevent any foreclosure, judicial sale, taking,
loss or forfeiture of the Equipment for any Phase or any portion thereof, or
any interference with or deductions from any Rent or any other sum required to
be paid by the Lessee hereunder by reason of such nonpayment or nondischarge of
an Imposition. The Lessor shall cooperate with the Lessee in any contest and
shall allow the Lessee to conduct such contest (in the name of the Lessor, if
necessary) at the Lessee's sole cost and expense. The Lessee shall notify the
Lessor of each such proceeding within ten (10) days after the commencement
thereof, which notice shall describe such proceeding in reasonable detail.

         Section 14.    Insurance, etc.

                  (a)   The Lessee will, at its own expense, purchase and
maintain, or cause to be purchased and maintained, throughout the term of this
Lease insurance with respect to its business and the Equipment in accordance
with the requirements of Schedule 14.

                  (b)   The Lessee shall bear all risk of loss (including any
Loss Event or Casualty Occurrence) with respect to the Equipment for each
Phase, whether by casualty, theft, taking, confiscation or otherwise, with
respect to the Equipment for each Phase or any portion thereof, at all times
during the term of this Lease until possession of the Equipment has been
accepted by the Lessor pursuant to Section 17.

                  (c)   So long as no Termination Event or Cancellation Event
shall have occurred and no Event of Default shall have occurred and be
continuing, any payments, whether constituting insurance proceeds, amounts paid
by any Governmental Authority or otherwise, received by the Lessee or the
Lessor upon the occurrence of any loss with respect to the Equipment for each
Phase or portion thereof (other than a Casualty Occurrence), whether as a
result of casualty, theft, taking or other confiscation, shall be applied in
payment for necessary repairs and replacement to the Equipment for such Phase
in accordance

                                       16

<PAGE>   23

with Section 7 or, to the extent the costs of such repairs and replacement
shall have been paid by the Lessee, to reimburse the Lessee. The Lessee shall
be entitled to retain any excess funds remaining after necessary repairs and
replacements have been completed and all costs therefor paid in full. Upon the
occurrence of any Termination Event or Cancellation Event or upon the
occurrence and during the continuance of any Event of Default, the Lessor shall
be entitled to receive and retain any such payments for application to the
obligations of the Lessee hereunder.

                  (d)   Upon a Casualty Occurrence with respect to any Phase,
the Lessee shall give prompt notice thereof to the Lessor and shall within
thirty (30) days of the date of such Casualty Occurrence either (i) offer to
purchase the whole of the Equipment for such Phase for the Termination Value
for such Phase as provided in Section 15(c) or (ii) provide the Lessor with a
replacement plan acceptable to the Lessor setting forth how the Lessee shall
replace, or cause to be replaced, at the Lessee's own cost and expense, within
six (6) months (but in no event later than the Scheduled Lease Termination Date
for such Phase) after the date of such Casualty Occurrence, such portion of the
Equipment for such Phase that is the subject of a Casualty Occurrence in
accordance with this Section 14(d) and Section 7. If the Lessee chooses the
option set forth in clause (ii) of the preceding sentence, within the later to
occur of (x) sixty (60) days after the date of the Casualty Occurrence and (y)
satisfaction of all applicable Governmental Requirements, and obtaining all
authorizations of Governmental Authorities, required therefor (but in no event
later than ninety (90) days after the date of the Casualty Occurrence), the
Lessee shall have commenced repairs or replacements as specified in the
replacement plan. After completion of the repairs and replacements, the Lessee
shall demonstrate to the satisfaction of the Lessor that operations, capacity
and production of the Equipment for such Phase have been restored to the
standards required for Completion.

                  (e)   All replacement Equipment (other than temporary
replacement parts and equipment installed pending installation of permanent
replacement Equipment) installed pursuant to Section 14(d) shall be free and
clear of all Liens except Permitted Liens, and shall be in as good operating
condition as, and shall have a value and utility at least equal to, the
Equipment replaced immediately prior to the Casualty Occurrence to which such
Equipment was subject. For purposes of this Lease

                                       17

<PAGE>   24

(including without limitation Section 14(d) and Section 7), the Funded Amount
and Book Value of the replacement Equipment shall be deemed to equal the Funded
Amount and Book Value of the part(s) replaced thereby. All Equipment for any
Phase at any time removed from this Lease pursuant to Section 14(d) and Section
7 shall remain the property of the Lessor, no matter where located, until such
time as insurance proceeds have been received by the Lessor at least equal to
the Book Value of such portion of the Equipment for such Phase or such portion
shall be replaced by suitable items that have been incorporated or installed on
or attached to the Equipment and that meet the requirements specified above.
Immediately upon any permanent replacement Equipment becoming incorporated or
installed on or attached to the Equipment for any Phase as provided above,
without further act, such permanent replacements shall become subject to this
Lease and be deemed part of the Equipment for such Phase for all purposes
hereof to the same extent as any other parts of the Equipment for such Phase.
All amounts of insurance proceeds for Equipment losses and all other proceeds
(whether resulting from damage or destruction or from condemnation,
confiscation or seizure) relating to the Equipment for any Phase shall be
deposited into the Restoration Account for such Phase and held and released,
together with accrued interest thereon, as hereinafter provided. So long as a
Cancellation Event or Termination Event shall not have occurred and an Event of
Default shall not have occurred and be continuing, and provided that the Lessor
shall have received a written application of the Lessee accompanied by a
certificate of an Authorized Officer of the Lessee showing in reasonable detail
the nature of any necessary repair, rebuilding and restoration, the actual cash
expenditures necessary for such repair, rebuilding and restoration, the
expected total expenditures required to complete such work and evidence that
sufficient funds are or will be available to complete such work on a timely
basis (such certificate to be acceptable to the Lessor in all respects), then
the amounts available in such Restoration Account, together with accrued
interest thereon, shall be released by the Lessor immediately upon receipt of
such certification or, if applicable, from time to time on the last Business
Day of each month during the period of repair, rebuilding and restoration in
payment therefor against presentation to the Lessor of a certificate executed
by an Authorized Officer of the Lessee to the effect that expenditures have
been made, or costs incurred, by or for the account of the Lessee or are
reasonably anticipated to be made during the immediately following one month
period in a specified amount for the purposes of making repairs, rebuilding

                                       18

<PAGE>   25

and restoration in the amounts specified, that no Event of Default,
Cancellation Event or Termination Event exists and all conditions precedent
herein provided relating to such withdrawal and payment have been satisfied.
Upon the occurrence of any Event of Default, Termination Event or Cancellation
Event, the Lessor shall be entitled to retain all amounts in the Restoration
Account for each Phase for application to the obligations of the Lessee
hereunder.

                  (f)   If any Loss Event or Casualty Occurrence shall occur,
the Lessee shall promptly notify the Lessor of such event in writing.

         Section 15.    Termination; Cancellation; Purchase Option.

                  (a)   (i)  The termination of this Lease (A) in accordance
         with Section 2(b) as to a particular Phase or (B) as a result of the
         declaration by the Lessor of a Non- Designated Event of Default, shall
         be a "Termination Event," the effect of which shall be to cause this
         Lease to terminate (x) if in accordance with Section 2(b), as to the
         relevant Phase, and (y) if as a result of the declaration by the
         Lessor of a Non-Designated Event of Default, as to all Phases, in each
         case on the applicable Lease Termination Date.

                        (ii) If a Termination Event occurs, the Lessee, on
         the Lease Termination Date, shall, in accordance with the terms of
         Section 2(c) or (d), as applicable, without further notice or demand
         to the Lessee, either

                             (A) purchase the Equipment for the relevant
                  Phase or for all Phases, as applicable, from the Lessor for
                  the Termination Value thereof; or

                             (B) so long as no Designated Event of Default has
                  occurred:

                                 (1) pay to the Lessor the Final Rent Payment
                        for the relevant Phase or for all Phases, as applicable;
                        and

                                 (2) attempt to sell (until such time as the
                        Lessor shall have terminated, in accordance with the
                        Agency Agreement, the Lessee's obligation to so attempt
                        to sell the Equipment) subject to

                                                        19

<PAGE>   26

                        the Lessor's prior written approval, the Equipment
                        for the relevant Phase or all Phases, as applicable,
                        as agent for the Lessor, without recourse or
                        warranty by the Lessor, and upon any such sale, pay
                        the net cash proceeds of such sale to the Lessor;
                        provided, that so long as Lessee has paid the Final
                        Rent Payment pursuant to Section 15(a)(ii)(B)(1),
                        then if the net cash proceeds of such sale for the
                        relevant Equipment are (x) less than the
                        Non-Recourse Amount for such Equipment, the Lessee
                        shall not be liable for any deficiency, or (y)
                        greater than the Non-Recourse Amount for such
                        Equipment, the Lessor shall remit the excess to the
                        Lessee. The Lessor shall also have the right (but
                        not the obligation) to sell the Equipment and/or
                        solicit bids, each in its sole and absolute
                        discretion.

                  (b)   (i) Each of the following events shall be a
         "Cancellation Event", the effect of which shall be to cause this Lease
         to be terminated as to the relevant Phase or as to all Phases, as
         specified below, in accordance with the following provisions on the
         "Cancellation Date" specified:

                            (A)  the existence of a Designated Event of
                  Default and the delivery by the Lessor to the Lessee of a
                  notice stating that the Lessor elects to terminate this Lease
                  by reason of the existence of such Designated Event of
                  Default, in which case the Cancellation Date will be the
                  fifth (5th) Business Day after the date of delivery of said
                  notice to the Lessee; or

                            (B)  the occurrence of a Loss Event with respect
                  to any Phase, in which case the Cancellation Date for such
                  Phase shall be the fifth (5th) Business Day after such event
                  occurs; or

                            (C)  the occurrence of a Casualty Occurrence in
                  respect of the Equipment for any Phase and the failure of the
                  Lessee to purchase the Equipment for such Phase or to replace
                  or repair the Equipment for such Phase or such portion
                  thereof in accordance with, and within the time required by,
                  Section 14 and the delivery by the Lessor to the Lessee of a
                  notice after the expiration of such time stating that the
                  Lessor

                                       20

<PAGE>   27

                  elects to terminate this Lease for all Phases by reason of
                  the existence of such Casualty Occurrence, in which case the
                  Cancellation Date for all Phases shall be the fifth (5th)
                  Business Day after the date of delivery of said notice; or

                        (ii) If a Cancellation Event occurs, the Lessee, on
         the Cancellation Date, shall, without further notice or demand to the
         Lessee purchase the Equipment for the relevant Phase or for all
         Phases, as the case may be, from the Lessor for the Termination Value
         for the relevant Phase or for all Phases, as the case may be.

                  (c)   The Lessee may, from time to time and at any time
following the third (3rd) anniversary of the Phase Commencement Date for any
Phase, deliver to the Lessor notice of its intent to terminate this Lease as to
such Phase, in which case the Lessee shall purchase the Equipment for such
Phase from the Lessor for the Termination Value for such Phase on any Business
Day that is not less than thirty (30) nor more than sixty (60) days after such
notice (the "Option Date"). Upon payment in full of the Termination Value for
such Phase, this Lease shall terminate as to such Phase.

                  (d)   This Lease as to any Phase shall cease and terminate on
the Lease Termination Date for such Phase (or for all Phases, as applicable)
except with respect to (i) obligations and liabilities of the Lessee, actual or
contingent, which arose under this Lease, or by reason of events or
circumstances occurring or existing, on or prior to its termination, and which
have not been satisfied (which obligations shall continue until satisfied and
which include, but are not limited to, obligations for Rent accruing prior to
the Lease Termination Date, the Final Rent Payment, and the Termination Value
and amounts owing pursuant to Section 16 for all Phases), and (ii) obligations
of the Lessee which by the terms of this Lease expressly survive termination.
Promptly after either the Lessee or the Lessor shall learn of the happening of
any Termination Event or Cancellation Event as to any Phase, such party shall
give notice thereof to the other party hereto.

                  (e)   In the event the Lessee elects to purchase the
Equipment for any Phase (or for all Phases, as applicable) upon the occurrence
of a Termination Event (other than the expiration of this Lease on a Scheduled
Lease Termination Date for such Phase) or a Cancellation Event therefor, the
Lessee in its sole

                                       21

<PAGE>   28

discretion in order to ensure the orderly conveyance of the relevant Equipment
may postpone the closing date for such conveyance (whether or not extended, the
"Purchase Closing Date") to a reasonable date within sixty (60) days following
the Lease Termination Date; provided however, that notwithstanding any such
postponement the Lessee shall nonetheless be required to deposit on or before
the Lease Termination Date, the Termination Value for such Phase (or for all
Phases, as applicable) (estimated at the time of the deposit) with the Lessor
to be held in escrow pending consummation of the closing on or before the
extended Purchase Closing Date. The Lessee shall notify the Lessor of any such
postponement and the proposed extended Purchase Closing Date in writing on or
before the Lease Termination Date. Provided that the Lessee deposits the
estimated Termination Value on or before the applicable Lease Termination Date,
the Lessee shall be deemed to have been granted a temporary license by Lessor
entitling the Lessee to retain possession of the relevant Equipment through the
Purchase Closing Date, at no additional charge, provided that the Lessee
complies with all obligations of the Lessee under this Lease with respect
thereto as though this Lease were still in full force and effect (including
without limitation, compliance with permitted use, maintenance and insurance
coverage requirements, but excluding Basic Rent). In the event of an extension
of the Purchase Closing Date as herein contemplated, the Termination Value
(including the Final Rent Payment component thereof) will be calculated as of
such extended Purchase Closing Date. This Section 15(e) shall survive the
termination of this Lease as to any such Phase.

         Section 16.    Transfer of Title on Removal of Equipment;
Expenses of Transfer.

                  (a)   Upon any sale or purchase of the Equipment for any Phase
permitted by Section 15, the Lessor will transfer to the Lessee or the
appropriate Third Party all of its title to and legal and beneficial ownership
interest in such Equipment to be transferred (i) free and clear of any Lien
created by, through or under the Lessor other than Permitted Liens (except any
created solely by or through the Lessor, other than by the Lessee as agent of
the Lessor) or Liens created at the request of or as a result of the actions of
the Lessee or anyone acting by, through or under the Lessee, or a result of the
failure of the Lessee to carry out any of its obligations under this Lease or
the other Operative Documents, and (ii) without recourse, representation or
warranty of any nature whatsoever (except as to the absence of such Liens as
aforesaid).

                                       22

<PAGE>   29

                  (b)   Whenever the Lessee has the right to purchase or
transfer to itself any of the Equipment pursuant to any provision of this
Lease, the Lessee may cause such purchase to be effected by, or such transfer
to be effected to, any other Person specified by the Lessee, but in no event
shall the Lessee be relieved from any of its obligations hereunder as a result
thereof.

                  (c)   Upon any sale or transfer of any of the Equipment
pursuant to any provision of this Lease, the Lessee shall pay the expenses of
the Lessor, including, without limitation, reasonable attorneys' fees and
expenses, in connection with such sale or transfer.

                  (d)   If, with respect to any Phase (or all Phases, if
applicable) on the Lease Termination Date, the Lessee or any of its Affiliates
has not elected to acquire the relevant Equipment, the Lessee shall surrender
the relevant Equipment to the Lessor free from all Liens except Permitted Liens
(other than those described in clause (ii)(b) of the definition of Permitted
Liens), in the same operating condition (except for ordinary wear and tear)
with the remaining original estimated useful life intact and having in all
material respects the same capacity and efficiency as such Equipment had on the
Lease Commencement Date with respect thereto, and in compliance in all material
respects with all Governmental Requirements and Insurance Requirements. To
evidence the foregoing and accomplish the surrender of such Equipment for any
Phase, the Lessee shall provide the following items (x) in the event of a
Termination Event under Section 15(a)(i)(A) within nine (9) months prior to the
then current Lease Termination Date for such Phase, with final confirmation of
the same at least thirty (30) days but not more than sixty (60) days prior
thereto and (y) in the event of a Termination Event under Section 15(a)(i)(B),
as soon as practicable but in any event at least three (3) Business Days prior
to the Lease Termination Date or Cancellation Date for such Phase, applicable:

                  (i)   evidence satisfactory to the Lessor that all Applicable
         Permits, Related Contracts, patents, trademarks and copyrights, and
         all other rights and services and Property reasonably required to
         operate the Equipment for such Phase from and after the Lease
         Termination Date have been, or on or prior to the Lease Termination
         Date therefor shall be, transferred to the Lessor (or the Lessor has
         been, or on or prior to the Lease Termination Date or Cancellation
         Date therefor, as applicable, shall be, given the right to

                                       23

<PAGE>   30

         use each such item) and can be transferred to (or used by) any
         successor or assignee of the Lessor without further consent or
         approval by any Person (subject only to normal Governmental
         Requirements);

                  (ii)  conveyancing, assignment, transfer, termination and
         other documents that, in the sole discretion of the Lessor, are
         sufficient to (A) vest in the Lessor good and marketable title to the
         Equipment for such Phase, free and clear of all Liens except Permitted
         Liens (other than those described in clause (ii)(b) of the definition
         of Permitted Liens) and (B) terminate the rights of the Lessee and all
         other Persons claiming through the Lessee in and to the Equipment;

                  (iii) evidence satisfactory to the Lessor that the Equipment
         for such Phase has been operated and maintained in all material
         respects in accordance with the requirements of the Operative
         Documents, all Governmental Requirements, all Applicable Permits and
         prudent industry practices;

                  (iv)  evidence satisfactory to the Lessor that the Equipment
         for such Phase is being used solely for the Permitted Use, meets or
         exceeds the original design specifications and is capable of operating
         and being used for the Permitted Use, and has the remaining original
         estimated useful life contemplated by the Lessee;

                  (v)   evidence satisfactory to the Lessor, in its sole
         discretion, that (A) no default exists under the Agency Agreement, (B)
         all agreements and arrangements to provide the services and rights
         contemplated by the Agency Agreement are in place, executed by the
         parties thereto, and are valid, enforceable and in full force and
         effect on or before the Lease Termination Date or Cancellation Date
         for such Phase, as applicable and (C) such agreements and arrangements
         adequately provide for the services and other rights contemplated by
         the Agency Agreement; and

                  (vi)  such other documents, instruments and other items as the
         Lessor may reasonably request to evidence to the satisfaction of the
         Lessor, in its sole discretion) that no Designated Event of Default,
         Loss Event or Casualty Occurrence then exists.

                                       24

<PAGE>   31

         To the extent the Equipment for any Phase is not in the condition
         required by this Section 16(d), the Lessee will pay to the Lessor such
         additional amounts as are reasonably required to place it in
         compliance. The Lessee shall also pay all costs and expenses relating
         to the surrender and clean-up in connection with the surrender of the
         Equipment for such Phase as may be required by Governmental
         Requirements or Insurance Requirements or which are otherwise
         necessary to consummate the delivery of possession of the Equipment
         for such Phase to the Lessor hereunder.

         Section 17.    Events of Default and Remedies.

                  (a)   Each of the following acts or occurrences shall
constitute an "Event of Default" hereunder:

                  (i)   default in the payment of the Termination Value for any
         Phase on the relevant Option Date, or in the payment of the
         Termination Value for any Phase on the relevant Cancellation Date or
         Purchase Closing Date, as applicable, or in the payment of the
         Termination Value or the Final Rent Payment for any Phase on the
         relevant Lease Termination Date or Purchase Closing Date, as
         applicable or in the payment when due of the Scheduled Payment
         component of Basic Rent for any Phase; or in the payment when due of
         any Interim Rent or the Floating Rate Payment or Fixed Rate Payment
         component of Basic Rent for any Phase, and the continuance of such
         default for 10 days thereafter; or the default in the payment when due
         of any Supplemental Rent for any Phase, or the amount of any
         Indemnified Risk or of any other amount due hereunder or under any
         other Operative Document and the continuance of such default for
         thirty (30) days thereafter; or

                  (ii)  the Lessee shall fail to observe or perform any covenant
         contained in Sections 30(a)(vi) or (vii), 30(b)(ii), 30(c) through
         30(f), inclusive, and 30(o) through 30(u), inclusive; or

                  (iii) the Lessee shall fail to observe or perform any
         covenant or agreement contained or incorporated by reference in this
         Lease (other than those covered by any other paragraph of this Section
         17(a)) and such failure shall not have been cured within thirty (30)
         days after the earlier to occur of (i) written notice thereof has been
         given to the

                                       25

<PAGE>   32

         Lessee by the Lessor or (ii) any officer of the Lessee otherwise
         becomes aware of any such failure; or

                  (iv)   any representation or warranty made or deemed made by
         the Lessee herein, in any other Operative Document by the Lessee or
         otherwise in writing in connection with or pursuant to this Lease or
         any other Operative Document, shall be false or misleading in any
         material respect on the date made or deemed made; or

                  (v)    an event of default under the Agency Agreement, and
         such failure shall not have been cured within thirty (30) days after
         the earlier to occur of (i) written notice thereof has been given to
         the Lessee by the Lessor or (ii) any officer of the Lessee otherwise
         becomes aware of any such failure; or

                  (vi)   (A) the Lessee shall (1) generally not pay its debts as
         such debts become due; or (2) make a general assignment for the
         benefit of creditors; or (B) any case or proceeding shall be
         instituted or consented to by the Lessee seeking to adjudicate it a
         bankrupt or insolvent, or seeking liquidation, winding up,
         reorganization, arrangement, adjustment, protection, relief, or
         composition of it or its debts under any law relating to bankruptcy,
         insolvency or reorganization or relief of debtors, or seeking the
         entry of an order for relief or the appointment of a receiver,
         trustee, or other similar official for it or for any substantial part
         of its property; or (C) any such case or proceeding shall have been
         instituted against the Lessee and either such case or proceeding shall
         not be stayed or dismissed for 60 consecutive days or any of the
         actions sought in such case or proceeding (including, without
         limitation, the entry of an order for relief against it or the
         appointment of a receiver, trustee, custodian or other similar
         official for it or any substantial part of its property) shall occur;
         or

                  (vii)  the Lessee permits a judgment in the amount of
         $1,000,000 or more to be obtained against it which is not promptly
         paid or promptly appealed and stayed pending appeal; or

                  (viii) the Lessee breaches or defaults under the Existing
         Term Loan Agreement or any Qualified Replacement Term Loan Agreement
         or any other agreement involving the

                                       26

<PAGE>   33

         borrowing of money or the extension of credit (other than trade credit
         incurred in the ordinary course of business) under which the Lessee
         may be obligated as a borrower or guarantor, if such default consists
         of the failure to pay any indebtedness in the aggregate principal
         amount of $5,000,000 or more when due or if such default permits or
         causes (or upon lapse of time or notice or both would permit or cause)
         the acceleration of any indebtedness, or the termination of any
         commitment to lend, in either case in the aggregate principal amount
         of $5,000,000 or more; provided, however, that if the Existing Term
         Loan Agreement is terminated and there is no Qualified Replacement
         Term Loan Agreement, the occurrence of any event which would have been
         a breach or default under the Existing Term Loan Agreement as in
         effect immediately prior to its termination which, but for such
         termination, would have permitted or caused (or upon lapse of time or
         notice or both would have permitted or caused) the acceleration of any
         indebtedness thereunder, shall constitute an Event of Default; or

                  (ix)  in any 12 month period or less, (i) 50% or more of the
         members of the full Board of Directors of the Lessee shall have
         resigned or been removed or replaced, or (ii) any Person or "Group"
         (as defined in Section 2(d)(3) of the Securities Exchange Act of 1934,
         as amended) (other than an employee benefit or stock ownership plan of
         the Borrower) shall have acquired, directly or indirectly, more than
         50% of the capital stock (whether common or preferred or a combination
         thereof) of the Lessee, provided that the Lessee's purchase of
         treasury shares of shares of its capital stock outstanding on the date
         hereof which results in one or more of the Lessee's shareholders of
         record as of the date of this Lease owning 50% or more of the Lessee's
         capital stock shall not constitute an acquisition for purposes of this
         Section 17(a)(xi).

                  (b)   Upon the occurrence and during the continuance of any
Event of Default, the Lessor may do any one or more of the following (without
prejudice to the obligations of the Lessee under Section 15(b)(ii)):

                  (i)   proceed by appropriate judicial proceedings, either at
         law, in equity or in bankruptcy, to enforce performance or observance
         by the Lessee of the applicable provisions of this Lease, or to
         recover damages for the breach of any such provisions, or any other
         equitable or

                                       27

<PAGE>   34

         legal remedy, all as the Lessor shall deem necessary or advisable;
         and/or

                  (ii)  by notice to the Lessee, terminate this Lease for all
         Phases in accordance with Section 15, whereupon the Lessee's interest
         and all rights of the Lessee to the use of the Equipment for any Phase
         shall forthwith terminate subject to the Lessee's rights under such
         Section 15 to acquire such Equipment on the Purchase Closing Date as
         provided herein, but the Lessee shall remain liable with respect to
         its obligations and liabilities hereunder; and/or

                  (iii) exercise any and all other remedies available under
         applicable law or at equity.

                  (c)   After the occurrence and during the continuance of a
Cancellation Event or Termination Event, in the event the Lessor elects not to
terminate this Lease and the Lessee has not exercised its option under Section
15(c), this Lease shall continue in effect and the Lessor may enforce all of
the Lessor's rights and remedies under this Lease, including, without
limitation, the right to recover the Interim Rent, the Basic Rent and the
Supplemental Rent for each Phase, and all other yield protection payments and
other amounts with respect thereto, as it becomes due under this Lease. For the
purposes hereof, the following do not constitute a cancellation or termination
of this Lease as to any Phase: (i) acts of maintenance or preservation of the
Equipment for such Phase or any portion thereof, (ii) efforts by the Lessor to
relet the Equipment for such Phase or any portion thereof, including, without
limitation, termination of any sublease of the Equipment for such Phase and
removal of any tenant from the Applicable Site thereof, (iii) or the
appointment of a receiver upon the initiative of the Lessor to protect the
Lessor's interest under this Lease.

                  (d)   If (i) on the Lease Termination Date or the Purchase
Closing Date, as the case may be, for any Phase, the Equipment for such Phase
is not acquired by the Lessee or its designee by payment of the Termination
Value thereof or (ii) on the Cancellation Date or Option Date for any Phase,
the Lessee or its designee has defaulted in its obligation to acquire the
Equipment for such Phase and pay the Termination Value for such Phase in
accordance with the Lessee's election under Section 15(b)(ii), then the Lessor
shall have the immediate right of possession of the Equipment for all Phases
and the right to enter onto any Applicable Sites, and remove the relevant
Equipment

                                       28

<PAGE>   35

therefrom if it so elects, and the Lessor may thenceforth hold, possess and
enjoy such Equipment, free from any rights of the Lessee and any Person
claiming by, through or under the Lessee, except as required by applicable law.
The Lessor shall be under no liability by reason of any such repossession or
entry onto the premises of the Lessee.

                  (e)   Should the Lessor elect to repossess the Equipment for
any Phase or any portion thereof upon cancellation or termination of this Lease
as to such Equipment or otherwise in the exercise of the Lessor's remedies, the
Lessee shall peaceably quit and surrender the Equipment for such Phase or any
such portion thereof to the Lessor and either (i) deliver possession of such
Equipment to the Lessor or (ii) allow Lessor or its agents or assigns to enter
onto the Applicable Site thereof to remove any and all of such Equipment at the
expense of the Lessee, and neither the Lessee nor any Person claiming through
or under the Lessee shall thereafter be entitled to possession or to remain in
possession of such Equipment or any portion thereof but shall forthwith
peaceably quit and surrender such Equipment to the Lessor.

                  (f)   At any time after the repossession of the Equipment for
any Phase or any portion thereof, whether or not this Lease shall have been
cancelled or terminated as to such Equipment, the Lessor may (but shall be
under no obligation to) relet such Equipment or the applicable portion thereof
on not less than 10 days notice to the Lessee, for such term or terms and on
such conditions and for such usage as the Lessor in its sole and absolute
discretion may determine. The Lessor may collect and receive any rents payable
by reason of such reletting (subject to the provisions of Section 26(d)), and
the Lessor shall not be liable for any failure to relet the Equipment or for
any failure to collect any rent due upon any such reletting.

                  (g)   The remedies herein provided in case of an Event of
Default are in addition to, and without prejudice to, the Lessee's continuing
obligations under Section 15(b)(ii), and shall not be deemed to be exclusive,
but shall be cumulative and shall be in addition to all other remedies existing
at law, in equity or in bankruptcy. Lessor may exercise any remedy without
waiving its right to exercise any other remedy hereunder or existing at law, in
equity or in bankruptcy.

                  (h)   No waiver by the Lessor hereunder of any Default or
Event of Default shall constitute a waiver of any other or

                                       29

<PAGE>   36

subsequent Default or Event of Default. To the extent permitted by applicable
law, the Lessee waives any right it may have at any time to require the Lessor
to mitigate the Lessor's damages upon the occurrence of a Default or Event of
Default by taking any action or exercising any remedy that may be available to
the Lessor, the exercise of remedies hereunder being at the discretion of the
Lessor.

         Section 18.    Change in the Lessee's Name or Structure. The Lessee
will not change its name, identity or corporate structure (including, without
limitation, by any merger, consolidation or sale of substantially all of its
assets) without notifying Lessor of such change in writing at least thirty (30)
days prior to the effective date of such change.

         Section 19.    Inspection; Right to Enter Premises of the Lessee. The
Lessor or its authorized representatives may (but without any obligation to do
so) (i) enter upon any Applicable Site or any premises of the Lessee at
reasonable times upon reasonable advance notice in order to inspect the
Equipment located thereon (subject to compliance with applicable safety
requirements of the Lessee and applicable Governmental Requirements) and to
inspect, audit and make copies of all documents and instruments in the
possession of the Lessee (including without limitation records relating to
Equipment Cost and Book Value of any of the Equipment) relating to any of the
Equipment that are reasonably necessary or appropriate for the Lessor or such
authorized representatives to determine the truth and accuracy of any schedule,
annex, exhibit or representation delivered or made hereunder or under any other
Operative Document, or compliance by the Lessee with any of the agreements
contained herein or in any other Operative Document, and (ii) discuss the
condition, compliance with Governmental Requirements, and performance of the
Equipment and the business of the Lessee with the Authorized Officers of the
Lessee.

         Section 20.    Right to Perform the Lessee's Covenants. Subject to
Section 13, if the Lessee shall fail to make any payment or perform any act
required to be made or performed by it hereunder, the Lessor, upon notice to or
demand upon the Lessee but without waiving or releasing any obligation or
Default or Event of Default, may (but shall be under no obligation to) at any
time thereafter make such payment or perform such act for the account and at
the expense of the Lessee as, at the Lessor's sole discretion, may be necessary
or appropriate therefor and, upon the occurrence and during the continuance of
a Cancellation Event

                                       30

<PAGE>   37

or Termination Event with respect to any Phase, may enter upon the Applicable
Site thereof for such purpose and take all such action thereon as, at the
Lessor's sole discretion, may be necessary or appropriate therefor. No such
entry shall be deemed a repossession by the Lessor. All sums so paid by the
Lessor and all costs and expenses (including, without limitation, reasonable
attorneys' fees and expenses so incurred) shall be paid by the Lessee to the
Lessor on demand as Supplemental Rent.

         Section 21.    Participation by Co-Lessees or Sublessees;
Participations by Lessor.

                  (a)   Except as otherwise permitted in this Section 21, the
Lessee may not assign its rights or obligations under this Lease without the
prior consent of the Lessor.

                  (b)   The Lessee may, so long as no Default, Event of Default,
Cancellation Event or Termination Event shall have occurred and be continuing,
enter into documentation assigning all or any part of this Lease and, as
necessary, the other Operative Documents, to another Person, so long as (i)
such documentation evidences the undertaking of such Person (a "Co-Lessee") to
be responsible for all or certain obligations of the Lessee and, if approval of
the Lessor is granted as contemplated in clause (iii) below, the attendant
reduction in the obligations of the Lessee hereunder, (ii) such documentation
expressly states that such assignment is subject and subordinate to the terms
of this Lease and the Liens created hereby and (iii) unless the Lessor has
granted its prior written approval, acting in its sole discretion, of such
assignment to said Co-Lessee and such documentation (it being understood that
the Lessor may for any reason whatsoever elect not to grant such approval), the
Lessee shall remain primarily liable for all obligations of the tenant of all
of the Equipment under this Lease. The Lessee will furnish promptly to the
Lessor copies of all such documentation entered into by the Lessee from time to
time. Any assignment made otherwise than as expressly permitted by this Section
21(b) shall be null and void and of no force and effect.

                  (c)   The Lessee may, from time to time, (i) pursuant to a
sublease in substantially the form of Exhibit F, which hereby is approved by
the Lessee, and subject to the terms and conditions contained therein, or (ii)
otherwise so long as no Default, Event of Default, Cancellation Event or
Termination Event shall have occurred and be continuing, enter into a sublease
as to any Phase and such other documentation as may be

                                       31

<PAGE>   38

necessary with one or more Persons (each a "Sublessee"). In any event, any
documentation executed by the Lessee in connection with the subletting of any
of the Equipment (A) shall expressly state that such sublease is subject and
subordinate to the terms of this Lease and the Liens created hereby and (B)
shall not provide for a sublease term ending after the then current Scheduled
Lease Termination Date for such Phase. The Lessee will furnish promptly to the
Lessor copies of all subleases and related documentation entered into by the
Lessee from time to time. No sublease permitted by the terms hereof will reduce
in any respect the obligations of the Lessee hereunder, it being the intent of
the Lessee and the Lessor that the Lessee be and remain directly and primarily
liable as a principal for its obligations hereunder. Any sublease not complying
with clauses (A) and (B) above shall be null and void and of no force or
effect.

                  (d)   The Lessor may from time to time, without consent of or
notice to the Lessee, sell participations in the interests of the Lessor in
this Lease and the other Operative Documents to one or more Participants upon
such terms and conditions as it shall determine; provided, that: (i) no
Participant shall be entitled to receive any greater payment under Section
27(c) than the Lessor would have been entitled to receive with respect to the
rights transferred, unless such transfer is made with the Lessee's prior
written consent or by reason of the provisions of Section 27(b) or (c)
requiring the Lessor to designate a different Lending Office under certain
circumstances or at a time when the circumstances giving rise to such greater
payment did not exist; (ii) the Lessor shall include in the participation
agreement with each Participant the covenant of each Participant to take no
position in conflict with the statements of the intent of the Lessor and the
Lessee in Section 25 of this Lease or otherwise in conflict with the provisions
thereof; and (iii) in no event shall the Lessor be obligated to the Participant
under the participation agreement to take or refrain from taking any action
hereunder except that the Lessor may agree in the participation agreement that
it will not, without the consent of the Participant, agree to (A) the increase
or extension of the term of the Lease as to any Phase, (B) the extension of any
date fixed for the payment of Rent, (C) the reduction of any payment of Rent or
(D) the release of any Equipment, except as specifically provided by this
Lease.

         Section 22.    Notices.  Except as otherwise provided herein, all
notices and other communications provided for hereunder shall be in writing
(including telecopier and other

                                       32

<PAGE>   39

readable communication) and mailed by certified mail, return receipt requested,
telecopied or otherwise transmitted or delivered, if to the Lessee, Flowers
Industries, Inc., 200 U.S. Highway 10 South, P. O. Box 1338, Thomasville, GA
31799, Attention: C. Martin Wood, III, Telecopier: (912) 225-3808; if to the
Lessor, at 301 North Main Street, P.O. Box 3099, Winston-Salem, NC 27150,
Attention: Jonathan E. Head, Vice President/Operations Manager, Telecopier:
(910) 770-6033; or, as to either party, at such other address as shall be
designated by such party in a written notice to the other party. All such
notices and communications shall, if so mailed, telecopied or otherwise
transmitted, be effective when received, if mailed, or when the appropriate
answer back or other evidence of receipt is given, if telecopied or otherwise
transmitted, respectively. A notice received by the Lessor by telephone shall
be effective if the Lessor believes in good faith that it was given by an
authorized representative of the Lessee and acts pursuant thereto,
notwithstanding the absence of written confirmation or any contradictory
provision thereof.

         Section 23.    Amendments and Waivers. The provisions of this Lease
may from time to time be amended, modified or waived only if such amendment,
modification or waiver is in writing and consented to by the Lessee and the
Lessor and, if applicable, in accordance with Section 22.

