Document:

ex10_1.htm

    Exhibit 10.1

    

 

    

    

    

    

    

                                                                                                                             

     

    April
17 , 2008

    

    Second Amended and Restated
Revolving Credit and Letter of Credit Facility

    Commitment
Letter

    

    Interstate
Bakeries Corporation

    12
East Armour Boulevard

    Kansas
City, Missouri  64112

    

    

    Attention:     Mr.
J. Randall Vance

                      
Senior Vice President, Chief Financial Officer and Treasurer

    

    Ladies
and Gentlemen:

    

    We refer to the proposed Second Amended
and Restated Revolving Credit Agreement (the “Amended Credit
Agreement”) by and 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, each of the direct and indirect subsidiaries
of the Parent Borrower party to the Amended and Restated Revolving Credit
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, JPMorgan Chase Bank, N.A., a national banking association
(“JPMCB”), as
administrative agent and as collateral agent for the Lenders, and each of the
other commercial banks, finance companies, insurance companies or other
financial institutions or funds from time to time party thereto.  The
proposed Amended Credit Agreement will amend and restate that certain Amended
and Restated Credit Agreement dated as of February 16, 2007 among the Borrowers,
JPMCB, as administrative agent and as collateral agent for the lenders, and each
of the lenders party thereto, as set forth therein.

    

    The Borrowers have requested that J.P.
Morgan Securities Inc. ("JPMorgan"), agree to
structure an amended and restated senior revolving credit facility in an
aggregate amount of up to $250,000,000 (the "Facility"), subject
to reduction as provided in the Term Sheet, and that JPMCB commit to provide a
portion of the Facility and to serve as administrative agent for the
Facility.

    

    Each of the undersigned lenders (the
“Lenders”) is
pleased to advise you of its commitment to provide that portion of the Facility
set forth opposite its name on Schedule B to the Term Sheet (as defined below)
upon the terms and subject to the conditions set forth or referred to in this
commitment letter (the "Commitment Letter")
and in the Summary of Terms and Conditions attached hereto as Exhibit A (the
"Term
Sheet").  It is a condition to each Lender’s commitment
hereunder that the portion of the Facility not being provided by such Lender
shall be provided by the other Lenders referred to below.

     

     

    
      
        
        

      

      
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    As consideration for the Lenders’
commitments hereunder and JPMorgan's agreement to perform the services described
herein, you agree,
jointly and severally, to pay the nonrefundable fees set forth in the Term Sheet
and in the Fee Letter dated April 17, 2008 (the "Fee
Letter").

    

    The Lenders’ commitments hereunder and
JPMorgan's agreement to perform the services described herein are subject to (a)
the negotiation, execution and delivery on or before May 16, 2008 of definitive
documentation with respect to the Facility satisfactory to JPMCB and its counsel
and (b) the other conditions set forth or referred to in the Term
Sheet.  The terms and conditions of the Lenders’ commitments hereunder
and of the Facility are not limited to those set forth herein and in the Term
Sheet.  Those matters that are not covered by the provisions hereof
and of the Term Sheet are subject to the approval and agreement of JPMCB,
JPMorgan, the other Lenders and the Borrowers.

    

    Borrowers agree, jointly and severally,
(a) to indemnify and hold harmless the Lenders, JPMorgan and their respective
affiliates and their respective officers, directors, employees, advisors, and
agents (each, an "indemnified person")
from and against any and all losses, claims, damages and liabilities to which
any such indemnified person may become subject arising out of or in connection
with this Commitment Letter, the Facility, the use of the proceeds thereof or
any related transaction or any claim, litigation, investigation or proceeding
relating to any of the foregoing, regardless of whether any indemnified person
is a party thereto, and to reimburse each indemnified person upon demand for any
legal or other expenses incurred in connection with investigating or defending
any of the foregoing, provided that the
foregoing indemnity will not, as to any indemnified person, apply to losses,
claims, damages, liabilities or related expenses to the extent they are found by
a final, non-appealable judgment of a court to arise from the willful misconduct
or gross negligence of such indemnified person, and (b) to reimburse JPMCB,
JPMorgan and their affiliates on demand for all out-of-pocket expenses
(including due diligence expenses, syndication expenses, travel expenses, and
reasonable fees, charges and disbursements of counsel) incurred in connection
with the Facility and any related documentation (including this Commitment
Letter, the Term Sheet, the Fee Letter and the definitive financing
documentation) or the administration, amendment, modification or waiver
thereof.  No indemnified person shall be liable for any indirect or
consequential damages in connection with its activities related to the
Facility.  No indemnified person shall be liable for any damages
arising from the use by others of information provided by or on behalf of the
Borrowers or other materials obtained through electronic, telecommunications or
other information transmission systems or for any special, indirect,
consequential or punitive damages in connection with the Facilities, provided that the
foregoing indemnity will not, as to any indemnified person, apply to losses,
claims, damages, liabilities or related expenses to the extent they are found by
a final, non-appealable judgment of a court to arise from the willful misconduct
or gross negligence of such indemnified person.

    

    This Commitment Letter shall not be
assignable by you without the prior written consent of each Lender and JPMorgan
(and any purported assignment without such consent shall be null and void), is
intended to be solely for the benefit of the parties hereto and is not intended
to confer any benefits upon, or create any rights in favor of, any person other
than the parties hereto.  This Commitment Letter may not be amended or
waived except by an instrument in writing signed by Borrowers, each Lender and
JPMorgan.  This Commitment Letter may be executed in any number of
counterparts, each of which shall be an original, and all of which,

     

     

    
      
        
        

      

      
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    when
taken together, shall constitute one agreement.  Delivery of an
executed signature page of this Commitment Letter by facsimile transmission
shall be effective as delivery of  manually executed counterpart
hereof.  This Commitment Letter and the Fee Letter are the only
agreements that have been entered into among us with respect to the Facility and
set forth the entire understanding of the parties with respect
thereto.  This Commitment Letter shall be governed by, and construed
in accordance with, the laws of the State of New York.

    

    This Commitment Letter is delivered to
you on the understanding that neither this Commitment Letter, the Term Sheet or
the Fee Letter nor any of their terms or substance shall be disclosed, directly
or indirectly, to any other person except (a) to your officers, agents and
advisors who are directly involved in the consideration of this matter, (b) as
may be compelled in a judicial or administrative proceeding or as otherwise
required by law (in which case you agree to inform us promptly thereof) or (c)
to the Bankruptcy Court (as defined in the Term Sheet) in connection with
proceedings relating to the entry of the Amendment Order (as defined in the Term
Sheet).

    

    You acknowledge that JPMorgan, JPMCB
and the other Lenders may be providing debt financing, equity capital or other
services (including financial advisory services) to other companies in respect
of which you may have conflicting interests regarding the transactions described
herein and otherwise.  Each Lender and JPMorgan hereby agrees that it
will not use confidential information obtained from you by virtue of the
transactions contemplated by this letter or their other relationships with you
in connection with the performance by JPMorgan or such Lender of services for
other companies, and neither JPMorgan nor any Lender will furnish any such
information to other companies.  You also acknowledge that JPMorgan
and the Lenders have no obligation to use in connection with the transactions
contemplated by this letter, or to furnish to you, confidential information
obtained from other companies.  Neither JPMorgan nor any Lender will
be liable for a breach of any of the foregoing by another Lender.

    

    The reimbursement, indemnification and
confidentiality provisions contained herein and in the Fee Letter shall remain
in full force and effect regardless of whether definitive financing
documentation shall be executed and delivered and notwithstanding the
termination of this Commitment Letter or any of the Lenders’ commitments
hereunder.

    

    If the foregoing correctly sets forth
our agreement, please indicate your acceptance of the terms hereof and of the
Term Sheet by returning to us executed counterparts hereof not later than 5:00
p.m., New York City time, on April 24, 2008.  The commitments of each
Lender and JPMorgan's agreements herein will expire at such time in the event
JPMCB has not received such executed counterparts in accordance with the
immediately preceding sentence.  Each Lender, by its execution of this
Commitment Letter, acknowledges that it has decided to make its commitment based
on its own analysis of the transactions contemplated by the Term Sheet and of
the creditworthiness of the Borrowers and agrees that the JPMorgan and JPMCB
shall bear no responsibility therefor.

    

    
      
         

      

      
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    The Lenders and JPMorgan are pleased to
have been given the opportunity to assist you in connection with this important
financing.  The obligations and commitments of the Lenders and
JPMorgan hereunder are several and not joint and several.

    

    

    
      	 
    	
              Very
      truly yours,

            
	 
    	 
    
	 
    	
              JPMORGAN
      CHASE BANK

            
	 
    	 
    
	 
    	 
    
	 
    	
              By:

            	/s/
      Susan Atkins	
               

            
	 
    	 
    	
              Name: 
      Susan Atkins

            
	 
    	 
    	
              Title:    
      Managing Director

            
	 
    	 
    
	 
    	 
    
	 
    	
              J.P.
      MORGAN SECURITIES INC.

