Document:

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                                                                    EXHIBIT 10.2

                           FORM OF PURCHASE AGREEMENT

                     $__________ AGGREGATE PRINCIPAL AMOUNT

                         INTERSTATE BAKERIES CORPORATION

                6% SENIOR SUBORDINATED CONVERTIBLE NOTES DUE 2014

                               PURCHASE AGREEMENT

                                                                 August 11, 2004
[NAME]
[ADDRESS]
[CITY, STATE  ZIP]

Ladies and Gentlemen:

         Interstate Bakeries Corporation, a Delaware corporation (the
"COMPANY"), has authorized the issuance and sale of up to $120,000,000 principal
amount of its 6% Senior Subordinated Convertible Notes due 2014 (the "NOTES").
The Company proposes, subject to the terms and conditions stated herein, to
issue and sell on the Closing Date (as defined in Section 1 below) $__________
principal amount of the Notes (the "FIRM SECURITIES") to ________ (the
"PURCHASER"). The Company also proposes to issue and sell to the Purchaser up to
an additional $__________ principal amount of the Notes (the "ADDITIONAL
SECURITIES" and, together with the Firm Securities, the "SECURITIES") if and to
the extent that the Purchaser shall have determined to exercise the right to
purchase such Additional Securities granted to the Purchaser in Section 1
hereof. The Notes will be issued pursuant to an indenture (the "INDENTURE")
dated as of the Closing Date (as defined below) among the Company, the Guarantor
parties thereto and U.S. Bank National Association, as Trustee (the "TRUSTEE").
The Notes will be convertible into shares (the "UNDERLYING SECURITIES") of
common stock of the Company, par value $.01 per share (the "COMMON STOCK") on
the terms, and subject to the conditions, set forth in the Indenture.
Concurrently with the issuance and sale of Securities contemplated by this
Agreement, the Company intends to issue and sell to certain other purchasers
(the "ADDITIONAL PURCHASERS"), on terms and conditions that are identical to
those applicable to the sale of the Firm Securities herein, an additional
$_______ aggregate principal amount of the Notes. In connection with such sales,
the Company will grant to each such Additional Purchaser the right to purchase,
on terms and conditions that are identical to those applicable to the sale of
the Additional Securities herein, up to an aggregate principal amount of Notes
equal to 20% of the aggregate principal amount of the Notes initially purchased
by such Additional Purchaser.

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         The Company's obligations under the Notes, other than its obligations
in respect of conversion of the Notes and the issuance of the Underlying
Securities thereupon, will be guaranteed (the "PAYMENT GUARANTEES") by each of
the Company's subsidiaries listed on Schedule I hereto and any future domestic
guarantors party to the Indenture (each, a "GUARANTOR" and, collectively, the
"GUARANTORS").

         The Notes, the Payment Guarantees and the Underlying Securities will be
offered without being registered under the Securities Act of 1933, as amended
(together with the rules and regulations promulgated thereunder, the "SECURITIES
ACT"), in reliance on an exemption therefrom.

         The Purchaser will be entitled to the benefits of a Registration Rights
Agreement covering the Underlying Securities dated as of the Closing Date among
the Company, the Purchaser and the Additional Purchasers (the "REGISTRATION
RIGHTS AGREEMENT").

         This Agreement, the Indenture, the Notes, the Payment Guarantees and
the Registration Rights Agreement are referred to herein collectively as the
"TRANSACTION DOCUMENTS".

         The Company hereby agrees with the Purchaser as follows:

         1.       Agreements to Sell and Purchase. The Company agrees to issue
and sell the Firm Securities to the Purchaser as hereinafter provided, and the
Purchaser, upon the basis of the representations and warranties herein
contained, but subject to the conditions hereinafter stated, agrees to purchase
from the Company the Firm Securities at a purchase price of 100% of the
principal amount thereof (the "PURCHASE PRICE").

         On the basis of the representations and warranties contained in this
Agreement, and subject to its terms and conditions, the Company agrees to sell
to the Purchaser the Additional Securities, and the Purchaser shall have the
right to purchase in whole, and not in part, the Additional Securities at the
Purchase Price plus accrued interest, if any, from the Closing Date to the date
of payment and delivery (the "OPTION"). If the Purchaser exercises the Option,
the Purchaser shall so notify the Company in writing (the "OPTION EXERCISE
NOTICE") not later than the end of the Exercise Period (as hereinafter defined),
which Option Exercise Notice shall specify the date on which the Additional
Securities are to be purchased. Such date may be the same as the Closing Date
but not earlier than the Closing Date nor later than five business days after
the date of such Option Exercise Notice. For purposes of this paragraph, the
"EXERCISE PERIOD" means the period beginning on the date hereof and ending on
October 10, 2004 (the "INITIAL EXPIRATION DATE"), as extended pursuant to the
next succeeding sentence. If (x) at the time that the Holder delivers the Option
Exercise Notice, if such Option Exercise Notice is delivered prior to October 5,
2004, (the "THRESHOLD DATE"), or (y) from and after the Threshold Date and prior
to the Initial Expiration

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Date, a pending corporate development occurs or exists with respect to the
Company that would cause the Company to deliver a Suspension Notice (as defined
in the Registration Rights Agreement) pursuant to the terms of the Registration
Rights Agreement if the Registration Statement (as defined in the Registration
Rights Agreement) were effective at such time, then the Company shall deliver to
the Purchaser (i) a written notice indicating that the Exercise Period is
suspended, that the Option Exercise Notice, if any, is void as if never
delivered by the Purchaser and that the Purchaser shall not be entitled to
exercise the Option until the Company has delivered the notice set forth in the
following clause (ii) and (ii) upon termination of such suspension, a written
notice indicating that the Exercise Period has been resumed and the new
termination date of the Exercise Period, which shall coincide with the number of
days the Exercise Period was suspended plus one business day.

         The Company hereby agrees that, without the prior written consent of
the Holders of more than 50% of the aggregate principal amount of the Securities
at the time outstanding (the "MAJORITY HOLDERS"), it will not, (x) during the
period ending 90 days after the date of this Agreement, (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, lend, or
otherwise transfer or dispose of, directly or indirectly, any shares of Common
Stock or any securities convertible into or exercisable or exchangeable for
Common Stock, (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
the Common Stock, and (y) during the period ending on the later of 90 days after
the date of this Agreement and the date the registration statement required
under the Registration Rights Agreement is declared effective, file with the
Securities and Exchange Commission (the "COMMISSION") a registration statement
under the Securities Act relating to any additional shares of its Common Stock
or securities convertible into, or exchangeable for, any shares of its Common
Stock, whether any such transaction described in clause (i) or (ii) above is to
be settled by delivery of Common Stock or such other securities, in cash or
otherwise. The foregoing sentence shall not apply to (A) the sale of the
Securities under this Agreement or the issuance of the Underlying Securities,
(B) the grant by the Company of employee, director or consultant stock options,
(C) the grant or issuance by the Company of Common Stock options or warrants to
as full or partial payment of a customary advisory fee payable to a nationally
recognized financial institution in connection with a strategic transaction or
financing, (D) the grant of warrants exercisable solely for cash at a premium to
the then current market price of the Common Stock, which warrants are not a
principal component of an asset based financing with a national recognized
commercial banking institution making asset based loans in the ordinary course
of its business, (E) the issuance by the Company of any shares of Common Stock
upon the exercise of an option or warrant or the conversion of a security
outstanding on the date hereof (provided that the terms of such options or
warrants are not amended or modified in any manner after the date hereof) or an
option or warrant issued or granted in compliance with this paragraph, and (F)
the

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filing of any registration statement in respect of the Underlying Securities
(the "EXCLUSIONS").

         In addition, the Company agrees to use its best efforts to prevent its
executive officers and directors, in the aggregate, from taking any of the
actions set forth in clauses (i) and (ii) in the immediately preceding paragraph
with respect to in excess of 250,000 shares of Common Stock without the prior
written consent of the Majority Holders.

         2.       Closing. Payment for the Firm Securities shall be made by the
Purchaser to the Company to an account specified in writing by the Company to
the Purchaser in Federal or other funds immediately available in New York City
against delivery to the Purchaser of such Firm Securities in the form specified
by the Purchaser at 10:00 a.m., New York City time, on August 12, 2004, or at
such other time on the same or such other date, as shall be mutually agreed upon
by the Company and the Purchaser. The time and date of such payment and delivery
are hereinafter referred to as the "CLOSING DATE."

         Payments for the Additional Securities purchased pursuant to the option
granted to the Purchaser in Section 1 above shall be made by the Purchaser to
the Company to an account specified in writing by the Company to the Purchaser
in Federal or other funds immediately available in New York City against
delivery of such Additional Securities in the form specified by the Purchaser to
the Purchaser at 10:00 a.m., New York City time, on the date specified in the
notice described in Section 1 or at such other time on the same or on such other
date, in any event not later than October 12, 2004, as shall be mutually agreed
upon by the Company and the Purchaser. The time and date of each such payment
and delivery are hereinafter referred to as an "OPTION CLOSING DATE."

         3.       Representations and Warranties. The Company and each
Guarantor, jointly and severally, represents and warrants to the Purchaser that:

                  (a)      the documents filed by the Company with the
         Commission pursuant to the Securities Exchange Act of 1934, as amended,
         and the rules and regulations of the Commission thereunder
         (collectively, the "EXCHANGE ACT") since May 31, 2003, when such
         documents (as amended or supplemented from time to time prior to the
         date hereof, including the exhibits thereto, the "EXCHANGE ACT
         DOCUMENTS") were filed with the Commission, (i) conformed in all
         material respects to the requirements of the Exchange Act and (ii) did
         not contain an untrue statement of a material fact or omit to state a
         material fact necessary to make the statements therein, in the light of
         the circumstances under which they were made, not misleading; except,
         in each case, for the effect, if any, of the matters discussed or
         referenced in the Company's Current Reports on Form 8-K filed with the
         Commission on June 3, 2004, July 9, 2004, July 29, 2004, August 10,
         2004 and the 8-K related solely to the press

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         release issued by the Company at 7:30 a.m. on August 11, 2004 (the
         "LATEST 8-KS");

                  (b)      (i) the financial statements included in the Exchange
         Act Documents present fairly, in all material respects, the
         consolidated financial position of the Company and its consolidated
         subsidiaries as of the dates indicated and the results of their
         operations and the changes in their consolidated cash flows for the
         periods specified, (ii) said financial statements have been prepared in
         conformity with generally accepted accounting principles and practices
         ("GAAP") applied on a consistent basis; (iii) the supporting schedules,
         if any, in the Exchange Act Documents present fairly the information
         required to be stated therein, (iv) the other financial and statistical
         information and any other financial data set forth in the Exchange Act
         Documents present fairly, in all material respects, the information
         purported to be shown thereby at the respective dates or for the
         respective periods to which they apply and (v) to the extent that such
         information is set forth in or has been derived from the financial
         statements and accounting books and records of the Company, have been
         prepared on a basis consistent with such financial statements and the
         books and records of the Company; except, in each case, for the effect,
         if any, of the matters discussed or referenced in the Latest 8-Ks;

                  (c)      since the Company's Quarterly Report on Form 10-Q
         filed with the Commission on April 19, 2004 (the "LATEST 10-Q"), there
         has not been any Material Adverse Change affecting the Company or the
         Significant Subsidiaries which has not been publicly disclosed by the
         Company;

                           (i) as used in this agreement, "MATERIAL ADVERSE
         CHANGE" or "MATERIAL ADVERSE EFFECT" means any change or effect that
         would be materially adverse to the business, properties, financial
         condition or results of operations of the Company and its subsidiaries
         which are "significant subsidiaries" within the meaning of Regulation
         S-X promulgated under the Securities Act (each, a "SIGNIFICANT
         SUBSIDIARY" and collectively, the "SIGNIFICANT SUBSIDIARIES"), taken as
         a whole, or to the ability of the Company or any Guarantor to
         consummate the transactions contemplated hereby and by the other
         Transaction Documents; provided, that none of the following shall be
         deemed to constitute, and none of the following shall be taken into
         account in determining whether there has been, a Material Adverse
         Effect or Material Adverse Change: any adverse change, event,
         development, or effect arising from or relating directly or indirectly
         to (1) any of the matters discussed or referenced in the Latest 8-Ks,
         (2) the second, third and fourth and fifth amendments (collectively,
         the "BANK AMENDMENTS") of the Company's Amended and Restated Credit
         Agreement, dated as of April 25, 2002 (as amended, supplemented or
         otherwise modified from time to

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         time, the "CREDIT AGREEMENT"), true, correct and complete copies of
         which will be provided to the Purchaser, or (3) any downgrade in the
         Company's general credit rating or the rating of any indebtedness of
         the Company or any change in outlook in respect of any such
         indebtedness by either Standard & Poor's Rating Services or Moody's
         Investors Service, or by any other national or regional rating agency
         (the matters set forth in (2) and (3) above, collectively, the
         "CREDIT-RELATED EVENTS").

