Document:

hunt.htm

    CONSULTING
SERVICES AGREEMENT

     

    THIS CONSULTING SERVICES
AGREEMENT (Agreement) is made as of April 1, 2008 by and between Regency
GP LLC, a Delaware limited liability company (“Company”), and James W. Hunt,
having an address at 3721 Stratford, Dallas, Texas 75205 (hereinafter called
“Consultant”).

     

    RECITALS

     

    As a
former chief executive officer of the Company, Consultant will provide
management consulting and advisory services with respect to the business and
affairs of the Company.

     

    Company
has requested Consultant to perform these services on an as needed basis,
subject to the terms and conditions in this Agreement.

     

    Consultant
agrees to perform such consulting and advisory services as an independent
consultant (and not as an employee) on and subject to the terms and conditions
set forth herein.

     

    NOW, THEREFORE, for and in
consideration of the mutual covenants herein set forth and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     

    

     

    ARTICLE
1

     

    NATURE
OF WORK

     

    1.1 Consultant
shall perform any and all such management consulting and advisory services for
the Company and any one or more of its subsidiaries (“Consulting Services”), as
may from time to time be designated by the Chief Executive Officer of the
Company, being the Company’s authorized representative in this
regard.  The Consulting Services shall be provided under the direction
of the Company’s authorized representative.  Consultant shall perform
the Consulting Services with due diligence at all times acting in the best
interests of the Company and its subsidiaries.  Consultant shall use
his best professional judgment and discretion in determining the manner in which
services are performed for the Company.

     

    1.2 Consultant
shall not have the authority to hire outside contractors for work under this
Agreement without the prior written approval of the Company.

     

    1.3 Company
agrees to provide Consultant with such information, materials and supplies
necessary to perform Consultant’s duties at Company’s expense.

     

    1.4 Consultant
shall perform the duties required hereunder in compliance with the Company’s
Code of Business Conduct, a copy of which has been provided to
Consultant.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
2

     

    PAYMENT
TO CONSULTANT

     

    2.1 In full
and complete consideration for Consultant (i) making available the Consulting
Services to the Company, whether or not requested by the Company, and (ii) the
release and waiver provided for in Section 5.1, the Company shall pay to
Consultant the consulting fees specified in Section 2.3 and make available the
benefits set forth in Section 2.4.

     

    2.2
Consultant and the Company agree that the Company shall have the right to call
upon up to 8 hours of Consultant’s time each week, exclusive of Saturdays,
Sundays and Company holidays, during the Term of this
Agreement.  Company may not require any Consulting Services to be
performed that require more than 8 hours in any week without the consent of
Consultant.

     

    2.3
Subject to Section 5.1, the Company shall pay Consultant for the Consulting
Services, whether or not requested by the Company, at a rate of $33,500.00 per
calendar month, commencing with the month of April 2008.  Any time
expended by Consultant in excess of 8 hours in any week shall be authorized in
writing by Company’s authorized representative and shall be compensated at the
rate of $1,000.00 per hour.  Any excess time accrued during the Term
hereof shall be billed by Consultant with supporting documentation on a monthly
basis.

     

    2.4 The
Company shall reimburse Consultant for all reasonable expenses, including travel
at first class air fare and reasonable accommodations for out-of-town travel
requested and approved by the Company in advance.  Invoices for
expenses chargeable to the Company hereunder shall be supported by appropriate
receipts.  Any expenses not submitted to Company within sixty (60)
days after incurrence shall not be reimbursed by the Company unless specifically
authorized by the Company’s authorized representative.

     

    2.5
Consultant shall submit invoices not more often than monthly, and, subject to
Section 5.1, the Company shall pay the amount owed within thirty (30) days from
the Company’s receipt of the invoice.  All invoices and billings under
this Agreement shall be submitted to:

     

    Regency
GP LLC

    1700
Pacific Ave., Suite 2900

    Dallas,
Texas  75201

    Attention:  Byron
R. Kelley, President & Chief Executive Officer

    Phone:  214-750-1771

    Fax:  214-750-1749

     

    All
payments under this Agreement shall be made to Consultant at the account
currently designated in writing by Consultant for direct payment .

     

    2.6 The
Company shall have the right at its sole discretion and upon ten (10) days
written notice to Consultant to audit all charges made by Consultant pursuant to
this Agreement.

     

    2.7 It is
intended that the consulting fees paid hereunder shall constitute earnings from
self-employment income.  The Company will not withhold any amounts
therefrom as US federal income tax withholdings from wages or as employee
contributions under the US Federal

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Insurance
Contributions Act or make employer contributions thereunder with respect
thereto.  Consultant shall be solely responsible for the reporting,
estimation and payment of all income taxes, fees and other contributions on or
attributable to self-employment income attributable to the fees payable
hereunder.

     

    2.8 It is
understood and agreed that this Agreement does not create the relationship of
employer and employee between the Company and the
Consultant.  Consultant is an independent contractor with the
responsibility for, and control over, the details and means of performing the
Consulting Services.  Nothing contained in this Agreement shall be
construed as constituting Consultant as agent, representative or employee of the
Company, and Consultant shall not represent to the contrary to any person,
unless expressly authorized by the Company’s authorized
agent.  Consultant shall not be entitled to any benefits afforded to
employees of the Company or any partner of the Company.  Attached as
Appendix A is a Notice and Verification of Independent Contractor
Status.

     

    ARTICLE
3

     

    TERM

     

    3.1 Subject
to Section 5.1, the term (“Term”) of this Agreement is April 1, 2008 through
December 31, 2008.

     

    3.2 Consultant’s
engagement shall terminate on the occurrence of any of the following
events:

     

    (i) Death of
Consultant;

     

    (ii) written
notice given by the Company of a material violation by Consultant of any
provisions of this Agreement terminating this Agreement fifteen (15) days
thereafter; or

     

    (iii) On
December 31, 2008.

     

    ARTICLE
4

     

    COMPANY'S
INDEMNITY OF CONSULTANT FOR COMPANY'S NEGLIGENCE.

     

    4.1 The
Company agrees to indemnify and save the Consultant harmless from and against
any and all losses that Consultant may hereafter suffer, incur, or pay, as a
result of any injury, any bodily injury, including death, to any person or
damage (including loss of use) to the property of Consultant or others to the
extent that such losses arise out of or in connection with the negligent
performance of the Company, any of its subsidiaries or any of its or their
employees, officers, agents, or representatives.  Upon the request of
the Consultant, the Company shall promptly defend any such demand, claim, cause
of action or suit.

     

    ARTICLE
5

     

    RELEASE

     

    5.1 Notwithstanding
anything in this Agreement to the contrary, Consultant shall not be entitled to
receive any payments provided under this Agreement unless, (i) he executes
the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    general
release and waiver agreement attached as Attachment B to this Agreement and (ii)
such release has become nonrevocable by Consultant.

     

    ARTICLE
6

     

    CONFIDENTIAL
INFORMATION

     

    6.1 The
parties hereto acknowledge that certain financial, technical and other business
information that is either nonpublic, confidential or proprietary in nature may
be provided to Consultant in the course of the performance of Consulting
Services.  Any such correspondence, documents, drawings, maps,
reports, analyses, compilations, studies, notes, specifications, computer
printouts, data, or other information relating to or generated by the work
performed pursuant to this Agreement (“Confidential Information”) shall, at all
times, belong to the Company and shall be usable at any time by the Company for
any purpose, without payment or charge.  Consultant covenants that he
will not at any time use or permit others to use said documents or information,
or copies thereof, relating to the work performed under this Agreement for his
or their personal benefit during the term of this Agreement or for a period of
twelve (12) months following the expiration thereof.

     

    6.2 The
Consulting Services to be performed hereunder by Consultant are of a
confidential nature, and Consultant covenants that any developments resulting
from Consultant’s work for the Company shall be considered the sole proprietary
information of the Company.

     

    6.3 The
Consultant shall not, during the term of this Agreement or for a period of
twelve (12) months following the expiration thereof, disclose to any third party
any Confidential Information, whether written or oral, (i) that Consultant may
acquire or has previously acquired from the Company or about the Company or (ii)
the work performed pursuant to this Agreement.  Confidential
Information shall not include any information that (i) is required by law to be
disclosed (provided, however, that, prior to such disclosure, Consultant shall
give reasonable notice to the Company of the information required to be
disclosed), (ii) has become part of the public domain other than by acts or
omissions of Consultant or (iii) was or is in the possession of Consultant prior
to the date of disclosure by Company (whether that date is before or after the
date of this Agreement).

     

    6.4 As of the
date of termination of this Agreement, the Consultant shall remit and surrender
at the Company’s offices, without any cost to the Company, all Confidential
Information, together with all copies thereof, relating to the work that has
been provided to or performed by Consultant and that Consultant has in his
possession or is within his power to acquire possession at that
time.

     

    6.5 Without
prejudice to the rights and remedies otherwise available to Company, Consultant
agrees that the Company shall be entitled to equitable relief by way of
injunction or otherwise if the Consultant breaches or threatens to breach any of
the provisions of this Agreement, and Consultant hereby waives any requirement
for Company to post bond (or any other security) to obtain such equitable
relief.

     

    6.6 The terms
and conditions of this Article 5 shall, to the extent expressly provided herein,
survive the termination of this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
7

     

    EMPLOYMENT
AGREEMENT

     

    7.1 That
certain Executive Employment Agreement dated as of December 1, 2004 by and
between Regency Gas Services LLC and James W. Hunt is terminated and rendered of
no further force or effect as of April 1, 2008 except for the provisions of
Section 6 (Confidential Information) and Section 9 (Non-Competition and
Non-Solicitation), which shall remain in force until January 1,
2009.  Consultant agrees and acknowledges that he is not entitled to
any severance pay or benefits under such employment agreement.

     

    ARTICLE
8

     

    NOTICES

     

    8.1 Unless
otherwise specifically provided in this Agreement, any written notice or other
communication given pursuant to this Agreement shall be sufficiently delivered
if delivered personally or mailed or if given by telegram, fax, or similar means
of visual data transmission to the parties at the addresses set forth herein or
at such other address as may be designated from time to time by any party by
written notice to each other; and if mailed, such notice shall be deemed
received on the fifth business day following the date on which the same is
mailed by registered or certified mail, postage prepaid, and properly
addressed.  If delivered personally or by telegram, fax, or similar
means of visual data transmission, then such notice shall be deemed delivered
when transmitted and such transmission has been confirmed received.

     

    ARTICLE
9

     

    GENERAL

     

    9.1 This
Agreement shall be construed under the laws of the State of Texas, disregarding
any conflicts of laws or principles that would cause the laws of a different
jurisdiction to apply hereto.  If any provision of this Agreement is
illegal or unenforceable under the laws of the State of Texas, such provision
shall be severable and the remainder of this Agreement shall continue in full
force and effect.

     

    9.2 This
Agreement requires personal services of Consultant and, accordingly, is not
assignable in whole or in part by Consultant without the prior written consent
of the Company.

     

    9.3 This
Agreement shall inure to the benefit and be binding upon the parties hereto and
their heirs, descendants, successors and permitted assigns.

     

    9.4 The
headings herein are for convenience of reference only and shall not affect the
meaning or interpretation of this Agreement.

     

    9.5 Time
shall be of the essence hereof.

     

    9.6 This
Agreement contains the entire understanding of the parties hereto pertaining to
the subject matter contained herein and replaces and supersedes all previous
contracts written or oral, among the parties hereto pertaining to the matters
contained herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.7 No waiver
by any party or any default by any other party in the performance of any
provision, condition or requirement herein shall be deemed to be a waiver of, or
in any manner release the other party from, performance of any tougher
provision, condition or requirement herein.

     

    9.8 This
Agreement may be amended only by written contract signed by both of the parties
hereto.

     

    9.9 If any
litigation is commenced against any party hereto with respect to the subject
matter contained in this Agreement, the party prevailing in such litigation
shall be entitled, in addition to such other relief as may be granted in such
proceeding, to a reasonable sum from the non-prevailing parties for attorney’s
fees in such litigation, which sum shall be determined in such litigation or in
a separate action for such purpose.

     

    9.10 No
presumption shall operate in favor of or against any party hereto as a result of
any responsibility that any party may have had for drafting this
Agreement.

     

    9.11 If any
Consulting Services, as defined herein, were performed by Consultant under oral
agreement prior to the date hereof, this Agreement shall apply thereto as if
this Agreement were executed by the parties prior to the date such Consulting
Services were performed.

     

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

     

    

     

    Regency
GP LLC

     

    

     

    By:                                                              

    Name:  Byron
R.
Kelley                                                                                    Name:  James
W. Hunt

    Title:  Chairman,
President &
CEO                                                                 Title:  Consultant

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
A

     

    

     

    Notice and Verification of
Independent Contractor Status

     

    

     

    It is
understood and agreed that in providing services to Regency GP LLC and its
affiliates (hereinafter collectively referred to as “Regency”), I remain at all
times an independent contractor and no relationship of employer and employee is
thereby created between Regency and me.

     

    

     

    Date:                                                  Signed:                                                                  

     

    

     

    

     

    Safety and
Health

     

    

     

    It is
understood and agreed that in providing services to Regency GP LLC and its
affiliates (hereinafter collectively referred to as “Regency”), I will read and
abide by the provisions of the Regency Code of Business Conduct, a copy of which
I acknowledge receiving.

     

    

     

    Date:                                                  Signed:ibc10-1.htm

     

    Exhibit
10.1

    
      

      
         

         

          
            

          

        

        

      

       

      SECOND
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

       

      
        

         

          
            

          

        

         

      

      Among

       

      INTERSTATE
BAKERIES CORPORATION,

      a
Debtor and Debtor-in-Possession under Chapter 11 of the Bankruptcy
Code,

       

      as
Parent Borrower,

       

      CERTAIN
OF THE DIRECT AND INDIRECT SUBSIDIARIES

       

      OF
INTERSTATE BAKERIES CORPORATION,

       

      Debtors
and Debtors-in-Possession under Chapter 11 of the Bankruptcy Code,

       

      as
Subsidiary Borrowers,

       

      and

       

      THE
LENDERS PARTY HERETO,

       

      and

       

      JPMORGAN
CHASE BANK, N.A.

       

      as
Administrative Agent

       

       

      
        
          
            

          

          
            

          

        

        Dated
as of May 9, 2008

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SECOND
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

       

      TABLE
OF CONTENTS

       

      Page No.

       

      
        	
                SECTION
      1.          DEFINITIONS

              	
                2

              
	 	 	 
	
                SECTION
      1.1

              	
                Defined
      Terms

              	
                2

              
	
                SECTION
      1.2

              	
                Terms
      Generally

              	
                26

              
	
                SECTION
      1.3

              	
                Accounting
      Terms; GAAP

              	
                26

              
	 	 
	
                SECTION
      2.          AMOUNT AND
      TERMS OF CREDIT.

              	
                26

              
	 	 	 
	
                SECTION
      2.1

              	
                Commitment
      of the Lenders.

              	
                26

              
	
                SECTION
      2.2

              	
                Availability
      of Commitment; Borrowing Base

              	
                27

              
	
                SECTION
      2.3

              	
                Letters
      of Credit

              	
                27

              
	
                SECTION
      2.4

              	
                Issuance

              	
                29

              
	
                SECTION
      2.5

              	
                Nature
      of Letter of Credit Obligations Absolute

              	
                30

              
	
                SECTION
      2.6

              	
                Making
      of Loans

              	
                30

              
	
                SECTION
      2.7

              	
                Repayment
      of Loans and Unreimbursed Draws; Evidence of Debt

              	
                31

              
	
                SECTION
      2.8

              	
                Interest
      on Loans

              	
                32

              
	
                SECTION
      2.9

              	
                Default
      Interest

              	
                32

              
	
                SECTION
      2.10

              	
                Optional
      Termination or Reduction of Commitment

              	
                32

              
	
                SECTION
      2.11

              	
                Alternate
      Rate of Interest

              	
                33

              
	
                SECTION
      2.12

              	
                Refinancing
      of Loans

              	
                33

              
	
                SECTION
      2.13

              	
                Mandatory
      Prepayment; Commitment Termination

              	
                34

              
	
                SECTION
      2.14

              	
                Optional
      Prepayment of Loans; Reimbursement of Lenders

              	
                35

              
	
                SECTION
      2.15

              	
                Reserve
      Requirements; Change in Circumstances

              	
                37

              
	
                SECTION
      2.16

              	
                Change
      in Legality

              	
                38

              
	
                SECTION
      2.17

              	
                Pro
      Rata Treatment, etc

              	
                38

              
	
                SECTION
      2.18

              	
                Taxes

              	
                39

              
	
                SECTION
      2.19

              	
                Certain
      Fees

              	
                41

              
	
                SECTION
      2.20

              	
                Commitment
      Fee

              	
                41

              
	
                SECTION
      2.21

              	
                Letter
      of Credit Fees

              	
                42

              
	
                SECTION
      2.22

              	
                Nature
      of Fees

              	
                42

              
	
                SECTION
      2.23

              	
                Priority
      and Liens

              	
                42

              
	
                SECTION
      2.24

              	
                Use
      of Cash Collateral

              	
                44

              
	
                SECTION
      2.25

              	
                Right
      of Set-Off

              	
                44

              
	
                SECTION
      2.26

              	
                Security
      Interest in Letter of Credit Account

              	
                44

              
	
                SECTION
      2.27

              	
                Payment
      of Obligations

              	
                45

              
	
                SECTION
      2.28

              	
                No
      Discharge; Survival of Claims

              	
                45

              
	
                SECTION
      2.29

              	
                Replacement
      of Certain Lenders

              	
                45

              
	 	 
	
                SECTION
      3.          REPRESENTATIONS
      AND WARRANTIES

              	
                46

              
	 	 
	
                SECTION
      3.1

              	
                Organization
      and Authority

              	
                46

              

      

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

       

      
        	
                SECTION
      3.2

              	
                Due
      Execution

              	
                46

              
	
                SECTION
      3.3

              	
                Statements
      Made

              	
                47

              
	
                SECTION
      3.4

              	
                Financial
      Statements

              	
                47

              
	
                SECTION
      3.5

              	
                Ownership

              	
                47

              
	
                SECTION
      3.6

              	
                Liens

              	
                48

              
	
                SECTION
      3.7

              	
                Compliance
      with Law

              	
                48

              
	
                SECTION
      3.8

              	
                Insurance

              	
                48

              
	
                SECTION
      3.9

              	
                The
      Orders

              	
                48

              
	
                SECTION
      3.10

              	
                Use
      of Proceeds

              	
                48

              
	
                SECTION
      3.11

              	
                Litigation

              	
                49

              
	
                SECTION
      3.12

              	
                Intellectual
      Property

              	
                49

              
	
                SECTION
      3.13

              	
                Taxes

              	
                49

              
	
                SECTION
      3.14

              	
                Investment
      Company Act; Other Regulations

              	
                49

              
	
                SECTION
      3.15

              	
                ERISA
      Matters

              	
                49

              
	 	 
	
                SECTION
      4.          CONDITIONS
      OF LENDING

              	
                50

              
	
                SECTION
      4.1

              	
                Conditions
      Precedent to Initial Loan and Initial Letter of Credit

              	
                50

              
	
                SECTION
      4.2

              	
                Conditions
      Precedent to Each Loan and Each Letter of Credit

              	
                51

              
	 	 
	
                SECTION
      5.          AFFIRMATIVE
      COVENANTS

              	
                52

              
	
                SECTION
      5.1

              	
                Financial
      Statements, Reports, etc

              	
                53

              
	
                SECTION
      5.2

              	
                Existence

              	
                55

              
	
                SECTION
      5.3

              	
                Insurance

              	
                55

              
	
                SECTION
      5.4

              	
                Obligations
      and Taxes

              	
                56

              
	
                SECTION
      5.5

              	
                Notice
      of Event of Default, etc.

              	
                56

              
	
                SECTION
      5.6

              	
                Access
      to Books and Records

              	
                56

              
	
                SECTION
      5.7

              	
                Maintenance
      of Concentration Account

              	
                57

              
	
                SECTION
      5.8

              	
                Borrowing
      Base Certificate

              	
                57

              
	
                SECTION
      5.9

              	
                Compliance
      with Laws

              	
                58

              
	
                SECTION
      5.10

              	
                Environmental
      Laws

              	
                58

              
	
                SECTION
      5.11

              	
                CEO

              	
                58

              
	
                SECTION
      5.12

              	
                Revised
      Plan

              	
                58

              
	 	 
	
                SECTION
      6.          NEGATIVE
      COVENANTS

              	
                59

              
	 	 	 
	
                SECTION
      6.1

              	
                Liens

              	
                59

              
	
                SECTION
      6.2

              	
                Merger,
      etc

              	
                59

              
	
                SECTION
      6.3

              	
                Indebtedness

              	
                59

              
	
                SECTION
      6.4

              	
                Capital
      Expenditures

              	
                59

              
	
                SECTION
      6.5

              	
                EBITDA

              	
                60

              
	
                SECTION
      6.6

              	
                Guarantees
      and Other Liabilities

              	
                60

              
	
                SECTION
      6.7

              	
                Chapter
      11 Claims

              	
                60

              
	
                SECTION
      6.8

              	
                Dividends;
      Capital Stock

              	
                60

              
	
                SECTION
      6.9

              	
                Transactions
      with Affiliates

              	
                60

              
	
                SECTION
      6.10

              	
                Investments,
      Loans and Advances

              	
                61

              

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
      6.11

              	
                Disposition
      of Assets

              	
                61

              
	
                SECTION
      6.12

              	
                Nature
      of Business

              	
                61

              
	
                SECTION
      6.13

              	
                Transactions
      among Borrowers

              	
                61

              
	
                SECTION
      6.14

              	
                Right
      of Subrogation among Borrowers

              	
                61

              
	
                SECTION
      6.15

              	
                Derivative
      Agreements

              	
                61

              
	
                SECTION
      6.16

              	
                Reorganization
      Plan

              	
                62

              
	
                SECTION
      6.17

              	
                Cash
      Restructuring Charges

              	
                62

              
	 	 
	
                SECTION
      7.          EVENTS OF
      DEFAULT

              	
                62

              
	 	 
	
                SECTION
      7.1

              	
                Events
      of Default

              	
                62

              
	 	 
	
                SECTION
      8.          THE
      ADMINISTRATIVE AGENT

              	
                66

              
	 	 
	
                SECTION
      8.1

              	
                Administration
      by Administrative Agent

              	
                66

              
	
                SECTION
      8.2

              	
                Advances
      and Payments

              	
                66

              
	
                SECTION
      8.3

              	
                Sharing
      of Setoffs

              	
                67

              
	
                SECTION
      8.4

              	
                Agreement
      of Required Lenders

              	
                68

              
	
                SECTION
      8.5

              	
                Liability
      of Administrative Agent

              	
                68

              
	
                SECTION
      8.6

              	
                Reimbursement
      and Indemnification

              	
                69

              
	
                SECTION
      8.7

              	
                Rights
      of Administrative Agent

              	
                69

              
	
                SECTION
      8.8

              	
                Independent
      Lenders

              	
                69

              
	
                SECTION
      8.9

              	
                Notice
      of Transfer

              	
                69

              
	
                SECTION
      8.10

              	
                Successor
      Administrative Agent

              	
                70

              
	 	 
	
                SECTION
      9.          MISCELLANEOUS

              	
                70

              
	 	 
	
                SECTION
      9.1

              	
                Notices

              	
                70

              
	
                SECTION
      9.2

              	
                Survival
      of Agreement, Representations and Warranties, etc

              	
                71

              
	
                SECTION
      9.3

              	
                Successors
      and Assigns

              	
                71

              
	
                SECTION
      9.4

              	
                Confidentiality

              	
                74

              
	
                SECTION
      9.5

              	
                Expenses

              	
                74

              
	
                SECTION
      9.6

              	
                Indemnity

              	
                74

              
	
                SECTION
      9.7

              	
                Choice
      of Law

              	
                75

              
	
                SECTION
      9.8

              	
                No
      Waiver

              	
                75

              
	
                SECTION
      9.9

              	
                Extension
      of Maturity

              	
                75

              
	
                SECTION
      9.10

              	
                Amendments,
      etc

              	
                75

              
	
                SECTION
      9.11

              	
                Severability

              	
                76

              
	
                SECTION
      9.12

              	
                Headings

              	
                76

              
	
                SECTION
      9.13

              	
                Execution
      in Counterparts

              	
                77

              
	
                SECTION
      9.14

              	
                Prior
      Agreements; Inconsistencies

              	
                77

              
	
                SECTION
      9.15

              	
                Further
      Assurances

              	
                77

              
	
                SECTION
      9.16

              	
                Waiver
      of Jury Trial

              	
                77

              
	
                SECTION
      9.17

              	
                Subordination
      of Intercompany Indebtedness

              	
                77

              
	
                SECTION
      9.18

              	
                Certain
      Post Closing Matters

              	
                79

              
	
                SECTION
      9.19

              	
                USA
      Patriot Act

              	
                79

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

       

      Annex
A-1 – Tranche A Commitment Amounts

      Annex
A-2 – Tranche B Commitment Amounts

      Exhibit
A - Form of Amendment Order

      Exhibit
B - Form of Security and Pledge Agreement

      Exhibit
C-1 - Form of Weekly Borrowing Base Certificate

      Exhibit
C-2 - Form of Monthly Borrowing Base Certificate

      Exhibit
D - Form of Opinion of Counsel

      Exhibit
E - Form of Assignment and Acceptance

      Schedule
3.5 - Subsidiaries

      Schedule
3.6 – Liens

      Schedule
3.11 – Litigation

      Schedule
3.12 - Intellectual Property

      Schedule
6.9 - Transactions with Affiliates

      Schedule
6.10 - Other Investments

      Schedule
6.13 - Borrower Transaction Restrictions

      Schedule
9.14 – Total Usage under the Prior Agreement

      Schedule
9.18(b) – Jurisdictions where Borrowers are not in Good Standing

       

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      

      SECOND
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

       

      Dated
as of May 9, 2008

       

      SECOND
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT, dated as of May 9, 2008, among
INTERSTATE BAKERIES CORPORATION, a Delaware corporation (“Parent
Borrower”), a debtor and debtor-in-possession in a case pending under
Chapter 11 of the Bankruptcy Code, and each of the direct and indirect
subsidiaries of the Parent Borrower party to this Agreement (each individually a
“Subsidiary
Borrower” and collectively the “Subsidiary
Borrowers”; and together with the Parent Borrower, the “Borrowers”),
each of which is a debtor and debtor-in-possession in a case pending under
Chapter 11 of the Bankruptcy Code (the cases of the Borrowers, each a “Case”
and collectively, the “Cases”),
JPMORGAN CHASE BANK, N.A., a national banking association (formerly known as
JPMorgan Chase Bank) (“JPMCB”),
and each of the other commercial banks, finance companies, insurance companies
or other financial institutions or funds from time to time party hereto
(together with JPMCB, the “Lenders”),
J.P. MORGAN SECURITIES INC., as lead arranger and book runner, JPMORGAN CHASE
BANK, N.A. (formerly known as JPMorgan Chase Bank), as administrative agent (in
such capacity, the “Administrative
Agent”) for the Lenders, and JPMORGAN CHASE BANK N.A. (formerly known as
JPMorgan Chase Bank), as collateral agent (in such capacity, the “Collateral
Agent”) for the
Lenders.

       

      INTRODUCTORY
STATEMENT

       

      WHEREAS,
on September 22, 2004, the Borrowers filed voluntary petitions with the
Bankruptcy Court initiating the Cases and have continued in the possession of
their assets and in the management of their businesses pursuant to Sections 1107
and 1108 of the Bankruptcy Code; and

       

      WHEREAS,
the Borrowers are parties to that certain Amended and Restated Revolving Credit
Agreement dated as of February 16, 2007, as amended from time to time prior to
the date hereof (the “Prior
Agreement”); and

       

      WHEREAS,
the Borrowers have applied to the Lenders for a revolving credit and letter of
credit facility in an aggregate principal amount not to exceed $249,726,753.69
(subject to the terms and conditions of this Agreement); and

       

      WHEREAS,
the proceeds of the Loans will be used for (i) working capital, letters of
credit and capital expenditures; (ii) other general corporate purposes of the
Borrowers; (iii) payment of any related transaction costs, fees and
expenses; and (iv) the costs of administration of the Cases, all as provided for
herein; and

       

      WHEREAS,
all Letters of Credit issued and outstanding under the Prior Agreement as of the
initial extension of credit under this Agreement and all borrowings outstanding
thereunder on such date shall be deemed to be issued and outstanding under this
Agreement and allocated pro rata among the Lenders in accordance with their
Commitment Percentages; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
to provide for the repayment of the Loans, the reimbursement of any draft drawn
under a Letter of Credit and the payment of the other obligations of the
Borrowers hereunder and under the other Loan Documents (including, without
limitation, the Obligations of the Borrowers under Section 6.3(v)), the
Borrowers will provide to the Administrative Agent and the Lenders the following
(each as more fully described herein):

       

      (a)           an
allowed Superpriority Claim;

       

      (b)           a
perfected first priority Lien, pursuant to Section 364(c)(2) of the Bankruptcy
Code, upon all unencumbered property of the Borrowers and on all cash and cash
equivalents in the Letter of Credit Account, provided that
following the Termination Date, amounts in the Letter of Credit Account shall
not be subject to the Carve-Out hereinafter referred to;

       

      (c)           a
perfected Lien, pursuant to Section 364(c)(3) of the Bankruptcy Code, upon all
property of the Borrowers that is subject to valid and perfected Permitted Liens
that were in existence on the Filing Date or that is subject to valid Permitted
Liens in existence on the Filing Date that were or are perfected subsequent to
the Filing Date as permitted by Section 546(b) of the Bankruptcy Code;
and

       

      (d)           a
perfected first priority priming Lien, pursuant to Section 364(d)(1) of the
Bankruptcy Code, upon all property of the Borrowers (including, without
limitation, inventory, accounts receivable, rights under license agreements, and
property, plant and equipment), that is subject to the existing Liens (the
“Primed
Liens”) which secure (i) the obligations of the Borrowers to the lenders
party to the Pre-Petition Credit Agreement, and (ii) other obligations or
indebtedness of the Borrowers, which first priority priming Lien in favor of the
Administrative Agent and the Lenders shall be senior in all respects to all of
the Primed Liens; and

       

      WHEREAS,
all of the claims granted hereunder in the Cases to the Administrative Agent and
the Lenders shall be subject to the Carve-Out to the extent provided in Section
2.23.

       

      Accordingly,
the parties hereto hereby agree as follows:

       

      SECTION
1.               DEFINITIONS

       

      SECTION
1.1         Defined
Terms.

       

      As
used in this Agreement, the following terms shall have the meanings specified
below:

       

      “ABA
Pension Plan” shall mean the American Bakers Association Retirement Plan,
a defined benefit pension plan established in 1961 to provide pension benefits
to certain employees of several unrelated companies in the baking industry,
including, without limitation, the Borrowers.

       

      “ABR
Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Alternate Base Rate in accordance with the provisions of Section
2.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Account”
shall mean any right to payment for goods sold in the ordinary course of
business, regardless of how such right is evidenced and whether or not it has
been earned by performance.

       

      “Account
Debtor” means,
with respect to any Account, the obligor with respect to such
Account.

       

      “Act”
shall have the meaning given such term in Section
9.19.

       

      “Additional
Credit” shall have the meaning given such term in Section
4.2(d).