            
	 
    	 
    
	 
    	 
    
	 
    	
              By:

            	
              /s/
      Norma Corio

            	
               

            
	 
    	 
    	
              Name:  
      Norma Corio

            
	 
    	 
    	
              Title:     Managing
      Director

            

    

    

    

    
      
         

      

      
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              Lender’s
      Name:

            
	 
    
	
              J.P.Morgan
      Chase Bank, N.A.

            
	 
    
	
              By:

            	
              /s/
      Susan E. Atkins

            	 
    
	
              Name:

            	
              Susan
      Atkins

            	 
    
	
              Title:

            	
              Managing
      Director

            	 
    
	 
    
	
              Lender’s
      Name:

            
	 
    
	
              The
      Foothill Group, Inc.

            
	 
    
	
              By:

            	
              /s/
      Dennis R. Ascher

            	 
    
	
              Name:

            	
              Dennis
      R. Ascher

            	 
    
	
              Title:

            	
              Senior
      Vice President

            	 
    
	 
    
	
              Lender’s
      Name:

            
	 
    
	
              SPCP
      Group, LLC

            
	 
    
	
              By:

            	
              /s/
      Fred Fogel

            	 
    
	
              Name:

            	
              Fred
      Fogel

            	 
    
	
              Title:

            	
              Authorized
      Signatory

            	 
    
	 
    
	
              Lender’s
      Name:

            
	 
    
	
              Q
      Funding III, L.P.

            
	 
    
	
              By:
      Prufrock Onshore, L.P., its General Partner

            
	
              By:
      J Alfred Onshore, LLC, its General Partner

            
	 
    
	
              By:

            	
              /s/
      Brandon Teague

            	 
    
	
              Name:

            	
              Brandon
      Teague

            	 
    
	
              Title:

            	
              Assistant
      Secretary

            	 
    
	 
    
	
              Lender’s
      Name:

            
	 
    
	
              Q4
      Funding, L.P.

            
	 
    
	
              By:
      Star Spangled Sprockets, L.P., its General Partner

            
	
              By:
      Excalibur Domestics, LLC, its General Partner

            
	 
    
	
              By:

            	
              /s/
      Brandon Teague

            	 
    
	
              Name:

            	
              Brandon
      Teague

            	 
    
	
              Title:

            	
              Assistant
      Secretary

            	 
    
	 
    
	
              Lender’s
      Name:

            
	 
    
	
              Monarch
      Master Funding Ltd.

            
	 
    
	
              By:
      Monarch Alternative Capital LP, its Advisor

            
	 
    
	
              By:

            	
              /s/
      Andrew Herenstein

            	 
    
	
              Name:

            	
              Andrew
      Herenstein

            	 
    
	
              Title:

            	
              Managing Principal

            	 
    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Accepted
and agreed to as of  the date first
above written:

    

    
      	
              INTERSTATE
      BAKERIES CORPORATION

            
	 
    
	 
    
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Senior
      Vice President, Chief Financial Officer and Treasurer

            
	 
      
	
              ARMOUR
      AND MAIN REDEVELOPMENT CORPORATION

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Treasure

            	 
      
	 
      
	
              BAKER’S
      INN QUALITY BAKED GOODS, LLC

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Treasurer

            	 
      
	 
      
	
              IBC
      SALES CORPORATION

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Senior
      Vice President, Chief Financial Officer and Treasurer

            
	 
      
	
              IBC
      SERVICES, LLC

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Treasurer

            	 
      
	 
      
	
              IBC
      TRUCKING, LLC

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Treasurer

            	 
      
	 
      
	
              INTERSTATE
      BRANDS CORPORATION

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Senior
      Vice President, Chief Financial Officer and Treasurer

            
	 
      
	
              NEW
      ENGLAND BAKERY DISTRIBUTORS, L.L.C.

            
	 
      
	 
      
	
              By:

            	
              /s/
      J. Randall Vance

            	 
      
	
              Name:

            	
              J.
      Randall Vance

            	 
      
	
              Title:

            	
              Treasurer

            	 
    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        

        
          EXHIBIT
A

        
        

        
          Term
Sheet

        

        
        

         

        
          April
17, 2008

        
        

        
          CONFIDENTIAL

        
        

        
          Summary
of Terms and Conditions for

        

        
        

        Second
Amended and Restated Revolving Credit and Letter of Credit Facility

        in the Amount of up
to $250 Million

         

        
        

        
          	
                  Borrowers:

                	
                  Interstate
      Bakeries Corporation, a Delaware corporation (“Parent”), which
      is a debtor-in-possession in a case (the “Parent’s Case”)
      filed on September 22, 2004 (the “Petition Date”)
      under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy
      Code”) (the “Parent
      Borrower”) and each of its subsidiaries listed on Schedule
      A to this summary of terms and conditions (the “Term Sheet”)
      (each a “Subsidiary
      Borrower” and, collectively, the “Subsidiary
      Borrowers”; and together with the Parent Borrower, the “Borrowers”),
      each of which is a debtor-in-possession in a case under the Bankruptcy
      Code in the United States Bankruptcy Court for the Western District of
      Missouri (the “Bankruptcy
      Court”) (together with the Parent’s Case, the “Cases”).  The
      Borrowers are party to an Amended and Restated Revolving Credit Agreement
      dated as of February 16, 2007 with JPMCB as administrative agent and the
      lenders party thereto (as amended from time to time, the “Existing Credit
      Agreement”).

                
	 
    	 
    
	
                  Administrative

                	 
    
	
                  Agent and
      Lenders:

                	
                  JPMorgan
      Chase Bank, N.A. (“Administrative
      Agent” or “JPMCB”) will
      serve as Administrative Agent under the facility contemplated hereby (the
      “Facility”) for
      a syndicate of financial institutions (including JPMCB, the “Lenders”) to be
      arranged by J.P. Morgan Securities Inc. (“JPMorgan”) and
      identified on Schedule B to this Term Sheet.  The Commitments of
      the Lenders shall be several and not joint.

                
	 
    	 
    
	
                  Collateral
      Agent:

                	
                  JPMCB
      will serve as Collateral Agent under the Facility for the
      Lenders.

                
	 
    	 
    
	
                  Commitment

                	 
    
	
                  and
      Avail-

                	 
    
	
                  ability:

                	
                  Subject
      to reduction prior to the Closing Date under the circumstances described
      in this paragraph, a total revolving credit commitment (the “Commitment”;
      the loans made thereunder, the “Loans”) of up
      to $250 million, with a sublimit of $180 million (increased from $150
      million under the Existing Credit Agreement) for standby letters of credit
      to be

                

        

         

        
          
            
            

          

          
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                  issued
      for purposes that are satisfactory to the Administrative Agent
      (collectively, the “Letters of
      Credit”).  The
      Commitment will be comprised of (i) a tranche in the amount of up to $90
      million (“Tranche A”),
      and (ii) a tranche in the amount of up to $160 million (“Tranche B”)
      subdivided into an amount of up to $40 million (“Tranche B1”)
      and an amount of up to $120 million (“Tranche
      B2”).  The Commitment will be reduced by the amount of
      any permanent reduction in the commitment under the Existing Credit
      Agreement occurring on April 17, 2008 or at any time thereafter through
      and including the Closing Date, such reduction to be applied to Tranche A
      and when Tranche A has been reduced to zero to the remaining
      Commitment.   All direct borrowings and letters of credit
      issued under the Amended Credit Agreement (as defined below) will be
      allocated pro rata among the Lenders within the Commitment. All Letters of
      Credit issued and outstanding under the Existing Credit Agreement as of
      the initial extension of credit under the Amended Credit Agreement and all
      borrowings outstanding thereunder on such date shall be deemed to be
      issued and outstanding under the Amended Credit Agreement and allocated
      pro rata among the Lenders within the Commitment.

                
	 
    	 
    
	
                  Documentation:

                	
                  The
      Facility will be made available pursuant to an amended and restated credit
      agreement (the Existing Credit Agreement as so amended and restated, the
      “Amended Credit
      Agreement”) and related documentation in form and substance
      satisfactory to all parties thereto including, without limitation, the
      Administrative Agent (together with the Amended Credit Agreement, the
      “Amended
      Post-Petition Credit Facility Documentation”).