                  (d)      since the Latest 10-Q, there has not been any (i)
         change in the capital stock or long-term debt of the Company or any
         Guarantor, (ii) issuance of any options, warrants, convertible
         securities or rights to purchase capital stock of the Company or any
         Guarantor, except for changes occurring in the ordinary course of
         business, changes in outstanding Common Stock resulting from
         transactions relating to employee benefit plans or dividend
         reinvestment, stock option, stock award and stock purchase plans and
         for any other changes any of the foregoing of which do not,
         individually or in the aggregate, constitute a Material Adverse Change;

                  (e)      since the Latest 10-Q, neither the Company nor any
         Guarantor has entered into any transaction or agreement that has or
         would be reasonably likely to have a Material Adverse Effect on the
         Company and its Subsidiaries, taken as a whole;

                  (f)      since the Latest 10-Q, the Company has not declared
         or paid any dividends or made any distribution of any kind with respect
         to its capital stock;

                  (g)      the Company has been duly incorporated and is validly
         existing as a corporation in good standing under the laws of its
         jurisdiction of incorporation, with corporate power and authority to
         own or lease its properties and conduct its business as described in
         the Exchange Act Documents, and has been duly qualified as a foreign
         corporation for the transaction of business and is in good standing
         under the laws of each other jurisdiction in which it owns or leases
         properties, or conducts its business in a manner or to an extent that
         would require such qualification, other than such failures to be so
         qualified or in good standing as, individually or in the aggregate,
         would not reasonably be expected to have a Material Adverse Effect;

                  (h)      each of the Guarantors has been duly incorporated or
         formed and is validly existing as a corporation or limited liability
         company under the laws of its jurisdiction of incorporation or
         formation, with corporate or limited liability company power and
         authority to own or lease its properties and conduct its business as
         described in the Exchange Act Documents, and has been duly qualified as
         a foreign corporation for the transaction of business and is in good
         standing under the laws of each

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         jurisdiction in which it owns or leases properties or conducts its
         business in a manner or to an extent that would require such
         qualification, other than such failures to be so qualified or in good
         standing as, individually or in the aggregate, would not reasonably be
         expected to have a Material Adverse Effect; and all the outstanding
         shares of capital stock or limited liability company interests of each
         Guarantor have been duly authorized and validly issued, are fully-paid
         and non-assessable, and, except as set forth in the Exchange Act
         Documents, are owned by the Company, directly or indirectly, free and
         clear of all claims, liens, encumbrances, security interests,
         restrictions upon voting or transfer and adverse interests and no
         options, warrants or other rights to purchase, agreements or other
         obligations to issue, or rights to convert any obligations into or
         exchange any securities for, shares of capital stock of, or ownership
         interests in, any such Guarantor are outstanding;

                  (i)      the Company and each Guarantor has full corporate or
         limited liability company power and authority to enter into the
         Transaction Documents to which it is a party and to perform and
         discharge its obligations thereunder; each Transaction Document to
         which it is a party has been duly authorized, executed and delivered by
         the Company and each Guarantor and constitutes the legal, valid and
         binding obligations of the Company and each Guarantor, enforceable
         against each of them in accordance with its terms, subject to
         applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and similar laws affecting creditors' rights
         and remedies generally, and subject, as to enforceability, to general
         principles of equity, including principles of commercial
         reasonableness, good faith and fair dealing (regardless of whether
         enforcement is sought in a proceeding at law or in equity);

                  (j)      immediately prior to the transactions contemplated
         hereby, the authorized, issued and outstanding capital stock of the
         Company is as set forth in the Latest 10-Q except for changes occurring
         in the ordinary course of business, changes in outstanding Common Stock
         resulting from transactions relating to employee benefit plans or
         dividend reinvestment, stock option, stock award and stock purchase
         plans and for any other changes any of the foregoing of which do not,
         individually or in the aggregate, constitute a Material Adverse Change;
         except for this Agreement and the Registration Rights Agreement or
         stock purchase plans, there are no contracts, commitments, agreements,
         arrangements, understandings or undertakings of any kind to which the
         Company is a party, or by which it is bound, granting to any person the
         right to require the Company to file a registration statement under the
         Securities Act with respect to the Common Stock or requiring the
         Company to include any Common Stock with the Underlying Securities
         registered pursuant to any registration statement;

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                  (k)      the shares of Common Stock outstanding on the date
         hereof have been duly authorized and are validly issued, fully paid and
         non-assessable;

                  (l)      the Securities have been duly authorized by the
         Company, and when duly executed, authenticated, issued and delivered as
         provided in the Indenture (assuming due authentication of the
         Securities by the Trustee) and paid for as provided herein will
         constitute the legal, valid and binding obligations of the Company,
         enforceable against it in accordance with its terms, subject to
         applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and similar laws affecting creditors' rights
         and remedies generally, and subject, as to enforceability, to general
         principles of equity, including principles of commercial
         reasonableness, good faith and fair dealing (regardless of whether
         enforcement is sought in a proceeding at law or in equity);

                  (m)      the Indenture has been duly authorized by the Company
         and each Guarantor, and when executed and delivered by the Company and
         each Guarantor (assuming the authorization, execution and delivery by
         the Trustee) will be a legal, valid and binding instrument of the
         Company and each Guarantor, enforceable against each of them in
         accordance with its terms, subject to applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and
         similar laws affecting creditors' rights and remedies generally, and
         subject, as to enforceability, to general principles of equity,
         including principles of commercial reasonableness, good faith and fair
         dealing (regardless of whether enforcement is sought in a proceeding at
         law or in equity);

                  (n)      upon issuance and delivery of the Securities in
         accordance with the Agreement and the Indenture, the Securities will be
         convertible at the option of the holder thereof into shares of the
         Underlying Securities in accordance the terms of the Indenture; the
         Underlying Securities reserved for issuance upon conversion of the
         Securities have been duly authorized and reserved and, when issued upon
         conversion of the Securities in accordance with the terms of the
         Indenture, will be validly issued, fully paid and non-assessable, and
         the issuance of the Underlying Securities will not be subject to any
         preemptive or similar rights;

                  (o)      the Registration Rights Agreement has been duly
         authorized by the Company and when executed and delivered by the
         Company (assuming the due authorization, execution and delivery thereof
         by the Purchaser and the Additional Purchasers) shall constitute the
         legal, valid and binding obligation of the Company, enforceable against
         it in accordance with its terms, subject to applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and
         similar laws affecting creditors' rights and remedies generally, and
         subject, as to

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         enforceability, to general principles of equity, including principles
         of commercial reasonableness, good faith and fair dealing (regardless
         of whether enforcement is sought in a proceeding at law or in equity)
         and except that rights to indemnification and contribution thereunder
         may be limited by federal or state securities laws or public policy
         relating thereto;

                  (p)      the Guarantors constitute all of the Subsidiaries of
         the Company that are guarantors under the Credit Agreement; and the
         Guarantees of each of the Guarantors have been duly authorized by all
         necessary corporate or limited liability company action, as applicable,
         of each of the Guarantors and, when executed and delivered in
         accordance with the terms of the Indenture (assuming the due execution,
         issuance and authentication of the Securities in accordance with the
         terms of the Indenture and delivery and payment therefor by the
         Purchaser in accordance with the terms of this Agreement), the Payment
         Guarantees will be the legally valid and binding obligations of each of
         the foregoing Guarantors, enforceable against each of them in
         accordance with their terms;

                  (q)      upon consummation of the transactions contemplated by
         this Agreement and the Bank Amendments, neither the Company nor any
         Guarantor is, or with the giving of notice or lapse of time or both
         will be, in violation of or in default under (i) its Certificate of
         Incorporation, Bylaws or other organizational documents, (ii) under any
         indenture, mortgage, deed of trust, loan agreement or other agreement
         or instrument to which the Company or any Guarantor is a party or by
         which it or any of them or any of their respective properties is bound,
         or (iii) any statute, law, rule, regulation, ordinance, judgment, order
         or decree of any court, regulatory body, administrative agency,
         governmental body, arbitrator or other authority having jurisdiction
         over the Company, its subsidiaries or any of their respective
         properties or assets, as applicable, except, with respect to clauses
         (ii) and (iii), for violations and defaults which, individually or in
         the aggregate, have not or would not reasonably be expected to result
         in a Material Adverse Effect.

                  (r)      the issue and sale of the Securities and the issuance
         by the Company of the Underlying Securities upon conversion of the
         Securities, the Guaranty of the Securities by the Guarantors in
         accordance with the terms of the Indenture, the performance by the
         Company and the Guarantors of all their respective obligations under
         the Transaction Documents to which they are party, and the consummation
         of the transactions herein and therein contemplated, will not (i)
         conflict with or result in a breach of any of the terms or provisions
         of, constitute a default (with or without the giving of notice or the
         passage of time or otherwise) under, or result in the creation or
         imposition of any lien, charge or encumbrance upon any property or
         assets of the Company or any

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         Guarantor under, any indenture, mortgage, deed of trust, loan agreement
         or other agreement or instrument to which the Company or any Guarantor
         is a party or by which the Company or any Guarantor is bound or to
         which any of the property or assets of the Company or any Guarantor is
         subject, except, in each case, for such conflicts, breaches, defaults,
         liens, charges or encumbrances which would not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect,
         (ii) result in any violation of the provisions of the Certificate of
         Incorporation or the Bylaws of the Company or any Guarantor that is a
         corporation or the certificate of formation or limited liability
         agreement of any Guarantor that is a limited liability company, (iii)
         result in any violation of any applicable law or statute or any order,
         rule or regulation of any court or governmental agency or body having
         jurisdiction over the Company, the Guarantors or any of their
         respective properties, except for violations which would not,
         individually or in the aggregate, have or reasonably be expected to
         have a Material Adverse Effect; and no consent, approval,
         authorization, order, license, registration or qualification of or with
         any such court or governmental agency or body is required for the issue
         and sale of the Securities or the consummation by the Company and the
         Guarantors of the transactions contemplated by any of the Transaction
         Documents, except such consents, approvals, authorizations, orders,
         licenses, registrations or qualifications (A) as may be required under
         state securities or Blue Sky Laws in connection with the purchase of
         and any distribution of the Securities, Payment Guarantees or
         Underlying Securities by the Purchaser or under the Securities Act with
         respect to the registration of the Securities, Payment Guarantees and
         the Underlying Securities pursuant to the terms of the Registration
         Rights Agreement and (B) the absence of or failure by the Company or
         any Subsidiary to receive would not, individually or in the aggregate,
         reasonably be expected to result in a Material Adverse Effect;