       

      “Adjusted
Eligible Accounts Receivable” shall mean Eligible Accounts Receivable,
minus the
Dilution Reserve.

       

      “Adjusted
LIBOR Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to the quotient of (i) the LIBOR Rate in effect for
such Interest Period divided by (ii) a percentage (expressed as a decimal) equal
to 100% minus Statutory Reserves.  For purposes hereof, the term
“LIBOR
Rate” shall mean the rate (rounded upwards, if necessary, to the next
1/16 of 1%) at which dollar deposits approximately equal in principal amount to
such Eurodollar Borrowing and for a maturity comparable to such Interest Period
are offered to the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two (2) Business Days prior to the commencement of such
Interest Period.

       

      “Administrative
Agent” shall have the meaning set forth in the Introduction.

       

      “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied
by the Administrative Agent.

       

      “Affected
Lender” shall have the meaning given such term in Section
2.29.

       

      “Affiliate”
shall mean, as to any Person, any other Person which, directly or indirectly, is
in control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition, a Person (a “Controlled
Person”) shall be deemed to be “controlled by” another Person (a “Controlling
Person”) if the Controlling Person possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of the
Controlled Person whether by contract or otherwise.

       

      “Agreement”
shall mean this Second Amended and Restated Revolving Credit Agreement, as the
same may from time to time be amended, restated, modified or
supplemented.

       

      “Alternate
Base Rate” shall mean, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate
in effect on such day, (b) the Base CD Rate in effect on such day plus 1% and
(c) the Federal Funds Effective Rate in effect on such day plus 1/2 of
1%.  For purposes hereof, “Prime
Rate” shall mean the rate of interest per annum publicly announced from
time to time by the Administrative Agent as its prime rate in effect at its
principal office in New York City; each change in the

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Prime
Rate shall be effective on the date such change is publicly
announced.  “Base CD
Rate” shall mean the sum of (i) the quotient of (a) the Three-Month
Secondary CD Rate divided by (b) a percentage expressed as a decimal equal
to 100% minus Statutory Reserves and (ii) the Assessment Rate.  “Three-Month
Secondary CD Rate” shall mean, for any day, the secondary market rate for
three-month certificates of deposit reported as being in effect on such day (or,
if such day shall not be a Business Day, the next preceding Business Day) by the
Board through the public information telephone line of the Federal Reserve Bank
of New York (which rate will, under the current practices of the Board, be
published in Federal Reserve Statistical Release H.15(519) during the week
following such day), or, if such rate shall not be so reported on such day or
such next preceding Business Day, the average of the secondary market quotations
for three-month certificates of deposit of major money center banks in New York
City received at approximately 10:00 a.m., New York City time, on such day (or,
if such day shall not be a Business Day, on the next preceding Business Day) by
the Administrative Agent from three New York City negotiable certificate of
deposit dealers of recognized standing selected by it. “Federal
Funds Effective Rate” shall mean, for any day, the weighted average of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the
quotations for the day of such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by
it.  If for any reason the Administrative Agent shall have determined
(which determination shall be conclusive absent manifest error) that it is
unable to ascertain the Base CD Rate or the Federal Funds Effective Rate or both
for any reason, including the inability or failure of the Administrative Agent
to obtain sufficient quotations in accordance with the terms hereof, the
Alternate Base Rate shall be determined without regard to clause (ii) of the
first sentence of this definition, as appropriate, until the circumstances
giving rise to such inability no longer exist.  Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Three-Month Secondary
CD Rate or the Federal Funds Effective Rate shall be effective on the effective
date of such change in the Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate, respectively. 

       

      “Amendment
Order” shall mean an order of the Bankruptcy Court in substantially the
form of Exhibit
A approving the Second Amended and Restated Revolving Credit Agreement
dated as of May 9, 2008, or in such other form as otherwise agreed by the
Administrative Agent, Lenders and the Borrowers, and (i) shall approve or
otherwise reaffirm the payment by the Borrowers of all fees contemplated hereby
and (ii) shall be entered with the consent or non-objection of a preponderance
(as determined by the Administrative Agent in its sole discretion) of the
secured creditors of any of the Borrowers under the Pre-Petition Credit
Agreement.

       

      “Amounts”
shall have the meaning given such term in Section
2.18(a).

       

      “Approved
Fund” means, with respect to any Lender that is a fund that invests in
bank loans and similar commercial extensions of credit, any other fund that
invests in bank loans and similar commercial extensions of credit and is managed
by the same investment advisor as such Lender or by a Lender Affiliate of such
investment advisor.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Assessment
Rate” shall mean for any date the annual rate (rounded upwards, if
necessary, to the next 1/100 of 1%) most recently estimated by the
Administrative Agent as the then current net annual assessment rate that will be
employed in determining amounts payable by the Administrative Agent to the
Federal Deposit Insurance Corporation (or any successor) for insurance by such
Corporation (or any successor) of time deposits made in dollars at the
Administrative Agent’s domestic offices.

       

      “Asset
Sale” shall mean a sale, lease or sub-lease (as lessor or sublessor),
sale and leaseback, assignment, conveyance, transfer or other disposition to, or
any exchange of property with, any Person (other than a Borrower), in one
transaction or series of transactions, of all or any part of the Borrowers’ or
any of their Subsidiaries’ businesses, assets or properties of any kind, whether
real, personal, or mixed and whether tangible or intangible, whether now owned
or hereafter acquired, including, without limitation, the capital stock of any
of the Borrowers (other than the Parent Borrower) or their Subsidiaries in each
case other than (i) Inventory, including scrap or obsolete Inventory, sold in
the ordinary course of business, and (ii) sales of assets for aggregate
consideration of less than $100,000 with respect to any transaction or series of
related transactions.

       

      “Assignment
and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Administrative Agent,
substantially in the form of Exhibit
E.

       

      “Available
Cash” means, on any date, (a) the fair market value on such date of cash
and cash equivalents held in securities accounts of the Borrowers
and  their Subsidiaries, and (b) the amount of available funds held on
such date in bank deposit accounts of the Borrowers and their
Subsidiaries.

       

      “Bankruptcy
Code” shall mean The Bankruptcy Reform Act of 1978, as heretofore and
hereafter amended, and codified as 11 U.S.C. Section 101 et seq.

       

      “Bankruptcy
Court” shall mean the United States Bankruptcy Court for the Western
District of Missouri or any other court having jurisdiction over the Cases from
time to time.

       

      “Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States.

       

      “Borrowers”
shall have the meaning set forth in the Introduction.

       

      “Borrowing”
shall mean the incurrence of Loans of a single Type made from all the Lenders on
a single date and having, in the case of Eurodollar Loans, a single Interest
Period (with any ABR Loan made pursuant to Section 2.16 being
considered a part of the related Borrowing of Eurodollar Loans).

       

      “Borrowing
Base” shall mean,
at the time of any determination, an amount equal to the sum, without
duplication, of (a) 85% of Adjusted Eligible Accounts Receivable plus (b) 40% of
Eligible Inventory, plus (c) the Real
Property Component, minus (d) the amount
of the Environmental Reserve at such time, minus (e) the
Carve-Out, minus (f) the Plan
Reserve.  The 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      Borrowing
Base at any time shall be determined by reference to the most recent Borrowing
Base Certificate delivered to the Administrative Agent pursuant to Section 5.8 of the
Agreement.  Subject to the limitations and requirements set forth in
Section 9.10(a)
of the Agreement, standards of eligibility and reserves and advance rates of the
Borrowing Base may be revised and adjusted from time to time by the
Administrative Agent in its sole discretion, with any changes in such standards
to be effective three (3) Business Days after delivery of notice thereof to the
Borrowers.

       

      “Borrowing
Base Certificate” shall mean a certificate substantially in the form of
Exhibit C-1
hereto (with respect to the certificate to be delivered by the Borrowers weekly)
and Exhibit C-2
hereto (with respect to the certificate to be delivered by the Borrowers
monthly) (in each case with such changes therein as may be required by the
Administrative Agent from time to time to reflect the components of and reserves
against the Borrowing Base as provided for hereunder from time to time),
executed and certified as accurate and complete by a Financial Officer of each
of the Borrowers, which shall include appropriate exhibits, schedules and
supporting documentation, and additional reports as (i) outlined in Exhibits C-1 and
C-2,
(ii) as requested by the Administrative Agent, and (iii) as provided
in Section
5.8.

       

      “Budget”
shall mean the projected operating budget (which includes income statements,
balance sheets and cash flow statements) detailing on a monthly and quarterly
basis, the Borrowers’ anticipated cash receipts and disbursements for the period
ending on the Maturity Date, and setting forth the anticipated uses of the
Commitment, initially delivered by the Borrowers pursuant to the requirements of
the Prior Agreement, in form and substance satisfactory to the Administrative
Agent and Loughlin Meghji & Company, or such other financial advisor as may
be acceptable to the Administrative Agent (as updated from time to time pursuant
to the Prior Agreement and pursuant to Section
5.1(i)).

       

      “Business
Day” shall mean any day other than a Saturday, Sunday or other day on
which banks in the State of New York are required or permitted to close (and,
for a Letter of Credit, other than a day on which the Fronting Bank issuing such
Letter of Credit is closed); provided, however, that when
used in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits on
the London interbank market.

       

      “Capital
Expenditures” shall mean, for any period, the aggregate of all
expenditures (whether paid in cash and not theretofore accrued subsequent to the
date of this Agreement or accrued as liabilities during such period and
including that portion of Capitalized Leases which is capitalized on the
consolidated balance sheet of the Borrowers and their Subsidiaries) by the
Borrowers and their Subsidiaries during such period that, in conformity with
GAAP, are required to be included in or reflected by the property, plant,
equipment or intangibles or similar fixed asset accounts reflected in the
consolidated balance sheet of the Borrowers and their Subsidiaries (including
equipment which is purchased simultaneously with the trade-in of existing
equipment owned by any of the Borrowers or their Subsidiaries to the extent of
the gross amount of such purchase price less the book value of the equipment
being traded in at such time), but excluding expenditures made in connection
with the replacement or restoration of assets, to the extent reimbursed or
financed from insurance proceeds paid on account of the loss of or the damage to
the assets being replaced or restored, or from awards of compensation arising
from the taking by condemnation or eminent domain of such assets being
replaced.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      “Capitalized
Lease” shall mean, as applied to any Person, any lease of property by
such Person as lessee which would be capitalized on a balance sheet of such
Person prepared in accordance with GAAP.

       

      “Carve-Out”
shall have the meaning set forth in Section
2.23(a).

       

      “Cases”
has the meaning set forth in the Introduction.

       

      “Change of
Control” shall mean with respect to the Parent Borrower and any
Subsidiary Borrower: (i) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder as in effect on the date hereof), of shares representing
more than 25% of the aggregate ordinary voting power represented by the issued
and outstanding capital stock of such Borrower; or (ii) the occupation of a
majority of the seats (other than vacant seats) on the board of directors of
such Borrower, after the Filing Date, by Persons who were neither (a) nominated
by the board of directors of such Borrower nor (b) appointed by the directors so
nominated.

       

      “Closing
Date” shall mean the date on which this Agreement has been executed and
the conditions precedent to the making of the initial Loans set forth in Section 4.1 have been
satisfied or waived, which date shall occur as promptly as is practicable after
the date of this Agreement, but in no event later than ten (10) days following
entry of the  Amendment Order.

       

      “Code”
shall mean the Internal Revenue Code of 1986, as amended.

       

      “Collateral”
shall mean the Collateral described in the Security and Pledge
Agreement.

       

      “Collateral
Agent” shall have
the meaning set forth in the Introduction.

       

      “Commitment”
shall mean, collectively, the Tranche A Commitments and the Tranche B
Commitments, and, with respect to each Tranche A Lender or Tranche B Lender, as
applicable, the Commitment of each such Lender hereunder in the amount set forth
opposite its name on Annex A-1 or Annex A-2 hereto or
as may subsequently be set forth in the Register from time to time, and as the
same may be reduced from time to time pursuant to this Agreement.

       

      “Commitment
Fee” shall have the meaning set forth in Section
2.20.

       

      “Commitment
Letter” shall mean that certain Commitment Letter dated April 17, 2008
among the Administrative Agent, J.P. Morgan Securities, Inc., the Lenders and
the Borrowers.

       

      “Commitment
Fee Percentage”
shall mean 0.50% per annum.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      “Commitment
Percentage” shall mean at any time, with respect to each Lender, the
percentage obtained by dividing its Commitment at such time by the Total
Commitment, as applicable, at such time.

       

      “Consenting
Lenders” shall have the meaning set forth in Section
9.10(b).

       

      “Consolidated
EBITDA” shall mean, for any period, all as determined in accordance with
GAAP and subject to such modifications as may be satisfactory to the
Administrative Agent, the consolidated net income (or net loss) of the Borrowers
for such period, plus (a) the sum of
(i) depreciation expense, (ii) amortization expense, (iii) other non-cash
charges, (iv) net total Federal, state and local income tax expense, (v) gross
interest expense for such period less gross interest income for such period,
(vi) extraordinary losses, (vii) any restructuring charge, (viii) non-cash
expenses related to the ABA Pension Plan exceeding $320,000 per fiscal monthly
period, and (ix) “Chapter 11 expenses” (or “administrative costs reflecting
Chapter 11 expenses”, inclusive of professional fees) as shown on the Borrowers’
consolidated statement of income for such period, less (b)
extraordinary gains.

       

      “Consummation
Date” shall mean the date of the substantial consummation (as defined in
Section 1101 of the Bankruptcy Code and which for purposes of this Agreement
shall be no later than the effective date) of a Reorganization Plan of the
Borrowers that is confirmed pursuant to an order of the Bankruptcy Court in the
Cases.

       

      “Default”
shall have the meaning given such term in Section
2.23(a).

       

      “Dilution
Factors” shall
mean, without duplication, with respect to any period, the aggregate amount of
all deductions, credit memos, returns, adjustments, allowances, bad debt
write-offs and other non-cash credits which are recorded to reduce accounts
receivable in a manner consistent with current and historical accounting
practices of the Borrowers.

       

      “Dilution
Ratio” shall
mean, at any date, the amount (expressed as a percentage) equal to (a) the
aggregate amount of the applicable Dilution Factors for the twelve (12) most
recently ended fiscal months divided by (b) total
gross sales for the twelve (12) most recently ended fiscal months.

       

      “Dilution
Reserve” shall
mean, at any date, the applicable Dilution Ratio multiplied by the Eligible
Accounts Receivable on such date, but only to the extent the Dilution Ratio
exceeds 5%.

       

      “Disclosed
Matters” shall
mean the existence or occurrence of any matter which has been disclosed by any
of the Borrowers in any filing on Form 10-K, 10-Q or 8-K made with the
Securities and Exchange Commission prior to April 2, 2008; provided, that no
matter shall constitute a “Disclosed Matter” to the extent it shall prove to be,
or shall become, materially more adverse to the Borrowers taken as a whole or to
the Lenders than it would have reasonably appeared to be on the basis of the
disclosure contained in any of the documents referred to above in this
definition.

       

      “Dollars”
and “$”
shall mean lawful money of the United States of America.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      “Domestic
Subsidiary” shall mean any Subsidiary incorporated, organized or formed
under the laws of any jurisdiction of the United States.

       

      “Eligible
Assignee” shall mean (i) a commercial bank having total assets in excess
of $1,000,000,000; (ii) a finance company, insurance company or other financial
institution or fund, in each case acceptable to the Administrative Agent, which
in the ordinary course of business extends credit of the type contemplated
herein and has total assets in excess of $200,000,000 and whose becoming an
assignee would not constitute a prohibited transaction under Section 4975 of
ERISA; and (iii) any other financial institution satisfactory to the Borrowers
and the Administrative Agent.

       

      “Eligible
Accounts Receivable”
means, at the time of any determination thereof, each Account that
satisfies the following criteria at the time of creation and continues to meet
the same at the time of such determination:  such Account (i) has been
invoiced to, and represents the bona fide amounts due to the Borrowers from, the
purchaser of goods or services, in each case originated in the ordinary course
of business of the Borrowers and (ii) in each case is subject to the Borrowers’
corporate accounts receivable credit and collection policies, procedures and
practices and (iii) is not ineligible for inclusion in the calculation of the
Borrowing Base pursuant to any of clauses (a) through (s) below or otherwise
deemed by the Administrative Agent in its sole discretion to be ineligible for
inclusion in the calculation of the Borrowing Base as described
below.  Without limiting the foregoing, to qualify as Eligible
Accounts Receivable, an Account shall indicate no person other than a Borrower
as payee or remittance party.  In determining the amount to be so
included, the face amount of an Account shall be reduced by, without
duplication, to the extent not reflected in such face amount, (i) the amount of
all accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges or other
allowances (including any amount that the Borrowers, as applicable, may be
obligated to rebate to a customer pursuant to the terms of any agreement or
understanding (written or oral)), (ii) the aggregate amount of all limits and
deductions provided for in this definition and elsewhere in this Agreement and
(iii) the aggregate amount of all cash received in respect of such Account but
not yet applied by the Borrowers to reduce the amount of such
Account.  Unless otherwise approved from time to time in writing by
the Administrative Agent (subject to the limitations and requirements set forth
in Section
9.10(a)), no Account shall be an Eligible Account Receivable if, without
duplication:

       

      (a)           the
relevant Borrower does not have sole lawful and absolute title to such Account;
or

       

      (b)           the
Account (i) is unpaid more than fifty-six (56) days from the original date of
invoice or (ii) has been written off the books of the Borrowers or has been
otherwise designated on such books as uncollectible; or

       

      (c)           more
than 50% in face amount of all Accounts of the same Account Debtor are
ineligible pursuant to clause (b) above; or

       

      (d)           the
Account Debtor is insolvent or the subject of any bankruptcy case or insolvency
proceeding of any kind or is of uncertain credit quality, as determined by the
Administrative Agent in its exclusive discretion; or

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (e)           the
Account is not payable in Dollars or the Account Debtor is either not organized
under the laws of the United States of America, any State thereof, or the
District of Columbia or is located outside or has its principal place of
business or substantially all of its assets outside the United States, except to
the extent the Account is supported by an irrevocable letter of credit
satisfactory to the Administrative Agent (as to form, substance and issuer) and
assigned to and directly drawable by the Administrative Agent; or

       

      (f)           the
Account Debtor is the United States of America or any department, agency or
instrumentality thereof, unless the relevant Borrower duly assigns its rights to
payment of such Account to the Administrative Agent pursuant to the Assignment
of Claims Act of 1940, as amended, which assignment and related documents and
filings shall be in form, and substance satisfactory to the Administrative
Agent; or

       

      (g)           the
Account is supported by a security deposit (to the extent received from the
applicable Account Debtor), progress payment, retainage or other similar advance
made by or for the benefit of the applicable Account Debtor, in each case to the
extent thereof; or

       

      (h)           (i)
it is not subject to a valid and perfected first priority Lien in favor of the
Administrative Agent for the benefit of the Secured Parties, subject to no other
Liens other than Liens (if any) permitted by the Loan Documents or (ii) it does
not otherwise conform in all material respects to the representations and
warranties contained in the Loan Documents relating to Accounts; or

       

      (i)           such
Account was invoiced (i) in advance of goods or services provided, or (ii)
twice, or (iii) the associated income has not been earned; or

       

      (j)           such
Account is a non-trade Account or relates to payment of interest or is
classified as a note receivable by the Borrowers in accordance with the
Borrowers’ current and historical practices; or

       

      (k)           the
sale to the Account Debtor is on a bill-and-hold, guaranteed sale,
sale-and-return, ship-and-return, sale on approval, extended terms or
consignment or other similar basis or made pursuant to any other written
agreement providing for repurchase or return of any merchandise which has been
claimed to be defective or otherwise unsatisfactory; or

       

      (l)           the
goods giving rise to such Account have not been shipped and title has not been
transferred to the Account Debtor, or the Account represents a progress-billing
or otherwise does not represent a completed sale; for purposes hereof
“progress-billing” means any invoice for goods sold or leased or services
rendered under a contract or agreement pursuant to which the Account Debtor’s
obligation to pay such invoice is conditioned upon a Borrower’s completion of
any further performance under the contract or agreement; or

       

      (m)           the
Account arises out of a sale made by a Borrower to an employee, officer, agent,
director, stockholder, Subsidiary or Affiliate of a Borrower, or the Account
Debtor is an Affiliate of a Borrower; or

       

      (n)           such
Account was not paid in full, and the Borrower created a new receivable for the
unpaid portion of the Account, without the agreement of the customer, and other
Accounts constituting chargebacks, debit memos and other adjustments for
unauthorized deductions; or

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (o)           the
Account is created on cash on delivery terms; or

       

      (p)           the
Account Debtor (i) is a creditor of a Borrower, (ii) has, may assert, has
asserted or is reasonably expected to assert a right of set-off against a
Borrower or (iii) has disputed or is reasonably expected to dispute its
liability (whether by chargeback or otherwise) or made, may make or is
reasonably expected to make any claim with respect to the Account or any other
Account of a Borrower which has not been resolved, in each case, without
duplication, to the extent of the amount owed by such Borrower to the Account
Debtor, the amount of such actual or asserted right of set-off, or the amount of
such dispute or claim, as the case may be; or

       

      (q)           the
Account does not comply in all material respects with the requirements of all
applicable laws and regulations, whether Federal, state or local, including
without limitation the Federal Consumer Credit Protection Act, the Federal Truth
in Lending Act and Regulation Z of the Board; or

       

      (r)           to
all or any part of such Account, a check, promissory note, draft, trade
acceptance or other Instrument for the payment of money has been received,
presented for payment and returned uncollected for any reason; or

       

      (s)           the
Account is for goods that have been sold under a purchase order or pursuant to
the terms of a contract or other agreement or understanding (written or oral)
that indicates that any Person other than the Borrowers has or has had or has
purported to have or have had an ownership interest in such goods.

       

      Notwithstanding
the foregoing, all Accounts of any single Account Debtor and its Affiliates
which, in the aggregate exceed (i) 30% in respect of Account Debtors whose
securities are rated Investment Grade or (ii) 10% in respect of all other
Account Debtors, of the total amount of all Eligible Accounts Receivable at the
time of any determination shall be deemed not to be Eligible Accounts Receivable
to the extent of such excess.  In determining the aggregate amount of
Accounts from the same Account Debtor that are unpaid more than fifty-six (56)
days from the date of invoice pursuant to clause (b) above, there shall be
excluded the amount of any net credit balances relating to Accounts with invoice
dates more than fifty-six (56) days prior to the date of
determination.  Furthermore, no Account shall be an Eligible Account
Receivable if it is for goods that have been sold under a purchase order or
pursuant to the terms of a contract or other agreement or understanding (written
or oral) that indicates that any Person other than a Borrower has or has had or
has purported to have or have had an ownership interest in such
goods.

       

      “Eligible
Finished Goods” shall mean Finished Goods that are (i) first quality,
(ii) located at plants and distribution centers owned by a Borrower, (iii)
scheduled for delivery in the ordinary course of business, and (iv) otherwise
constitute Eligible Inventory.

       

      “Eligible
Inventory” shall
mean, on any date, the Inventory Value of the Borrowers on such date deemed by
the Administrative Agent in its sole discretion to be eligible for inclusion in
the calculation of the Borrowing Base.  Without limiting the
foregoing, to qualify 

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      as
“Eligible Inventory”, no Person other than the Borrowers shall have any direct
or indirect ownership interest or title to such Inventory.  Unless
otherwise from time to time approved in writing by the Administrative Agent
(subject to the limitations and requirements set forth in Section 9.10(a)), no
Inventory shall be deemed Eligible Inventory if (and without
duplication):

       

      (a)           it
is not owned solely by the Borrowers or the Borrowers do not have sole and good,
valid and unencumbered title thereto; or

       

      (b)           it
is not located in the United States; or

       

      (c)           it
is not either (i) located on property owned by the Borrowers, (ii) located in a
third party warehouse or in another location not owned by the Borrowers, and, at
the sole discretion of the Borrowers, either (A) covered by Landlord Lien Waiver
or bailee letter, as applicable, in each case in form and substance reasonably
acceptable to the Administrative Agent, or (B) a Rent Reserve has been taken
with respect to such Inventory or (iii) located at a closed facility owned or
leased by the Borrowers; or

       

      (d)           it
is not subject to a valid and perfected first priority Lien in favor of the
Administrative Agent, except, with respect to Inventory stored at sites
described in clause (c) above, for Liens for unpaid rent or normal and customary
warehousing charges, in each case, not yet paid, to the extent of such unpaid
rent or charges; or

       

      (e)           it
is goods returned or rejected due to quality issues by the Borrowers’ customers
or goods in transit to third parties (other than to warehouse sites described in
clause (c) above); or

       

      (f)           it
is seconds or thirds or stale or is obsolete or slow moving or unmerchantable,
or overstock or excess or does not otherwise conform to the representations and
warranties contained in the Loan Documents; or

       

      (g)           it
is comprised of operating supplies, packaging, film, pallets, and/or other
shipping materials or supplies, labels, repair or maintenance parts, fuel,
tires, paint, cartons used in production or other containers, and any other such
material not considered used for sale by the Administrative Agent from time to
time, in the Administrative Agent’s sole discretion; or

       

      (h)           the
Borrowers classify such item as a sample item on their perpetual inventory
records, or the Borrowers use such item for marketing or display;
or

       

      (i)           it
is a discontinued product or component thereof; or

       

      (j)           any
portion of the Inventory Value thereof is attributable to intercompany profit
among the Borrowers or their Affiliates; or

       

      (k)           any
Inventory that is damaged or marked for return to vendor; or

       

      (l)           any
Inventory that is Work-In-Process or Finished Goods other than Eligible Finished
Goods; or

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (m)           it
is consigned or at a customer location but still accounted for in the Borrowers’
perpetual inventory balance; or

       

      (n)           it
is classified as “bakery outlet,” “dry products,” “Mrs. Cubbison’s” or “crouton”
inventory.

       

      “Eligible
Real Property’ means real property reasonably acceptable to the
Administrative Agent and owned by any of the Borrowers: (i) that is acceptable
in the sole discretion of the Administrative Agent for inclusion in the Real
Property Component, (ii) in respect of which an appraisal report has been
delivered to the Administrative Agent in form, scope and substance reasonably
satisfactory to the Administrative Agent, (iii) in respect of which the
Administrative Agent is satisfied that all actions necessary or desirable in
order to create valid first priority and subsisting Liens on such real property
have been taken, including, without limitation, any action requested by the
Administrative Agent under Section 2.23(b), (iv)
in respect of which an environmental assessment report has been completed and
delivered to the Administrative Agent in form and substance satisfactory to the
Administrative Agent and which does not indicate any non-compliance with or
liability under, or remediation action with respect to, any Environmental Law,
and (v) if required by the Administrative Agent, which is adequately protected
by fully-paid valid title insurance with endorsements and in amounts acceptable
to the Administrative Agent, insuring that the Administrative Agent for the
benefit of the Secured Parties, shall have valid first and subsisting Liens on
such real property, evidence of which shall have been provided in form and
substance satisfactory to the Administrative Agent.

       

      “Environmental
Laws” shall mean all laws,
statutes, ordinances, orders, rules, regulations, plans, policies or decrees and
the like relating to (i) environmental matters, including, without limitation,
those relating to fines, injunctions, penalties, damages, contribution, cost
recovery compensation, losses or injuries resulting from the release or
threatened release of “Hazardous
Waste” or “Hazardous
Substances” (as such terms
are defined in any applicable Environmental Law), (ii) the generation, use,
storage, transportation or disposal of Hazardous Waste or Hazardous Substance,
or (iii) occupational safety and health, public health and safety, industrial
hygiene or protection of wetlands, in any manner applicable to the Borrowers or
any of their respective properties, including, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
§ 9601 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. § 1801 et seq.,), the Resource Conservation and
Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control
Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401
et seq.), the Toxic Substances Control Act (15
U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide
and Rodenticide Act (7 U.S.C. §136 et seq.), the Occupational Safety and Health
Act (29 U.S.C. § 651 et seq.), and the Emergency Planning and
Community Right-to-Know Act (42 U.S.C. § 11001 et seq.), each as amended or supplemented, and
any analogous future or present local, state and federal statutes and
regulations promulgated pursuant thereto, each as in effect as of the date of
determination.

       

      “Environmental
Lien” shall mean a Lien in favor of any Governmental Authority for (i)
any liability under federal or state Environmental Laws, or (ii) damages
arising from or costs incurred by such Governmental Authority in response to a
release or threatened release of a hazardous or toxic waste, substance or
constituent, or other substance into the environment.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      “Environmental
Reserve” means a reserve determined by the Administrative Agent in its
sole discretion for costs associated with (a) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (b)
exposure to any Hazardous Materials or (c) any Release.

       

      “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued
thereunder.

       

      “ERISA
Affiliate” shall mean any trade or business (whether or not incorporated)
which is a member of a group of which any of the Borrowers is a member and which
is under common control within the meaning of Section 414(b) or (c) of the Code
and the regulations promulgated and rulings issued thereunder.

       

      “Eurocurrency
Liabilities” shall have the meaning assigned thereto in Regulation D
issued by the Board, as in effect from time to time.

       

      “Eurodollar
Borrowing” shall mean a Borrowing comprised of Eurodollar
Loans.

       

      “Eurodollar
Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Adjusted LIBOR Rate in accordance with the provisions of Section
2.

       

      “Event of
Default” shall have the meaning given such term in Section
7.

       

      “Facilities” shall mean any and all real property
(including, without limitation, all buildings, fixtures or other improvements
located thereon) now, hereafter or heretofore owned, leased, operated or used by
the Borrowers (but only as to portions of buildings actually leased or used) or
any of their respective predecessors or any of their respective Affiliates that
are directly or indirectly controlled by the Borrowers.

       

      “Fees”
shall collectively mean the Commitment Fees, Letter of Credit Fees and other
fees referred to in Sections 2.19, 2.20 and 2.21.

       

      “Filing
Date” shall mean September 22, 2004.

       

      “Final
Order” shall mean the Final Order (I) Authorizing
Debtors (A) To Obtain Post-Petition Financing Pursuant To 11 U.S.C. §§105, 361,
362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) And 364(e) And (B) To Utilize
Cash Collateral Pursuant To 11 U.S.C. §363, And (II) Granting Adequate
Protection To Pre-Petition Secured Parties Pursuant To 11 U.S.C. §§ 361, 362,
363 And 364 dated October 22, 2004.

       

      “Financial
Officer” shall mean the Chief Financial Officer, Controller or Treasurer
of the Parent Borrower or a Subsidiary Borrower, as the case may
be.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      “Finished
Goods” shall mean
completed goods which require no additional processing or manufacturing to be
sold to third party customers by the Borrowers in the ordinary course of
business.

       

      “Forecast” shall mean a forecast of the
sources and uses of cash by the Borrowers on a weekly basis for the thirteen
(13) calendar weeks succeeding delivery thereof, initially delivered by the
Borrowers pursuant to the Prior Agreement, in form and substance satisfactory to
the Administrative Agent and Loughlin Meghji & Company or such other
financial advisor as may be acceptable to the Administrative Agent (as updated
from time to time pursuant to the Prior Agreement and pursuant to in Section
5.1(e).

       

      “Fronting
Bank” shall mean JPMCB or such other commercial bank as may agree with
JPMCB to act in such capacity and shall be reasonably satisfactory to the
Borrowers and the Administrative Agent.