                
	 
    	 
    
	
                  Term:

                	
                  Borrowings
      shall be repaid in full in cash, and the Commitment shall terminate, at
      the earliest of (i) September 30, 2008 (the “Maturity
      Date”), (ii) the substantial consummation (as defined in Section
      1101 of the Bankruptcy Code and which for purposes hereof shall be no
      later than the effective date) of a plan of reorganization (a “Plan”) that is
      confirmed pursuant to an order entered by the Bankruptcy Court or any
      other court having jurisdiction over the Cases (the “Consummation
      Date”), (iii) the filing of a Plan that does not provide for
      payment of all of the Borrowers’ obligations under the Amended Credit
      Agreement in full in cash on the Consummation Date, and (iv) the
      acceleration of the Loans and the termination of the Commitment in
      accordance with the Amended Credit Agreement hereinafter referred to
      (together with the Maturity Date and the Consummation Date, the “Termination
      Date”).

                
	 
    	 
    
	
                  Letters
      of

                	 
    
	
                  Credit:

                	
                  Letters
      of Credit shall be issued for the account of the Borrowers by JPMCB as
      Fronting Bank or by one or more other fronting banks (collectively, the
      “Fronting
      Bank”), each of which shall be reasonably satisfactory to the
      Borrowers and the Administrative Agent.  Letters of Credit shall
      expire no later than three hundred sixty-five (365) days
    after

                

        

         

        
          
            
            

          

          
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                  the
      Maturity Date.  Drafts drawn under Letters of Credit shall be
      reimbursed not later than the first business day following the date of
      draw.  If the Termination Date occurs prior to the expiration of
      any Letter of Credit, each such Letter of Credit shall be replaced and
      returned to the Fronting Bank undrawn and marked “canceled” on or prior to
      the Termination Date, or to the extent that the Borrowers are unable to
      replace any of the Letters of Credit, such Letters of Credit shall be (a)
      secured by a back-to-back letter of credit that is in an amount equal to
      the greater of (i) an amount, as determined by JPMCB, equal to the face
      amount of such Letters of Credit plus the sum of all projected contractual
      obligations to JPMCB and the Lenders of the Borrowers thereunder through
      the expiration date(s) of such Letters of Credit and (ii) 105% of the then
      undrawn stated amount of such Letters of Credit, in a form that is
      satisfactory to the Administrative Agent and the Fronting Bank and issued
      by a bank that is satisfactory to the Administrative Agent and the
      Fronting Bank and/or (b) cash collateralized in an amount equal to the
      greater of (i) an amount, as determined by JPMCB, equal to the face amount
      of such Letters of Credit plus the sum of all projected contractual
      obligations to JPMCB and the Lenders of the Borrowers thereunder through
      the expiration date(s) of such Letters of Credit and (ii) 105% of the face
      amount of such Letters of Credit (“Cash
      Collateralization”) by the deposit of cash in such amount into an
      account established by the Borrowers under the sole and exclusive control
      of the Administrative Agent (“Letter of Credit
      Account”), such cash to be promptly remitted to the Borrowers upon
      the expiration, cancellation or other termination or satisfaction of the
      Borrowers’ reimbursement obligations.  Funds currently on
      deposit in the Letter of Credit Account pursuant to the terms of the
      Existing Credit Agreement shall remain in such Letter of Credit Account
      under and pursuant to the Amended Credit Agreement.  Funds
      deposited in the Letter of Credit Account on April 17, 2008 or at any time
      thereafter through and including the Closing Date, shall be applied to
      Cash Collateralize Letters of Credit outstanding under Tranche A and when
      such Letters of Credit have been fully Cash Collateralized shall be
      applied to Letters of Credit outstanding under the remaining
      Commitment.

                
	 
    	 
    
	
                  Closing
      Date:

                	
                  Amended
      Credit Agreement to be executed and delivered on or prior to May 16, 2008,
      with the Closing Date to occur as promptly as is practicable after the
      entry of the Amendment Order hereinafter referred to, but no later than
      ten (10) days after such entry.

                
	 
    	 
    
	
                  Priority

                	 
    
	
                  and
      Liens:

                	
                  All
      direct borrowings and reimbursement obligations under Letters of Credit
      and in respect of overdrafts hereinafter referred to shall at all
      times:

                

        

        

        
          	 
    	
                           (i)
      pursuant to Section 364(c)(1) of the Bankruptcy Code, be entitled to
      superpriority claim status in the
Cases;

                

        

         

        
          
            
            

          

          
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                            (ii)
      pursuant to Section 364(c)(2) of the Bankruptcy Code, 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 therein, provided that
      following the Termination Date, amounts in the Letter of Credit Account
      shall not be subject to the Carve-Out hereinafter referred
    to;

                
	 
    	 
    
	 
    	
                            (iii)
      pursuant to Section 364(c)(3) of the Bankruptcy Code, be secured by a
      perfected junior lien on all property of the Borrowers that is subject to
      valid and perfected liens in existence on the Petition Date or to valid
      liens in existence on the Petition Date that are perfected subsequent to
      such commencement as permitted by Section 546(b) of the Bankruptcy Code;
      and

                
	 
    	 
    
	 
    	
                            (iv)  pursuant
      to Section 364(d)(1) of the Bankruptcy Code and other than as expressly
      set forth in the Final Order, as hereinafter defined, 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 that certain Amended Credit Agreement dated as of April
      25, 2002 (as amended, supplemented or otherwise modified prior to the
      Petition Date, the “Pre-Petition Credit
      Agreement”), among the Parent Borrower and certain of the
      Subsidiary Borrowers, the lenders from time to time party thereto, JPMCB,
      as administrative agent, and others, and (y) other obligations or
      indebtedness of the Borrowers pursuant to other agreements in an aggregate
      amount in excess of $2.5 million, all of which existing liens under the
      Pre-Petition Credit Agreement and such other agreements and all liens
      junior thereto (collectively, the “Primed Liens”;
      the parties who hold Primed Liens, collectively, the “Primed
      Parties”) shall be primed by and made subject and subordinate to
      the perfected first priority senior priming 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 $2.5 million,

                

        

         

        
          
            
            

          

          
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                  subject
      in each case only to (x) in the event of the occurrence and during the
      continuance of an Event of Default (as defined herein), 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 million (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 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 ((x) and (y), together, 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.  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 the same shall not reduce
      the Carve-Out.

                
	 
    	 
    
	 
    	
                  Subject
      to the priorities set forth 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 shall assign and grant a
      security interest in, hypothecate, mortgage, pledge and set over unto
      JPMCB on behalf of the Lenders all of the right, title and interest of the
      Borrowers, in all of such owned real property and 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 an
      order (the “Amendment
      Order”) approving the amendment and restatement of the Existing
      Credit Agreement.  The Amendment Order (i) shall approve or
      otherwise reaffirm the payment by the Borrowers of all fees contemplated
      thereby 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.  The liens in favor of JPMCB on
      behalf of the Lenders in all of such real property and leasehold
      instruments of the

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	 
    	
                  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 JPMCB, 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
  JPMCB.

                
	 
    	 
    
	 
    	
                  All
      intercompany/affiliate liens, if any, will be contractually subordinated
      to the Facility on terms satisfactory to the Administrative
      Agent.

                
	 	 
	 
    	
                  To
      the extent any Borrower makes aggregate payments to the Lenders in excess
      of the aggregate amount of all loans and advances 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.

                
	
                  Use
      of

                	 
    
	
                  Cash

                	 
    
	
                  Collateral:

                	
                  The
      Commitment shall not be available for use by the Borrowers unless the
      Bankruptcy Court shall have entered the Amendment Order, the terms of
      which order must be reasonably satisfactory to the Administrative Agent
      and the Lenders in their sole discretion.  The Commitment shall
      not be available for direct borrowings unless the Borrowers shall at that
      time have the use of cash collateral for the purposes that are described
      under “Use of
      Proceeds” below.

                
	 
    	 
    
	
                  Use of
      Proceeds:

                	
                  The
      Commitment shall be available 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, in a manner
      substantially consistent with the Budget and the terms and conditions
      described in this Term Sheet.  The Letters of Credit shall be
      issued in support of obligations of the Borrowers that are acceptable to
      the Administrative Agent.

                
	 
    	 
    
	
                  Depository

                	 
    
	
                  Relationship:

                	
                  JPMCB
      shall remain the principal concentration bank of the
      Borrowers.

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          	
                  Approval

                	 
    
	
                  Fee:

                	
                  To
      the Administrative Agent for the account of each Lender, the Borrowers
      will pay (a) for each Lender a fee of fifty (50) basis points on the
      amount of such Lender’s Tranche A Commitments, (b) for each Lender a fee
      of one hundred (100) basis points on the amount of such Lender’s Tranche
      B1 Commitments and (c) for each Lender a fee of five hundred thirty-five
      (535) basis points on the amount of such Lender’s Tranche B2 Commitments,
      such approval fee earned and payable on the Closing
  Date.