         Section 24.    Severability. Any provision of this Lease which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         Section 25.    Federal Income Tax Considerations. It is the
understanding of the parties that for income tax purposes this transaction will
be treated as a financing and the Lessee will be treated as the owner of all of
the Equipment and the Lessee and the Lessor agree not to take any action
inconsistent with such treatment, subject to the following sentence.
Notwithstanding anything in this Section to the contrary, the Lessor retains
the right to assert that it is the owner of the Equipment subject to this Lease
for income tax purposes in the event that there is a determination (within the
meaning of Section 1313 of the Internal Revenue Code of 1986, as amended, or
with respect to state or local income tax, a comparable determination under
state or local

                                       33

<PAGE>   40

law) that the Lessee is not to be treated as the owner of the Equipment.

         Section 26.    Other Provisions. In order to protect the rights and
remedies of the Lessor and the Lessee both during the term of this Lease and
following a Default, an Event of Default, a Termination Event or a Cancellation
Event, and for the purposes of Federal, state and local income and ad valorem
taxes, state and local sales taxes, documentary stamp and intangibles taxes and
other taxes relating to or assessable as a result of the execution, delivery or
recording of any of the Operational Documents and for purposes of Title 11 of
the United States Code (or any other applicable Federal, state or local
insolvency, reorganization, moratorium, fraudulent conveyance or similar law
now or hereafter in effect for the relief of debtors), the parties hereto
intend that (i) this Lease be treated as the repayment and security provisions
of a loan by the Lessor to the Lessee in the face amount of the Equipment Cost
for all Phases, (ii) all payments of Rent and the Termination Value for any
Phase be treated as payments of principal, interest and other amounts owing
with respect to such loan, respectively, (iii) the Lessee should be treated as
entitled to all benefits of ownership of the Equipment or any part thereof,
(iv) this Lease be treated as a security agreement or other similar instrument
(the "Security Agreement") from the Lessee, as debtor to the Lessor, as secured
party, encumbering the Equipment and all personal property comprising the
Equipment and that the Lessee, as debtor, hereby grants to the Lessor, as
secured party (the "Secured Party") a first and prior Lien on and security
interest in the Equipment and all proceeds therefrom, in each case being
effective as of the date of this Lease. In such event, the Lessor shall have
all of the rights, powers and remedies of a secured party available under
applicable law, including, without limitation, judicial or nonjudicial
foreclosure or power of sale, as and to the extent available under applicable
law, and the amounts secured by the Liens and security interests shall be the
Basic Rent, Supplemental Rent, Termination Value and Final Rent Payment, and
all indemnification and other amounts payable under this Lease or any of the
other Operative Documents. The filing of any financing statement in connection
with this Lease shall be deemed to constitute the filing of a financing
statement to perfect the security interests in the Equipment as aforesaid to
secure the payment of all amounts due from time to time from the Lessee to the
Lessor under this Lease and the other Operative Documents. To the fullest
extent permitted by applicable law, the Lessor and the Lessee intend that the
Equipment be and remain at all times

                                       34

<PAGE>   41

personal property regardless of the manner or extent to which any of the
Equipment may be attached or affixed to any real property.

         This Security Agreement secures and shall be security for any and all
future advances made by Secured Party to the Lessee with respect to this Lease
or any of the other Operative Documents or the Equipment. Nothing contained
herein shall be deemed an obligation on the part of the Lessor to make any
further advances.

         In order to preserve the security interest provided for herein, each
of the Lessor and the Lessee agrees to abide by the following provisions with
regard to the Equipment (for purposes of this Section, hereinafter referred to
as "Collateral"):

                  (a)   Change in Location of Collateral or the Lessee. The
Lessee will notify the Secured Party on or before the date of any change in
location of the Collateral and will, on or before the date of any change in
location of the Collateral, prepare and file new or amended financing
statements as necessary so that the Secured Party shall continue to have a
first and prior perfected Lien (subject only to Permitted Liens) in such
Collateral after such change in location. The Lessee will give the Secured
Party thirty (30) days' prior written notice of any change in the location of
the Lessee's chief executive office or address.

                  (b)   Documents; Collateral in Possession of Third Parties. If
certificates of title or other documents evidencing ownership or possession of
the Collateral are issued or outstanding, the Lessee will cause the interest of
the Secured Party to be properly noted thereon and will, forthwith upon
receipt, deliver same to the Secured Party. If any Collateral is at any time in
the possession or control of any warehouseman, bailee, agent or independent
contractor, the Lessee shall notify such Person of the Secured Party's security
interest in such Collateral. Upon the Secured Party's request, the Lessee shall
instruct any such Person to hold all such Collateral for the Secured Party's
account subject to the Lessee's instructions, or, if an Event of Default shall
have occurred and be continuing, subject to the Secured Party's instructions.

                  (c)   Sale, Disposition or Encumbrance of Collateral. Except
for Permitted Liens, as permitted by any of the Operative Documents or with the
Secured Party's prior written consent, the Lessee will not in any way encumber
any of the Collateral (or permit or suffer any of the Collateral to be
encumbered) except

                                       35

<PAGE>   42

for Permitted Liens or sell, assign, lend, rent, lease or otherwise dispose of
or transfer any of the Collateral to or in favor of any Person other than the
Secured Party.

                  (d)   Proceeds of Collateral. Except as permitted by any of
the Operative Documents, the Lessee will deliver to the Secured Party promptly
upon receipt all proceeds delivered to the Lessee from the sale or disposition
of any Collateral. Upon any such sale or disposition, the Lessee shall be
entitled to (i) in the circumstances described in Section 15 (a)(ii)(B)(2)(y),
the amount determined pursuant thereto or (ii) in any other circumstances, any
surplus remaining after the payment of the Termination Value and the payment of
all expenses pursuant to Section 16. This Section shall not be construed to
permit sales or dispositions of the Collateral except as may be elsewhere
expressly permitted by this Lease or the other Operative Documents.

                  (e)   Further Assurances. Upon the request of the Secured
Party, the Lessee shall (at the Lessee's expense) execute and deliver all such
assignments, certificates, financing statements or other documents and give
further assurances and do all other acts and things as the Secured Party may
reasonably request to perfect the Secured Party's interest in the Collateral or
to protect, enforce or otherwise effect the Secured Party's rights and remedies
hereunder, all in form and substance satisfactory to the Secured Party.

                  (f)   Lease. The Lease will not be amended, supplemented or
modified without the written consent of the Secured Party. All payments under
the Lease shall be made only to such account as specified by the Secured Party.

         Section 27.    Yield Protection and Illegality

                  (a)   Basis for Determining Interest Rate Inadequate or
Unfair.

If on or prior to the first day of any Rental Period or Interim Rental Period
with respect to any Basic Rent or Interim Rent which is determined on the basis
of the LIBO Rate:

                        (i)   the Lessor determines that deposits in Dollars
         (in the applicable amounts), are not being offered in the relevant
         market for such Rental Period or Interim Rental Period, or

                                       36

<PAGE>   43

                        (ii)  the Lessor determines and give notice to the
         Lessee that, as a result of conditions in or generally affecting the
         London interbank eurodollar market, the rates for Basic Rent or
         Interim Rent, as applicable, determined on the basis of the LIBO Rate
         for any Rental Period or Interim Rental Period will not adequately and
         fairly reflect the cost to the Lessor of making, funding or
         maintaining the Equipment Cost giving rise to such Basic Rent or
         Interim Rent for any Equipment for such Rental Period or Interim
         Rental Period, the Lessor shall forthwith so notify the Lessee,
         whereupon,

                              (A) the Basic Rent or Interim Rent, as
                  applicable, for such Equipment for such Rental Period or
                  Interim Rental Period shall be determined on the basis of the
                  Base Rate,

                              (B) the obligation of the Lessor to fund any
                  Equipment Cost having Basic Rent or Interim Rent, as
                  applicable, or to continue to accrue Basic Rent or Interim
                  Rent, as applicable, based on the LIBO Rate shall be
                  suspended until the Lessor shall notify the Lessee that the
                  circumstances causing such suspension no longer exist, and

                              (C) unless the Lessee notifies the Lessor at least
                  two (2) Business Days before the date of funding of any
                  Equipment Cost for which notice has previously been given
                  that it elects not to cause the related Equipment to be
                  purchased on such date, Basic Rent or Interim Rent, as
                  applicable, relating to such Equipment Cost shall be
                  determined at a rate of interest equal to the Base Rate. Upon
                  the written request of the Lessee, the Lessor shall negotiate
                  with the Lessee for a reasonable period of time, as
                  determined in the Lessor's discretion, to develop a
                  substitute interest rate basis hereunder; provided, however,
                  (x) the Lessor and the Lessee make no representation,
                  warranty or covenant that any such agreement will be made,
                  and (y) any relevant Basic Rent or Interim Rent shall
                  continue to be determined based on the Base Rate during the
                  continuance of any such negotiations and thereafter should no
                  alternate interest rate be agreed to by the necessary
                  parties.

                                       37

<PAGE>   44

                  (b)   Illegality. If, after the date hereof, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof (any such agency being referred to as a "Banking
Authority" and any such event being referred to as a "Change of Law"), or
compliance by the Lessor (or its Applicable Funding Office) with any request or
directive (whether or not having the force of law) of any Banking Authority
shall make it unlawful or impossible for the Lessor (or its Applicable Funding
Office) to determine Basic Rent or Interim Rent for the making, maintaining or
funding of the Equipment Cost for any Equipment based on the LIBO Rate, the
Lessor shall forthwith give notice thereof to the Lessee, whereupon until the
Lessor notifies the Lessee that the circumstances giving rise to such
suspension no longer exist, the obligation of the Lessor determine Basic Rent
or Interim Rent for the making, maintaining or funding of the Equipment Cost
for any Equipment based on LIBO Rate shall be suspended. Before giving any
notice to the Lessee pursuant to this Section, the Lessor shall designate a
different Applicable Funding Office if such designation will avoid the need for
giving such notice and will not, in the judgment of the Lessor, be otherwise
disadvantageous to the Lessor. If the Lessor shall determine that it may not
lawfully continue to determine Basic Rent or Interim Rent for the making,
maintaining or funding of any Equipment Cost for any Equipment based on the
LIBO Rate to the end of the Rental Period or Interim Rental Period and shall so
specify in such notice, the Basic Rent or Interim Rent for such Rental Period
or Interim Rental Period shall immediately be converted to and be determined
based on the Base Rate, and the Lessee shall immediately pay to the Lessor any
amounts payable pursuant to Section 27(c).

                  (c)   Increased Cost and Reduced Return.

                        (i)   If after the date hereof, a Change of Law or
         compliance by the Lessor (or its Applicable Funding Office) with any
         request or directive (whether or not having the force of law) of any
         Banking Authority:

                              (A) shall impose, modify or deem applicable
                  any reserve, special deposit or similar requirement
                  (including, without limitation, any such requirement imposed
                  by the Board of Governors of the Federal Reserve System
                  (including any Euro-Dollar Reserve Requirement) against
                  assets of, deposits with or for

                                       38

<PAGE>   45

                  the account of, or credit extended by, the Lessor (or
                  its Applicable Funding Office); or

                              (B) shall impose on the Lessor (or its
                  Applicable Funding Office) or on the relevant interbank
                  market any other condition affecting the Basic Rent or
                  Interim Rent, to the extent it is determined based on the
                  LIBO Rate;

         and the result of any of the foregoing is to increase the cost to the
         Lessor (or its Applicable Funding Office) of determining Basic Rent or
         Interim Rent based on the LIBO Rate, or to reduce the amount of any
         sum received or receivable by the Lessor (or its Applicable Funding
         Office) under this Lease or under any other Operative Document with
         respect thereto, by an amount deemed by the Lessor to be material,
         then, within 15 days after demand by the Lessor, the Lessee shall pay
         to the Lessor such additional amount or amounts as will compensate the
         Lessor for such increased cost or reduction; provided, however, that
         the Lessee shall not be responsible to the Lessor for any increased
         cost or reduced return under this Section 27(c)(i) which accrued at
         any time before that date which is 90 calendar days prior to the date
         upon which the Lessee is notified of same.

                        (ii)  If the Lessor shall have determined that after
         the date hereof the adoption of any applicable law, rule or regulation
         regarding capital adequacy, or any change therein, or any change in
         the interpretation or administration thereof, or compliance by the
         Lessor (or its Applicable Funding Office) with any request or
         directive regarding capital adequacy (whether or not having the force
         of law) of any Banking Authority, has or would have the effect of
         reducing the rate of return on the Lessor's capital as a consequence
         of its obligations hereunder to a level below that which the Lessor
         could have achieved but for such adoption, change or compliance
         (taking into consideration the Lessor's policies with respect to
         capital adequacy) by an amount deemed by the Lessor to be material,
         then from time to time, within 15 days after demand by the Lessor, the
         Lessee shall pay to the Lessor such additional amount or amounts as
         will compensate the Lessor for such reduction, subject to the proviso
         at the end of Section 27(c)(i); provided, however, that the Lessee
         shall not be responsible to the Lessor for any additional amount under
         this Section 27(c)(ii) which accrued at any time before that

                                       39

<PAGE>   46

         date which is 90 calendar days prior to the date upon which the Lessee
         is notified of same.

                        (iii) The Lessor will promptly notify the Lessee of
         any event of which it has knowledge, occurring after the date hereof,
         which will entitle the Lessor to compensation pursuant to and subject
         to the limitations contained in this Section 27(c) and will designate
         a different Applicable Funding Office if such designation will avoid
         the need for, or reduce the amount of, such compensation and will not,
         in the judgment of the Lessor be otherwise disadvantageous to the
         Lessor. A certificate of the Lessor claiming compensation under this
         Section 27(c) and setting forth the additional amount or amounts to be
         paid to it hereunder shall be conclusive in the absence of manifest
         error. In determining such amount, the Lessor may use any reasonable
         averaging and attribution methods. Nothing in this Section 27(c) shall
         require the Lessor to disclose any information about its tax affairs
         or interfere with, limit or abridge the right of the Lessor to arrange
         its tax affairs in any manner in which it desires.

                        (iv)  The Lessor, in claiming increased costs or
         other amounts under this Section 27(c), shall, at the time of making
         any claim for such increased cost or other amount and as a condition
         precedent to the obligation of the Lessee to reimburse the same,
         certify to the Lessee in writing that the Lessor, as a matter of
         policy, is seeking reimbursement of similar increased costs and other
         amounts from its credit obligors generally for similar types of
         credits.

                        (v)   The provisions of this Section 27(c) shall (i)
         subject to the provisions of Section 21(d)(i), be applicable with
         respect to any Participant, assignee or other transferee, and any
         calculations required by such provisions shall be made based upon the
         circumstances of such Participant, assignee or other transferee and
         (ii) constitute a continuing agreement and shall survive for a period
         of one year after the termination of this Agreement and the payment in
         full all Rent.

                  (d)   Payments and Computations. Each determination by the
Lessor of an interest rate or yield with respect to Basic Rent or Interim Rent,
or an increased cost or increased capital or of illegality hereunder shall be
conclusive and binding for

                                       40

<PAGE>   47

all purposes (absent manifest error) if made reasonably and in good faith.

                  (e)   Compensation. Upon the request of the Lessor, delivered
to the Lessee, the Lessee shall pay to the Lessor such amount or amounts as
shall compensate the Lessor for any loss, cost or expense (but not loss of
margin or profit) incurred by the Lessor as a result of:

                        (i)   any payment or prepayment (including by reason
         of the occurrence of a Lease Termination Date) of a Scheduled Amount
         or other Equipment Cost or Termination Value on a date other than the
         last day of a Rental Period or Interim Rental Period, or any failure
         to prepay a Scheduled Amount or other Equipment Cost on the date
         specified for such prepayment by the Lessee in a notice to the Lessor;
         or

                        (ii)  any failure by the Lessee to cause the funding
         of the purchase of Equipment pursuant to the Agency Agreement to occur
         on the date for such funding as specified in the applicable notice
         delivered pursuant to the Agency Agreement (other than by reason of a
         default by the Lessor);

such compensation to include, without limitation, as applicable: an amount
equal to the excess, if any, of (x) the amount of Basic Rent or Interim Rent
which would have accrued on the amount so paid or prepaid or not prepaid or
with respect to which such funding did not occur for the period from the date
of such payment, prepayment or failure to prepay or fund to the last day of the
then current Rental Period or Interim Rental Period for such payment of Basic
Rent or Interim Rent, in the case of a failure to prepay or cause such funding,
the Rental Period or Interim Rental Period for such Basic Rent or Interim Rent
which would have commenced on the date of such failure to prepay or cause such
funding) determined based on the applicable rate for Basic Rent or Interim Rent
provided for herein over (y) the rate relating to such Basic Rent or Interim
Rent (as reasonably determined by the Lessor), the Lessor would have paid on
deposits in Dollars of comparable amounts having terms comparable to such
period placed with it by leading banks in the London interbank market;
provided, that (i) the Lessee shall be responsible to the Lessor only for its
actual costs incurred in connection with same (i.e. not for any lost profits
which were expected over the course of such Rental Period or Interim Rental
Period), (ii) the Lessor shall take reasonable efforts to mitigate its damages
in

                                       41

<PAGE>   48

connection with same, and (iii) the Lessee shall not be responsible to the
Lessor for such losses in excess of those amounts as the Lessor would have
incurred had it funded or maintained the related Equipment Cost in the London
interbank market.

         Section 28.    Conditions Precedent

                  (a)   Closing; Conditions Precedent to Effectiveness of this
Lease. On the Closing Date, at such place as the parties hereto shall agree,
this Lease and each of the Operative Documents shall be duly executed and
delivered by the parties to such documents. This Lease shall become effective
when (i) it shall have been executed by the Lessor and the Lessee, and (ii) the
Lessor shall, on or before October 20, 1995, have received the following, each
being in form and substance satisfactory to the Lessor; provided, that the
Lessee may deliver the insurance certification referred to in clause (iv) below
by October 27, 1995 (which must be reasonably satisfactory in form and
substance to the Lessor), and failure to deliver such certification on or
before October 20, 1995 shall not prevent this Lease from becoming effective:

                        (i)   Certificates of the Lessee. A Certificate of the
         Secretary or Assistant Secretary of the Lessee setting forth (i)
         resolutions of its board of directors authorizing the execution,
         delivery and performance of the obligations contained in this Lease
         and the other Operative Documents to which it is a party, (ii) the
         officers of the Lessee specified in such Secretary's Certificates that
         are authorized to sign this Lease and the other Operative Documents to
         which the Lessee is a party and, until replaced by another officer or
         officers duly authorized for that purpose, to act as its respective
         representative for the purposes of signing documents and giving
         notices and other communications in connection with this Lease and the
         Operative Documents to which it is a party and (iii) true and correct
         copies of the articles or certificate of incorporation and the bylaws
         of the Lessee. The Lessor may conclusively rely on such certificate
         until the Lessor receives notice in writing from the Lessee to the
         contrary.

                        (ii)  Opinion of the Lessee's Counsel. A favorable
         opinion or opinions of Assistant General Counsel to the Lessee, in
         substantially the form of Exhibit D, and

                                       42

<PAGE>   49

         as to such other matters as the Lessor may reasonably request.

                        (iii) Execution and Delivery of Operative Documents.
         Each of the other Operative Documents.

                        (iv)  Insurance Certification. The Lessor shall have
         received a certificate by a firm of independent insurance brokers or
         consultants chosen by the Lessee setting forth the insurance obtained,
         and to be obtained pursuant to this Lease, with respect to the
         Equipment and the Lessee's operations with respect thereto.

                        (v)   Annual Financial Statements.  The Lessor shall
         have received the financial statements described in Section
         29(k).

                        (vi)  Other. Such other documents as the Lessor or
         special counsel to the Lessor may reasonably request.

                  (b)   Conditions to Commencement of Lease for each Phase. The
commencement of this Lease as to each Phase is subject to (i) the occurrence of
the Acquisition Date as to the first item of Equipment in such Phase, (ii)
there being no more than 8 Phases under this Lease, (iii) the anticipated
actual Equipment Cost (not including Soft Costs) for any Phase not being less
than $2,000,000, and (iv) the satisfaction of the other conditions set forth in
Section 28(c) as to such first item of Equipment (such date being the "Phase
Commencement Date" as to such Phase.

                  (c)   Conditions to addition of any Equipment in each Phase.
The addition of any Equipment to this Lease is subject to the satisfaction of
each of the following conditions as to such Equipment:

                        (i)   Acquisition Date. The Acquisition Date shall
         have occurred as to such Equipment. The term "Acquisition Date" with
         respect to any item of Equipment shall mean the date on which each of
         such conditions has been satisfied (A) the Lessor shall have paid the
         Equipment Cost therefor and shall have received bills of sale or other
         evidence of ownership thereof, taking good and marketable title
         thereto, free and clear of all liens and encumbrances of third
         parties, pursuant to the Agency Agreement, (B) the Lessor shall have
         received copies of all Related Contracts, and all

                                       43

<PAGE>   50

         other contracts entered into in connection with the acquisition,
         development and installation of the Equipment, pursuant to the Agency
         Agreement (C) all Permits that are or will become Applicable Permits
         with respect to such Phase and the Applicable Site shall have been
         obtained, except Applicable Permits customarily obtained or which are
         permitted by Governmental Requirements to be obtained after the
         acquisition of the Equipment (in which case the Lessee, having
         completed all appropriate due diligence in connection therewith
         pursuant to the Agency Agreement, shall have no reason to believe that
         such Permits will not be granted in the usual course of business prior
         to the date that such Permits are required by Governmental
         Requirements), and such obtained Permits shall be in proper form, in
         full force and effect and not subject to any appeal or other
         unsatisfied contest that may allow modification or revocation thereof,
         (D) the Lessor shall have received evidence of perfection under local
         law of its ownership of the Equipment subject to a Lease intended as
         security and of filing of protective financing statements under
         applicable local law, properly executed by the Lessee, evidencing a
         first priority, perfected interest in the Equipment in favor of the
         Lessor as security for payment by the Lessee of all amounts, and the
         performance of all obligations, of the Lessee under the Lease, (E) the
         Lessor shall have received a Certificate of Acceptance in
         substantially the form of Exhibit B attached hereto and by reference
         made a part hereof from the Lessee with respect to such Equipment and
         (F) the Lessor shall have received a Lease Supplement in substantially
         the form of Exhibit C attached hereto and by reference made a part
         hereof from the Lessee with respect to such Equipment.

                        (ii)  No Default. The fact that immediately before
         and after the Acquisition Date for such Equipment, no Default or Event
         of Default shall have occurred and be continuing.

                        (iii) Accuracy of Representations, etc. The
         representations and warranties of the Lessee contained in this Lease
         and the other Operative Documents to which it is a party, are true and
         correct in all material respects on and as of the Acquisition Date for
         such Equipment (except for any representations which were correct on
         the date of this Lease but are not correct on such Acquisition Date
         because of a change permitted by the terms of this Lease or the
         Operative Documents).

                                       44

<PAGE>   51

                        (iv)  Casualties. Neither the Equipment in such Phase
         nor the Applicable Site thereof shall have suffered (A) a Loss Event
         or (B) a Casualty Occurrence other than a Casualty Occurrence for
         which a plan acceptable to the Lessor for replacing, or causing to be
         replaced, the portions of Equipment that are the subject of such
         Casualty Occurrence has been provided to the Lessor.

                        (v)   No Material Adverse Change or Effect.  No
         material adverse change shall have occurred in the financial condition
         of the Lessee and its Subsidiaries on a consolidated basis since the
         date of the most recent Fiscal Quarter for which a financial statement
         of the Lessee was delivered to the Lessor and no event, act, condition
         or occurrence shall exist or have occurred that has had, or would
         reasonably be expected to have, a Material Adverse Effect.

                        (vi)  Taxes, Filings, Recordings. All filings or
         recordings reasonably considered necessary or desirable by the Lessor
         have been completed and all taxes and fees in connection therewith,
         and all Impositions with respect to the Equipment that are then due
         and payable, shall have been paid by the Lessee.

Each presentation of a Lease Supplement hereunder shall be deemed to be a
representation and warranty by the Lessee on the Acquisition Date relating
thereto as to the facts specified in paragraphs (ii), (iii), (iv), (v), and
(vi) of this Section 28(b).

         Section 29.    The Lessee's Representations and Warranties

The Lessee represents and warrants to the Lessor that:

                  (a)   Corporate Existence and Power. The Lessee is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Georgia. The Lessee is duly qualified to transact business
in every jurisdiction where, by the nature of its business, such qualification
is necessary, except for any failure to comply with the foregoing which does
not have a Material Adverse Effect, and has all corporate powers and all
government authorizations, licenses, consents and approvals required to engage
in its business and operations as now conducted, except for any failure to
comply with the foregoing which does not have a Material Adverse Effect.

                                       45

<PAGE>   52

                  (b)   Corporate and Governmental Authorization. The execution,
delivery and performance by the Lessee of this Lease and the other Operative
Documents to which it is a party (i) are within its corporate powers, (ii) have
been duly authorized by all necessary corporate action, (iii) require no action
by or respect of or filing with, any governmental body, agency or official,
(iv) do not contravene or constitute a default under, any material provision of
applicable law or regulation or of the certificate of incorporation or by-laws
of the Lessee or, to the best of the Lessee's knowledge, any material agreement
relating to Debt, judgment, injunction, order, decree or other instrument
relating to Debt binding upon the Lessee or any Subsidiary of the Lessee and
(v) do not result in the creation or imposition of any Lien on any asset of the
Lessee or any Subsidiary of the Lessee or on any of the Equipment, except in
favor of the Lessor.

                  (c)   Binding Effect. This Lease and the Operative Documents
to which it is a party constitutes a valid and binding agreement of the Lessee,
enforceable in accordance with their respective terms, provided that the
enforceability hereof and thereof is subject in each case to general principles
of equity and to bankruptcy, insolvency and similar laws affecting the
enforcement of creditor's rights generally.

                  (d)   No Litigation. Except as may be disclosed in any annual,
quarterly or monthly reports which the Lessee has filed with the Securities and
Exchange Commission, there is no action, suit or proceeding pending, or to the
knowledge of the Lessee, threatened, against or affecting the Lessee or any
Subsidiary of the Lessee before any court or arbitrator or any governmental
body, agency or official which could have a Material Adverse Effect or which in
any manner draws into question the validity of or could impair in any material
respect the ability of the Lessee to perform its obligations under this
Agreement or any of the Operative Documents executed by the Lessee.

                  (e)   Compliance with Laws. The Lessee and, to the best of the
Lessee's knowledge, each Material Subsidiary, is in compliance with all
applicable laws, regulations and similar requirements of governmental
authorities, including, without limitation, ERISA, Environmental Requirements
and payments of taxes, except where such compliance is being contested in good
faith through appropriate proceedings or does not have a Material Adverse
Effect.

                                       46

<PAGE>   53

                  (f)   Ownership of Property; Liens. The Lessee has title to
or leasehold or other interests in its material properties sufficient for the
conduct of its business, and none of such property is subject to any Lien
except Permitted Liens.

                  (g)   No Default. Neither the Lessee nor any of the Lessee's
Subsidiaries is in default under or with respect to any agreement, instrument
or undertaking to which it is a party or by which it or any of its property is
bound which could have or cause a Material Adverse Effect. No Default or Event
of Default has occurred and is continuing.

                  (h)   Full Disclosure. The Lessee's annual report on Form 10-K
for the fiscal year ended at June 30, 1995, a copy of which has been furnished
by the Lessee to the Lessor, did not, as of the date such Form 10-K was filed
with the Securities and Exchange Commission, contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading and (b) from the date of filing of the Lessee's annual report on
Form 10-K for the fiscal year ended on June 30, 1995 through the date hereof,
the Lessee has not filed a current report on Form 8-K with the Securities and
Exchange Commission and, as of the date hereof, no event or condition exists
which would require such filing by the Lessee pursuant to the Securities
Exchange Act of 1934, as amended, except for any such event or condition which
has heretofore been disclosed in writing to the Lessor by delivery to the
Lessor of a Form 8-K.

                  (i)   Capital Stock. All Capital Stock, debentures, bonds,
notes and all other securities of the Lessee presently issued and outstanding
are validly and properly issued in accordance with all applicable laws in all
material respects, including but not limited to, the "Blue Sky" laws of all
applicable states and the federal securities laws, except to the extent any
failure with respect thereto would not have or cause a Material Adverse Effect.

                  (j)   Margin Stock. The Lessee is not engaged principally, or
as one of its important activities, in the business of purchasing or carrying
any Margin Stock.

                  (k)   Annual Financial Statements. The audited consolidated
financial statements of the Lessee for its Fiscal Year ended July 1, 1995
fairly present, as of the date thereof,

                                       47

<PAGE>   54

in conformity with GAAP, the consolidated financial position of the Lessee and
its Consolidated Subsidiaries as of such dates and their consolidated results
of operations and cash flows for such period stated.

         Section 30.    Covenants

         The Lessee covenants and agrees with the Lessor to comply with the
following covenants until either (i) the Equipment for all Phases has been
purchased by the Lessee (or one of its Affiliates) for the Termination Value
therefor, (ii) this Lease has been terminated, the Equipment for all Phases has
been returned to the Lessor and the Termination Value or the Final Rent
Payment, as the case may be, and all other amounts payable under this Lease and
the other Operative Documents upon such occurrence have been paid in full:

                  (a)   Information.  The Lessee will deliver to the Lessor:

                  (i)   as soon as available and in any event within 120 days
         after the end of each Fiscal Year, a consolidated balance sheet of the
         Lessee and its Consolidated Subsidiaries as of the end of such Fiscal
         Year and the related consolidated statements of income, shareholders'
         equity and cash flows for such Fiscal Year, setting forth in each case
         in comparative form the figures for the previous fiscal year, all
         certified by Price Waterhouse LLP or other independent public
         accountants of nationally recognized standing, with such certification
         to be free of exceptions and qualifications not acceptable to the
         Lessor;

                  (ii)  as soon as available and in any event within 60 days
         after the end of each of the first 3 Fiscal Quarters of each Fiscal
         Year, a consolidated balance sheet of the Lessee and its Consolidated
         Subsidiaries as of the end of such Fiscal Quarter and the related
         statement of income and statement of cash flows for such Fiscal
         Quarter and for the portion of the Fiscal Year ended at the end of
         such Fiscal Quarter, setting forth in each case in comparative form
         the figures for the corresponding Fiscal Quarter and the corresponding
         portion of the previous Fiscal Year, all certified (subject to normal
         year-end adjustments) as to fairness of presentation, GAAP and
         consistency by the chief financial officer or the chief accounting
         officer of the Lessee;

                                       48

<PAGE>   55

                  (iii)   promptly upon the mailing thereof to the shareholders
         of the Lessee generally, copies of all financial statements, reports
         and proxy statements so mailed;

                  (iv)    promptly after request by the Lessor therefor, copies
         of all registration statements (other than the exhibits thereto and
         any registration statements on Form S-8 or its equivalent) filed with
         the Securities and Exchange Commissions, and promptly upon the filing
         thereof, annual or quarterly reports which the Lessee shall have filed
         with the Securities and Exchange Commission;

                  (v)     if and when any member of the Controlled Group (x)
         gives or is required to give notice to the PBGC of any "reportable
         event" (as defined in Section 4043 of ERISA) with respect to any Plan
         which might constitute grounds for a termination of such Plan under
         Title IV of ERISA, or knows that the plan administrator of any Plan
         has given or is required to give notice of any such reportable event,
         a copy of the notice of such reportable event given or required to be
         given to the PBGC; (y) receives notice of complete or partial
         withdrawal liability under Title IV of ERISA, a copy of such notice;
         or (z) receives notice from the PBGC under Title IV of ERISA of an
         intent to terminate or appoint a trustee to administer any Plan, a
         copy of such notice;

                  (vi)    promptly, and, in any event, within 15 Business Days
         after any officer of the Lessee becomes aware of any Default or Event
         of Default, a certificate of a senior financial or accounting officer
         or the chief financial officer or the chief accounting officer or the
         Treasurer of the Lessee setting forth the details thereof and the
         action which the Lessee is taking or proposes to take with respect
         thereto;

                  (vii)   promptly upon becoming aware of the occurrence of
         either a Loss Event or a Casualty Occurrence, or any other event or
         condition requiring notice under either Section 7 or Section 8 of this
         Lease, the Lessee shall give the Lessor written notice thereof, which
         notice shall specify the damage or loss to the Equipment in reasonable
         detail; and

                  (viii)  from time to time such additional information
         regarding the financial position or business of Lessor and

                                       49

<PAGE>   56

         the Subsidiaries of Lessor as the Lessor may reasonably request.

                  (b)   Maintenance and Inspection of Property, Books and
Records. The Lessee will keep books of record and account regarding this Lease
and shall maintain, on a current basis, books of proper record and account in
conformity with GAAP, consistently applied (to the extent applicable, and the
rules of the Security and Exchange Commission and the Financial Accounting
Standards Board), and keep copies of all Related Contracts and any amendments
thereto and the Equipment Cost of the Equipment for each Phase and of each
material item of Property comprising or included in the Equipment for each
Phase, and shall provide copies of the foregoing to the Lessor from time to
time on request at the Lessee's expense. The Lessee will permit representatives
of the Lessor (x) at the Lessor's expense and upon reasonable notice and at a
time reasonably convenient to the Lessee (but in any event within 10 days of
such notice) prior to the occurrence of a Default and (y) at the Lessee's
expense after the occurrence of a Default, to visit and inspect the Equipment
for any Phase and any Applicable Site and any of its properties, to examine and
make abstracts from any of its books and records and to discuss its affairs,
finances and accounts with its officers, employees and independent public
accountants. The Lessee agrees to cooperate and assist in such visits and
inspections, in each case at such reasonable times and as often as may
reasonably be desired.

                  (c)   Maintenance of Existence. The Lessee shall maintain its
existence and carry on the major part of its business in substantially the same
fields as such business is now carried on and maintained.

                  (d)   Consolidations, Mergers and Sales of Assets.  The
Lessee will not consolidate or merge with or into, or sell, lease or otherwise
transfer all or any substantial part of its Consolidated Total Assets to, any
other Person; provided that (a) the Lessee may merge with another Person if (i)
such Person was organized under the laws of the United States of America or one
of its states, (ii) the Lessee is the corporation surviving such merger and
(iii) immediately after giving effect to such merger, no Default shall have
occurred and be continuing, and (b) without limiting any other transfer of
assets which may not constitute a "substantial part" of the Consolidated Total
Assets of the Lessee, during any Fiscal Quarter, no transfer of assets of the
Lessee shall constitute a "substantial part" of the assets of the

                                       50

<PAGE>   57

Lessee if, on the date of such transfer either (A) (1) the aggregate assets to
be so transferred, when combined with all other assets transferred during such
Fiscal Quarter and the immediately preceding 7 Fiscal Quarters (the "Sold
Assets"), less the aggregate assets of the Lessee acquired during the same
period (the "Purchased Assets") constituted more than 25% of Consolidated Total
Assets at the end of the eighth Fiscal Quarter immediately preceding such
Fiscal Quarter; or (2) the Consolidated operating Profits during the 8 Fiscal
Quarters immediately preceding such Fiscal Quarter (the "Calculation Period")
contributed by the Sold Assets less the Consolidated Operating Profits
contributed by the Purchased Assets during the Calculation Period (calculated
as if the Purchased Assets had been acquired on the first day of the
Calculation Period) did not represent more than 25% of the Consolidated
Operating Profits during the Calculation Period; or (B) giving effect to the
disposition of such assets, (1) the book value of the Consolidated Total Assets
of the Lessee is not less than seventy-five percent (75%) of the book value of
the Consolidated Total Assets of the Lessee on July 1, 1995 and (2) the
Consolidated Operating Profits of the Lessee for the four Fiscal Quarter period
most recently ended prior to the date of such transfer are not less than
seventy-five percent (75%) of the Consolidated Operating Profits of the Lessee
for its Fiscal Year ending July 1, 1995.

                  (e)   Dissolution. The Lessee shall not be permitted to be
dissolved or liquidated, except through corporate reorganization to the extent
permitted by Section 30(d).

                  (f)   Use of Proceeds. The proceeds of fundings of the
Equipment Cost by the Lessor will be used solely to finance the acquisition of
the Equipment by the Lessor pursuant to the Agency Agreement, including the
enhancements and improvements to be made thereto and the design, renovation,
construction and installation thereof.