       

      “GAAP”
shall mean accounting principles generally accepted in the United States and
applied in accordance with Section
1.2.

       

      “Governmental
Authority” shall mean any Federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality or any court,
in each case whether of the United States or foreign.

       

      “Hazardous
Substances” shall have the
meaning given such term in the defined term “Environmental
Laws”.

       

      “Hazardous
Waste” shall have the
meaning given such term in the defined term “Environmental
Laws”.

       

      “Indebtedness”
shall mean, at any time and with respect to any Person:  (i) all
indebtedness of such Person for borrowed money; (ii) all indebtedness of such
Person for the deferred purchase price of property or services (other than
property, including inventory, and services purchased, and expense accruals and
deferred compensation items arising, in the ordinary course of business); (iii)
all obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments (other than performance, surety and appeal bonds arising in
the ordinary course of business); (iv) all indebtedness of such Person created
or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and remedies
of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property); (v) all obligations of such Person
under leases which have been or should be, in accordance with GAAP, recorded as
capital leases, to the extent required to be so recorded; (vi) all
reimbursement, payment or similar obligations of such Person, contingent or
otherwise, under acceptance, letter of credit or similar facilities and all
obligations of such Person in respect of:  (x) currency swap
agreements, currency future or option contracts and other similar agreements
designed to hedge against fluctuations in foreign currency exchange rates, (y)
interest rate swap, cap or collar agreements and interest rate future or option
contracts and other similar agreements designed to hedge against fluctuations in
interest rates, and (z) swap agreements, future or option contracts and other
similar agreements designed to hedge against fluctuations in commodities prices;
(vii) all 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      indebtedness
referred to in clauses (i) through (vi) above guaranteed directly or indirectly
by such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (a) to pay or purchase such indebtedness or to advance or
supply funds for the payment or purchase of such indebtedness, (b) to purchase,
sell or lease (as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
indebtedness or to assure the holder of such indebtedness against loss in
respect of such indebtedness, (c) to supply funds to or in any other manner
invest in the debtor (including any agreement to pay for property or services
irrespective of whether such property is received or such services are rendered)
or (d) otherwise to assure a creditor against loss in respect of such
indebtedness, and (viii) all indebtedness referred to in clauses (i) through
(vii) above secured by (or for which the holder of such indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien upon or in
property (including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such indebtedness.

       

      “Indemnified
Party” shall have the meaning given such term in Section
9.6.

       

      “Insufficiency”
shall mean, with respect to any Plan, the amount, if any, of its unfunded
benefit liabilities within the meaning of Section 4001(a)(18) of
ERISA.

       

      “Intercompany
Indebtedness” shall mean any claim of an Affiliate of a Borrower against
any other Affiliate of a Borrower, any claim of a Borrower against any of its
Affiliates, and any claim of any Affiliate of a Borrower against a
Borrower.

       

      “Interest
Payment Date” shall mean (i) as to any Eurodollar Loan, the last day of
each consecutive thirty (30) day period running from the commencement of the
applicable Interest Period, and (ii) as to all ABR Loans, the last calendar day
of each month and the date on which any ABR Loans are refinanced with Eurodollar
Loans pursuant to Section
2.12.

       

      “Interest
Period” shall mean, as to any Borrowing of Eurodollar Loans, the period
commencing on the date of such Borrowing (including as a result of a refinancing
of ABR Loans) or on the last day of the preceding Interest Period applicable to
such Borrowing and ending on the numerically corresponding day (or if there is
no corresponding day, the last day) in the calendar month that is one, three or
six months thereafter, as the Borrowers may elect in the related notice
delivered pursuant to Section 2.6(b) or
2.12; provided, however, that (i) if
any Interest Period would end on a day which shall not be a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day,
and (ii) no Interest Period shall end later than the Termination
Date.

       

       

      “Interim
Order” shall mean the Interim Order (I)
Authorizing Debtors (A) To Obtain Post-Petition Financing Pursuant To 11 U.S.C.
§§105, 361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) And 364(e) And (B)
To Utilize Cash Collateral Pursuant To 11 U.S.C. §363, (II) Granting Adequate
Protection To Pre-Petition Secured Parties Pursuant To 11 U.S.C. §§ 361, 362,
363 And 364 And (III) Scheduling Final Hearing Pursuant To Bankruptcy Rules
4001(B) And (C) entered by the Bankruptcy Court on September 23,
2004.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      “Inventory” shall mean all Raw
Materials, Work-in-Process, and Finished Goods held by the Borrowers in the
normal course of business.

       

      “Inventory
Reserves” means
the following, each as determined by the Administrative Agent from time to
time:

       

      (a)           a
reserve for shrink, or discrepancies that arise pertaining to inventory
quantities on hand between the Borrowers’ perpetual accounting system, and
physical counts of the Inventory, but not less than 2% of the Eligible
Inventory; or

       

      (b)           a
reserve for slow move, obsolete or excess Inventory; or

       

      (c)           a
reserve for favorable standard cost variances; or

       

      (d)           a
reserve for amounts owing to landlords or warehousemen for Inventory stored at
leased facilities or public warehouses which are not the subject of an access
agreement acceptable to the Administrative Agent, in the amount of (i) to the
extent the Borrowers are able to determine the average rental expense for any
such facility, the Rent Reserve, plus (ii) in all other events, the Inventory
Value of the Inventory stored at such other leased facilities or public
warehouses; or

       

      (e)           a
reserve for Inventory located  at contractors’ or vendors’ facilities
in the amount of the Inventory Value of such Inventory; or

       

      (f)           any
other reserve as deemed appropriate by the Administrative Agent in its exclusive
discretion, from time to time; or

       

      (g)           a
reserve for vendor rebates.

       

      “Inventory
Value” shall mean
with respect to any Inventory of the Borrowers at the time of any determination
thereof, the standard cost carried on the perpetual records of the Borrowers
stated on a basis consistent with their current and historical accounting
practices, in Dollars, determined in accordance with the standard cost method of
accounting less, (i) any markup on Inventory from an Affiliate and (ii) in the
event variances under the standard cost method (a) are capitalized, favorable
variances shall be deducted from Eligible Inventory, and unfavorable variances
shall not be added to Eligible Inventory, or (b) are expensed, a reserve shall
be determined as appropriate in order to adjust the standard cost of Eligible
Inventory to approximate actual cost.

       

      “Investments”
shall have the meaning given such term in Section
6.10.

       

      “Investment
Grade” shall mean
either (i) at least Baa3 by Moody’s (or the then equivalent) or (ii) at least
BBB­ by S&P (or the then equivalent).

       

      “JPMCB”
shall have the meaning set forth in the Introduction.

       

      “Landlord
Lien Waiver” shall mean a written agreement in such form as is reasonably
acceptable to the Administrative Agent, pursuant to which a Person shall waive
or subordinate its rights and claims as landlord in any Inventory of the
Borrowers for unpaid rents, grant access to the Administrative Agent for the
repossession and sale of such inventory and make other agreements relative
thereto.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      “Lenders”
shall have the meaning set forth in the Introduction and, for the avoidance of
doubt, shall include each Tranche A Lender and each Tranche B
Lender.

       

      “Lender
Affiliate” shall mean, (i) with respect to any Lender, (a) an Affiliate
of such Lender or (b) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise investing
in loans and similar extensions of credit in the ordinary course of its business
and is administered or managed by a Lender or an Affiliate of such Lender and
(ii) with respect to any Lender that is a fund which invests in loans and
similar extensions of credit, any other fund that invests in loans and similar
extensions of credit and is managed by the same investment advisor as such
Lender or by an Affiliate of such investment advisor.

       

      “Letter of
Credit” shall mean any irrevocable letter of credit issued pursuant to
Section 2.3,
which letter of credit shall be (i) a standby or import documentary letter of
credit, (ii) issued for purposes that are consistent with the ordinary course of
business of the Borrowers or for such other purposes as are acceptable to the
Administrative Agent, (iii) denominated in Dollars and (iv) otherwise in such
form as may be approved from time to time by the Administrative Agent and the
applicable Fronting Bank.

       

      “Letter of
Credit Account” shall mean the account established by the Borrowers under
the sole and exclusive control of the Administrative Agent maintained at the
office of the Administrative Agent at 270 Park Avenue, New York, New York 10017
designated as the “Interstate Bakeries Corporation Letter of Credit Account”
that shall be used solely for the purposes set forth in Sections 2.3(b) and
2.13.

       

      “Letter of
Credit Fees” shall mean the fees payable in respect of Letters of Credit
pursuant to Section
2.21.

       

      “Letter of
Credit Outstandings” shall mean, at any time, the sum of (i) the
aggregate undrawn stated amount of all Letters of Credit then outstanding plus
(ii) all amounts theretofore disbursed under Letters of Credit and not then
reimbursed.

       

      “Lien”
shall mean any mortgage, pledge, security interest, encumbrance, lien or charge
of any kind whatsoever (including any conditional sale or other title retention
agreement or any lease in the nature thereof).

       

      “Loan”
and “Loans”
shall have the respective meanings given such terms in Section
2.1.

       

      “Loan
Documents” shall mean this Agreement, the Letters of Credit, the Security
and Pledge Agreement and any other instrument or agreement executed and
delivered in connection herewith.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      “Material
Adverse Effect” shall mean
(i) a material adverse effect upon the business, operations, properties, assets,
condition (financial or otherwise) or prospects (other than, with respect to
prospects, as may normally result as a consequence of the commencement of the
Cases) of the Borrowers, taken as a whole, (ii) the material impairment of the
ability of the Borrowers to perform the Obligations and (iii) a material adverse
effect upon the legality, validity, binding effect or enforceability against the
Parent Borrower or any Subsidiary Borrower of a Loan Document to which it is a
party.

       

      “Maturity
Date” shall mean September 30, 2008.

       

      “Minority
Interests” shall mean any shares of stock of any class of a Subsidiary of
the Borrowers (other than directors’ qualifying shares if required by law) that
are not owned by Borrowers or one of their Subsidiaries; Minority Interest shall
be valued in accordance with GAAP.

       

      “Minority
Lenders” shall have the meaning given such term in Section
9.10(b).

       

      “Moody’s”
shall mean Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

       

      “Multiemployer
Plan” shall mean a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA to which any Borrower or any ERISA Affiliate is
making or accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions.

       

      “Multiple
Employer Plan” shall mean a Single Employer Plan, which (i) is maintained
for employees of a Borrower or an ERISA Affiliate and at least one Person other
than such Borrower and its ERISA Affiliates or (ii) was so maintained and in
respect of which a Borrower or an ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such Plan has been or were to be
terminated.

       

      “Net
Proceeds” shall mean, in respect of any sale of assets, the proceeds of
such sale after the payment of or reservation for expenses that are directly
related to the sale, including, but not limited to, related severance costs,
taxes payable, brokerage commissions, professional expenses, other similar costs
that are directly related to the sale and the amount secured by valid and
perfected Liens, if any, that are senior to the Liens on such assets held by the
Administrative Agent on behalf of the Lenders.

       

      “Obligations”
shall mean (i) the due and punctual payment of principal of and interest on the
Loans and the reimbursement of all amounts drawn under Letters of Credit, and
(ii) the due and punctual payment of the Fees and all other present and future,
fixed or contingent, monetary obligations of the Borrowers to the Lenders, the
Administrative Agent and the Collateral Agent under the Loan
Documents.

       

      “Orders”
shall mean, collectively, (i) the Interim Order, (ii) the Amendment Order, (iii)
the Final Order, (iv) the Final Order Authorizing
Debtors to Enter into the Eighth Amendment to Revolving Credit Agreement
entered by the Bankruptcy Court on August 23, 2006, (v) the Final Order Authorizing
Debtors to Enter into Amended and Restated Revolving 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      Credit Agreement
entered by the Bankruptcy Court on February 16, 2007, and (vi) the Order Authorizing Debtors to
Enter into Third Amendment to Amended and Restated Revolving Credit
Agreement entered by the Bankruptcy Court on December 19,
2007.

       

      “Organizational
Documents” shall mean (i) with respect to any corporation, its
certificate or articles of incorporation, as amended, and its by-laws, as
amended, (ii) with respect to any limited partnership, its certificate of
limited partnership or formation, as amended, and its partnership agreement, as
amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, (iv) with respect to any limited liability company, its
certificate of formation or articles of organization, as amended, and its
operating agreement, as amended, and (v) with respect to any unlimited liability
company, its certificate of formation, as amended, and its memorandum and
articles of association, as amended.  In the event any term or
condition of this Agreement or any other Loan Document requires any
Organizational Document to be certified by a secretary of state of similar
governmental official, the reference to any such “Organizational Document” shall
only be to a document of a type customarily certified by such governmental
official.

       

      “Other
Taxes” shall have the meaning given such term in Section
2.18(b).

       

      “Parent
Borrower”
shall have the meaning set forth in the Introduction.

       

      “PBGC”
shall mean the Pension Benefit Guaranty Corporation, or any successor agency or
entity performing substantially the same functions.

       

      “Pension
Plan” shall mean a defined benefit pension (as defined in Section 414(j)
of the Code and Section 3(35) of ERISA) which meets and is subject to the
requirements of Section 401(a) of the Code.

       

      “Permitted
Investments” shall mean (i) direct obligations of, or obligations the
principal of and interest on which are unconditionally guaranteed by, the United
States of America (or by any agency thereof to the extent such obligations are
backed by the full faith and credit of the  United States of America),
in each case maturing within twelve months from the date of acquisition thereof,
(ii) without limiting the provisions of paragraph (iv) below, investments in
commercial paper maturing within six months from the date of acquisition thereof
and having, at such date of acquisition, a rating of at least “A-2” or the
equivalent thereof from S&P or of at least “P-2” or the equivalent thereof
from Moody’s, (iii) investments in certificates of deposit, banker’s acceptances
and time deposits (including Eurodollar time deposits) maturing within six
months from the date of acquisition thereof issued or guaranteed by or placed
with (a) any domestic office of the Administrative Agent or the bank with whom
the Borrowers maintain their cash management system, provided, that if such bank
is not a Lender hereunder, such bank shall have entered into an agreement with
the Administrative Agent pursuant to which such bank shall have waived all
rights of setoff and confirmed that such bank does not have, nor shall it claim,
a security interest therein or (b) any domestic office of any other commercial
bank of recognized standing organized under the laws of the United States of
America or any State thereof that has a combined capital and surplus and
undivided profits of not less than $250,000,000 and is the principal banking
Subsidiary of a bank holding company having a long-term unsecured debt rating of
at least “A” or the equivalent thereof from S&P or at least “A2” or

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      the
equivalent thereof from Moody’s, (iv) investments in commercial paper maturing
within six months from the date of acquisition thereof and issued by (a) the
holding company of the Administrative Agent or (b) the holding company of any
other commercial bank of recognized standing organized under the laws of the
United States of America or any State thereof that has (1) a combined capital
and surplus in excess of $250,000,000 and (2) commercial paper rated at least
“A-2” or the equivalent thereof from S&P or of at least “P-2” or the
equivalent thereof from Moody’s, (v) investments in repurchase obligations with
a term of not more than seven (7) days for underlying securities of the types
described in clause (i) above entered into with any office of a bank or trust
company meeting the qualifications specified in clause (iii) above, (vi)
investments in money market funds substantially all the assets of which are
comprised of securities of the types described in clauses (i) through (v) above,
(vii) to the extent owned by the Borrowers on the Filing Date, investments in
the capital stock of any direct or indirect Subsidiary of the Borrowers as
disclosed in Schedule
3.5, and (viii) to the extent owned by the Borrowers on the Filing Date,
miscellaneous investments in the capital stock of any Person held by any
individual bakery, in full or partial payment for certain services rendered or
products supplied, in an aggregate amount not to exceed $1,000,000.

       

      “Permitted
Liens” shall mean (i) Liens in favor of the Administrative Agent on
behalf of the Lenders; (ii) Liens imposed by law (other than Environmental Liens
and any Lien imposed under ERISA) for taxes, assessments or charges of any
Governmental Authority for claims not yet due or which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves or other appropriate provisions are being maintained in accordance with
GAAP; (iii) Liens of landlords and Liens of statutory carriers, warehousemen,
mechanics, materialmen and other Liens (other than Environmental Liens and any
Lien imposed under ERISA) in existence on the Filing Date or thereafter imposed
by law and created in the ordinary course of business; (iv) Liens (other than
any Lien imposed under ERISA) incurred or deposits made (including, without
limitation, surety bonds and appeal bonds) in connection with workers’
compensation, unemployment insurance and other types of social security benefits
or to secure the performance of tenders, bids, leases, contracts (other than for
the repayment of Indebtedness), statutory obligations and other similar
obligations incurred in the ordinary course of business; (v) easements
(including, without limitation, reciprocal easement agreements and utility
agreements), rights-of-way, covenants, consents, reservations, encroachments,
variations and zoning and other restrictions, charges or encumbrances (whether
or not recorded) and interest of ground lessors, which do not materially
interfere with the ordinary conduct of the business of any Borrower, and which
do not materially detract from the value of the property to which they attach or
materially impair the use thereof to any Borrower; (vi) purchase money Liens
(including Capitalized Leases) upon or in any property acquired or held in the
ordinary course of business to secure the purchase price of such property or to
secure Indebtedness permitted by Section 6.3(iii)
solely for the purpose of financing the acquisition of such property; (vii)
Liens set forth on Schedule 3.6; (viii)
Liens on the assets of Subsidiaries granted to secure Indebtedness permitted by
Section
6.3(vii); (ix) Liens created in connection with extensions, renewals or
replacements, including replacement Liens granted by the Bankruptcy Court, of
any Lien referred to in clauses (i) through (vii) above, provided that the
principal amount of the obligation secured thereby is not increased and that any
such extension, renewal or replacement is limited to the property originally
encumbered thereby; (x) pre-petition Liens granted pursuant to the Pre-Petition
Credit Agreement or the Security Documents (as defined therein) by the Borrowers
party to the Pre-Petition Credit Agreement for the benefit of the banks and
other 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      financial
institutions from time to time party to the Pre-Petition Credit Agreement; and
(xi) Liens junior to the senior liens contemplated hereby that are granted by
any of the Orders pursuant to 11 U.S.C. §364(d)(1) as adequate protection to the
Primed Parties, provided that the
Orders provide that the holders of such junior liens shall not be permitted to
take any action to enforce their rights with respect to such junior liens as
long as any amounts are outstanding under this Agreement or the Lenders have any
Commitment hereunder.

       

      “Person”
shall mean any natural person, corporation, division of a corporation,
partnership, trust, joint venture, association, company, estate, unincorporated
organization or government or any agency or political subdivision
thereof.

       

      “Plan”
shall mean a Single Employer Plan or a Multiemployer Plan.

       

      “Plan
Reserve” shall
mean the amount of $0.00.

       

      “Pre-Petition
Credit Agreement”
shall mean that certain Amended and Restated Credit Agreement dated as of
April 25, 2002, as amended, supplemented or otherwise modified prior to the
Filing Date, among the Parent Borrower and certain of the Subsidiary Borrowers,
as borrowers, the banks and other financial institutions from time to time
parties thereto, JPMCB, as administrative agent, and others.

       

      “Pre-Petition
Payment” shall mean a payment (by way of adequate protection or
otherwise) of principal or interest or otherwise on account of any pre-petition
Indebtedness or trade payables or other pre-petition claims against the
Borrowers, including, without limitation, reclamation claims and materialmen’s
liens.

       

      “Primed
Liens” shall have
the meaning set forth in Section
2.23.

       

      “Primed
Parties” shall mean the parties who hold Primed Liens.

       

      “Prior
Agreement” has the meaning set forth in the Introduction.

       

       “Pure Food
and Drug Laws” shall mean (i) the Federal Food, Drug and Cosmetic Act, as
amended from time to time, and any successor statute and (ii) the pure food and
drug laws of each of the states of the United States into which products
manufactured, marketed or sold by the Borrowers are or have been
shipped.

       

      “Raw
Materials” shall
mean any items or materials used or consumed in the manufacture of goods to be
sold by the Borrowers in the ordinary course of business.

       

      “Real
Property Component”
shall mean a component of the Borrowing Base determined with reference to
the Eligible Real Property and shall mean, at the time of any determination, an
amount equal to $150,000,000 (as adjusted from time to time pursuant to Section
5.8).

       

      “Register”
shall have the meaning set forth in Section
9.3(e).

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      “Release”
shall mean actively or passively disposing, discharging, injecting, spilling,
pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring,
seeping, migrating or the like, into or upon any land or water or air, or
otherwise entering into the environment.

       

      “Rent
Reserve” shall mean, with respect to any store, warehouse distribution
center, regional distribution center or depot where any Inventory subject to
Liens arising by operation of law is located, a reserve equal to three (3)
months’ rent at such store, warehouse distribution center, regional distribution
center or depot.

       

      “Reorganization
Plan” shall mean a plan of reorganization in any of the
Cases.

       

      “Replacement
Lender” shall have the meaning given such term in Section
2.29.

       

      “Required
Lenders” shall mean, at any time, Lenders holding in excess of 50% of the
Total Commitment.

       

      “S&P”
shall mean Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc., or any successor to the rating agency business
thereof.

       

      “Security
and Pledge Agreement” shall mean the Security and Pledge Agreement dated
as of September 23, 2004, by and among the Borrowers as grantors and the
Collateral Agent, the form of which is attached hereto as Exhibit B, as the
same may be amended, modified or restated from time to time.

       

      “Single
Employer Plan” shall mean a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (i) is maintained for employees of a
Borrower or an ERISA Affiliate or (ii) was so maintained and in respect of which
a Borrower could have liability under Section 4069 of ERISA in the event such
Plan has been or were to be terminated.

       

      “Statutory
Reserves” shall mean on any date the percentage (expressed as a decimal)
established by the Board and any other banking authority which is (i) for
purposes of the definition of Base CD Rate, the then stated maximum rate of all
reserves (including, but not limited to, any emergency, supplemental or other
marginal reserve requirement) for a member bank of the Federal Reserve System in
New York City, for new three month negotiable nonpersonal time deposits in
dollars of $100,000 or more or (ii) for purposes of the definition of Adjusted
LIBOR Rate, the then stated maximum rate for all reserves (including but not
limited to any emergency, supplemental or other marginal reserve requirements)
applicable to any member bank of the Federal Reserve System in respect of
Eurocurrency Liabilities (or any successor category of liabilities under
Regulation D issued by the Board, as in effect from time to
time).  Such reserve percentages shall include, without limitation,
those imposed pursuant to said Regulation.  The Statutory Reserves
shall be adjusted automatically on and as of the effective date of any change in
such percentage.

       

      “Subsidiary”
shall mean, with respect to any Person (herein referred to as the “parent”), any
corporation, association or other business entity (whether now existing or
hereafter organized) of which at least a majority of the securities or other
ownership interests having ordinary voting power for the election of directors
is, at the time as of which any determination is being made, owned or controlled
by the parent or one or more subsidiaries of the parent or by the parent and one
or more subsidiaries of the parent.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      “Subsidiary
Borrower” and “Subsidiary
Borrowers” shall have the respective meanings set forth in the
Introduction.

       

      “Super-majority
Lenders” shall mean, at any time, both (and not either) (A) each Tranche
A Lender, and (B) Tranche B Lenders holding Loans that, taken together with the
Tranche A Loans, represent at least 66-2/3% of the aggregate principal amount of
the Loans outstanding, or if no Loans are outstanding, Tranche B Lenders having
Commitments that, taken together with the Tranche A Commitments, represent at
least 66-2/3% of the Total Commitment.

       

      “Superpriority
Claim” shall mean a claim against any Borrower in any of the Cases which
is a superpriority administrative expense claim having priority over any or all
administrative expenses of the kind specified in Sections 503(b) or 507(b) of
the Bankruptcy Code.

       

      “Suspension
Period” shall have the meaning set forth in Section
6.5.

       

      “Taxes”
shall have the meaning given such term in Section
2.18.

       

      “Termination
Date” shall mean the earliest to occur of (i) the Maturity Date, (ii) the
Consummation Date, (iii) the filing of a Reorganization Plan that does not
provide for payment of all of the Obligations in full in cash on the
Consummation Date and (iv) the acceleration of the Loans and the termination of
the Total Commitment in accordance with the terms hereof.

       

      “Termination
Event” shall mean (i) a “reportable event”, as such term is described in
Section 4043 of ERISA and the regulations issued thereunder (other than a
“reportable event” not subject to the provision for 30-day notice to the PBGC
under Section 4043 of ERISA or such regulations) or an event described in
Section 4068 of ERISA excluding events described in Section 4043(c)(9) of ERISA
or 29 CFR §§ 2615.21 or 2615.23, or (ii) the withdrawal of any Borrower or any
ERISA Affiliate from a Multiple Employer Plan during a plan year in which it was
a “substantial employer”, as such term is defined in Section 4001(c) of
ERISA, or the incurrence of liability by any Borrower or any ERISA Affiliate
under Section 4064 of ERISA upon the termination of a Multiple Employer Plan, or
(iii) providing notice of intent to terminate a Plan pursuant to Section
4041(c) of ERISA or the treatment of a Plan amendment as a termination under
Section 4041 of ERISA, or (iv) the institution of proceedings to terminate a
Plan by the PBGC under Section 4042 of ERISA, or (v) any other event or
condition (other than the commencement of the Cases and the failure to have made
any contribution accrued as of the Filing Date but not paid) which would
reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
imposition of any liability under Title IV of ERISA (other than for the payment
of premiums to the PBGC).

       

      “Total
Commitment” shall mean, at any time, the sum of the Commitments at such
time.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      “Total
Tranche A Commitment” shall mean, at any time, the sum of the Tranche A
Commitments at such time.

       

      “Total
Tranche B Commitment” shall mean, at any time, the sum of the Tranche B
Commitments at such time.

       

      “Total
Usage” shall mean, at any time, the sum of the outstanding aggregate
principal amount of the Loans plus the aggregate Letter of Credit
Outstandings.

       

      “Tranche A
Commitment” shall mean the Commitment of each Tranche A Lender hereunder
to make Loans and to issue and/or participate in Letters of Credit in the amount
set forth opposite its name on Annex A-1 hereto or as may subsequently be set
forth in the Register from time to time, as the same may be reduced from time to
time pursuant to the terms of this Agreement.

       

       “Tranche A
Lender” shall mean each Lender having a Tranche A
Commitment.

       

      “Tranche
A Usage”
shall mean, at any time, the sum of the outstanding aggregate principal amount
of the Loans plus the aggregate Letter of Credit Outstandings to the extent
attributable to or funded under the Total
Tranche A Commitment.

       

      “Tranche B
Commitment” shall mean the Commitment of each Tranche B Lender hereunder
to make Loans and to issue and/or participate in Letters of Credit in the amount
set forth opposite its name on Annex A-2 hereto or as may subsequently be set
forth in the Register from time to time, as the same may be reduced from time to
time pursuant to the terms of this Agreement.

       

       “Tranche B
Lender” shall mean each Lender having a Tranche B
Commitment.

       

      “Tranche
B Usage”
shall mean, at any time, the sum of the outstanding aggregate principal amount
of the Loans plus the aggregate Letter of Credit Outstandings to the extent
attributable to or funded under the Total
Tranche B Commitment.

       

      “Transferee”
shall have the meaning given such term in Section
2.18.

       

      “Type”
when used in respect of any Loan or Borrowing shall refer to the Rate of
interest by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined.  For purposes hereof, “Rate”
shall mean the Adjusted LIBOR Rate and the Alternate Base Rate.

       

      “Unfunded
Current Liability” shall
mean, with respect to any Pension Plan, the amount, if any, by which the
actuarial present value of the accumulated plan benefits under such Pension Plan
as of the close of its most recent plan year exceeds the fair market value of
the assets allocable thereto, each determined in accordance with Statement of
Financial Accounting Standards No. 35, based upon the actuarial assumptions used
by such Pension Plan’s actuary in the most recent annual valuation of such
Pension Plan.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      “Unused
Total Commitment” shall mean, at any time, (i) the Total Commitment less
(ii) the sum of (a) the aggregate outstanding principal amount of all Loans and
(b) the aggregate Letter of Credit Outstandings.

       

      “Withdrawal
Liability” shall have the meaning given such term under Part I of
Subtitle E of Title IV of ERISA.

       

      “Work-in-Process” shall mean Inventory which
consists of work-in-process including, without limitation, materials other than
Raw Materials, Finished Goods or saleable products, title to which and sole
ownership of which is vested in a Borrower.

       

      SECTION
1.2                  Terms
Generally.  The
definitions in Section
1.1 shall apply equally to both the singular and plural forms of the
terms defined.  Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms.  All
references herein to Sections, Exhibits and Schedules shall be deemed references
to Sections of, and Exhibits and Schedules to, this Agreement unless the context
shall otherwise require.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided, however, that for
purposes of determining compliance with any covenant set forth in Section 6, such terms
shall be construed in accordance with GAAP as in effect on the date of this
Agreement applied on a basis consistent with the application used in the
Borrowers’ audited financial statements referred to in Section
3.4.

       

      SECTION
1.3                  Accounting Terms;
GAAP.  Except as otherwise expressly provided herein, all terms
of an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time; provided that, if the Borrowers notify the
Administrative Agent that the Borrowers request an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrowers that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until  such notice shall have been withdrawn or such
provision  amended in accordance herewith.

       

      SECTION
2.           AMOUNT AND
TERMS OF CREDIT.

       

      SECTION
2.1                  Commitment of the
Lenders.

       

      (a)           Each
Lender severally and not jointly with the other Lenders agrees, upon the terms
and subject to the conditions herein set forth, to make revolving credit loans
(each a “Loan”
and collectively, the “Loans”)
to the Borrowers at any time and from time to time during the period commencing
on the date hereof and ending on the Termination Date (or the earlier date of
termination of the Total Commitment) in an aggregate principal amount not to
exceed, when added to such Lender’s Commitment Percentage of the then aggregate
Letter of Credit Outstandings, the Commitment of such Lender, which Loans may be
repaid and reborrowed in accordance with the provisions of this
Agreement.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      (b)           Each
Borrowing shall be made by the Lenders pro rata in accordance with their
respective Commitments; provided, however, that the
failure of any Lender to make any Loan shall not in itself relieve the other
Lenders of their obligations to lend.

       

      SECTION
2.2                  Availability of Commitment;
Borrowing Base.

       

      (a)            Subject
to the terms, conditions and covenants hereof, the Total Commitment shall be
available to the Borrowers (subject to compliance with the Borrowing Base and
the terms, conditions and covenants in this Agreement).

       

      (b)            Notwithstanding
any other provision of this Agreement to the contrary, Total Usage shall not at
any time exceed the lesser of (x) the Total Commitment (as such Total Commitment
may be reduced from time to time pursuant to the terms of this Agreement) and
(y) the Borrowing Base, and no Loan shall be made or Letter of Credit issued in
violation of the foregoing.

       

      SECTION
2.3                  Letters of
Credit.