                  (s)      except as set forth in the Legal Proceedings section
         of the Company's Annual Report on Form 10-K for the year ended May 31,
         2003 and the Company's Quarterly Report on Form 10-Q for the quarter
         ended March 6, 2004, and the Company's Current Report on Form 8-K filed
         with the Commission on July 29, 2004, there are no legal or
         governmental investigations, actions, suits or proceedings pending or,
         to the knowledge of the Company, threatened against or affecting the
         Company or any Guarantor or any of their respective properties or to
         which the Company or any Guarantor is or may be a party or to which any
         property of the Company or any Guarantor is or may be the subject
         which, if determined adversely to the Company or any such Guarantor,
         would, individually or in the aggregate, reasonably be expected to have
         a Material Adverse Effect;

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                  (t)      neither the Company, nor any affiliate (as defined in
         Rule 501(b) of Regulation D) of the Company or any person acting on its
         or their behalf, has directly, or through any agent, sold, offered for
         sale, solicited offers to buy or otherwise negotiated in respect of,
         any security (as defined in the Securities Act) which is or will be
         integrated with the sale of the Securities in a manner that would
         require (i) the registration under the Securities Act of the issuance
         of any of the Securities contemplated hereby or (ii) the approval of
         the stockholders of the Company in accordance with the rules and
         regulations of the New York Stock Exchange, Inc. (the "NYSE");

                  (u)      none of the Company, any affiliate of the Company or
         any person acting on its or their behalf has offered or sold any of the
         Securities by means of any general solicitation or general advertising
         within the meaning of Rule 502(c) under the Securities Act;

                  (v)      assuming the accuracy of the representations of the
         Purchaser contained in Section 4 hereof and the Purchaser's compliance
         with the agreements set forth therein, it is not necessary in
         connection with the offer, sale and delivery of the Securities in the
         manner contemplated by this Agreement and the other Transaction
         Documents to register any of the Securities, Payment Guarantees or
         Underlying Securities under the Securities Act or to qualify the
         Indenture under the Trust Indenture Act of 1939, as amended;

                  (w)      neither the Company, nor any of its subsidiaries nor
         any of their officers or directors or any of their affiliates has taken
         or will take, directly or indirectly, any action designed or intended
         to stabilize or manipulate the price of any security of the Company, or
         which caused or resulted in, or which might in the future reasonably be
         expected to cause or result in, stabilization or manipulation of the
         price of any security of the Company;

                  (x)      the Common Stock is registered pursuant to Section
         12(b) of the Exchange Act and is listed on the NYSE, and the Company
         has not taken any action designed to or reasonably likely to result in
         the termination of the registration of the Common Stock under the
         Exchange Act or delisting of the Common Stock from the NYSE; except for
         any actions directly or indirectly relating to matters discussed in the
         Latest 8-Ks;

                  (y)      the Notes satisfy the requirements set forth in Rule
         144A(d)(3) under the Securities Act;

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                  (z)      Deloitte & Touche LLP, who have certified the
         consolidated financial statements of the Company as of May 31, 2003,
         are independent public accountants within the meaning of the Securities
         Act;

                  (aa)     other than as disclosed in, and during the period
         covered by, the Exchange Act Documents, the Company and the Guarantors
         have filed all federal, state, local and foreign tax returns which, to
         the Company's knowledge, the Company and the Guarantors have been
         required to file and have paid all taxes shown on the returns filed by
         them and all assessments received by them or any of them to the extent
         that such taxes have become due and are not being contested in good
         faith and for which adequate reserves have been provided, except where
         the failure to do so would not, individually or in the aggregate,
         reasonably be expected to have a Material Adverse Effect; and except
         for potential excise taxes in connection with multi-employer pension
         plans, there is no tax deficiency which has been or, to the Company's
         knowledge, might reasonably be expected to be asserted or threatened
         against the Company or any Guarantor that would reasonably be expected
         to have a Material Adverse Effect;

                  (bb)     no labor disputes exist with employees of the Company
         or of the Guarantors except for such disputes as would not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect;

                  (cc)     except as set forth in the Legal Proceedings section
         of the Company's Annual Report on Form 10-K for the year ended May 31,
         2003 and the Company's Quarterly Report on Form 10-Q for the quarter
         ended March 6, 2004, and the Company's Current Report on Form 8-K filed
         with the Commission on July 29, 2004, there are no legal or
         governmental proceedings pending or, to the Company's knowledge,
         threatened to which the Company or any of the Guarantors is subject
         other than proceedings which, individually or in the aggregate, would
         be reasonably likely to have a Material Adverse Effect;

                  (dd)     except as set forth in the Governmental Regulation;
         Environmental Matters section of the Company's Annual Report on Form
         10-K for the year ended May 31, 2003 and the Company's Quarterly Report
         on Form 10-Q for the quarter ended March 6, 2004, to the Company's
         knowledge, each of the Company and the Guarantors is in compliance with
         any and all applicable foreign, federal, state and local laws and
         regulations relating to the protection of human health or the
         environment or imposing liability or standards of conduct concerning
         any Hazardous Material (collectively, "ENVIRONMENTAL LAWS"), except
         where such non-compliance with Environmental Laws would not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect. The term "HAZARDOUS MATERIAL" means (1) any
         "HAZARDOUS

                                       12
<PAGE>

         SUBSTANCE" as defined by the Comprehensive Environmental Response,
         Compensation and Liability Act of 1980, as amended, (2) any "HAZARDOUS
         WASTE" as defined by the Resource Conservation and Recovery Act, as
         amended, (3) any petroleum or petroleum product, (4) any
         polychlorinated biphenyl, and (5) any pollutant or contaminant or
         hazardous, dangerous, or toxic chemical, material, waste or substance
         regulated under or within the meaning of any other Environmental Law;

                  (ee)     (i) the Company or its Subsidiaries own or possess
         the right to use the patents, patent licenses, trademarks, service
         marks, trade names, copyrights and know-how (including trade secrets
         and other unpatented and/or unpatentable proprietary or confidential
         information, systems or procedures) (collectively, the "INTELLECTUAL
         PROPERTY") reasonably necessary to carry on the business conducted by
         the Company and the Guarantors, taken as a whole, as conducted on the
         date hereof, except to the extent that the failure to own or possess
         the right to use such Intellectual Property would not, individually or
         in the aggregate, reasonably be expected to have a Material Adverse
         Effect, (ii) all of such patents, registered trademarks and registered
         copyrights owned by the Company or its subsidiaries have been duly
         registered in, filed in or issued by the United States Patent and
         Trademark Office, the United States Registrar of Copyrights or the
         corresponding offices of other jurisdictions, except where the failure
         to do so would not reasonably be expected to have a Material Adverse
         Effect, (iii) all material licenses or other material agreements under
         which (1) the Company or any of its subsidiaries is granted rights in
         Intellectual Property, other than Intellectual Property generally
         available on commercial terms from other sources, and (2) the Company
         or any of its subsidiaries has granted rights to others in Intellectual
         Property owned or licensed by the Company, are in full force and effect
         and, to the knowledge of the Company, there is no material default by
         the Company or its subsidiaries or the other parties thereto, except
         for such failures to be in full force and effect and such defaults as
         would not, individually or in the aggregate, reasonably be expected to
         result in a Material Adverse Effect (iv) neither the Company nor any
         Guarantor has received any notice of infringement of or conflict with
         asserted rights of others with respect to any Intellectual Property,
         except for notices the content of which if accurate would not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect and (v) the Company and its subsidiaries do not
         have and, to the knowledge of the Company, none of its and their
         employees have any agreements or arrangements with any persons other
         than the Company or its subsidiaries related to confidential
         information or trade secrets of such persons other than such agreements
         that would not restrict the Company and its subsidiaries from
         conducting their business as currently conducted to an extent that
         would reasonably be expected to result in a Material Adverse Effect;

                                       13
<PAGE>

                  (ff)     the Company and its Subsidiaries, taken together,
         have such licenses, franchises, permits, authorizations, approvals and
         orders of and from governmental and regulatory officials and bodies as
         are, to the Company's knowledge, reasonably necessary to own or lease
         and operate the properties and conduct the business of the Company and
         the Guarantors, taken as a whole, on the date hereof;

                  (gg)     (i) the Company and the Guarantors have good and
         marketable title in fee simple to all real property and good and
         marketable title to all personal property owned by them which is
         material to the business of the Company and its subsidiaries, in each
         case free and clear of all liens, encumbrances and defects except such
         as do not interfere with the use made and proposed to be made of such
         property by the Company and its subsidiaries or would not, individually
         or in the aggregate, reasonably be expected to have a Material Adverse
         Effect; and (ii) any real property and buildings held under lease by
         the Company and the Guarantors are held by them under valid, subsisting
         and enforceable leases with such exceptions as do not interfere with
         the use made and proposed to be made of such property and buildings by
         the Company and the Guarantors or as would not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect;
         and each of the Company and its subsidiaries owns or leases all such
         properties as are necessary to its business or operations as now
         conducted;

                  (hh)     (i) the Company is in compliance with all presently
         applicable provisions of the Employee Retirement Income Security Act of
         1974, as amended, including the regulations and published
         interpretations thereunder ("ERISA"), except where the failure to be in
         such compliance would not, individually or in the aggregate, reasonably
         be expected to have a Material Adverse Effect; (ii) no "reportable
         event" (as defined in ERISA) has occurred with respect to any "pension
         plan" (as defined in ERISA) for which the Company is required to
         provide notice under Section 4043 of ERISA and would have any
         liability, except where such liability would not, individually or in
         the aggregate, reasonably be expected to have a Material Adverse
         Effect; (iii) except for matters that would not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect,
         (a) with respect to any "pension plan" (other than a "multiemployer
         plan" (as defined in ERISA)), the Company has not incurred and does not
         expect to incur liability under Title IV of ERISA with respect to

                                       14
<PAGE>

         termination of, or withdrawal from, such "pension plan," or under
         Section 412 or 4971 of the Internal Revenue Code of 1986, as amended,
         including the regulations and published interpretations thereunder
         ("Code"), and (b) with respect to any "pension plan" that is a
         "multiemployer plan," the Company has not received notice that the
         Company has incurred liability under Title IV of ERISA with respect to
         termination of, or withdrawal from, such "pension plan," or under
         Section 412 or 4971 of the Code; (iv) except where the failure to be in
         such compliance would not, individually or in the aggregate, reasonably
         be expected to have a Material Adverse Effect, each "pension plan"
         (other than a "multiemployer plan") for which the Company and each of
         the Guarantors would have any liability that is intended to be
         qualified under Section 401(a) of the Code is so qualified in all
         material respects and nothing has occurred, whether by action or by
         failure to act, which would reasonably be expected cause the loss of
         such qualification; and (v) except where the failure to be in such
         compliance would not, individually or in the aggregate, reasonably be
         expected to have a Material Adverse Effect, no non-exempt "prohibited
         transaction" (as defined in Section 406 of ERISA or Section 4975 of
         Code) or "accumulated funding deficiency" (as defined in section 302 of
         ERISA) has occurred with respect to any "pension plan" (other than a
         "multiemployer plan") for which the Company and each of the Guarantors
         would have any liability;