                  (g)   Compliance with Laws. The Lessee will comply in all
material respects with applicable laws (including but not limited to ERISA,
Environmental Requirements and payments of taxes), regulations and similar
requirements of governmental authorities (including but not limited to PBGC),
except where the necessity of such compliance is being contested in good faith
through appropriate proceedings or if failure to comply does not have a
Material Adverse Effect.

                                       51

<PAGE>   58

                  (h)   Insurance. The Lessee will maintain (either in the name
of the Lessor or the Lessee, as applicable), with financially sound and
reputable insurance companies, insurance on such of its property in at least
such amounts, and with such deductibles, and against at least such risks as are
usually insured against in the same general area by companies of established
repute engaged in the same or similar businesses. The Lessee will deliver or
cause to be delivered to the Lessor promptly upon request the Lessor, and in
any event on January 1st of each calendar year, commencing with July 1, 1996, a
certificate by a firm of independent insurance brokers or consultants chosen by
the Lessee and acceptable to the Lessor setting forth the insurance or
self-insurance obtained pursuant to Section 14, including, without limitation,
the amounts thereof, the names of the insurers and the property, hazards and
risks covered thereby, and certifying that all premiums then due and payable
thereon have been paid and that the same are in full force and effect, that the
Lessor has been named as additional insureds and loss payees, as their
interests may appear, under each such policy, and are not liable for payment of
premiums thereunder, that such policies may not be cancelled without at least
thirty (30) days prior notice to the Lessor with an opportunity to cure any
default thereunder.

                  (i)   Change in Fiscal Year. The Lessee will not change its
Fiscal Year without the consent of the Lessor, which shall not be unreasonably
withheld.

                  (j)   Maintenance of Property. The Lessee shall maintain and
preserve the Equipment in accordance with the requirements of this Lease. The
Lessee shall maintain and preserve all of its properties and assets, in good
operating condition, ordinary wear and tear excepted, except where any failure
would not have or cause a Material Adverse Effect.

                  (k)   Environmental Notices. The Lessee shall furnish to the
Lessor prompt written notice of all Environmental Liabilities, pending or
overtly threatened Environmental Proceedings, Environmental Notices,
Environmental Judgments and Orders, and Environmental Releases of which the
Lessee shall have received actual notice or have actual knowledge at, on, in,
under or in any way affecting any of the Equipment or Applicable Sites, if the
amount of liability or of remediation cost to the Lessor or the Lessee is or
could reasonably be expected to have a Material Adverse Effect.

                                       2

<PAGE>   59

                  (l)   Environmental Matters. The Lessee shall, and shall not
knowingly permit any Third Party to, use, produce, manufacture, process, treat,
recycle, generate, store, dispose of, manage at, or otherwise handle, or ship
or transport to or from any of the Equipment or Applicable Sites any Hazardous
Materials except for Hazardous Materials used, produced, manufactured,
processed, treated, recycled, generated, stored, disposed of, managed, or
otherwise handled amounts in the ordinary course of business or of management
or maintenance of the Equipment or the Applicable Sites in compliance with all
applicable Environmental Requirements, except to the extent that failure to
comply would not have a Material Adverse Effect.

                  (m)   Environmental Release. The Lessee agree that upon its
becoming aware of the occurrence of an Environmental Release, except for any
Environmental Release which occurred in substantial compliance with all
Environmental Requirements, at or on the Equipment for any Phase or any
Applicable Site, it will act promptly to determine the extent of, and to take
such remedial action to eliminate, any such Environmental Release, whether or
not ordered or otherwise directed to do so by any Environmental Authority,
except to the extent that failure to take remedial action would not have a
Material Adverse Effect.

                  (n)   Transactions with Affiliates. The Lessee shall not enter
into, or be a party to, any transaction with any Affiliate of the Lessee (which
Affiliate is not a Subsidiary, other than a Person in which the Lessee or such
Subsidiary owns less than a majority interest and which, if it were a
Subsidiary, would not be a Material Subsidiary), except as permitted by law and
in the ordinary course of business and pursuant to reasonable terms which
either (x) are no less favorable to the Lessee than would be obtained in a
comparable arm's length transaction with a Person which is not an Affiliate or
(y) have been approved by a majority of the disinterested members of the Board
of Directors of the Lessee; provided, that the foregoing shall not affect the
ability of the Lessee to determine, in its sole discretion, the amount or form
of executive or directors compensation from time to time.

                  (o)   Further Assurances. The Lessee will, upon request of the
Lessor, cure promptly any defects in the due execution and delivery by it of
the Operative Documents, including this Lease. The Lessee at its expense will
promptly execute and deliver to the Lessor upon request all such other and
further documents, agreements and instruments in compliance with or
accomplishment

                                       53

<PAGE>   60

of the covenants and agreements of the Lessee in the Operative Documents,
including this Lease, or to further evidence and more fully describe the
Equipment, or to correct any item that the Lessee and the Lessor agree
constitutes an omission or error in the Operative Documents, or more fully to
state the existing security obligations set out herein or in any of the
Operative Documents, or to perfect, protect or preserve any Liens created
pursuant to any of the Operative Documents, or to make any recordings, to file
any notices, or obtain any consents, required by the terms of the Operative
Documents, all as may be reasonably necessary or appropriate in connection
therewith.

                  (p)   Liens, Etc. The Lessee covenants and agrees that it
shall not create, assume or suffer to exist, any Liens upon the Equipment for
any Phase, other than Permitted Liens.

                  (q)   Negative Pledge. Neither the Lessee nor any Consolidated
Subsidiary will create, assume or suffer to exist any Lien on any asset now
owned or hereafter acquired by it, except:

                  (i)   Liens existing on the date of this Lease securing
         Debt outstanding on the date of this Lease;

                  (ii)  any Lien existing on any asset of any corporation at the
         time such corporation becomes a Consolidated Subsidiary and not
         created in contemplation of such event;

                  (iii) any Lien on any asset securing Debt incurred or assumed
         for the purpose of financing all or any part of the cost of acquiring
         or constructing such asset, provided that such Lien attaches to such
         asset concurrently with or within 18 months after the acquisition or
         completion of construction thereof;

                  (iv)  any Lien on any specific fixed asset of any corporation
         existing at the time such corporation is merged or consolidated with
         or into the Lessee or a Consolidated Subsidiary and not created in
         contemplation of such event;

                  (v)   any Lien existing on any specific fixed asset prior to
         the acquisition thereof by the Lessee or a Consolidated Subsidiary and
         not created in contemplation of such acquisition;

                                       54

<PAGE>   61

                  (vi)     Liens securing Debt owing by any Subsidiary to the
         Lessee;

                  (vii)    any Lien arising out of the refinancing, extension,
         renewal or refunding of any Debt secured by any Lien permitted by any
         of the foregoing paragraphs of this Section 30(q), provided that (x)
         such Debt is not secured by any additional assets, and (y) the amount
         of such Debt secured by any such Lien is not increased;

                  (viii)   Liens imposed by any governmental authority for
         taxes, assessments or charges not yet delinquent or which are being
         contested in good faith and by appropriate proceedings if adequate
         reserves with respect thereto are maintained on the books of the
         Lessee or any of its Subsidiaries, as the case may be, in accordance
         with GAAP;

                  (ix)     carriers', warehousemen's, mechanics', materialmen's
         repairmen's or other like Liens arising in the ordinary course of
         business (whether or not statutory) which are not overdue for a period
         of more than 30 days or which are being contested in good faith and by
         appropriate proceedings, for which a reserve or other appropriate
         provisions, if any, as shall be require by GAAP shall have been made;

                  (x)      pledges or deposits to secure non-delinquent
         obligations under worker's compensation, unemployment insurance and
         other social security legislation;

                  (xi)     Liens on capital stock of or other ownership
         interests in any Person not a Subsidiary of the Lessee securing
         Indebtedness of such Person;

                  (xii)    Liens resulting from progress payments or partial
         payments under United States government contracts or subcontracts;

                  (xiii)   Liens arising from legal proceedings, so long as
         such proceedings are being contested in good faith by appropriate
         proceedings diligently conducted and so long as execution is stayed on
         all judgments resulting from any such proceedings;

                  (xiv)    Liens on real Property;

                                       55

<PAGE>   62

                  (xv)     Liens incidental to the conduct of its business or
         the ownership of its assets which (i) do not secure Debt and (ii) do
         not in the aggregate materially detract from the value of its assets
         or materially impair the use thereof in the operation of its business;
         and

                  (xvi)    Liens not otherwise permitted by the foregoing
         paragraphs of this Section 30(q) securing Debt (other than
         indebtedness under this Lease or the other Operative Documents) in an
         aggregate principal amount at any time outstanding not to exceed 5% of
         Tangible Net Worth.

Provided Liens permitted by the foregoing paragraphs (i) through (xvi) shall at
no time secure Debt in an aggregate amount greater than 25% of Tangible Net
Worth.

                  (r)      Guarantees. The Lessee shall not, except for
Guarantees related to Debt Liens expressly permitted by Section 30(q), after
the Closing Date incur or become liable on (whether by Guarantee or otherwise)
any Debt of another Person in excess of $20,000,000 except for (i) any
Guarantee of any of its Subsidiaries' obligations, (ii) endorsement of
negotiable instruments payable at sight for deposit or collection or similar
banking transactions in the usual course of business, (iii) Guarantees,
endorsements or other similar arrangements made by the Lessee to facilitate the
sale of loans made by the Lessee or any of its Subsidiaries to independent
contractors for the sale of distribution rights to distribute the Lessee's or
any of its Subsidiaries' products.

                  (s)      ERISA. The Lessee will comply with the requirements
of ERISA with respect to each Plan and promptly notify the Lessor (i) of the
occurrence of any event which could cause the termination, in whole or in part,
of any Plan; (ii) of any violation of ERISA with respect to any Plan; and (iii)
of the occurrence of any reportable event as defined by ERISA.

         Section 31.    Miscellaneous.

                  (a)      Entire Agreement. THIS LEASE AND THE OTHER OPERATIVE
DOCUMENTS EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE LESSEE AND
THE LESSOR AND SUPERSEDE ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH
PARTIES RELATING TO THE SUBJECT MATTER HEREOF. THIS WRITTEN LEASE AND THE OTHER
OPERATIVE DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL

                                       56

<PAGE>   63

AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

                  (b)   No Personal Liability. Notwithstanding anything to the
contrary contained in this Lease, the execution of this Lease and any other
instrument or document executed in connection herewith shall not impose upon
any director, officer or employee of the Lessee or the Lessor personal
liability for the Lessee's and the Lessor's respective obligations under this
Lease or any other instrument or document executed in connection herewith;
provided the foregoing shall not relieve any such director, officer or employee
of personal liability for his or her fraud or intentional misconduct.

                  (c)   Interpretation. Captions and section headings appearing
herein are included solely for convenience of reference and are not intended to
affect the interpretation of any provision of this Agreement.

                  (d)   Governing Law. THIS LEASE AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HERETO RELATING TO THE EQUIPMENT SHALL BE GOVERNED BY AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA, BUT EXCLUDING
ALL CONFLICT-OF-LAWS RULES; EXCEPT THAT, AS TO ANY PHASE, TO THE EXTENT
REQUIRED BY THE LAWS OF THE STATE IN WHICH THE APPLICABLE SITE FOR SUCH PHASE
IS LOCATED, THE LAWS OF THE STATE OF IN WHICH SUCH APPLICABLE SITE IS LOCATED
SHALL GOVERN (I) THE CREATION AND EXISTENCE OF THIS LEASE, (II) SECTION 26 OF
THIS LEASE, AND (III) THE ENFORCEMENT OF THE RIGHTS OF LESSOR TO REPOSSESS THE
EQUIPMENT FOR SUCH PHASE FROM THE LESSEE AFTER THE EARLIER OF THE TERMINATION
OF THIS LEASE OR THE TERMINATION OF THE LESSEE'S RIGHT TO POSSESSION OF THE
EQUIPMENT FOR SUCH PHASE.

                  (e)   No Third Party Beneficiaries. Nothing in this Lease,
express or implied, shall give to any Person, other than the parties hereto and
the Participants and their respective successors and permitted assigns, any
benefit or any legal or equitable right, remedy or claim under this Lease
including, without limitation, under any provision of this Lease regarding the
priority or application of any amounts payable hereunder.

                  (f)   Counterparts. This Lease may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

                                       57

<PAGE>   64

                  (g)   Waiver of Jury Trial. EACH OF THE PARTIES HERETO WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING TO ENFORCE OR TO DEFEND ANY RIGHTS UNDER THIS LEASE
OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING
FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS LEASE, AND AGREES THAT
ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY.

                  (h)   Invalidity. In the event that any one or more of the
provisions contained in this Lease shall, for any reason, be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of the Lease.

                  (i)   Usury. Notwithstanding anything to the contrary
contained in this Lease or any of the Operative Documents, the amounts which
the Lessee is obliged to pay pursuant to this Lease and the other Operative
Documents, and the amounts which the Lessor is entitled to receive pursuant to
this Lease and the other Operative Documents, are subject to the following
limitations. It is the intention of the parties hereto that the Lessor shall
conform strictly to usury laws applicable to it. Accordingly, if the
transactions contemplated hereby would be usurious as to the Lessor under laws
applicable to it (including the laws of the United States of America and the
State of Georgia or any other jurisdiction whose laws may be mandatorily
applicable to the Lessor notwithstanding the other provisions of this
Agreement), then, in that event, notwithstanding anything to the contrary in
this Lease or in any other Operative Document, it is agreed as follows: (i) the
aggregate of all consideration which constitutes interest under law applicable
to the Lessor that is contracted for, taken, reserved, charged or received by
the Lessor under this Lease or under any of the other aforesaid Operative
Documents or other agreements or otherwise in connec tion with this Lease shall
under no circumstances exceed the maximum amount allowed by such applicable
law, and any excess shall be cancelled automatically and if theretofore paid
shall be credited by the Lessor on the amounts paid by the Lessee, to the
extent that the obligations with respect thereto shall have been or would
thereby be paid in full, refunded by the Lessor to the Lessee and (ii) in the
event that any amounts hereunder become due and payable prior to the regularly
scheduled maturity (whether by reason of the occurrence of a Cancellation Event
or a Termination Event or otherwise, or in the event of any required

                                       58

<PAGE>   65

or permitted prepayment, then such consideration that constitutes interest
under law applicable to the Lessor may never include more than the maximum
amount allowed by such applicable law, and excess interest, if any, provided
for in this Lease or otherwise shall be cancelled automatically by the Lessor
as of the date of such prepayment and, if theretofore paid, shall be credited
by the Lessor on the amounts payable hereunder (or, to the extent that the
amounts payable hereunder shall have been or would thereby be paid in full,
refunded by the Lessor to the Lessee). All sums paid or agreed to be paid to
the Lessor for the use, forbearance or detention of sums due hereunder shall,
to the extent permitted by law applicable to the Lessor, be amortized,
prorated, allocated and spread in equal parts throughout the full term of this
Lease until payment in full so that the rate or amount of interest on account
of any amounts payable hereunder does not exceed the maximum amount allowed by
such applicable law. If at any time and from time to time (i) the amount of
interest or yield payable to the Lessor on any date shall be computed at the
Highest Lawful Rate applicable to the Lessor pursuant to this Section 31(i) and
(ii) in respect of any subse quent interest or yield computation period the
amount of interest or yield otherwise payable to the Lessor would be less than
the amount of interest or yield payable to the Lessor computed at the Highest
Lawful Rate applicable to the Lessor, then the amount of interest or yield
payable to the Lessor in respect of such subsequent interest or yield
computation period shall continue to be computed at the Highest Lawful Rate
applicable to the Lessor until the total amount of interest or yield payable to
Lessor shall equal the total amount of interest or yield which would have been
payable to the Lessor if the total amount of interest or yield had been
computed without giving effect to this Section.

                  (j)   Time of the Essence. Time is of the essence in
connection with the payment of Rent and all other amounts payable hereunder and
the performance of the Lessee's other obligations hereunder.

                  (k)   Indemnification.  The Lessee agrees:

                        (i)   in addition to any other indemnity obligations
         set forth in any Operative Document, to indemnify and save harmless,
         the Lessor and any of its successors and assigns, and their respective
         officers, directors, incorporators, shareholders, employees, agents,
         partners, attorneys, affiliates and servants (individually an
         "Indemnified Party" and collectively the "Indemnified

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<PAGE>   66

         Parties") from and against all liabilities, Liens, losses,
         obligations, claims, damages (including, without limitation,
         penalties, fines, court costs and administrative service fees),
         penalties, demands, causes of action, suits, proceedings (including
         any investigations, litigation or inquiries), judgments, orders, sums
         paid in settlement of claims, and costs and expenses of any kind or
         nature whatsoever, including, without limitation, reasonable
         attorneys' fees and expenses and all other expenses incurred in
         connection with investigating, defending or preparing to defend any
         cause of action, suit or proceeding (including any investigations,
         litigation or inquiries) or claim which may be incurred by or asserted
         against or involve any of them (whether or not any of them is named as
         a party thereto) as a result of, arising directly or indirectly out of
         or in any way related to (A) any actual or proposed use by the Lessee
         of the amounts funded as Equipment Cost, (B) any other aspect of this
         Lease and the other Operative Documents, (C) the operations of the
         business of the Lessee, (D) the failure of the Lessee to comply with
         any Governmental Requirement in connection with the purchase, design,
         construction, manufacture, engineering, assembly, installation, use,
         operation or ownership of the Equipment or any portion thereof, (E)
         the breach of any representation or warranty set forth herein
         regarding Environmental Laws, (F) the failure of the Lessee as agent
         for the Lessor under the Agency Agreement to pay any amount required
         to be paid hereunder, (G) the failure of the Lessee to perform any
         obligation herein required to be performed pursuant to Environmental
         Laws, or any act or omission which occurred or will occur at any prior
         or subsequent time, or any condition or state of facts in existence at
         any prior or subsequent time relating in any way to any of the
         Equipment or any Applicable Site the failure of which gives rise to
         any liability or obligation under any Environmental Requirement or
         gives rise to any Environmental Damages, (H) the Lessee's ownership
         and leasing of the Equipment pursuant to this Lease, (I) the sale of
         any portion of the Equipment either to the Lessee or any other Person
         pursuant to the provisions of this Lease, (J) all acts or omissions of
         the Lessee or any Sublessee, (K) any Imposition, Lien, judgment,
         order, tax, or other payment owing in respect of any of the Equipment
         or which the Lessee is obligated to discharge or pay to any Person,
         (L) any action or omission of the Lessee pursuant to the Agency
         Agreement, (M) any injury to, or death of, any Person, or damage to or
         loss of Property to

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<PAGE>   67

         the extent not reimbursed by insurance prior to the Indemnified Party
         having to make any payment in respect thereof, or any other thing
         occurring on or resulting from activities involving any of the
         Equipment or on any Applicable Site or any portion thereof, (N) the
         renovation, construction, leasing, subleasing, operation, occupancy,
         possession, use or non-use by the Lessee (whether in its individual
         capacity or as agent for the Lessor) of any of the Equipment or any
         Applicable Site or any portion thereof, or the condition of the
         Equipment or any portion thereof, (O) any Default or Event of Default
         under this Lease, (P) any act or omission of the Lessee or its agents,
         contractors, licensees, Sublessees, invitees, representatives or any
         other Person on or relating to, or in connection with, the ownership,
         renovation, construction, leasing, subleasing, operation, management,
         maintenance, occupancy, possession, use, non-use or condition of any
         of the Equipment or any Applicable Site or any portion thereof, (Q)
         performance of any labor or services or furnishing of any materials or
         other Property in respect of any of the Equipment or any Applicable
         Site or any portion thereof, (R) any permitted contest referred to in
         Section 13 hereof, (S) any claims for patent, trademark, trade name or
         copyright infringement or (T) any violation by the Lessee of any
         Operative Document or any Related Contracts or any other contract or
         agreement to which the Lessee is a party, or of any Insurance
         Requirement, in each case affecting any Indemnified Party, any of the
         Equipment or any Applicable Site or any portion thereof or the
         ownership, operation, occupancy, possession, use, non-use or condition
         thereof, in each case regardless of the acts, omissions or negligence
         of any Indemnified Party, it being the intent of the Lessee to
         indemnify the Indemnified Parties for their own negligent acts or
         omissions (other than gross negligence or wilful misconduct) in
         connection with any of the foregoing (collectively, the "Indemnified
         Risks"); provided, however, that no Indemnified Party shall be
         entitled to indemnity (or any other payment or reimbursement) for any
         Indemnified Risks to the extent such Indemnified Risks result from or
         arise out of one or more of the following: (1) any representation or
         warranty by such Indemnified Party in the Operative Documents being
         incorrect; (2) the willful misconduct or gross negligence of such
         Indemnified Party; and (3) any claim for economic losses based upon
         the rate of return under this Lease.

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<PAGE>   68

                        (ii)  If any cause of action, suit, proceeding or
         claim arising from any of the foregoing is brought against any
         Indemnified Party, whether such action, proceeding, suit or claim
         shall be actual or threatened, or in preparation therefor, the Lessee
         will have the right, at its expense, to assume the resistance and
         defense of such cause of action, suit, proceeding or claim or cause
         the same to be resisted and defended; provided that such Indemnified
         Party shall be entitled (but not obligated) to participate jointly in
         such defense, in which case such Indemnified Party will be responsible
         for its own legal fees or other expenses, if any, related to such
         defense incurred subsequent to the joint participation by such party
         in such defense. Notwithstanding the foregoing, if any Indemnified
         Party shall have been advised by counsel chosen by it that there may
         be one or more legal defenses available to such Indemnified Party that
         are different from or additional to those available to the Lessee, the
         Indemnified Party may assume the defense of such action and the Lessee
         agrees to reimburse such Indemnified Party for the reasonable fees and
         expenses of any counsel retained by the Indemnified Party. the Lessee
         may settle any action which it defends hereunder on such terms as it
         may deem advisable in its sole discretion, subject to its ability
         promptly to perform in full the terms of such settlement. No
         Indemnified Party may seek indemnification or other reimbursement or
         payment, including attorneys' fees or expenses, from the Lessee for
         any cause of action, suit, proceeding or claim settled, compromised or
         in any way disposed of by the Indemnified Party without the Lessor's
         prior written consent, which will not be unreasonably withheld.

                        (iii) The obligations of the Lessee under this
         Section 31(k) shall survive the expiration or any termination of this
         Lease (whether by operation of law or otherwise) and the payment of
         amounts owed by the Lessee under this Lease and the other Operative
         Documents.

                        (iv)  Upon demand for payment by any Indemnified
         Party of any Indemnified Risks incurred by it for which
         indemnification is sought, the Lessee shall pay when due and payable
         the full amount of such Indemnified Risks to the appropriate party,
         unless and only so long as: (A) the Lessee shall have assumed the
         defense of such action and is diligently prosecuting the same; (B) the
         Lessee is financially able to pay all its obligations outstanding and

                                       62

<PAGE>   69

         asserted against the Lessee at that time, including the full amount of
         the Indemnified Risks; and (C) the Lessee has taken all action as may
         be reasonably necessary to prevent (1) the collection of such
         Indemnified Risks from the Indemnified Party; (2) the sale, forfeiture
         or loss of the Equipment or any portion thereof during such defense of
         such action; and (3) the imposition of any civil or criminal liability
         for failure to pay such Indemnified Risks when due and payable.

                        (v)   The Lessee acknowledges and agrees that its
         obligations under this Section 31(k) are intended to include and
         extend to any and all liabilities, Liens, losses, obligations, claims,
         damages (including, without limitation, penalties, fines, court costs
         and administrative service fees), penalties, demands, causes of
         action, suits, proceedings (including any investigations, litigation
         or inquiries), judgments, orders, sums paid in settlement of claims,
         costs and expenses (including, without limitation, response and
         remediation costs, stabilization costs, encapsulation costs, and
         treatment, storage or disposal costs), imposed upon or incurred by or
         asserted at any time against any Indemnified Party (whether or not
         indemnified against by any other party) as a result of, arising
         directly or indirectly out of or in any way related to (1) the
         treatment, storage, disposal, generation, use, transport, movement,
         presence, release, threatened release, spill, installation, sale,
         emission, injection, leaching, dumping, escaping or seeping of any
         hazardous substance or material containing or alleged to contain
         hazardous substance at or from any of the Equipment or any Applicable
         Site or any part thereof; (2) the violation or alleged violation of
         any Environmental Laws relating to or in connection with any of the
         Equipment or any Applicable Site or any part thereof or any acts or
         omissions thereon or relating thereto; (3) all other federal, state
         and local laws designed to protect the environment or persons or
         property therein, whether now existing or hereinafter enacted,
         promulgated or issued by any governmental authority relating to or in
         connection with any of the Equipment or any Applicable Site or any
         part thereof or any acts or omissions thereon or relating thereto; (4)
         the Lessee's failure to comply with its obligations under Section 7
         hereof; and (5) any abandonment of any of the Equipment or any
         Applicable Sites by the Lessee; provided, however that no Indemnified
         Party shall be entitled to indemnity or any other payment or
         reimbursement

                                       63

<PAGE>   70

         for any of the types of claims enumerated in this Section 31(k) to the
         extent such claims result from or arise out of the willful misconduct
         or gross negligence of such Indemnified Party; and (ii) the
         indemnification provided for under this Section 31(k)(v) shall be
         governed by the procedures set forth in Sections 31(k)(ii)-(iv) above.

                        (vi)  Without limiting the generality of the
         foregoing provisions of this Section 31(k), the Lessee agrees to pay
         or reimburse, promptly upon demand, and protect, indemnify and save
         harmless, the Lessor, following the occurrence of a Termination Event,
         from any action by any Sublessee or other owner of an interest in the
         Equipment (other than a Co-Lessee) which causes the Lessor any delay
         in exercising its remedies, or results in the reduction of the
         Lessor's remedies hereunder.

                        (vii) In case any action shall be brought against
         any Indemnified Party in respect of which indemnity may be sought
         against the Lessee, such Indemnified Party shall promptly notify the
         Lessee in writing, but the failure to give such prompt notice shall
         not relieve the Lessee from liability hereunder.

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<PAGE>   71

                  IN WITNESS WHEREOF, the parties have caused this Lease to be
executed by their respective officers thereunto duly authorized as of the date
first above written.

                                                LESSOR:

                                                WACHOVIA LEASING CORPORATION

                                                By:
                                                   ----------------------------
                                                    Title:

                                                LESSEE:

                                                FLOWERS INDUSTRIES, INC.

                                                By:
                                                   ----------------------------
                                                    Title:

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<PAGE>   72

                                 SCHEDULE 1(b)

                                 Defined Terms

The following terms shall have the following meanings (all terms defined in the
singular to have the same meanings when used in the plural and vice versa):

                  "Acquisition Agent":  Lessee, in its capacity as Acquisition
Agent for the Lessor under the Agency Agreement.

                  "Acquisition Date":  as to each Phase, as defined in Section
28(c)(i) of the Lease.

                  "Acquisition Period":  a period commencing on the Closing
Date and ending 12 months after the Closing Date.

                  "Additional Rent":  as to any Phase as to which a Progress
Payment Agreement has been executed, as defined in such Progress Payment
Agreement.

                  "Affiliate": with respect to the Lessor, (i) any Person that,
directly or indirectly, through one or more intermediaries, controls the Lessor
(a "Controlling Person"), (ii) any Person (other than the Lessor or a
Subsidiary) which is controlled by or is under common control with a
Controlling Person, or (iii) any Person (other than a Subsidiary) of which the
Lessor owns, directly or indirectly, 20% of more of the common stock or
equivalent equity interests. As used herein, the term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "Agency Agreement":  the Acquisition, Agency, Indemnity
and Support Agreement, of even date with the Lease, between the Lessor and the
Lessee, as Acquisition Agent, substantially in the form of Exhibit A to the
Lease, as amended, supplemented or otherwise modified from time to time.

                  "Applicable Funding Office":  for each Participant, the
funding office of such Participant (or an affiliate of such Participant)
designated for any interest of such Participant in Interim Rent or Basic Rent
in the participation agreement with the Lessor or such other offices of such
Participant (or of an

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<PAGE>   73

affiliate of such Participant) as such Participant may from time to time
specify to the Lessor as the office by which its interest in Interim Rent and
Basic Rent, as applicable, are to be made and maintained.

                  "Applicable Permit": for each Phase, any Permit that is or
may be necessary to own, renovate, install, start-up, test, maintain, operate,
lease or use all or any part of the Equipment for such Phase or any portion
thereof in accordance with the Operative Documents, and the failure to obtain
or maintain which would have a Material Adverse Effect.

                  "Applicable Site":  with respect to any Phase, the
manufacturing site or facility on which the Equipment subject to this Lease for
such Phase is to be located, as identified in the Lease Supplements pertaining
to such Phase.

                  "Approved Appraisal": any appraisal, obtained on behalf of
the Lessor by the Acquisition Agent pursuant to the Agency Agreement, but at
the Lessee's cost, from an appraiser or appraisers reasonably acceptable to the
Lessor and the Lessee, which: (i) is performed by an equipment appraiser
experienced in the appraisal of manufacturing equipment similar in type to the
Equipment, (ii) reflects the fair market value of the Equipment for each Phase
as of the end of the Acquisition Period on an "as installed" basis, (iii)
forecasts the Estimated Residual of the Equipment for each Phase as of the end
of each Rental Period for such Phase and (iv) has been approved in all respects
by the Lessor.

                  "Authorized Officers":  relative to the Lessee, the officers
whose signatures and incumbency shall have been certified to the Lessor in a
certificate certified by its Secretary in form and substance satisfactory to
the Lessor.

                  "Banking Authority":  as defined in Section 27(b) of the
Lease.

                  "Base Rate":  for any day, the rate per annum equal to the
higher as of such day of (i) the Prime Rate, and (ii) one-half of one percent
above the Federal Funds Rate. For purposes of determining the Base Rate for any
day, changes in the Prime Rate shall be effective on the date of each such
change.

                  "Basic Rent":  for each Phase, with respect to any Rental
Period, the amounts payable for such Phase as Basic Rent

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<PAGE>   74

for such Rental Period pursuant to Section 3(b) of the Lease, consisting of the
sum of the Scheduled Payment and either the Floating Rate Payment or, if the
Election has been made, the Fixed Rate Payment.

                  "Book Net Worth": the book value of the Lessee's and its
Subsidiaries' total assets (exclusive of any indebtedness owned to the Lessee
or its Consolidated Subsidiaries by any affiliates of the Lessee), plus
Convertible Subordinated Debt, minus the Lessee's and its Consolidated
Subsidiaries' total liabilities.

                  "Book Value": for each Phase, as at any date of determination
with respect to the Equipment for such Phase or any Property comprising or
included in the Equipment for such Phase, the aggregate Funded Amount through
such date of determination to purchase, manufacture, construct, assemble or
install the Equipment for such Phase or any portion thereof.

                  "Business Day": (a) for all purposes other than as covered by
clause (b) below, any day except Saturday, Sunday or other day on which
commercial banks in Atlanta, Georgia are authorized or required by law or other
government action to close, and (b) with respect to all notices and
determinations in connection with Interim Rental Periods and Rental Periods,
and payments of Interim Rent or Basic Rent, any day that is a Business Day
described in clause (a) above and that is also a day for trading by and between
banks in the London interbank eurodollar market.

                  "Cancellation Date":  as defined in Section 15(b) of the
Lease.

                  "Cancellation Event":  as defined in Section 15(b) of the
Lease, and shall include a Loss Event.

                  "Capital Stock":  any nonredeemable capital stock of the
Lessee or any Consolidated Subsidiary (to the extent issued to a Person other
than the Lessee) whether common or preferred.

                  "Casualty Occurrence":  for each Phase, any of the following
events in respect of the Equipment for such Phase (i) any material loss of the
Equipment for such Phase or material loss of use thereof which does not
constitute a Loss Event, or (ii) the condemnation, confiscation, condemnation
or seizure of, or requisition of title to or use of, any material part of the

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<PAGE>   75

Equipment for such Phase which action does not constitute a Loss Event.

                  "CERCLIS":  the Comprehensive Environmental Response
Compensation and Liability Inventory System established pursuant to CERCLA.

                  "Change of Law":  as defined in Section 27(b) of the Lease.

                  "Closing Date":  October 20, 1995.

                  "Code":  the Internal Revenue Code of 1986, as amended, and
any successor Federal tax code.

                  "Collateral":  as defined in Section 26 of the Lease.

                  "Co-Lessee":  as defined in Section 21(b) of the Lease.

                  "Completion":  for each Phase, the occurrence and satisfaction
of all of the events and conditions described on Schedule 1.3(b) to the Agency
Agreement on a single date to the reasonable satisfaction of the Lessor.

                  "Completion Certificate":  for each Phase, a certificate of
the Acquisition Agent in substantially the form of Exhibit A to the Agency
Agreement, certifying that Completion of the Equipment for such Phase has
occurred.

                  "Consolidated Operating Profits": for any period, the
Operating Profits of the Lessee and its Consolidated Subsidiaries.

                  "Consolidated Subsidiary":  a Subsidiary, the accounts of
which are customarily consolidated with those of the Lessee for the purpose of
reporting to stockholders of the Lessee or, in the case of a recently acquired
Subsidiary, the accounts of which would, in accordance with the Lessee's
regular practice, be so consolidated for that purpose.

                  "Consolidated Total Assets":  at any time, the total assets
of the Lessee and its Consolidated Subsidiaries, determined on a consolidated
basis, as set forth or reflected on the most recent consolidated balance sheet
of the Lessee and its Consolidated Subsidiaries, prepared in accordance with
GAAP and

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<PAGE>   76

delivered to the Lessor pursuant to Section 30(a)(i) or (ii) of the Lease.

                  "Controlled Group":  all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Lessee, are treated as a single
employer under Section 414 of the Code.

                  "Debt": at any date, without duplication, (i) all obligations
of such Person for borrowed money, (ii) all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments, (iii) all
obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable arising in the ordinary course of
business, (iv) all obligations of such Person as lessee under capital leases,
(v) all obligations of such Person to reimburse any bank or other Person in
respect of amounts payable under a banker's acceptance, (vi) all Redeemable
Preferred Stock of such Person (in the event such Person is a corporation),
(vii) all obligations of such Person to reimburse any bank or other Person in
respect of amounts paid under a letter of credit or similar instrument, (viii)
all Debt of others secured by a Lien on any asset of such Person, even though
such Debt is not assumed by such Person, (ix) all Debt of others Guaranteed by
such Person, and (x) amounts of any reserves for doubtful accounts recorded on
the books of such Person for leases, receivables and other accounts sold,
factored or otherwise disposed of by such Person; provided, that in no event
shall "Debt" include any Factored Receivables Obligations.

                  "Default":  any condition or event that constitutes an Event
of Default or that with the giving of notice or the lapse of time or both
would, unless cured or waived, become an Event of Default.

                  "Default Rate": with respect to any amount payable under the
Lease or under any of the other Operative Documents on any day, the sum of 2%
plus the greater of (i) the then highest rate (for determining Interim Rent, or
the Floating Rate or the Fixed Rate, as applicable) that may be applicable to
the amount payable or (ii) if no such rate exists, the Prime Rate in effect
from time to time.

                  "Designated Event of Default":  any of the Events of Default
specified in Section 17(a) of the Lease, other than an

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<PAGE>   77

Event of Default described in (x) clause (ii) thereof, insofar as it relates to
Section 30(d) of the Lease, and (y) clause (viii) thereof.

                  "Dollars" and "$":  dollars in lawful currency of the United
States of America.

                  "Election":  for each Phase, as defined in Section 3(b)(i)
of the Lease.

                  "Election Period":  for each Phase, as defined in Section
3(b)(i) of the Lease.

                  "Environmental Authority":  any foreign, federal, state,
local or regional government that exercises any form of jurisdiction or
authority under any Environmental Requirement.

                  "Environmental Damages": any and all losses, costs, damages,
penalties and expenses which are incurred at any prior or subsequent time as a
result of the existence of Hazardous Materials upon, about or beneath the
Equipment for any Phase or any Applicable Site or migrating or threatening to
migrate to or from the Equipment for any Phase or any Applicable Site or the
existence of a violation of Environmental Requirements pertaining to the
Equipment for any Phase or any Applicable Site, regardless of whether the
existence of such Hazardous Materials or the violation of Environmental
Requirements arose prior to the present ownership or operation of the Equipment
for any Phase or any Applicable Site.

                  "Environmental Judgments and Orders": all judgments, decrees
or orders arising from or in any way associated with any Environmental
Requirements, whether or not entered upon consent or written agreements with an
Environmental Authority or other entity arising from or in any way associated
with any Environmental Requirement, whether or not incorporated in a judgment,
decree or order.