       

      (a)           Upon
the terms and subject to the conditions herein set forth, the Borrowers may
request a Fronting Bank, at any time and from time to time after the date hereof
and prior to the Termination Date, to issue, and, subject to the terms and
conditions contained herein, such Fronting Bank shall issue, for the account of
the Borrowers one or more Letters of Credit in support of obligations of the
Borrowers or one or more of the Subsidiaries, provided that no
Letter of Credit shall be issued if after giving effect to such
issuance (i) the aggregate Letter of Credit Outstandings would exceed
$180,000,000, or (ii) the Total Usage would exceed the lesser of (x) the Total
Commitment (as such Total Commitment may be reduced from time to time pursuant
to the terms of this Agreement) and (y) the Borrowing Base.  All
Letters of Credit issued and outstanding under the Prior Agreement as of the
initial extension of credit under this Agreement shall be deemed to be issued
and outstanding under this Agreement and allocated pro rata among the Lenders in
accordance with their Commitment Percentages as of the Closing
Date.

       

      (b)           No
Letter of Credit shall expire later than three hundred sixty-five (365) days
after the Maturity Date, provided that if the
Termination Date shall occur prior to the expiration of any Letter of Credit,
the Borrowers shall, at or prior to the Termination Date, except as the
Administrative Agent may otherwise agree in writing, (i) cause all Letters of
Credit which expire after the Termination Date to be returned to the Fronting
Bank undrawn and marked “canceled” or (ii) if the Borrowers are unable to do so
in whole or in part, either (x) provide a “back-to-back” letter of credit to one
or more Fronting Banks in a form satisfactory to such Fronting Bank and the
Administrative Agent (in their exclusive discretion), issued by a bank
satisfactory to such Fronting Bank and the Administrative Agent (in their
exclusive discretion), in an amount equal to the greater of (A) an amount, as
determined by the Fronting Bank and the Administrative Agent, equal to the face
amount of all outstanding Letters of Credit plus the sum of all projected
contractual obligations to the Administrative Agent, the Fronting Bank and the
Lenders of the Borrowers thereunder through the expiration date(s) of such
Letters of Credit, and (B) 105% of the then undrawn stated amount of all
outstanding Letters of Credit issued by such Fronting Banks and/or (y) deposit
cash in the Letter of Credit Account in an 

       

      
        
          
          

        

        
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      amount
which, together with any amounts then held in the Letter of Credit Account, is
equal to the greater of (A) an amount, as determined by the Fronting Bank and
the Administrative Agent, equal to the face amount of all outstanding Letters of
Credit plus the sum of all projected contractual obligations to the
Administrative Agent, the Fronting Bank and the Lenders of the Borrowers
thereunder through the expiration date(s) of such Letters of Credit, and (B)
105% of the then undrawn stated amount of all Letter of Credit Outstandings as
collateral security for the Borrowers’ reimbursement obligations in connection
therewith, such cash to be promptly remitted to the Borrowers upon the
expiration, cancellation or other termination or satisfaction of such
reimbursement obligations.

       

      (c)           The
Borrowers shall pay to each Fronting Bank, in addition to such other fees and
charges as are specifically provided for in Section 2.21 hereof,
such fees and charges in connection with the issuance and processing of the
Letters of Credit issued by such Fronting Bank as are customarily imposed by
such Fronting Bank from time to time in connection with letter of credit
transactions.

       

      (d)           Drafts
drawn under each Letter of Credit shall be reimbursed by the Borrowers in
Dollars not later than the first Business Day following the date of draw and
shall bear interest from the date of draw until the first Business Day following
the date of draw at a rate per annum equal to (A) the Alternate Base Rate plus
2.00% with respect to draws that constitute Tranche A Usage and (B) the
Alternate Base Rate plus 3.50% with respect to draws that constitute Tranche B
Usage and thereafter until reimbursed in full at a rate per annum equal to (I)
the Alternate Base Rate plus 4.00% with respect to draws that constitute Tranche
A Usage and (II) the Alternate Base Rate plus 5.50% with respect to draws that
constitute Tranche B Usage (computed on the basis of the actual number of days
elapsed over a year of 360 days).  The Borrowers shall effect such
reimbursement (x) if such draw occurs prior to the Termination Date (or the
earlier date of termination of the Total Commitment), in cash or through a
Borrowing of Loans without the satisfaction of the conditions precedent set
forth in Section
4.2 or (y) if such draw occurs on or after the Termination Date (or the
earlier date of termination of the Total Commitment), in cash.  Each
Lender agrees to make the Loans described in clause (x) of the preceding
sentence notwithstanding a failure to satisfy the applicable lending conditions
thereto or the provisions of Section
2.29.

       

      (e)           Immediately
upon the issuance of any Letter of Credit by any Fronting Bank, such Fronting
Bank shall be deemed to have sold to each Lender other than such Fronting Bank
and each such other Lender shall be deemed unconditionally and irrevocably to
have purchased from such Fronting Bank, without recourse or warranty, an
undivided interest and participation, to the extent of such Lender’s Commitment
Percentage, in such Letter of Credit, each drawing thereunder and the
obligations of the Borrowers under this Agreement with respect
thereto.  Upon any change in the Commitments pursuant to Sections 2.10, 2.13, 2.14 or 9.3, it is hereby
agreed that with respect to all Letter of Credit Outstandings, there shall be an
automatic adjustment to the participations hereby created to reflect the new
Commitment Percentages of the assigning and assignee Lenders.  Any
action taken or omitted by a Fronting Bank under or in connection with a Letter
of Credit, if taken or omitted in the absence of gross negligence or willful
misconduct, shall not create for such Fronting Bank any resulting liability to
any other Lender.

       

      
        
          
          

        

        
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      (f)           In
the event that a Fronting Bank makes any payment under any Letter of Credit and
the Borrowers shall not have reimbursed such amount in full to such Fronting
Bank pursuant to this Section, the Fronting Bank shall promptly notify the
Administrative Agent, which shall promptly notify each Lender of such failure,
and each Lender shall promptly and unconditionally pay to the Administrative
Agent for the account of the Fronting Bank the amount of such Lender’s
Commitment Percentage of such unreimbursed payment in Dollars and in same day
funds.  If the Fronting Bank so notifies the Administrative Agent, and
the Administrative Agent so notifies the Lenders prior to 12:00 p.m. (New York
City time) on any Business Day, such Lenders shall make available to the
Fronting Bank such Lender’s Commitment Percentage of the amount of such payment
on such Business Day in same day funds.  If and to the extent such
Lender shall not have so made its Commitment Percentage of the amount of such
payment available to the Fronting Bank, such Lender agrees to pay to such
Fronting Bank, forthwith on demand such amount, together with interest thereon,
for each day from such date until the date such amount is paid to the
Administrative Agent for the account of such Fronting Bank at the Federal Funds
Effective Rate.  The failure of any Lender to make available to the
Fronting Bank its Commitment Percentage of any payment under any Letter of
Credit shall not relieve any other Lender of its obligation hereunder to make
available to the Fronting Bank its Commitment Percentage of any payment under
any Letter of Credit on the date required, as specified above, but no Lender
shall be responsible for the failure of any other Lender to make available to
such Fronting Bank such other Lender’s Commitment Percentage of any such
payment.  Whenever a Fronting Bank receives a payment of a
reimbursement obligation as to which it has received any payments from the
Lenders pursuant to this paragraph, such Fronting Bank shall pay to each Lender
which has paid its Commitment Percentage thereof, in Dollars and in same day
funds, an amount equal to such Lender’s Commitment Percentage
thereof.

       

      (g)           Unless
otherwise requested by the Administrative Agent, each Fronting Bank shall report
in writing to the Administrative Agent (i) on the first Business Day of each
week, the daily activity (set forth by day) in respect of Letters of Credit
during the immediately preceding week, including all issuances, extensions,
amendments and renewals, all expirations and cancellations and all disbursements
and reimbursements, (ii) on or prior to each Business Day on which such Fronting
Bank expects to issue, amend, renew or extend any Letter of Credit, the date of
such issuance, amendment, renewal or extension and the aggregate face amount of
the Letters of Credit to be issued, amended, renewed or extended by it and
outstanding after giving effect to such issuance, amendment, renewal or
extension (and whether the amount thereof changed), it being understood that
such Fronting Bank shall not permit any issuance, renewal, extension or
amendment resulting in an increase in the amount of a Letter of Credit to occur
without first obtaining written confirmation  from the Administrative
Agent that it is then permitted under this Agreement, (iii) on each Business Day
on which such Fronting Bank makes any payment under any Letter of Credit, the
date of such payment and the amount of such payment, (iv) on any Business Day on
which a Borrower fails to reimburse a payment under a Letter of Credit required
to be reimbursed to such Fronting Bank on such day, the date of such failure,
the applicable Borrower and the amount and currency of such Letter of Credit
payment and (v) on any other Business Day, such other information as the
Administrative Agent shall reasonably request.

       

      SECTION
2.4                  Issuance.  Whenever
the Parent Borrower or a Subsidiary Borrower  desire a Fronting Bank
to issue a Letter of Credit, they shall give to such Fronting 

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      Bank
and the Administrative Agent at least three (3) Business Days’ prior written
(including facsimile communication) notice (or such shorter period as may be
agreed upon by the Administrative Agent, the Borrowers and the Fronting Bank)
specifying the date on which the proposed Letter of Credit is to be issued
(which shall be a Business Day), the stated amount of the Letter of Credit so
requested, the expiration date of such Letter of Credit and the name and address
of the beneficiary thereof.

       

      SECTION
2.5                  Nature of Letter of Credit
Obligations Absolute.  The obligations of the Borrowers to
reimburse the Lenders for drawings made under any Letter of Credit shall be
joint and several, unconditional and irrevocable and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including,
without limitation:  (i) any lack of validity or enforceability of any
Letter of Credit; (ii) the existence of any claim, setoff, defense or other
right which any Borrower may have at any time against a beneficiary of any
Letter of Credit or against any of the Lenders, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction;
(iii) any draft, demand, certificate or other document presented under any
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect;
(iv) payment by a Fronting Bank of any Letter of Credit against presentation of
a demand, draft or certificate or other document which does not comply with the
terms of such Letter of Credit; (v) any other circumstance or happening
whatsoever, which is similar to any of the foregoing; or (vi) the fact that any
Event of Default shall have occurred and be continuing.

       

      SECTION
2.6                  Making of
Loans.

       

      (a)           Except
as contemplated by Section 2.11, Loans
shall be either ABR Loans or Eurodollar Loans as the Borrowers may request
subject to and in accordance with this Section, provided that all Loans made
pursuant to the same Borrowing shall, unless otherwise specifically provided
herein, be Loans of the same Type.  Each Lender may fulfill its
Commitment with respect to any Eurodollar Loan or ABR Loan by causing any
lending office of such Lender to make such Loan; provided that any
such use of a lending office shall not affect the obligation of the Borrowers to
repay such Loan in accordance with the terms of this Agreement.  Each
Lender shall, subject to its overall policy considerations, use reasonable
efforts (but shall not be obligated) to select a lending office which will not
result in the payment of increased costs by the Borrowers pursuant to Sections 2.15 or
2.18.  Subject
to the other provisions of this Section and the provisions of Section 2.12,
Borrowings of Loans of more than one Type may be incurred at the same time,
provided that no more than twelve (12) Borrowings of Eurodollar Loans may be
outstanding at any time.  All borrowings outstanding under the Prior
Agreement as of the initial extension of credit under this Agreement shall be
deemed to be outstanding under this Agreement and allocated pro rata among the
Lenders in accordance with their Commitment Percentages as of the Closing
Date.

       

      (b)           The
applicable Borrower shall give the Administrative Agent prior written, facsimile
or telephonic (confirmed promptly in writing) notice of each Borrowing of Loans
hereunder of at least three (3) Business Days for Eurodollar Loans and one (1)
Business Day for ABR Loans (subject, in the case of ABR Loans, to the last
sentence of this Section); such notice shall be irrevocable and shall specify
the amount of the proposed Borrowing (which shall not be less than $5,000,000
for Eurodollar Loans and $1,000,000 for ABR Loans, or any 

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      integral
multiple of $1,000,000 in excess of such minimum amounts) and the date thereof
(which shall be a Business Day) and shall contain disbursement
instructions.  Such notice, to be effective, must be received by the
Administrative Agent not later than 12:00 p.m., New York City time, on the third
Business Day in the case of Eurodollar Loans and the first Business Day in the
case of ABR Loans, preceding the date on which such Borrowing is to be made
except as provided in the last sentence of this Section 2.06(b).  Such
notice shall specify whether the Borrowing then being requested is to be a
Borrowing of ABR Loans or Eurodollar Loans.  If no election is made as
to the Type of Loan, such notice shall be deemed a request for Borrowing of ABR
Loans.  The Administrative Agent shall promptly notify each Lender of
its proportionate share of such Borrowing, the date of such Borrowing, the Type
of Borrowing or Loans being requested and the Interest Period or Interest
Periods applicable thereto, as appropriate.  On the Borrowing date
specified in such notice, each Lender shall make its share of the Borrowing
available at the office of the Administrative Agent at 270 Park Avenue, New
York, New York 10017, no later than 12:00 p.m., New York City time, in
immediately available funds.  Upon receipt of the funds made available
by the Lenders to fund any Borrowing hereunder, the Administrative Agent shall
disburse such funds in the manner specified in the notice of Borrowing delivered
by the Borrowers.  With respect to ABR Loans in an aggregate amount of
up to $3,000,000, the Lenders shall make such Borrowings available to the
Administrative Agent no later than 12:00 p.m., New York City time, in
immediately available funds, and the Administrative Agent shall disburse such
Borrowings in accordance with the applicable Borrower’s instructions consistent
with this Agreement by 3:00 p.m., New York City time, on the same Business Day
that such Borrower gives notice to the Administrative Agent of such Borrowing by
10:00 a.m., New York City time.

       

      SECTION
2.7                  Repayment of Loans and
Unreimbursed Draws; Evidence of Debt.

       

      (a)           The
Borrowers hereby jointly and severally unconditionally promise to pay to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Loan and each unreimbursed draw under all Letters of Credit as
set forth herein.

       

      (b)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the Indebtedness of the Parent Borrower and the Subsidiary
Borrowers to such Lender resulting from each Loan made by such Lender or
participation in each Letter of Credit in which such Lender is participating,
including the amounts of principal and interest payable and paid to such Lender
from time to time hereunder.

       

      (c)           The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from the Parent Borrower or the Subsidiary
Borrowers, as the case may be, to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

       

      (d)           The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrowers
to repay the Loans in accordance with the terms of this Agreement.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      (e)           Any
Lender may request that Loans made by it be evidenced by a promissory
note.  In such event, the Borrowers shall execute and deliver to such
Lender a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) in a form furnished
by the Administrative Agent.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.3) be
represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

       

      SECTION
2.8                  Interest on
Loans.

       

      (a)           Subject
to the provisions of Section 2.9, each ABR
Loan shall bear interest (computed, for ABR Loans wherein the Alternate Base
Rate is determined by reference to the Base CD Rate or the Federal Funds
Effective Rate, on the basis of the actual number of days elapsed over a year of
360 days, and otherwise computed on the basis of the actual number of days
elapsed over a year of 365 days) at a rate per annum equal to (x) the Alternate
Base Rate plus 2.00% with respect to ABR Loans that constitute Tranche A Usage
and (y) the Alternate Base Rate plus 3.50% with respect to ABR Loans that
constitute Tranche B Usage.

       

      (b)           Subject
to the provisions of Section 2.9, each
Eurodollar Loan shall bear interest (computed on the basis of the actual number
of days elapsed over a year of 360 days) at a rate per annum equal, during each
Interest Period applicable thereto, to (x) the Adjusted LIBOR Rate for such
Interest Period in effect for such Borrowing plus 3.00% with respect to
Eurodollar Loans that constitute Tranche A Usage and (y) the Adjusted LIBOR Rate
for such Interest Period in effect for such Borrowing plus 4.50% with respect to
Eurodollar Loans that constitute Tranche B Usage.

       

      (c)           Accrued
interest on all Loans shall be payable in arrears on each Interest Payment Date
applicable thereto, at maturity (whether by acceleration or otherwise), after
such maturity on demand and (with respect to Eurodollar Loans) upon any
repayment or prepayment thereof (on the amount prepaid).

       

      SECTION
2.9                  Default
Interest.  If any Borrower shall default in the payment of the
principal of or interest on any Loan or in the payment of any other amount
becoming due hereunder (including, without limitation, the reimbursement
pursuant to Section
2.3(d) of any draft drawn under a Letter of Credit), whether at stated
maturity, by acceleration or otherwise, such Borrower shall on demand from time
to time pay interest, to the extent permitted by law, on such defaulted amount
up to (but not including) the date of actual payment (after as well as before
judgment) at a rate per annum (computed on the basis of the actual number of
days elapsed over a year of 360 days) equal to 2% above the then applicable
rate.

       

      SECTION
2.10                Optional Termination or
Reduction of Commitment.  Upon at least three (3) Business
Days’ prior written notice to the Administrative Agent, the Borrowers may at any
time in whole permanently terminate, or from time to time in part permanently
reduce, the 

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      Unused
Total Commitment.  Each such reduction or termination, as applicable,
of the Unused Total Commitment shall be in the principal amount of $1,000,000 or
any integral multiple of $1,000,000 in excess thereof.  Any reduction
or termination, as applicable, pursuant to this Section shall be deemed to be a
reduction or termination, as applicable, in the amount of such reduction or
termination of the Total Commitment and shall be applied (x) pro rata to reduce
the applicable Tranche A Commitment of each Tranche A Lender until the Total
Tranche A Commitment is zero and (y) thereafter pro rata to reduce the
applicable Tranche B Commitment of each Tranche B
Lender.  Simultaneously with each reduction or termination, as
applicable, of the Unused Total Commitment, the Borrowers shall pay to the
Administrative Agent for the account of each Lender the Commitment Fee accrued
on the amount of the Commitment of such Lender so terminated or reduced through
the date thereof.

       

      SECTION
2.11                Alternate Rate of
Interest.  In the event, and on each occasion, that on the day
three (3) Business Days prior to the commencement of any Interest Period for a
Eurodollar Loan, the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrowers absent manifest
error) that reasonable means do not exist for ascertaining the applicable
Adjusted LIBOR Rate, the Administrative Agent shall, as soon as practicable
thereafter, give written notice of such determination to the Borrowers and the
Lenders, and any request by the Borrowers for a Borrowing of Eurodollar Loans
(including pursuant to a refinancing with Eurodollar Loans) pursuant to Section 2.6 or 2.12 shall be deemed
a request for a Borrowing of ABR Loans.  After such notice shall have
been given and until the circumstances giving rise to such notice no longer
exist, each request for a Borrowing of Eurodollar Loans shall be deemed to be a
request for a Borrowing of ABR Loans.

       

      SECTION
2.12                Refinancing of
Loans.  The Borrowers shall have the right, at any time, on
three (3) Business Days’ prior irrevocable notice to the Administrative Agent
(which notice, to be effective, must be received by the Administrative Agent not
later than 1:00 p.m., New York City time, on the third Business Day preceding
the date of any refinancing), (x) to refinance (without the satisfaction of the
conditions set forth in Section 4.2 as a
condition to such refinancing) any outstanding Borrowing or Borrowings of Loans
of one Type (or a portion thereof) with a Borrowing of Loans of the other Type
or (y) to continue an outstanding Borrowing of Eurodollar Loans for an
additional Interest Period, subject to the following:

       

      (a)           as
a condition to the refinancing of ABR Loans with Eurodollar Loans and to the
continuation of Eurodollar Loans for an additional Interest Period, no Event of
Default shall have occurred and be continuing at the time of such
refinancing;

       

      (b)           if
less than a full Borrowing of Loans shall be refinanced, such refinancing shall
be made pro rata among the Lenders in accordance with the respective principal
amounts of the Loans comprising such Borrowing held by the Lenders immediately
prior to such refinancing;

       

      (c)           the
aggregate principal amount of Loans being refinanced shall be at least
$5,000,000 or any integral multiple of $1,000,000 in excess thereof, provided that no
partial refinancing of a Borrowing of Eurodollar Loans shall result in the
Eurodollar Loans remaining outstanding pursuant to such Borrowing being less
than $5,000,000 in aggregate principal amount;

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      (d)           each
Lender shall effect each refinancing by applying the proceeds of its new
Eurodollar Loan or ABR Loan, as the case may be, to its Loan being
refinanced;

       

      (e)           the
Interest Period with respect to a Borrowing of Eurodollar Loans effected by a
refinancing or in respect to the Borrowing of Eurodollar Loans being continued
as Eurodollar Loans shall commence on the date of refinancing or the expiration
of the current Interest Period applicable to such continuing Borrowing, as the
case may be;

       

      (f)           a
Borrowing of Eurodollar Loans may be refinanced only on the last day of an
Interest Period applicable thereto; and

       

      (g)           each
request for a refinancing with a Borrowing of Eurodollar Loans which fails to
state an applicable Interest Period shall be deemed to be a request for an
Interest Period of one month.

       

      In
the event that the Parent Borrower or a Subsidiary Borrower, as applicable,
shall not give notice to refinance any Borrowing of Eurodollar Loans, or to
continue such Borrowing as Eurodollar Loans, or shall not be entitled to
refinance or continue such Borrowing as Eurodollar Loans, in each case as
provided above, such Borrowing shall automatically be refinanced with a
Borrowing of ABR Loans at the expiration of the then-current Interest
Period.  The Administrative Agent shall, after it receives notice from
the Parent Borrower or a Subsidiary Borrower, as applicable, promptly give each
Lender notice of any refinancing, in whole or part, of any Loan made by such
Lender.

       

      SECTION
2.13                Mandatory Prepayment;
Commitment Termination.

       

      (a)           If
at any time the aggregate principal amount of the outstanding Loans plus the
aggregate Letter of Credit Outstandings exceeds the lesser of (x) the Total
Commitment and (y) the Borrowing Base, the Borrowers will within one (1)
Business Day (i) prepay the Loans in an amount necessary to cause the aggregate
principal amount of the outstanding Loans plus the aggregate Letter of Credit
Outstandings, including unreimbursed draws, to be equal to or less than the
lesser of (x) the Total Commitment and (y) the Borrowing Base and (ii) if, after
giving effect to the prepayment in full of the Loans, the aggregate Letter of
Credit Outstandings exceeds the lesser of (x) the Total Commitment and (y) the
Borrowing Base, deposit into the Letter of Credit Account an amount equal to
105% of the amount by which the aggregate Letter of Credit Outstandings (net of
the amount of cash held in the Letter of Credit Account) so exceeds the lesser
of (x) the Total Commitment and (y) the Borrowing Base.

       

      (b)           Upon
the receipt of the Net Proceeds by any of the Borrowers or their Subsidiaries
from any Asset Sales, the Borrowers shall, jointly and severally, apply such Net
Proceeds as follows:  first, to repay the
then outstanding Loans that constitute Tranche A Usage; second, to deposit an
amount in the Letter of Credit Account up to 105% of the then Letter of Credit
outstandings that constitute Tranche A Usage; third to repay the
then outstanding Loans that constitute Tranche B Usage; fourth to deposit an
amount in the Letter of Credit Account up to 105% of the then Letter of Credit
Outstandings that constitute Tranche B Usage; and thereafter, such Net
Proceeds may be (I) deposited in the Letter of Credit Account or (II) retained
by the Borrowers and invested in Permitted Investments or used for expenditures
in the ordinary 

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      course
of business (subject to compliance with the terms and conditions of this
Agreement).  The Total Tranche A Commitment and Total Tranche B
Commitment, as applicable, shall be reduced on a pro rata basis by an amount
equal to the sum of (i) the Net Proceeds of the subject Asset Sale required to
be applied to repay the then outstanding Loans under such Tranche pursuant to
preceding sentence, plus (ii) the Net
Proceeds of the subject Asset Sale retained by the Borrowers pursuant to part
(II) of the last clause of the preceding sentence (the reduction on account of
Net Proceeds being retained by the Borrowers to reduce the Total Tranche A
Commitment on a pro rata basis until zero, and then the Total Tranche B
Commitment on a pro rata basis).  Amounts on deposit in the Letter of
Credit Account as of the date of this Agreement shall remain on deposit and
shall be applied in accordance with the terms and conditions of this
Agreement.

       

      (c)           If,
on any date on which Loans are outstanding, Available Cash exceeds $60,000,000,
the Borrowers will provide notice thereof to the Administrative Agent within one
Business Day, and within one Business Day of the date of such notice repay the
Loans as follows: first, the Borrowers
shall repay the then outstanding Loans that constitute Tranche A Usage; and
second, the
Borrowers shall repay the then outstanding Loans that constitute Tranche B Usage
in an amount equal to such excess (or if less, in the amount of all outstanding
Loans).

       

      (d)           Upon
the Termination Date, the Total Commitment shall be terminated in full and the
Borrowers shall pay the Loans in full in cash and, if any Letter of Credit
remains outstanding, comply with Section
2.3(b).

       

      SECTION
2.14                Optional Prepayment of
Loans; Reimbursement of Lenders.

       

      (a)           The
Borrowers shall have the right at any time and from time to time to prepay any
Loans without penalty (except for any breakage costs associated with Eurodollar
Loans), in whole or in part, (x) with respect to Eurodollar Loans, upon at least
three (3) Business Days’ prior written, facsimile or telephonic (confirmed
promptly in writing) notice to the Administrative Agent and (y) with respect to
ABR Loans, upon at least one (1) Business Day’s prior written, facsimile or
telephonic (confirmed promptly in writing) notice to the Administrative Agent;
provided, however, that (i)
each such partial prepayment shall be in integral multiples of $1,000,000, (ii)
no prepayment of Eurodollar Loans shall be permitted pursuant to this Section 2.14(a) other
than on the last day of an Interest Period applicable thereto unless such
prepayment is accompanied by the payment of the amounts described in clause (i)
of the first sentence of Section 2.14(b), and
(iii) no partial prepayment of a Borrowing of Eurodollar Loans shall result in
the aggregate principal amount of the Eurodollar Loans remaining outstanding
pursuant to such Borrowing being less than $5,000,000.  Each notice of
prepayment shall specify the prepayment date, the principal amount of the Loans
to be prepaid and in the case of Eurodollar Loans, the Borrowing or Borrowings
pursuant to which made, shall be irrevocable and shall commit the Parent
Borrower or a Subsidiary Borrower, as the case may be, to prepay such Loan by
the amount and on the date stated therein.  The Administrative Agent
shall, promptly after receiving notice from the Parent Borrower or a Subsidiary
Borrower, as the case may be, hereunder, notify each Lender of the principal
amount of the Loans held by such Lender which are to be prepaid, the prepayment
date and the manner of application of the prepayment.  If no Event of
Default is then in existence, such 

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      prepayments
shall be applied pro rata among the Total Commitment.  If an Event of
Default has occurred and is continuing, such prepayment shall be applied as
follows: first, to repay the then outstanding Loans that constitute Tranche A
Usage; and second, to repay the then outstanding Loans that constitute Tranche B
Usage.

       

      (b)           The
Borrowers shall reimburse each Lender on demand for any loss incurred or to be
incurred by it in the reemployment of the funds released (i) resulting from any
prepayment (for any reason whatsoever, including, without limitation,
refinancing with ABR Loans) of any Eurodollar Loan required or permitted under
this Agreement, if such Loan is prepaid other than on the last day of the
Interest Period for such Loan (including, without limitation, any such
prepayment in connection with the syndication of the credit facility evidenced
by this Agreement) or (ii) in the event that after the Borrowers deliver a
notice of Borrowing under Section 2.6 in
respect of Eurodollar Loans, such Loans are not made on the first day of the
Interest Period specified in such notice of Borrowing for any reason other than
a breach by such Lender of its obligations hereunder.  Such loss shall
be the amount as reasonably determined by such Lender as the excess, if any, of
(A) the amount of interest which would have accrued to such Lender on the amount
so paid or not borrowed at a rate of interest equal to the Adjusted LIBOR Rate
for such Loan, for the period from the date of such payment or failure to borrow
to the last day (x) in the case of a payment or refinancing with ABR Loans other
than on the last day of the Interest Period for such Loan, of the then current
Interest Period for such Loan, or (y) in the case of such failure to borrow, of
the Interest Period for such Loan which would have commenced on the date of such
failure to borrow, over (B) the amount of interest which would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the London interbank market.  Each Lender
shall deliver to the Borrowers from time to time one or more certificates
setting forth the amount of such loss as determined by such Lender.

       

      (c)           In
the event the Parent Borrower or a Subsidiary Borrower, as the case may be,
fails to prepay any Loan on the date specified in any prepayment notice
delivered pursuant to Section 2.14(a), the
Parent Borrower or the applicable Subsidiary Borrower, as the case may be, on
demand by any Lender shall pay to the Administrative Agent for the account of
such Lender any amounts required to compensate such Lender for any loss incurred
by such Lender as a result of such failure to prepay, including, without
limitation, any loss, cost or expenses incurred by reason of the acquisition of
deposits or other funds by such Lender to fulfill deposit obligations incurred
in anticipation of such prepayment, but without duplication of any amounts paid
under Section 2.14(b).  Each
Lender shall deliver to the Parent Borrower or the applicable Subsidiary
Borrower, as the case may be, from time to time one or more certificates setting
forth the amount of such loss as determined by such Lender.

       

      (d)           Subject
in all cases to the provisions of this Agreement setting forth the relative
priority and order of application of payments among Tranche A Lenders and
Tranche B Lenders, any partial prepayment of the Loans by the Parent Borrower or
a Subsidiary Borrower, as the case may be, pursuant to Sections 2.13 or
2.14 shall be
applied as specified by the Parent Borrower or the applicable Subsidiary
Borrower, as the case may be, or, in the absence of such specification, as
determined by the Administrative Agent, provided that in the
latter case no Eurodollar Loans shall be prepaid pursuant to Section 2.13 to the
extent that such Loan has an Interest Period ending after the required date of
prepayment unless and until all outstanding ABR Loans and Eurodollar Loans with
Interest Periods ending on such date have been repaid in full (subject to the
provisions of this Agreement setting forth the relative priority and order of
application of payments among Tranche A Lenders and Tranche B
Lenders).

       

      
        
          
          

        

        
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      SECTION
2.15                Reserve Requirements; Change
in Circumstances.

       

      (a)           Notwithstanding
any other provision herein, if after the date of this Agreement any change in
applicable law or regulation or in the interpretation or administration thereof
by any Governmental Authority charged with the interpretation or administration
thereof (whether or not having the force of law) shall change the basis of
taxation of payments to any Lender of the principal of or interest on any
Eurodollar Loan made by such Lender or any fees or other amounts payable
hereunder (other than changes in respect of Taxes, Other Taxes and taxes imposed
on, or measured by, the net income or overall gross receipts or franchise taxes
of such Lender by the jurisdiction in which such Lender has its principal office
or in which the applicable lending office for such Eurodollar Loan is located or
by any political subdivision or taxing authority therein, or by any other
jurisdiction or by any political subdivision or taxing authority therein other
than a jurisdiction in which such Lender would not be subject to tax but for the
execution and performance of this Agreement), or shall impose, modify or deem
applicable any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of or credit extended by such Lender
(except any such reserve requirement which is reflected in the Adjusted LIBOR
Rate) or shall impose on such Lender or the London interbank market any other
condition affecting this Agreement or the Eurodollar Loans made by such Lender,
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan or to reduce the amount of
any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise) by an amount deemed by such Lender to be material, then
the Borrowers will pay to such Lender in accordance with paragraph (c) below
such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

       

      (b)           If
any Lender shall have determined that the adoption or effectiveness after the
date hereof of any law, rule, regulation or guideline regarding capital
adequacy, or any change in any of the foregoing or in the interpretation or
administration of any of the foregoing by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or any lending office of such Lender) or
any Lender’s holding company with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender’s capital or on the capital of such Lender’s holding
company, if any, as a consequence of this Agreement, the Loans made by such
Lender pursuant hereto, such Lender’s Commitment hereunder or the issuance of,
or participation in, any Letter of Credit by such Lender to a level below that
which such Lender or such Lender’s holding company could have achieved but for
such adoption, change or compliance (taking into account Lender’s policies and
the policies of such Lender’s holding company with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time the
Borrowers shall pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction
suffered.