                  (ii) (i) the Company maintains a system of internal
         accounting controls sufficient to provide reasonable assurances that
         (A) transactions are executed in accordance with management's general
         or specific authorization; (B) transactions are recorded as necessary
         to permit preparation of financial statements in conformity with
         generally accepted accounting principles and to maintain accountability
         for assets; (C) access to assets is permitted only in accordance with
         management's general or specific authorization; and (D) the recorded
         accountability for assets is compared with existing assets at
         reasonable intervals and appropriate action is taken with respect to
         any differences, and (ii) the Company maintains a system of "disclosure
         controls and procedures" (as such term is defined in Rule 13a-14(c)
         under the Exchange Act), except, in each case, for any failures of or
         weaknesses in the Company's systems of internal accounting controls or
         "disclosure controls and procedures" that, directly or indirectly,
         arise from, are related to or are implied by (A) any of the matters
         discussed or referenced in the Latest 8-Ks or (B) any Credit-Related
         Event;

                  (jj)     the Company is in substantial compliance with the
         applicable provisions of the Sarbanes-Oxley Act of 2002 that are
         effective;

                  (kk)     immediately after the consummation of the
         transactions contemplated by this Agreement, the fair value and present
         fair saleable value of the assets of the Company will exceed the sum of
         its stated liabilities and identified contingent liabilities; the
         Company is not, nor will the Company be, after giving effect to the
         execution, delivery and performance of this Agreement, and the
         consummation of the transactions contemplated hereby, (a) left with
         unreasonably small capital with which to carry on its business as it is
         proposed to be conducted, (b) unable to pay

                                       15
<PAGE>

         its debts (contingent or otherwise) as they mature or (c) otherwise
         insolvent;

                  (ll)     neither the Company nor any of its affiliates nor any
         person acting on its or their behalf has offered or sold the Securities
         by means of any form of general solicitation or general advertising
         within the meaning of Rule 502(c) of Regulation D, including (i) any
         advertisement, article, notice or other communication published in any
         newspaper, magazine or similar medium or broadcast over television or
         radio, or (ii) any seminar or meeting whose attendees have been invited
         by any general solicitation or general advertising in the United
         States;

                  (mm)     except for its engagement letter with J.P. Morgan
         Securities Inc. dated July 16, 2004, neither the Company nor its
         Subsidiaries is a party to any contract, agreement or understanding
         with any person that would give rise to a valid claim against the
         Company or the Purchaser for a brokerage commission, finder's fee or
         like payment in connection with the offering and sale of the
         Securities;

                  (nn)     other than as disclosed in the Exchange Act
         Documents, to the Company's knowledge, each of the Company and the
         Guarantors is in compliance with any and all applicable Occupational
         Safety and Health Administration standards and requirements (the "OSHA
         LAWS"), except where such non-compliance with OSHA Laws would not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect;

                  (oo)     the Company has not granted or agreed to grant to any
         Person any rights (including "piggy-back" registration rights) to have
         any securities of the Company registered with the Commission or any
         other governmental authority that have not been satisfied other than
         this Agreement, the Registration Rights Agreement or stock purchase
         plans; and

                  (pp)     the Company is not and, after giving effect to the
         offering and sale of the Notes and the application of the proceeds
         thereof, will not be required to register as an "investment company" as
         such term is defined in the Investment Company Act of 1940, as amended.

         The Purchaser acknowledges and agrees that the Company has not made and
         does not make any representations or warranties with respect to the
         transactions contemplated hereby other than those specifically set
         forth in this Section 3.

         4.       Representations and Warranties of the Purchaser. The Purchaser
represents and warrants to the Company that:

                                       16
<PAGE>

                  (a)      the Purchaser is knowledgeable, sophisticated and
         experienced in business and financial matters and qualifies as an
         "accredited investor" as defined in Rule 501(a) of Regulation D;

                  (b)      the Purchaser has been afforded access to information
         about the Company and the Guarantors and the financial condition,
         results of operations, business, property, management and prospects of
         the Company and the Guarantors sufficient to enable it to evaluate its
         investment in the Securities; the Purchaser and its advisors, if any,
         have been afforded the opportunity to ask questions of the Company and
         the Guarantors; the Purchaser has sought such accounting, legal and tax
         advice as it has considered necessary to make an informed investment
         decision with respect to its acquisition of the Securities;

                  (c)      the Purchaser understands that its investment in the
         Securities involves a high degree of risk. The Purchaser is able to
         bear the economic risk of its investment in the Securities and is
         presently able to afford the complete loss of such investment;

                  (d)      the Purchaser is acquiring the Securities in the
         ordinary course of business solely for its own account and not as a
         nominee or agent for any other person and not with a view to any
         distribution thereof that violates the Securities Act or the securities
         laws of any State of the United States or any applicable jurisdiction;
         provided, however, that by making the representations herein, the
         Purchaser does not agree to hold any of the Securities for any minimum
         or other specific term and reserves the right to dispose of the
         Securities at any time in accordance with or pursuant to a registration
         statement or an exemption under the Securities Act; the Purchaser does
         not presently have any intention, or any agreement or understanding,
         directly or indirectly, with any person, to distribute any of the
         Securities;

                  (e)      the Purchaser has been duly organized or formed and
         is a validly existing organization in good standing under the laws of
         its jurisdiction of organization, with power and authority to execute
         and deliver this Agreement and the Registration Rights Agreement and
         perform its obligations hereunder and thereunder; and this Agreement
         and the Registration Rights Agreement and the transactions contemplated
         hereby and thereby have been duly authorized by the Purchaser; assuming
         due authorization, execution and delivery by the Company and, as to the
         Registration Rights Agreement, the Additional Purchasers, each of this
         Agreement and the Registration Rights Agreement constitutes a legally
         valid and binding agreement of the Purchaser, enforceable against the
         Purchaser in accordance with its terms, subject to applicable
         bankruptcy, insolvency, fraudulent conveyance, reorganization,
         moratorium and similar laws affecting creditors' rights and remedies
         generally, and

                                       17
<PAGE>

         subject, as to enforceability, to general principles of equity,
         including principles of commercial reasonableness, good faith and fair
         dealing (regardless of whether enforcement is sought in a proceeding at
         law or in equity);

                  (f)      the Purchaser is a resident of that jurisdiction
         specified in its address for notices set forth below the signature of
         the Purchaser where it appears on the signature page of this Agreement;

                  (g)      the Purchaser is not acquiring the Securities with
         assets of any "employee benefit plan" (within the meaning of Section
         3(3) of ERISA) that is subject to Title I of ERISA or Section 4975 of
         the Code;

                  (h)      assuming the capitalization of the Company set forth
         in its most recent Exchange Act Document, the Purchaser, together with
         its "affiliates" (as defined in Rule 13d-3 promulgated under the
         Securities Act), is the beneficial owner (as defined in Rule 13d-3
         promulgated under the Exchange Act) of not more than 4.9% of the
         outstanding shares of Common Stock immediately after the purchase of
         the Securities hereunder;

                  (i)      the Purchaser is not a registered broker-dealer under
         Section 15 of the Exchange Act; and

                  (j)      the Purchaser has independently evaluated the merits
         of its decision to purchase the Securities pursuant to the Transaction
         Documents, and the Purchaser confirms that it has not relied on the
         advice of any Additional Purchaser's business and/or legal counsel in
         making such decision.

         The Company acknowledges and agrees that the Purchaser has made or
         makes any representations or warranties with respect to the
         transactions contemplated hereby other than those specifically set
         forth in this Section 4.

         5.       Covenants of the Company. The Company covenants and agrees
with the Purchaser as follows:

                  (a)      to file a supplemental listing application and use
         its best efforts to have the Underlying Securities approved for listing
         by the NYSE in accordance with its rules and regulations;

                  (b)      to qualify the Securities for offering and sale under
         the applicable securities laws of such states as the Purchaser may
         designate and will continue such qualifications in effect so long as
         required for the resale of the Securities; provided that the Company
         will not be required to

                                       18
<PAGE>

         qualify as a foreign corporation or file a general consent to service
         of process in any such state;

                  (c)      whether or not the transactions contemplated in this
         Agreement are consummated or this Agreement is terminated, to pay or
         cause to be paid all fees, costs and expenses incident to the
         performance of its obligations hereunder, including without limiting
         the generality of the foregoing, all fees, costs and expenses (i)
         incident to the preparation, issuance, execution, authentication and
         delivery of the Securities, including any expenses of the Trustee, (ii)
         payable to rating agencies in connection with the rating of the
         Securities, (iii) incurred in connection with the qualification of the
         Securities for sale under state securities laws, (iv) in connection
         with the approval of the Underlying Securities for listing on the NYSE
         and (v) in connection with the admission for trading of the Securities
         in the Private Offerings, Resales and Trading through Automatic
         Linkages ("PORTAL") system of the National Association of Securities
         Dealers, Inc. ("NASD"). In addition to the foregoing (and without
         duplication), the Company agrees to pay the Purchaser its actual
         out-of-pocket expenses incurred in connection with the negotiation, due
         diligence and documentation of the Transaction Documents and the
         transactions contemplated thereby ("TRANSACTION EXPENSES"); provided,
         that the maximum amount of Transaction Expenses that the Company shall
         be obligated to pay to the Purchaser, together with all other
         Transaction Expenses paid in the aggregate to the Additional
         Purchasers, shall not exceed $150,000 in the aggregate (the
         "TRANSACTION EXPENSE CAP"); provided, further, that if the aggregate
         Transaction Expenses incurred by the Purchaser and the Additional
         Purchasers exceeds the Transaction Expense Cap, the Company shall be
         obligated to pay the Purchaser only a pro rata portion of the
         Transaction Expense Cap, such pro rata portion to be based upon the
         principal amount of the Securities purchased by the Purchaser relative
         to the principal amount of all the Notes purchased by the Purchaser and
         the Additional Purchasers in the aggregate. Except as expressly set
         forth in this Section 5(c) and in Sections 8 and 11, the Company shall
         have no obligation to pay any costs and expenses of the Purchaser
         (except as set forth in the Registration Rights Agreement);

                  (d)      for so long as the Securities remain outstanding and
         are "restricted securities" within the meaning of Rule 144(a)(3) under
         the Securities Act, the Company will, during any period in which it is
         not subject to Section 13 or 15(d) under the Exchange Act, make
         available to the Purchaser and any holder of Securities in connection
         with any sale thereof and any prospective purchaser of Securities and
         securities analysts, in each case upon request, the information
         specified in, and meeting the requirements of, Rule 144A(d)(4) under
         the Securities Act (or any successor thereto);

                                       19
<PAGE>

                  (e)      the Company will not take any action prohibited by
         Regulation M under the Exchange Act, in connection with the issuance of
         the Securities contemplated hereby;

                  (f)      none of the Company, any of its affiliates (as
         defined in Rule 501(b) under the Securities Act) or any person acting
         on behalf of the Company or such affiliate will solicit any offer to
         buy or offer or sell the Securities by means of any form of general
         solicitation or general advertising within the meaning of Regulation D,
         including: (i) any advertisement, article, notice or other
         communication published in any newspaper, magazine or similar medium or
         broadcast over television or radio; and (ii) any seminar or meeting
         whose attendees have been invited by any general solicitation or
         general advertising;