                  "Environmental Liabilities":  any liabilities, whether
accrued, contingent or otherwise, arising from and in any way associated with
any Environmental Requirements.

                  "Environmental Notices":  notice from any Environmental
Authority of possible or alleged noncompliance with or liability under any
Environmental Requirement, including without limitation any complaints,
citations, demands or requests from any

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Environmental Authority for correction of any violation of any Environmental
Requirement or any investigations concerning any violation of any Environmental
Requirement.

                  "Environmental Proceedings":  any judicial or administrative
proceedings arising from or in any way associated with any Environmental
Requirement.

                  "Environmental Releases": any actual or threatened spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping or disposing of a Hazardous Material into the
environment, including, but not limited to any releases defined in CERCLA or
under any state or local environmental law or regulation.

                  "Environmental Requirements": any and all federal, state,
local, and foreign laws, statutes, ordinances, orders, codes, rules,
regulations, policies, guidance documents, judgments, decrees, injunctions,
decisions, determinations, or agreements by any judicial, legislative or
executive body of any governmental or quasi-governmental entity, whether in the
past, the present or the future, with respect to: (1) the protection of the
environment; (2) the existence, handling, use, generation, treatment, storage,
packaging, labelling, removal or Environmental Release of Hazardous Materials
on, under, about and/or from the Equipment or Applicable Site for any Phase;
and (3) the effects on the environment of the Equipment or Applicable Site for
any Phase or of any activity now, previously, or hereinafter conducted on the
Equipment or Applicable Site for any Phase. The Environmental Requirements
shall include, but not be limited to, the following: the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. ss.ss. 9601,
et seq.)("CERCLA"); the Superfund Amendments and Reauthorization Act, Public
Law 99-499, 100 Stat. 1613; the Resource Conservation and Recovery Act, 42
U.S.C. ss.ss. 6901, et seq.; the Toxic Substances Control Act, 15 U.S.C. ss.ss.
2601, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. ss.ss. 1251,
et seq.; the Clean Air Act, 42 U.S.C. ss.ss. 7401, et seq.; the state and local
analogies thereto, all as amended or superseded from time to time; and any
common-law doctrine, including but not limited to, negligence, nuisance,
trespass, personal injury, or property damage related to or arising out of the
presence, Environmental Release or exposure to a Hazardous Material.

                  "Equipment": individually, as to each Phase, the Equipment
described in each Lease Supplement pertaining to such

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<PAGE>   79

Phase, together with all plans, specifications, warranties and related rights
and operating, maintenance and repair manuals related thereto and all
replacements of any of the foregoing, and collectively, all such Equipment.

                  "Equipment Cost": with respect to each Phase, an aggregate
amount equal to the sum of (i) all costs associated with the Lessor's
acquisition of title to the Equipment for such Phase, (ii) all of the Soft
Costs incurred in connection with such Phase and (iii) all Interim Rent accrued
prior to the Phase Completion Date for such Phase.

                  "ERISA":  the Employee Retirement Income Security Act of 1974,
as amended from time to time, or any successor law and the regulations
promulgated and rulings issued from time to time thereunder. Any reference to
any provision of ERISA shall also be deemed to be a reference to any successor
provision or provisions thereof.

                  "Estimated Residual":  the estimated fair market value of the
Equipment for each Phase as of the end of each Rental Period for such Phase, as
set forth on Schedule 3(b) to the Lease, as it may be modified pursuant to
Section 3(b) of the Lease as a result of an Approved Appraisal.

                  "Eurocurrency Liabilities": as defined in Regulation D of the
Board of Governors of the Federal Reserve System, as in effect from time to
time.

                  "Eurodollar Reserve Requirement": any reserve requirement
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for a member bank of the Federal Reserve System in respect of
"Eurocurrency liabilities" (or in respect of any other category of liabilities
which includes deposits by reference to which the interest rate on loans made
at the LIBO Rate) is determined or any category of extensions of credit or
other assets.

                  "Event of Default":  as defined in Section 17 of the Lease.

                  "Existing Term Loan Agreement" means the Term Loan Agreement
between Wachovia and the Lessee dated July 1, 1995.

                  "Factored Receivables Obligations":  any recourse or
non-recourse obligation, guarantee or other contractual

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undertaking of the Lessee or any Subsidiary arising in connection with the
sale, factoring or other disposition of leases, receivables or other accounts,
if such sale, factoring or disposition, whether with or without recourse, is
for a fair price (on the basis of the face amount of the respective item, on
the basis of the present value or its income stream or on the basis of another
arms' length determination) together with the interests of the seller of such
lease, receivable or other account in the equipment or other property related
to such lease, receivable or other account, and not at a distress sale or other
"deep" discount.

                  "Federal Funds Rate": for any day, the rate per annum
(rounded upward, if necessary, to the next higher 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day, provided that (i) if the day for which such rate is
to be determined is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day, and
(ii) if such rate is not so published for any day, the Federal Funds Rate for
such day shall be the average rate charged to the Lessor on such day on such
transactions, as determined by the Lessor.

                  "Final Rent Payment": for each Phase, an amount determined as
of the date payment thereof is required equal to the sum of (i) the Recourse
Amount for such Phase, plus (ii) all other amounts owing by the Lessee under
the Operative Documents (including in any event all unpaid Impositions accrued,
arising or payable in connection with the Equipment for such Phase or otherwise
pursuant to the Lease through or as at the end of the Lease Term, and all
unpaid Supplemental Rent, but excluding in any event the Non-Recourse Amount).

                  "Fiscal Quarter":  any fiscal quarter of the Lessee.

                  "Fiscal Year":  any fiscal year of the Lessee.

                  "Fixed Rate": with respect to Basic Rent for each Phase, if
the Election has been made for such Phase, for each Rental Period, a rate per
annum equal to the sum of (i) the prevailing 5 year U.S. Treasury Rate as
defined on page 500 of the Telerate Screen at 11:00 A.M., Atlanta time, on the
date of the Election for such Phase, plus (ii) the lesser of (A) the

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<PAGE>   81

corresponding ask side of the 5 year swap rate as defined on page 19901 of the
Telerate Screen at 11:00 A.M., Atlanta time, on such date, and (B) 0.55%, plus
(ii) 0.45%.

                  "Fixed Rate Payment":  for each Phase, as defined in Section
3(b)(ii) of the Lease.

                  "Floating Rate": with respect to Basic Rent for each Phase,
if the Election has not been made or become effective for such Phase, for each
Rental Period, a rate per annum equal to the sum of (i) the LIBO Rate
prevailing on the first day of such Rental Period, plus (ii) 0.45%.

                  "Floating Rate Payment":  for each Phase, as defined in
Section 3(b)(i) of the Lease.

                  "Funded Amount": for each Phase, the aggregate amount of
Equipment Cost for such Phase, accrued and unpaid Rent for such Phase and all
other amounts owed by the Lessee to the Lessor with respect to such Phase
pursuant to this Lease or any other Operative Document.

                  "GAAP": generally accepted accounting principles in the
United States of America as in effect from time to time; provided that for
purposes of determining compliance with the terms of the Lease, the Lessee and
the Lessor agree that in the event of any change in GAAP from that in effect on
the date of the financial statements referred to in Section 30(a) of the Lease
which has the effect of weakening the protection afforded the Lessor by the
Lessee's covenants in the Lease, the Lessee and the Lessor shall amend the
Lease and such covenants in order to provide the Lessor an equivalent level of
protection, in a manner satisfactory to the Lessor.

                  "Governmental Authority": to include the country, state,
county, city and political subdivisions in which any Person or any such
Person's property is located or that exercises valid jurisdiction over any such
Person or any such Person's property, and any court, agency, department,
commission, board, bureau or instrumentality of any of them including monetary
authorities that exercise valid jurisdiction over any such Person or any such
Person's property. Unless otherwise specified, all references to Governmental
Authority herein shall mean a Governmental Authority having jurisdiction over,
where applicable, the Lessee, any Applicable Site, the Equipment for

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<PAGE>   82

any Phase, the Lessee, any Participant, any Applicable Funding Office or any
Operative Document.

                  "Governmental Requirement": any law, statute, code, ordinance,
order, determination, rule, regulation, judgment, decree, injunction,
franchise, permit, certificate, license, authorization or other direction or
requirement (whether or not having the force of law), including, without
limitation, Environmental Requirements, and occupational, safety and health
standards or controls, of any Governmental Authority.

                  "Guarantee": with respect to any Person, any obligation,
contingent or otherwise, of such Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to secure, purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation (whether
arising by virtue of partnership arrangements, by agreement to keep-well, to
purchase assets, goods, securities or services, to provide collateral security,
to take-or-pay, or to maintain financial statement conditions or otherwise) or
(ii) entered into for the purpose of assuring in any other manner the obligee
of such Debt or other obligation of the payment thereof or to protect such
obligee against loss in respect thereof (in whole or in part), provided that
the term Guarantee shall not include endorsements for collection or deposit in
the ordinary course of business. The term "Guarantee" used as a verb has a
corresponding meaning.

                  "Hazardous Materials": to include, without limitation, (a)
solid or hazardous waste, as defined in the Resource Conservation and Recovery
Act of 1980, 42 U.S.C. ss. 6901 et seq. and its implementing regulations and
amendments, or in any applicable state or local law or regulation, (b)
"hazardous substance", "pollutant", or "contaminant" as defined in CERCLA, or
in any applicable state or local law or regulation, (c) gasoline, or any other
petroleum product or by-product, including, crude oil or any fraction thereof,
(d) toxic substances, as defined in the Toxic Substances Control Act of 1976,
or in any applicable state or local law or regulation, (e) insecticides,
fungicides, or rodenticides, as defined in the Federal Insecticide, Fungicide,
and Rodenticide Act of 1975, or in any applicable state or local law or
regulation, as each such Act, statute or regulation may be amended from time to
time, or (f) any toxic or hazardous materials, wastes, polychlorinated

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<PAGE>   83

biphenyls ("PCBs"), lead-containing materials, urea formaldehyde, radioactive
materials, pesticides, the discharge of sewage or effluent, or any other
materials or substances defined as or included in the definition of "hazardous
materials," "hazardous waste," "contaminants" or similar terms under any
Environmental Requirement.

                  "Highest Lawful Rate": with respect to the Lessor, the
maximum non-usurious interest rate or yield, as applicable, if any, that at any
time or from time to time may be contracted for, taken, reserved, charged or
received with respect to any amounts owing hereunder under laws applicable to
the Lessor which are presently in effect or, to the extent allowed by law,
under such applicable laws which may hereafter be in effect and which allow a
higher maximum non-usurious interest rate than applicable laws now allow.

                  "Impositions": without duplication, as to any Person, (i) all
taxes, assessments, levies, fees, inspection fees and other authorization fees
and all other governmental charges, general and special, ordinary and
extraordinary, foreseen and unforeseen, of every character (including all
penalties and interest thereon) that, at any time prior or subsequent to the
Closing Date, are imposed or levied upon or assessed against or may be or
constitute a Lien upon such Person or such Person's Property, or that arise in
respect of the ownership, operation, possession, use, non-use, condition,
leasing or subleasing of such Person's Property; (ii) all charges, levies,
fees, rents or assessments for or in respect of utilities, communications and
other services rendered or used on or about such Person's Property; (iii)
payments required in lieu of any of the foregoing; but excluding any penalties
or fines imposed on the Lessor for violation by it of any banking laws or
securities law; and (iv) any and all taxes, recording fees and other charges
(including penalties and interest) relating to or arising out of the execution,
delivery or recording of any of the Operative Documents for the amounts
evidenced, secured or referred to be paid thereby, including without
limitation, documentary stamp taxes, intangible taxes, recording fees and
sales, rent and other Taxes.

                  "Indemnified Party":  as defined in Section 31(k)(i) of the
Lease.

                  "Indemnified Risks":  as defined in Section 31(k)(i) of the
Lease.

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<PAGE>   84

                  "Insurance Requirements":  all terms of any insurance policy
(including, without limitation, casualty and general liability) covering or
applicable to the Equipment for any Phase or any portion thereof maintained in
accordance with Section 14 of the Lease, and all requirements of the issuer of
any such policy.

                  "Interim Rent":  for each Phase, with respect to any Interim
Rental Period, the amounts payable for such Phase as Interim Rent for such
Interim Rental Period pursuant to Section 3(a) of the Lease.

                  "Interim Rental Period": with respect to Interim Rent
pertaining to any Phase, the period beginning on the Phase Commencement Date
for such Phase and ending on the numerically corresponding date (or, if
applicable, last calendar date) which is either one, two or three months
thereafter, as selected by the Lessee upon at least 3 Business Days notice and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interim Rental Period and ending on the numerically
corresponding date (or, if applicable, last calendar date) which is either one,
two or three months thereafter, as selected by the Lessee upon at least 3
Business Days notice; provided, however, that:

                  (i)   no Interim Rental Period may be selected which commences
         before the Phase Completion Date and would otherwise end after the
         Phase Completion Date;

                  (ii)  if the last day of such Interim Rental Period would
         otherwise occur on a day which is not a Business Day, such last day
         shall be extended to the next succeeding Business Day, except if such
         extension would cause such last day to occur in a new calendar month,
         then such last day shall occur on the next preceding Business Day.

                  "Judgment":  any judgement, decree, writ, order, rule or other
requirement of any arbitrator or any court, tribunal or other Governmental
Authority.

                  "Lease":  the Master Lease Agreement to which this Schedule
1(b) is attached (as the same may be amended, modified or supplemented from
time to time, between the Lessee and the Lessor.

                  "Lease Commencement Date":  the Closing Date.

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<PAGE>   85

                  "Lease Addition Date": with respect to the Equipment for any
Phase, the date of satisfaction of the conditions set forth in Section 28(c) of
the Lease with respect thereto.

                  "Lease Supplement" with respect to each Phase, a Lease
Supplement in substantially the form of Exhibit C to the Lease, and containing
the information required thereby.

                  "Lease Term":  for each Phase, the period of time commencing
on the Phase Commencement Date for such Phase and ending on the Lease
Termination Date for such Phase.

                  "Lease Termination Date":  for each Phase, the earlier
to occur of (i) the Option Date for such Phase, (ii) the Cancellation Date
(iii) the date of termination for such Phase as a result of a Termination Event
and (iv) the Scheduled Lease Termination Date for such Phase.

                  "Lessee":  Flowers Industries, Inc., a Georgia corporation,
together with its successors and permitted assigns.

                  "Lessor":  Wachovia Leasing Corporation, a North Carolina
corporation, together with its successors and permitted assigns.

                  "LIBO Rate": with respect to any Interim Rent or Basic Rent
for the applicable Interim Rental Period or Rental Period therefor, the rate
per annum determined on the basis of the offered rate for deposits in Dollars
of amounts equal or comparable to the amount of such Interim Rent or Basic Rent
offered for a term comparable to such Interim Rental Period or Rental Period,
which rates appear on the Reuters Screen LIBO Page as of 11:00 A.M., London
time, two Business Days prior to the first day of such Interim Rental Period or
Rental Period, provided that (i) if more than one such offered rate appears on
the Reuters Screen LIBO Page, the "LIBO Rate" will be the arithmetic average of
such offered rates; (ii) if no such offered rates appear on such page, the
"LIBO Rate" for such Interim Rental Period or Rental Period will be the
arithmetic average (rounded upward, if necessary, to the next higher 1/100th of
1%) of rates quoted by not less than two major banks in New York City, selected
by the Lessee, at approximately 10:00 A.M., New York City time, two Business
Days prior to the first day of such Interim Rental Period or Rental Period, for
deposits in Dollars offered to leading European banks for a period comparable
to such

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<PAGE>   86

Interim Rental Period or Rental Period in an amount comparable to the amount of
such Interim Rent or Basic Rent.

                  "Lien": with respect to any asset, any mortgage, deed to
secure debt, deed of trust, lien, pledge, charge, security interest, security
title, preferential arrangement which has the practical effect of constituting
a security interest or encumbrance, or encumbrance or servitude of any kind in
respect of such asset to secure or assure payment of a Debt or a Guarantee,
whether by consensual agreement or by operation of statute or other law, or by
any agreement, contingent or otherwise, to provide any of the foregoing. For
the purposes of this definition, the Lessee or any Subsidiary shall be deemed
to own subject to a Lien any asset which it has acquired or holds subject to
the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement relating to such asset.
Notwithstanding the foregoing, in no event shall any of the following be deemed
to be a "Lien" on any assets or other properties of any Person: (1) filings of
financing statements in respect of operating leases of such Person, sales of
(and not merely security interests in) leases, receivables and other accounts
and of the equipment or other property related to such accounts, and other
similar filings of a precautionary nature, (2) the interest of a lessee in the
property subject to a lease under which such Person is the lessor, or (3) the
interest of the purchaser or factor of leases, receivables or other accounts of
such Person in the leases, receivables or accounts sold, factored or otherwise
disposed of, or in the related equipment or other property that is the subject
of such lease, receivable or account, even if described as a Lien in the
instrument pursuant to which such sale, factoring or other disposition is
effected.

                  "Loss Event": for each Phase, any of the following events in
respect of the Equipment for such Phase: (i) the total loss of the Equipment
for such Phase or the total loss of use thereof due to theft, disappearance,
destruction, damage beyond repair or rendition of the Equipment for such Phase
permanently unfit for normal use for any reason whatsoever; (ii) any damage to
the Equipment for such Phase which results in an insurance settlement with
respect to the Equipment for such Phase on the basis of a total loss; (iii) the
permanent condemnation, confiscation or seizure of, or requisition of title to
or use of, all or substantially all of the Equipment for such Phase including,
but not limited to, a permanent taking by eminent domain of such scope that the
untaken portion of the Equipment

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<PAGE>   87

for such Phase is insufficient to permit the restoration of the Equipment for
such Phase for such Phase for continued use in the Lessee's business or that
causes the remaining portion of the Equipment for such Phase to be incapable of
being restored to a condition that would permit the remaining portion of the
Equipment for such Phase (without the portion of the Equipment for such Phase
taken by eminent domain) to continue to have the capacity and functional
ability to perform on a continuing basis (subject to normal interruptions in
the ordinary course of business for maintenance, inspection, service, repair
and testing) and in commercial operation, the function for which the Equipment
for such Phase (as a whole) was designed or a temporary taking of such nature
for a period exceeding 180 consecutive days; or (iv) the occurrence of any
event or the discovery of any condition in, on, beneath or involving the
Equipment for such Phase or any portion thereof (including, but not limited to
the presence of hazardous substances or the violation of any applicable
Environmental Requirement) that would have a material adverse effect on the
use, occupancy, possession, condition, value or operation of the Equipment for
such Phase or any portion thereof, which event or condition requires
remediation (A) the cost of which is anticipated, in the opinion of the Lessor,
in consultation with an independent environmental engineering firm, to exceed
16% of the Termination Value, and (B) that could not reasonably be expected to
be completed substantially in its entirety prior to the date that is 30 days
prior to the Scheduled Lease Termination Date for such Phase or is not actually
completed substantially in its entirety on or before the date that is 30 days
prior to the Scheduled Lease Termination Date for such Phase.

                  "Margin Stock":  "margin stock" as defined in Regulations
U or G of the Board of Governors of the Federal Reserve System, as in effect
from time to time.

                  "Material Adverse Effect": with respect to any event, act,
condition or occurrence of whatever nature (including any adverse determination
in any litigation, arbitration, or governmental investigation or proceeding),
whether singly or in conjunction with any other event or events, act or acts,
condition or conditions, occurrence or occurrences, whether or not related, a
material adverse change in, or a material adverse effect upon, any of (a) the
financial condition, operations, business, or properties which are central to
the business at such time, of the Lessee and its Consolidated Subsidiaries
taken as a whole, (b) the ability of the Lessee (in its capacity as such or

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in its capacity as Acquisition Agent) to perform its respective obligations
under the Operative Documents to which it is a party, as applicable, (c) the
legality, validity or enforceability of any Operative Document, or (d) the use,
possession, condition, value or operation of the Equipment for any Phase.

                  "Material Subsidiary": as of each date of determination, any
Consolidated Subsidiary (i) whose consolidated total assets exceed 5% of
Consolidated Total Assets or (ii) whose consolidated total revenues exceed 5%
of the consolidated revenues of the Lessee and its Consolidated Subsidiaries
determined in accordance with GAAP as of the last day of the Fiscal Quarter of
the Lessee most recently ended as of such date of determination and for which
financial statements have been delivered to the Lessor pursuant to Section
30(a)(i) and (ii) of the Lease.

                  "Non-Completion Event": as to any Phase, the failure of
Completion to occur on or before the earlier of (i) the date which is six
months after the Phase Commencement Date for such Phase and (ii) the last day
of the Acquisition Period.

                  "Non-Designated Event of Default":  any Event of Default
other than a Designated Event of Default.

                  "Non-Recourse Amount":  for each Phase, means at any time an
amount equal to 16.0% of the aggregate original Equipment Cost for such Phase,
as such amount may be modified pursuant to Section 3(b) of the Lease as a
result of an Approved Appraisal.

                  "Operative Documents": collectively, the Lease, the Agency
Agreement, each Progress Payment Agreement and any and all other agreements or
instruments now or hereafter executed and delivered, or required to be executed
and delivered, by the Lessor or the Lessee in connection with the Lease or the
Agency Agreement, as such agreements or instruments may be amended,
supplemented, renewed, extended, increased or otherwise modified from time to
time.

                  "Operating Profits": as applied to any Person for any period,
the operating income of such Person for such period, as determined in
accordance with GAAP.

                  "Option Date":  as defined in Section 15(c) of the Lease.

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<PAGE>   89

                  "Participant":  as defined in Section 21(d) of the Lease,
collectively, as the context shall require, "Participants".

                  "PBGC":  the Pension Benefit Guaranty Corporation or any
successor thereto.

                  "Permit":  any approval, consent, waiver, exemption, variance,
franchise, order, permit, authorization, right or license of or from any
Governmental Authority or other Person.

                  "Permitted Insurers":  insurers with ratings of A or better
and Class VIII or better according to Best's Insurance Reports, or other
insurers acceptable to the Lessor.

                  "Permitted Liens":  (i) with respect to any Property other
than the Equipment, any of the Liens permitted by the terms of Section 30(q),
and (ii) with respect to the Equipment or any Property included in or
comprising the Equipment or any portion thereof, any of the following:

                  (a)   rights reserved to or vested in any Governmental
         Authority by the terms of any right, power, franchise, grant, license,
         permit or provision of law affecting the Equipment to (1) terminate,
         or take any other action which has the effect of modifying, such
         right, power, franchise, grant, license, permit or provision of law,
         provided that such termination or other action, when taken, shall not
         have resulted in a Loss Event and shall not have had a Material
         Adverse Effect, or (2) purchase, condemn, appropriate or recapture, or
         designate a purchaser of, the Equipment;

                  (b)   any Liens thereon for Impositions and any Liens of
         mechanics, materialmen and laborers for work or services performed or
         materials furnished which (1) are not overdue, or (2) are being
         contested in good faith in the manner described in Section 13 of the
         Lease;

                  (c)   rights reserved to or vested in any Governmental
         Authority to control or regulate the use of such Property or
         to use the Equipment in any manner;

                  (d)   in the case of real property, encumbrances, easements,
         and other similar rights existing on the Closing

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<PAGE>   90

         Date the exercise of which shall not have had a Material Adverse
         Effect;

                  (e)   any Liens created under the Operative Documents and any
         financing statements filed in connection therewith

                  (f)   pledges or deposits to secure non-delinquent obligations
         under worker's compensation, unemployment insurance and other social
         security legislation; and

                  (g)   Liens arising from legal proceedings, so long as such
         proceedings are being contested in good faith by appropriate
         proceedings diligently conducted and so long as execution is stayed on
         all judgments resulting from any such proceedings.

                  "Permitted Use": with respect to the Equipment as to any
Phase, the use of the Equipment in connection with its manufacturing operations
on the Applicable Site for such Phase in compliance with all applicable
Governmental Requirements and Insurance Requirements, the failure of which to
comply would have or cause a Material Adverse Effect.

                  "Person":  an individual, a corporation, a partnership,an
unincorporated association, a trust or any other entity or organization,
including, but not limited to, a government or political subdivision or other
Governmental Authority.

                  "Phase": the acquisition and installation of any and all
Equipment that is to be subject to this Lease and located at a single Applicable
Site.

                  "Phase Commencement Date": as defined in Section 28(b)of the
Lease.

                  "Phase Completion Date": with respect to each Phase, the
earlier to occur of (i) Completion of such Phase, (ii) the date which is six
months after the Phase Commencement Date for such Phase, and (iii) the last day
of the Acquisition Period.

                  "Plan":  at any time an employee pension benefit plan which is
covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Code and is either (i) maintained by a member of the
Controlled Group for employees of any member of the Controlled Group or (ii)
maintained pursuant to

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a collective bargaining agreement or any other arrangement under which more
than one employer makes contributions and to which a member of the Controlled
Group is then making or accruing an obligation to make contributions or has
within the preceding 5 plan years made contributions but shall not include any
plan which is maintained under the laws of Puerto Rico, is covered by Section
4(b)(4) of ERISA, or is unfunded and maintained primarily for the purpose of
providing deferred compensation for a select group of management, key
executives or highly compensated employees.

                  "Prime Rate": that rate of interest so denominated and set by
Wachovia from time to time as an interest rate basis for borrowings. The Prime
Rate is but one of several interest rate bases used by Wachovia, and is set by
Wachovia as a general reference rate of interest, taking into account such
factors as Wachovia may deem appropriate, it being understood that many of
Wachovia's commercial or other loans are priced in relation to such rate, that
it is not necessarily the lowest or best rate actually charged to any customer
and that Wachovia may make various commercial or other loans at rates of
interest having no relationship to such rate.

                  "Progress Payment Agreement": an agreement substantially in
the form of Exhibit E, as amended, supplemented or otherwise modified from time
to time, which may be executed as to any one, more or all Phases pursuant to
Section 3(a) of the Lease.

                  "Property":  any kind of property or asset, whether real,
personal or mixed, or tangible or intangible, and any interest therein.

                  "Purchase Closing Date":  as defined in Section 15(e) of the
Lease.

                  "Qualified Replacement Term Loan Agreement" means:  (i)
either (x) any amendment, renewal or extension of the Existing Term Loan
Agreement or (y) any other term loan agreement between Wachovia and the Lessee,
the proceeds of which are used to refinance the Existing Term Loan Agreement;
and (ii) in either case, which has a final maturity no earlier than the latest
Scheduled Lease Termination Date for any Phase, as it may be amended, renewed
or extended from time to time (so long as the foregoing clause (ii) is
satisfied).

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<PAGE>   92

                  "Recourse Amount":  for each Phase, means at any time the
excess of (i) the Unrecovered Equipment Cost for such Phase over (ii) the
Non-Recourse Amount for such Phase.

                  "Redeemable Preferred Stock": of any Person means any
preferred stock issued by such Person which is at any time prior to the
Scheduled Lease Termination Date for the Phase having the latest Acquisition
Date during the Acquisition Period either (i) mandatorily redeemable (by
sinking fund or similar payments or otherwise) or (ii) redeemable at the option
of the holder thereof.

                  "Related Contract": for each Phase, any agreement for the
purchase, manufacture, assembly, or installation of the Equipment for such
Phase or any portion thereof or the provision of enhancements and improvements
to the Equipment for such Phase or any portion thereof or otherwise in
connection with the acquisition, ownership, use, operation or sale or other
disposition of the Equipment for such Phase or any portion thereof made
pursuant to the Agency Agreement by the Lessee as Acquisition Agent on behalf
of the Lessor, with one or more Vendors, including, without limitation, all
contracts, bills of sale, receipts and Vendor's warranties.

                  "Rent":  Basic Rent, Interim Special Rent, Supplemental Rent
and the Final Rent Payment, collectively.

                  "Rental Period": with respect to Basic Rent pertaining to any
Phase, the period beginning on the Phase Completion Date for such Phase and
ending on the first Rent Payment Date occurring after the Phase Completion Date
and, thereafter, each subsequent period commencing on each Rent Payment Date
and ending on the next Rent Payment Date or on the Lease Termination Date for
such Phase.

                  "Rent Payment Date": with respect to Basic Rent pertaining to
any Phase, each March 31st, June 30th, September 30th and December 31st of each
year, commencing on the first such date occurring after the Phase Commencement
Date for such Phase, and the Lease Termination Date for such Phase.

                  "Restoration Account":  for any Phase, the interest bearing
account maintained with the Lessor pursuant to Section 14(e) of the Lease and
styled the "Restoration Account" for such Phase.

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                  "Scheduled Amount":  with respect to each Phase, as defined
in Section 3(b)(i) of the Lease.

                  "Scheduled Lease Termination Date":  with respect to each
Phase, the date that is seven (7) years after the Phase Completion Date for
such Phase.

                  "Scheduled Payment":  with respect to each Phase, as defined
in Section 3(b)(i) of the Lease.

                  "Secured Party":  as defined in Section 26 of the Lease.

                  "Soft Costs": with respect to each Phase, all of the
capitalized costs and expenses of any kind or character incurred to design,
install, complete and implement the Equipment for such Phase, including,
without limitation, all professional fees and expenses, and other "soft costs"
of a nature ordinarily and reasonably incurred in connection with the
installation, completion and implementation of the Equipment for such Phase.

                  "Sublessee":  as defined in Section 21(c) of the Lease.

                  "Subsidiary":  any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by the Lessee.

                  "Supplemental Rent":  as defined in Section 3(d) of the
Lease.

                  "Tangible Net Worth": Book Net Worth minus (i) the amount, if
any, of the Lessee's and its Subsidiaries' assets which would be treated as
intangible under GAAP, (ii) any write up in the book value of any fixed asset
resulting from re-evaluation thereof, and (iii) the amount, if any, at which
share of the Lessee appears on the asset side of the Lessee's balance sheet.

                  "Taxes":  any taxes, imposts, levies, duties, deductions or
withholdings of any nature now or at any time hereafter imposed by any
Governmental Authority or by any taxing authority thereof or therein imposed or
levied upon, assessed against or measured by any Rent or other sums payable
hereunder.

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                  "Termination Event":  as defined in Section 15(a) of the
Lease.

                  "Termination Value": as to any Phase, at any time of
determination, the sum of (i) the excess of (a) the aggregate Equipment Cost
for all Equipment allocable to such Phase over (b) the sum of all Scheduled
Payments for such Phase theretofore made to the Lessor, if any, plus (ii) all
accrued, unpaid Interim Rent Payments, Floating Rate Payments and, if
applicable, Fixed Rate Payments for such Phase, all accrued and unpaid
Supplemental Rent through the date of payment of the Termination Value, plus
(iii) all unpaid Impositions through the date of payment of the Termination
Value, plus, (iv) any amounts payable pursuant to Section 27(e)(i) hereof in
connection with the payment of Termination Value, plus (v) as to any Phase as
to which Completion has not occurred, the sum of (a) the aggregate amount of
costs (including acquisition costs and Soft Costs) which it will be necessary
to expend in order to achieve Completion for such Phase plus (b) all
Impositions thereon.

                  "Third Party":  any Person other than (i) the Lessor, (ii)
the Lessee or (iii) any Affiliate of either of them.

                  "Unrecovered Equipment Cost":  for each Phase, means at any
time the sum of (i) the aggregate original Equipment Cost for such Phase, less
(ii) the aggregate amount of Scheduled Payments for such Phase received by the
Lessor.

                  "UCC":  the Uniform Commercial Code as enacted in the State
of Georgia and any other jurisdiction whose laws may be mandatorily applicable.

                  "Vendor":  any designer, supplier, manufacturer or installer
of, or provider of Property or services with respect to, the Equipment or any
Property included therein or any part thereof.

                  "Wachovia":  Wachovia Bank of Georgia, N.A., a national
banking association, in its individual capacity, and its successors.

                                       88

<PAGE>   95

                                 SCHEDULE 3(b)

                               Scheduled Amounts

<TABLE>
<CAPTION>
          Rental           Estimated          Scheduled
          Period            Residual         Amount as a
                                             percentage
                                            of Equipment
                                                Cost
          <S>              <C>              <C>
            1               100.00%             0.00%
            2                97.22%             2.28%
            3                95.50%             2.22%
            4                93.28%             2.22%
            5                91.06%             2.22%
            6                88.84%             2.22%
            7                86.62%             2.22%
            8                84.40%             2.22%
            9                82.18%             2.22%
            10               79.96%             2.22%
            11               77.74%             2.22%
            12               75.52%             2.22%
            13               73.30%             2.22%
            14               71.08%             2.22%
            15               68.86%             2.22%
            16               66.64%             2.22%
            17               64.42%             2.22%
            18               62.20%             2.22%
            19               59.98%             2.22%
            20               57.76%             2.22%
            21               55.54%             2.22%
            22               53.32%             2.22%
            23               51.10%             2.22%
            24               48.88%             2.22%
            25               46.66%             2.22%
            26               44.44%             2.22%
            27               42.22%             2.22%
            28               40.00%             2.22%
</TABLE>

                                       89

<PAGE>   96

                                  SCHEDULE 14

                             Insurance Requirements

         The Lessee will provide, or cause to be provided, insurance in
accordance with the terms of this Schedule as to each Phase, which insurance
shall be placed and maintained with Permitted Insurers.

         (a)      Insurance Coverages and Limits

         At all times subsequent to the Phase Commencement Date for such Phase,
the Lessee shall provide, or cause to be provided, the following property and
liability coverages with respect to the Equipment:

                  (i)   all-risk property coverage, with limits of coverage at
         least equal to the replacement cost (which limits shall be not less
         than $_____________ for the Equipment, which insurance coverage may,
         at the Lessee's option, be included under any "blanket" policy
         maintained by Guarantor so long as such "blanket" policy provides for
         all-risk property coverage with respect to the Equipment and any other
         Property covered thereby, with limits of coverage at least equal to
         the aggregate replacement cost of the Equipment (provided, however,
         that such insurance, in either case, shall provide for replacement
         cost coverage, provided that the insured property is replaced, and,
         provided further, that the insurance shall not have the effect of
         causing the Lessee or any of its Affiliates to be deemed a
         co-insurer), with respect to the Lessee and any Affiliate of the
         Lessee providing services with respect to the Equipment, or if the
         Lessee elects to effect the coverage required by this Paragraph under
         a "blanket" policy, the Lessee, Guarantor and its Affiliates insured
         thereby, such insurance to include, coverage for (x) floods,
         windstorms, hurricanes, tornados, earthquakes, collapse and other
         perils (including debris removal and cleanup) and such insurance to
         cover equipment separated from the Equipment, transit of equipment and
         consumables to and from the Applicable Site, labor claims, in each
         case with respect to the Equipment, and such insurance to include
         coverage for all other risks and occurrences customarily included
         under all-risk policies available with respect to Property similar in
         installation, location and operation to the Equipment (or the
         Equipment

                                       90

<PAGE>   97

         and all other Property insured thereby if all are covered under a
         "blanket" policy), and (y) "boiler and machinery" property damage
         insurance on a comprehensive basis with respect to damage to the
         machinery, plants, equipment or similar apparatus (including
         production machinery) included in the Equipment (or the Equipment and
         all other Property insured thereby if all are covered under a
         "blanket" policy), from risks and in amounts normally insured against
         under machinery policies.

                  (ii)

                           (1) statutory workers' compensation and occupational
                  disease insurance in accordance with applicable state and
                  federal law, and employer's liability insurance with primary
                  and excess coverage limits of not less than $____________;

                           (2) commercial general liability insurance covering
                  operations of the Lessee, contractual liability coverage,
                  contingent liability coverage arising out of the operations
                  of the Equipment, cross-liabilities coverage, sudden and
                  accidental seepage and pollution coverage, and other coverage
                  for hazards customarily insured with respect to Property
                  similar in construction, location, occupancy and operation to
                  the Equipment, with limits complying with the underlying
                  requirements of the excess liability policy described in
                  Paragraph (a)(ii)(3);

                           (3) excess commercial liability insurance in excess
                  of the liability policies described in Paragraphs (a)(ii)(1)
                  and (2) to bring to limits of not less than $______________
                  for each occurrence and in the aggregate per year with
                  respect to the Lessee, Guarantor and its Affiliates.