       

      
        
          
          

        

        
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      (c)           A
certificate of each Lender setting forth such amount or amounts as shall be
necessary to compensate such Lender or its holding company as specified in
paragraph (a) or (b) above, as the case may be, shall be delivered to the
Borrowers and shall be conclusive absent manifest error.  The
Borrowers shall pay each Lender the amount shown as due on any such certificate
delivered to it within ten (10) days after its receipt of the
same.  Any Lender receiving any such payment shall promptly make a
refund thereof to the Borrowers if the law, regulation, guideline or change in
circumstances giving rise to such payment is subsequently deemed or held to be
invalid or inapplicable.

       

      (d)           Failure
on the part of any Lender to demand compensation for any increased costs or
reduction in amounts received or receivable or reduction in return on capital
with respect to any period shall not constitute a waiver of such Lender’s right
to demand compensation with respect to such period or any other
period.  The protection of this Section shall be available to each
Lender regardless of any possible contention of the invalidity or
inapplicability of the law, rule, regulation, guideline or other change or
condition which shall have occurred or been imposed.

       

      SECTION
2.16                Change in
Legality.

       

      (a)           Notwithstanding
anything to the contrary contained elsewhere in this Agreement, if (x) any
change after the date of this Agreement in any law or regulation or in the
interpretation thereof by any Governmental Authority charged with the
administration thereof shall make it unlawful for a Lender to make or maintain a
Eurodollar Loan or to give effect to its obligations as contemplated hereby with
respect to a Eurodollar Loan or (y) at any time any Lender determines that the
making or continuance of any of its Eurodollar Loans has become impracticable as
a result of a contingency occurring after the date hereof which adversely
affects the London interbank market or the position of such Lender in such
market, then, by written notice to the Borrowers, such Lender may (i) declare
that Eurodollar Loans will not thereafter be made by such Lender hereunder,
whereupon any request by the Borrowers for a Eurodollar Borrowing shall, as to
such Lender only, be deemed a request for an ABR Loan unless such declaration
shall be subsequently withdrawn; and (ii) require that all outstanding
Eurodollar Loans made by it be converted to ABR Loans, in which event all such
Eurodollar Loans shall be automatically converted to ABR Loans as of the
effective date of such notice as provided in paragraph (b) below.  In
the event any Lender shall exercise its rights under clause (i) or (ii) of this
paragraph (a), all payments and prepayments of principal which would otherwise
have been applied to repay the Eurodollar Loans that would have been made by
such Lender or the converted Eurodollar Loans of such Lender shall instead be
applied to repay the ABR Loans made by such Lender in lieu of, or resulting from
the conversion of, such Eurodollar Loans.

       

      (b)           For
purposes of this Section 2.16, a
notice to the Borrowers by any Lender pursuant to paragraph (a) above shall be
effective, if lawful, and if any Eurodollar Loans shall then be outstanding, on
the last day of the then-current Interest Period, otherwise, such notice shall
be effective on the date of receipt by the Borrowers.

       

      SECTION
2.17                Pro Rata Treatment,
etc.
All payments and repayments of principal and interest in respect of the Loans
(except as provided in Sections 2.13, 2.14, 2.15, 2.16 and 7.1) shall be made
pro rata among the Lenders in accordance with the then outstanding principal

       

      
        
          
          

        

        
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      amount
of the Loans and/or participations in Letter of Credit Outstandings hereunder,
all payments of Letter of Credit Fees (other than those payable to a Fronting
Bank) for Letters of Credit that constitute Tranche A Usage shall be made pro
rata among the Tranche A Lenders in accordance with their Tranche A Commitments,
and all payments of Letter of Credit Fees (other than those payable to a
Fronting Bank) for Letters of Credit that constitute Tranche B Usage shall be
made pro rata among the Tranche B Lenders in accordance with their Tranche B
Commitments.  All payments of Commitment Fees shall be made pro rata
among the Lenders in accordance with their Commitments.  All payments
by the Borrowers hereunder shall be (i) except as otherwise provided in Section 2.18, net of
any tax applicable to the Borrowers and (ii) made in Dollars in immediately
available funds, without defense, setoff or counterclaim and free of any
restriction or condition, at the office of the Administrative Agent by 12:00
p.m., New York City time, on the date on which such payment shall be
due.  Interest in respect of any Loan hereunder shall accrue from and
including the date of such Loan to but excluding the date on which such Loan is
paid in full or converted to a Loan of a different Type.

       

      SECTION
2.18                Taxes. 

       

      (a)           Except
as otherwise provided in this Section 2.18, any and
all payments by the Borrowers hereunder shall be made free and clear of and
without deduction for any and all current or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding (i) taxes imposed on or measured by the net income, net profit or
overall gross receipts of the Administrative Agent or any Lender (or any
transferee or assignee thereof, including a participation holder (any such
entity being called a “Transferee”))
and franchise taxes imposed on the Administrative Agent or any Lender (or
Transferee) by the United States or any jurisdiction under the laws of which the
Administrative Agent or any such Lender (or Transferee) is organized or in which
the applicable lending office of any such Lender (or Transferee) or applicable
office of the Administrative Agent, is located or any political subdivision
thereof or by any other jurisdiction or by any political subdivision or taxing
authority therein other than a jurisdiction in which the Administrative Agent or
such Lender (or Transferee) would not be subject to tax but for the execution
and performance of this Agreement and (ii) taxes, levies, imposts, deductions,
charges or withholdings (“Amounts”)
with respect to payments hereunder to a Lender (or Transferee) or the
Administrative Agent in accordance with laws in effect on the later of the date
of this Agreement and the date such Lender (or Transferee) or the Administrative
Agent becomes a Lender (or Transferee or Administrative Agent, as the case may
be) but not excluding, with respect to such Lender (or Transferee) or the
Administrative Agent, any increase in such Amounts solely as a result of any
change in such laws occurring after such later date or any Amounts that would
not have been imposed but for actions (other than actions contemplated by this
Agreement) taken by the Borrowers after such later date (all such nonexcluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as “Taxes”).  If
the Borrowers shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder to the Lenders (or any Transferee) or the
Administrative Agent, (i) the sum payable shall be increased by the amount
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) such Lender (or
Transferee) or the Administrative Agent (as the case may be) shall receive an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrowers shall make such deductions and (iii) the Borrowers shall pay
the full amount deducted to the relevant taxing authority or other Governmental
Authority in accordance with applicable law.

       

      
        
          
          

        

        
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      (b)           In
addition, the Borrowers agree to pay any current or future stamp or documentary
taxes or any other excise or property taxes, charges, assessments or similar
levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement or any
other Loan Document (hereinafter referred to as “Other
Taxes”).

       

      (c)           The
Borrowers will indemnify each Lender (or Transferee) and the Administrative
Agent for the full amount of Taxes and Other Taxes paid by such Lender (or
Transferee) or the Administrative Agent, as the case may be, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted by the relevant taxing authority or other Governmental
Authority.  Such indemnification shall be made within thirty (30) days
after the date any Lender (or Transferee) or the Administrative Agent, as the
case may be, makes written demand therefor.  If a Lender (or
Transferee) or the Administrative Agent shall become aware that it is entitled
to receive a refund in respect of Taxes or Other Taxes as to which it has been
indemnified by the Borrowers pursuant to this Section, it shall promptly notify
the Borrowers of the availability of such refund and shall, within thirty (30)
days after receipt of a request by the Borrowers, apply for such refund at the
Borrowers’ expense.  If any Lender (or Transferee) or the
Administrative Agent receives a refund in respect of any Taxes or Other Taxes as
to which it has been indemnified by the Borrowers pursuant to this Section, it
shall promptly notify the Borrowers of such refund and shall, within thirty (30)
days after receipt of a request by the Borrowers (or promptly upon receipt, if
the Borrowers have requested application for such refund pursuant hereto), repay
such refund to the Borrowers (to the extent of amounts that have been paid by
the Borrowers under this Section with respect to such refund plus interest that
is received by the Lender (or Transferee) or the Administrative Agent as part of
the refund), net of all out-of-pocket expenses of such Lender (or Transferee) or
the Administrative Agent and without additional interest thereon; provided that the
Borrowers, upon the request of such Lender (or Transferee) or the Administrative
Agent, agree to return such refund (plus penalties, interest or other charges)
to such Lender (or Transferee) or the Administrative Agent in the event such
Lender (or Transferee) or the Administrative Agent is required to repay such
refund.  Nothing contained in this sub-Section (c) shall require any
Lender (or Transferee) or the Administrative Agent to make available any of its
tax returns (or any other information relating to its taxes that it deems to be
confidential).

       

      (d)           Within
thirty (30) days after the date of any payment of Taxes or Other Taxes withheld
by the Borrowers in respect of any payment to any Lender (or Transferee) or the
Administrative Agent, the Borrowers will furnish to the Administrative Agent, at
its address referred to on the signature pages hereof, the original or a
certified copy of a receipt evidencing payment thereof.

       

      (e)           Without
prejudice to the survival of any other agreement contained herein, the
agreements and obligations contained in this Section shall survive the payment
in full of the principal of and interest on all Loans made
hereunder.

       

      
        
          
          

        

        
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      (f)           Each
Lender (and Transferee) and the Administrative Agent shall, if not a United
States Person (as such term is defined in Section 7701(a)(30) of the Code), on
or prior to the Closing Date (in the case of each Lender listed on the signature
pages hereof on the Closing Date) or on or prior to the date of the Assignment
and Acceptance pursuant to which it becomes a Lender (in the case of each other
Lender), deliver to the Borrowers and the Administrative Agent such
certificates, documents and other evidence, as required by the Code or Treasury
Regulations issued pursuant thereto, including two original copies of (A)
Internal Revenue Service Form W-9 (unless such Lender (or Transferee) or the
Administrative Agent is an “exempt recipient” as defined in Treasury Regulations
Section 1.6049-4(c) for which no withholding is required) and two original
copies of (B) Internal Revenue Service Forms 1001, 4224, W-8BEN or W-8ECI and
any other certificate or statement of exemption required by Treasury Regulation
Section 1.1441-1, 1.1441-4 or 1.1441-6(c) or any subsequent version thereof or
successors thereto, properly completed and duly executed by such Lender (or
Transferee) or the Administrative Agent to establish that such payment is (i)
not subject to United States Federal withholding tax under the Code because such
payment is effectively connected with the conduct by such Lender (or Transferee)
or the Administrative Agent of a trade or business in the United States or (ii)
totally exempt from United States Federal withholding tax or subject to a
reduced rate of such tax under a provision of an applicable tax
treaty.  Unless the Borrowers and the Administrative Agent have
received forms or other documents satisfactory to them indicating that such
payments hereunder are not subject to United States Federal withholding tax or
are subject to such tax at a rate reduced by an applicable tax treaty, the
Borrowers or the Administrative Agent shall withhold taxes from such payments at
the applicable statutory rate.

       

      (g)           The
Borrowers shall not be required to pay any additional amounts to any Lender (or
Transferee) or the Administrative Agent in respect of United States Federal
withholding tax pursuant to sub- Section(a) above if the obligation to pay such
additional amounts would not have arisen but for a failure by such Lender (or
Transferee) or the Administrative Agent to comply with the provisions of sub-
Section(f) above.

       

      (h)           Any
Lender (or Transferee) or the Administrative Agent claiming any additional
amounts payable pursuant to this Section 2.18 shall
use reasonable efforts (consistent with legal and regulatory restrictions) to
file any certificate or document requested by the Borrowers or to change the
jurisdiction of its applicable lending office if the making of such a filing or
change would avoid the need for or reduce the amount of any such additional
amounts that may thereafter accrue and would not, in the sole determination of
such Lender (or Transferee) or the Administrative Agent, be otherwise materially
disadvantageous to such Lender (or Transferee) or the Administrative
Agent.

       

      SECTION
2.19                Certain
Fees.  The Borrowers shall pay to the Administrative Agent, for
the respective accounts of the Administrative Agent and the Lenders, the fees
set forth in those certain fee letters dated September 20, 2004, July 25, 2006,
and April 17, 2008 among the Administrative Agent, J.P. Morgan Securities Inc.
and the Borrowers at the times set forth therein.

       

      SECTION
2.20                Commitment
Fee.  The
Borrowers shall pay to the Lenders a commitment fee (the “Commitment
Fee”) for the period commencing on the date the 

       

      
        
          
          

        

        
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      Commitment
Letter was executed to the Termination Date or the earlier date of termination
of the Commitment calculated (on the basis of the actual number of days elapsed
over a year of 360 days) at a rate equal to the Commitment Fee Percentage on the
average daily Unused Total Commitment during the preceding
quarter.  The issuance of Letters of Credit shall be treated as usage
of the Commitment.  Such Commitment Fee, to the extent then accrued,
shall be payable (x) monthly, in arrears, three (3) Business Days after the last
calendar day of each month, (y) on the Termination Date and (z) as provided in
Section 2.10
hereof, upon any reduction or termination in whole or in part of the Total
Commitment.

       

      SECTION
2.21                Letter of Credit
Fees.  The
Borrowers shall pay with respect to each Letter of Credit (i) to the
Administrative Agent on behalf of the Lenders a fee calculated (from the Closing
Date for those Letters of Credit issued and outstanding under the Prior
Agreement as of the Closing Date or otherwise when issued on the basis of the
actual number of days elapsed over a year of 360 days) at a rate equal to (A)
3.00% per annum on the undrawn stated amount thereof that constitutes Tranche A
Usage for the account of the Tranche A Lenders and (B) 4.50% per annum on the
undrawn stated amount thereof that constitutes Tranche B Usage for the account
of the Tranche B Lenders, and (ii) to the Fronting Bank such Fronting Bank’s
customary fees for issuance, amendments and processing referred to in Section
2.3.  In addition, the Borrowers agree to pay each Fronting
Bank for its account a fronting fee in respect of each Letter of Credit issued
by such Fronting Bank, for the period from the Closing Date for those Letters of
Credit issued and outstanding under the Prior Agreement as of the Closing Date
or otherwise when issued to and including the date of termination of such Letter
of Credit, computed at the rate set forth in the fee letter dated September 20,
2004 among the Administrative Agent, J.P. Morgan Securities Inc. and the
Borrowers, or, if the Fronting Bank is a bank other than JPMCB, as separately
agreed by the Borrowers and such Fronting Bank, and payable at times to be
determined by such Fronting Bank, the Borrowers and the Administrative
Agent.  Accrued fees described in clause (i) of the first sentence of
this paragraph in respect of each Letter of Credit shall be due and payable
monthly in arrears three (3) Business Days after the last calendar day of each
month and on the Termination Date, or such earlier date as the Total Commitment
is terminated.  Accrued fees described in clause (ii) of the first
sentence of this paragraph in respect of each Letter of Credit shall be payable
at times to be determined by the Fronting Bank, the Borrowers and the
Administrative Agent.

       

      SECTION
2.22                Nature of
Fees.
All Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for the respective accounts of the Administrative Agent and
the Lenders, as provided herein and in the letters described in Sections 2.19
and 2.21.  Once
paid, none of the Fees shall be refundable under any circumstances.

       

      SECTION
2.23                Priority and
Liens.

       

      (a)           Each
of the Borrowers hereby covenants, represents and warrants that, upon entry of
the Amendment Order, the Obligations of the Borrowers hereunder and under the
Loan Documents and in respect of Indebtedness permitted by Section 6.3(v): (i)
pursuant to Section 364(c)(1) of the Bankruptcy Code, shall at all times
constitute an allowed Superpriority Claim; (ii) pursuant to Section 364(c)(2) of
the Bankruptcy Code, shall at all times be secured by a perfected first priority
Lien on all unencumbered property of the Borrowers and on all cash maintained in
the Letter of Credit Account and any direct investments of the funds contained

      
        
          
          

        

        
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      therein,
provided that
following the Termination Date, amounts in the Letter of Credit Account shall
not be subject to the Carve-Out; (iii) pursuant to Section 364(c)(3) of the
Bankruptcy Code, shall be secured by a perfected Lien upon all property of the
Borrowers that is subject to valid and perfected Liens in existence on the
Filing Date or that is subject to valid Liens in existence on the Filing Date
that are perfected subsequent to the Filing Date as permitted by Section 546(b)
of the Bankruptcy Code; and in addition, (iv) pursuant to Section 364(d)(1) of
the Bankruptcy Code and other than as expressly set forth in the Orders, be
secured by a perfected first priority, senior priming Lien on all of the
property of the Borrowers (including, without limitation, inventory,
receivables, rights under license agreements, and property, plant and equipment)
that is subject to the existing liens which secure (x) the obligations of the
Parent Borrower and certain of the Subsidiary Borrowers under or in connection
with the Pre-Petition Credit Agreement, and (y) other obligations or
indebtedness of the Borrowers pursuant to other agreements in an aggregate
amount in excess of $2,500,000 (collectively, the “Primed
Liens”), which
Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior Liens to be granted to the Administrative Agent,
which senior priming Liens in favor of the Administrative Agent shall also prime
any Liens granted after the commencement of the Cases to provide adequate
protection Liens in respect of any of the Primed Liens but shall not prime
Liens, if any, to the extent such Liens secure obligations (other than
obligations under the Pre-Petition Credit Agreement) in an aggregate amount less
than or equal to $2,500,000; subject in each case only to (x) in the event of
the occurrence and during the continuance of an Event of Default or an event
that would constitute an Event of Default with the giving of notice or lapse of
time or both (a “Default”),
the payment of allowed and unpaid professional fees and disbursements incurred
by the Borrowers and any statutory committees appointed in the Cases in an
aggregate amount not in excess of $3,000,000 (plus the amount set forth in the
most recent Borrowing Base Certificate delivered by the Borrowers to the
Administrative Agent of then unpaid professional fees and expenses incurred
prior to the occurrence of a Default or an Event of Default to the extent that
such unpaid fees and expenses are subsequently allowed by the Bankruptcy Court),
and (y) the payment of fees pursuant to 28 U.S.C. § 1930 and to the Clerk of the
Bankruptcy Court (collectively, the “Carve-Out”),
provided that
no portion of the Carve-Out shall be utilized for the payment of professional
fees and disbursements incurred in connection with any challenge to the amount,
extent, priority, validity, perfection or enforcement of the Indebtedness of the
Borrowers owed with respect to the parties primed by the priming Liens or to the
collateral securing such Indebtedness or any other action against such
parties.  Amounts in the Letter of Credit Account shall not be subject
to the Carve-Out.  By execution hereof, the Borrowers hereby consent
to the priming Liens referenced in clause (iv) above.  Notwithstanding
the foregoing, so long as no Default or Event of Default shall have occurred and
be continuing, the Borrowers shall be permitted to pay compensation and
reimbursement of expenses allowed and payable under 11 U.S.C. §§ 328, 330 and
331, as the same may be due and payable, and any compensation and expenses
previously paid, or accrued but unpaid, prior to the occurrence of such Default
or Event of Default shall not reduce the Carve-Out.

       

      (b)           Subject
to the priorities set forth in subsection (a) above and to the Carve-Out, as to
all real property the title to which is held by a Borrower, or the possession of
which is held by a Borrower pursuant to leasehold interest, the Parent Borrower
and each of the Subsidiary Borrowers hereby assign and convey as security, grant
a security interest in, hypothecate, mortgage, pledge and set over unto the
Administrative Agent on behalf of the Lenders all of the right, title and
interest of the Borrowers, in all of such owned real property and 

      
        
          
          

        

        
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      in
all such leasehold interests, together in each case with all of the right, title
and interest of the Borrowers in and to all buildings, improvements, and
fixtures related thereto, any lease or sublease thereof, all general intangibles
relating thereto and all proceeds thereof.  The Parent Borrower and
each of the Subsidiary Borrowers acknowledge that, pursuant to the Orders, the
Liens in favor of the Administrative Agent on behalf of the Lenders in all of
such real property and leasehold instruments of the Borrowers shall be perfected
without the recordation of any instruments of mortgage or
assignment.  The Parent Borrower and each of the Subsidiary Borrowers
further agree that, upon the request of the Administrative Agent, in the
exercise of its business judgment, the Parent Borrower and each of the
Subsidiary Borrowers shall enter into separate fee mortgages in recordable form
with respect to such properties on terms satisfactory to the Administrative
Agent.

       

      (c)            To
the extent any Borrower makes aggregate payments to the Lenders in excess of the
aggregate amount of all Loans received by such Borrower from the Lenders after
the commencement of the Cases, then such Borrower, after the payment in full of
all obligations of the Borrowers in respect of the Commitment and the
termination of the Commitment, shall be entitled to a claim under Section
364(c)(1) of the Bankruptcy Code against each other Borrower, in such amount as
may be determined by the Bankruptcy Court taking into account the relative
benefits received by each such person, and such claims shall be deemed to be
subordinate and junior in all respects to the superpriority claims of the
Lenders and the superpriority claims granted as adequate protection to the
Primed Parties.

       

      SECTION
2.24                Use of Cash
Collateral.  Notwithstanding
anything to the contrary contained herein, neither the Parent Borrower nor any
Subsidiary Borrower shall be permitted to request a Borrowing under Section 2.6 unless
the Borrowers shall at that time have the use of all cash collateral subject to
the Orders for the purposes described in Section
3.10.

       

      SECTION
2.25                Right of
Set-Off.  Subject
to the provisions of Section 7.1, upon the
occurrence and during the continuance of any Event of Default, the
Administrative Agent and each Lender is hereby authorized at any time and from
time to time, to the fullest extent permitted by law and without further order
of or application to the Bankruptcy Court, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other Indebtedness at any time owing by the Administrative Agent and
each such Lender to or for the credit or the account of any Borrower against any
and all of the Obligations of such Borrower now or hereafter existing under the
Loan Documents, irrespective of whether or not such Lender shall have made any
demand under any Loan Document and although such obligations may not have been
accelerated.  Each Lender and the Administrative Agent agrees promptly
to notify the Borrowers after any such set-off and application made by such
Lender or by the Administrative Agent, as the case may be, provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender and the Administrative Agent
under this Section are in addition to other rights and remedies which such
Lender and the Administrative Agent may have upon the occurrence and during the
continuance of any Event of Default.

       

      SECTION
2.26                Security Interest in Letter
of Credit Account.  Pursuant
to Section 364(c)(2) of the Bankruptcy Code, the Borrowers hereby assign
and pledge to the Administrative Agent, for its benefit and for the ratable
benefit of the Lenders, and hereby grant 

      
        
          
          

        

        
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      to
the Administrative Agent, for its benefit and for the ratable benefit of the
Lenders, a first priority security interest, senior to all other Liens, if any,
in all of the Borrowers’ right, title and interest in and to the Letter of
Credit Account and any direct investment of the funds contained
therein.  Cash held in the Letter of Credit Account shall not be
available for use by the Borrowers, whether pursuant to Section 363 of the
Bankruptcy Code or otherwise.  This section is subject in all cases to
the provisions of this Agreement setting forth the relative priority and order
of application of payments among the Tranche A Lenders and the Tranche B
Lenders.

       

      SECTION
2.27                Payment of
Obligations.  Subject
to the provisions of Section 7.1, upon the
maturity (whether by acceleration or otherwise) of any of the Obligations under
this Agreement or any of the other Loan Documents of the Borrowers, the Lenders
shall be entitled to immediate payment of such Obligations without further
application to or order of the Bankruptcy Court.  The Parent Borrower
and each of the Subsidiary Borrowers shall be jointly and severally liable for
payment of any Obligations under this Agreement or any of the other Loan
Documents.

       

      SECTION
2.28                No Discharge; Survival of
Claims.  Each
of the Borrowers agrees that (i) its obligations hereunder shall not be
discharged by the entry of an order confirming a Reorganization Plan (and each
of the Borrowers, pursuant to Section 1141(d)(4) of the Bankruptcy Code, hereby
waives any such discharge) and (ii) the Superpriority Claim granted to the
Administrative Agent and the Lenders pursuant to the Orders and described in
Section 2.23
shall not be affected in any manner by the entry of an order confirming a Plan
of Reorganization.

       

      SECTION
2.29                Replacement of Certain
Lenders.  In
the event a Lender (“Affected
Lender”) shall have:  (i) failed to fund its Commitment
Percentage of any Loan requested by the Borrowers or to fund its Commitment
Percentage of any unreimbursed payment made by the Fronting Bank, which such
Lender is obligated to fund under the terms of this Agreement and which failure
has not been cured, (ii) requested compensation from the Borrowers under Section 2.15
with respect to increased costs or capital or under Section 2.18 to
recover Taxes, Other Taxes or other additional costs incurred by such Lender
which, in any case, are not being incurred generally by the other Lenders, or
(iii) delivered a notice pursuant to Section 2.16 claiming
that such Lender is unable to extend Eurodollar Loans to the Borrowers for
reasons not generally applicable to the other Lenders, then, in any case, the
Borrowers or the Administrative Agent may make written demand on such Affected
Lender (with a copy to the Administrative Agent in the case of a demand by the
Borrowers and a copy to the Borrowers in the case of a demand by the
Administrative Agent) for the Affected Lender to assign, and such Affected
Lender shall use commercially reasonable efforts to assign pursuant to one or
more duly executed Assignments and Acceptances five (5) Business Days after the
date of such demand, to one or more financial institutions that comply with the
provisions of Section
9.3 which the Borrowers or the Administrative Agent, as the case may be,
shall have engaged for such purpose (“Replacement
Lender”), all of such Affected Lender’s rights and obligations under this
Agreement and the other Loan Documents (including, without limitation, its
Commitment, all Loans owing to it, all of its participation interests in
existing Letters of Credit, and its obligation to participate in additional
Letters of Credit hereunder) in accordance with Section
9.3.  The Administrative Agent agrees, upon the occurrence of
such events with respect to an Affected Lender and upon the written request of
the Borrowers, to use its reasonable efforts to obtain the Commitments from one
or more financial institutions to act as a Replacement Lender.  The

      
        
          
          

        

        
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      Administrative
Agent is authorized to execute one or more of such Assignments and Acceptances
as attorney-in-fact for any Affected Lender failing to execute and deliver the
same within five (5) Business Days after the date of such
demand.  Further, with respect to such assignment the Affected Lender
shall have concurrently received, in cash, all amounts due and owing to the
Affected Lender hereunder or under any other Loan Document, including, without
limitation, the aggregate outstanding principal amount of the Loans owed to such
Lender, together with accrued interest thereon through the date of such
assignment, amounts payable under Section 2.15 with
respect to such Affected Lender and compensation payable under Section 2.20 in the
event of any replacement of any Affected Lender under clause (ii) or clause
(iii) of this Section
2.29; provided that upon
such Affected Lender’s replacement, such Affected Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.15,
9.5 and 9.6, as well as to
any fees accrued for its account hereunder and not yet paid, and shall continue
to be obligated under Section 8.6 with
respect to losses, obligations, liabilities, damages, penalties, actions,
judgments, costs, expenses or disbursements for matters which occurred prior to
the date the Affected Lender is replaced.

       

      SECTION
3.            REPRESENTATIONS
AND WARRANTIES

       

      In
order to induce the Lenders to make Loans and issue and/or participate in
Letters of Credit hereunder, the Parent Borrower and each of the Subsidiary
Borrowers, jointly and severally, represent and warrant as follows:

       

      SECTION
3.1                  Organization and
Authority.  Each of the Borrowers (i) is duly organized,
validly existing and in good standing under the law of its jurisdiction of
organization; (ii) is duly qualified to do business and in good standing in each
jurisdiction in which the failure to so qualify would have a Material Adverse
Effect; (iii) subject to the entry by the Bankruptcy Court of the Amendment
Order, has the requisite power and authority to effect the transactions
contemplated hereby, and by the other Loan Documents to which it is a party, and
(iv) subject to the entry by the Bankruptcy Court of the Amendment Order, has
all requisite power and authority and the legal right to own and operate its
properties, and to conduct its business as now or currently proposed to be
conducted.

       

      SECTION
3.2                  Due
Execution.  Upon the entry by the Bankruptcy Court of the
Amendment Order, the execution, delivery and performance by each of the
Borrowers of each of the Loan Documents to which it is a party, including,
without limitation, the grant and pledge by each of the Borrowers of the
security interests granted by the Security and Pledge Agreement, (i) are within
the respective powers of each of the Borrowers have been duly authorized by all
necessary action, including the consent of shareholders, partners or members,
where required, and do not (A) contravene the Organizational Documents of any of
the Borrowers, (B) violate any law (including, without limitation, the
Securities Exchange Act of 1934) or regulation (including, without limitation,
Regulations T, U or X of the Board), or any order or decree of any court or
Governmental Authority, (C) conflict with or result in a breach of, or
constitute a default under, any indenture, mortgage or deed of trust entered
into after the Filing Date or any lease, agreement or other instrument entered
into after the Filing Date binding on the Borrowers or any of their respective
properties, or (D) result in or require the creation or imposition of any Lien
upon any of the property of any of the Borrowers other than Liens granted
pursuant to this Agreement; and (ii) do not require the consent, authorization
by or approval of or notice to or 

      
        
          
          

        

        
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      filing
or registration with any Governmental Authority other than the entry of the
Amendment Order.  Except for the entry of the Amendment Order, no
authorization, approval or other action by, and no notice to or filing with, any
Governmental Authority or regulatory body is required for the perfection of the
security interests or the exercise by the Administrative Agent or the Lenders of
their respective rights and remedies under the Loan Documents.  Upon
the entry by the Bankruptcy Court of the Amendment Order, this Agreement shall
have been duly executed and delivered by each of the Borrowers.  Upon
the entry by the Bankruptcy Court of the Amendment Order, this Agreement, and
each of the other Loan Documents to which the Borrowers are or will be a party,
when delivered hereunder or thereunder, will be, a legal, valid and binding
obligation of each Borrower, enforceable against the Borrowers in accordance
with its terms and the Orders.

       

      SECTION
3.3                 
Statements
Made.  The information that has been delivered in writing by
any of the Borrowers to the Administrative Agent or to the Bankruptcy Court in
connection with any Loan Document, and any financial statement delivered
pursuant hereto or thereto (other than to the extent that any such statements
constitute projections), taken as a whole and in light of the circumstances in
which made, contains no untrue statement of a material fact and does not omit to
state a material fact necessary to make such statements not misleading; and, to
the extent that any such information constitutes projections, such projections
were prepared in good faith on the basis of assumptions, methods, data, tests
and information believed by the Borrowers to be reasonable at the time such
projections were furnished.  All representations and warranties, as
made or deemed made as of a particular time, shall survive execution of each of
the Loan Documents and the making of each Loan or issuance of each Letter of
Credit, and may be relied upon by the Administrative Agent and the Lenders as
being true and correct as of the date when made or deemed made until all of the
Borrowers’ Obligations are fully and indefeasibly paid.