                
	 
    	 
    
	
                  Commitment

                	 
    
	
                  Fee:

                	
                  0.50%
      per annum on the unused portion of the Commitment.  In each
      case, the issuance of Letters of Credit shall be treated as usage of the
      Commitment.  Such fees shall be payable monthly in arrears
      during the term of the Facility.

                
	 
    	 
    
	
                  Nature

                	 
    
	
                  of
      Fees:

                	
                  Non-refundable
      under all circumstances.

                
	 	 
	
                  Letter
      of

                	 
    
	
                  Credit
      Fees:

                	
                  Tranche
      A – 3.00% per annum on the undrawn face amount of each Letter of Credit;
      Tranche B -- 4.50% per annum on the undrawn face amount of each Letter of
      Credit, plus, in each
      case, customary fees for fronting, issuance, amendments and
      processing.

                
	 
    	 
    
	
                  Interest

                	 
    
	
                  Rate:

                	
                  Tranche
      A - JPMCB’s Alternate Base Rate (“ABR”) plus 2.00% or,
      at the Borrowers’ option, LIBOR plus 3.00% for
      interest periods of 1, 3 or 6 months; interest shall be payable monthly in
      arrears, at the end of any interest period and on the Termination
      Date.

                
	 
    	 
    
	 
    	
                  Tranche
      B – ABR plus 3.50% or,
      at the Borrowers’ option, LIBOR plus 4.50% for
      interest periods of 1, 3 or 6 months; interest shall be payable monthly in
      arrears, at the end of any interest period and on the Termination
      Date.

                
	 
    	 
    
	
                  Default

                	 
    
	
                  Interest:

                	
                  Upon
      the occurrence and during the continuance of any default in the payment of
      principal, interest or other amounts due under the Amended Credit
      Agreement (including, without limitation, in respect of Letters of
      Credit), interest shall be payable on demand at 2% above the then
      applicable rate.

                
	 
    	 
    
	
                  Borrowing

                	 
    
	
                  Base:

                	
                  The
      sum of the aggregate outstanding amount of Loans
      plus
      Letters of Credit issued for the account of the Borrowers shall at no time
      exceed the Borrowing Base.  The Borrowing Base shall include
      inventory and

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          	 
    	
                  receivables,
      in each case meeting certain eligibility standards initially determined by
      the Administrative Agent, and a component (the “Real Property
      Component”) determined with reference to certain of the Borrowers’
      eligible real property.  Borrowing Base standards may be fixed
      and revised from time to time so as to reduce the amount of the Borrowing
      Base by the Administrative Agent in the Administrative Agent’s exclusive
      judgment.  Any adjustment to Borrowing Base standards that would
      result in an increase in the amount of the Borrowing Base will require the
      consent of a Super-Majority of the Lenders.  The Borrowing Base
      shall initially include an advance rate of 85% against eligible accounts
      receivable and 40% against eligible inventory.  The Real
      Property Component shall at no time exceed $150 million.  The
      Real Property Component of the Borrowing Base shall be subject to
      reduction concurrent with the sale of any assets constituting part of the
      Real Property Component.  The Carve-Out and other reserves,
      including without limitation, an environmental reserve, shall reduce the
      Borrowing Base.

                
	 
    	 
    
	
                  Minimum

                	 
    
	
                  Borrowing:

                	
                  $5
      million for LIBOR Loans and $1 million for ABR Loans, with no more than
      twelve (12) borrowings of LIBOR loans outstanding at any one
      time;  the Administrative Agent must receive (by 12:00 Noon, New
      York City time) notice (x) one (1) business day prior to the requested
      borrowing date for ABR Loans and (y) three (3) business days prior to the
      requested borrowing date for LIBOR Loans; provided that same day
      borrowings of ABR Loans in an aggregate amount of up to $3 million will be
      available if notice is received by the Administrative Agent no later than
      10:00 a.m., New York City time, on such day.

                
	 
    	 
    
	
                  Mandatory

                	 
    
	
                  Prepayments

                	 
    
	
                  and
      Cash

                	 
    
	
                  Collateralization:

                	
                  Mandatory
      prepayments shall be required to the extent that the sum of the Borrowers’
      Loans plus
      outstanding Letters of Credit (including unreimbursed disbursements)
      exceeds the lesser of (x) the then available Commitment or, (y) the
      Borrowing Base.  Upon the receipt of the net proceeds by any of
      the Borrowers or their Subsidiaries from any asset sales (other than sales
      of inventory in the ordinary course of business), the Borrowers shall,
      jointly and severally, apply such net proceeds as
      follows:  first, to repay
      the then outstanding Loans under Tranche A; second, to
      deposit an amount in the Letter of Credit Account up to 105% of the then
      Letter of Credit outstandings under Tranche A; third to repay
      the then outstanding Loans under Tranche B; fourth to
      deposit an amount in the Letter of Credit Account up to 105% of the then
      Letter of Credit Outstandings under Tranche B; and thereafter,
      such net proceeds may be (I) deposited in the Letter of Credit Account or
      (II) retained by the

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	 
    	
                  Borrowers
      and invested in investments permitted under the Amended Credit Agreement
      or used for expenditures in the ordinary course of business (subject to
      compliance with the terms and conditions of the Amended Credit
      Agreement).  The Commitments under each Tranche shall be reduced
      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, such reduction
      to be applied to Tranche A and when Tranche A has been reduced to zero to
      the remaining Commitment.

                
	 
    	 
    
	
                  Prepayments
      of

                	 
    
	
                  Loans
      From

                	 
    
	
                  Available
      Cash:

                	
                  If
      there are outstanding Loans and the fair market value of cash and cash
      equivalents of the Borrowers held in securities accounts and deposit
      accounts (“Available Cash”) exceeds $60,000,000, then prepayments of Loans
      shall be required in the amount of such excess (or, if less, the
      outstanding balance of Loans), such prepayments to be applied first to
      repay the then outstanding Loans under Tranche A and second to repay the
      then outstanding Loans under Tranche B.

                
	 
    	 
    
	
                  Optional

                	 
    
	
                  Prepayment:

                	
                  Amounts
      may be prepaid in integral multiples of $1 million without penalty (except
      for any breakage costs associated with LIBOR Loans) upon (x) at least one
      (1) business day’s prior notice for ABR Loans and (y) three (3) business
      day’s prior notice for LIBOR Loans.  Unless a Default or Event
      of Default is then in existence, such prepayments shall be applied pro
      rata among the Commitments.  If a Default or Event of Default
      exists at the time of any such payment, such payment shall be applied
      first to Loans outstanding under Tranche A and second to Loans outstanding
      under Tranche B.  The Commitments under each Tranche shall be
      reduced on a pro rata basis by an amount equal to the amount of the
      prepayment required to be applied to repay the then outstanding Loans
      under such Tranche pursuant to the applicable preceding
      sentence.

                
	
                  Conditions
      of

                	 
    
	
                  Initial
      Extension

                	 
    
	
                  of
      Credit:

                	
                  The
      obligation to provide the initial extension of credit shall be subject to
      the satisfaction of the following conditions (subject to such exceptions
      as may be satisfactory to the Administrative
  Agent):

                

        

        

        
          	 
    	
                  (a)

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

                
	 
    	 
    	 
    	 
    
	 
    	 
    	
                  (i)     Bring-down
      certificates delivered by each Borrower (A) certifying that there were no
      changes, or providing the text of

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	 
    	 
    
	 
    	 
    	
                  changes,
      to the organizational documents of such Borrowers as delivered pursuant to
      Section 4.1(a) of the Existing Credit Agreement and (B) to the effect that
      each Borrower is in good standing in its jurisdiction of incorporation,
      organization or formation and in each jurisdiction in which it is
      qualified as a foreign corporation or other entity to do
      business;

                
	 
    	 
    	 
    	 
    
	 
    	 
    	
                  (ii)    signature
      and incumbency certificates of the officers of such Borrower executing the
      Amended Post-Petition Credit Facility Documentation to which it is a
      party, dated as of the date of the Amended Credit Agreement (the “Amendment
      Effectiveness 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 the Amended Post-Petition Credit Facility and the other
      Amended Post-Petition Credit Facility Documentation to which it is a party
      or by which it or its assets may be bound as of the Amendment
      Effectiveness Date, certified as of the Amendment Effectiveness Date by
      its secretary or assistant secretary as being in full force and effect
      without modification or amendment; and

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

                
	 
    	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  Amendment
      Order.  Not later than May 16, 2008, the Administrative
      Agent shall have received the Amendment Order in a form reasonably
      satisfactory to the Administrative Agent, the Lenders and the
      Borrowers.  If the Amendment Order is the subject of a pending
      appeal in any respect, it shall be a condition to the extension of credit
      under the Amended Credit Agreement that neither the making of such loan
      nor the issuance of such Letter of Credit nor the performance by any of
      the Borrowers of any of their obligations under the Amended Credit
      Agreement or under the Amended Post-Petition Credit Facility Documentation
      or under any other instrument or agreement referred to herein shall be the
      subject of a presently effective stay pending appeal.