                  (iii) The policy or policies providing the coverage required
         by paragraphs (a)(i) and (a)(ii)(2) and (a)(ii)(3) may include
         deductible amounts for the account of the Lessee or its Affiliates, as
         the case may be, not to exceed $_____________ in the aggregate for all
         such coverages.

         (b) Insurance Endorsements - Any insurance carried in accordance
herewith shall, except as hereinafter permitted, provide or be endorsed to
provide that:

                                       91

<PAGE>   98

                  (i)   the Lessor, as its interests may appear, shall be
         included as additional insureds or named as loss payees but only with
         respects coverages required by Paragraphs (a)(i), with the
         understanding that any obligation imposed upon the insured (including,
         without limitation, the liability to pay premiums) under any policy
         required by this Schedule shall be the obligation of the Lessee and
         its Affiliates) and not that of the Lessor;

                  (ii)  except with respect to the coverage required by
         Paragraphs (a)(i) and (a)(ii), there shall be a cross-liability and
         severability of interest endorsement providing that to the extent the
         policy is written to cover more than one insured, all terms,
         conditions, insuring agreements and endorsements, with the exception
         of limits of liability and deductibles shall operate in the same
         manner as if there were a separate policy covering each insured;

                  (iii) the insurer thereunder waives all rights of subrogation
         against the Lessor;

                  (iv)  such insurance shall be primary without right of
         contribution of any other insurance carried by or on behalf of the
         Lessor with respect to its interests in the Equipment; and

                  (v)   if such insurance is cancelled for any reason whatsoever
         (including, without limitation, nonpayment of premium) or any material
         change is made in the coverage that affects the interests of the
         Lessor, such cancellation or change shall not be effective as to the
         Lessor for 10 days for nonpayment of premiums and otherwise for 45
         days, in both cases after receipt by the Lessor (at the address
         provided pursuant to Section 22 of the Lease) of written notice sent
         by certified mail from such insurer of such cancellation or change.

         (c) Adjustment of Property Losses - After the occurrence and during
the continuation of an Event of Default or after the occurrence of a
Cancellation Event or Termination Event, the loss, if any, under any property
insurance covering the Equipment required to be carried by this Schedule shall
be adjusted with the insurance companies or otherwise collected, including,
without limitation, the filing of appropriate proceedings, by the Lessee in
consultation with the Lessor.

                                       92

<PAGE>   99

         (d) Reinstatement of Limits - The Lessee shall, or shall cause its
insurance broker to, notify promptly the Lessor at any time when the limits of
the excess commercial liability insurance required by Paragraph (a)(ii)(3)
shall have been reduced, either by reason of payments of, or the establishment
of reserves for the ultimate payment of, claims which have been asserted during
the term of such insurance, by an aggregate amount in excess of $____________.
At such time, the Lessee shall, if so requested by the Lessor, use its best
efforts to reinstate such insurance so as to comply with the requisite limits
prescribed herein.

         (e) Upon request, the Lessee will furnish the Lessor evidence of such
insurance relating to the Equipment.

         (f) Additional Insurance by the Lessor or the Lessee Nothing in this
Schedule shall prohibit the Lessor or the Lessee, as their respective interests
may appear, from maintaining for its own account, at the expense of the Person
purchasing such insurance, additional insurance on or with respect to the
Equipment, or any part thereof, with coverage exceeding that otherwise required
under this Schedule, unless such insurance would conflict with or limit the
insurance otherwise required under this Schedule.

                                       93

<PAGE>   100

                                                                       EXHIBIT A

                       ACQUISITION, AGENCY, INDEMNITY AND
                               SUPPORT AGREEMENT

                                    Between

                            FLOWERS INDUSTRIES, INC.

                                      and

                          WACHOVIA LEASING CORPORATION

                          Dated as of October 20, 1995

                                       94

<PAGE>   101

         ACQUISITION, AGENCY, INDEMNITY AND SUPPORT AGREEMENT dated as of
October 20, 1995 (as it may be amended or supplemented from time to time, this
"Agreement"), by and between FLOWERS INDUSTRIES, INC., a Georgia corporation
(the "Company"), and WACHOVIA LEASING CORPORATION, a North Carolina corporation
(the "Lessor"). All capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings assigned to them in Schedule 1(b) to
that certain Master Lease Agreement dated of even date herewith (as amended,
supplemented or otherwise modified, the "Lease") by and between the Company, in
its capacity as the Lessee, and the Lessor, in its capacity as the Lessor.

                                    RECITALS

                  A. Pursuant to the Lease, the Company, in its capacity as the
Lessee, has agreed to lease the Equipment for all Phases for the Permitted Use
in accordance with the terms and conditions set forth in the Lease.

                  B. To induce the Lessor to enter into the Lease and the other
Operative Documents, the Company has agreed to provide, or cause to be
provided, to the Lessor all the rights, services, and other matters as may be
necessary from time to time for the design, acquisition, installation,
assembly, maintenance and operation of the Equipment, and has agreed to
indemnify the Lessor for certain environmental and other risks relating to the
Equipment, all as hereinafter provided.

         NOW, THEREFORE, in consideration of the premises and intending to be
legally bound by this Agreement, the Company and the Lessor hereby agree as
follows:

                                   ARTICLE I.

                               Agency Appointment

         Section A.  Appointment of Acquisition Agent. The Lessor hereby
appoints the Acquisition Agent as its agent and attorney-in-fact with respect
to each Phase (the Company in such capacity is herein called the "Acquisition
Agent"), and the Acquisition Agent hereby agrees to act as the Lessor's agent
and attorney-in-fact, to perform certain of the obligations and
responsibilities of the Lessor under the Lease, to cause, and to be solely
responsible for causing, the Equipment for each Phase to be

                                       95

<PAGE>   102

purchased and designed and to be installed and assembled substantially in
accordance with all Governmental Requirements and Insurance Requirements and to
undertake such other powers, duties and obligations as are set forth herein.

         Section B.  Term of Agency Relationship. The agency relationship
created herein between the Acquisition Agent and the Lessor shall commence as
of the date hereof and shall end on the sooner to occur of: (a) with respect to
any particular Phase, the date that the Lessor no longer owns any of the
Equipment for such Phase, (b) with respect to all Phases, the occurrence of a
default by the Lessee in the payment of the Final Rent Payment or the
Termination Value for all Phases in accordance with the terms of Section 15 of
the Lease, and (c) with respect to any particular Phase, the date the Lessee
gives the Lessor notice that it will not exercise the option to purchase any of
the Equipment for such Phase pursuant to the terms of the Lease, and on the
date any such event occurs the Lessor revokes the Company's right to act as
Acquisition Agent hereunder for such Phase or for all Phases, as applicable.
The Lessor may, but is not obligated to, revoke the Company's right and
obligation to act as Acquisition Agent hereunder (x) with respect to any Phase,
any time after a Lease Termination Date or Option Date for such Phase, and (y)
with respect to all Phases, any time after a Cancellation Event.

         Section C.  Powers, Duties and Obligations.  The Acquisition Agent
shall have the following powers, duties and obligations with respect to each
Phase:

                  1.    To take the following actions to cause the Acquisition
Date to occur with respect to each item of Equipment in each Phase:

                  (i)   To furnish to the Lessor, as soon as available, a
         detailed list of the Equipment to be acquired for and included in each
         Phase, and to acquire the Equipment for such Phase in the name of the
         Lessor, and obtain and furnish to the Lessor bills of sale or other
         evidence of ownership thereof in the Lessor's name, taking good and
         marketable title thereto, free and clear of all liens and encumbrances
         of third parties, and to obtain and furnish to the Lessor full
         releases of all seller's mechanic's and other similar liens (a) as of
         each payment date for an item of the Equipment or service in respect
         thereof, to the extent of

                                       96

<PAGE>   103

         such item or service and (b) as of the Acquisition Date therefor;

                  (ii)  In the name and for the benefit of the Lessor, to
         negotiate, enter into and perform, and furnish to the Lessor the
         originals of, all Related Contracts and all other contracts which are
         necessary or desirable in connection with the acquisition, development
         and installation of the Equipment for such Phase, including contracts
         with all Vendors and contractors for supplies, equipment, materials
         and services, including, without limitation, necessary design work
         affecting the Equipment and to cause all such Related Contracts and
         other contracts to be assignable;

                  (iii) To obtain and furnish to the Lessor all Permits that
         are or will become Applicable Permits with respect to such Phase and
         the Applicable Site by the Acquisition Date for such Phase, except
         Applicable Permits customarily obtained or which are permitted by
         Governmental Requirements to be obtained after the acquisition of the
         Equipment for such Phase (in which case the Acquisition Agent, having
         completed all appropriate due diligence in connection therewith
         pursuant hereto, shall certify to the Lessor that it has no reason to
         believe that such Permits will not be granted in the usual course of
         business prior to the date that such Permits are required by
         Governmental Requirements), which such obtained Permits shall be in
         proper form, in full force and effect and not subject to any appeal or
         other unsatisfied contest that may allow modification or revocation
         thereof;

                  (iv)  To obtain and furnish to the Lessor evidence of
         perfection under local law of the Lessor's ownership of the Equipment
         for each Phase subject to a lease intended as security and file
         protective financing statements under applicable local law, in each
         case properly executed by the Lessee, evidencing a first priority,
         perfected interest in the Equipment for such Phase in favor of the
         Lessor as security for payment by the Lessee of all amounts, and the
         performance of all obligations, of the Lessee under the Lease;

                  (v)   To obtain and furnish to the Lessor a Certificate of
         Acceptance in substantially the form of Exhibit B attached to the
         Lease from the Lessee with respect to the Equipment for each Phase;

                                       97

<PAGE>   104

                  (vi) To obtain and furnish to the Lessor a Lease Supplement
         in substantially the form of Exhibit C attached to the Lease from the
         Lessee with respect to such Equipment for each Phase; and

                  (vii) Upon completion of each of the foregoing with respect
         to any item of Equipment, to notify the Lessor thereof and that the
         Acquisition Date has occurred with respect to such item of Equipment;

                  (b)   To perform all acts which the Acquisition Agent may deem
necessary on behalf of the Lessor, but only in the name of the Acquisition
Agent, in connection with Completion, including, without limitation,

                  (i)   performing or arranging the purchasing, designing,
         construction, engineering, assembling, installing and testing of the
         Equipment for such Phase in accordance with the requirements for
         Completion set forth on Schedule 1(3)(b) attached hereto and by
         reference made a part hereof;

                  (ii)  completing the installation and testing of all Equipment
         in a manner necessary to meet Completion for such Phase on or before
         the Phase Completion Date for such Phase;

                  (iii) performing or causing to be performed all work in
         connection with Completion to be done in a good and workmanlike manner
         and in compliance with all Governmental Requirements and Insurance
         Requirements; and

                  (iv)  paying, or causing to be paid, in accordance with
         prudent industry practices in substantial compliance with applicable
         Governmental Requirements all costs and expenses of Completion for
         such Phase and performing all obligations of such Completion, and
         performing or causing to be performed all contracts and other
         agreements, including without limitation all Related Contracts,
         entered into by or on behalf of the Lessor with respect to such Phase,
         and for any Phase, advancing to any Vendor any advance payments,
         progress payments and full payments required thereby, using funds
         obtained from the Lessor pursuant to the Progress Payment Agreement
         for such Phase;

                  (v)   if and to the extent that the aggregate Equipment Costs
         for all Phases exceeds $50,000,000, use the Acquisition Agent's own
         funds to obtain Completion for all

                                       98

<PAGE>   105

         Phases, and assign all Property necessary for Completion of the
         Equipment and purchased with the funds of the Acquisition Agent or its
         Affiliates to the Lessor to be owned as part of the Equipment
         provided, however, only such Property as is necessary to fulfill the
         requirements of Completion shall be assigned to the Lessor; and

                  (vi)  executing and delivering to the Lessor a Completion
         Certificate for such Phase in the form of Exhibit A attached hereto
         and by reference made a part hereof upon Completion of such Phase;

                  (c)   To take all actions in operating and managing the
Equipment for each Phase as it would take as a reasonably prudent operator in
the management and operation of its own Properties consistent with applicable
Governmental Requirements, including, without limitation:

                  (i)   marking the Equipment for each Phase to disclose the
         interest of the Lessor to the extent relevant under applicable law or
         to the extent deemed appropriate by the Lessor; and

                  (ii)  preserving the Lessor's rights in the Equipment for such
         Phase and under all Related Contracts pertaining to such Equipment;

                  (d)   To keep the Equipment for each Phase free of all Liens
except Permitted Liens, provided that the Lessee shall have the right to
contest Impositions in accordance with Section 13 of the Lease;

                  (e)   To transfer and hold all of the evidence of ownership
of the Equipment for each Phase in the name of the Lessor;

                  (f)   To avoid purchasing Property from or entering into any
agreement with Affiliates of the Acquisition Agent in connection with the
Equipment (except as expressly permitted by the Lease) for any Phase unless
upon fair and reasonable terms that are not less favorable to the Lessor than
those which might be obtained in an arm's-length transaction between
unaffiliated Persons in the same business at the time such terms are agreed
upon;

                                       99

<PAGE>   106

                  (g)   Prior to the end of the Acquisition Period, to obtain
and submit to the Lessor for its approval an appraisal as to each Phase (which
may be a global appraisal as to all Phases) which, upon approval by the Lessor,
satisfies the requirements for and will constitute an Approved Appraisal.

                  (h)   To attempt to sell the Equipment for each Phase for cash
on the Lease Termination Date for such Phase (unless such date also constitutes
the Option Date for such Phase), subject to the Lessor's prior written approval
of the terms of the sale, and to grant, bargain, sell, convey or contract for
the sale or conveyance of the Equipment for such Phase in connection with the
duties in this paragraph;

                  (i)   To keep and maintain proper books and records relating
to the accounts of the Equipment for each Phase and the Book Value of the
Equipment for each Phase and the Property comprising the Equipment for each
Phase;

                  (j)   To pay for, exchange or otherwise settle accounts for
the acquisition of supplies, equipment, materials or services affecting the
Equipment for each Phase;

                  (k)   To ask for, demand, collect, recover, and receive all
moneys which may become due and owing by reason of conveyances, whether by
contract, bill of sale or other instruments or to pay for, exchange or
otherwise settle accounts for the acquisition of supplies, equipment, materials
or services affecting the Equipment for each Phase; provided however, the
Acquisition Agent shall have the right in its reasonable discretion to settle
or waive claims in an aggregate amounts less than $100,000.00 for any Phase.

                  (l)   To ask for, demand, collect, and recover, each in the
name of the Lessee, any and all sums that may be due on account of any damage
to any of the Equipment for an Phase; and

                  (m)   To manage correspondence and conduct communications with
all Governmental Authorities with regard to matters affecting the Equipment for
each Phase, including, but not limited to, the acquisition of all Permits and
satisfaction of all Governmental Requirements and Insurance Requirements and
with regard to rights of way and easements, if any, affecting the Equipment for
each Phase.

                                       100
<PAGE>   107
         Section D.  Disclosure. The Acquisition Agent shall act in its sole
discretion in choosing materials for the Equipment for each Phase and hiring
any contractors and subcontractors to work on the Equipment for each Phase. The
Lessor has no liability for or in respect of the Equipment for any Phase as
provided in Section 11 of the Lease and shall be indemnified and held harmless
by the Acquisition Agent as provided herein, in the Lease and the other
Operative Documents.

                                  ARTICLE II.

                   Basic Services, Contracts and Rights, Etc.

         Section A.  Plans and Design Specifications. As soon as available, the
Company, at no cost to the Lessor, shall deliver, or cause to be delivered, to
the Lessor a complete set of all "as-built" plans, drawings and specifications
for the Equipment for each Phase, including all design information, safety
systems, and associated improvements which comprise a portion of the Equipment,
which items and information to the best of the Company's knowledge shall be
true, correct and complete.

         Section B. [RESERVED]

         Section C. Utilities, Services and Contracts. Within 120 days prior to
the Scheduled Lease Termination Date for each Phase (or immediately if the
Lease terminates as to any Phase on any Cancellation Date or Lease Termination
Date which is not a Scheduled Lease Termination Date for such Phase), and
provided that the Company shall not have elected to purchase, or purchased, the
Equipment for such Phase pursuant to the terms of the Lease, at all times
thereafter until such Equipment is purchased by a Third Party, the Company, at
no cost to the Lessor (with the Company's costs to be reimbursed out of any
excess of the net proceeds of such sale over the Non-Recourse Amount for such
Equipment, pursuant to Section 15(a)(ii)(B)(2) of the Lease, provided that the
Final Rent Payment has been made, pursuant to Section 15(a)(ii)(B)(1) of the
Lease), shall provide, either directly or indirectly, to the Lessor, in
substantial compliance with all Governmental Requirements (including, without
limitation, all Environmental Requirements, Environmental Authorizations and
Environment Judgments and Orders and Insurance Requirements), as confirmed by
the Lessor, (a) access to Equipment for such Phase and the Applicable Site
therefor, and to storage, transportation and maintenance facilities (including

                                      101

<PAGE>   108

maintenance equipment and supplies for the Equipment), storage, security,
licenses, rights, permits, reports and other general items that are identified
in due diligence, in each case necessary or appropriate for the continued
preservation and maintenance of the Equipment for such Phase pending such sale
and delivery of the Equipment to the purchaser thereof (or as directed by the
Lessor), (b) an inventory of supplies necessary for the full and efficient
operation of the Equipment for such Phase and (c) services (whether on or off
the Applicable Site, including any shared off-site facilities), including,
without limitation, water, electricity, heating, ventilation, air conditioning,
lighting, security, steam, waste water treatment and sanitation, receiving and
shipping facilities as such rights, licenses, easements, services and utilities
are or may be necessary for the full and efficient operation of the Equipment
for such Phase.

         Section D.  Equipment and Other Rights. Within 120 days prior to the
Scheduled Lease Termination Date for each Phase (or immediately if the Lease
terminates on any Cancellation Date or Lease Termination Date which is not a
Scheduled Lease Termination Date for such Phase), and provided that the Company
shall not have elected to purchase, or purchased, the Equipment for such Phase
pursuant to the Lease, at all times thereafter for the Term of this Agreement,
the Company shall provide to the Lessor, by rent-free lease or other similar
arrangement, any and all equipment and maintenance tools, and, for a price
equal to the Company's cost therefor if not included in Equipment Cost, all
spare parts (including, without limitation, rebuilt parts and major components)
and maintenance equipment not covered by the services provided, or caused to be
provided, pursuant to Section 3.2(a), as are or may be customarily maintained
on the Applicable Site for such Phase by the Company for the operation of the
Equipment for such Phase in the manner described in Article III. Within the
period set forth above (or immediately in the circumstance contemplated above)
the Company, in compliance with all Governmental Requirements, shall also
transfer, or cause to be transferred, to the Lessor any and all equipment
inspection reports and maintenance records and all licenses and Applicable
Permits required to operate the Equipment for such Phase and all such equipment
located on the Applicable Site as confirmed by the Lessor. Within the period
set forth above (or immediately in the circumstance contemplated above), the
Company shall provide, or cause to be provided, to the Lessor, by
non-exclusive, royalty free license or other similar arrangement, rights to all
patents, patent applications, proprietary computer software, operating and

                                      102

<PAGE>   109

other manuals, "know-how," copyrights or other intellectual property (excluding
trade names and trademarks) as are or may be necessary for the operation of the
Equipment for such Phase in the manner described in Article III. The Company
represents and warrants to the Lessor that as of the Closing Date, and the
Phase Completion Date for such Phase, and at all times thereafter during the
term of this Agreement, the construction, assembly, installation, ownership,
use, maintenance and operation of the Equipment for each Phase and Property
included therein in accordance with the uses permitted by any necessary
licenses and Applicable Permits held by the Company does not and will not cause
a violation of any Governmental Requirements or Insurance Requirements.

         Section E.     Cost of Services and Rights.

                  1.    Any and all services described in Section 2.3(c) and all
other rights existing or necessary for the full and efficient operation of the
Equipment for each Phase during the term of this Agreement shall be provided to
the Lessor at the cost specified in Section 3.2.

                  2.    Unless otherwise provided herein, any and all supplies
provided by the Company pursuant to this Article II after the Lease Termination
Date for each Phase (or any earlier date on which the Lease terminates as
provided therein) and for so long as this Agreement remains in effect (i) which
are generally commercially available shall be priced at fair market value, and
on arms-length terms and conditions subject to applicable provisions of
agreements with producers, shippers and suppliers and Governmental
Requirements, or (ii) which are not generally commercially available shall be
priced at an amount equal to the Company's cost (excluding any profit margin).

                  3.    At the Company's expense, after any Lease Termination
Date or Cancellation Date, as applicable, for any Phase, so long as this
Agreement then remains in effect, the Company and the Lessor shall select a
third party to review, on an annual basis, the books and records of the
Company's operation of the Equipment and the Company hereby agrees to permit
access to such books and records, in order to verify that the charges paid by
the Lessor for such supplies during the immediately preceding twelve (12) month
period reflect the costs incurred by the Company in supplying the same
(exclusive of any profit margin).

                                      103

<PAGE>   110

                                  ARTICLE III.

           Operation and Management of the Equipment Following Lease
Termination.

         Section A.  Engagement. From the Lease Termination Date for each Phase
(or any earlier date on which the Lease terminates as provided therein) through
the date this Agreement terminates with respect to such Phase in accordance
with Section 8.4, the Company hereby agrees to (a) provide and perform, or
cause to be provided or performed, all services, labor, supervision,
management, maintenance, repairs, common facilities and consumables necessary
for the operation of the Equipment for such Phase for the Permitted Use, in
accordance with all Governmental Requirements and Insurance Requirements, and
(b) to perform the additional duties as set forth in this Agreement.

         Section B.  Duties and Responsibilities of the Company as Operator
of the Equipment.

During the period specified in Section 3.1:

                  1.    Services. The Company shall (i) perform, or cause to be
performed on behalf of the Lessor, all operation and maintenance whatsoever of
the Equipment for each Phase, (ii) supply, or cause to be supplied, all
services, goods and materials required to operate and maintain the Equipment
for each Phase, including without limitation, those services, goods and
materials referenced in Article II, and (iii) provide such additional services
as may be reasonably requested by the Lessor for the full and efficient
operation of the Equipment for each Phase, all of the foregoing to be done or
performed in accordance with the terms and conditions set forth herein.

                  2.    Standard of Care. The Company shall perform all of its
duties and obligations under Article II and this Article III in accordance with
the standards mandated under Section 7 of the Lease as if fully set forth
herein (which standards are hereby incorporated, mutatis mutandis, herein by
reference) and in a good, workmanlike and commercially reasonable manner. The
Company shall exercise such care and shall in the same manner as a prudent
Person engaged in the business of managing and operating Property similar to
the Equipment for each Phase and used in a similar location for the Permitted
Use would in the advancement and protection of such Person's own economic
interests and the maximization of such Person's profits

                                      104

<PAGE>   111

therefrom. Maintenance shall be scheduled so as to minimize interference with
the use operation of the Equipment for each Phase and cost consistent with good
industry operating and safety standards and all Governmental Requirements and
Insurance Requirements.

                  3.    Compliance with Governmental Requirements and Insurance
Requirements. The Company shall comply with, and cause the Equipment for each
Phase (including the maintenance, use and operation thereof) and all personnel
of the Company to comply with, the Insurance Requirements (which Insurance
Requirements are hereby incorporated, mutatis mutandis, herein by reference as
if fully set forth herein) and all Governmental Requirements in effect from
time to time.

                  4.    Personnel. The Company shall at all times employ, or
cause to be employed, qualified and properly trained personnel to perform the
Company's obligations under this Agreement, and shall pay all wages and
benefits required by law or contract. The Company shall be responsible for all
matters relating to labor relations, working conditions, training, employee
benefits, safety programs and related matters pertaining to such employees. The
Lessor shall have the right to request the removal from the operation or
maintenance of the Equipment for any Phase of any personnel deemed unqualified
by the Lessor.

                  5.    Warranties and Guarantees. The Company shall use its
best reasonable efforts consistent with good industry practices to obtain
warranties for the Lessor for parts, equipment, materials or services provided
by third-party suppliers in fulfilling the Company's obligations under this
Agreement. The Company shall comply with all applicable warranties and
guarantees presented by Vendors or contractors, and shall take no action that
in any way impairs any rights or claims of the Lessor under this Agreement or
any Vendor's or other Person's warranty. Without limiting the foregoing, the
Company shall use spare parts that will not adversely affect the Lessor's
protection or rights under such warranties or guarantees.

                  6.    Consultations. Notwithstanding any other provision of
this Agreement, the Company will consult with the Lessor and any other
independent experts appointed by or on behalf of the Lessor to review any
matter pertaining directly or indirectly to the performance of the Company's
obligations under this Agreement and the Company shall provide them with
access,

                                      105

<PAGE>   112

during normal business hours and upon no less than two (2) days' prior written
notice, to the Equipment for any Phase and the Applicable Site therefor and
shall make available to such experts, at the Company's expense, all
information, reports, logs and other documents, and shall make the Company's
personnel available for consultation with such experts, all as requested by the
Lessor.

                  7.    Permits. The Company shall apply for and maintain in
full force and effect, at the cost and expense of the Company, any and all
Applicable Permits required to be obtained, maintained or held by either the
Company or the Lessor as and when required by law to be obtained and in proper
form therefor and maintain all such Applicable Permits in full force and
effect.

                  8.    Compliance with Law; Certain Agreements.

                        a.    The Company shall also comply with, and cause
the Equipment for each Phase (and its operation) to comply with, the various
requirements imposed on the Lessee set forth in Sections 7, 9, 10, 12, 13, 14,
16 and 20 of the Lease (which sections are hereby incorporated mutatis mutandis
herein by reference as if fully set forth herein).

                        b.    The Company shall also not take or fail to take
any action which would result in the failure of the Equipment for any Phase to
be operated on a continuing basis for the Permitted Use in accordance with in
the design therefor.

                  9.    Removal. The Lessor may at any time, upon five (5) days
written notice, terminate its engagement of the Company under this Agreement
without terminating this Agreement pursuant to Section 8.4; provided, however,
that the Lessor shall, upon two week's written notice to the Company, be
entitled to request the Company to resume its duties under this Agreement for
the duration of the term of this Agreement and the Company shall comply with
such request.

                  10.   Independent Contractor Status. The Lessor acknowledges
that the Company, in performing its duties under this Article III to maintain
and operate the Equipment for each Phase, is acting as an independent
contractor and except as otherwise expressly provided by this Agreement, the
Lessor shall have no right to control the conduct of the Company or its
personnel in the proper performance of the obligations of the

                                      106

<PAGE>   113

Company under this Agreement. The Company acknowledges that the Lessor is the
owner of the Equipment for each Phase and, as such, is entitled to control such
Equipment and its use, subject to the provisions of this Agreement and of the
Lease.

                  11.   Payment of Costs. All reasonable and necessary costs
associated with the continued normal operation, preservation and maintenance of
the Equipment for each Phase during the period and in the manner specified by
this Article III ("Support Expenses") shall be timely advanced by the Company
on behalf of the Lessor subject to reimbursement as hereafter set forth. All
such Support Expenses advanced by the Company shall be accounted for by the
Company and reported to the Lessor pursuant to monthly written operating
reports certified by an authorized officer of the Company. The Lessor shall
reimburse the Company for support expenses actually advanced by the Company
with respect to any Phase, together with simple interest thereon at a rate per
annum equal to 80% of the Base Rate, on the earlier to occur of the date
following (i) the termination of this Agreement as to such Phase in accordance
with Section 8.4 hereof, or (ii) the date which is three (3) years following
the Lease Termination Date or Cancellation Date for such Phase giving rise to
the engagement established under Section 3.1. Reimbursement under subsection
(i) of this Section 3.2(l) with respect to any Phase shall be made by the
Lessor out of any excess of the net proceeds of the sale of the Equipment for
such Phase to a Third Party over the Non-Recourse Amount for such Equipment,
pursuant to Section 15(a)(ii)(B)(2) of the Lease, provided that the Final Rent
Payment has been made, pursuant to Section 15(a)(ii)(B)(1) of the Lease);
provided that should such proceeds be insufficient to cover the Lessor's
obligation hereunder to reimburse the Company for Support Expenses (plus
interest) in full, the balance of such Support Expenses (and interest) shall be
payable on the date set forth in subsection (ii) above. The Company's right to
reimbursement pursuant to (i) above shall at all times and in all respects be
subject and subordinate to the rights of the Lessor to receive full repayment
of the Final Rent Payment and all other amounts payable to the Lessor under the
Lease. Notwithstanding anything to the contrary contained herein, the Lessor
shall not be entitled to reimbursement for any costs expended or incurred from
the Lease Termination Date or Cancellation Date, as applicable, for any Phase
through the Purchase Closing Date for such Phase, if extended by the Lessor
under Section 15(e) of the Lease, in the event that the Company elects to
purchase the Equipment for such Phase and elects to remain in possession of
such Equipment pursuant to the license referenced in Section

                                      107

<PAGE>   114

15(e) of the Lease. All such costs shall be the responsibility of the Company
and shall represent the license fee payable in consideration of the rights
afforded under such license.

                                  ARTICLE IV.

                                Indemnification

         Section A.  Indemnities. The Company agrees, in addition to any other
indemnity obligations set forth in the Lease and any other Operative Document,
to indemnify and save harmless, the Lessor and any of its successors and
assigns, and its officers, directors, incorporators, shareholders, employees,
agents, partners, attorneys, affiliates and servants (individually an
"Indemnified Party" and collectively the "Indemnified Parties") from and
against all liabilities, Liens, Impositions, losses, obligations, claims,
damages (including, without limitation, penalties, fines, court costs and
administrative service fees), penalties, demands, causes of action, suits,
proceedings (including any investigations, litigation or inquiries), judgments,
orders, sums paid in settlement of claims, and costs and expenses of any kind
or nature whatsoever, including, without limitation, reasonable attorneys' fees
and expenses and all other expenses incurred in connection with investigating,
defending or preparing to defend any cause of action, suit or proceeding
(including any investigations, litigation or inquiries) or claim which may be
incurred by or asserted against or involve any of them (whether or not any of
them is named as a party thereto) as a result of, arising directly or
indirectly out of or in any way related to (a) the failure of the Company to
perform or caused to be performed, or the inadequacy of, the environmental due
diligence required under Article IV above, (b) the breach of any representation
or warranty set forth under the Lease or any of the other Operative Documents
regarding Environmental Requirements, (c) the failure of the Company to perform
any obligation required to be performed under the Lease or any other Operative
Documents pursuant to Environmental Requirements, and (d) all acts or omissions
by or on behalf of the Company (both in its individual capacity and in its
capacity as Acquisition Agent), its contractors, employees, agents, licensees,
representatives or any other Person for whose conduct the Company is
responsible in connection herewith under this Agreement (collectively, the
"Indemnified Risks"); provided, however, that no Indemnified Party shall be
entitled to indemnity (or any other payment or reimbursement) for any
Indemnified Risks to the extent

                                      108

<PAGE>   115

such Indemnified Risks result from or arise out of the willful misconduct or
gross negligence of such Indemnified Party.

         Section B.  Defending Claims. If any cause of action, suit, proceeding
or claim arising from any of the foregoing is brought against any Indemnified
Party, whether such action, proceeding, suit or claim shall be actual or
threatened, or in preparation therefor, the Company will have the right, at its
expense, to assume the resistance and defense of such cause of action, suit,
proceeding or claim or cause the same to be resisted and defended; provided
that such Indemnified Party shall be entitled (but not obligated) to
participate jointly in such defense, in which case such Indemnified Party will
be responsible for its own legal fees or other expenses, if any, related to
such defense incurred subsequent to the joint participation by such party in
such defense. Notwithstanding the foregoing, if any Indemnified Party shall
have been advised by counsel chosen by it that there may be one or more legal
defenses available to such Indemnified Party that are different from or
additional to those available to the Company, the Indemnified Party may assume
the defense of such action and the Company agrees to reimburse such Indemnified
Party for the reasonable fees and expenses of any counsel retained by the
Indemnified Party. The Company may settle any action which it defends hereunder
on such terms as it may deem advisable in its sole discretion, subject to its
ability promptly to perform in full the terms of such settlement. No
Indemnified Party may seek indemnification or other reimbursement or payment,
including attorneys' fees or expenses, from the Company for any cause of
action, suit, proceeding or claim settled, compromised or in any way disposed
of by the Indemnified Party without the Company's prior written consent, which
will not be unreasonably withheld.

         Section C.  Survival. The obligations of the Company under this
Article V shall survive the expiration or any termination of this Agreement
(whether by operation of law or otherwise) and the payment of amounts owed by
the Lessor and the Company under this Agreement, the Lease and the other
Operative Documents.

         Section D.  Payment upon Demand.  Upon demand for payment by any
Indemnified Party of any Indemnified Risks incurred by it for which
indemnification is sought, the Company shall pay when due and payable the full
amount of such Indemnified Risks to the

                                      109

<PAGE>   116

appropriate party, unless and only so long as: (a) the Company shall have
assumed the defense of such action and is diligently prosecuting the same; (b)
the Company is financially able to pay all its obligations outstanding and
asserted against the Company at that time, including the full amount of the
Indemnified Risks; and (c) the Company has taken all action as may be necessary
to prevent (i) the collection of such Indemnified Risks from the Indemnified
Party; (ii) the sale, forfeiture or loss of the Equipment for any Phase to
which such Indemnified Risk relates or any portion thereof during such defense
of such action; and (iii) the imposition of any civil or criminal liability for
failure to pay such Indemnified Risks when due and payable.

         Section E.  Acknowledgement of Scope of Indemnity.  The Company
acknowledges and agrees that (a) its obligations under this Article V are
intended to include and extend to any and all liabilities, Liens, Taxes,
losses, obligations, claims, damages (including, without limitation, penalties,
fines, court costs and administrative service fees), penalties, demands, causes
of action, suits, proceedings (including any investigations, litigation or
inquiries), judgments, orders, sums paid in settlement of claims, costs and
expenses (including, without limitation, response and mediation costs,
stabilization costs, encapsulation costs, and treatment, storage or disposal
costs), imposed upon or incurred by or asserted at any time against any
Indemnified Party (whether or not indemnified against by any other party) as a
result of, arising directly or indirectly out of or in any way related to (i)
the treatment, storage, disposal, generation, use, transport, movement,
presence, release, threatened release, spill, installation, sale, emission,
injection, leaching, dumping, escaping or seeping of any hazardous substance or
material containing or alleged to contain hazardous substance at or from the
Equipment for any Phase or the Applicable Site therefor or any part thereof;
(ii) the violation or alleged violation of any Environmental Requirements
relating to or in connection with the Equipment for any Phase or the Applicable
Site therefor or any part thereof or any acts or omissions thereon or relating
thereto; (iii) all other federal, state and local laws designed to protect the
environment or persons or property therein, whether now existing or hereinafter
enacted, promulgated or issued by any governmental authority relating to or in
connection with the Equipment for any Phase or the Applicable Site therefor or
any part thereof or any acts or omissions thereon or relating thereto; (iv) the
Company's failure

                                      110

<PAGE>   117

to comply with its obligations under Section 7 of the Lease; and (v) any
abandonment of the Equipment for any Phase by the Company.

         Section F.  Best Efforts Notice. In case any action shall be brought
against any Indemnified Party in respect of which indemnity may be sought
against the Company, such Indemnified Party shall use best efforts to promptly
notify the Company in writing, but the failure to give such prompt notice shall
not relieve the Company from liability hereunder.

                                   ARTICLE V.

                       Reversion of Rights and Contracts.

         Upon payment of the Termination Value for any Phase (or for all
Phases, as applicable) on the Purchase Closing Date therefor as provided in
Section 15 of the Lease: (a) the various agreements, licenses, Applicable
Permits and contracts, including without limitation Related Contracts, to be
provided hereunder by Company to the Lessor shall revert to the Company (or be
transferred to the Company), (b) service contracts with the Company, property
rights and licenses granted by the Company to the Lessor shall terminate or be
transferred to the Company, and (c) Third Party service contracts shall be
assigned by the Lessor to the Company, without recourse and without any
representation or warranty whatsoever. Upon the termination of the Lease as to
any Phase and the failure of the Company or one of its Affiliates to purchase
the Equipment for such Phase as provided in Section 15 of the Lease, all such
agreements, Applicable Permits, contracts, property rights and licenses and
Third Party service contracts pertaining to such Phase, including without
limitation Related Contracts, shall remain in place unless terminated by the
Lessor.

                                  ARTICLE VI.

                              Additional Support.