       

      SECTION
3.4                  Financial
Statements.  The Borrowers have furnished the Lenders with
copies of the audited consolidated financial statements and schedules of the
Borrowers and their Subsidiaries for the fiscal year ended June 2,
2007.  Such financial statements present fairly the financial
condition and results of operations of the Borrowers and their Subsidiaries on a
consolidated basis as of such date and for such period; such balance sheets and
the notes thereto disclose all liabilities, direct or contingent, of the
Borrowers  and their Subsidiaries as of the dates thereof required to
be disclosed by GAAP and such financial statements were prepared in a manner
consistent with GAAP.  No material adverse change in the operations,
businesses, properties, assets, prospects or condition (financial or otherwise)
of the Borrowers and their Subsidiaries, taken as a whole, has occurred since
June 2, 2007 other than those which customarily occur as a result of events and
circumstances following the commencement of a proceeding under Chapter 11 of the
Bankruptcy Code and the commencement of the Cases and other than with respect to
the ABA Pension Plan and other than the Disclosed Matters.

       

      SECTION
3.5                  Ownership.  Each
of the Persons listed on Schedule 3.5 is a
direct or indirect Subsidiary of the Borrowers and Schedule 3.5
correctly sets forth the ownership interest of each of the
Borrowers  in their respective Subsidiaries, in each case as of the
Closing Date.  None of the Borrowers owns any other Subsidiaries,
whether directly or indirectly, other than as set forth on Schedule
3.5.

       

      
        
          
          

        

        
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      SECTION
3.6                  Liens.  There
are no Liens of any nature whatsoever on any assets of any of the Borrowers
other than (i) Permitted Liens, and (ii)  Liens in favor of the
Administrative Agent and the Lenders.  None of the Borrowers is a
party to any contract, agreement, lease or instrument the performance of which,
either unconditionally or upon the happening of an event, will result in or
require the creation of a Lien on any assets of any Borrower or otherwise result
in a violation of this Agreement other than the Liens granted to the
Administrative Agent and the Lenders as provided for in this
Agreement.

       

      SECTION
3.7                  Compliance with
Law.

       

      (a)           (i)  The
operations of the Borrowers and their Subsidiaries comply in all material
respects with all applicable environmental, health and safety statutes and
regulations, including, without limitation, regulations promulgated under the
Resource Conservation and Recovery Act (42 U.S.C. §§ 6901 et seq.); (ii) none of
the operations of the Borrowers or their Subsidiaries is the subject of any
Federal or state investigation evaluating whether any remedial action involving
a material expenditure by the Borrowers is needed to respond to a release of any
Hazardous Waste or Hazardous Substance (as such terms are defined in any
applicable state or Federal environmental law or regulations) into the
environment; and (iii) the Borrowers and their Subsidiaries do not have any
material contingent liability in connection with any release of any Hazardous
Waste or Hazardous Substance into the environment.

       

      (b)           None
of the Borrowers or their Subsidiaries is in violation of any law, rule or
regulation, or in default with respect to any judgment, writ, injunction or
decree of any Governmental Authority the violation of which, or a default with
respect to which, would have a Material Adverse Effect, other than with respect
to the ABA Pension Plan.

       

      SECTION
3.8                  Insurance.  All
policies of insurance of any kind or nature owned by or issued to the Borrowers,
including, without limitation, policies of life, fire, theft, product liability,
public liability, property damage, other casualty, employee fidelity, workers’
compensation, employee health and welfare, title, property and liability
insurance, are in full force and effect and are of a nature and provide such
coverage as is customarily carried by companies of the size and character of the
Borrowers.

       

      SECTION
3.9                  The Orders.  On the
date of the making of the initial Loans or the issuance of the initial Letters
of Credit hereunder, whichever first occurs, the Amendment Order will have been
entered and will not have been stayed, amended, vacated, reversed or rescinded
except as approved by the Administrative Agent, in its exclusive
discretion.  On the date of the making of any Loan or the issuance of
any Letter of Credit, the Orders shall have been entered and shall not have been
amended, stayed, vacated or rescinded except as approved by the Administrative
Agent, in its exclusive discretion.  Upon the maturity (whether by the
acceleration or otherwise) of any of the obligations of the
Borrowers  hereunder and under the other Loan Documents, the Lenders
shall, subject to the provisions of Section 7.1, be
entitled to immediate payment of such obligations, and to enforce the remedies
provided for hereunder, without further application to or order by the
Bankruptcy Court.

       

      SECTION
3.10                Use of
Proceeds.  The
proceeds of the Loans shall be used in accordance with Section 2.2, for
(i) working capital, Letters of Credit and Capital Expenditures;

      
        
          
          

        

        
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      (ii)
other general corporate purposes of the Borrowers; (iii) payment of any related
transaction costs, fees and expenses; and (iv) the costs of administration of
the Cases.  All such usage shall be substantially consistent with the
Budget.  The Letters of Credit shall be issued in support of
obligations of the Borrowers that are acceptable to the Administrative
Agent.

       

      SECTION
3.11                Litigation.  Except as set forth on Schedule
3.11 hereto, there
are no unstayed actions, suits or proceedings pending or, to the best knowledge
of the Borrowers, threatened against or affecting the Parent Borrower or any
Subsidiary Borrower or any of their respective properties, before any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, that are reasonably likely to have a Material Adverse
Effect, provided, that no
matter disclosed on Schedule 3.11 shall
be excepted from the representation set forth in this Section to the extent it
shall prove to be, or shall become, materially more adverse to the Borrowers
taken as a whole or to the Lenders than it would have reasonably appeared to be
on the basis of the disclosure contained on Schedule
3.11.

       

      SECTION
3.12                Intellectual
Property.
Set forth on Schedule
3.12 hereto is a complete and accurate list of all patents, trademarks,
trade names, service marks and copyrights, and all applications therefor and
licenses thereof, of each Borrower, showing as of the date hereof the
jurisdiction in which registered, the registration number, the date of
registration and the expiration date.

       

      SECTION
3.13                Taxes.  Except
to the extent permitted by Section 5.4 hereof,
each Borrower has filed or caused to be filed all federal, state and other
material tax returns that are required to be filed and has paid all Taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other Taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than any the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves, if any, in conformity with GAAP
have been provided on the books of such Borrower); no material tax Lien has been
filed, and, to the knowledge of the Borrowers, no claim is being asserted, with
respect to any such Tax, fee or other charge.

       

      SECTION
3.14                Investment Company Act;
Other Regulations.  Neither the Parent Borrower nor any
Subsidiary Borrower is an “investment company”, or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940,
as amended.  The Borrowers are not subject to any organizational or
governing document, or any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority that limits its ability
to incur Indebtedness, other than the Orders.

       

      SECTION
3.15                ERISA
Matters.

       

      (a)           The
Borrowers and each of their ERISA Affiliates are in substantial compliance with
all applicable provisions and requirements of ERISA with respect to each Plan,
and have substantially performed all their obligations under each Plan, except
to the extent that any non-compliance with ERISA or any such failure to perform
(other than, in each case, solely with respect to the ABA Pension Plan) would
not result in material liability of the Borrowers or any of their ERISA
Affiliates.

      
        
          
          

        

        
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      (b)           No
Termination Event (excluding any such event attributable solely with respect to
the ABA Pension Plan) has occurred which has resulted, or is reasonably likely
to result, in any material liability to the PBGC or to any other
Person.

       

      (c)           Except
to the extent required under Section 4980B of the Code and/or Section 601 of
ERISA, neither the Parent Borrower nor the Subsidiary Borrower maintains or
contributes to any employee welfare benefit plan (as defined in Section 3(1) of
ERISA) that provides health or welfare benefits (through the purchase of
insurance or otherwise) for any retired or former employees of the Borrowers,
except to the extent that the provision of such benefits would not have a
Material Adverse Effect.

       

      SECTION
4.            CONDITIONS
OF LENDING

       

      SECTION
4.1                  Conditions Precedent to
Initial Loan and Initial Letter of Credit.  The obligation of
the Lenders to make the initial Loan or the Fronting Bank to issue the initial
Letter of Credit, whichever may occur first, is subject to the following
conditions precedent:

       

      (a)           Supporting
Documents.  The Administrative Agent shall have received for
each of the Borrowers:

       

      (i)           Certificates
that (A) there were no changes, or providing the text of changes, to the
Organizational Document of such Borrower as delivered by each Borrower pursuant
to Section 4.1(a) of the Prior Agreement, and (B) such Borrower is in good
standing in its jurisdiction of incorporation, organization or formation and in
each jurisdiction in which it is qualified to do business;

       

      (ii)           signature
and incumbency certificates of the officers of such Borrower executing the Loan
Documents to which it is a party, dated as of the Closing Date;

       

      (iii)           duly
adopted resolutions of the board of directors or similar governing body of each
Borrower approving and authorizing the execution, delivery and performance of
this Agreement and the other Loan Documents to which it is a party or by which
it or its assets may be bound, certified as of the Closing Date by its secretary
or assistant secretary as being in full force and effect without modification or
amendment;

       

      (iv)           a
good standing certificate from the applicable Governmental Authority of each
Borrower’s jurisdiction of incorporation, organization or formation;
and

       

      (v)           such
other documents as the Administrative Agent may reasonably request.

       

      (b)           Orders.  The
Administrative Agent and the Lenders shall have received a certified copy of the
Amendment Order and the Orders (including the Amendment Order) shall be in full
force and effect, provided that if the Amendment Order is the subject of a
pending appeal in any respect, neither the making of any Loan nor the issuance
of any Letter of Credit nor the performance by any of the Borrowers of any of
their obligations hereunder or under the Loan Documents or under any other
instrument or agreement referred to herein shall be the subject of a presently
effective stay pending appeal.

       

      
        
          
          

        

        
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      (c)           Loan
Agreement.  The Agent shall have received this Agreement, duly
executed and delivered by the Administrative Agent, the Parent Borrower, each
Subsidiary Borrower and each Lender.

       

      (d)           Opinions of
Counsel.  The Administrative Agent and the Lenders shall have
received the favorable written opinions of counsel to the Borrowers, acceptable
to the Administrative Agent, substantially in the form of Exhibit
D.

       

      (e)           Payment of
Fees.  The Borrowers shall have paid to the Administrative
Agent the then unpaid balance of all accrued and unpaid Fees due under and
pursuant to this Agreement and the letter referred to in Section
2.19.

       

      (f)           Corporate and Judicial
Proceedings.  All corporate and judicial proceedings and all
instruments and agreements in connection with the transactions among the
Borrowers, the Administrative Agent and the Lenders contemplated by this
Agreement shall be satisfactory in form and substance to the Administrative
Agent in its exclusive discretion, and the Administrative Agent shall have
received all information and copies of all documents and papers, including
records of corporate and judicial proceedings, which the Administrative Agent
may have requested in connection therewith, such documents and papers where
appropriate to be certified by proper corporate, governmental or judicial
authorities.

       

      (g)           Information.  The
Administrative Agent shall have received such information (financial or
otherwise) as may be reasonably requested by the Administrative
Agent.

       

      (h)           Compliance with
Laws.  The Borrowers shall have granted the Administrative
Agent and Collateral Agent access to and the right to inspect all reports,
audits and other internal information of the Borrowers relating to environmental
matters and any third party verification of certain matters relating to
compliance with Environmental Laws requested by the Administrative
Agent.

       

      (i)           Asset
Sales.  The Borrowers shall provide a certificate of the Chief
Financial Officer of the Parent Borrower in form and substance satisfactory to
the Administrative Agent certifying that, on or before April 21, 2008, they
requested proposals for the sale of the Borrowers and their assets in their
entirety, or in a series of transactions, pursuant to and in accordance with
Section 363 of the Bankruptcy Code.

       

      (j)           Closing
Documents.  The Administrative Agent shall have received all
documents required by this Agreement satisfactory in form and substance to the
Administrative Agent in its exclusive discretion.

       

      SECTION
4.2                  Conditions Precedent to Each
Loan and Each Letter of Credit.  The obligation of the Lenders
to make each Loan and of the Fronting Bank to issue each Letter of Credit,
including the initial Loan and the initial Letter of Credit, is subject to the
following conditions precedent:

       

      
        
          
          

        

        
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      (a)           Notice.  The
Administrative Agent shall have received a notice with respect to each Borrowing
or the issuance of each Letter of Credit, as the case may be, as required by
Section
2.

       

      (b)           Representations and
Warranties.  All representations and warranties contained in
this Agreement and the other Loan Documents shall be true and correct in all
material respects on and as of the date of each Borrowing or the issuance of
each Letter of Credit hereunder with the same effect as if made on and as of
such date except to the extent such representations and warranties expressly
relate to an earlier date.

       

      (c)           No
Default.  On the date of each Borrowing or the issuance of each
Letter of Credit hereunder, no Default or Event of Default shall have occurred
and be continuing.

       

      (d)           Orders.  Each
Order shall be in full force and effect and shall not have been stayed,
reversed, modified or amended in any respect without the prior written consent
of the Administrative Agent.  If any Order is the subject of a pending
appeal in any respect, neither the making of the Loans nor the issuance of any
Letter of Credit nor the performance by any of the Borrowers of any of their
obligations under any of the Loan Documents or under any other instrument or
agreement referred to herein shall be the subject of a presently effective stay
pending appeal.

       

      (e)           Payment of
Fees.  The Borrowers shall have paid to the Administrative
Agent the then unpaid balance of all accrued and unpaid Fees then due and
payable under and pursuant to this Agreement and the letter referred to in Section
2.19.

       

      (f)           Borrowing Base
Certificate.  The Administrative Agent shall have received a
Borrowing Base Certificate in accordance with Section 5.8 dated no
more than seven (7) days prior to each Borrowing or the issuance of each Letter
of Credit, which Borrowing Base Certificate shall include supporting schedules
as required by the Administrative Agent.

       

      (g)           Usage.  The
uses of such Borrowing or such Letter of Credit shall be substantially
consistent with the Budget, as updated from time to time.

       

      (h)           Other
Conditions.  Such other conditions as may be mutually agreed
upon by the Administrative Agent and the Borrowers.

       

      Each
Borrowing shall be deemed to constitute a representation and warranty by the
Borrowers on the date thereof that the conditions specified above have been
satisfied or waived.

       

      SECTION
5.           AFFIRMATIVE
COVENANTS

       

      From
the date hereof and for so long as any Commitment shall be in effect or any
Letter of Credit shall remain outstanding (in a face amount in excess of the
amount of cash then held in the Letter of Credit Account, or in excess of the
face amount of back-to-back letters of credit delivered, in each case pursuant
to Section
2.3(b)), or any amount shall remain outstanding or unpaid under this
Agreement, each of the Borrowers and their respective Subsidiaries agree that,
unless the Required Lenders shall otherwise consent in writing:

       

      
        
          
          

        

        
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              SECTION
5.1           
Financial Statements,
Reports, etc.  The Borrowers and the Subsidiaries will deliver
to the Administrative Agent and each of the Lenders:

      

       

      (a)            within
ninety (90) days after the end of each fiscal year, consolidated balance sheets
and related statements of income, stockholders’ equity, and cash flows, showing
the financial condition of the Borrowers and their Subsidiaries as of the
close of such fiscal year and the results of their respective operations during
such year, such consolidated statements to be certified by a Financial Officer
of each of the Borrowers to the effect that such consolidated financial
statements fairly present the financial condition and results of operations
of  the Borrowers on a consolidated basis in accordance with GAAP;
provided, that the requirement to deliver the financial statements pursuant to
this Section 5.1(a) shall be deemed to have been satisfied upon delivery of the
Borrowers’ annual report on Form 10-K for such fiscal year;

       

      (b)            within
forty five (45) days after the end of the first three fiscal quarters of each
fiscal year of the Borrowers, consolidated balance sheets and related statements
of income, stockholders’ equity and cash flows, showing the financial condition
of the Borrowers and their Subsidiaries on a consolidated basis, in each case as
of the close of such fiscal quarter and the results of their operations during
such fiscal quarter and the then elapsed portion of the fiscal year, each
certified by a Financial Officer of each of the Borrowers as fairly presenting
the financial condition and results of operations of the Borrowers on a
consolidated basis in accordance with GAAP, subject to normal year-end audit
adjustments and the omission of the required footnotes to the financial
statements; provided, that the requirement to deliver the financial statements
pursuant to this Section 5.1(b) shall be deemed to have been satisfied upon
delivery of the Borrowers’ quarterly report on Form 10-Q for such fiscal
quarter;

       

      (c)            concurrently
with any delivery of financial statements under (a) or (b) above as applicable,
(i) a certificate of a Financial Officer of each of the Borrowers (A) certifying
that no Event of Default or event which upon notice or lapse of time or both
would constitute an Event of Default has occurred, or, if such an Event of
Default or event has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto and (B)
setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the provisions of Sections 6.3, 6.4,
6.5 and 6.10 and (ii) a
certificate of such accountants accompanying the audited consolidated financial
statements delivered under (a) above certifying that, in the course of the
regular audit of the business of the Borrowers and their Subsidiaries, such
accountants have obtained no knowledge that an Event of Default has occurred and
is continuing, or if, in the opinion of such accountants, an Event of Default
has occurred and is continuing, specifying the nature thereof and all relevant
facts with respect thereto;

       

      (d)            within
forty-five (45) days after the end of each fiscal month, unaudited monthly
consolidated balance sheets and related statements of income and cash flows of
the Borrowers and their Subsidiaries (including the amount of Available Cash
balances at the end of each such fiscal month), in form and substance
satisfactory to the Administrative Agent and showing the results of the
Borrowers operations during such fiscal month and the then elapsed portion of
the fiscal year;

       

      (e)            [reserved]

      
        
          
          

        

        
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      (f)            commencing
on the date which is two (2) weeks after delivery under the Prior Agreement of
the most recently updated Forcast, and every two (2) weeks thereafter, an update
of the Forecast for the then succeeding thirteen (13) calendar weeks, in form
and substance satisfactory to the Administrative Agent and Loughlin Meghji &
Company or such other financial advisor as may be acceptable to the
Administrative Agent;

       

      (g)           [reserved]

       

      (h)           within
forty-five (45) days after the end of each fiscal month, a summary of the
results of the Borrowers’ business operations for the preceding month as
compared to the corresponding period in the projections provided to the Lenders
on April 2, 2008 or any updated projections provided thereafter pursuant to
Section 5.1(i), including a discussion of significant variances, which summary
shall describe results on the basis of the Borrowers and their respective
Subsidiaries on a consolidated basis;

       

      (i)           within
forty-five (45) days after the end of the second fiscal quarter of each fiscal
year of the Borrowers, and within sixty (60) days from the end of the last
fiscal quarter of each fiscal year of the Borrowers, an update of the Budget
satisfactory in form and substance to the Administrative Agent and Loughlin
Meghji & Company or such other financial advisor as may be acceptable to
Administrative Agent, and be available to discuss such updated Budget with the
Administrative Agent upon the Administrative Agent’s reasonable
request;

       

      (j)           promptly
after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by it with the Securities
and Exchange Commission, or any governmental authority succeeding to any of or
all the functions of said commission, or with any national securities exchange,
as the case may be;

       

      (k)           as
soon as available and in any event (A) within thirty (30) days after any
Borrower, any or any of their ERISA Affiliates knows or has reason to know that
any Termination Event described in clause (i) of the definition of Termination
Event with respect to any Single Employer Plan of any of the Borrowers or such
ERISA Affiliate has occurred and (B) within ten (10) days after any of the
Borrowers or any of their ERISA Affiliates knows or has reason to know that any
other Termination Event with respect to any such Plan has occurred, a statement
of a Financial Officer of such Borrower describing such Termination Event and
the action, if any, which such Borrower or such ERISA Affiliate proposes to take
with respect thereto;

       

      (l)           promptly
and in any event within ten (10) days after receipt thereof by any of the
Borrowers or any of their ERISA Affiliates from the PBGC copies of each notice
received by such Borrower or any such ERISA Affiliate of the PBGC’s intention to
terminate any Single Employer Plan of such Borrower or such ERISA Affiliate or
to have a trustee appointed to administer any such Plan;

       

      (m)           if
requested by the Administrative Agent, promptly and in any event within thirty
(30) days after the filing thereof with the Internal Revenue Service, copies of
each Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
with respect to each Single Employer Plan of any of the Borrowers or any of
their ERISA Affiliates;

      
        
          
          

        

        
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      (n)           within
ten (10) days after notice is given or required to be given to the PBGC under
Section 302(f)(4)(A) of ERISA of the failure of any of the Borrowers or any of
their ERISA Affiliates to make timely payments to a Plan, a copy of any such
notice filed and a statement of a Financial Officer of such Borrower setting
forth (A) sufficient information necessary to determine the amount of the Lien
under Section 302(f)(3), (B) the reason for the failure to make the required
payments and (C) the action, if any, which the Borrowers or any of their ERISA
Affiliates proposed to take with respect thereto;

       

      (o)           promptly
and in any event within ten (10) days after receipt thereof by any of the
Borrowers or any ERISA Affiliate from a Multiemployer Plan sponsor, a copy of
each notice received by such Borrower or any ERISA Affiliate concerning (A) the
imposition of Withdrawal Liability by a Multiemployer Plan, (B) the
determination that a Multiemployer Plan is, or is expected to be, in
reorganization within the meaning of Title IV of ERISA, (C) the termination of a
Multiemployer Plan within the meaning of Title IV of ERISA, or (D) the amount of
liability incurred, or which may be incurred, by the Borrowers or any ERISA
Affiliate in connection with any event described in clause (A), (B) or (C)
above;

       

      (p)           [reserved]

       

      (q)           promptly,
from time to time, such other information (including, without limitation,
projections) regarding the operations, business affairs and financial condition
of any Borrower, or compliance with the terms of any material loan or financing
agreements as the Administrative Agent, at the request of any Lender, may
reasonably request; and

       

      (r)           promptly
after the same is available, copies of all pleadings, motions, applications,
judicial information, financial information and other documents filed by or on
behalf of any of the Borrowers with the Bankruptcy Court in the Cases, providing
copies of same to counsel for the Administrative Agent, provided that the
Borrowers’ and the Subsidiaries’ obligation to deliver such information to the
Administrative Agent and each of the Lenders shall be deemed satisfied to the
extent and at such time as such information is publicly available in electronic
format through the Bankruptcy Court’s electronic filing system.

       

      (s)           [reserved]

       

      SECTION
5.2                 
Existence.  The
Borrowers will preserve and maintain in full force and effect all governmental
rights, privileges, qualifications, permits, licenses and franchises necessary
or desirable in the normal conduct of its businesses except (i) (A) if in the
reasonable business judgment of such Borrower it is in its best economic
interest not to preserve and maintain such rights, privileges, qualifications,
permits, licenses and franchises, and (B) such failure to preserve the same
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect, and (ii) as otherwise permitted in connection with sales of assets
permitted by Section
6.11.

       

      SECTION
5.3                 Insurance.  The
Borrowers will:  (a) keep their insurable properties insured at all
times, against such risks, including fire and other risks insured against by
extended coverage, as is customary with companies of the same or similar size in
the same or similar businesses; and maintain in full force and effect public
liability insurance against claims for 

      
        
          
          

        

        
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      personal
injury or death or property damage occurring upon, in, about or in connection
with the use of any properties owned, occupied or controlled by any Borrower in
such amounts and with such deductibles as are customary with companies of the
same or similar size in the same or similar businesses and in the same
geographic area, with financially sound and responsible insurance companies; and
(b) maintain such other insurance or self insurance as may be required by law,
with financially sound and responsible insurance companies.

       

      SECTION
5.4                  Obligations and
Taxes.  Each Borrower will pay all its material obligations
arising after the Filing Date promptly and in accordance with their terms and
pay and discharge promptly all material taxes, assessments and governmental
charges or levies imposed upon it or upon its income or profits or in respect of
its property arising after the Filing Date, before the same shall become in
default, as well as all material lawful claims for labor, materials and supplies
or otherwise arising after the Filing Date which, if unpaid, would become a Lien
or charge upon such properties or any part thereof; provided, however, that no
Borrower shall be required to pay and discharge or to cause to be paid and
discharged any such tax, assessment, charge, levy or claim so long as the
validity or amount thereof shall be contested in good faith by appropriate
proceedings (if the Borrowers shall have set aside on their books adequate
reserves therefor).

       

      SECTION
5.5                  Notice of Event of Default,
etc.  The Borrowers will promptly give to the Administrative
Agent notice in writing of:

       

      (a)           any
Default or Event of Default; and

       

      (b)           any
litigation, proceedings or material investigations which may exist at any time
between any Borrower and any Governmental Authority.

       

      SECTION
5.6                   Access to Books and
Records. 

       

      (a)           The
Borrowers and the Subsidiaries will maintain or cause to be maintained at all
times true and complete books and records in accordance with GAAP of the
financial operations of the Borrowers and their respective Subsidiaries; and
provide the Administrative Agent and its representatives access to all such
books and records during regular business hours, in order that the
Administrative Agent may examine and make abstracts from such books, accounts,
records and other papers for the purpose of verifying the accuracy of the
various reports delivered by the Borrowers  to the Administrative
Agent or the Lenders pursuant to this Agreement or for otherwise ascertaining
compliance with this Agreement.  The Borrowers will permit (and will
cause their Subsidiaries to permit) any representatives designated by the
Administrative Agent to discuss its affairs, finances and condition with its
officers and independent accountants, all at such reasonable times and as often
as reasonably requested.

       

      (b)           The
Borrowers will permit any representatives designated by the Administrative Agent
(including any consultants, accountants, lawyers and appraisers retained by the
Administrative Agent) to conduct evaluations and appraisals of the Borrowers’
computation of the Borrowing Base and the assets included in the Borrowing Base
and such other assets and properties of the Borrowers or their Subsidiaries as
the Administrative Agent or Required Lenders may require, all at such reasonable
times and as often as reasonably requested.  

      
        
          
          

        

        
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      The
Borrowers shall pay the reasonable fees (including reasonable and customary
internally allocated fees of employees of the Administrative Agent as to which
invoices have been furnished) and expenses of any such representatives retained
by the Administrative Agent as to which invoices have been furnished to conduct
any such evaluation or appraisal, including the reasonable fees and expenses
associated with collateral monitoring services performed by the IB ABL Portfolio
Management Group of the Administrative Agent.  To the extent required
by the Administrative Agent as a result of any such evaluation, appraisal or
monitoring, the Borrowers  also agree to modify or adjust the
computation of the Borrowing Base (which may include maintaining additional
reserves, modifying the advance rates or modifying the eligibility criteria for
the components of the Borrowing Base).

       

      (c)           In
the event that historical accounting practices, systems or reserves relating to
the components of the Borrowing Base are modified in a manner that is adverse to
the Lenders in any material respect, the Borrowers will agree to maintain such
additional reserves (for purposes of computing the Borrowing Base) in respect to
the  components of the Borrowing Base and make such other adjustments
to its parameters for including the components of the Borrowing Base as the
Administrative Agent shall reasonably require based upon such
modifications.

       

      (d)           The
Borrowers will grant the Administrative Agent and the Collateral Agent access to
and the right to inspect all reports, audits and other internal information of
the Borrowers relating to environmental matters upon reasonable notice, and
obtain any third party verification of matters relating to compliance with
environmental laws and regulations requested by the Administrative Agent at any
time and from time to time.

       

      SECTION
5.7                  Maintenance of Concentration
Account. The Borrowers will maintain with the Administrative Agent an
account or accounts to be used by the Borrowers as their principal domestic
concentration or sweep account(s) into which shall be deposited the available
balances from the Borrowers’ operating accounts at the end of each Business Day,
net of disbursements paid in the ordinary course of business during such
Business Day.

       

      SECTION
5.8                  Borrowing Base
Certificate.  Furnish to the Administrative Agent, no later
than (i) Friday of each week with respect to the immediately preceding week, a
completed Borrowing Base Certificate as of the last day of the immediately
preceding one week period, (ii) twenty (20) days following the immediately
preceding fiscal month ended, a completed Borrowing Base Certificate showing the
Borrowing Base as of the close of business on the last day of such fiscal month,
and (iii) if requested by the Administrative Agent, at any other time when the
Administrative Agent reasonably believes that the then existing Borrowing Base
Certificate is materially inaccurate, as soon as reasonably available but in no
event later than five (5) Business Days after such request, a completed
Borrowing Base Certificate showing the Borrowing Base as of the date so
requested, in each case with supporting documentation and additional reports
with respect to the Borrowing Base as the Administrative Agent may reasonably
request.  The Real Property Component of the Borrowing Base shall be
updated (i) from time to time upon receipt of periodic valuation updates
received from the Administrative Agent’s asset valuation experts,
(ii) concurrent with the sale of any assets constituting part of the Real
Property Component, (iii) in the event such assets are idled for any reason
other than routine maintenance or repairs for a period in excess of ten (10)
consecutive days, (iv) the value 

      
        
          
          

        

        
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      of
such assets is otherwise impaired, in the Administrative Agent's exclusive
discretion, or (v) following any of the events described in clauses (ii) or
(iii) above, concurrent with any agreement by the Administrative Agent (in the
Administrative Agent’s discretion) to permit the Borrowers to add other
property, plant or equipment to the Real Property Component following receipt of
appraisals of such assets which are satisfactory to the Administrative
Agent.  The components of the Borrowing Base consisting of Inventory
shall be updated monthly as of the close of business on the last day of each
fiscal month of the Borrowers.

       

      SECTION
5.9                 
Compliance with
Laws.  Comply with requirements of all applicable laws, rules,
regulations and orders of any Governmental Authority (including all Pure Food
and Drug Laws), except to the extent that failure to comply herewith could not,
in the aggregate, have a Material Adverse Effect (other than any non-compliance
solely with respect to the ABA Pension Plan).

       

      SECTION
5.10                Environmental
Laws.  (a)  Exercise all due diligence in order to
comply and cause (i) all tenants under any leases or occupancy agreements
affecting any portion of the Facilities and (ii) all other Persons on or
occupying such property, to comply with all Environmental Laws.

       

      (b)            (i)  Promptly
take any and all necessary remedial action in connection with the presence,
storage, use, disposal, transportation or release of any Hazardous Waste or
Hazardous Substance on or under any Facility required to comply with all
applicable Environmental Laws and Governmental Authorizations unless the failure
to so comply could not reasonably be expected to have a Material Adverse Effect
and (ii) in the event the Borrowers take any remedial action with respect to any
Hazardous Waste or Hazardous Substance on or under any Facility, conduct and
complete such remedial action in material compliance with all applicable
Environmental Laws and in accordance with the policies, orders and directives of
any applicable Governmental Authorities except when, and only to the extent
that, the Borrowers’ liability for such presence, storage, use, disposal,
transportation or release of any such Hazardous Waste or Hazardous Substance is
being contested in good faith by the Borrowers.

       

      SECTION
5.11                CEO.  Continue
to retain a chief executive officer of the Parent Borrower who shall be
reasonably satisfactory to the Administrative Agent.