                
	 
    	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Loan
      Documents.  The Agent shall have received the Amended
      Credit Agreement, duly executed and delivered by the Administrative Agent,
      the Parent Borrower, each Subsidiary Borrower and each Lender and, upon
      request of the Administrative Agent, the Parent Borrower and each
      Subsidiary Borrower shall have duly executed and delivered to the
      Administrative Agent an 

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        
          	 	 	Amended
      Security and Pledge Agreement in a form reasonably satisfactory to the
      Administrative Agent and the Lenders.
	 
    	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  Opinion of
      Counsel.  The Administrative Agent and the Lenders shall
      have received the favorable written opinion of counsel to the Borrowers,
      acceptable to the Administrative Agent.

                
	 
    	 
    	 
    	 
    
	 
    	
                  (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 the Amended Post-Petition Credit
      Agreement.

                
	 
    	 
    	 
    	 
    
	 
    	
                  (f)

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

                

        

        

        
          	
                  Conditions
      of

                	 
    
	
                  Each
      Extension

                	 
    
	
                  of
      Credit:

                	
                  The
      obligation to provide each extension of credit (including the initial
      extension of credit) shall be subject to the satisfaction of the following
      conditions:

                

        

        

        
          	 
    	
                  (a)

                	
                  The
      Amendment Order and Final Order shall be in full force and effect, and
      shall not have been reversed, modified, amended or
  stayed;

                
	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  No
      Default or Event of Default shall exist;

                
	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Representations
      and warranties shall be true and correct in all material respects at the
      date of each extension of credit except to the extent such representations
      and warranties relate to an earlier date;

                
	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  Receipt
      of a notice of borrowing from the Borrowers;

                
	 
    	 
    	 
    
	 
    	
                  (e)

                	
                  Receipt
      by the Administrative Agent of a Borrowing Base Certificate in accordance
      with the applicable provision of the Amended Credit Agreement dated no
      more than seven (7) days prior to the extension of credit, which Borrowing
      Base Certificate shall include supporting schedules as required by the
      Administrative Agent;

                
	 
    	 
    	 
    
	 
    	
                  (f)

                	
                  The
      Borrowers shall have paid the balance of all fees then payable as
      referenced herein;

                

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	 
    
	 
    	
                  (g)

                	
                  The
      uses of such extension of credit shall be substantially consistent with
      the Budget, as updated from time to time; and

                
	 
    	 
    	 
    
	 
    	
                  (h)

                	
                  Such
      other customary conditions as may be mutually agreed upon by the
      Administrative Agent and the
Borrowers.

                

        

        

        
          	 
    	
                  The
      request by the Borrowers for, and the acceptance by the Borrowers of, each
      extension of credit under the Amended Credit Agreement shall be deemed to
      be a representation and warranty by the Borrowers that the conditions
      specified above have been satisfied or waived.

                
	 
    	 
    
	
                  Representations

                	 
    
	
                  and
      Warranties:

                	
                  Each
      Borrower shall represent and warrant in a manner satisfactory to the
      Administrative Agent as to:

                

        

        

        
          	 
    	
                  (a)

                	
                  Due
      incorporation and good standing of each Borrower;

                
	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  No
      consent or approval is required other than the Amendment Order and the
      Final Order, neither of which (as applicable) shall have been amended,
      stayed, vacated, reversed or rescinded;

                
	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Due
      authorization, execution and delivery of Amended Post-Petition Credit
      Facility Documentation; no violation of other material agreements entered
      into after the commencement of the Cases; no violation of law as a result
      of execution, delivery or performance of the Amended Post-Petition Credit
      Facility Documentation;

                
	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  No
      liens on the assets of the Borrowers except for liens that are
      satisfactory to the Administrative Agent and are reflected on a schedule
      annexed to the Amended Credit Agreement or are permitted by the Amended
      Credit Agreement;

                
	 
    	 
    	 
    
	 
    	
                  (e)

                	
                  Financial
      statements for the fiscal year ended June 2, 2007 present fairly, in all
      material respects, the financial condition and results of operations of
      the Borrowers on a consolidated basis as of the date thereof and have been
      prepared in a manner consistent with GAAP;

                
	 
    	 
    	 
    
	 
    	
                  (f)

                	
                  Compliance
      in all material respects with applicable laws and regulations including
      (without limitation) applicable environmental laws and regulations other
      than with respect to the American Bakers Association Retirement Plan (the
      “ABA Pension
      Plan”), a defined benefit pension plan established in 1961 to
      provide pension benefits to certain employees of several unrelated
      

                

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	companies in
      the baking industry, including, without limitation, the
      Borrowers;
	 	 	 
	 
    	
                  (g)

                	
                  No
      material adverse change in the operations, business, 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 other than with respect to the ABA
      Pension Plan and any matter (the “Disclosed
      Matters”) 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;

                
	 
    	 
    	 
    
	 
    	
                  (h)

                	
                  No
      information that has been furnished in writing by the Borrowers to the
      Administrative Agent or the Bankruptcy Court contained any material
      misstatement of fact or omitted to state a material fact necessary to make
      the statements contained therein not misleading in light of the
      circumstances in which made;

                
	 
    	 
    	 
    
	 
    	
                  (i)

                	
                  There
      is no unstayed litigation which is reasonably likely to have a material
      adverse effect on the operations, business, properties, assets, prospects
      or financial condition of the Borrowers taken as a whole (subject to
      certain disclosures on Schedule C hereto, provided, that
      no such disclosed matter shall be excepted from the comparable
      representation to be set forth in the Amended Credit Agreement 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 C);

                
	 
    	 
    	 
    
	 
    	
                  (j)

                	
                  Use
      of proceeds as set forth in “Use of
      Proceeds” above;

                
	 
    	 
    	 
    
	 
    	
                  (k)

                	
                  Insurance
      is sufficient and in such amounts as is customarily carried by similar
      companies in the Borrowers’ industries; and

                
	 
    	 
    	 
    
	 
    	
                  (l)

                	
                  Such
      other customary representations and warranties as may be mutually agreed
      upon by the Administrative Agent and the
  Borrowers.

                

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

        
          	
                  Affirmative

                	 
    
	
                  Covenants:

                	
                  The
      Borrowers shall:

                

        

        

        
          	 
    	
                  (a)

                	
                  Keep
      financial statements in accordance with GAAP and maintain true and
      complete books and records;

                
	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  Furnish:

                
	 
    	 
    	 
    
	 
    	 
    	
                  (i)      Consolidated
      monthly cash flow reports within forty-five (45) days after the end of
      each fiscal month;

                
	 
    	 
    	 
    
	 
    	 
    	
                  (ii)     Monthly
      consolidated financial statements within forty-five (45) days after the
      end of each fiscal month (including the amount of Available Cash at the
      end of each such fiscal month);

                
	 
    	 
    	 
    
	 
    	 
    	
                  (iii)    Quarterly
      consolidated financial statements within forty-five (45) days after the
      end of each fiscal quarter;

                
	 
    	 
    	 
    
	 
    	 
    	
                  (iv)    Annual
      consolidated financial statements within ninety (90) days after the end of
      each fiscal year; and

                
	 
    	 
    	 
    
	 
    	 
    	
                  (v)     Such
      other reports as may be reasonably requested by the Administrative Agent
      or any Lender;

                
	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Deliver
      weekly (by Friday of each week with respect to the immediately preceding
      week) and monthly (by the 20th
      day of each month with respect to the immediately preceding fiscal month)
      Borrowing Base Certificates satisfactory to the Administrative
      Agent;

                
	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  On
      the Amendment Effectiveness Date and every two (2) weeks thereafter,
      furnish a forecast of sources and uses of cash by the Borrowers on a
      weekly basis covering the succeeding thirteen (13) calendar weeks, which
      shall be in form and substance satisfactory to the Administrative Agent
      and to Loughlin Meghji & Company or such other financial advisor as
      may be acceptable to the Administrative Agent (as updated from time to
      time, the “Cash
      Flow Forecast”);

                
	 
    	 
    	 
    
	 
    	
                  (e)

                	
                  Commencing
      on the date which is two (2) weeks after the Borrowers’ delivery of the
      initial Cash Flow Forecast, 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;

                

        

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

        
          	 
    	
                  (f)

                	
                  Furnish
      within forty-five (45) days from 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 to Loughlin Meghji & Company or such other financial advisor
      as may be acceptable to the Administrative Agent, and be available to
      discuss such updated Budget with the Administrative Agent upon the
      Administrative Agent’s reasonable request;

                
	 
    	 
    	 
    
	 
    	
                  (g)

                	
                  Furnish
      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) of the Amended Credit Agreement,
      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;