                  (g)      none of the Company, any of its affiliates (as
         defined in Rule 501(b) under the Securities Act) or any person acting
         on behalf of the Company or such affiliate will sell, offer for sale or
         solicit offers to buy or otherwise negotiate in respect of any security
         (as defined in the Securities Act) which will be integrated with the
         sale of the Securities or the Underlying Securities in a manner which
         would require the registration under the Securities Act of the
         Securities or require stockholder approval under the rules and
         regulations of the NYSE and the Company will take all action that is
         appropriate or necessary to assure that its offerings of other
         securities will not be integrated for purposes of the Securities Act or
         the rules and regulations of the NYSE with the issuance of Securities
         contemplated hereby;

                  (h)      to use its best efforts to cause the Securities to be
         accepted for clearance and settlement through the facilities of the
         Depository Trust Company and eligible for trading on PORTAL;

                  (i)      to reserve and keep available at all times, free of
         pre-emptive rights, shares of Common Stock for the purpose of enabling
         the Company to satisfy all obligations to issue the Underlying
         Securities upon conversion of the Securities;

                  (j)      the Company will use the proceeds from the sale of
         the Securities for the amortization of its senior credit facilities
         over the next four calendar quarters and for working capital purposes,
         including the repayment of any outstanding indebtedness of the Company
         or any of its Subsidiaries;

                  (k)      the Company shall have made the following filings
         (collectively, the "8-K FILINGS"): on or before 8:30 a.m., New York
         City time, (i) on August 12, 2004, a Current Report on Form 8-K, in the
         form

                                       20
<PAGE>

         required by the Exchange Act, relating to the Bank Amendments and
         attaching copies of the Bank Amendments; and (ii) on August 12, 2004, a
         Current Report on Form 8-K, in the form required by the Exchange Act,
         relating to the transactions contemplated by the Transaction Documents
         (the "FINAL 8-K") and attaching the material Transaction Documents, or
         forms thereof, as exhibits to such filing. The parties understand that
         upon the filing of the Final 8-K, that certain Mutual Confidential
         Disclosure Agreement between the parties shall terminate pursuant to
         its terms;

                  (l)      other than as set forth in the 8-K Filings, the
         Company covenants and agrees that neither it nor any other person or
         entity acting on its behalf has provided or will provide the Purchaser
         or its agents or counsel with any information that the Company believes
         constitutes material non-public information, unless prior thereto the
         Purchaser shall have executed a written agreement regarding the
         confidentiality and use of such information. The Company understands
         and confirms that the Purchaser shall be relying on the foregoing
         representations in effecting transactions in securities of the Company;
         and

                  (m)      the Company agrees, (i) if the Company applies to
         have the Common Stock traded on any other Trading Market, it will
         include in such application the Underlying Securities, and will take
         such other action as is necessary or desirable to cause the Underlying
         Securities to be listed on such other Trading Market as promptly as
         possible, and (ii) it will take all action reasonably necessary to
         continue the listing and trading of its Common Stock on a Trading
         Market and will comply in all material respects with the Company's
         reporting, filing and other obligations under the bylaws or rules of
         the Trading Market.

         6.       Conditions to the Purchaser's Obligations. The obligation of
the Purchaser hereunder to purchase the Firm Securities on the Closing Date is
subject to the performance by the Company of its obligations hereunder and to
the following additional conditions:

                  (a)      the representations and warranties of the Company and
         each contained herein are true and correct in all material respects on
         and as of the Closing Date as if made on and as of the Closing Date
         except for those representations and warranties already qualified by
         materiality and the Company shall have complied in all material
         respects with all agreements and all conditions on its part to be
         performed or satisfied hereunder at or prior to the Closing Date;

                  (b)      the Purchaser shall have received on and as of the
         Closing Date a certificate of an executive officer of the Company and
         each of the Guarantors, with specific knowledge about the Company's
         financial matters, satisfactory to the Purchaser, to the effect set
         forth in Section 6(a)

                                       21
<PAGE>

         and to the further effect that there has not occurred any Material
         Adverse Change since the date of the Latest 10-Q;

                  (c)      Latham & Watkins LLP, special counsel for the Company
         and the Guarantors, shall have furnished to the Purchaser their written
         opinion, dated the Closing Date, in the form attached hereto as Exhibit
         A;

                  (d)      Purchaser shall have received on and as of the
         Closing Date an opinion of Kent B. Magill, Vice President, General
         Counsel and Corporate Secretary of the Company, in the form attached
         hereto as Exhibit B;

                  (e)      subsequent to the execution and delivery of this
         Agreement and prior to the Closing Date, there shall not have occurred
         any downgrading, nor shall any public notice have been given of (i) any
         intended downgrading or (ii) any review or possible change that does
         not indicate an improvement in the rating accorded any securities of or
         guaranteed by the Company by any "nationally recognized statistical
         rating organization", as such term is defined for purposes of Rule
         436(g)(2) under the Securities Act;

                  (f)      subsequent to the execution and delivery of this
         Agreement and prior to the Closing Date, any suspension or material
         limitation of trading in the Common Stock on the NYSE;

                  (g)      the Securities shall have been approved for trading
         on PORTAL, subject only to notice of issuance at or prior to the time
         of purchase;

                  (h)      the Company shall have duly executed each of the
         other Transaction Documents;

                  (i)      the Company shall have entered into purchase
         agreements, including this Agreement, obligating the Company to issue
         on the Closing Date to the Purchaser and the Additional Purchasers, in
         the aggregate, at least $100 million principal amount of Notes;

                  (j)      the Purchaser shall have received on and as of the
         Closing Date a certificate of the secretary of the Company and each of
         the Guarantors;

                  (k)      the Company and each Guarantor shall have delivered
         to the Purchaser a certificate evidencing the incorporation or
         organization and good standing of the Company or Guarantor in its state
         of incorporation or organization issued by the Secretary of State of
         such state

                                       22
<PAGE>

         of incorporation or organization as of a date within 10 days of the
         Closing Date;

                  (l)      the Company and each Guarantor shall have delivered
         to the Purchaser a certified copy of the Certificate of Incorporation
         or other organizational document as certified by the Secretary of State
         of its state of incorporation or organization as of a date within ten
         (10) days of the Closing Date; and

                  (m)      the Company shall have delivered to the Purchaser
         such other documents relating to the transactions contemplated by this
         Agreement as the Purchaser or its counsel may reasonably request.

         The obligation of the Purchaser to purchase Additional Securities
hereunder on the Option Closing Date are subject to the same conditions as are
set forth above in clauses (a)-(h) with respect to the Firm Securities, provided
that each reference to the Closing Date in this Section 6 shall, with respect to
the closing of the sale of any Additional Securities, be deemed to be a
reference to the Option Closing Date; and further provided that the
representations and warranties by the Company shall be qualified by any
disclosures contained in documents filed by the Company between the Closing Date
and the Option Closing Date with the Commission pursuant to the Exchange Act.

         7.       Conditions to the Company's Obligations. The obligations of
the Company hereunder to issue and sell the Firm Securities on the Closing Date,
or the Additional Securities on the Option Closing Date, as applicable, are
subject to the performance by the Purchaser of all of its obligations hereunder,
the accuracy in all material respects of the representations and warranties of
the Purchaser contained herein on and as of the Closing Date, or the Option
Closing Date, as applicable, as if made on and as of the Closing Date, or the
Option Closing Date, as applicable and the due execution by the Purchaser of all
other Transaction Documents to which it is a party.

         8.       Indemnity and Contribution. The Company and each of the
Guarantors agree to indemnify and hold harmless the Purchaser and its directors,
officers, employees, members, representatives and agents and each person, if
any, who controls the Purchaser within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities, including without limitation the
reasonable legal fees and other reasonable expenses incurred in connection with
any suit, action or proceeding or any claim asserted (collectively,
"LIABILITIES") caused by any breach of any representation, warranty, covenant or
agreement made by it in this Agreement.

         If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in

                                       23
<PAGE>

respect of which indemnity may be sought pursuant to the preceding paragraph,
such person (the "INDEMNIFIED PERSON") shall promptly notify the person against
whom such indemnity may be sought (the "INDEMNIFYING PERSON") in writing, and
the Indemnifying Person, upon request of the Indemnified Person, shall retain
counsel reasonably satisfactory to the Indemnified Person to represent the
Indemnified Person and any others the Indemnifying Person may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such
proceeding; provided, however, that failure to so notify the Indemnifying Person
shall not relieve such Indemnifying Person from any liability hereunder to the
extent it is not materially prejudiced as a result thereof. In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed to the contrary, (ii) the Indemnifying Person
has failed within a reasonable time to retain counsel reasonably satisfactory to
the Indemnified Person or (iii) the named parties in any such proceeding
(including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person, the Indemnifying Person proposes to have the same counsel
represent it and the Indemnified Person, and representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the Indemnifying Person shall not,
in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses actually incurred shall be promptly reimbursed upon
delivery to the Indemnifying Person of reasonable documentation therefor setting
forth such expenses in reasonable detail. The Indemnifying Person shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify any Indemnified
Person from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified
Party shall have requested the Indemnifying Party to reimburse the Indemnified
Party as contemplated by this paragraph, the Indemnifying Party agrees that it
shall be liable for any settlement of any proceeding effected without its
consent if (i) such settlement is entered into more than 60 business days after
receipt by the Indemnifying Party of the aforesaid request, (ii) such
indemnifying party shall not have reimbursed the Indemnified Party in accordance
with such request prior to the date of such settlement and (iii) such
Indemnified Party shall have given such Indemnifying Party at least 30 days'
prior notice of its intention to settle. No Indemnifying Person shall, without
the prior written consent of the Indemnified Person, effect any settlement of
any pending or threatened proceeding in respect of which any Indemnified Person
is a party, unless such settlement includes an unconditional release of such
Indemnified Person from all liability on claims that are the subject matter of
such proceeding.

                                       24
<PAGE>

         The remedies provided for in this Section 8 are not exclusive and shall
not limit any rights or remedies which may otherwise be available to any
Indemnified Person at law or in equity.

         In circumstances in which the indemnity agreement provided for in the
preceding paragraphs of this Section 8 is unavailable to, or insufficient to
hold harmless, an Indemnified Party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each Indemnifying Party, in order
to provide for just and equitable contribution, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof), including legal or other
expenses incurred, in such proportion as is appropriate to reflect (i) the
relative benefits received by the Indemnifying Party on the one hand and the
Indemnified Party on the other from the offering of the Notes or (ii) if the
allocation provided by the foregoing clause (i) is not permitted by applicable
law, not only such relative benefits but also the relative fault of the
Indemnifying Party on the one hand and the Indemnified Party on the other in
connection with the breach that resulted in such losses, claims, damages or
liabilities (or actions in respect thereof). The relative fault of the parties
shall be determined by reference to, among other things, any equitable
considerations appropriate in the circumstances. The Company and the Purchaser
agree that it would not be equitable if the amount of such contribution were
determined by pro rata or per capita allocation or by any other method of
allocation that does not take into account the equitable considerations referred
to in the first sentence of this paragraph. For purposes of this paragraph, each
person, if any, who controls the Purchaser within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Purchaser. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

         The indemnity agreements and contribution provisions contained in this
Section 8 and the representations and warranties of the Company, the Guarantors
and the Purchaser set forth in this Agreement shall remain operative and in full
force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Purchaser or any person controlling
any Purchaser or by or on behalf of the Company, its officers or directors or
any other person controlling the Company and (iii) acceptance of and payment for
any of the Securities.