       

      SECTION
5.12                Revised
Plan.   By
no later than June 30, 2008, the Borrowers shall deliver to the Administrative
Agent a schedule (in form and substance satisfactory to the Administrative
Agent) of proposed Section 363 asset sales (which shall be derived from
request(s) for proposals made not later than April 21, 2008 and include
estimated sales dates and estimated proceeds) which the Borrowers reasonably
expect will generate sales proceeds sufficient in the aggregate to reduce Total
Usage (minus any cash then held in the Letter of Credit Account) to zero prior
to the Maturity Date; provided, however,
that the Borrowers shall not be required to deliver such schedule in the event
that on or before June 30, 2008: (w) the Borrowers have filed a Reorganization
Plan that (A) provides for the refinancing of the Credit Agreement in full; (B)
received the publicly announced support of the Bakery, Confectionery, Tobacco
Workers and Grain Millers International Union and the International Brotherhood
of Teamsters; and (C) is otherwise in form and substance satisfactory to the
Administrative Agent; (x) the Borrowers have obtained firm commitments for
funding of all exit financing necessary 

      
        
          
          

        

        
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      for
confirmation and consummation of the Reorganization Plan; (y) such
Reorganization Plan shall have become effective and be consummated; and (z) the
Obligations under the Credit Agreement shall have been indefeasibly paid in
full.

       

      SECTION
6.           NEGATIVE
COVENANTS

       

      From
the date hereof and for so long as any Commitment shall be in effect or any
Letter of Credit shall remain outstanding (in a face amount in excess of the
amount of cash then held in the Letter of Credit Account, or in excess of the
face amount of back-to-back letters of credit delivered, in each case pursuant
to Section
2.3(b)) or any amount shall remain outstanding or unpaid under this
Agreement, unless the Required Lenders shall otherwise consent in
writing:

       

      SECTION
6.1                
 Liens.  Each
of the Borrowers will not (and will not apply to the Bankruptcy Court for
authority to), incur, create, assume or suffer to exist any Lien or encumbrance
on any asset of the Borrowers now owned or hereafter acquired by any Borrower
other than Permitted Liens.

       

      SECTION
6.2                  Merger,
etc.  Each of the Borrowers will not (and will not apply to the
Bankruptcy Court for authority to), consolidate or merge with or into another
Person.

       

      SECTION
6.3                  Indebtedness.  Each
of the Borrowers will not (and will not apply to the Bankruptcy Court for
authority to), contract, create, incur, assume or suffer to exist any
Indebtedness, except for (i) Indebtedness under this Agreement; (ii)
Indebtedness incurred prior to the Filing Date (including existing Capitalized
Leases) of the Borrowers, including the Indebtedness listed on Schedule 6.3; (iii)
Indebtedness incurred subsequent to the Filing Date secured by purchase money
Liens (exclusive of Capitalized Leases) in an aggregate amount not in excess of
$1,000,000 to the extent permitted by Section 6.4; (iv)
Indebtedness allowed under Sections 6.6 and
6.10 (without
duplication); (v) Indebtedness owed to JPMCB or any of its banking affiliates in
respect of any overdrafts and related liabilities arising from treasury,
depository and cash management services or in connection with any automated
clearing house transfers of funds; (vi) other secured or unsecured Indebtedness
incurred subsequent to the Filing Date in an aggregate amount not to exceed
$500,000; (vii) obligations allowed under Section 6.15 of this
Agreement; and (viii) unsecured Indebtedness in an aggregate amount not in
excess of $2,500,000 outstanding at any time owed to the Borrowers’ depository
banks for no more than two (2) consecutive Business Days in respect of any
overdrafts which occur in the ordinary course of Borrowers’
business.

       

      SECTION
6.4                  Capital
Expenditures.  Each of the Borrowers will not (and will not
apply to the Bankruptcy Court for authority to), and will cause each of their
respective Subsidiaries not to, make Capital Expenditures during the fiscal
quarters of the Borrowers set forth below, or, with respect to the last period
referenced, portion of such fiscal quarter, in an aggregate amount in excess of
the amount specified opposite such fiscal quarters:

       

      
        	
                Fiscal Quarter
      Ending

              	
                Maximum Capital
      Expenditures

                (millions)

              
	
                May
      31, 2008

              	
                $10

              
	
                August
      23, 2008

              	
                $10

              
	
                October
      18, 2008

              	
                $5

              

      

      
 

      
        
          
          

        

        
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      SECTION
6.5                  EBITDA.  As
of the end of each fiscal period of the Borrowers, commencing with the fiscal
monthly period ending April 5, 2008, the Borrowers will not permit Consolidated
EBITDA for the preceding thirteen consecutive fiscal periods ending in each case
on the last day of the fiscal period listed below to be less than the respective
amounts specified opposite such fiscal period:

       

      
        	
                Fiscal Period
      Ending

              	
                Consolidated
      EBITDA

                (millions)

              
	
                April
      5, 2008

              	
                $32

              
	
                May
      3, 2008

              	
                $23

              
	
                May
      31, 2008

              	
                $11

              
	
                June
      28, 2008

              	
                -$5

              
	
                July
      26, 2008

              	
                -$11

              
	
                August
      23, 2008

              	
                -$18

              

      

      

       

      SECTION
6.6                  Guarantees and Other
Liabilities.  Each of the Borrowers will not (and will not
apply to the Bankruptcy Court for authority to), purchase or repurchase (or
agree, contingently or otherwise, so to do) the Indebtedness of, or assume,
guarantee (directly or indirectly or by an instrument having the effect of
assuring another’s payment or performance of any obligation or capability of so
doing, or otherwise), endorse or otherwise become liable, directly or
indirectly, for the obligations, stock or dividends of any Person, except (i)
for any guaranty of Indebtedness or other obligations (or otherwise becoming
liable for any of the obligations) of any of the Borrowers in the ordinary
course of business and consistent with the past business practices with trade
vendors if such Indebtedness or the obligations are permitted by this Agreement,
and (ii) by endorsement of negotiable instruments for deposit or collection in
the ordinary course of business.

       

      SECTION
6.7                  Chapter 11
Claims.  Each of the Borrowers will not (and will not apply to
the Bankruptcy Court for authority to), incur, create, assume, suffer to exist
or permit any other Superpriority Claim which is pari passu with or senior
to the claims of the Administrative Agent and the Lenders against the
Borrowers  hereunder, except for the Carve-Out.

       

      SECTION
6.8                  Dividends; Capital
Stock.  Each of the Borrowers will not (and will not apply to
the Bankruptcy Court for authority to), except for distributions or payments
from one Borrower to another Borrower, or from any Subsidiaries to any Borrower,
declare or pay, directly or indirectly, any dividends or make any other
distribution or payment, whether in cash, property, securities or a combination
thereof, with respect to (whether by reduction of capital or otherwise) any
shares of capital stock (or any options, warrants, rights or other equity
securities or agreements relating to any capital stock), or set apart any sum
for the aforesaid purposes on anything other than an arm’s-length
basis.

       

      SECTION
6.9                  Transactions with
Affiliates.  Each of the Borrowers will not (and will not apply
to the Bankruptcy Court for authority to), sell or transfer any property or
assets to, or otherwise engage in or permit to exist any other material
transactions with, any of its non-

      
        
          
          

        

        
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      Borrower
Affiliates other than (i) in the ordinary course of the Borrowers’ businesses in
good faith and at commercially reasonable prices and on commercially reasonable
terms and conditions not less favorable to the Borrowers than could be obtained
on an arm’s-length basis from a non-Affiliate, and (ii) transactions described
on Schedule
6.9.

       

      SECTION
6.10                Investments, Loans and
Advances.  Each
of the Borrowers will not (and will not apply to the Bankruptcy Court for
authority to), purchase, hold or acquire any capital stock, evidences of
Indebtedness or other securities of, make or permit to exist any loans or
advances to, or make or permit to exist any investment in, any other Person (all
of the foregoing, “Investments”),
except for (i) Permitted Investments; (ii) Intercompany Indebtedness owing, or
to be owed, from a Borrower to another Borrower incurred in the ordinary
course of business consistent with past practice; (iii) Intercompany
Indebtedness owing to and from Mrs. Cubbison's Foods, Inc. listed on Schedule 6.10; and (iv)
Investments listed on Schedule 6.10.

       

      SECTION
6.11                Disposition of
Assets.  Except as may be authorized by orders of the
Bankruptcy Court and on terms and conditions acceptable to the Administrative
Agent, each of the Borrowers will not sell or otherwise dispose of any assets
(including, without limitation, the capital stock of any Subsidiary of the
Borrowers) except for (i) sales of Inventory, fixtures and equipment in the
ordinary course of business, and (ii) sales of surplus assets of the Borrowers
no longer used in the Borrowers’ business operations.

       

      SECTION
6.12                Nature of
Business.  Except as may reasonably be expected to result from
dispositions permitted by Section 6.11, each of the Borrowers will not (and will
not apply to the Bankruptcy Court for authority to), modify or alter in any
material manner the nature and type of its business as conducted at or prior to
the Filing Date or the manner in which such business is conducted (except as
required by the Bankruptcy Code).

       

      SECTION
6.13                Transactions among
Borrowers.  Each of the Borrowers will not (and will not apply
to the Bankruptcy Court for authority to), except to the extent existing on the
date the Cases were filed and disclosed on Schedule 6.13,
permit, place or agree to permit or place any restrictions on the payment of
dividends or other distributions among the Borrowers or their Subsidiaries or
Affiliates or the making of advances or any other cash payments among the
Borrowers or their Subsidiaries or Affiliates.

       

      SECTION
6.14                Right of Subrogation among
Borrowers.  Each of the Borrowers will not (and will not apply
to the Bankruptcy Court for authority to), assert any right of subrogation
against any other Borrower until all Borrowings and all Letters of Credit are
paid in full and the Total Commitment is terminated.

       

      SECTION
6.15              
Derivative
Agreements.  Other than exchange-traded futures and option
contracts designed to hedge against fluctuations in prices for wheat, corn, oil,
fuel and other commodities used in the Borrowers’ business, in each case entered
into in the ordinary course of the Borrowers’ business, consistent with past
practices and not for speculative purposes, and for which aggregate net
expenditures (including, but not limited to, expenditures for brokerage
commissions, exchange or clearing fees, open trade equity, futures margins and
options premiums) by the Borrowers during any fiscal year shall not exceed
$10,000,000, each of the Borrowers will not (and will not apply to the
Bankruptcy Court for authority to), enter into 

      
        
          
          

        

        
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      any
agreement with respect to any swap, forward, future or derivative transaction or
option or similar agreement involving, or settled by reference to, one or more
rates, currencies, commodities, equity or debt instruments or securities, or
economic, financial or pricing indices or measures of economic, financial or
pricing risk or value or any similar transaction or any combination of these
transactions.

       

      SECTION
6.16                Reorganization
Plan.  The Borrowers will not (and will not apply to the
Bankruptcy Court for authority to), file any Reorganization Plan that does not
provide for the repayment in full in cash on the effective date thereof of all
outstanding Obligations.

       

      SECTION
6.17                Cash Restructuring
Charges.   Each of the Borrowers will not (and will not
apply to the Bankruptcy Court for authority to), and will cause each of their
respective Subsidiaries not to, incur cash restructuring charges for the fiscal
period beginning December 17, 2006 and ending October 18, 2008 in an amount in
excess of $23,000,000 (calculated as the amount expensed or accrued by the
Borrowers or any of their Subsidiaries during such period on account of
restructuring charges that will ultimately be settled via payment in cash or
cash equivalents by the Borrowers or any of their
Subsidiaries).  Borrowers shall provide documentation supporting such
cash restructuring charges in form and substance reasonably satisfactory to the
Administrative Agent concurrent with delivery of financial statements evidencing
the incurrence thereof.

       

      SECTION
7.           EVENTS OF
DEFAULT

       

      SECTION
7.1                  Events of
Default.  In
the case of the happening of any of the following events and the continuance
thereof beyond the applicable period of grace (if any) set forth below (each, an
“Event of
Default”):

       

      (a)           any
representation or warranty made by any Borrower in this Agreement or in any Loan
Document or in connection with this Agreement or the credit extensions hereunder
or any statement or representation made in any report, financial statement,
certificate or other document furnished by any Borrower to the Lenders under or
in connection with this Agreement, shall prove to have been false or misleading
in any material respect when made or delivered; or

       

      (b)           default
shall be made in the payment of any fees or interest on the Loans, principal of
the Loans or other amounts payable by the Borrowers hereunder (including,
without limitation, reimbursement obligations or cash collateralization in
respect of Letters of Credit), when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment
thereof or by acceleration thereof or otherwise; or

       

      (c)           default
shall be made by any Borrower in the due observance or performance of any
covenants, conditions or agreements contained in Section 6 hereof;
or

       

      (d)           default
shall be made by any Borrower in the due observance or performance of any
covenant, condition or agreement (other than the covenants, conditions or
agreements contained in Section 6 hereof) to
be observed or performed pursuant to the terms of this Agreement or any of the
other Loan Documents and such default shall continue unremedied for more than
ten (10) days; or

      
        
          
          

        

        
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      (e)           any
of the Cases shall be dismissed or converted to a case under Chapter 7 of the
Bankruptcy Code or any Borrower shall file a motion or other pleading seeking
the dismissal of any of the Cases under Section 1112 of the Bankruptcy Code or
otherwise; a trustee under Chapter 7 or Chapter 11 of the Bankruptcy Code, a
responsible officer or an examiner with enlarged powers relating to the
operation of the business (powers beyond those set forth in Section 1106(a)(3)
and (4) of the Bankruptcy Code) under Section 1106(b) of the Bankruptcy Code
shall be appointed in any of the Cases and the order appointing such trustee,
responsible officer or examiner shall not be reversed or vacated within
thirty-five (35) days after the entry thereof; an application shall be filed by
any Borrower for the approval of any other Superpriority Claim (other than the
Carve-Out) in any of the Cases which is pari passu with or
senior to the claims of the Administrative Agent and the Lenders against any
Borrower  hereunder, or there shall arise or be granted any such pari
passu or senior Superpriority Claim; or the Bankruptcy Court shall enter an
order terminating the use of cash collateral for the purposes described in Section 3.10;
or

       

      (f)           the
Bankruptcy Court shall enter an order or orders granting relief from the
automatic stay applicable under Section 362 of the Bankruptcy Code to the holder
or holders of any security interest to permit foreclosure (or the granting of a
deed in lieu of foreclosure or the like) on any assets of any of the Borrowers
which have a value in excess of $250,000 in the aggregate; or

       

      (g)           a
Change of Control shall occur; or

       

      (h)           the
Borrowers shall fail to deliver a certified Borrowing Base Certificate when due
and such default shall continue unremedied for more than three (3) Business
Days; or

       

      (i)           any
provision of any Loan Document shall, for any reason, cease to be valid and
binding on any of the Borrowers, or any of the Borrowers shall so assert in any
pleading filed in any court; or

       

      (j)           an
order of the Bankruptcy Court shall be entered reversing, amending,
supplementing, staying for a period in excess of ten (10) days, vacating or
otherwise modifying either of the Orders; or

       

      (k)           any
judgment or order as to a post-petition liability or debt for the payment of
money in excess of $250,000 shall be rendered against any of the Borrowers and
the enforcement thereof shall not have been stayed (by court-ordered stay or by
consent of the party litigants), it being understood that Federal Rule of Civil
Procedure 62(a) provides for a ten-day stay of enforcement of money judgments;
or

       

      (l)           any
non-monetary judgment or order with respect to a post-petition event shall be
rendered against any Borrower which does or would reasonably be expected to (i)
cause a material adverse change in the financial condition, business, prospects,
operations or assets of the Borrowers taken as a whole on a consolidated basis,
(ii) have a material adverse effect on the ability of any of the Borrowers to
perform their respective obligations under any Loan Document, or (iii) have a
material adverse effect on the rights and remedies of the Administrative Agent
or any Lender under any Loan Document, and there shall be any period of ten (10)
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect;
or

      
        
          
          

        

        
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      (m)           the
Borrowers shall make any Pre-Petition Payment (whether by way of adequate
protection or otherwise) of principal or interest or otherwise on account of any
pre-petition Indebtedness or payables other than Pre-Petition Payments
authorized by the Bankruptcy Court in respect of: (i) accrued payroll and
related employee benefit expenses as of the Filing Date, (ii) reclamation claims
in such amounts as determined by the Borrowers and agreed to by the
Administrative Agent; (iii) materialmen’s liens and certain other pre-petition
claims permitted by the Administrative Agent and authorized by the Bankruptcy
Court in an aggregate amount not to exceed $500,000, (iv) the payment of current
interest and letter of credit fees (and the payment of all interest and fees
that are accrued and unpaid as of the Filing Date) at the applicable non-default
rates provided for pursuant to the Pre-Petition Credit Agreement, all as
described in the Borrowers’ Motion for Interim and Final
Orders (I) Authorizing Debtors to (A) Obtain Postpetition Financing pursuant to
11 U.S.C. §§ 105, 361, 362, 363, 364(C)(1), 364(C)(2), 364(C)(3) and 364(d)(1),
and (B) Utilize Cash Collateral pursuant to 11 U.S.C. § 363, (II) Granting
Adequate Protection to Prepetition Secured Parties pursuant to 11 U.S.C. §§ 361,
362 and 363 and (III) Scheduling Final Hearing pursuant to Fed. R. Bankr. P.
4001(c), and as authorized by the Orders, (v) payments in respect of
prepetition claims of taxing authorities in an aggregate amount not to exceed
$3,000,000 as described in the Borrowers’ Motion for Order under 11
U.S.C. §§ 363, 507 and 541 Confirming Authority to Pay Prepetition Sales and Use
Taxes, (vi) payments in respect of certain prepetition real property tax
claims and other secured claims that are accruing collectible postpetition
interest in an aggregate amount not to exceed $12,000,000 as described in
Borrowers’ Motion for
an Order Granting Authority to Compromise and Pay Certain Tax and Other Claims
that are Accruing Collectible Postpetition Interest and/or Penalties, and
as authorized by the Order Granting Authority to
Compromise and Pay Certain Tax and Other Claims that are Accruing Collectible
Postpetition Interest and/or Penalties entered by the Bankruptcy Court on
October 4, 2005, (vii) payments in an amount not to exceed $2,000,000 which are
authorized to be made by that certain Order Pursuant to 11 U.S.C.
§§ 362 and 363 and Fed. R. Bankr. P. 9019 (A) Granting Relief From Automatic
Stay, (B) Approving the Debtor’s Settlement Agreement with Mitchell Fishlowitz,
on behalf of Himself Individually, and as Representative of a Class of
Individuals Similarly Situated, and (C) Conditionally Allowing Claims Pursuant
to the Settlement Agreement, and (viii) payments in an amount not to
exceed $1,500,000 to the Central States Southwest Areas Health and Welfare Fund
and Southeast and Southwest Areas Pension Fund pursuant to any settlement of any
pre-petition claims of such funds as approved by the Bankruptcy Court;
or

       

      (n)           any
Termination Event (other than as a result of or solely with respect to the ABA
Pension Plan, to the extent the Insufficiency of the ABA Pension Plan does not
exceed $80,000,000) described in clauses (iii) or (iv) of the definition of such
term shall have occurred and shall continue unremedied for more than ten (10)
days and the sum (determined as of the date of occurrence of such Termination
Event) of the Insufficiency of the Plan in respect of which such Termination
Event shall have occurred and be continuing and the Insufficiency of any and all
other Plans with respect to which such a Termination Event (described in such
clauses (iii) or (iv)) shall have occurred and then exist is equal to or greater
than $500,000; or

       

      
        
          
          

        

        
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      (o)           (i)
any Borrower or any ERISA Affiliate thereof shall have been notified by the
sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to
such Multiemployer Plan, (ii) such Borrower or such ERISA Affiliate does not
have reasonable grounds to contest such Withdrawal Liability and is not in fact
contesting such Withdrawal Liability in a timely and appropriate manner, and
(iii) the amount of such Withdrawal Liability specified in such notice, when
aggregated with all other amounts required to be paid to Multiemployer Plans in
connection with Withdrawal Liabilities (determined as of the date of such
notification), exceeds $4,000,000 allocable to post-petition obligations or
requires payments exceeding $1,000,000 per annum in excess of the annual
payments made with respect to such Multiemployer Plans by such Borrower or such
ERISA Affiliate for the plan year immediately preceding the plan year in which
such notification is received; or

       

      (p)           any
Borrower or any ERISA Affiliate thereof shall have been notified by the sponsor
of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is
being terminated, within the meaning of Title IV of ERISA, if as a result of
such reorganization or termination the aggregate annual contributions of such
Borrower and its ERISA Affiliates to all Multiemployer Plans that are then in
reorganization or being terminated have been or will be increased over the
amounts contributed to such Multiemployer Plans for the plan years that include
the date hereof by an amount exceeding $5,000,000; or

       

      (q)           any
Borrower or any ERISA Affiliate thereof shall have committed a failure described
in Section 302(f)(1) of ERISA (other than (i) the failure to make any
contribution accrued and unpaid as of the Filing Date and (ii) solely as a
result of or with respect to the ABA Pension Plan to the extent that any special
assessments for such accrued and unpaid contributions do not exceed $38,000,000)
and the amount determined under Section 302(f)(3) of ERISA is equal to or
greater than $500,000; or

       

      (r)           it
shall be determined (whether by the Bankruptcy Court or by any other judicial or
administrative forum) that any Borrower is liable for the payment of claims
arising out of any failure to comply (or to have complied) with applicable
Environmental Laws the payment of which will have a Material Adverse Effect and
the enforcement thereof shall not have been stayed; or

       

      then,
and in every such event and at any time thereafter during the continuance of
such event, and without further order of or application to the Bankruptcy Court,
the Administrative Agent may, and at the request of the Required Lenders, shall,
take one or more of the following actions without further order of or
application to the Court, provided that with
respect to item (iv) below and the enforcement of liens or other remedies with
respect to collateral referred to in item (v) below, the Administrative Agent
shall provide the Borrowers (with a copy to counsel for the Official Creditors’
Committee appointed in any of the Cases and to the United States Trustee for the
Bankruptcy Court’s District) with five (5) business days’ prior written notice
(the “Default
Notice”): (i) terminate forthwith the Total Commitment; (ii) declare the
Loans then outstanding to be forthwith due and payable, whereupon the principal
of the Loans together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of the Borrowers accrued hereunder and under any other
Loan Document, shall become forthwith due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrowers, anything contained herein or in any other
Loan Document to the 

      
        
          
          

        

        
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      contrary
notwithstanding; (iii) require the Borrowers upon demand to forthwith deposit in
the Letter of Credit Account cash in an amount which, together with any amounts
then held in the Letter of Credit Account, is equal to the sum of 105% of the
then Letter of Credit Outstandings (and to the extent the Borrowers shall fail
to furnish such funds as demanded by the Administrative Agent, the
Administrative Agent shall be authorized to debit the accounts of the Borrowers
maintained with the Administrative Agent in such amount five (5) Business Days
after the giving of the notice referred to above (the “Default
Notice Period”)); (iv) set-off amounts in the Letter of Credit Account or
any other accounts maintained with the Administrative Agent or any other Lender
or their affiliates and apply such amounts to the obligations of the
Borrowers  hereunder and in the other Loan Documents; and/or (v)
exercise any and all remedies (including, without limitation, with respect to
the Liens in favor of the Administrative Agent and the Lenders) under the Loan
Documents and under applicable law available to the Administrative Agent and the
Lenders.  Any payments received by the Administrative Agent or any
Lender after the occurrence and during the continuance of an Event of Default,
and/or as a result of the exercise of remedies hereunder, shall be applied
without further order of or application to the Bankruptcy Court, as
follows:  first to fees and
expenses payable pursuant to this Agreement; second to principal
and interest accrued under Loans that constitute Tranche A Usage; third to deposit an
amount in the Letter of Credit Account up to 105% of the then Letter of Credit
Outstandings that constitute Tranche A Usage; fourth to principal
and interest accrued under Loans that constitute Tranche B Usage; and fifth to deposit an
amount in the Letter of Credit Account up to 105% of the then Letter of Credit
Outstandings that constitute Tranche B Usage.

       

      SECTION
8.           THE
ADMINISTRATIVE AGENT

       

      SECTION
8.1                  Administration by
Administrative Agent.  The general administration of the Loan
Documents shall be performed by the Administrative Agent.  Each Lender
hereby irrevocably authorizes the Administrative Agent, at its discretion, to
take or refrain from taking such actions as agent on its behalf and to exercise
or refrain from exercising such powers under the Loan Documents as are delegated
by the terms hereof or thereof, as appropriate, together with all powers
reasonably incidental thereto (including the release of Collateral in connection
with any transaction that is expressly permitted by the Loan
Documents).  The Administrative Agent shall have no duties or
responsibilities except as set forth in this Agreement and the remaining Loan
Documents.

       

      SECTION
8.2                  Advances and
Payments.

       

      (a)           On
the date of each Loan, the Administrative Agent shall be authorized (but not
obligated) to advance, for the account of each of the Lenders, the amount of the
Loan to be made by it in accordance with its Commitment
hereunder.  Should the Administrative Agent do so, each of the Lenders
agrees forthwith to reimburse the Administrative Agent in immediately available
funds for the amount so advanced on its behalf by the Administrative Agent,
together with interest at the Federal Funds Effective Rate if not so reimbursed
on the date due from and including such date but not including the date of
reimbursement.

      
        
          
          

        

        
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      (b)           Any
amounts received by the Administrative Agent in connection with this Agreement
(other than amounts to which the Administrative Agent is entitled pursuant to
Sections 2.19, 8.6,
9.5 and 9.6), the application
of which is not otherwise provided for in this Agreement, shall be applied as
follows: first,
in accordance with each Lender’s Commitment Percentage to pay accrued but unpaid
Commitment Fees or Letter of Credit Fees; and second, in accordance
with each Lender’s Commitment Percentage to pay accrued but unpaid interest and
the principal balance outstanding and all unreimbursed Letter of Credit
drawings.  All amounts to be paid to a Lender by the Administrative
Agent shall be credited to that Lender, after collection by the Administrative
Agent, in immediately available funds either by wire transfer or deposit in that
Lender’s correspondent account with the Administrative Agent, as such Lender and
the Administrative Agent shall from time to time agree.

       

      SECTION
8.3                  Sharing of
Setoffs.

       

      (a)           Each
Tranche A Lender agrees that if it shall, through the exercise of a right of
banker’s lien, setoff or counterclaim against the Borrowers, including, but not
limited to, a secured claim or other security or interest arising from, or in
lieu of, such secured claim and received by such Lender under any applicable
bankruptcy, insolvency or other similar law, or otherwise, obtain payment in
respect of its Loans as a result of which the unpaid portion of its Loans is
proportionately less than the unpaid portion of the Loans of any other Tranche A
Lender (x) it shall promptly purchase at par (and shall be deemed to have
thereupon purchased) from such other Tranche A Lender a participation in the
Loans of such other Tranche A Lender, so that the aggregate unpaid principal
amount of each Tranche A Lender’s Loans and its participation in Loans funded
with the Tranche A Commitments of the other Tranche A Lenders shall be in the
same proportion to the aggregate unpaid principal amount of all Loans funded
with the Total Tranche A Commitments then outstanding as the principal amount of
its Tranche A Loans prior to the obtaining of such payment was to the principal
amount of all Loans funded with the Total Tranche A Commitments outstanding
prior to the obtaining of such payment and (y) such other adjustments shall be
made from time to time as shall be equitable to ensure that the Tranche A
Lenders share such payment pro-rata, provided that if any such non-pro-rata
payment is thereafter recovered or otherwise set aside such purchase of
participations shall be rescinded (without interest).  If Tranche A
Usage is zero at such time, each Tranche A Lender agrees that it shall turn over
any such amounts received by it to the Administrative Agent for application to
the Tranche B Usage, ratably in accordance with each Tranche B Lender’s Tranche
B Commitment Percentage to the extent of such amounts received by such Tranche A
Lender.

       

      (b)           Each
Tranche B Lender agrees that if it shall, through the exercise of a right of
banker’s lien, setoff or counterclaim against the Borrowers, including, but not
limited to, a secured claim or other security or interest arising from, or in
lieu of, such secured claim and received by such Tranche B Lender under any
applicable bankruptcy, insolvency or other similar law, or otherwise, obtain
payment in respect of its Loans:

       

      (i)           if
Tranche A Usage is not zero, it shall promptly purchase at par (and shall be
deemed to have thereupon purchased) from each Tranche A Lender, ratably in
accordance with each Tranche A Lender’s Tranche A Commitment Percentage, a
participation in the Loans funded with the Tranche A Commitment of such Tranche
A Lender to the extent of such amounts received by such Tranche B Lender;
and

      
        
          
          

        

        
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      (ii)           if
Tranche A Usage is zero and as a result of such payment the unpaid portion of
its Loans is proportionately less than the unpaid portion of the Loans of any
other Lender (x) it shall promptly purchase at par (and shall be deemed to have
thereupon purchased) from such other Lender a participation in the Loans of such
other Lender, so that the aggregate unpaid principal amount of each Lender’s
Loans and its participation in Loans of the other Lenders shall be in the same
proportion to the aggregate unpaid principal amount of all Loans then
outstanding as the principal amount of its Loans prior to the obtaining of such
payment was to the principal amount of all Loans outstanding prior to the
obtaining of such payment and (y) such other adjustments shall be made from time
to time as shall be equitable to ensure that the Lenders share such payment
pro-rata, provided that if any such non-pro-rata payment is thereafter recovered
or otherwise set aside such purchase of participations shall be rescinded
(without interest).

       

      (c)           Each
of the Borrowers expressly consents to the foregoing arrangements and agrees
that any Lender holding (or deemed to be holding) a participation in a Loan may
exercise any and all rights of banker’s lien, setoff (in each case, subject to
the same notice requirements as pertain to clause (iv) of the remedial
provisions of Section
7.1) or counterclaim with respect to any and all moneys owing by the
Borrowers to such Lender as fully as if such Lender held a Note and was the
original obligee thereon, in the amount of such participation.

       

      SECTION
8.4                  Agreement of Required
Lenders.  Upon any occasion requiring or permitting an
approval, consent, waiver, election or other action on the part of the Required
Lenders, action shall be taken by the Administrative Agent for and on behalf or
for the benefit of all Lenders upon the direction of the Required Lenders, and
any such action shall be binding on all Lenders.  No amendment,
modification, consent, or waiver shall be effective except in accordance with
the provisions of Section
9.10.

       

      SECTION
8.5                  Liability of Administrative
Agent.

       

      (a)           The
Administrative Agent, when acting on behalf of the Lenders, may execute any of
its respective duties under this Agreement by or through any of its respective
officers, agents, and employees, and neither the Administrative Agent nor its
directors, officers, agents, employees or Affiliates shall be liable to the
Lenders or any of them for any action taken or omitted to be taken in good
faith, or be responsible to the Lenders or to any of them for the consequences
of any oversight or error of judgment, or for any loss, unless the same shall
happen through its gross negligence or willful misconduct.  The
Administrative Agent and its respective directors, officers, agents, employees
and Affiliates  shall in no event be liable to the Lenders or to any
of them for any action taken or omitted to be taken by them pursuant to
instructions received by them from the Required Lenders or in reliance upon the
advice of counsel selected by it.  Without limiting the foregoing,
neither the Administrative Agent, nor any of its respective directors, officers,
employees, agents or Affiliates shall be responsible to any Lender for the due
execution, validity, genuineness, effectiveness, sufficiency, or enforceability
of, or for any statement, warranty, or representation in, this Agreement, any
Loan Document or any related agreement, document or order, or shall be required
to ascertain or to make any inquiry concerning the performance or observance by
the Borrowers of any of the terms, conditions, covenants, or agreements of this
Agreement or any of the Loan Documents.

      
        
          
          

        

        
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      (b)           Neither
the Administrative Agent nor any of its respective directors, officers,
employees, agents or Affiliates shall have any responsibility to the Borrowers
on account of the failure or delay in performance or breach by any Lender or by
the Borrowers of any of their obligations under this Agreement or any of the
Loan Documents or in connection herewith or therewith.