                
	 
    	 
    	 
    
	 
    	
                  (h)

                	
                  Deliver
      to the Administrative Agent and its counsel all pleadings, motions,
      applications, judicial information, financial information, and other
      documents filed by or on behalf of the Borrowers with the Bankruptcy
      Court;

                
	 
    	 
    	 
    
	 
    	
                  (i)

                	
                  Maintain
      insurance on all its property in a manner which is customary in the
      Borrowers’ industries with financially sound and responsible insurance
      companies;

                
	 
    	 
    	 
    
	 
    	
                  (j)

                	
                  Do
      all things necessary to preserve, renew and keep in full force its
      corporate existence;

                
	 
    	 
    	 
    
	 
    	
                  (k)

                	
                  Pay
      all post-petition taxes and other post-petition obligations as and when
      due except where contested in good faith and by appropriate proceedings
      (if the Borrowers shall have set aside on their books adequate reserves
      therefor);

                
	 
    	 
    	 
    
	 
    	
                  (l)

                	
                  Notify
      the Administrative Agent of any Default or Event of
    Default;

                
	 
    	 
    	 
    
	 
    	
                  (m)

                	
                  Permit
      the Collateral Agent and its representatives to visit the premises of the
      Borrowers, confer with officers and representatives of the Borrowers and
      review all of their books and records, and to conduct collateral reviews
      and appraisals and to monitor the

                

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  collateral
      held by the Collateral Agent (in each case at the Borrowers’
      expense);

                
	 
    	 
    	 
    
	 
    	
                  (n)

                	
                  Comply
      with customary ERISA covenants;

                
	 
    	 
    	 
    
	 
    	
                  (o)

                	
                  Continue
      to retain a chief executive officer who may be reasonably satisfactory to
      the Administrative Agent.

                
	 
    	 
    	 
    
	 
    	
                  (p)

                	
                  Request
      proposals for sales of all assets and commence sales process, as
      follows:  by no later than April 21, 2008, the Borrowers shall
      have requested proposals for the sale of the Borrowers and their assets in
      their entirety, or in a series of transactions, and, by no later than June
      30, 2008, the Borrowers shall have delivered to the Administrative Agent a
      schedule (in form and substance satisfactory to the Administrative Agent)
      of asset sales (including estimated sales dates and estimated proceeds)
      which the Borrowers reasonably expect will generate sales proceeds
      sufficient in the aggregate to reduce total usage under the Facility
      (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 (x) request such proposals in the
      event that on or before April 21, 2008, the Borrowers have (1) filed a
      reorganization plan that provides for the refinancing of the Credit
      Agreement in full and has the publicly announced support of the Bakery,
      Confectionery, Tobacco Workers and Grain Millers International Union and
      the International Brotherhood of Teamsters, and is otherwise in form and
      substance satisfactory to the Administrative Agent and (2) obtained firm
      commitments for funding of all exit financing necessary for confirmation
      and consummation of the reorganization plan or (y) deliver such schedule
      in the event that on or before June 30, 2008, the reorganization plan
      shall have become effective and be consummated, and the obligations under
      the Facility shall have been indefeasibly paid in full.

                
	 
    	 
    	 
    
	 
    	
                  (q)

                	
                  Comply
      with such other affirmative covenants as may be mutually agreed upon by
      the Administrative Agent and the
Borrowers.

                

        

        

        
          	
                  Negative

                	 
    
	
                  Covenants:

                	
                  The
      Borrowers shall not (and shall not apply to the Bankruptcy Court for
      authority to):

                

        

        

        
          	 
    	
                  (a)

                	
                  Merge
      or consolidate with any other party;

                
	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  Create
      or permit to exist any liens or encumbrances on any
      assets  except (i) pre-petition liens and encumbrances as
      reflected on a schedule annexed to the Amended Credit Agreement, (ii)
      liens in

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  favor
      of the Administrative Agent on behalf of the Lenders, and (iii) such other
      liens as may be permitted in the Amended Credit Agreement (the Amended
      Credit Agreement will permit (1) liens imposed by law for taxes not yet
      due or 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; (2) statutory and other like
      liens, pledges or deposits in connection with workers’ compensation and
      other social security obligations (other than any liens imposed under
      ERISA) and certain non-material liens of landlords, common carriers,
      warehousemen and mechanics and other liens (other than environmental liens
      and liens imposed under ERISA) imposed by law in the ordinary course of
      business; (3) deposits to secure the performance of tenders, bids, and
      other contracts, other than for the payment of borrowed money, arising in
      the ordinary course of business; (4) easements and other similar
      encumbrances that are not material; (5) liens securing purchase money
      indebtedness in an amount not to exceed $1,000,000 and existing capital
      lease obligations; (6) liens on the assets of subsidiaries of the Parent
      securing indebtedness in respect of certain exchange traded futures and
      option contracts permitted by the Amended Credit Agreement; and (7) 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
      such Orders provide 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 the Amended Credit Agreement or the
      Lenders have any Commitment thereunder).

                
	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Create
      or permit to exist any other superpriority claim which is pari passu with or
      senior to the claims of the Administrative Agent and the Lenders under the
      Amended Credit Agreement, except for the Carve-Out;

                
	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  Except
      as may be authorized by orders of the Bankruptcy Court and on terms and
      conditions acceptable to the Administrative Agent, sell or otherwise
      dispose of any assets (including, without limitation, the capital stock of
      any subsidiary) 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;

                
	 
    	 
    	 
    
	 
    	
                  (e)

                	
                  Create
      or permit to exist indebtedness for borrowed money in addition to
      indebtedness under the Amended Credit Agreement other than (i)
      pre-petition debt (including existing
  capitalized

                

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  leases),
      (ii) post-petition purchase money indebtedness (exclusive of Capitalized
      Leases) in an aggregate amount not to exceed $1,000,000, (iii)
      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 and (iv) such other indebtedness as may be
      permitted in the Amended Credit Agreement;

                
	 
    	 
    	 
    
	 
    	
                  (f)

                	
                  Make
      capital expenditures (calculated on a consolidated basis) in any fiscal
      quarter, or with respect to the last period referenced, portion of such
      fiscal quarter, in an aggregate amount in excess of the amounts set forth
      below:

                

        

        

        
          	 
    	
                  Fiscal Quarter
      Ending

                	
                  Maximum Capital
      Expenditures

                  (millions)

                
	 
    	
                  May
      31, 2008

                	
                  $10.00

                
	 
    	
                  August
      23, 2008

                	
                  $10.00

                
	 
    	
                  October
      18, 2008

                	
                  $5.00

                

        

        

        
          	 
    	
                  (g)

                	
                  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

                

        

        

        
          	 
    	 
    	
                  The
      term “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

                

        

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  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;

                
	 
    	 
    	 
    
	 
    	
                  (h)

                	
                  Guarantee
      the obligations of others except as permitted by the Amended Credit
      Agreement;

                
	 
    	 
    	 
    
	 
    	
                  (i)

                	
                  Make
      loans or investments other than as may be permitted in the Amended Credit
      Agreement (the Amended Credit Agreement will permit: (x) existing
      intercompany debt as disclosed in the Amended Credit Agreement; (y) and
      investments in short term obligations of, or which are guaranteed by, the
      United States of America, repurchase agreements with respect to such
      securities, short term commercial paper bearing a credit rating of at
      least A from Standard & Poors or A2 from Moody’s Investors Service,
      certain certificates of deposit, time deposits, and certain advances among
      the Borrowers in the ordinary course);

                
	 
    	 
    	 
    
	 
    	
                  (j)

                	
                  Directly
      or indirectly enter into or permit to exist any material transaction with
      any of its affiliates except for (i) transactions that are entered into in
      the ordinary course of Borrowers’ business in good faith and upon
      commercially reasonable terms, and that are no less favorable to the
      Borrowers than would be obtained in an arm’s-length transaction with a
      non-affiliate, and (ii) transactions described on a schedule satisfactory
      to the Administrative Agent and to be annexed to the Amended Credit
      Agreement;

                
	 
    	 
    	 
    
	 
    	
                  (k)

                	
                  Declare
      or make any dividend or make any distribution on account of capital stock
      (other than dividends and distributions from any subsidiary of the Parent
      to the Parent) or conduct transactions with any of its shareholders on
      anything other than on an arm’s length basis;

                
	 
    	 
    	 
    
	 
    	
                  (l)

                	
                  Except
      as may reasonably be expected to result from dispositions permitted by
      subsection (d) above, modify or alter in any material manner the nature
      and type of its business or the manner in which such business is
      conducted, except as required by the Bankruptcy Code;

                
	 
    	 
    	 
    
	 
    	
                  (m)

                	
                  Other
      than as may be permitted in the Amended Credit Agreement, 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

                

        

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  other
      cash payments among the Borrowers, their subsidiaries or
      affiliates;

                
	 
    	 
    	 
    
	 
    	
                  (n)

                	
                  Assert
      any right of subrogation against any other Borrower until all Borrowings
      are paid in full and the Commitment is terminated;

                
	 
    	 
    	 
    
	 
    	
                  (o)

                	
                  Incur
      (or apply to the Bankruptcy Court for authority 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;

                
	 
    	 
    	 
    
	 
    	
                  (p)

                	
                  File
      (or 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 under
      the Facility;

                
	 
    	 
    	 
    
	 
    	
                  (q)

                	
                  Enter
      into derivative agreements except to the extent permitted by the Amended
      Credit Agreement; and

                
	 
    	 
    	 
    
	 
    	
                  (r)

                	
                  Fail
      to comply with such other negative covenants as may be mutually agreed
      upon by the Administrative Agent and the
  Borrowers.