         9.       Purchaser Participation Right. In the event that, within one
year from the date of this Agreement, the Company proposes to issue equity
securities or equity-linked securities in a private placement (other than
pursuant to an Exclusion), the Company shall offer the Purchaser in writing the
opportunity to purchase, on terms and conditions satisfactory to the Company, a
portion of such securities that is equal to the percentage of the Common Stock
owned by the

                                       25
<PAGE>

Purchaser immediately prior to such transaction, counting as Common Stock (on an
as-converted-to-Common Stock basis without giving effect to any limitations on
conversions) for the purposes of determining such percentage all issued and
outstanding securities of the Company that are exchangeable or exercisable for,
or convertible into, Common Stock. If the Purchaser advises the Company in
writing that it desires to proceed with the opportunity, the Company and the
Purchaser shall in good faith proceed to negotiate definitive documentation. If
the Company and the Purchaser have not entered into binding definitive
documentation for the purchase of any portion or all of such offered equity or
equity-linked securities within 10 business days of such initial offer from the
Company to the Purchaser, or such other time period as the Company and the
Purchaser shall mutually agree, the Company's obligations under this Section 9
shall terminate as to such offer as of the close of business on such 10th
business day; provided that the Company shall issue all such equity or
equity-linked securities as to which such offer relates within 45 business days
after making the offer to the Purchaser only upon terms and conditions
(including, without limitation, unit prices and interest rates) that in all
material respects and are not more favorable to the acquiring person or persons
or less favorable to the Company than those set forth in the offer notice,
subject to the following exceptions: (i) if the subject security is Common
Stock, the purchase price may be up to 10% lower than the purchase price
proposed to the Purchaser, (ii) if the subject security is convertible into, or
exercisable or exchangeable for Common Stock, the conversion, exercise or
exchange price may be up to 5% lower than the conversion, exercise or exchange
price proposed to the Purchaser and (iii) if there is any interest or dividend
payable in connection with the subject security, such interest rate or dividend
rate may not be more than 0.5% higher than the interest rate or dividend rate
proposed to the Purchaser.

         10.      Termination. The Purchaser may terminate this Agreement by
notice given to the Company, if prior to the Closing Date (i) in the reasonable
judgment of Purchaser a Material Adverse Effect shall have occurred between the
date hereof and the Closing Date, (ii) trading in any securities of or
guaranteed by the Company or securities generally on the NYSE, American Stock
Exchange or the Nasdaq National Market shall have been suspended or materially
limited or (iii) the failure of the Company to satisfy the conditions set forth
in Section 6 of this Agreement.

         11.      Effectiveness. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.

         12.      Reimbursement. If this Agreement shall be terminated by the
Purchaser because of any failure or refusal on the part of the Company to comply
with the terms or to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its obligations under this
Agreement or any condition of the Purchaser's obligations cannot be fulfilled,
the Company agrees to reimburse the Purchaser for all out-of-pocket expenses

                                       26
<PAGE>

(including the reasonable fees and expenses of its counsel) incurred by the
Purchaser in connection with this Agreement or the issuance of Securities
contemplated hereunder.

         13.      Parties. This Agreement shall inure to the benefit of and be
binding upon the Company, the Guarantors and the Purchaser, any controlling
persons referred to herein and their respective successors and, with respect to
the Purchaser, its Permitted Assigns. Nothing expressed or mentioned in this
Agreement is intended or shall be construed to give any other person, firm or
corporation any legal or equitable right, remedy or claim under or in respect of
this Agreement or any provision herein contained. No purchaser of Securities
from the Purchaser shall be deemed to be a successor by reason merely of such
purchase, and rights under this Agreement may be assigned by the Purchaser only
to Permitted Assigns. For purposes of this Section 13, "Permitted Assigns" shall
mean: (i) an "affiliate" (as defined in Rule 501(b) of Regulation D) of the
Purchaser to whom Securities are assigned and (ii) a pledgee (or a transferee of
such pledgee) that succeeds to the Securities in connection with a bona fide
margin account or other loan or financing arrangement secured by the Securities.

         14.      Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed by
registered or certified mail, postage prepaid, return receipt requested, or
otherwise delivered by hand or by messenger. Notices to the Purchaser shall be
given to it:

                              -----------

                              -----------

                              -----------
                              Telephone:
                              Facsimile:
                              Attention:

                              Copy to: (for informational purposes only)

                              Schulte Roth & Zabel LLP
                              919 Third Avenue
                              New York, New York  10022
                              Telephone:       (212) 756-2000
                              Facsimile:       (212) 593-5955
                              Attention:       Eleazer N. Klein, Esq.

Notices to the Company or the Guarantors shall be given to the Company at 12
East Armour Boulevard, Kansas City, Missouri 64111; Attention: General Counsel
(telefax: (816) 502-4138).

Copy to: (for informational purposes only) Latham & Watkins LLP, 633 West Fifth
Street, Los Angeles, California 90071; Attention: Mary Ellen Kanoff, Esq.

                                       27
<PAGE>

         15.      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. To the fullest
extent permitted by applicable law, the Company hereby irrevocably submit to the
non-exclusive jurisdiction of any New York State court or Federal court sitting
in the County of New York in respect of any suit, action or proceeding arising
out of or relating to the provisions of this Agreement and irrevocably agrees
that all claims in respect of any such suit, action or proceeding may be heard
and determined in any such court. The parties hereto hereby waive, to the
fullest extent permitted by applicable law, any objection that they may now or
hereafter have to the laying of venue of any such suit, action or proceeding
brought in any such court, and any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

         16.      Counterparts. This Agreement may be signed in counterparts,
each of which shall be an original and all of which together shall constitute
one and the same instrument.

         17.      Severability. If any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable, or
void, portions of such provision, or such provision in its entirety, to the
extent necessary, shall be severed from this Agreement and the balance of this
Agreement shall be enforceable in accordance with its terms.

         18.      Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

         19.      Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of each of the parties hereto.

         20.      Entire Agreement. This Agreement constitutes the full and
entire understanding and agreement among the parties with regard to the subjects
hereof. Neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the party
against whom enforcement of any such amendment, waiver, discharge, or
termination is sought.

         21.      Survival. The respective representations, warranties,
covenants and agreements of the Company and the Purchaser set forth in or made
pursuant to

                                       28
<PAGE>

this Agreement will remain in full force and effect and will survive delivery of
and payment for the Securities sold hereunder and any termination of this
Agreement.

         22.      Independence of Purchaser and Additional Purchasers. The
obligations of the Purchaser under any Transaction Document are several and not
joint with the obligations of any Additional Purchaser, and the Purchaser shall
be responsible in any way for the performance of the obligations of any
Additional Purchaser under any Transaction Document. Nothing contained herein or
in any other Transaction Document, and no action taken by the Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchaser and the
Additional Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchaser and the
Additional Purchasers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction
Documents. The Purchaser confirms that it has independently participated in the
negotiation of the transaction contemplated hereby. The Purchaser shall be
entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of any other
Transaction Documents, and it shall not be necessary for any Additional
Purchaser to be joined as an additional party in any proceeding for such
purpose.

                                       29
<PAGE>

                           FORM OF PURCHASE AGREEMENT

         If the foregoing is in accordance with your understanding, please sign
and return four counterparts hereof.

                                            Very truly yours,

                                            INTERSTATE BAKERIES
                                            CORPORATION

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

                                            BAKER'S INN QUALITY BAKED GOODS, LLC

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

                                            IBC SALES CORPORATION

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

                                            IBC SERVICES, LLC

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

<PAGE>

                                            INTERSTATE BRANDS CORPORATION

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

                                            IBC TRUCKING, LLC

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

The foregoing Purchase Agreement is hereby confirmed and accepted as of the date
first above written:

PURCHASER

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

Jurisdiction:
             ----------------------

<PAGE>

                                   SCHEDULE I

                               EXISTING GUARANTORS

         1)       Interstate Brands Corporation, a Delaware corporation.

         2)       IBC Sales Corporation, a Delaware corporation.

         3)       IBC Trucking, LLC, a Delaware limited liability company.

         4)       IBC Services, LLC, a Missouri limited liability company.

         5)       Baker's Inn Quality Baked Goods, LLC, a Delaware limited
                  liability company.

<PAGE>
                           FORM OF PURCHASE AGREEMENT

                                    EXHIBIT A

                     FORM OF OPINION OF LATHAM & WATKINS LLP

<PAGE>

                                    EXHIBIT B

                        FORM OF OPINION OF KENT B. MAGILL<PAGE>
                                                                    EXHIBIT 10.3

                      FORM OF REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of August 12, 2004 by and among Interstate Bakeries Corporation,
a Delaware corporation (the "Company"), and [_____________] (each, a "Purchaser"
and collectively, the "Purchasers"). Each Purchaser executed a purchase
agreement dated as of August 11, 2004 between the Company and such Purchaser
(each, a "Purchase Agreement" and together, the "Purchase Agreements").

         In order to induce each of the Purchasers to enter into its respective
Purchase Agreement, the Company has agreed to provide the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to
the closing under the Purchase Agreements.

         The Company agrees with the Purchasers (i) for their benefit as the
Purchasers and (ii) for the benefit of the beneficial owners (including the
Purchasers) from time to time of the Notes (as defined herein) and the
beneficial owners from time to time of the Underlying Common Stock (as defined
herein) issued upon conversion of the Notes (each of the foregoing a "Holder"
and together the "Holders"), as follows:

         Section 1. Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following terms shall have the
following meanings:

         "Affiliate" means with respect to any specified person, an "affiliate,"
as defined in Rule 144, of such person.

         "Amendment Effectiveness Deadline Date" has the meaning set forth in
Section 2(d) hereof.

         "Applicable Conversion Price" means, as of any date of determination,
the Conversion Price of the Notes then in effect as determined in accordance
with the terms of the Indenture or, if no Notes are then outstanding, the
Conversion Rate that would be in effect were Notes then outstanding.

         "Business Day" has the meaning assigned to such term in the Indenture.

         "Common Stock" has the meaning assigned to such term in the Indenture.

         "Conversion Price" has the meaning assigned to such term in the
Indenture.

         "EDGAR" means the Electronic Data Gathering, Analysis, and Retrieval
system by which companies file forms with the SEC.

<PAGE>

         "Effectiveness Deadline Date" has the meaning set forth in Section 2(a)
hereof.

         "Effectiveness Period" means a period that will terminate upon the
earliest of (1) the date on which all Registrable Securities held by
non-affiliates are eligible to be sold to the public pursuant to Rule 144(k)
under the Securities Act or any successor provision thereof, (2) the date when
each of the Registrable Securities covered by the Shelf Registration Statement
has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement, (3) the date on which all
Registrable Securities have been resold pursuant to Rule 144 under the
Securities Act, (4) the date on which all the Notes and the Registrable
Securities cease to be outstanding and (5) 60 days after the date that is the
two year anniversary of the Issue Date.

         "Event" has the meaning set forth in Section 2(e) hereof.

         "Event Date" has the meaning set forth in Section 2(e) hereof.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC promulgated thereunder.

         "Filing Deadline Date" has the meaning set forth in Section 2(a)
hereof.

         "Holder" has the meaning set forth in the third paragraph of this
Agreement.

         "Indenture" means the Indenture, dated as of August 12, 2004 between
the Company and U.S. Bank National Association as trustee, pursuant to which the
Notes are being issued.

          "Initial Shelf Registration Statement" has the meaning set forth in
Section 2(a) hereof.