       

      (c)           The
Administrative Agent, in its capacity as Administrative Agent hereunder, shall
be entitled to rely on any communication, instrument, or document reasonably
believed by such person to be genuine or correct and to have been signed or sent
by a person or persons believed by such person to be the proper person or
persons, and such person shall be entitled to rely on advice of legal counsel,
independent public accountants, and other professional advisers and experts
selected by such person.

       

      SECTION
8.6                  Reimbursement and
Indemnification.  Each Lender agrees (i) to reimburse (x) the
Administrative Agent for such Lender’s Commitment Percentage of any expenses and
fees incurred for the benefit of the Lenders under this Agreement and any of the
Loan Documents, including, without limitation, counsel fees and compensation of
agents and employees paid for services rendered on behalf of the Lenders, and
any other expense incurred in connection with the operations or enforcement
thereof not reimbursed by the Borrowers and (y) the Administrative Agent
for such Lender’s Commitment Percentage of any expenses of the Administrative
Agent incurred for the benefit of the Lenders that the Borrowers have agreed to
reimburse pursuant to Section 9.5 and has
failed to so reimburse and (ii) to indemnify and hold harmless the
Administrative Agent and any of its directors, officers, employees, agents or
Affiliates, on demand, in the amount of its proportionate share, from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses, or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against it
or any of them in any way relating to or arising out of this Agreement or any of
the Loan Documents or any action taken or omitted by it or any of them under
this Agreement or any of the Loan Documents to the extent not reimbursed by the
Borrowers  (except such as shall result from their respective gross
negligence or willful misconduct).

       

      SECTION
8.7                 
Rights of
Administrative Agent.  It is understood and agreed that JPMCB
shall have the same rights and powers hereunder (including the right to give
such instructions) as the other Lenders and may exercise such rights and powers,
as well as its rights and powers under other agreements and instruments to which
it is or may be party, and engage in other transactions with any Borrower, as
though it were not the Administrative Agent of the Lenders under this
Agreement.

       

      SECTION
8.8                  Independent
Lenders.  Each Lender acknowledges that it has decided to enter
into this Agreement and to make the Loans hereunder based on its own analysis of
the transactions contemplated hereby and of the creditworthiness of the
Borrowers and agrees that the Administrative Agent shall bear no responsibility
therefor.

       

      SECTION
8.9                  Notice of
Transfer.  The Administrative Agent may deem and treat a Lender
party to this Agreement as the owner of such Lender’s portion of the Loans for
all purposes, unless and until a written notice of the assignment or transfer
thereof executed by such Lender shall have been received by the Administrative
Agent.

      
        
          
          

        

        
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      SECTION
8.10               
Successor
Administrative Agent.  The Administrative Agent may resign at
any time by giving written notice thereof to the Lenders and the
Borrowers.  Upon any such resignation, the Required Lenders shall have
the right to appoint a successor Administrative Agent, which shall be reasonably
satisfactory to the Borrowers.  If no successor Administrative Agent
shall have been so appointed by the Required Lenders and shall have accepted
such appointment, within thirty (30) days after the retiring Administrative
Agent’s giving of notice of resignation, the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent, which shall
be a commercial bank organized under the laws of the United States of America or
of any State thereof and having a combined capital and surplus of a least
$100,000,000, which shall be reasonably satisfactory to the
Borrowers.  Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement.  After any retiring Administrative
Agent’s resignation hereunder as Administrative Agent, the provisions of this
Section 8 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Administrative Agent under this Agreement. 

       

      SECTION
9.            MISCELLANEOUS

       

      SECTION
9.1                  Notices.  (a)
Except in the case of notices and other communications expressly permitted to be
given by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

       

      (i)           if
to the Borrowers, at Interstate Bakeries Corporation, 12 East Armour Boulevard,
Kansas City, Missouri  64111, Attention of Chief Financial Officer
(Telecopy No. 816-502-4232) and General Counsel (Telecopy No.
816-502-4138);

       

      (ii)           if
to the Administrative Agent, to JPMorgan Chase Bank, Loan and Agency Services
Group, 1111 Fannin, 8th Floor,
Houston, Texas  77002, Attention of Linda Bryant (Telecopy No.
713-750-2892) and Tanya Heeke (Telecopy No. 713-750-2358), with a copy to
JPMorgan Chase Bank, 270 Park Avenue, New York, NY  10017, Attention
of Susan Atkins (Telecopy No. 212-622-4556);

       

      (iii)           if
to JPMCB, as Fronting Bank, to it at JPMorgan Chase Bank, Loan and Agency
Services Group, 1111 Fannin, 8th Floor,
Houston, Texas  77002, Attention of Linda Bryant (Telecopy No.
713-750-2892) and Tanya Heeke (Telecopy No. 713-750-2358), with a copy to
JPMorgan Chase Bank, 270 Park Avenue, New York, NY  10017, Attention
of Susan Atkins (Telecopy No. 212-622-4556); and

       

      (iv)           if
to any Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

      
        
          
          

        

        
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      (b)           Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices
pursuant to Section 2 unless otherwise agreed by the Administrative Agent and
the applicable Lender.  The Administrative Agent or the Borrowers may,
in their respective discretion, agree to accept notices and other communications
to it hereunder by electronic communications pursuant to procedures approved by
them; provided
that approval of such procedures may be limited to particular notices or
communications.

       

      (c)            Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

       

      SECTION
9.2                  Survival of Agreement,
Representations and Warranties, etc.  All
warranties, representations and covenants made by any Borrower herein or in any
certificate or other instrument delivered by it or on its behalf in connection
with this Agreement shall be considered to have been relied upon by the Lenders
and shall survive the making of the Loans herein contemplated regardless of any
investigation made by any Lender or on its behalf and shall continue in full
force and effect so long as any amount due or to become due hereunder is
outstanding and unpaid and so long as the Commitments have not been
terminated.  All statements in any such certificate or other
instrument shall constitute representations and warranties by the
Borrowers  hereunder with respect to the Borrowers.

       

      SECTION
9.3                  Successors and
Assigns.

       

      (a)           This
Agreement shall be binding upon and inure to the benefit of the Borrowers, the
Administrative Agent and the Lenders and their respective successors and
assigns.  The Borrowers may neither assign nor transfer any of their
rights or obligations hereunder without the prior written consent of all of the
Lenders.  Each Lender may sell participations to any Person in all or
part of any Loan, or all or part of its Commitment, in which event, without
limiting the foregoing, the provisions of Section 2.15 shall
inure to the benefit of each purchaser of a participation (provided that such
participant shall look solely to the seller of such participation for such
benefits and the Borrowers’ liability, if any, under Sections 2.15 and
2.18 shall not
be increased as a result of the sale of any such participation) and the pro rata
treatment of payments, as described in Section 2.17, shall
be determined as if such Lender had not sold such participation.  In
the event any Lender shall sell any participation, such Lender shall retain the
sole right and responsibility to enforce the obligations of each of the
Borrowers relating to the Loans, including, without limitation, the right to
approve any amendment, modification or waiver of any provision of this Agreement
(provided that
such Lender may grant its participant the right to consent to such Lender’s
execution of amendments, modifications or waivers which (i) reduce any Fees
payable hereunder to the Lenders, (ii) reduce the amount of any scheduled
principal payment on any Loan or reduce the principal amount of any Loan or the
rate of interest payable hereunder or (iii) extend the maturity of the
Borrowers’ obligations hereunder).  The sale of any such participation
shall not alter the rights and obligations of the Lender selling such
participation hereunder with respect to the Borrowers.

      
        
          
          

        

        
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      (b)           Subject
to the conditions set forth below, each Lender may assign to one or more Lenders
or Eligible Assignees all or a portion of its interests, rights and obligations
under this Agreement (including, without limitation, all or a portion of its
separate Commitments and the same portion of the related Loans  at the
time owing to it), with the prior written consent (such consent not to be
unreasonably withheld) of:  (A) the Administrative Agent, provided
that no consent of the Administrative Agent shall be required for an assignment
of all or any portion of the Loans to a Lender, an Affiliate of a Lender or an
Approved Fund; and (B) each Fronting Bank.

       

      (c)           Assignments
shall be subject to the following additional conditions:

       

      (i)           except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment
or Loans of any Class, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $1,000,000 or the remaining portion
of such Lender’s Commitment and/or Loans, if less, unless the Administrative
Agent otherwise consents; and

       

      (ii)           the
parties to each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register (as defined below), an
Assignment and Acceptance with blanks appropriately completed, together with a
processing and recordation fee of $3,500 (for which the Borrowers shall have no
liability).  Upon such execution, delivery, acceptance and recording,
from and after the effective date specified in each Assignment and Acceptance,
which effective date shall be within ten (10) Business Days after the execution
thereof (unless otherwise agreed to in writing by the Administrative Agent), (A)
the assignee thereunder shall be a party hereto and, to the extent provided in
such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) the Lender thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender’s rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).

       

      (d)           By
executing and delivering an Assignment and Acceptance, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and
the other parties hereto as follows: (i) other than the representation and
warranty that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim, such Lender assignor makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or any of the other Loan Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any of the other Loan Documents; (ii) such Lender assignor makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrowers or the performance or observance by the
Borrowers of any of its obligations under this Agreement or any of the other

      
        
          
          

        

        
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      Loan
Documents or any other instrument or document furnished pursuant hereto; (iii)
such assignee confirms that it has received a copy of this Agreement and the
other Loan Documents, together with copies of the financial statements and other
materials constituting Disclosed Matters referred to in Section 3.4 and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (iv)
such assignee will, independently and without reliance upon the Administrative
Agent, such Lender assignor or any other Lender 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 this Agreement; (v) such
assignee appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent by the terms thereto, together with such
powers as are reasonably incidental hereof; and (vi) such assignee agrees that
it will perform in accordance with their terms all obligations that by the terms
of this Agreement are required to be performed by it as a Lender.

       

      (e)           The
Administrative Agent shall maintain at its office a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders and the Commitments of, and principal amount of the
Loans owing to, each Lender from time to time (the “Register”).  The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrowers, the Administrative Agent and the Lenders shall treat each
Person the name of which is recorded in the Register as a Lender hereunder for
all purposes of this Agreement.  The Register shall be available for
inspection by the Borrowers or any Lender at any reasonable time and from time
to time upon reasonable prior notice.

       

      (f)           Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and
the assignee thereunder together with the fee payable in respect thereto, the
Administrative Agent shall, if such Assignment and Acceptance has been completed
with blanks appropriately filled and consented to by the Administrative Agent
and the Fronting Bank (to the extent such consent is required hereunder), (i)
accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt written notice thereof
to the Borrowers (together with a copy thereof).  No assignment shall
be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

       

      (g)           Any
Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section 9.3, disclose
to the assignee or participant or proposed assignee or participant, any
information relating to the Borrowers furnished to such Lender by or on behalf
of any of the Borrowers; provided that prior to any such disclosure, each such
assignee or participant or proposed assignee or participant shall agree in
writing to be bound by the provisions of Section
9.4.

       

      (h)           Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section shall not apply to any pledge or assignment of a security
interest, provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

      
        
          
          

        

        
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      SECTION
9.4                
Confidentiality.  Each
Lender agrees to keep any information delivered or made available by any of the
Borrowers to it confidential from anyone other than persons employed or retained
by such Lender who are or are expected to become engaged in evaluating,
approving, structuring or administering the Loans; provided that nothing
herein shall prevent any Lender from disclosing such information (i) to any of
its Affiliates or to any other Lender, provided such
Affiliate agrees to keep such information confidential to the same extent
required by the Lenders hereunder, (ii) upon the order of any court or
administrative agency, (iii) upon the request or demand of any regulatory
agency or authority, (iv) which has been publicly disclosed other than as a
result of a disclosure by the Administrative Agent or any Lender which is not
permitted by this Agreement, (v) in connection with any litigation to which the
Administrative Agent, any Lender, or their respective Affiliates may be a party
to the extent reasonably required, (vi) to the extent reasonably required in
connection with the exercise of any remedy hereunder, (vii) to such Lender’s
legal counsel and independent auditors, and (viii) to any actual or proposed
participant or assignee of all or part of its rights hereunder subject to the
proviso in Section
9.3(g).  Each Lender shall notify the Borrowers of any required
disclosure under clause (ii) of this Section; provided, however, that the
failure of any such Lender to provide such notification shall not limit, alter
or otherwise affect any of the Borrowers’ obligations under this
Agreement.

       

      SECTION
9.5                 Expenses.  Whether
or not the transactions hereby contemplated shall be consummated, the
Borrowers  agree to pay all reasonable expenses incurred by the
Administrative Agent and J.P. Morgan Securities Inc. and the Lenders (including,
without limitation, the reasonable fees and disbursements of Bryan Cave LLP,
counsel for the Administrative Agent, any other counsel that the Administrative
Agent or any of the Lenders shall retain and any internal or third-party
appraisers, consultants and auditors advising the Administrative Agent and J.P.
Morgan Securities Inc. and their counsel) in connection with the preparation,
execution, delivery and administration of this Agreement and the other Loan
Documents, the making of the Loans and the issuance of the Letters of Credit,
the perfection of the Liens contemplated hereby, the syndication of the
transactions contemplated hereby, the costs, fees and expenses of the
Administrative Agent and J.P. Morgan Securities Inc. in connection with the
initial and periodic collateral reviews and appraisals, field audits, monitoring
of assets (including collateral monitoring fees of or incurred by the
Administrative Agent) and publicity expenses, and, following the occurrence of
an Event of Default, all expenses incurred by the Lenders and the Administrative
Agent in the enforcement or protection of the rights of any one or more of the
Lenders or the Administrative Agent in connection with this Agreement or the
other Loan Documents, including but not limited to the fees and disbursements of
any counsel for the Lenders or the Administrative Agent.  Such
payments by the Borrowers  shall be made upon delivery of a statement
setting forth such costs and expenses.  Whether or not the
transactions hereby contemplated shall be consummated, the Borrowers agree to
reimburse the Administrative Agent and J.P. Morgan Securities Inc. for the
expenses set forth in the Commitment Letter and the reimbursement provisions
thereof are hereby incorporated herein by reference.  The obligations
of the Borrowers  under this Section shall survive the termination of
this Agreement and/or the payment of the Loans.

       

      SECTION
9.6                  Indemnity.  Each
of the Borrowers agree to indemnify and hold harmless the Administrative Agent,
J.P. Morgan Securities Inc. and the Lenders and their directors, officers,
employees, trustees, advisors, agents and Affiliates (each an “Indemnified

      
        
          
          

        

        
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      Party”)
from and against any and all expenses, losses, claims, damages and liabilities
incurred by such Indemnified Party arising out of claims made by any Person in
any way relating to the transactions contemplated hereby, but excluding
therefrom all expenses, losses, claims, damages, and liabilities to the extent
that they are determined by the final judgment of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
such Indemnified Party.  The obligations of the
Borrowers  under this Section shall survive the termination of this
Agreement and/or the payment of the Loans.

       

      SECTION
9.7                  Choice of
Law.  THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS SHALL IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK, APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED WHOLLY WITHIN SUCH STATE AND THE BANKRUPTCY CODE.

       

      SECTION
9.8                  No
Waiver.  No failure on the part of the Administrative Agent or
any of the Lenders to exercise, and no delay in exercising, any right, power or
remedy hereunder or any of the other Loan Documents shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy.  All remedies hereunder are cumulative
and are not exclusive of any other remedies provided by law.

       

      SECTION
9.9                  Extension of
Maturity.  Should any payment of principal of or interest or
any other amount due hereunder become due and payable on a day other than a
Business Day, the maturity thereof shall be extended to the next succeeding
Business Day and, in the case of principal, interest shall be payable thereon at
the rate herein specified during such extension.

       

      SECTION
9.10                Amendments, etc.

       

      (a)           No
modification, amendment or waiver of any provision of this Agreement or the
Security and Pledge Agreement, and no consent to any departure by the Borrowers
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given;
provided, however, that no such
modification or amendment shall without the written consent of the Lender
affected thereby (x) increase the Commitment of a Lender (it being
understood that a waiver of an Event of Default shall not constitute an increase
in the Commitment of a Lender), or (y) reduce the principal amount of any Loan
(or any unreimbursed Letter of Credit) or the rate of interest payable thereon,
or extend any date for the payment of interest, principal or fees hereunder or
reduce any Fees payable hereunder or extend the final maturity of the Borrowers’
obligations hereunder; and, provided, further, that no such
modification or amendment shall without the written consent of (A) all of the
Lenders (i) amend or modify any provision of this Agreement which provides for
the unanimous consent or approval of the Lenders, (ii) amend this Section 9.10 or
the definition of Required Lenders or Super-majority Lenders, (iii) amend or
modify the Superpriority Claim status of the Lenders contemplated by Section 2.23, or (iv)
amend any provision that sets forth the priority of payment as among Tranche A
Lenders and Tranche B Lenders or that concerns the relative rights of Tranche A
Lenders and Tranche B 

      
        
          
          

        

        
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      Lenders
or (B) the Super-majority Lenders (i) release any material portion of the
Collateral from the Liens created under the Security and Pledge Agreement (other
than with respect to asset sales permitted under Section 6.11),
(ii) release any Borrower from its joint and several obligations under
Section 2.7,
(iii) alter the eligibility standards used in determining the Borrowing Base in
a manner which would increase the amount of the Borrowing Base, or (iv) increase
the advance rates in calculation of the Borrowing Base.  No such
amendment or modification may adversely affect the rights and obligations of the
Administrative Agent or any Fronting Bank hereunder or any Lender in the
capacity referred to in Section 6.3(v)
without its prior written consent.  No notice to or demand on any
Borrower  shall entitle any Borrower  to any other or
further notice or demand in the same, similar or other
circumstances.  Each assignee under Section 9.3(b) shall
be bound by any amendment, modification, waiver, or consent authorized as
provided herein, and any consent by a Lender shall bind any Person subsequently
acquiring an interest on the Loans held by such Lender.  No amendment
to this Agreement shall be effective against any Borrower unless in writing and
signed by such Borrower.

       

      (b)           Notwithstanding
anything to the contrary contained in Section 9.10(a), in
the event that any Borrower requests that this Agreement be modified or amended
in a manner which would require the unanimous consent of all of the Lenders or
the consent of the Super-majority Lenders and such modification or amendment is
agreed to by the Consenting Lenders (as hereinafter defined), then with the
consent of the Borrowers and the Consenting Lenders, the Borrowers and the
Consenting Lenders shall be permitted to amend the Agreement without the consent
of the Lender or Lenders which did not agree to the modification or amendment
requested by such Borrower (such Lender or Lenders, collectively the “Minority
Lenders”) to provide for (w) the termination of the Commitment of each of
the Minority Lenders, (x) the addition to this Agreement of one or more other
financial institutions (each of which shall be an Eligible Assignee), or an
increase in the Commitment of one or more of the Consenting Lenders, so that the
Total Commitment after giving effect to such amendment shall be in the same
amount as the Total Commitment immediately before giving effect to such
amendment, (y) if any Loans are outstanding at the time of such amendment, the
making of such additional Loans by such new financial institutions or Consenting
Lender or Lenders, as the case may be, as may be necessary to repay in full the
outstanding Loans of the Minority Lenders immediately before giving effect to
such amendment and (z) such other modifications to this Agreement as may be
appropriate.  As used herein, the term “Consenting
Lenders” shall mean, at any time, Lenders, including JPMCB, holding Loans
representing at least 66-2/3% of the aggregate principal amount of the Loans
outstanding, or if no Loans are outstanding, Lenders, including JPMCB, having
Commitments representing at least 66-2/3% of the Total Commitment.

       

      SECTION
9.11                Severability.  Any
provision of this Agreement 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
9.12                Headings. Section
headings used herein are for convenience only and are not to affect the
construction of or be taken into consideration in interpreting this
Agreement.

      
        
          
          

        

        
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      SECTION
9.13                Execution in
Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall constitute an original, but all of which taken
together shall constitute one and the same instrument.

       

      SECTION
9.14                Prior Agreements;
Inconsistencies.  All
Letters of Credit issued and outstanding under the Prior Agreement as of the
initial extension of credit under this Agreement and all borrowings outstanding
thereunder on such date shall be deemed to be issued and outstanding under this
Agreement and allocated pro rata among the Lenders in accordance with their
Commitment Percentages.  The Lenders acknowledge (a) their respective
rights in amounts on deposit in the Letter of Credit Account as of the Closing
Date and (b) that as of the Closing Date, Total Usage under the Prior Agreement
shall constitute Tranche A Usage and Tranche B Usage as set forth on Schedule
9.14.  Each reference to the Prior Agreement in any other Loan
Document shall, without further amendment, be deemed to be a reference to this
Agreement.  This Agreement represents the entire agreement of the
parties with regard to the subject matter hereof and the terms of any letters
and other documentation entered into between any Borrower and any Lender or the
Administrative Agent prior to the execution of this Agreement which relate to
Loans to be made hereunder shall be replaced by the terms of this Agreement
(except as otherwise expressly provided herein with respect to the Commitment
Letter and the fee letter referred to therein, including without limitation the
Borrowers’ agreement to actively assist the Administrative Agent in the
syndication of the transactions contemplated hereby referred to in Section 9.3(g) and
including also the provisions of Section
2.19).  In the event of any conflicts between the express
provisions of this Agreement and the Orders, the provisions of the Orders shall
control to the extent of any such inconsistency.  In the event of any
conflicts between the express provisions of this Agreement and the Security
Agreement, the provisions of this Agreement shall control to the extent of any
such inconsistency.

       

      SECTION
9.15                Further
Assurances.  Whenever and so often as reasonably requested by
the Administrative Agent, the Borrowers  will promptly execute and
deliver or cause to be executed and delivered all such other and further
instruments, documents or assurances, and promptly do or cause to be done all
such other and further things as may be necessary and reasonably required in
order to further and more fully vest in the Administrative Agent all rights,
interests, powers, benefits, privileges and advantages conferred or intended to
be conferred by this Agreement and the other Loan Documents.

       

      SECTION
9.16               Waiver of Jury
Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREBY.

       

      SECTION
9.17                Subordination of
Intercompany Indebtedness.  Each
of the Borrowers agree that any and all Intercompany Indebtedness owed to any
Borrower shall be subordinate and subject in right of payment to the prior
payment, in full and in cash, of all Obligations.  Notwithstanding any
right of any Borrower to ask, demand, sue for, take or receive any payment in
respect of any Intercompany Indebtedness owed to any Borrower , any and all
rights, liens and security interests of any Borrower, whether now or hereafter
arising and howsoever existing, in any assets of any other Subsidiary of Parent
(whether constituting part of 

      
        
          
          

        

        
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      Collateral
given to the Administrative Agent for the benefit of the Lenders to secure
payment of all or any part of the Obligations or otherwise) shall be and are
subordinated to the rights of the Administrative Agent and the Lenders in those
assets.  No Borrower shall have any right to possession of any such
asset or to foreclose upon any such asset, whether by judicial action or
otherwise, unless and until all of the Obligations (other than contingent
indemnity obligations) shall have been fully paid and satisfied and all
financing arrangements among the Borrowers and the Lenders have been
terminated.  So long as any Event of Default shall have occurred and
be continuing, then, any payment or distribution of any kind or character,
either in cash, securities or other property, which shall be payable or
deliverable upon or with respect to any Intercompany Indebtedness owed by any
Borrower shall be paid or delivered directly to the Administrative Agent for
application on any of the Obligations, due or to become due, until such
Obligations (other than contingent indemnity obligations) shall have first been
fully paid and satisfied.  Each of the Borrowers irrevocably authorize
and empower the Administrative Agent to demand, sue for, collect and receive
every such payment or distribution and give acquittance therefor and to make and
present for and on behalf of any Borrower such proofs of claim and take such
other action, in the Administrative Agent’s own name or in the name of the
applicable Borrower or otherwise, as the Administrative Agent may deem necessary
or advisable for the enforcement of this Section
9.17.  The Administrative Agent may vote such proofs of claim
in any such proceeding, receive and collect any and all dividends or other
payments or disbursements made thereon in whatever form the same may be paid or
issued and apply the same on account of any of the
Obligations.  Should any payment, distribution, security or instrument
or proceeds thereof be received by any Borrower  upon or with respect
to the Intercompany Indebtedness at any time an Event of Default shall have
occurred and be continuing and prior to the satisfaction of all of the
Obligations and the termination of all financing arrangements among the
Borrowers and the Lenders, the applicable Borrower shall receive and hold the
same in trust, as trustee, for the benefit of the Lenders and shall so long as
any Event of Default shall have occurred and be continuing promptly deliver the
same to the Administrative Agent, for the benefit of the Lenders, in precisely
the form received (except for the endorsement or assignment of the applicable
Borrower where necessary), for application to any of the Obligations, due or not
due, and, until so delivered, the same shall be held in trust by the applicable
Borrower as the property of the Lenders.  If any Borrower fails to
make any such endorsement or assignment to the Administrative Agent, the
Administrative Agent or any of its officers or employees are irrevocably
authorized to make the same.  So long as any Event of Default shall
have occurred and be continuing, the Borrowers  agree that until the
Obligations have been paid in full (in cash) and satisfied and all financing
arrangements among the Borrowers and the Lenders have been terminated, the
Borrowers will neither assign nor transfer to any Person (other than the
Administrative Agent) any claim the Borrowers have or may have against any other
Subsidiary of the Parent Borrower.

       

      SECTION
9.18                Certain Post Closing
Matters.

       

      (a)           Notwithstanding
anything to the contrary contained in this Agreement, within thirty (30) days
after the Closing Date or such later date to which the Administrative Agent
shall, in its exclusive discretion, agree in writing, the Borrowers shall
deliver to the Administrative Agent amendments to the mortgages of record in
favor of the Collateral Agent in form and substance reasonably satisfactory to
the Administrative Agent, together with such updated title commitments and
related real estate due diligence materials as the Administrative Agent may
request in accordance with the definition of Eligible Real
Property.

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

      (b)           Notwithstanding
anything to the contrary contained in this Agreement, within forty-five (45)
days after the Closing Date or such later date to which the Administrative Agent
shall, in its exclusive discretion, agree in writing, the Borrowers shall
deliver to the Administrative Agent good standing certificates reflecting that
the applicable Borrowers are then in good standing in the jurisdictions listed
on Schedule
9.18(b).

       

      (c)           All
conditions precedent and representations contained in the Loan Documents shall
be deemed modified to the extent necessary to effect the foregoing (and to
permit the taking of the actions described above within the time periods
required above); provided, that to the
extent any representation and warranty would not be true because the foregoing
actions were not taken on the Closing Date, the respective representation and
warranty shall be required to be true and correct at the time the respective
action is taken in accordance with the foregoing provisions of this Section
9.18.  The acceptance of the benefits of the making of each
Loan and the issuance of each Letter of Credit shall constitute a
representation, warranty and covenant by the Borrowers to each of the Lenders
that the actions required pursuant to this Section 9.18 will be
taken within the relevant time periods referred to in this Section 9.18 and
that, at such time, all representations and warranties contained in this
Agreement shall then be true and correct without any modification pursuant to
this Section
9.18.

       

      SECTION
9.19                USA Patriot
Act.  Each
Lender hereby notifies the Borrowers that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”),
it is required to obtain, verify and record information that identifies the
Borrowers, which information includes the name and address of the Borrowers and
other information that will allow such Lender to identify the Borrower in
accordance with the Act.

       

      

       

      

       

      [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

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

      

      
        	 
    	
                BORROWERS:

              
	 
    	 
    
	 
    	
                INTERSTATE
      BAKERIES CORPORATION

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Senior
      Vice President, Chief Financial Officer and Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:  43-1470322

              
	 
    	 
    
	 
    	 
    
	 
    	
                ARMOUR
      AND MAIN REDEVELOPMENT CORPORATION

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:  43-1790536

              
	 
    	 
    
	 
    	 
    
	 
    	
                BAKER’S
      INN QUALITY BAKED GOODS, LLC

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:

              

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      
        	 
    	
                IBC
      SALES CORPORATION

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Senior
      Vice President, Chief Financial Officer and Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:  02-0723634

              
	 
    	 
    
	 
    	 
    
	 
    	
                IBC
      SERVICES, LLC

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:  02-0723639

              
	 
    	 
    
	 
    	 
    
	 
    	
                IBC
      TRUCKING, LLC

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

              
	 
    	 
    
	 
    	
                FEIN:  43-1828328

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      
        	 
    	
                INTERSTATE
      BRANDS CORPORATION

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Senior
      Vice President, Chief Financial Officer and Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:  44-0296705

              
	 
    	 
    
	 
    	 
    
	 
    	
                NEW
      ENGLAND BAKERY DISTRIBUTORS, L.L.C.

              
	 
    	 
    
	 
    	
                By:

              	
                /s/
      J. Randall Vance

              
	 
    	
                Name:

              	
                J.
      Randall Vance

              
	 
    	
                Title:

              	
                Treasurer

              
	 
    	
                12
      East Armour Boulevard

                P.O.
      Box 419627

                Kansas
      City, Missouri 64141

                 

                FEIN:

              
	 
    	 
    
	 
    	 
    

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      
        	 
    	
                LENDERS:

              
	 
    	 
    
	 
    	
                JPMORGAN
      CHASE BANK,

              
	 
    	
                Individually
      and as Administrative Agent

              
	 
    	 
    	 
    
	 
    	
                By:

              	
                /s/
      Susan E. Atkins

              
	 
    	
                Name:

              	
                Susan
      E. Atkins

              
	 
    	
                Title:

              	
                Managing
      Director

              
	 
    	 
    

      

      

      
        

        
          	 
    	
                  THE
      FOOTHILL GROUP, INC.

                
	 
    	
                   

                
	 
    	 
    	 
    
	 
    	
                  By:

                	
                  /s/
      Dennis R. Ascher

                
	 
    	
                  Name:

                	
                  Dennis
      R. Ascher

                
	 
    	
                  Title:

                	
                  Sr.
      VP

                
	 
    	 
    

        

        

          
            

            
              	 
    	
                      SPF
      CDO I, LTD.

                    
	 
    	
                       

                    
	 
    	 
    	 
    
	 
    	
                      By:

                    	
                      /s/
      Michael Gatto

                    
	 
    	
                      Name:

                    	
                      Michael
      Gatto

                    
	 
    	
                      Title:

                    	
                      Authorized
      Signatory

                    
	 
    	 
    

            

            

              
                

                
                  	 
    	
                          SPCP
      GROUP, LLC

                        
	 
    	
                           

                        
	 
    	 
    	 
    
	 
    	
                          By:

                        	
                          /s/
      Michael Gatto

                        
	 
    	
                          Name:

                        	
                          Michael
      Gatto

                        
	 
    	
                          Title:

                        	
                          Authorized
      Signatory

                        
	 
    	 
    

                

                

                  
                     

                    
                      
                        
                          	 
    	
                                  MONARCH
      MASTER FUNDING LTD.

                                
	 
    	
                                  By: 
      Monarch Alternative Capital LP

                                
	 	Its: 
      Advisor 
	 
    	 
    	 
    
	 
    	
                                  By:

                                	
                                  /s/
      Michael Weinstock

                                
	 
    	
                                  Name:

                                	
                                  Michael
      Weinstock

                                
	 
    	
                                  Title:

                                	
                                  Managing
      Principal

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