                

        

        

        
          	
                  Events
      of

                	 
    
	
                  Default:

                	
                  Upon
      the occurrence and during the continuance of any of the following Events
      of Default beyond the applicable grace period (if any) set forth below,
      the Administrative Agent may take all or any of the following actions
      without further order of or application to the Bankruptcy Court, provided that
      with respect to item (iii) 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 any statutory committees appointed in the Cases and to the United
      States Trustee for the Western District of Missouri) with five (5)
      business days’ prior written
notice;

                

        

        

        
          	 
    	 
    	
                  (i)

                	
                  declare
      the principal of and accrued interest on the outstanding borrowings to be
      immediately due and payable;

                

        

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  (ii)

                	
                  terminate
      any further commitment to lend to the Borrowers or to issue Letters of
      Credit;

                
	 
    	 
    	 
    	 
    
	 
    	 
    	
                  (iii)

                	
                  set-off
      any amounts held as cash collateral or in any accounts maintained with
      JPMCB;

                
	 
    	 
    	 
    	 
    
	 
    	 
    	
                  (iv)

                	
                  require
      the Borrowers upon demand to furnish immediate cash collateral for Letters
      of Credit then outstanding in an amount equal to 105% of the outstanding
      amount of such Letters of Credit (to the extent that the Borrowers fail to
      furnish such cash collateral, 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); and/or

                
	 
    	 
    	 
    	 
    
	 
    	 
    	
                  (v)

                	
                  take
      any other action or exercise any other right or remedy (including, without
      limitation, with respect to the liens in favor of the Administrative Agent
      and the Lenders) permitted under the Amended Credit Agreement, or by
      applicable law.

                
	 
    	 
    	 
    	 
    
	 
    	
                  (a)

                	
                  Failure
      by the Borrowers to pay principal, interest or fees when due under the
      Amended Credit Agreement;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (b)

                	
                  Breach
      by the Borrowers of any of the negative covenants described
      above;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (c)

                	
                  Breach
      by the Borrowers of any other covenant contained in the Amended Credit
      Agreement and such breach shall continue unremedied for more than ten (10)
      days;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (d)

                	
                  Failure
      by the Borrowers to deliver a certified Borrowing Base Certificate when
      due and such default shall continue unremedied for more than three (3)
      business days;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (e)

                	
                  Any
      representation or warranty made by the Borrowers shall prove to have been
      incorrect in any material respect when made;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (f)

                	
                  Any
      of the Cases shall be dismissed or converted to a Chapter 7 Case; a
      Chapter 11 Trustee, a responsible officer or an examiner with enlarged
      powers relating to the operation of the business of the Borrowers (powers
      beyond those set forth in Section 1106(a)(3) and (4) 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

                

        

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  within
      thirty-five (35) days after the entry thereof; or any other superpriority
      Claim (other than the Carve-Out) which is pari passu with or
      senior to the claims of the Administrative Agent and the Lenders shall be
      granted in any of the Cases; or the Bankruptcy Court shall enter an order
      terminating the use of cash collateral referred to in paragraph (a) of
      “Conditions of
      Initial Extension of Credit” above;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (g)

                	
                  Other
      than payments authorized by the Bankruptcy Court in respect of the first
      day orders and 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

                

        

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  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 to the Central States Southwest Areas Health and
      Welfare Fund and Southeast and Southwest Areas Pension Fund pursuant to
      any settlement approved by the Bankruptcy Court, not to exceed $1,500,000
      as to any pre-petition claim by such funds, as may be permitted in the
      Amended Credit Agreement, the Borrowers shall make any payment (whether by
      way of adequate protection or otherwise) of principal or interest or
      otherwise on account of any pre-petition indebtedness or
      payables;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (h)

                	
                  The
      Bankruptcy Court shall enter an order granting relief from the automatic
      stay 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 the Borrowers which have an aggregate value in excess of
      $250,000;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (i)

                	
                  A
      Change of Control (to be defined in the Amended Credit Agreement) shall
      occur;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (j)

                	
                  Any
      provision of the Amended Credit Agreement shall cease to be valid and
      binding on the Borrowers, or the Borrowers shall so assert in any pleading
      filed in any court;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (k)

                	
                  An
      order shall be entered reversing, amending, supplementing, staying for a
      period in excess of ten (10) days, vacating or otherwise modifying the
      Amendment Order or the Final Order;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (l)

                	
                  Any
      judgment in excess of $250,000 as to any post-petition obligation shall be
      rendered against the Borrowers and the enforcement thereof shall not be
      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 on enforcement of money judgments; or there shall be rendered
      against the Borrowers a non-monetary judgment with respect to a
      post-petition event which causes or would reasonably be expected to cause
      a material adverse change or a material adverse effect on the ability of
      the Borrowers to perform their obligations under the Amended Post-Petition
      Credit Facility Documentation;

                
	 
    	 
    	 
    	 
    
	 
    	
                  (m)

                	
                  Certain
      ERISA-related and environment-related defaults (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

                

        

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        
          	 
    	 
    	
                  exceed
      $80 million, or to the extent a special assessment with respect to the ABA
      Pension Plan does not exceed $38 million); or

                
	 
    	 
    	 
    	 
    
	 
    	
                  (n)

                	
                  Such
      other Events of Default as may be mutually agreed upon by the
      Administrative Agents and the
Borrowers.

                

        

        

        
          	 
    	
                  Upon
      the occurrence and during the continuance of an Event of Default, all
      payments made with respect to the Facility shall be applied as
      follows:  first to fees
      and expenses payable pursuant to the Amended Post-Petition Credit Facility
      Documentation; second to
      principal and accrued interest with respect to Loans outstanding under
      Tranche A; third to
      deposit an amount in the Letter of Credit Account up to 105% of the then
      Letter of Credit Outstandings under Tranche A; fourth to
      principal and accrued interest with respect to Loans outstanding under
      Tranche B; and fifth to
      deposit an amount in the Letter of Credit Account up to 105% of the then
      Letter of Credit Outstandings under Tranche B.

                
	 
    	 
    
	
                  Yield
      Pro-

                	 
    
	
                  tection
      and

                	 
    
	
                  Increased

                	 
    
	
                  Costs;
      Taxes:

                	
                  Standard
      yield protection and indemnification including capital adequacy
      requirements will be incorporated that will satisfactorily compensate the
      Lenders in the event that, after execution of the Amended Post-Petition
      Credit Facility Documentation, any changes in law, requirement, guideline
      or request of relevant authorities shall increase costs, reduce payments
      or earnings, or increase capital requirements.

                
	 
    	 
    
	
                  Costs
      and

                	 
    
	
                  Expenses;

                	 
    
	
                  Indemni-

                	 
    
	
                  fication:

                	
                  All
      out-of-pocket costs and documented expenses (but delivery of documentation
      shall not be a condition to the Borrowers’ payment obligation) of the
      Administrative Agent, the Lenders and JPMorgan (including, without
      limitation, reasonable fees and disbursements of Bryan Cave LLP and Paul,
      Weiss, Rifkind, Wharton & Garrison LLP and of internal and third-party
      appraisers, consultants and auditors advising the Administrative Agent,
      the Collateral Agent and JP Morgan, all fees (including customary fees of
      employees of the Collateral Agent), disbursements and out-of-pocket
      expenses incurred in connection with the initial and periodic collateral
      reviews and appraisals (including collateral monitoring fees of or
      incurred by the Collateral Agent), syndication, enforcement of rights and
      publicity and other miscellaneous disbursements) shall be payable by the
      Borrowers promptly after demand whether or not the transactions
      contemplated hereby are consummated.  The Borrowers shall
      indemnify the Administrative Agent, the Collateral Agent, JPMorgan and the
      Lenders against any liability arising
in

                

        

         

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

         

        
          	 
    	
                  connection
      with the transactions contemplated hereby (other than in the case of the
      gross negligence or willful misconduct of any indemnified
      person).