         "Issue Date" means the first date of original issuance of the Notes.

         "Liquidated Damages Accrual Period" has the meaning set forth in
Section 2(e) hereof.

         "Liquidated Damages" has the meaning set forth in Section 2(e) hereof.

         "Liquidated Damages Payment Date" means each interest payment date
under the Indenture in the case of Notes, and each August 15 and February 15 in
the case of the Underlying Common Stock.

         "Material Event" has the meaning set forth in Section 3(i) hereof.

                                       2
<PAGE>

         "Notes" means the 6% Senior Subordinated Convertible Notes due 2014 of
the Company to be purchased pursuant to the Purchase Agreements.

         "Notice and Questionnaire" means a written notice and questionnaire
delivered to the Company containing the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A hereto.

         "Notice Holder" means, on any date, any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date, so long as all
of their Registrable Securities that have been registered for resale pursuant to
a Notice and Questionnaire have not been sold in accordance with a Shelf
Registration Statement.

         "Purchase Agreement" has the meaning set forth in the preamble hereof.

         "Prospectus" means the prospectus included in any Shelf Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 415 promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

         "Record Holder" means (i) with respect to any Liquidated Damages
Payment Date relating to any Notes as to which any such Liquidated Damages has
accrued, the holder of record of such Note on the record date with respect to
the interest payment date under the Indenture on which such Liquidated Damages
Payment Date shall occur and (ii) with respect to any Liquidated Damages Payment
Date relating to the Underlying Common Stock as to which any such Liquidated
Damages has accrued, the registered holder of such Underlying Common Stock
fifteen (15) days prior to such Liquidated Damages Payment Date.

         "Registrable Securities" means the Underlying Common Stock and any
securities into or for which such Underlying Common Stock has been converted,
and any security issued with respect thereto upon any stock dividend, split or
similar event until, in the case of any such security, the Effectiveness Period.

         "Registration Expenses" has the meaning set forth in Section 5 hereof.

          "Rule 144" means Rule 144 under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

         "Rule 144A" means Rule 144A under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

                                       3
<PAGE>

         "SEC" means the Securities and Exchange Commission.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated by the SEC thereunder.

         "Shelf Registration Statement" has the meaning set forth in Section
2(a) hereof.

         "Subsequent Shelf Registration Statement" has the meaning set forth in
Section 2(b) hereof.

         "Suspension Notice" has the meaning set forth in Section 3(i) hereof.

         "Suspension Period" has the meaning set forth in Section 3(i) hereof.

         "TIA" means the Trust Indenture Act of 1939, as amended.

         "Trustee" means U.S. Bank National Association, the Trustee under the
Indenture.

         "Underlying Common Stock" means the Common Stock issued or issuable
upon conversion or repurchase of the Notes, including any Common Stock issued or
issuable in connection with a Make-Whole Premium to be paid in accordance with
Article VIII of the Indenture.

         Section 2. Shelf Registration. (a) The Company shall prepare and file
or cause to be prepared and filed with the SEC, as soon as practicable but in
any event by the date (the "Filing Deadline Date") that is one hundred twenty
(120) days after the Issue Date, a registration statement for an offering to be
made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act
(a "Shelf Registration Statement") registering the resale from time to time by
Holders thereof of all of the Registrable Securities (the "Initial Shelf
Registration Statement"). The Initial Shelf Registration Statement shall be on
Form S-3 or another appropriate form permitting registration of such Registrable
Securities for resale by such Holders in accordance with the reasonable methods
of distribution elected by the Holders, reasonably approved by the Company, and
set forth in the Initial Shelf Registration Statement. The Company shall use its
reasonable best efforts to cause the Initial Shelf Registration Statement to be
declared effective under the Securities Act as promptly as is practicable but in
any event by the date (the "Effectiveness Deadline Date") that is two hundred
ten (210) days after the Issue Date, and to keep the Initial Shelf Registration
Statement (or any Subsequent Shelf Registration Statement) continuously
effective under the Securities Act until the expiration of the Effectiveness
Period. At the time the Initial Shelf Registration Statement is declared
effective, each Holder that became a Notice Holder on or prior to the date that
is five (5) Business Days prior to such time of effectiveness shall be named as
a selling securityholder in the Initial Shelf Registration Statement and the
related Prospectus in such a manner as to permit

                                       4
<PAGE>

such Holder to deliver such Prospectus to purchasers of Registrable Securities
in accordance with applicable law.

         (b) If the Initial Shelf Registration Statement or any Subsequent Shelf
Registration Statement ceases to be effective for any reason at any time during
the Effectiveness Period, the Company shall use its reasonable best efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof,
and in any event shall within twenty (20) days of such cessation of
effectiveness amend the Shelf Registration Statement in a manner reasonably
expected to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional Shelf Registration Statement covering all of the
securities that as of the date of such filing are Registrable Securities (a
"Subsequent Shelf Registration Statement"). If a Subsequent Shelf Registration
Statement is filed, the Company shall use its reasonable best efforts to cause
the Subsequent Shelf Registration Statement to become effective as promptly as
is practicable after such filing and to keep such Shelf Registration Statement
(or subsequent Shelf Registration Statement) continuously effective until the
end of the Effectiveness Period.

         (c) The Company shall supplement and amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to
the registration form used by the Company for such Shelf Registration Statement,
if required by the Securities Act or as reasonably requested by the Purchasers
or Trustee on behalf of the Holders covered by such Shelf Registration
Statement.

         (d) Each Holder agrees that if such Holder wishes to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus, it
will do so only in accordance with this Section 2(d) and Section 3(i). Each
Holder wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a completed and executed
Notice and Questionnaire to the Company prior to any attempted or actual
distribution of Registrable Securities under the Shelf Registration Statement;
provided that (i) the Company shall send the Notice and Questionnaire to each
Holder as soon as practicable, but not later than forty-five (45) Business Days
prior to the Filing Deadline Date and (ii) Holders shall have at least twenty
(20) Business Days from the date on which the Notice and Questionnaire is first
sent to such Holders by the Company to complete and return the Notice and
Questionnaire to the Company. From and after the date the Initial Shelf
Registration Statement is declared effective, the Company shall, as promptly as
practicable after the date a Notice and Questionnaire is delivered, and in any
event within the later of (x) ten (10) Business Days after such date or (y) ten
(10) Business Days after the expiration of any Suspension Period (1) in effect
when the Notice and Questionnaire is delivered or (2) put into effect within
five (5) Business Days of such delivery date, (i) if required by applicable law,
file with the SEC a post-effective amendment to the Shelf Registration Statement
or, if required by applicable law, prepare and file a supplement to the related
Prospectus or a supplement or amendment to any document incorporated therein by
reference or

                                       5
<PAGE>

file any other required document so that the Holder delivering such Notice and
Questionnaire is named as a selling securityholder in the Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law and, if the Company shall file a post-effective
amendment to the Shelf Registration Statement, use its reasonable best efforts
to cause such post-effective amendment to be declared effective under the
Securities Act as promptly as is practicable, but in any event by the date (the
"Amendment Effectiveness Deadline Date") that is forty-five (45) days after the
date such post-effective amendment is required by this clause to be filed; (ii)
provide such Holder a reasonable number of copies of any documents filed
pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly as
practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 2(d)(i); provided that if
such Notice and Questionnaire is delivered during a Suspension Period, or a
Suspension Period is put into effect within five (5) Business Days after such
delivery date, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above within ten (10) Business Days after expiration of the Suspension
Period in accordance with Section 3(i). Notwithstanding anything contained
herein to the contrary, the Company shall be under no obligation to name any
Holder that is not a Notice Holder as a selling securityholder in any Shelf
Registration Statement or related Prospectus; provided, however, that any Holder
that becomes a Notice Holder pursuant to the provisions of this Section 2(d)
(whether or not such Holder was a Notice Holder at the time the Shelf
Registration Statement was declared effective) shall be named as a selling
securityholder in the Shelf Registration Statement or related Prospectus in
accordance with the requirements of this Section 2(d).

         (e) The parties hereto agree that the Holders of Registrable Securities
will suffer damages, and that it would not be feasible to ascertain the extent
of such damages with precision, if (i) the Initial Shelf Registration Statement
has not been filed on or prior to the Filing Deadline Date, (ii) the Initial
Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline Date or (iii) the
Initial Shelf Registration Statement is filed and declared effective but shall
thereafter cease to be effective (without being succeeded immediately by an
additional registration statement filed and declared effective) or usable for
the offer and sale of Registrable Securities for a period of time (including any
Suspension Period) which shall exceed forty-five (45) days in the aggregate in
any three (3) month period or ninety (90) days in the aggregate in any twelve
(12) month period (each of the events of a type described in any of the
foregoing clauses (i) through (iii) are individually referred to herein as an
"Event," and the Filing Deadline Date in the case of clause (i), the
Effectiveness Deadline Date in the case of clause (ii), the date on which the
duration of the ineffectiveness or unusability of the Initial Shelf Registration
Statement in any period exceeds the number of days permitted by clause (iii)
hereof in the case of clause (iii), being referred to herein as an "Event

                                       6
<PAGE>

Date"). Events shall be deemed to continue until the following dates with
respect to the respective types of Events: the date the Initial Shelf
Registration Statement is filed in the case of an Event of the type described in
clause (i), the date the Initial Shelf Registration Statement is declared
effective under the Securities Act in the case of an Event of the type described
in clause (ii), and the date the Initial Shelf Registration Statement becomes
effective or usable again in the case of an Event of the type described in
clause (iii).

         Accordingly, commencing on (and including) any Event Date and ending on
(but excluding) the next date on which there are no Events that have occurred
and are continuing (a "Liquidated Damages Accrual Period"), the Company agrees
to pay, as liquidated damages and not as a penalty, an amount ("Liquidated
Damages") at the rate described below, payable periodically on each Liquidated
Damages Payment Date to Record Holders of Notes that are Registrable Securities
and of shares of Underlying Common Stock issued upon conversion of Notes that
are Registrable Securities, as the case may be, to the extent of, for each such
Liquidated Damages Payment Date, accrued and unpaid Liquidated Damages to (but
excluding) such Liquidated Damages Payment Date (or, if the Liquidated Damages
Accrual Period shall have ended prior to such Liquidated Damages Payment Date,
to the date of the end of the Liquidated Damages Accrual Period); provided that
any Liquidated Damages accrued with respect to any Note or portion thereof
called for redemption on a redemption date or converted into Underlying Common
Stock on a conversion date prior to the Liquidated Damages Payment Date, shall,
in any such event, be paid instead to the Holder who submitted such Note or
portion thereof for redemption or conversion on the applicable redemption date
or conversion date, as the case may be, on such date (or promptly following the
conversion date, in the case of conversion). Liquidated Damages shall accrue at
a rate per annum equal to (1) one-quarter of one percent (0.25%) for the first
90-day period from the Event Date and (2) one-half of one percent (0.50%)
thereafter of (i) the aggregate principal amount of such Notes or, without
duplication, (ii) in the case of Notes that have been converted into Underlying
Common Stock, the Applicable Conversion Price of such shares of Underlying
Common Stock, as the case may be, in each case determined as of the Business Day
immediately preceding the next Liquidated Damages Payment Date. Notwithstanding
the foregoing, no Liquidated Damages shall accrue as to any Registrable Security
from and after the earlier of (x) the date such security is no longer a
Registrable Security and (y) expiration of the Effectiveness Period. The rate of
accrual of Liquidated Damages with respect to any period shall not exceed the
rate provided for in this paragraph notwithstanding the occurrence of multiple
concurrent Events. Following the cure of all Events requiring the payment by the
Company of Liquidated Damages to the Holders of Registrable Securities pursuant
to this Section, the accrual of Liquidated Damages shall cease (without in any
way limiting the effect of any subsequent Event requiring the payment of
Liquidated Damages by the Company).