         In the event that neither the Company nor any of its Affiliates
purchases the Equipment for any Phase from the Lessor pursuant to the Lease,
the parties hereto agree to negotiate in

                                      111

<PAGE>   118

good faith to provide to the Lessor such support in addition to that provided
for in this Agreement as the Lessor may deem necessary to maintain, use and
operate the Equipment for such Phase for the Permitted Use or any other purpose
requested by the Lessor.

                                  ARTICLE VII.

                                 Miscellaneous.

         Section A.  Governing Law; Assignability, etc. THIS AGREEMENT
(INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA, OTHER THAN
THE CONFLICT OF LAWS RULES THEREOF. This Agreement supersedes all prior
agreements among or between the parties with respect to the matters addressed
herein and shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto. After the
expiration or the termination of the Lease as to any Phase, and provided that
the Company (or an Affiliate thereof) shall not have purchased the Equipment
for such Phase in accordance with the terms of the Lease, the Lessor may, at
any time, assign its rights hereunder to any permitted assignee of the Lessor
under the Lease, without the prior written consent of the Company. The Company
may not delegate all or any part of its obligations or assign any of its rights
hereunder without the prior written consent of the Lessor.

         Section B.  [Reserved]

         Section C.  Amendments. No change, waiver, amendment or modification
of any of the provisions of this Agreement shall be valid unless set forth in a
written instrument signed by the parties hereto, in compliance with the
requirements set forth in the Lease.

         Section D.  Term; Option. Except as otherwise expressly provided
herein, this Agreement and the parties' obligations hereunder shall commence on
the date hereof and shall terminate as to each Phase upon the expiration or
other termination of the Lease as to such Phase and consummation of the
purchase by the Company (or an Affiliate thereof) of the Equipment for such
Phase for the Termination Value therefor in accordance with the Lease;
provided, however, that upon the termination of the Lease for any

                                      112

<PAGE>   119

Phase, and provided that the Company (or an Affiliate thereof) shall not have
purchased the Equipment for such Phase and paid the Termination Value therefor
in accordance with the terms of the Lease, this Agreement shall continue in
full force and effect as to such Phase until the date the Equipment for such
Phase is sold to a Third Party or any earlier written notice from the Lessor of
its election to terminate this Agreement as to such Phase.

         Section E.  Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be an original, and all of which
together shall constitute but one and the same instrument. This Agreement may
be delivered by facsimile transmission of the relevant signature pages hereof.

         Section F.  Further Assurances. The Company shall take all appropriate
actions and shall execute any documents, instruments or conveyances of any kind
which may be necessary or advisable to carry out the provisions hereof,
including, without limitation, all documents required by Governmental
Authorities, and respond to all inquiries of Governmental Authorities
concerning the Equipment for any Phase.

                                      113

<PAGE>   120

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement
hereto to be entered into by one of its officers thereunto duly authorized.

                                          LESSOR:

                                          WACHOVIA LEASING CORPORATION

                                          By:
                                             ----------------------------------
                                              Title:

                                          COMPANY:

                                          FLOWERS INDUSTRIES, INC.

                                          By:
                                             ----------------------------------
                                              Title:

                                      114

<PAGE>   121

                                Schedule 1.3(b)

                   Requirements for Completion for each Phase

Completion shall occur as to any Phase when each of the following requirements
has been satisfied:

1.    The Acquisition Date shall have occurred for each item of Equipment in
such Phase, with all of the actions set forth in Section 1.3(a)(i) through
(vii), inclusive, of the Agency Agreement having been taken for all such items.

2.    All installation and testing of all Equipment for such Phase shall have
been completed satisfactorily, and all of such Equipment shall be subject to
the Lease.

3.    No Loss Event or Casualty Event shall have occurred with respect to such
Phase.

4.    No Default or Event of Default shall have occurred.

5.    The Acquisition Agent shall have furnished to the Lessor a Completion
Certificate with respect to such Phase.

                                      115

<PAGE>   122

                                                                      EXHIBIT A

                         Form of Completion Certificate

                             COMPLETION CERTIFICATE
                         [LOCATION OF APPLICABLE SITE]

         The undersigned, the ___________________ of FLOWERS INDUSTRIES, INC.,
a Georgia corporation, in its capacity as Acquisition Agent (the "Acquisition
Agent") for WACHOVIA LEASING CORPORATION, a North Carolina corporation
("Lessor") under that certain Acquisition, Agency, Indemnity and Support
Agreement dated as of October 20, 1995 (the "Agency Agreement"), hereby
certifies to Lessor as follows:

         1.    Reference is hereby made to the Master Lease Agreement, dated as
of October 20, 1995 (the "Lease") by and among Flowers Industries, Inc. in its
individual capacity (the "Company"), as Lessee, and Lessor. Unless otherwise
defined herein, capitalized terms used herein have the respective meanings set
forth in the Lease.

         2.    The Acquisition Agent has acted as agent and attorney-in-fact
for the Lessor with respect to the purchase, design, installation and assembly
of the Equipment more particularly described on Schedule I attached hereto (the
"Added Equipment") for and on the manufacturing facility located at
__________________________ (the "Applicable Site"), and with respect to certain
other powers, duties and obligations as are more particularly set forth in the
Agency Agreement.

         3.    An acceptance of the Added Equipment by the Lessee has occurred,
and Lessee has issued its Certificate of Acceptance with respect to the Added
Equipment.

         4.    Upon delivery of this Certificate to Lessor, all of the events
and conditions precedent for Completion listed in Schedule 1.3(b) to the Agency
Agreement will have been satisfied as to the Applicable Site and the Phase
relating thereto.

                                      116

<PAGE>   123

         IN WITNESS WHEREOF, the undersigned has executed and delivered this
certificate the _____ day of ________, 19___.

                                     -----------------------------------------
                                     Name:
                                     Title:

                                      117

<PAGE>   124

                                   SCHEDULE I

                           [LIST OF ADDED EQUIPMENT]

                                      118

<PAGE>   125

                                                                       EXHIBIT B

                           Certificate of Acceptance
                         [LOCATION OF APPLICABLE SITE]

         FLOWERS INDUSTRIES, INC., a Georgia corporation ("Lessee") hereby
represents, acknowledges, warrants and agrees as follows (all terms used herein
without definition have the meanings ascribed thereto in the Master Lease
Agreement between WACHOVIA LEASING CORPORATION, a North Carolina corporation
("Lessor") and Lessee, dated as of October 20, 1995 (the "Lease")):

1.       Lessee has received from Lessor as of the ____ day of__________, 199_,
at ________________ (the "Applicable Site") possession of that certain equipment
more particularly described on Schedule 1 hereto, together with all Vendor's
warranties and service contracts with respect thereto (the foregoing equipment
and other items being hereinafter collectively referred to as the "Equipment").

2.       The Equipment was delivered to, and fully examined and accepted by,
Lessee at the Applicable Site pursuant to the terms and provisions of the
Lease. The Equipment was received in a condition fully satisfactory to the
Lessee and in full conformity with the Lease in every respect [except as set
forth in Schedule 2 hereto, and was accepted by Lessee subject to such
non-conformity].

4.       The Lease is in full force and effect, Lessor has fully, duly and
timely performed all of its obligations of every kind or nature thereunder, and
Lessee has no claims, deductions, set-offs or defenses of any kind or nature in
connection with the Lease.

5.       Lessee has obtained all Permits that are or will become Applicable
Permits with respect to the Equipment and the Applicable Site, except for such
Applicable Permits customarily obtained or which are permitted by Governmental
Requirements to be obtained after the acquisition of the Equipment and which
Lessee, having completed all appropriate due diligence in connection therewith
pursuant to the Agency Agreement, has no reason to believe will not be granted
in the usual course of business prior to the date that such Permits are
required by Governmental Requirements. All Applicable Permits heretofore
obtained are in proper form, in full

                                      119

<PAGE>   126

force and effect and not subject to any appeal or other unsatisfied contest
that may allow modification or revocation thereof.

                        Dated as of the_____day of __________________, 199_.

                                    FLOWERS INDUSTRIES, INC. (Lessee)

                                    By:
                                       ------------------------------------
                                       Name:
                                       Title:

                                      120

<PAGE>   127

                    SCHEDULE 1 TO CERTIFICATE OF ACCEPTANCE

                           [DESCRIPTION OF EQUIPMENT]

                                      121

<PAGE>   128

                    SCHEDULE 2 TO CERTIFICATE OF ACCEPTANCE

                                [DISCREPANCIES]

                                      122

<PAGE>   129

                                                                      EXHIBIT C

                                Lease Supplement

                         [LOCATION OF APPLICABLE SITE]

         THIS SUPPLEMENT is hereby added, as of the ___ day of ________, 199_,
to that certain Master Lease Agreement (the "Lease") dated as of October 20,
1995 by and between WACHOVIA LEASING CORPORATION, a North Carolina corporation,
as lessor ("Lessor") and FLOWERS INDUSTRIES, INC., as lessee ("Lessee") with
respect to the manufacturing site or facility located at __________________
(the "Applicable Site"). Upon execution hereof by Lessor and Lessee, this
Supplement shall be included in and shall be a part of the Lease for all
purposes. Terms used but not otherwise defined herein shall have the meanings
given to such terms in the Lease.

         The parties hereto acknowledge and agree as follows:

         1.       The equipment (the "Added Equipment") more particularly
described on Schedule "A" attached hereto and located at the Applicable Site is
hereby added by this Supplement to the Lease and shall hereafter constitute a
part of the "Equipment" (as defined in the Lease) leased by Lessee pursuant to
the Lease.

         2.       The Equipment Cost for the Added Equipment is as reflected on
Schedule "B" attached hereto, and has been paid in full by Lessor. Lessor has
received bills of sale or other evidence of ownership of the Added Equipment,
free and clear of all liens and encumbrances of third parties. Such amounts
shall be used in the computation of Interim Rent, Basic Rent, the Final Rent
Payment or the Termination Value with respect to the Added Equipment.

         3.       By the addition of the Equipment Cost for the Added Equipment
hereby, the aggregate Equipment Cost for the Phase relating to the Applicable
Site under the Lease has been increased to $______ .

         4.       Lessee certifies that:

                                      123

<PAGE>   130

                  (a) copies of all Related Contracts, and all other contracts
                  entered into in connection with the acquisition, development
                  and installation of the Added Equipment pursuant to the
                  Agency Agreement have been delivered to Lessor;

                  (b) all Permits that are or will become Applicable Permits
                  with respect to the Added Equipment and the Applicable Site
                  have been obtained, except Applicable Permits customarily
                  obtained or which are permitted by Governmental Requirements
                  to be obtained after the acquisition of the Added Equipment
                  (and Lessee, having completed all appropriate due diligence
                  in connection therewith pursuant to the Agency Agreement, has
                  no reason to believe that such Permits will not be granted in
                  the usual course of business prior to the date that such
                  Permits are required by Governmental Requirements), and such
                  obtained Permits are in proper form, in full force and effect
                  and not subject to any appeal or other unsatisfied contest
                  that may allow modification or revocation thereof; and

                  (c) Lessor's ownership interest in the Added Equipment,
                  subject to a Lease intended as security, has been perfected
                  under local law, and protective financing statements
                  evidencing a first priority, perfected interest in the Added
                  Equipment in favor of the Lessor as security for payment by
                  Lessee of all amounts and the performance of all obligations
                  of Lessee under the Lease have been duly filed.

         4.       The parties hereto represent and warrant as to the facts
specified in subparagraphs (ii), (iii), (iv), (v), and (vi) of Section 28(b) of
the Lease.

         5.       The parties hereto confirm, as of the date hereof, that all
representations and warranties made in the Lease with respect to the Equipment
heretofore covered by the Lease remain true and correct in all material
respects; that all representations and warranties made in the Lease with
respect to the Equipment are, as of the date hereof, true and correct as to the
Added Equipment as if such Added Equipment originally had been included within
the term "Equipment"; and that no Event of Default or even which

                                      124

<PAGE>   131

with notice and/or the passage of time might ripen into an Event of Default
exists under the Lease.

         6.       Lessee acknowledges and confirms that as of the date hereof,
it has no defenses to the payment or performance of the parties' obligations
under the Lease and that no claims, counterclaims, affirmative defenses or
other such affirmation rights exist against Lessor with respect to the Lease
including, without limitation, any claims relating to the amounts charged as
Interim Rent, Basic Rent, the Final Rent Payment or Termination Value or
otherwise. Lessee has examined the Added Equipment and accepts and approves the
Added Equipment as suitable and satisfactory for inclusion in the Lease, and
has executed a Certificate of Acceptance dated as of even date herewith with
respect to the Added Equipment.

                                      125

<PAGE>   132

         EXECUTED as of the _____day of ____________, 199__.

                                    LESSOR:

                                    WACHOVIA LEASING CORPORATION

                                    By:
                                       -----------------------------------
                                       Name:
                                       Title:

                                    LESSEE:

      [CORPORATE SEAL]              FLOWERS INDUSTRIES, INC.

                                    By:
                                       -----------------------------------
                                       Name:
                                       Title:

                                      126

<PAGE>   133

                         SCHEDULE A TO LEASE SUPPLEMENT

                           [LIST OF ADDED EQUIPMENT]

                                      127

<PAGE>   134

                         SCHEDULE B TO LEASE SUPPLEMENT

                      [EQUIPMENT COST FOR ADDED EQUIPMENT]

                                      128

<PAGE>   135

                                                                       EXHIBIT D

                            FORM OF LEGAL OPINION OF

                      ASSISTANT GENERAL COUNSEL OF LESSEE

                              [LESSEE LETTERHEAD]

                                October 20, 1995

Wachovia Leasing Corporation
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757

Dear Sirs:

                  I am the Assistant General Counsel for Flowers Industries,
Inc., a Georgia corporation ("Lessee"). This opinion is being delivered
pursuant to Section 28(a)(ii) of that certain Master Lease Agreement (the
"Lease") dated as of even date herewith between Lessee and Wachovia Leasing
Corporation, a North Carolina corporation ("Lessor"), and in connection with
the execution and delivery of the other "Operative Documents," as defined in
the Lease. Terms defined in the Lease or in Schedule 1(b) to the Lease are used
herein as therein defined, unless otherwise indicated.

                  I have examined originals or copies, certified or otherwise
identified to our satisfaction, of such documents, corporate records,
certificates of public officials and other instruments and have conducted such
other investigations of fact and law as I have deemed necessary or advisable
for purposes of this opinion.

                                      129

<PAGE>   136

                  Upon the basis of the foregoing, I am of the opinion that:

         1.       Lessee is a corporation duly incorporated, and, based solely
on the Good Standing Certificate (as hereinafter defined), validly existing
under the laws of the State of Georgia and has all corporate powers required to
carry on its business as it is now conducted. The "Good Standing Certificate" is
the certificate of valid existence dated October 18, 1995 issued by the
Secretary of State of the State of Georgia with respect to Lessee.

         2.       The execution, delivery and performance by Lessee of the
Lease, the Agency Agreement, the Progress Payment Agreement and the other
Operative Documents to which Lessee is a party, (a) are within Lessee's
corporate powers, (b) have been duly authorized by all necessary corporate
action, (c) require no action by or in respect of, or filing with, any
governmental body, agency or official, except for filings as contemplated by
the Lease, (d) do not contravene, or constitute a default under, any provision
of applicable law or regulation or of the certificate of incorporation or
by-laws of Lessee or of any material agreement, judgment, injunction, order,
decree or other instrument relating to Debt which is binding upon Lessee, and
(e) do not result in the creation or imposition of any Lien on any asset of
Lessee (other than the security interest in the Equipment created by the Lease
in the event that the Lease is recharacterized as a financing transaction).

         3.       The Lease, the Agency Agreement, the Progress Payment
Agreement and the other Operative Documents to which Lessee is a party and the
obligations of Lessee with respect to the payment of Basic Rent, Interim Rent,
the Final Rent Payment and the Supplemental Rent and all other payment
obligations of Lessee under the Lease including without limitation the payment
of the Termination Value by Lessee or its designee pursuant to the exercise or
deemed exercise of Lessee's option under Section 15 of the Lease or pursuant to
any other provisions of the Lease, constitute the valid and binding obligations
of Lessee enforceable against Lessee in accordance with their respective terms,
except as such enforceability may be limited by (a) applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors'

                                      130

<PAGE>   137

rights generally and (b) general principles of equity (including, without
limitation, the availability or non-availability of equitable remedies),
whether considered in a proceeding at law or in equity; provided that the
foregoing shall not, in my opinion, substantially interfere with the practical
realization of the benefits expressed in the Lease and the other Operative
Documents, except for the economic consequences of any procedural delay which
may result therefrom.

         4.       There is no action, suit or proceeding pending for which
process has been served, or, to the best of my knowledge, threatened, against
or affecting Lessee or any of its Subsidiaries before any court or arbitrator
or any governmental body, agency or official in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of Lessee and its Consolidated Subsidiaries, considered as a whole, or which in
any manner questions the validity or enforceability of any of the Operative
Documents.

         5.       Neither Lessee nor any of its Subsidiaries is an "investment
company" within the meaning of the Investment Company Act of 1940, as amended.

         6.       Neither Lessee nor any of its respective Subsidiaries is a
"holding company," or a "subsidiary company" of a "holding company," or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company," as such terms are defined in the Public Utility Company Act of 1935,
as amended.

         7.       If a Georgia court held the Lease to be a financing
transaction instead of a true lease, (a) the Lease, and the obligations of
Lessee under the Lease with respect to the payment of Base Rent, Interim Rent,
the Final Rent Payment and Supplemental Rent and all other payment obligations
of Lessee under the Lease including without limitation the payment of the
Termination Value by Lessee or its designee pursuant to the exercise of
Lessee's option under Section 15 of the Lease or pursuant to any other
provision of the Lease, would constitute the valid and binding obligations of
Lessee and would be enforceable against Lessee in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency,

                                      131

<PAGE>   138

reorganization or other similar laws affecting creditors' rights and general
principles of equity, (b) the "loan" to Lessee evidenced by the Lease would not
be contractually usurious under the laws of the State of Georgia provided that
any effective rate of interest (including, without limitation, any charge, fee,
premium or minimum balance requirement) deemed earned by Lessor under the Lease
and the other Operative Documents does not exceed 5.0% per month at any time,
and (c) the Lease would be enforceable as a security agreement under the laws
of the State of Georgia and Lessor would be entitled to foreclose the Liens
granted under the Lease following an Event of Default in accordance with the
power of sale therein granted.

         8.       The execution, delivery and performance by Lessee of the
Operative Documents do not conflict with or result in a violation of any law,
statute, rule or regulation of the State of Georgia (or any subdivision
thereof), or, except for the filing of appropriate financing statements,
require any consent of or filing or registration with an Governmental Authority
of the State of Georgia (or any subdivision thereof) or pursuant to the UCC
which has not been obtained or completed and which is necessary for the
validity and enforceability thereof.

         I am qualified to practice in the State of Georgia and do not purport
to be expert on any laws other than the laws of the State of Georgia, the
federal laws of the United States, and the UCC, and this opinion is rendered
only with respect to such laws. I have made no independent investigation of the
laws of any other jurisdiction (except with respect to the UCC).

         In rendering the opinions above, I have assumed, with your permission,
that each of the Operative Documents has been duly authorized, executed and
delivered by Lessor and, to the extent provided therein, constitutes the legal,
valid and binding obligation of Lessor enforceable in accordance with its
terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and (ii) general
principles of equity (including, without limitation, the availability or
non-availability of equitable remedies), whether considered in a proceeding at
law or in equity.

                                      132

<PAGE>   139

         This opinion is delivered to you at the request of Lessee in
connection with the transaction referenced above and may not, without my prior
written consent, be communicated to or relied upon by anyone other than you,
your successors and assigns, except that it may be communicated to Jones, Day,
Reavis & Pogue, your special counsel.

         This opinion speaks only as of the date hereof, and I do not undertake
any duty to advise you of any change herein.

                              Very truly yours,

                              -----------------------------------
                              Stephen R. Avera, Esq.
                              Assistant General Counsel
                              Flowers Industries, Inc.

                                      133

<PAGE>   140

                                                                       EXHIBIT E

                           PROGRESS PAYMENT AGREEMENT

         This Progress Payment Agreement ("Agreement") is made this ____ day of
_______________, 1995 in conjunction with the Master Lease Agreement dated
October 20, 1995 (the "Lease"), between Wachovia Leasing Corporation (the
"Lessor") and Flowers Industries, Inc. (the "Lessee"). All capitalized terms
used in this Agreement and not otherwise defined herein shall have the meanings
assigned to them in Schedule 1(b) to the Lease.

         Pursuant to the Master Lease Agreement, the Lessee intends to request
from time to time that the Lessor acquire and lease to the Lessee items of
Equipment for a Phase to be located at the following Applicable Site:
_______________ (the "Proposed Equipment"), and that the Lessor purchase the
Proposed Equipment from Vendors designated by the Lessee. The Vendors may
require advance payments, progress payments, or full payment for the Proposed
Equipment prior to delivery and acceptance of the Proposed Equipment by the
Lessee. To induce the Lessor to make such payments for the Proposed Equipment,
the Lessee agrees as follows:

         1.       All Proposed Equipment purchased by Lessor pursuant to this
Agreement will be the Lessor's property and on the Lease Addition Date will be
Equipment leased under the Lease.

         2.       The term of the Lease with respect to the Proposed Equipment
will not commence until the Lease Addition Date with respect thereto. Until the
Lease Addition Date as to the Proposed Equipment, a charge shall accrue on all
such advances, progress or other payments made by the Lessor equal to an amount
per annum which is the product of (i) advances or payment outstanding from the
date any such advances are outstanding, (ii) 80% of the Base Rate and (iii) the
actual number days in the period/360 (such amount being so determined being
"Additional Rent"). Such Additional Rent shall accrue until the Lease Addition
Date, whereupon it shall be capitalized and added to Equipment Cost for such
Phase pursuant to Section 3(a) of the Lease.

         3.       Lessee shall obtain and maintain insurance in form and
substance satisfactory Lessor insuring Lessor's interest in the

                                      134

<PAGE>   141

Equipment to the extent of the advance or progress payments made by Lessor.

         4.       Upon delivery and acceptance of the Equipment by the Lessee,
the Lessee will execute and deliver to the Lessor the Lease Supplement, and
satisfy the other conditions set forth in Section 28(c), with respect to the
Proposed Equipment, commencing the Lease with respect thereto.

         5.       If for any reason whatsoever the Lessee fails to comply with
any of the terms hereof or of the Lease or if the Lease Addition Date has not
occurred as to any unit of Proposed Equipment by _________________, the Lessee
will reimburse the Lessor, on demand, and at the Lessor's option, for all
amounts advanced or paid by the Lessor with respect to such unit of Proposed
Equipment, plus the unpaid Additional Rent in accordance with Paragraph 2, and
the Lessor will assign to the Lessee all of the Lessor's right, title and
interest in and to the Proposed Equipment.

         6.       In the event a Vendor of Proposed Equipment covered hereunder
fails to perform all of the covenants, conditions, stipulations, and agreements
to manufacture, ship, or deliver (collectively referred to as the "Terms"), or
for any reason whatsoever does not perform the Terms, after advance payments,
progress payments, or full payments have been made by the Lessor with respect
to the Proposed Equipment, the Lessee will reimburse the Lessor on demand, for
all amounts advanced or paid by the Lessor with respect to the Proposed
Equipment, plus the unpaid Additional Rent in accordance with Paragraph 2, and
the Lessor will assign to the Lessee every right, title and interest the Lessor
may have in and to the Proposed Equipment.

         7.       A waiver of a specific default shall not be a waiver of
subsequent or any other default. No waiver of any provision of the Lease or
this Agreement shall be a waiver of any other provision or matter. No delay or
failure of the Lessor in exercising any right hereunder shall affect such
right, nor shall any single or partial exercise preclude any further exercise
thereof or the exercise of any other rights hereunder.

         8.       Except as herein and heretofore modified, the Lease shall
continue in full force and effect in accordance with its terms.

                                      135

<PAGE>   142

         9.       No modifications to this Agreement shall be binding upon the
parties unless agreed to by each and every party in writing.

         10.      This Agreement may be executed in any number of counterparts,
all of which taken together shall constitute one

                                      136

<PAGE>   143

and the same instrument and any of the parties hereto may execute this
Agreement by signing any such counterpart.

                                    LESSOR:

                                    WACHOVIA LEASING CORPORATION

                                    By:
                                       -----------------------------------
                                       Title:

                                    LESSEE:

      [CORPORATE SEAL]              FLOWERS INDUSTRIES, INC.

                                    By:
                                       -----------------------------------
                                       Title:

                                      137

<PAGE>   144

                                                                       EXHIBIT F

                           FORM OF APPROVED SUBLEASE

                                    SUBLEASE

                  THIS SUBLEASE AGREEMENT is made as of the_____, day of
______________________, ______, by and between FLOWERS INDUSTRIES,
INC. a Georgia corporation ("Sublessor"), and ______________________
("Sublessee").

                                 WITNESSETH:

                  WHEREAS, the Sublessor is a party to that certain Master
Lease Agreement, dated as October 20, 1995 (as from time to time amended,
modified or supplemented, the "Primary Lease") between Sublessor, as lessee,
and Wachovia Leasing Corporation ("Wachovia"), as lessor, pursuant to which
Sublessor leased from Wachovia certain equipment (the "Equipment"), including,
but not limited to, the Equipment described on Schedule 1 attached hereto and
incorporated herein by reference the "Subleased Equipment");

                  WHEREAS, the Sublessee wishes to lease the Subleased
Equipment from the Sublessor, subject to the terms and conditions of the Lease;

                  NOW THEREFORE, in consideration of the foregoing, and in
consideration of the mutual covenants and agreements set forth herein, the
parties hereto hereby agree as follows:

                  1.    Terms. The Sublessor hereby agrees to lease to the
Sublessee the Subleased Equipment for a lease term of this Sublease commencing
on ________________ and ending on the earlier to occur of (a) ________________
and (b) the Scheduled Lease Termination Date (as such term in defined in the
Primary Lease) application to the Subleased Equipment.

                  2.    Rent.  The Sublessee hereby agrees to pay rental for the
Equipment in the amounts and on the date set forth on Schedule 2 hereto.

                  3.    Compliance with the Primary Lease.  During the term of
this Sublease, the Sublessee shall comply with and perform all

                                      138

<PAGE>   145

requirements, duties and obligations of the lessee under the Primary Lease in
respect of the Subleased Equipment.

                  4.    Subordinate to the Primary Lease. This sublease subject
and subordinate to the terms of the Primary Lease and the liens created
thereby.

                  5.    Events of Default. Any "Event of Default," as such term
is defined int he Primary Lease, in respect of the Subleased Equipment shall be
an Event of Default hereunder. Upon the occurrence of any such Event of
Default, the Sublessor shall have, in respect of the Sublessee and the
Subleased Equipment, all the rights and remedies which would be available to
Wachovia int he event of the occurrence of an Designated Event of Default
under, and as such term is defined in, the Primary Lease, which rights and
remedies are hereby incorporated herein by reference.

                  6.    Governing Law.  This Sublease shall be governed by the
laws of the State of Georgia, without regard to conflicts of law principles.

                  IN WITNESS THEREOF, the parties hereto have executed this
Sublease as of the date and year first above written.

                              "Sublessor"

                              FLOWERS INDUSTRIES

                              By:
                                 --------------------------------------
                                 Name:
                                 Title:

                              "Sublessee"

                              [NAME OF SUBLESSEE]

                              By:
                                 --------------------------------------
                                 Name:
                                 Title:

                                      139

<PAGE>   146

                   FIRST AMENDMENT TO MASTER LEASE AGREEMENT

         THIS FIRST AMENDMENT TO MASTER LEASE AGREEMENT (this "First
Amendment") is dated as of the 20th day of October, 1996 between FLOWERS
INDUSTRIES, INC. (the "Lessee"), and WACHOVIA LEASING CORPORATION (the
"Lessor").

                                  WITNESSETH:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995 (the
"Lease");

         WHEREAS, contemporaneously herewith, the Lessee has furnished the
Lessor a Completion Certificate with respect to the Phase for the Applicable
Site located in Jamestown, North Carolina, but has acknowledged that it was
unable to achieve Completion with respect to the Phases for the Applicable
Sites located in Miami, Florida (the "Miami Phase") and in San Antonio, Texas
(the "San Antonio Phase") by the date which is six months from the respective
Phase Commencement Dates for such Phases, and has requested that the Lessor
grant an appropriate extension of time and other amendments to the Lease and
the Lessor has agreed to such amendments to the Lease, subject to the terms and
conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

         1.       Definitions.  Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall have the meaning
assigned to such term in the Lease. Each

<PAGE>   147

reference to "hereof", "hereunder", "herein" and "hereby" and each other
similar reference and each reference to "this Agreement" and each other similar
reference contained in the Lease shall from and after the date hereof refer to
the Lease as amended hereby.

         2.       Amendments to the Lease. The Lease hereby is amended by (A)
deleting the words "Scheduled Amount" in the second line of of Section
3(b)(i)(B) of the Lease and in the second line of Section 3(b)(ii)(B) of the
Lease, and substituting therefor the words "Unrecovered Equipment Cost"), and
(B) amending certain defined terms contained in Schedule 1(b) thereto:

                  (i)   the term "Acquisition Period" hereby is amended by
         deleting it in its entirety and substituting therefor the following:

                              "Acquisition Period": a period commencing on the
                        Closing Date and ending (x) as to the Phases for the
                        Applicable Sites located in Miami, Florida and San
                        Antonio, Texas, April 21, 1997, and (y) as to all
                        other Phases, 12 months after the Closing Date.

                  (ii)  the term "Non-Completion Event" hereby is amended by
         deleting clause (i) thereof and substituting therefor the following:

                        (i) (x) as to the Phases for the Applicable Sites
                        located in Miami, Florida and San Antonio, Texas, April
                        21, 1997, and (y) as to all other Phases, the date
                        which is six months after the Phase Commencement Date
                        for such Phase, and

                  (iii) the term "Phase Completion Date" hereby is amended by
         deleting clause (ii) thereof and substituting therefor the following:

                        (ii) (x) as to the Phases for the Applicable Sites
                        located in Miami, Florida and San Antonio, Texas, April
                        21, 1997, and (y) as to all other Phases,

<PAGE>   148

                        the date which is six months after the Phase
                        Commencement Date for such Phase, and

         3.       Waiver by the Lessor. The Lessor hereby waives the right to
terminate the Lease as to the Miami Phase and the San Antonio Phase as a result
of the failure to achieve Completion by the date which is six months after the
respective Phase Commencement Date for such Phases (but does not waive such
right if Completion has not occurred by April 21, 1997).

         4.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents as fully
as if made on the date hereof (except for any representations which were
correct on the date of the Lease but are not correct on the date hereof because
of a change permitted by the Lease or the Operative Documents) and with
specific reference to this First Amendment and all other documents executed
and/or delivered in connection herewith.

         5.       Effect of Amendment. Except as set forth expressly
hereinabove, all terms of the Lease and the other Operative Documents shall be
and remain in full force and effect, and shall constitute the legal, valid,
binding and enforceable obligations of the Lessee.

         6,       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth in the Lease
and the other Operative Documents effective as of the date hereof.

         7.       Counterparts. This First Amendment may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same instrument.

         8.       Section References. Section titles and references used in
this First Amendment shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

                                       3

<PAGE>   149

         9.       No Default. To induce the Lessor to enter into this First
Amendment and to continue to make advances of Facility Cost for the Miami Phase
and the San Antonio Phase pursuant to the Lease, the Lessee hereby acknowledges
and agrees that, as of the date hereof, and after giving effect to the terms
hereof, there exists (i) no Default or Event of Default and (ii) no right of
offset, defense, counterclaim, claim or objection in favor of the Lessee
arising out of or with respect to the Lease or other Operative Documents.

         10.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         11.      Governing Law.  This First Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the State of Georgia.

                                       4

<PAGE>   150

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this First
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                  -------------------------------------
                                  Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION               (SEAL)

                              By:
                                  -------------------------------------
                                  Title:

                                       5

<PAGE>   151

                   SECOND AMENDMENT TO MASTER LEASE AGREEMENT

         THIS SECOND AMENDMENT TO MASTER LEASE AGREEMENT (this "Second
Amendment") is dated as of the 20th day of April, 1997 between FLOWERS
INDUSTRIES, INC. (the "Lessee"), and WACHOVIA LEASING CORPORATION (the
"Lessor").

                                  WITNESSETH:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995, as amended
by First Amendment to Master Lease Agreement dated as of October 20, 1996 (as
so amended, the "Lease");

         WHEREAS, the Lessee has furnished the Lessor a Completion Certificate
with respect to the Phase for the Applicable Site located in Jamestown, North
Carolina, but has acknowledged that it was unable to achieve Completion with
respect to the Phases for the Applicable Sites located in Miami, Florida (the
"Miami Phase") and in San Antonio, Texas (the "San Antonio Phase") by the date
required for such Phases, and has requested that the Lessor grant an
appropriate extension of time and other amendments to the Lease and the Lessor
has agreed to such amendments to the Lease, subject to the terms and conditions
hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

         1.       Definitions.  Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall

<PAGE>   152

have the meaning assigned to such term in the Lease. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Lease shall from and after the date hereof refer to the Lease
as amended hereby.

         2.       Amendments to the Lease. The Lease hereby is amended by
amending certain defined terms contained in Schedule 1(b) thereto:

                  (i)   the term "Acquisition Period" hereby is amended by
         deleting it in its entirety and substituting therefor the following:

                                    "Acquisition Period": a period commencing on
                        the Closing Date and ending (x) as to the Phases for the
                        Applicable Sites located in Miami, Florida and San
                        Antonio, Texas, October 21, 1997, and (y) as to all
                        other Phases, 12 months after the Closing Date.

                  (ii)  the term "Non-Completion Event" hereby is amended by
         deleting clause (i) thereof and substituting therefor the following:

                        (i) (x) as to the Phases for the Applicable Sites
                        located in Miami, Florida and San Antonio, Texas,
                        October 21, 1997, and (y) as to all other Phases, the
                        date which is six months after the Phase Commencement
                        Date for such Phase, and

                  (iii) the term "Phase Completion Date" hereby is amended by
         deleting clause (ii) thereof and substituting therefor the following:

                        (ii) (x) as to the Phases for the Applicable Sites
                        located in Miami, Florida and San Antonio, Texas,
                        October 21, 1997, and (y) as to all other Phases, the
                        date which is six months after the Phase Commencement
                        Date for such Phase, and

<PAGE>   153

         3.       Waiver by the Lessor. The Lessor hereby waives the right to
terminate the Lease as to the Miami Phase and the San Antonio Phase as a result
of the failure to achieve Completion by the date originally required by the
Lease (but does not waive such right if Completion has not occurred by October
21, 1997).

         4.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents as fully
as if made on the date hereof (except for any representations which were
correct on the date of the Lease but are not correct on the date hereof because
of a change permitted by the Lease or the Operative Documents) and with
specific reference to this Second Amendment and all other documents executed
and/or delivered in connection herewith.

         5.       Effect of Amendment. Except as set forth expressly
hereinabove, all terms of the Lease and the other Operative Documents shall be
and remain in full force and effect, and shall constitute the legal, valid,
binding and enforceable obligations of the Lessee.

         6,       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth in the Lease
and the other Operative Documents effective as of the date hereof.

         7.       Counterparts. This Second Amendment may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same instrument.

         8.       Section References. Section titles and references used in
this Second Amendment shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

         9.       No Default. To induce the Lessor to enter into this Second
Amendment and to continue to make advances of Facility Cost for the Miami Phase
and the San Antonio Phase pursuant to

                                       3

<PAGE>   154

the Lease, the Lessee hereby acknowledges and agrees that, as of the date
hereof, and after giving effect to the terms hereof, there exists (i) no
Default or Event of Default and (ii) no right of offset, defense, counterclaim,
claim or objection in favor of the Lessee arising out of or with respect to the
Lease or other Operative Documents.

         10.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         11.      Governing Law.  This Second Amendment shall be governed by
and construed and interpreted in accordance with, the laws of the State of
Georgia.