                
	 
    	 
    
	
                  Assignments

                	 
    
	
                  and
      Participations:

                	
                  The
      Lenders shall be permitted to assign all or a portion of their loans and
      commitments with the consent, not to be unreasonably withheld, (a) the
      Administrative Agent and (b) the Fronting Bank.  In the case of
      partial assignments (other than to another Lender or to an affiliate of a
      Lender), the minimum assignment amount shall be $1 million unless
      otherwise agreed by the Borrowers and the Administrative
      Agent.

                
	 
    	 
    
	 
    	 
    
	 
    	
                  The
      Lenders shall also be permitted to sell participations in their
      Loans.  Participants shall have the same benefits as the Lenders
      with respect to yield protection and increased cost
      provisions.  Voting rights of participants shall be limited to
      those matters with respect to which the affirmative vote of the Lender
      from which it purchased its participation would be required as described
      under “Voting” below.  Pledges of Loans in accordance with
      applicable law shall be permitted without restriction.

                
	 
    	 
    
	
                  Voting:

                	
                  Required
      Lenders, i.e., banks holding at least a majority of the Commitments except
      as to matters requiring unanimity (e.g., the reduction of interest rates,
      the extension of interest payment dates, the reduction of fees, the
      extension of the maturity of Borrowers’ obligations, changes to 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 Lenders and the super-priority status of
      Borrowers’ obligations) and except that the consent of the Super-Majority
      Lenders (defined to mean Lenders, including all Tranche A Lenders, holding
      at least 66-2/3% of the Commitments), shall be required with respect to
      certain matters consistent with Section 9.10(a) of the Existing Credit
      Agreement, including releases of material collateral (other than in
      connection with asset sales expressly permitted by the Amended Credit
      Agreement).  The Amended Credit Agreement will provide that if
      the Borrowers request an amendment which requires unanimous consent and
      such amendment is consented to by Lenders including JPMCB holding at least
      66-2/3% of the Commitments, then with the consent of the Borrowers and
      such consenting Lenders, the Amended Credit Agreement may be amended to
      replace the Lender(s) which did not consent to the amendment requested by
      the Borrowers.

                
	 
    	 
    
	
                  Agency:

                	
                  Usual
      and customary agency provisions satisfactory to the Administrative
      Agent.

                
	 
    	 
    
	
                  Governing

                	 
    

        

         

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

         

        
          	
                  Law:

                	
                  Laws
      of the State of New York except as governed by the Bankruptcy
      Code.

                

        

        
          	
                   
      

                	
                   

                

        

        
           

           

           

           

           

           

          26Exhibit 10.37

                                AMENDMENT NO. 1
                  REORGANIZATION AND STOCK PURCHASE AGREEMENT

     This Amendment No. 1 (the "Amendment No. 1") is dated as of April 19, 2008,
and  amends  that  certain  Reorganization  and  Stock  Purchase  Agreement (the
"Original  Agreement")  dated March 10, 2008, by and between Histostem Co., Ltd.
("Histostem"),  and  Stem  Cell  Therapy  International,  Inc.  ("SCII").

                                   RECITALS:

     WHEREAS,  Histostem  and  SCII propose to amend the certain of the terms of
the  Original  Agreement  as  set  forth  below;  and

     NOW,  THEREFORE, in consideration of the promises and the mutual agreements
herein  set  forth,  the  parties  hereto  agree  as  follows:

     1.     CONFLICT.  In the event there is a conflict between the terms of the
            --------
Original  Agreement with this Amendment No. 1, , the terms of this Amendment No.
1 shall control any interpretation. Unless this Amendment No. 1 expressly amends
or  supplements  the  language of the Original Agreement, the Original Agreement
shall  remain  in  full  force  and  effect.  Unless  otherwise  defined in this
Amendment  No.  1,  terms  defined  in the Original Agreement shall be similarly
defined  herein.

     2.     AMENDMENT.
            ----------

     (a)     The  last  recital  of  the Original Agreement is hereby amended to
read  as  follows:

     "NOW,  THEREFORE,  The respective Boards of Directors of Histostem and SCII
deem  it  advisable  and  in  the  best  interests of their corporations and the
respective  shareholders  of  their  corporations  that  Histostem acquire a 60%
controlling  interest  in  the  securities  of  SCII,  and  SCII  acquire  a 90%
controlling  interest  in  the  securities  of Histostem, in accordance with the
terms  and  conditions  of  this  Reorganization  and Stock Purchase Agreement."

     (b)     Paragraph  2(b) of the Original Agreement is hereby amended to read
as  follows:

     "Histostem  shall  issue  and  deliver  to  Cutler  Law  Group  as  Escrow
certificates  representing  177,875,856 shares of common stock of Histostem (the
"Escrowed  Histostem  Shares")  for  delivery  to  SCII  at  Closing."

     (c) Condition to Closing 3(g) of the Original Agreement is hereby no change
as:  Histostem  shall  have received funding at the date of the actual closing a
minimum  of  $2,000,000  towards  the  Initial  Round  as  defined  below

     (d) Paragraph 5 of the Original Agreement is hereby amended to provide that
the  Closing  shall  occur on or before April 30, 2008 will no longer in effect.
The parties hereto

                                       1
<PAGE>
intend  to  close  the  transactions  contemplated  by the Original Agreement as
amended  by this Amendment No. 1 as promptly as possible after execution of this
Amendment  No.  1.

     (e)     Paragraph  6(d) of the Original Agreement is hereby amended to read
as  follows:

     "As  of  the  date  of  this  agreement, Histostem has a total of 9,763,984
shares  of  common  stock  issued  and  outstanding  (not including the Escrowed
Histostem  Shares)  and no shares of preferred stock issued and outstanding.  No
shares  have  otherwise  been registered under state or federal securities laws.
As of the Closing Date, all of the issued and outstanding shares of common stock
of  Histostem are validly issued, fully paid and non-assessable and there is not
and  as  of  the  Closing  Date, except for up to 10,000,000 shares to be issued
based on the direction of the Board of Directors of Histostem, there will not be
outstanding  any  warrants, options or other agreements on the part of Histostem
obligating Histostem to issue any additional shares of common or preferred stock
or  any  of  its securities of any kind.  Histostem will not issue any shares of
capital  stock  from the date of this Agreement through the Closing Date, except
for  the above mentioned up to 10,000,000 shares.  The Common Stock of Histostem
is  presently  trading  on  the  Freeboard  Exchange  in  Korea."

     (f)     Paragraph  6(j)(3)  of  the Original Agreement is hereby amended to
read  as  follows:

     "other  than  the Histostem Escrowed Shares and up to 10,000,000 additional
shares,  issued  or  sold  any  Equity Securities or other securities, acquired,
directly  or indirectly, by redemption or otherwise, any such Equity Securities,
reclassified, split-up or otherwise changed any such Equity Security, or granted
or  entered  into  any  options, warrants, calls or commitments of any kind with
respect  thereto;"

      (g) Paragraphs 9(d) of the Original Agreement is hereby amended to read as
follows:

     "InitialRound.  The  work  for  the  initial  round  of financing commenced
      ------------
immediately  upon  the  execution  of  a Memorandum of Understanding executed on
February  27,  2008  with  respect  to  the  transactions  contemplated  by this
Agreement, and shall be paid as soon as the funds are available provided that at
the  time  of  paying the funds the Histostem Financial Statements are complete.
The  initial round will be undertaken by SCII and a broker-dealer its selects on
a  best  efforts  basis  for  a  total  of  up  to $10,000,000.  Of this amount,
$2,000,000  from  the  initial  round of financing will be used by Histostem for
immediate operating capital, and $1,000,000 shall be used by SCII according to a
budget  to  be  determined  solely  by  the current management of SCII, with the
balance  split  60%  to  Histostem  and  40%  to  SCII."

     3.     SIGNATURE  IN  COUNTERPARTS.  This Amended Agreement may be executed
            ----------------------------
in  separate  counterparts,  none  of  which  need  contain the signature of all
parties,  each of which shall be deemed to be an original and all of which taken
together  constitute one and the same instrument.  It is not necessary in making
proof  of  this Amended Agreement to produce or account for more than the number
of counterparts containing the respective signatures of, or on behalf of, all of
the  Parties  to  this  Amended  Agreement  is  sought.

                                       2
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the
date  first  above  written.

For and on behalf of:         Histostem Co., Ltd
                              a Korean corporation

                              By: \s\ Dr. Hoon Han
                              -------------------------
                              Dr. Hoon Han, Md, Phd.
                              Chief Executive Officer

For and on behalf of:         Stem Cell Therapy International, Inc.
                              a Nevada corporation

                              By: \s\ Calvin Cao
                              -------------------------
                              Calvin Cao
                              President

                                       3

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