                                       4

<PAGE>   155

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this Second
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                 -------------------------------------
                                 Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION               (SEAL)

                              By:
                                 -------------------------------------
                                 Title:

                                       5
<PAGE>   156
           THIRD AMENDMENT TO MASTER LEASE AGREEMENT AND AMENDMENT TO
              ACQUISITION, AGENCY, INDEMNITY AND SUPPORT AGREEMENT

         THIS THIRD AMENDMENT TO MASTER LEASE AGREEMENT AND AMENDMENT TO
ACQUISITION, AGENCY, INDEMNITY AND SUPPORT AGREEMENT(this "Amendment") is dated
as of June 10, 1998 between FLOWERS INDUSTRIES, INC. (the "Lessee"), and
WACHOVIA LEASING CORPORATION (the "Lessor").

                                  WITNESSETH:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995, as amended
by First Amendment to Master Lease Agreement dated as of October 20, 1996 and
by Second Amendment to Master Lease Agreement dated as of April 20, 1997 (as so
amended, the "Lease");

         WHEREAS, Completion has been achieved, and the Phase Commencement Date
has occurred, with respect to the Applicable Sites located in Miami, Florida,
Jamestown, North Carolina and San Antonio, Texas, and the Lease provides for up
to 5 additional Phases, but the Acquisition Period has terminated under the
Lease; and

         WHEREAS, The Lessee has requested that the Lease be amended to (i)
provide for a new Acquisition Period for 5 additional Phases (the "Subsequent
Phases"), including Phases in Spartanburg, South Carolina, Stilwell, Oklahoma
and Suwanee, Georgia, and 2 other Phases not yet identified, and (ii) increase
the maximum aggregate Equipment Cost from $50,000,000 to $80,000,000, and the
Lessor has agreed to such amendments to the Lease, as well as an amendment to
the Agency Agreement to reflect the increase described in clause (ii), subject
to the terms and conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

<PAGE>   157

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall have the meaning
assigned to such term in the Lease. Each reference to "hereof", "hereunder",
"herein" and "hereby" and each other similar reference and each reference to
"this Agreement" and each other similar reference contained in the Lease shall
from and after the date hereof refer to the Lease as amended hereby.

         2.       Amendments to Section 3(a) of the Lease. Section 3(a) of the
Lease hereby is amended by deleting the figure "$50,000,000" in the 23rd and
25th lines thereof, and substituting therefor the figure "$80,000,000".

         3.       Amendment to Section 29 of the Lease. Section 29 of the Lease
hereby is amended by adding a new paragraph (l) thereto, as follows:

                        (l)   Year 2000 Compliance. All computer systems used
         by the Lessee and the Lessee's Subsidiaries will be, on or prior to
         December 31, 1999, capable of the following:

                              (i)   handling date information involving all
                  and any dates before, during and/or after January 1, 2000,
                  including accepting input, providing output and performing
                  date calculations in whole or in part;

                              (ii)  operating, accurately without
                  interruption on and in respect of any and all dates before,
                  during and/or after January 1, 2000 and without any change in
                  performance;

                              (iii) responding to and processing two
                  digit year input without creating any ambiguity as to the
                  century; and

                              (iv)  storing and providing date input information
                  without creating any ambiguity as to the century;

         except where the failure to be so capable would not reasonably be
         expected to have a Material Adverse Effect.

         4.       Amendments to Schedule 1(b) to the Lease. The Schedule 1(b)
of the Lease hereby is amended as follows:

                  (i)   the term "Acquisition Period" hereby is amended by
         deleting it in its entirety and substituting therefor the following:

                                    "Acquisition Period": (i) as to the Initial
                        Phases, a period commencing on the Closing Date

                                       2

<PAGE>   158

                        and ending (x) as to the Phases for the Applicable Sites
                        located in Miami, Florida and San Antonio, Texas,
                        October 21, 1997, and (y) as to the Phase for the
                        Applicable Site located in Jamestown, North Carolina,
                        12 months after the Closing Date; and (ii) as to each
                        of the Subsequent Phases, 15 months after the Third
                        Amendment Date.

                  (ii)  the following new definitions hereby are added in
         appropriate alphabetical sequence:

                                    "Initial Phases" means the Phases for the
                        Applicable Sites located in Miami, Florida, Jamestown,
                        North Carolina and San Antonio, Texas, as to which
                        Completion and the Phase Commencement Date occurred
                        prior to the Third Amendment Date.

                                    "Subsequent Phases" means the following
                        Phases, as to which Completion and the Phase
                        Commencement Date has not occurred prior to the Third
                        Amendment Date: (i) Phases for Applicable Sites to be
                        located in Spartanburg, South Carolina, Stilwell,
                        Oklahoma and Suwanee, Georgia; and (ii) 2 other Phases
                        for Applicable Sites not identified at the time of the
                        Third Amendment.

                                    "Third Amendment Date" means June 10, 1998.

         5.       Amendment to Agency Agreement. Section C.1.(b)(v) of Article 1
of the Agency Agreement hereby is amended by deleting the figure "$50,000,000"
in the 2nd line thereof, and substituting therefor the figure "$80,000,000".

         6.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents as fully
as if made on the date hereof (except for any representations which were
correct on the date of the Lease but are not correct on the date hereof because
of a change permitted by the Lease or the Operative Documents) and with
specific reference to this Amendment and all other documents executed and/or
delivered in connection herewith.

         7.       Effect of Amendments. Except as set forth expressly
hereinabove, all terms of the Lease, the Agency Agreement and the other
Operative Documents shall be and remain in full force and effect, and shall
constitute the legal, valid, binding and enforceable obligations of the Lessee.

         8.       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth

                                       3
<PAGE>   159

in the Lease, the Agency Agreement and the other Operative Documents effective
as of the date hereof.

         9.       Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.

         10.      Section References. Section titles and references used in this
Amendment shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

         11.      No Default. To induce the Lessor to enter into this Amendment
and to continue to make advances of Facility Cost for the Subsequent Phases
pursuant to the Lease, the Lessee hereby acknowledges and agrees that, as of
the date hereof, and after giving effect to the terms hereof, there exists (i)
no Default or Event of Default and (ii) no right of offset, defense,
counterclaim, claim or objection in favor of the Lessee arising out of or with
respect to the Lease or other Operative Documents.

         12.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         13.      Governing Law.  This Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the State of Georgia.

         14.      Conditions Precedent. This Amendment shall become effective
only upon:

         (i)   execution and delivery of this Amendment by each of the
parties hereto;

         (ii)  receipt by the Lessor of a favorable opinion or opinions of
Assistant General Counsel to the Lessee, dated as of the date hereof,
substantially in the form of Exhibit A hereto;

         (iii) receipt by the Lessor of a certificate substantially in the form
of Exhibit B hereto, dated as of the date hereof, signed by an authorized
officer of the Lessee to the effect that (i) no Default has occurred and is
continuing on the date hereof and (ii) the representations and warranties of
Lessee contained in the Lease and the other Operative Documents are true and
correct on the date hereof (except for any representations which were correct on
the date of the Lease but are not correct on the

                                       4
<PAGE>   160
date hereof because of a change permitted by the Lease or the Operative
Documents);

         (iv)  receipt by the Lessor of a certificate of the Secretary or
Assistant Secretary of the Lessee substantially in the form of Exhibit C
hereto, dated as of the date hereof, setting forth (i) resolutions of its board
of directors authorizing the execution,delivery and performance of the
obligations contained in this Amendment, (ii) the officers of the Lessee
specified in such Secretary's Certificates that are authorized to sign this
Amendment and (iii) a statement that there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee since the
Closing Date or, if there have been any such amendments attaching such
amendments; and

         (v)   receipt by the Lessor of a structuring fee in the amount of
$40,000.

                                       5
<PAGE>   161

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                 --------------------------------------
                                 Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION               (SEAL)

                              By:
                                 --------------------------------------
                                 Title:

                                       6

<PAGE>   162

                                   EXHIBIT A

[NOTE: THE ENFORCEABILITY PORTION OF THIS OPINION MAY BE GIVEN BY
TROUTMAN SANDERS LLP]

                            FORM OF LEGAL OPINION OF

                           GENERAL COUNSEL OF LESSEE

                              [LESSEE LETTERHEAD]

                                 June 10, 1998

Wachovia Leasing Corporation
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757

Dear Sirs:

                  I am the Assistant General Counsel for Flowers Industries,
Inc., a Georgia corporation ("Lessee"). This opinion is being delivered
pursuant to Section 12(ii) of that certain Third Amendment to Master Lease
Agreement and Amendment to Acquisition, Agency, Indemnity and Support Agreement
dated as of even date herewith between Lessee and Wachovia Leasing Corporation
(the "Amendment"). Capitalized terms used but not defined herein have the
meanings set forth in the Amendment or in the Lease referred to therein or in
Schedule 1(b) to the Lease.

                  I have examined originals or copies, certified or otherwise
identified to our satisfaction, of such documents, corporate records,
certificates of public officials and other instruments and have conducted such
other investigations of fact and law as I have deemed necessary or advisable
for purposes of this opinion.

                  Upon the basis of the foregoing, I am of the opinion that:

         1.       The execution, delivery and performance by Lessee of the
Amendment is within the Lessee's corporate powers, has been duly authorized by
all necessary corporate action, requires no action by or in respect of, or
filing with, any governmental body, agency or official, does not contravene, or
constitute a default under, any provision of applicable law or regulation or of
the certificate of incorporation or by-laws of Lessee or of any material
agreement, judgment, injunction, order, decree or other instrument relating to
Debt which is binding upon Lessee, and does not result in the creation or
imposition of any Lien on any asset of Lessee (other than the

                                       7
<PAGE>   163

security interest in the Equipment created by the Lease in the event that the
Lease is recharacterized as a financing transaction).

         2.       The Amendment constitutes the valid and binding obligations of
Lessee enforceable against Lessee in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and general principles of equity (including,
without limitation, the availability or non-availability of equitable
remedies), whether considered in a proceeding at law or in equity; provided
that the foregoing shall not, in my opinion, substantially interfere with the
practical realization of the benefits expressed in the Amendment, except for
the economic consequences of any procedural delay which may result therefrom.

         3.       There is no action, suit or proceeding pending for which
process has been served, or, to the best of my knowledge, threatened, against
or affecting Lessee or any of its Subsidiaries before any court or arbitrator
or any governmental body, agency or official in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of Lessee and its Consolidated Subsidiaries, considered as a whole, or which in
any manner questions the validity or enforceability of the Amendment.

         4.       The execution, delivery and performance by Lessee of the
Amendment does not conflict with or result in a violation of any law, statute,
rule or regulation of the State of Georgia (or any subdivision thereof), or
require any consent of or filing or registration with an Governmental Authority
of the State of Georgia (or any subdivision thereof) or pursuant to the UCC
which has not been obtained or completed and which is necessary for the
validity and enforceability thereof.

                  I am qualified to practice in the State of Georgia and do not
purport to be expert on any laws other than the laws of the State of Georgia,
the federal laws of the United States, and the UCC, and this opinion is
rendered only with respect to such laws. I have made no independent
investigation of the laws of any other jurisdiction (except with respect to the
UCC).

                  In rendering the opinions above, I have assumed, with your
permission, that Amendment has been duly authorized, executed and delivered by
Lessor and, to the extent provided therein, constitutes the legal, valid and
binding obligation of Lessor enforceable in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and general principles of equity (including,
without limitation, the availability or non-availability of equitable
remedies), whether considered in a proceeding at law or in equity.

                                       8
<PAGE>   164

                  This opinion is delivered to you at the request of Lessee in
connection with the transaction referenced above and may not, without my prior
written consent, be communicated to or relied upon by anyone other than you,
your successors and assigns, except that it may be communicated to Jones, Day,
Reavis & Pogue, your special counsel.

                  This opinion speaks only as of the date hereof, and I do not
undertake any duty to advise you of any change herein.

                              Very truly yours,

                              ------------------------------------
                              Stephen R. Avera, Esq.
                              Assistant General Counsel
                              Flowers Industries, Inc.

                                       9

<PAGE>   165

                                   EXHIBIT B

                              CLOSING CERTIFICATE

         Reference is made to the Third Amendment to Master Lease Agreement and
Amendment to Acquisition, Agency, Indemnity and Support Agreement as of even
date herewith between Lessee and Wachovia Leasing Corporation (the
"Amendment"). Capitalized terms used but not defined herein have the meanings
set forth in the Amendment or in the Lease referred to therein or in Schedule
1(b) to the Lease.

         Pursuant to Section 12(iii) of the Amendment, ____________________,
the duly authorized ____________________ of the Lessee, hereby certifies to the
Lessor that (i) no Default has occurred and is continuing as of the date
hereof, and (ii) the representations and warranties of Lessee contained in the
Lease and the other Operative Documents are true and correct on the date hereof
(except for any representations which were correct on the date of the Lease but
are not correct on the date hereof because of a change permitted by the Lease
or the Operative Documents).

         Certified as of June 10, 1998.

                              FLOWERS INDUSTRIES, INC.                    (SEAL)

                              By:
                                 ------------------------------------
                                 Title:

                                       10

<PAGE>   166

                                   EXHIBIT C

                            SECRETARY'S CERTIFICATE

The undersigned, ______________________, [Secretary/Assistant Secretary] of
Flowers Industries, Inc. (the "Lessee"), hereby certifies that he has been duly
elected, qualified and is acting in such capacity and that, as such, he is
familiar with the facts herein certified and is duly authorized to certify the
same, and hereby further certifies, in connection with the Third Amendment to
Master Lease Agreement and Amendment to Acquisition, Agency, Indemnity and
Support Agreement dated as of even date herewith between Lessee and Wachovia
Leasing Corporation (the "Amendment") that:

         1.       Attached hereto as Annex 1 is a complete and correct copy of
the resolutions duly adopted by the Board of Directors of the Lessee on
_________________, 1998 approving, and authorizing the execution and delivery
of, the Amendment. Such resolutions have not been repealed or amended and are
in full force and effect, and no other resolutions or consents have been
adopted by the Board of Directors of the Lessee in connection therewith.

         2.       _____________________, who is _________________ of the Lessee,
signed the Amendment, was duly elected, qualified and acting as such at the
time he signed the Amendment, and his signature appearing on the Amendment is
his genuine signature.

         3.       Since October 20, 1995, there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee [EXCEPT ,
COPIES OF WHICH ARE ATTACHED HERETO AS ANNEX[ES] ].

IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of the day of
June, 1998.

                              --------------------------------------
                              Name:
                              Title: [Secretary/Assistant Secretary]

                                       11

<PAGE>   167

                   FOURTH AMENDMENT TO MASTER LEASE AGREEMENT

         THIS FOURTH AMENDMENT TO MASTER LEASE AGREEMENT(this "Amendment") is
dated as of January 15, 1999 between FLOWERS INDUSTRIES, INC. (the "Lessee"),
and WACHOVIA LEASING CORPORATION (the "Lessor").

                              W I T N E S S E T H:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995, as amended
by that certain First Amendment to Master Lease Agreement dated as of October
20, 1996, by that certain Second Amendment to Master Lease Agreement dated as
of April 20, 1997, and by that certain Third Amendment to Master Lease
Agreement dated as of June 10, 1998 (as so amended, the "Lease"); and

         WHEREAS, the Lessee and the Lessor have agreed to amend certain
provisions of the Lease as set forth below;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall have the meaning
assigned to such term in the Lease. Each reference to "hereof", "hereunder",
"herein" and "hereby" and each other similar reference and each reference to
"this Agreement" and each other similar reference contained in the Lease shall
from and after the date hereof refer to the Lease as amended hereby.

<PAGE>   168

         2.       Amendments to Lease.  (a) A new definition, "Designated
Sites," is hereby added to Schedule 1(b) of the Lease in proper alphabetical
order as follows:

                  "Designated Sites": Jamestown, North Carolina; Miami,
         Florida; and San Antonio, Texas.

         (b)      The definition of "Basic Rent" set forth in Schedule 1(b) to
the Lease is amended and restated in its entirety as set forth below:

                  "Basic Rent": (a) after January 15, 1999, for each Phase at
         the Designated Sites, with respect to any Rental Period, the amounts
         payable for such Phase as Basic Rent for such Rental Period pursuant
         to Section 3(b) of the Lease, consisting of the sum of the Scheduled
         Payment therefor and 5.77% per annum.

                  (b)   for each Phase at all Applicable Sites other than the
         Designated Sites, with respect to any Rental Period, the amounts
         payable for such Phase as Basic Rent for such Rental Period pursuant
         to Section 3(b) of the Lease, consisting of the sum of the Scheduled
         Payment therefor and either the Floating Rate Payment or, if the
         Election has been made, the Fixed Rate Payment.

         (c)      Section 3(b) of the Lease is amended and restated in its
entirety as follows:

         (b)      Basic Rent

                  (i)   Floating Rate Payment Without Election; Election
                        and Election Period.

                        Subject to clause (iii) below), for each Phase, if
                  the Lessee has not made an Election within the Election
                  Period pursuant to the provisions and requirements of this
                  Section 3(b)(i), after the Phase Completion Date for each
                  Phase, the Lessee's Basic Rent during the Lease Term for such
                  Phase shall be payable for each Rental Period in arrears on
                  the Rent Payment Date for such Rental Period in an amount
                  equal to the sum of (A) the amount equal to the percentage
                  set forth in

                                       2

<PAGE>   169

                  Schedule 3(b) for such Rental Period (as it may be modified
                  pursuant hereto as a result of an Approval Appraisal), times
                  the Equipment Cost (the "Scheduled Amount") as to such Phase
                  (the "Scheduled Payment") plus (B) an amount accruing on the
                  Scheduled Amount as to such Phase at the Floating Rate for
                  such Rental Period (the "Floating Rate Payment"). In the
                  event any Scheduled Amount or other amount of Equipment Cost
                  based on the LIBO Rate is prepaid other than on the last day
                  of the Rental Period with respect thereto (including by
                  reason of the occurrence of a Lease Termination Date for any
                  reason) the Lessee shall compensate the Lessor for any
                  funding losses incurred by it as a result of such prepayment.
                  Schedule 3(b) also sets forth the Estimated Residual as to
                  each Phase as of the end of each Rental Period. The Lessee
                  agrees that the Lessor reserves the right to modify the
                  Estimated Residual or the percentage of Equipment Cost for
                  determining the Scheduled Amount, or both, as to any Rental
                  Period for the Equipment for any Phase as a result of the
                  receipt of an Approval Appraisal pursuant to the Agency
                  Agreement. With respect to any Phase, the Lessee shall have
                  the option to convert the Basic Rent for such Phase within
                  the Election Period from a Floating Rate Payment basis to a
                  Fixed Rate Payment basis (any exercise of such option
                  pursuant to the provisions and requirements of this Section
                  3(b)(i) for any Phase being an "Election" for such Phase).
                  The "Election Period" with respect to each Phase shall
                  commence on the Phase Completion Date for such Phase and
                  terminate on the last day of the Acquisition Period. Each
                  Election shall be made by written notice received not less
                  than 7 days prior to the effective date of such Election (and
                  not less than 7 days prior to the end of the relevant
                  Election Period).

                  (ii)  Fixed Rate Payment With Election.

                        Subject to clause (iii) below, for each Phase, if the
                  Lessee has made an Election within the Election Period
                  pursuant to the provision and requirements of Section 3(b)(i),
                  after the Phase Completion Date for each Phase, the Lessee's
                  Basic Rent during the Lease

                                       3

<PAGE>   170

                  Term for such Phase shall be payable for each Rental Period
                  in arrears on the Rent Payment Date for such Rental Period in
                  an amount equal to the sum of (A) the Scheduled Payment as to
                  such Phase for such Rental Period plus (B) an amount accruing
                  on the Scheduled Amount as to such Phase at the Fixed Rate
                  for such Rental Period (the "Fixed Rate Payment"). On the
                  first Rent Payment Date after the Lessee makes an Election
                  for a qualifying Phase, the Lessee shall make, if applicable,
                  a Basic Rent payment consisting of the Schedule Payment for
                  such Phase plus a proportionate Floating Rate Payment and
                  Fixed Rate Payment for such Phase, and the Lessee shall
                  compensate the Lessor for any funding losses incurred by it
                  as a result of such change from a Floating Rate Payment to a
                  Fixed Rate Payment prior to the end of the Rental Period.

                  (iii) Designated Sites.

                        For each Phase at a Designated Site, after January 15,
                  1999, for each Phase, the Lessee's Basic Rent during the
                  Lease Term for such Phase shall be payable for each Rental
                  Period in arrears on the Rent Payment Date for such Rental
                  Period in an amount equal to the sum of (A) the Scheduled
                  Payment as to such Phase for such Rental Period plus (B) an
                  amount accruing on the Scheduled Amount as to such Phase at
                  the rate of 5.77% per annum for such Rental Period. No
                  Election may be made with respect to a Designated Phase.

         (d)      Section 3(d) of the Lease is amended and restated in its
entirety as follows:

                  (d)   Supplemental Rent. In addition to Interim Rent, Basic
         Rent and the Final Rent Payment, the Lessee will also pay to the
         Lessor, from time to time, upon demand by the Lessor, as additional
         rent ("Supplemental Rent"), the following (but without duplication of
         any amounts included in the calculation of Rent):

                        (i)   all out-of-pocket costs and expenses reasonably
                  incurred by the Lessor in connection with the preparation,
                  negotiation, execution, delivery,

                                       4

<PAGE>   171

                  performance and administration of this Lease and the other
                  Operative Documents, including, but not limited to, the
                  following: (A) fees and expenses of the Lessor, including,
                  without limitation, reasonable attorneys' fees and expenses
                  and the fees and expenses for the Approved Appraisal and the
                  Related Contracts for each Phase; (B) all other amounts,
                  including, without limitation, fees, indemnities, expenses,
                  compensation in respect of increased costs of any kind or
                  description payable under this Lease or any other Operative
                  Document; (C) all yield maintenance, capital adequacy and
                  other costs contemplated under Section 27 of this Lease and
                  (D) all out-of-pocket costs and expenses incurred by the
                  Lessor after the date of this Lease (including, without
                  limitation, reasonable attorneys' fees and expenses and other
                  expenses and disbursements reasonably incurred) associated
                  with (1) negotiating and entering into, or the giving or
                  withholding of, any future amendments, supplements, waivers
                  or consents with respect to this Lease; (2) any Loss Event,
                  Casualty Occurrence or termination of this Lease; and (3) any
                  Default or Event of Default and the enforcement and
                  preservation of the rights or remedies of the Lessor under
                  this Lease and the other Operative Documents and (4) all
                  reasonable costs and expenses incurred by the Lessor or any
                  of its Affiliates in initially selling participations in this
                  Lease, including, without limitation, the related reasonable
                  fees and out-of-pocket expenses of counsel for the Lessor or
                  its Affiliates, travel expenses, duplication and printing
                  costs and courier and postage fees, and excluding any fees
                  paid to Participants purchasing such a participation;

                        (ii)  the amount that the Lessor determines, in the
                  exercise of its sole good faith discretion, to be its total
                  losses and costs incurred in connection with Basic Rent under
                  clause (a) of the definition of "Basic Rent" as a result of
                  the termination of this Lease prior to the end of the Basic
                  Term, such losses and costs to include, without limitation,
                  cost of funding, or, at the election of the Lessor (but
                  without duplication), losses or costs incurred as a result of

                                       5

<PAGE>   172

                  the Lessor's terminating, liquidating, obtaining or
                  re-establishing any hedge, interest rate swap, or similar or
                  related trade position obtained by the Lessor with respect to
                  its costs to fund and refund Equipment Costs with respect to
                  the Designated Sites but excluding any loss of margin or
                  profit; and

                        (iii) all other amounts that the Lessee agrees
                  herein to pay other than Interim Rent, Basic Rent, the Final
                  Rent Payment and amounts described in clause (i) above.

         6.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents as fully
as if made on the date hereof (except for any representations which were
correct on the date of the Lease but are not correct on the date hereof because
of a change permitted by the Lease or the Operative Documents) and with
specific reference to this Amendment and all other documents executed and/or
delivered in connection herewith.

         7.       Effect of Amendments. Except as set forth expressly
hereinabove, all terms of the Lease and the other Operative Documents shall be
and remain in full force and effect, and shall constitute the legal, valid,
binding and enforceable obligations of the Lessee.

         8.       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth in the Lease,
the Agency Agreement and the other Operative Documents effective as of the date
hereof.

         9.       Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.

         10.      Section References. Section titles and references used in this
Amendment shall be without substantive meaning or content

                                       6

<PAGE>   173

of any kind whatsoever and are not a part of the agreements among the parties
hereto evidenced hereby.

         11.      No Default. To induce the Lessor to enter into this Amendment
and to continue to make advances of Facility Cost for the Subsequent Phases
pursuant to the Lease, the Lessee hereby acknowledges and agrees that, as of
the date hereof, and after giving effect to the terms hereof, there exists (i)
no Default or Event of Default and (ii) no right of offset, defense,
counterclaim, claim or objection in favor of the Lessee arising out of or with
respect to the Lease or other Operative Documents.

         12.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         13.      Governing Law.  This Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the
State of Georgia.

         14.      Conditions Precedent. This Amendment shall become effective
only upon:

         (i)      execution and delivery of this Amendment by each of the
parties hereto;

         (ii)     receipt by the Lessor of a certificate substantially in the
form of Exhibit A hereto, dated as of the date hereof, signed by an authorized
officer of the Lessee to the effect that (i) no Default has occurred and is
continuing on the date hereof and (ii) the representations and warranties of
Lessee contained in the Lease and the other Operative Documents are true and
correct on the date hereof (except for any representations which were correct
on the date of the Lease but are not correct on the date hereof because of a
change permitted by the Lease or the Operative Documents); and

         (iii)    receipt by the Lessor of a certificate of the Secretary or
Assistant Secretary of the Lessee substantially in the form of Exhibit B
hereto, dated as of the date hereof, setting forth (i) resolutions of its board
of directors authorizing the execution, delivery and performance of the

                                       7

<PAGE>   174

obligations contained in this Amendment, (ii) the officers of the Lessee
specified in such Secretary's Certificates that are authorized to sign this
Amendment and (iii) a statement that there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee since the
Closing Date or, if there have been any such amendments attaching such
amendments.

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                 ----------------------------------
                              Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION               (SEAL)

                              By:
                                 ----------------------------------
                              Title:

                                       8

<PAGE>   175

                                   EXHIBIT A

                              CLOSING CERTIFICATE

         Reference is made to the Fourth Amendment to Master Lease Agreement
and Amendment to Acquisition, Agency, Indemnity and Support Agreement as of
even date herewith between Lessee and Wachovia Leasing Corporation (the
"Amendment"). Capitalized terms used but not defined herein have the meanings
set forth in the Amendment or in the Lease referred to therein or in Schedule
1(b) to the Lease.

         Pursuant to Section 12(iii) of the Amendment, _____________________
_______________, the duly authorized _________________________ of the Lessee,
hereby certifies to the Lessor that (i) no Default has occurred and is
continuing as of the date hereof, and (ii) the representations and warranties
of Lessee contained in the Lease and the other Operative Documents are true and
correct on the date hereof (except for any representations which were correct
on the date of the Lease but are not correct on the date hereof because of a
change permitted by the Lease or the Operative Documents).

         Certified as of January 15, 1999.

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                 ----------------------------------
                                 Title:

                                       9

<PAGE>   176

                                   EXHIBIT B

                            SECRETARY'S CERTIFICATE

The undersigned, _________________, [Secretary/Assistant Secretary] of Flowers
Industries, Inc. (the "Lessee"), hereby certifies that he has been duly
elected, qualified and is acting in such capacity and that, as such, he is
familiar with the facts herein certified and is duly authorized to certify the
same, and hereby further certifies, in connection with the Fourth Amendment to
Master Lease Agreement and Amendment to Acquisition, Agency, Indemnity and
Support Agreement dated as of even date herewith between Lessee and Wachovia
Leasing Corporation (the "Amendment") that:

         1.       Attached hereto as Annex 1 is a complete and correct copy of
the resolutions duly adopted by the Board of Directors of the Lessee on
______________ ____, 199__ approving, and authorizing the execution and
delivery of, the Amendment. Such resolutions have not been repealed or amended
and are in full force and effect, and no other resolutions or consents have
been adopted by the Board of Directors of the Lessee in connection therewith.

         2.       ___________________, who is ____________ of the Lessee,
signed the Amendment, was duly elected, qualified and acting as such at the
time he signed the Amendment, and his signature appearing on the Amendment is
his genuine signature.

         3.       Since October 20, 1995, there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee [EXCEPT
___________________, COPIES OF WHICH ARE ATTACHED HERETO AS ANNEX[ES]______].

         IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of
the 15th day of January, 1999.

                              ------------------------------------------
                              Name:
                              Title: [Secretary/Assistant Secretary]

                                       10

<PAGE>   177

              FIFTH AMENDMENT TO MASTER LEASE AGREEMENT AND SECOND
                  AMENDMENT TO ACQUISITION, AGENCY, INDEMNITY
                             AND SUPPORT AGREEMENT

         THIS FIFTH AMENDMENT TO MASTER LEASE AGREEMENT AND SECOND AMENDMENT TO
ACQUISITION, AGENCY, INDEMNITY AND SUPPORT AGREEMENT(this "Amendment") is dated
as of May 20, 1999 between FLOWERS INDUSTRIES, INC. (the "Lessee"), and
WACHOVIA LEASING CORPORATION (the "Lessor").

                                  WITNESSETH:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995, as amended
by First Amendment to Master Lease Agreement dated as of October 20, 1996, by
Second Amendment to Master Lease Agreement dated as of April 20, 1997, by Third
Amendment to Master Lease Agreement dated as of June 10, 1998, and by Fourth
Amendment to Master Lease Agreement dated as of January 15, 1999 (as so
amended, the "Lease");

         WHEREAS, the Lessee and the Lessor have agreed that the Lease and
Agency Agreement be amended, subject to the terms and conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall have the meaning
assigned to such term in the Lease. Each reference to "hereof", "hereunder",
"herein" and "hereby" and each other similar reference and each reference to
"this

<PAGE>   178

Agreement" and each other similar reference contained in the Lease shall from
and after the date hereof refer to the Lease as amended hereby.

         2.       Amendments to the Lease.

         (a)      The following definitions set forth in Schedule 1(b) are
amended and restated in their entirety as follows in proper alphabetical order:

                  "Acquisition Period": (i) as to the Initial Phases, a period
         commencing on the Closing Date and ending (x) as to the Phases for the
         Applicable Sites located in Miami, Florida and San Antonio, Texas,
         October 21, 1997, and (y) as to the Phase for the Applicable Site
         located in Jamestown, North Carolina, 12 months after the Closing
         Date; and (ii) as to each of the Subsequent Phases, January 31, 2000.

                  "Fixed Rate":  with respect to Basic Rent for each Phase, if
         the Election has been made for such Phase, for each Rental Period,
         a rate per annum equal to either:

                        (a)   with respect to any portion of the Equipment
                  Cost for any Phase funded before the aggregate funded
                  Equipment Cost equals $80,000,000, the sum of (i) the
                  prevailing 5 year U.S. Treasury Rate as defined on page 500
                  of the Telerate Screen at 11:00 A.M., Atlanta time, on the
                  date of the Election for such Phase, plus (ii) the lesser of
                  (A) the corresponding ask side of the 5 year swap rate as
                  defined on page 19901 of the Telerate Screen at 11:00 A.M.,
                  Atlanta time, on such date, and (B) 0.55%, plus (iii) 0.45%,
                  and

                        (b)   with respect to any portion of the Equipment
                  Cost for any Phase funded after the aggregate funded
                  Equipment Cost equals or exceeds $80,000,000, the sum of (i)
                  the prevailing 5 year U.S. Treasury Rate as defined on page
                  500 of the Telerate Screen at 11:00 A.M., Atlanta time, on
                  the date of the Election for such Phase, plus (ii) the
                  corresponding ask side of the 5 year swap rate as defined on
                  page 19901 of the Telerate Screen at 11:00 A.M., Atlanta
                  time, on such date, plus (iii) 0.60%.

                                       2

<PAGE>   179

                  "Floating Rate":  with respect to Basic Rent for each
         Phase, if the Election has not been made or become effective
         for such Phase, for each Rental Period, a rate per annum
         equal to either:

                        (a)   with respect to any portion of the Equipment
                  Cost for any Phase funded before the aggregate funded
                  Equipment Cost equals $80,000,000, the sum of (i) the LIBO
                  Rate prevailing on the first day of such Rental Period, plus
                  (ii) 0.45%, and

                        (b)   with respect to any portion of the Equipment
                  Cost for any Phase funded after the aggregate funded
                  Equipment Cost equals or exceeds $80,000,000, the sum of (i)
                  the LIBO Rate prevailing on the first day of such Rental
                  Period, plus (ii) 0.60%.

                  "Non-Completion Event": as to any Phase, the failure of
         Completion to occur on or before the earlier of (i) (x) as to the
         Initial Phases for the Applicable Sites located in Miami, Florida and
         San Antonio, Texas, October 21, 1997, (y) as to all other Initial
         Phases, the date which is six months after the Phase Commencement Date
         for such Phase, and (z) as to all Subsequent Phases, January 21, 2000,
         and (ii) the last day of the Acquisition Period.

                  "Phase Completion Date": with respect to each Phase, the
         earlier to occur of (i) Completion of such Phase, (ii) (x) as to the
         Initial Phases for the Applicable Sites located in Miami, Florida and
         San Antonio, Texas, October 21, 1997, (y) as to all other Initial
         Phases, the date which is six months after the Phase Commencement Date
         for such Phase, and (z) as to all Subsequent Phases, January 21, 2000,
         and (iii) the last day of the Acquisition Period.

         (b) Section 3(a) of the Lease is amended and restated in its entirety
as follows:

                  Section 3.  Payments.

                  (a)   Interim Rent.  For each Phase, during the period
         commencing on the Phase Commencement Date and ending on the Phase
         Completion Date for such Phase, Interim Rent with

                                       3

<PAGE>   180

         respect to such Phase shall accrue on Equipment Cost during each
         Interim Rental Period at a rate per annum equal to the LIBO Rate
         prevailing on the first day of such Interim Rental Period plus (a)
         with respect to any portion of the Equipment Cost for any Phase funded
         before the aggregate funded Equipment Cost equals $80,000,000, 45
         basis points, and (b) with respect to any portion of the Equipment
         Cost for any Phase funded after the aggregate funded Equipment Cost
         equals or exceeds $80,000,000, 60 basis points; provided, that if
         there is less than one month remaining after the end of any Interim
         Rental Period until the Phase Completion Date for such Phase, Interim
         Rent for the final Interim Rental Period shall instead be determined
         on the basis of 80% of the Base Rate. Interim Rent shall be paid in
         arrears on the last day of the Interim Rental Period with respect
         thereto. In the event any Equipment Cost on which interest accrued
         based on the LIBO Rate is prepaid other than on the last day of the
         Interim Rental Period with respect thereto (including by reason of the
         occurrence of a Lease Termination Date for any reason), the Lessee
         shall compensate the Lessor for any funding losses incurred by it as a
         result of such prepayment. On the Phase Completion Date for each
         Phase, all Soft Costs incurred during the period from the Phase
         Commencement Date through the Phase Completion Date for such Phase
         shall be capitalized and added to Equipment Cost for such Phase;
         provided, that in no event shall the aggregate Equipment Cost for all
         Phases exceed $100,000,000, and to the extent any such capitalization
         of Soft Costs would cause the aggregate Equipment Cost for all Phases
         to exceed $100,000,000, the amount of the excess shall be payable to
         the Lessor on the Phase Completion Date on which such excess occurs.
         In the event any Vendor requires any advance payments, progress
         payments or full payments prior to the Lease Addition Date of the
         Equipment proposed to be added to the Lease for any Phase, the Lessee
         shall execute and deliver to the Lessor a Progress Payment Agreement
         for such Phase, and the Lessor will make available amounts pursuant
         thereto for such purpose. For any Equipment which is the subject of
         any payments made by the Lessor under a Progress Payment Agreement for
         any Phase, unpaid Additional Rent under such Progress Payment
         Agreement with respect to such Equipment shall be capitalized and,
         together with the amount of such payments made by the Lessor with
         respect to such

                                       4

<PAGE>   181

         Equipment, shall be added to and constitute part of the Equipment Cost
         for such Phase.

         3.       Amendment to Agency Agreement. Section C.1.(b)(v) of Article
1 of the Agency Agreement hereby is amended by deleting the figure
"$80,000,000" in the 2nd line thereof, and substituting therefor the figure
"$100,000,000".

         4.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents as fully
as if made on the date hereof (except for any representations which were
correct on the date of the Lease but are not correct on the date hereof because
of a change permitted by the Lease or the Operative Documents) and with
specific reference to this Amendment and all other documents executed and/or
delivered in connection herewith.

         5.       Effect of Amendments. Except as set forth expressly
hereinabove, all terms of the Lease, the Agency Agreement and the other
Operative Documents shall be and remain in full force and effect, and shall
constitute the legal, valid, binding and enforceable obligations of the Lessee.

         6.       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth in the Lease,
the Agency Agreement and the other Operative Documents effective as of the date
hereof.

         7.       Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.

         8.       Section References. Section titles and references used in this
Amendment shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

         9.       No Default. To induce the Lessor to enter into this Amendment
and to continue to make advances of Facility Cost for

                                       5

<PAGE>   182

the Subsequent Phases pursuant to the Lease, the Lessee hereby acknowledges and
agrees that, as of the date hereof, and after giving effect to the terms
hereof, there exists (i) no Default or Event of Default and (ii) no right of
offset, defense, counterclaim, claim or objection in favor of the Lessee
arising out of or with respect to the Lease or other Operative Documents.

         10.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         11.      Governing Law.  This Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the State of Georgia.

         12.      Conditions Precedent. This Amendment shall become effective
only upon:

                  (i)   execution and delivery of this Amendment by each of the
         parties hereto;

                  (ii)  receipt by the Lessor of a favorable opinion or opinions
         of counsel to the Lessee, dated as of the date hereof, substantially
         in the form of Exhibit A hereto;

                  (iii) receipt by the Lessor of a certificate substantially in
         the form of Exhibit B hereto, dated as of the date hereof, signed by
         an authorized officer of the Lessee to the effect that (i) no Default
         has occurred and is continuing on the date hereof and (ii) the
         representations and warranties of Lessee contained in the Lease and
         the other Operative Documents are true and correct on the date hereof
         (except for any representations which were correct on the date of the
         Lease but are not correct on the date hereof because of a change
         permitted by the Lease or the Operative Documents);

                  (iv)  receipt by the Lessor of a certificate of the Secretary
         or Assistant Secretary of the Lessee substantially in the form of
         Exhibit C hereto, dated as of the date hereof, setting forth (i)
         resolutions of its board of directors authorizing the execution,
         delivery and

                                       6

<PAGE>   183

         performance of the obligations contained in this Amendment, (ii) the
         officers of the Lessee specified in such Secretary's Certificates that
         are authorized to sign this Amendment and (iii) a statement that there
         have been no amendments to the articles or certificate of
         incorporation and the bylaws of the Lessee since the Closing Date or,
         if there have been any such amendments attaching such amendments; and

                  (v)   receipt by the Lessor of a structuring fee in the amount
         of $20,000.

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                   (SEAL)

                              By:
                                 ---------------------------------------
                                 Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION               (SEAL)

                              By:
                                 ---------------------------------------
                                 Title:

                                       7

<PAGE>   184

                                   EXHIBIT A
[NOTE:  THE ENFORCEABILITY PORTION OF THIS OPINION MAY BE GIVEN BY
TROUTMAN SANDERS LLP]

                            FORM OF LEGAL OPINION OF

                           GENERAL COUNSEL OF LESSEE

                              [LESSEE LETTERHEAD]

                               [__________], 1999

Wachovia Leasing Corporation
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757

Dear Sirs:

                  I am the General Counsel for Flowers Industries, Inc., a
Georgia corporation ("Lessee"). This opinion is being delivered pursuant to
Section 12(ii) of that certain Fifth Amendment to Master Lease Agreement and
Second Amendment to Acquisition, Agency, Indemnity and Support Agreement dated
as of even date herewith between Lessee and Wachovia Leasing Corporation (the
"Amendment"). Capitalized terms used but not defined herein have the meanings
set forth in the Amendment or in the Lease referred to therein or in Schedule
1(b) to the Lease.

                  I have examined originals or copies, certified or otherwise
identified to our satisfaction, of such documents, corporate records,
certificates of public officials and other instruments and have conducted such
other investigations of fact and law as I have deemed necessary or advisable
for purposes of this opinion.

                  Upon the basis of the foregoing, I am of the opinion that:

         1.       The execution, delivery and performance by Lessee of the
Amendment is within the Lessee's corporate powers, has been duly

                                       8

<PAGE>   185

authorized by all necessary corporate action, requires no action by or in
respect of, or filing with, any governmental body, agency or official, does not
contravene, or constitute a default under, any provision of applicable law or
regulation or of the certificate of incorporation or by-laws of Lessee or of
any material agreement, judgment, injunction, order, decree or other instrument
relating to Debt which is binding upon Lessee, and does not result in the
creation or imposition of any Lien on any asset of Lessee (other than the
security interest in the Equipment created by the Lease in the event that the
Lease is recharacterized as a financing transaction).

         2.       The Amendment constitutes the valid and binding obligations of
Lessee enforceable against Lessee in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and general principles of equity (including,
without limitation, the availability or non-availability of equitable
remedies), whether considered in a proceeding at law or in equity; provided
that the foregoing shall not, in my opinion, substantially interfere with the
practical realization of the benefits expressed in the Amendment, except for
the economic consequences of any procedural delay which may result therefrom.

         3.       There is no action, suit or proceeding pending for which
process has been served, or, to the best of my knowledge, threatened, against
or affecting Lessee or any of its Subsidiaries before any court or arbitrator
or any governmental body, agency or official in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of Lessee and its Consolidated Subsidiaries, considered as a whole, or which in
any manner questions the validity or enforceability of the Amendment.

         4.       The execution, delivery and performance by Lessee of the
Amendment does not conflict with or result in a violation of any law, statute,
rule or regulation of the State of Georgia (or any subdivision thereof), or
require any consent of or filing or registration with an Governmental Authority
of the State of Georgia (or any subdivision thereof) or pursuant to the UCC
which has not been obtained or completed and which is necessary for the
validity and enforceability thereof.

                                       9

<PAGE>   186

                  I am qualified to practice in the State of Georgia and do not
purport to be expert on any laws other than the laws of the State of Georgia,
the federal laws of the United States, and the UCC, and this opinion is
rendered only with respect to such laws. I have made no independent
investigation of the laws of any other jurisdiction (except with respect to the
UCC).

                  In rendering the opinions above, I have assumed, with your
permission, that Amendment has been duly authorized, executed and delivered by
Lessor and, to the extent provided therein, constitutes the legal, valid and
binding obligation of Lessor enforceable in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and general principles of equity (including,
without limitation, the availability or non-availability of equitable
remedies), whether considered in a proceeding at law or in equity.

                  This opinion is delivered to you at the request of Lessee in
connection with the transaction referenced above and may not, without my prior
written consent, be communicated to or relied upon by anyone other than you,
your successors and assigns, except that it may be communicated to Jones, Day,
Reavis & Pogue, your special counsel.

                  This opinion speaks only as of the date hereof, and I do not
undertake any duty to advise you of any change herein.

                              Very truly yours,

                              -----------------------------------
                              Tony Campbell, Esq.
                              General Counsel
                              Flowers Industries, Inc.

                                       10

<PAGE>   187

                                   EXHIBIT B

                              CLOSING CERTIFICATE

         Reference is made to the Fifth Amendment to Master Lease Agreement and
Second Amendment to Acquisition, Agency, Indemnity and Support Agreement as of
even date herewith between Lessee and Wachovia Leasing Corporation (the
"Amendment"). Capitalized terms used but not defined herein have the meanings
set forth in the Amendment or in the Lease referred to therein or in Schedule
1(b) to the Lease.

         Pursuant to Section 14(iii) of the Amendment, _________________
_________________, the duly authorized __________________ of the Lessee, hereby
certifies to the Lessor that (i) no Default has occurred and is continuing as
of the date hereof, and (ii) the representations and warranties of Lessee
contained in the Lease and the other Operative Documents are true and correct
on the date hereof (except for any representations which were correct on the
date of the Lease but are not correct on the date hereof because of a change
permitted by the Lease or the Operative Documents).

         Certified as of [__________], 1999.

                              FLOWERS INDUSTRIES, INC.              (SEAL)

                              By:
                                  ----------------------------------
                                  Title:

                                       11

<PAGE>   188

                                   EXHIBIT C

                            SECRETARY'S CERTIFICATE

The undersigned, ________________, [Secretary/Assistant Secretary] of Flowers
Industries, Inc. (the "Lessee"), hereby certifies that he has been duly
elected, qualified and is acting in such capacity and that, as such, he is
familiar with the facts herein certified and is duly authorized to certify the
same, and hereby further certifies, in connection with the Fifth Amendment to
Master Lease Agreement and Second Amendment to Acquisition, Agency, Indemnity
and Support Agreement dated as of even date herewith between Lessee and
Wachovia Leasing Corporation (the "Amendment") that:

         1.       Attached hereto as Annex 1 is a complete and correct copy of
the resolutions duly adopted by the Board of Directors of the Lessee on
____________, _____, 1999 approving, and authorizing the execution and delivery
of, the Amendment. Such resolutions have not been repealed or amended and are
in full force and effect, and no other resolutions or consents have been
adopted by the Board of Directors of the Lessee in connection therewith.

         2.       _____________, who is ______________ of the Lessee, signed
the Amendment, was duly elected, qualified and acting as such at the time he
signed the Amendment, and his signature appearing on the Amendment is his
genuine signature.

         3. Since October 20, 1995, there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee [EXCEPT
___________________, COPIES OF WHICH ARE ATTACHED HERETO AS ANNEX[ES] ].

IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of
[____________], 1999.

                              ------------------------------------------
                              Name:
                              Title: [Secretary/Assistant Secretary]

                                       12
<PAGE>   189
                   SIXTH AMENDMENT TO MASTER LEASE AGREEMENT
                   AND AMENDMENT TO OTHER OPERATIVE DOCUMENTS

         THIS SIXTH AMENDMENT TO MASTER LEASE AGREEMENT AND AMENDMENT TO OTHER
OPERATIVE DOCUMENTS (this "Amendment") is dated as of January 21, 2000 between
FLOWERS INDUSTRIES, INC. (the "Lessee"), and WACHOVIA LEASING CORPORATION (the
"Lessor").

                                  WITNESSETH:

         WHEREAS, the Lessee and the Lessor executed and delivered that certain
Master Lease Agreement, dated as of the 20th day of October, 1995, as amended
by First Amendment to Master Lease Agreement dated as of October 20, 1996, by
Second Amendment to Master Lease Agreement dated as of April 20, 1997, by Third
Amendment to Master Lease Agreement dated as of June 10, 1998, by Fourth
Amendment to Master Lease Agreement dated as of January 15, 1999, and by Fifth
Amendment to Master Lease Agreement dated as of May 20, 1999 (as so amended,
the "Lease");

         WHEREAS, the Lessee and the Lessor have agreed that the Lease and
certain other Operative Documents be amended, subject to the terms and
conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Lessee and the Lessor hereby
covenant and agree as follows:

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Lease shall have the meaning
assigned to such term in the Lease. Each reference to "hereof", "hereunder",
"herein" and "hereby" and each other similar reference and each reference to
"this Agreement" and each other similar reference contained in the Lease shall
from and after the date hereof refer to the Lease as amended hereby.

         2.       Amendments to the Lease.

         (a)      The following new definitions are hereby added to Schedule
1(b) as follows in proper alphabetical order:

<PAGE>   190

                  "Applicable Margin": (i) for the period commencing on January
         21, 2000, to and including the first Performance Pricing Determination
         Date following December 30, 2000, 1.75%, unless during such period the
         Debt Rating is BB and Ba2 or lower, in which case the Applicable
         Margin shall be based upon the table set forth below; and

                  (ii)  from and after the first Performance Pricing
         Determination Date after December 30, 2000, the percentage determined
         on each Performance Pricing Determination Date by reference to the
         table set forth below and the Debt Rating on such Performance Pricing
         Determination Date; provided, that if there is no Debt Rating, the
         Applicable Margin shall be based upon Level V of the table below.

<TABLE>
<CAPTION>
         --------------------------------------------------------------------------------
                             Level         Level         Level        Level        Level
                               I             II           III           IV           V
         --------------------------------------------------------------------------------
         <S>                 <C>           <C>           <C>          <C>          <C>
                                            <BBB          <BBB-       <BB+
                                            and           and         and
                                            Baa2          Baa3        Ba1
         Debt Rating          >BBB                                                 <BB-
                              -                                                    -
                              and           But           but         but          and
                              Baa2                                                 Ba3
                                            >BBB-         >BB+        >BB
                                            -             -           -
                                            and           and         and
                                            Baa3          Ba1         Ba2
         --------------------------------------------------------------------------------
         Applicable Margin    1.00%         1.25%         1.50%       2.00%        2.50%
         --------------------------------------------------------------------------------
</TABLE>

                  In determining the Applicable Margin, the Lessor shall refer
         to the Lessee's Debt Rating from time to time. For purposes hereof,
         "Performance Pricing Determination Date" shall mean each date on which
         the Debt Rating changes. Each change in the Applicable Margin as a
         result of a change in Debt Rating shall be effective on or after the
         relevant Performance Pricing Determination Date. All determinations
         hereunder shall be made by Lessor. The Lessee shall promptly notify
         the Lessor of any change in the Debt Rating.

                  "Credit Agreement":  that certain $500,000,000 Amended and
         Restated Credit Agreement (the "Facility") dated as of January 30,
         1998, as amended or otherwise modified from time to time (except as
         otherwise set forth in the Lease), with Wachovia Securities, Inc. as
         Lead Arranger, Wachovia as Administrative Agent and as a Bank, and
         certain other Banks, in favor of the Lessee.

                  "Debt Rating": at any time whichever is the higher of the
         rating of the Lessee's senior unsecured, unenhanced debt (or, if no
         such debt exists, its issuer credit rating for debt of such type) by
         Moody's and S&P (as such rating may change from time to time)
         (provided, that in the event of a double or greater split rating, the
         rating immediately above the lowest rating shall apply), or if only
         one of them rates the Borrower's senior unsecured, unenhanced debt,
         such rating.

                                       2
<PAGE>   191

                  "Moody's": Moody's Investors Service, Inc.

                  "S&P" means Standard & Poor's Ratings Group, a division of
         McGraw-Hill, Inc.

         (b)      The following definitions set forth in Schedule 1(b) are
amended and restated in their entirety as follows in proper alphabetical order:

                  "Acquisition Period": (i) as to the Initial Phases, a period
         commencing on the Closing Date and ending (x) as to the Phases for the
         Applicable Sites located in Miami, Florida and San Antonio, Texas,
         October 21, 1997, and (y) as to the Phase for the Applicable Site
         located in Jamestown, North Carolina, 12 months after the Closing
         Date; and (ii) as to each of the Subsequent Phases, June 30, 2000.

                  "Basic Rent": (a) after January 21, 2000, for each Phase at
         the Designated Sites, with respect to any Rental Period, the amounts
         payable for such Phase as Basic Rent for such Rental Period pursuant
         to Section 3(b) of the Lease, consisting of the sum of the Scheduled
         Payment therefor and the sum of (i) 5.77%, plus (ii) the Applicable
         Margin minus 0.45%.

                  (b) for each Phase at all Applicable Sites other than the
         Designated Sites, with respect to any Rental Period, the amounts
         payable for such Phase as Basic Rent for such Rental Period pursuant
         to Section 3(b) of the Lease, consisting of the sum of the Scheduled
         Payment therefor and either the Floating Rate Payment or, if the
         Election has been made, the Fixed Rate Payment.

                  "Fixed Rate": with respect to Basic Rent for each Phase, if
         the Lessee's Election request has been approved by the Lessor in
         writing for such Phase, for each Rental Period, a rate per annum equal
         to either:

                        (a)   with respect to each Phase at each Designated
                  Site, the sum of (i) 5.77%, plus (ii) the Applicable Margin
                  minus 0.45%, and

                        (b) with respect to each Phase other than at a
                  Designated Site, an amount equal to (i) a market rate mutually
                  agreed to by the Lessee and Lessor in writing, plus (ii)
                  the Applicable Margin.

                  "Floating Rate": with respect to Basic Rent for each Phase,
         if the Election has not been made or become effective for such Phase,
         for each Rental Period, a rate per annum equal to the sum of (i) the
         LIBO Rate prevailing on the first day of such Rental Period, plus (ii)
         the Applicable Margin.

                  "Interim Rental Period": with respect to Interim Rent
         pertaining to any Phase, the period beginning on the Phase
         Commencement Date for such Phase and ending on the numerically
         corresponding date (or, if applicable, last calendar date) which is
         either one, two or three months thereafter, as selected by the Lessee
         upon at least 3 Business Days notice and, thereafter, each subsequent
         period commencing on the last day of the immediately preceding Interim
         Rental Period and ending on the numerically

                                       3
<PAGE>   192

         corresponding date (or, if applicable, last calendar date) which is
         three months thereafter, as selected by the Lessee upon at least 3
         Business Days notice; provided, however, that:

                  (i)   no Interim Rental Period may be selected which
         commences before the Phase Completion Date and would otherwise end
         after the Phase Completion Date;

                  (ii)  if the last day of such Interim Rental Period would
         otherwise occur on a day which is not a Business Day, such last day
         shall be extended to the next succeeding Business Day, except if such
         extension would cause such last day to occur in a new calendar month,
         then such last day shall occur on the next preceding Business Day.

                  "Non-Completion Event": as to any Phase, the failure of
         Completion to occur on or before the earlier of (i) (x) as to the
         Initial Phases for the Applicable Sites located in Miami, Florida and
         San Antonio, Texas, October 21, 1997, (y) as to all other Initial
         Phases, the date which is six months after the Phase Commencement Date
         for such Phase, and (z) as to all Subsequent Phases, June 30, 2000,
         and (ii) the last day of the Acquisition Period.

                  "Non-Recourse Amount": as to any Phase, at any time an amount
         equal to a percentage of the aggregate original Equipment Cost for
         such Phase which shall be not less than 16% nor more than 23%, which
         percentage shall be determined by the Lessor in its sole discretion
         (after consultation with the Company) and notified to the Company on
         or promptly after the relevant Phase Completion Date, after
         identification of the aggregate amount of the Equipment Cost for such
         Phase as of such time.

                  "Phase Completion Date": with respect to each Phase, the
         earlier to occur of (i) Completion of such Phase, (ii) (x) as to the
         Initial Phases for the Applicable Sites located in Miami, Florida and
         San Antonio, Texas, October 21, 1997, (y) as to all other Initial
         Phases, the date which is six months after the Phase Commencement Date
         for such Phase, and (z) as to all Subsequent Phases, June 30, 2000,
         and (iii) the last day of the Acquisition Period.

         (c)      Section 3(a) of the Lease is amended and restated in its
         entirety as follows:

         Section 3.     Payments.

         (a)      Interim Rent. For each Phase, during the period commencing on
         the Phase Commencement Date and ending on the Phase Completion Date
         for such Phase, Interim Rent with respect to such Phase shall accrue
         on Equipment Cost during each Interim Rental Period at a rate per
         annum equal to the LIBO Rate prevailing on the first day of such
         Interim Rental Period plus the Applicable Margin; provided, that if
         there is less than one month remaining after the end of any Interim
         Rental Period until the Phase Completion Date for such Phase, Interim
         Rent for the final Interim Rental Period shall instead be the Base
         Rate. Interim Rent shall be paid in arrears on the last day of the
         Interim Rental Period with respect thereto. In the event any Equipment
         Cost on which interest accrued based on the LIBO Rate is prepaid other
         than on the last day of the Interim Rental Period with respect thereto
         (including by reason of the occurrence of a

                                       4
<PAGE>   193

         Lease Termination Date for any reason), the Lessee shall compensate
         the Lessor for any funding losses incurred by it as a result of such
         prepayment. On the Phase Completion Date for each Phase, all Soft
         Costs incurred during the period from the Phase Commencement Date
         through the Phase Completion Date for such Phase shall be capitalized
         and added to Equipment Cost for such Phase; provided, that in no event
         shall the aggregate Equipment Cost for all Phases exceed $103,000,000,
         and to the extent any such capitalization of Soft Costs would cause
         the aggregate Equipment Cost for all Phases to exceed $103,000,000,
         the amount of the excess shall be payable to the Lessor on the Phase
         Completion Date on which such excess occurs. In the event any Vendor
         requires any advance payments, progress payments or full payments
         prior to the Lease Addition Date of the Equipment proposed to be added
         to the Lease for any Phase, the Lessee shall execute and deliver to
         the Lessor a Progress Payment Agreement for such Phase, and the Lessor
         will make available amounts pursuant thereto for such purpose. For any
         Equipment which is the subject of any payments made by the Lessor
         under a Progress Payment Agreement for any Phase, unpaid Additional
         Rent under such Progress Payment Agreement with respect to such
         Equipment shall be capitalized and, together with the amount of such
         payments made by the Lessor with respect to such Equipment, shall be
         added to and constitute part of the Equipment Cost for such Phase.

         (d) Section 3(b) of the Lease is amended and restated in its entirety
         as follows:

                  (b)   Basic Rent

                  (i)   Floating Rate Payment Without Election; Election and
                  Election Period.

                        Subject to clause (iii) below), for each Phase, if the
                  Lessee has not been granted an Election by the Lessor within
                  the Election Period pursuant to the provisions and
                  requirements of this Section 3(b)(i), after the Phase
                  Completion Date for each Phase, the Lessee's Basic Rent
                  during the Lease Term for such Phase shall be payable for
                  each Rental Period in arrears on the Rent Payment Date for
                  such Rental Period in an amount equal to the sum of (A) the
                  amount equal to the percentage set forth in Schedule 3(b) for
                  such Rental Period (as it may be modified pursuant hereto as
                  a result of an Approval Appraisal), times the Equipment Cost
                  (the "Scheduled Amount") as to such Phase (the "Scheduled
                  Payment") plus (B) an amount accruing on the Scheduled Amount
                  as to such Phase at the Floating Rate for such Rental Period
                  (the "Floating Rate Payment"). In the event any Scheduled
                  Amount or other amount of Equipment Cost based on the LIBO
                  Rate is prepaid other than on the last day of the Rental
                  Period with respect thereto (including by reason of the
                  occurrence of a Lease Termination Date for any reason) the
                  Lessee shall compensate the Lessor for any funding losses
                  incurred by it as a result of such prepayment. Schedule 3(b)
                  also sets forth the Estimated Residual as to each Phase as of
                  the end of each Rental Period. The Lessee agrees that the
                  Lessor reserves the right to modify the Estimated Residual or
                  the percentage of Equipment Cost for determining the
                  Scheduled Amount, or both, as to any Rental Period for the
                  Equipment for any Phase as a result of the receipt of an
                  Approval Appraisal pursuant to the Agency Agreement. With

                                       5
<PAGE>   194

                  respect to any Phase, the Lessee shall have the right to
                  request that the Lessor agree, in the exercise of its sole
                  discretion, to convert the Basic Rent for such Phase within
                  the Election Period from a Floating Rate Payment basis to a
                  Fixed Rate Payment basis (any such request by the Lessee that
                  is approved by the Lessor in writing pursuant to the
                  provisions and requirements of this Section 3(b)(i) for any
                  Phase being an "Election" for such Phase). The "Election
                  Period" with respect to each Phase shall commence on the
                  Phase Completion Date for such Phase and terminate on the
                  last day of the Acquisition Period. Each Election shall be
                  requested by the Lessee by written notice received not less
                  than 7 days prior to the effective date of such Election (and
                  not less than 7 days prior to the end of the relevant
                  Election Period). Lessor shall be deemed to have disapproved
                  such Election request unless the Lessee receives a written
                  approval of such request from the Lessor within 14 days after
                  such notice requesting such Election has been sent by the
                  Lessee.

                  (ii)  Fixed Rate Payment With Election.

                        Subject to clause (iii) below, for each Phase, if the
                  Lessee has requested an Election within the Election Period
                  pursuant to the provision and requirements of Section 3(b)(i)
                  and Lessor shall have approved such Election request in
                  writing, after the Phase Completion Date for each Phase, the
                  Lessee's Basic Rent during the Lease Term for such Phase
                  shall be payable for each Rental Period in arrears on the
                  Rent Payment Date for such Rental Period in an amount equal
                  to the sum of (A) the Scheduled Payment as to such Phase for
                  such Rental Period plus (B) an amount accruing on the
                  Scheduled Amount as to such Phase at the Fixed Rate for such
                  Rental Period (the "Fixed Rate Payment"). On the first Rent
                  Payment Date after the Lessee obtains from the Lessor an
                  approved Election for a qualifying Phase, the Lessee shall
                  make, if applicable, a Basic Rent payment consisting of the
                  Schedule Payment for such Phase plus a proportionate Floating
                  Rate Payment and Fixed Rate Payment for such Phase, and the
                  Lessee shall compensate the Lessor for any funding losses
                  incurred by it as a result of such change from a Floating
                  Rate Payment to a Fixed Rate Payment prior to the end of the
                  Rental Period.

         (e)      Section 4 of the Lease is amended and restated in its
entirety as follows:

                  Section 4.  Incorporation of Credit Agreement Representations,
         Warranties and Covenants; Other Restrictive Agreements.

                  (a)   The Lessee's representations, warranties and covenants
         contained in the Credit Agreement (excluding therefrom, however,
         Section 5.05 of the Credit Agreement), as the same are amended or
         otherwise modified from time to time (except as provided in Section
         4(b) below), along with all necessary definitions and other provisions
         from the Credit Agreement necessary in order to effect the same
         (collectively, the "Credit Agreement Provisions"), are incorporated by
         reference into this Section 4 as if fully set forth herein and the
         Lessee makes, undertakes, and agrees Lessee is obligated hereunder
         with respect to, such representations, warranties and covenants in
         favor of the Lessor. A

                                      6
<PAGE>   195

         Default or Event of Default by the Lessee with respect to the Credit
         Agreement Provisions (other than under Section 5.04 of the Credit
         Agreement Provisions) shall be a Designated Event of Default, and a
         Default or Event of Default by the Lessee with respect to Section 5.04
         of the Credit Agreement Provisions shall be a Non-Designated Event of
         Default. With respect to cure periods set forth in Section 17(a)(iii)
         of the Lease and the Credit Agreement Provisions, the Lessee shall
         have a 10 day cure period with respect to Sections 5.01(e), 5.02(ii),
         5.03 through 5.05, inclusive, Sections 5.17 through 5.19, inclusive,
         and Section 5.21 of the Credit Agreement Provisions, and with respect
         to all other Credit Agreement Provisions, a 30 day cure period.
         References in the Credit Agreement Provisions to (i) the "Agent", the
         "Banks" or the "Required Banks" shall mean the Lessor hereunder, (ii)
         the "Loans" shall mean Rent hereunder, (iii) this "Agreement" shall
         mean this Agreement, and (iv) the "Loan Documents" shall mean the
         Operative Documents.

                  (b)   In the event that either (i) Wachovia is no longer a
         party to the Credit Agreement, or (ii) the Credit Agreement has
         terminated, or (iii) Wachovia is a party to the Credit Agreement and
         the Credit Agreement has been amended or modified, or any provision
         thereof has been waived and Wachovia has not consented to (ie.,
         executed and delivered) such amendment or modification or waiver,
         then, in any such event, the Credit Agreement Provisions as
         incorporated in Section 4(a) of this Agreement shall be the Credit
         Agreement Provisions as in effect on the date prior to and shall at
         all times thereafter so remain as in effect on such date prior to
         (unless amended in writing as mutually agreed between the Lessor and
         the Lessee), respectively, (x) Wachovia no longer being a party to the
         Credit Agreement, or (y) the termination of the Credit Agreement, or
         (z) the execution and delivery of any such amendment, modification or
         waiver to which Wachovia has not so consented, as the case may be.

                  (c)   The Lessee will not permit any amendment or modification
         of the Credit Agreement, or become a party to any other credit
         facility or other agreement relating to the incurrence of
         indebtedness, which provides for representations, warranties,
         covenants, events of default or other provisions which are more
         restrictive against the Lessee than the representations, warranties,
         covenants, events of default and other provisions contained in this
         Agreement without (i) the Lessor's prior written consent, or (ii) if
         requested by the Lessor, executing and delivering an amendment to this
         Agreement and, if necessary, to the other Operative Documents, in
         order to provide the same more restrictive representations,
         warranties, covenants or events of default and other provisions
         against the Lessee in favor of the Lessor, as may be requested.

         (f)      In the event that any provision of the Lease conflicts with
the Credit Agreement Provisions, then, in such event, the provisions of the
Credit Agreement Provisions shall supercede any such conflicting provision of
the Lease.

         (g)      Paragraph 2 of the form of Progress Payment Agreement set
forth on Exhibit E to the Lease is amended and restated in its entirety as
follows:

                  2.    The term of the Lease with respect to the Proposed
         Equipment will not commence until the Lease Addition

                                       7
<PAGE>   196

         Date with respect thereto. Until the Lease Addition Date as to the
         Proposed Equipment, a charge shall accrue on all such advances,
         progress or other payments made by the Lessor equal to an amount per
         annum which is the product of (i) advances or payment outstanding from
         the date any such advances are outstanding, (ii) the LIBO Rate plus
         the Applicable Margin, and (iii) the actual number days in the
         period/360 (such amount being so determined being "Additional Rent").
         Such Additional Rent shall accrue until the Lease Addition Date,
         whereupon it shall be capitalized and added to Equipment Cost for such
         Phase pursuant to Section 3(a) of the Lease.

         3.       Amendment to Agency Agreement. Section C.1.(b)(v) of Article
1 of the Agency Agreement hereby is amended by deleting the figure
"$100,000,000" in the 2nd line thereof, and substituting therefor the figure
"$103,000,000".

         4.       Amendment to Progress Payment Agreements. Paragraph 2 of each
Progress Payment Agreement is amended and restated in its entirety as follows:

                  2.    The term of the Lease with respect to the Proposed
         Equipment will not commence until the Lease Addition Date with respect
         thereto. Until the Lease Addition Date as to the Proposed Equipment, a
         charge shall accrue on all such advances, progress or other payments
         made by the Lessor equal to an amount per annum which is the product
         of (i) advances or payment outstanding from the date any such advances
         are outstanding, (ii) the LIBO Rate plus the Applicable Margin, and
         (iii) the actual number days in the period/360 (such amount being so
         determined being "Additional Rent"). Such Additional Rent shall accrue
         until the Lease Addition Date, whereupon it shall be capitalized and
         added to Equipment Cost for such Phase pursuant to Section 3(a) of the
         Lease.

         5.       Restatement of Representations and Warranties. The Lessor
hereby restates and renews each and every representation and warranty
heretofore made by it in the Lease and the other Operative Documents (as the
same are amended by this Amendment) as fully as if made on the date hereof
(except for any representations which were correct on the date of the Lease but
are not correct on the date hereof because of a change permitted by the Lease
or the Operative Documents) and with specific reference to this Amendment and
all other documents executed and/or delivered in connection herewith.

         6.       Effect of Amendments; Default Under this Amendment. Except as
set forth expressly hereinabove, all terms of the Lease, the Agency Agreement
and the other Operative Documents shall be and remain in full force and effect,
and shall constitute the legal, valid, binding and enforceable obligations of
the Lessee. A default by the Lessee under this Amendment shall be an Event of
Default under the Lease.

         7.       Ratification. The Lessee hereby restates, ratifies and
reaffirms each and every term, covenant and condition set forth in the Lease,
the Agency Agreement and the other Operative Documents effective as of the date
hereof.

         8.       Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and

                                      8
<PAGE>   197

delivered shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same instrument.

         9.       Section References. Section titles and references used in
this Amendment shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

         10.      No Default. To induce the Lessor to enter into this Amendment
and to continue to make advances of Facility Cost for the Subsequent Phases
pursuant to the Lease, the Lessee hereby acknowledges and agrees that, as of
the date hereof, and after giving effect to the terms hereof, there exists (i)
no Default or Event of Default and (ii) no right of offset, defense,
counterclaim, claim or objection in favor of the Lessee arising out of or with
respect to the Lease or other Operative Documents.

         11.      Further Assurances. The Lessee agrees to take such further
actions as the Lessor shall reasonably request in connection herewith to
evidence the amendments herein contained to the Lessee.

         12.      Governing Law. This Amendment shall be governed by and
construed and interpreted in accordance with, the laws of the State of Georgia.

         13.      Conditions Precedent. This Amendment shall become effective
only upon:

                  (i)   execution and delivery of this Amendment by each of the
         parties hereto;

                  (ii)  receipt by the Lessor of a certificate substantially in
         the form of Exhibit A hereto, dated as of the date hereof, signed by
         an authorized officer of the Lessee to the effect that (i) no Default
         has occurred and is continuing on the date hereof and (ii) the
         representations and warranties of Lessee contained in the Lease and
         the other Operative Documents are true and correct on the date hereof
         (except for any representations which were correct on the date of the
         Lease but are not correct on the date hereof because of a change
         permitted by the Lease or the Operative Documents); and

                  (iii) receipt by the Lessor of a certificate of the Secretary
         or Assistant Secretary of the Lessee substantially in the form of
         Exhibit B hereto, dated as of the date hereof, setting forth (i)
         resolutions of its board of directors authorizing the execution,
         delivery and performance of the obligations contained in this
         Amendment, (ii) the officers of the Lessee specified in such
         Secretary's Certificates that are authorized to sign this Amendment
         and (iii) a statement that there have been no amendments to the
         articles or certificate of incorporation and the bylaws of the Lessee
         since the Closing Date or, if there have been any such amendments
         attaching such amendments.

                                       9
<PAGE>   198

         IN WITNESS WHEREOF, the Lessee and the Lessor have caused this
Amendment to be duly executed, under seal, by its duly authorized officer as of
the day and year first above written.

                              LESSEE:

                              FLOWERS INDUSTRIES, INC.                  (SEAL)

                              By:
                                 ---------------------------------------
                              Title:

                              LESSOR:

                              WACHOVIA LEASING CORPORATION
                                                                         (SEAL)

                              By:
                                 ---------------------------------------
                              Title:

                                       10
<PAGE>   199
                                   EXHIBIT A

                              CLOSING CERTIFICATE

         Reference is made to the Sixth Amendment to Master Lease Agreement and
Amendment to Other Operative Documents as of even date herewith between Lessee
and Wachovia Leasing Corporation (the "Amendment"). Capitalized terms used but
not defined herein have the meanings set forth in the Amendment or in the Lease
referred to therein or in Schedule 1(b) to the Lease.

         Pursuant to Section 13(ii) of the Amendment, _______________ , the
duly authorized of ___________________ the Lessee, hereby certifies to the
Lessor that (i) no Default has occurred and is continuing as of the date
hereof, and (ii) the representations and warranties of Lessee contained in the
Lease and the other Operative Documents are true and correct on the date hereof
(except for any representations which were correct on the date of the Lease but
are not correct on the date hereof because of a change permitted by the Lease
or the Operative Documents).

         Certified as of January ___, 2000.

                              FLOWERS INDUSTRIES, INC.                  (SEAL)

                              By:
                                 ---------------------------------------
                              Title:

                                      11
<PAGE>   200

                                   EXHIBIT B

                            SECRETARY'S CERTIFICATE

The undersigned,_____________ , [Secretary/Assistant Secretary] of Flowers
Industries, Inc. (the "Lessee"), hereby certifies that he has been duly
elected, qualified and is acting in such capacity and that, as such, he is
familiar with the facts herein certified and is duly authorized to certify the
same, and hereby further certifies, in connection with the Sixth Amendment to
Master Lease Agreement and Amendment to Other Operative Documents dated as of
even date herewith between Lessee and Wachovia Leasing Corporation (the
"Amendment") that:

         1.       Attached hereto as Annex 1 is a complete and correct copy of
the resolutions duly adopted by the Board of Directors of the Lessee on      ,
2000, approving, and authorizing the execution and delivery of, the Amendment.
Such resolutions have not been repealed or amended and are in full force and
effect, and no other resolutions or consents have been adopted by the Board of
Directors of the Lessee in connection therewith.

         2.       ______________, who is ____________ of the Lessee, signed the
Amendment, was duly elected, qualified and acting as such at the time he signed
the Amendment, and his signature appearing on the Amendment is his genuine
signature.

         3.       Since October 20, 1995, there have been no amendments to the
articles or certificate of incorporation and the bylaws of the Lessee [EXCEPT
__________, COPIES OF WHICH ARE ATTACHED HERETO AS ANNEX[ES]___].

         IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of
January ___, 2000.

                              ---------------------------------------
                              Name:
                              Title: [Secretary/Assistant Secretary]

                                      12

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