                                       7
<PAGE>

         The Trustee shall be entitled, on behalf of Holders of Notes, to seek
any available remedy for the enforcement of this Agreement, including for the
payment of any Liquidated Damages. Notwithstanding the foregoing, the parties
agree that the sole damages payable for a violation of the terms of this
Agreement with respect to which liquidated damages are expressly provided shall
be such liquidated damages. Notwithstanding the foregoing, nothing shall
preclude a Holder from pursuing or obtaining a specific performance with respect
to this Agreement.

         All of the Company's obligations set forth in this Section 2(e) that
are outstanding with respect to any Registrable Security at the time such
security ceases to be a Registrable Security shall survive until such time as
all such obligations with respect to such security have been satisfied in full
(notwithstanding termination of this Agreement pursuant to Section 8(k)).

         The parties hereto agree that the liquidated damages provided for in
this Section 2(e) constitutes a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of the
Shelf Registration Statement to be filed or declared effective or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

         Section 3. Registration Procedures. In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

         (a) Prepare and file with the SEC a Shelf Registration Statement or
Shelf Registration Statements on Form S-3 or any other appropriate form under
the Securities Act available for the sale of the Registrable Securities by the
Holders thereof in accordance with the intended method or methods of
distribution thereof, and use its reasonable best efforts to cause each such
Shelf Registration Statement to become effective and remain effective as
provided herein; provided that before filing any Shelf Registration Statement or
Prospectus or any amendments or supplements thereto with the SEC, the Company
shall furnish to the Purchasers copies of all such documents proposed to be
filed which documents (other than a prospectus supplement filed solely to update
the selling stockholder information in the Prospectus) will be subject to the
review of such counsel for a period of three (3) Business Days, and the Company
will not file the Shelf Registration Statement or Prospectus or any amendment or
supplement thereto (other than documents incorporated by reference) to which
such counsel shall reasonably object within three (3) Business Days after the
receipt thereof.

         (b) Prepare and file with the SEC such amendments and post-effective
amendments to each Shelf Registration Statement as may be necessary to keep such
Shelf Registration Statement continuously effective until the expiration of the
Effectiveness Period; cause the related Prospectus to be supplemented by any
required Prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provisions then in force) under the Securities Act; and

                                       8
<PAGE>

use its reasonable best efforts to comply with the provisions of the Securities
Act applicable to it with respect to the disposition of all securities covered
by such Shelf Registration Statement during the Effectiveness Period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such Shelf Registration Statement as so amended or such Prospectus as
so supplemented.

         (c) As promptly as practicable give notice to the Notice Holders and
the Purchasers (i) when any Prospectus, Prospectus supplement, Shelf
Registration Statement or post-effective amendment to a Shelf Registration
Statement has been filed with the SEC and, with respect to a Shelf Registration
Statement or any post-effective amendment, when the same has been declared
effective, (ii) of any request, following the effectiveness of the Initial Shelf
Registration Statement under the Securities Act, by the SEC or any other federal
or state governmental authority for amendments or supplements to any Shelf
Registration Statement or related Prospectus or for additional information,
(iii) of the issuance by the SEC or any other federal or state governmental
authority of any stop order suspending the effectiveness of any Shelf
Registration Statement or the initiation or threatening of any proceedings for
that purpose, (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (v) after the
effective date of any Shelf Registration Statement filed pursuant to this
Agreement of the occurrence of (but not the nature of or details concerning) a
Material Event and (vi) of the determination by the Company that a
post-effective amendment to a Shelf Registration Statement will be filed with
the SEC, which notice may, at the discretion of the Company (or as required
pursuant to Section 3(i)), state that it constitutes a Suspension Notice, in
which event the provisions of Section 3(i) shall apply.

         (d) Use its reasonable best efforts to prevent the issuance of, and, if
issued, to obtain the withdrawal of any order suspending the effectiveness of a
Shelf Registration Statement or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case at the earliest possible moment, and provide prompt notice
to each Notice Holder and the Purchasers of the withdrawal of any such order.

         (e) If requested by the Purchasers or any Notice Holder, as promptly as
practicable incorporate in a Prospectus supplement or post-effective amendment
to a Shelf Registration Statement such information as the Purchasers or such
Notice Holder shall, on advice from counsel, determine to be required to be
included therein by applicable law and make any required filings of such
Prospectus supplement or such post-effective amendment; provided that the
Company shall not be required to take any actions under this Section 3(e) that,
on advice from counsel for the Company, the Company determines would not be in
compliance with applicable law.

                                       9
<PAGE>

         (f) As promptly as practicable furnish to each Notice Holder, counsel
for the Holders and for the Purchasers and the Purchasers, without charge, at
least one (1) conformed copy of the Shelf Registration Statement and any
amendment thereto, including financial statements but excluding schedules, all
documents incorporated or deemed to be incorporated therein by reference and all
exhibits, which obligation shall be deemed satisfied if such information is
available through EDGAR or on or through the Company's website.

         (g) During the Effectiveness Period, deliver to each Notice Holder and
the Purchasers, in connection with any sale of Registrable Securities pursuant
to a Shelf Registration Statement, without charge, as many copies of the
Prospectus or Prospectuses relating to such Registrable Securities (including
each preliminary prospectus) and any amendment or supplement thereto as such
Notice Holder and the Purchasers may reasonably request; and the Company hereby
consents (except during such periods that a Suspension Notice is outstanding and
has not been revoked) to the use of such Prospectus or each amendment or
supplement thereto by each Notice Holder, in connection with any offering and
sale of the Registrable Securities covered by such Prospectus or any amendment
or supplement thereto in the manner set forth therein.

         (h) Prior to any public offering of the Registrable Securities pursuant
to the Shelf Registration Statement, use its reasonable best efforts to register
or qualify or cooperate with the Notice Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice Holder reasonably requests in writing (which request may be included
in the Notice and Questionnaire); and prior to any public offering of the
Registrable Securities pursuant to the Shelf Registration Statement, use its
reasonable best efforts to keep each such registration or qualification (or
exemption therefrom) effective during the Effectiveness Period in connection
with such Notice Holder's offer and sale of Registrable Securities pursuant to
such registration or qualification (or exemption therefrom) and do any and all
other acts or things reasonably necessary or advisable to enable the disposition
in such jurisdictions of such Registrable Securities in the manner set forth in
the relevant Shelf Registration Statement and the related Prospectus; provided
that the Company will not be required to (i) qualify as a foreign corporation or
as a dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Agreement or (ii) take any action that would
subject it to general service of process in suits or to taxation in any such
jurisdiction where it is not then so subject.

         (i) Upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact as a

                                       10
<PAGE>

result of which any Shelf Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, or
(C) the occurrence or existence of any pending corporate development (a
"Material Event") that, in the reasonable discretion of the Company, makes it
appropriate to suspend the availability of the Shelf Registration Statement and
the related Prospectus, (i) in the case of clause (B) or (C) above, subject to
the next sentence, as promptly as practicable, prepare and file, if necessary
pursuant to applicable law, a post-effective amendment to such Shelf
Registration Statement or a supplement to the related Prospectus or any document
incorporated therein by reference or file any other required document that would
be incorporated by reference into such Shelf Registration Statement and
Prospectus so that such Shelf Registration Statement does not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
such Prospectus does not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading (it
being understood that the Company may rely on information provided by each
Notice Holder with respect to such Notice Holder), as thereafter delivered to
the purchasers of the Registrable Securities being sold thereunder, and, in the
case of a post-effective amendment to a Shelf Registration Statement, subject to
the next sentence, use its reasonable best efforts to cause it to be declared
effective as promptly as is practicable, and (ii) give notice to the Notice
Holders and counsel for the Holders and for the Purchasers (or, if applicable,
separate counsel for the Holders) that the availability of the Shelf
Registration Statement is suspended (a "Suspension Notice") and, upon receipt of
any Suspension Notice, each Notice Holder agrees not to sell any Registrable
Securities pursuant to such Shelf Registration Statement until such Notice
Holder's receipt of copies of the supplemented or amended Prospectus provided
for in clause (g) above, or until it is advised in writing by the Company that
the Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus. The Company will use its reasonable best efforts to ensure
that the use of the Prospectus may be resumed (x) in the case of clause (A)
above, as promptly as is practicable, (y) in the case of clause (B) above, as
soon as, in the reasonable judgment of the Company, the Shelf Registration
Statement does not contain any untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading and the Prospectus does not contain any untrue
statement of a material fact or omits to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, and (z) in the case of clause (C) above,
as soon as, in the reasonable discretion of the Company, such

                                       11
<PAGE>

suspension is no longer appropriate. The period during which the availability of
the Shelf Registration Statement and any Prospectus may be suspended (the
"Suspension Period") without the Company incurring any obligation to pay
liquidated damages pursuant to Section 2(e) shall not exceed thirty (30) days in
any three (3) month period and ninety (90) days in any twelve (12) month period;
provided, however, that if the use of the Shelf Registration Statement or any
Prospectus is suspended by the Company pursuant to clause (C) above and the
subject Material Event relates to a previously undisclosed proposed or pending
material business transaction, the disclosure of which would impede the
Company's ability to consummate such transaction or cause the Company to violate
any non-disclosure agreement or confidentiality agreement in any contract
relating to such transaction, the Company may extend a Suspension Period from
thirty (30) days to forty-five (45) days.

         (j) Make available for inspection during normal business hours by
representatives for the Notice Holders of such Registrable Securities, and any
investment banks, attorneys and accountants retained by such Notice Holders, all
relevant financial and other records and pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate
officers, directors and employees of the Company and its subsidiaries to make
available for inspection during normal business hours all relevant information
reasonably requested by such representatives for the Notice Holders, or any such
investment banks, attorneys or accountants in connection with such disposition,
in each case as is customary for similar "due diligence" examinations; provided,
however, that such persons shall, at the Company's request, first agree in
writing with the Company that any information that is reasonably and in good
faith designated by the Company in writing as confidential at the time of
delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this Agreement,
unless (i) disclosure of such information is required by court or administrative
order or is necessary to respond to inquiries of regulatory authorities, (ii)
disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing
of any Shelf Registration Statement or the use of any Prospectus referred to in
this Agreement), (iii) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard by any
such person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality
agreement or is not otherwise under a duty of trust to the Company, and provided
that the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders.

         (k) Cooperate with each Notice Holder to facilitate the timely
preparation and delivery of certificates representing Registrable Securities
sold pursuant to a Shelf Registration Statement, which certificates shall not
bear any restrictive legends, and cause such Registrable Securities to be
registered in such

                                       12
<PAGE>

names as such Notice Holder may request in writing at least three (3) Business
Days prior to any sale of such Registrable Securities.

         (l) Provide the Trustee and the transfer agent for the Common Stock
with certificates for the Registrable Securities that are in a form eligible for
deposit with The Depository Trust Company.

         (m) Comply with all applicable rules and regulations of the SEC and
make generally available to its securityholders earning statements (which need
not be audited) satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder (or any similar rule promulgated under the Securities
Act) no later than 45 days after the end of any 12-month period (or 90 days
after the end of any 12-month period if such period is a fiscal year) commencing
on the first day of the first fiscal quarter of the Company commencing after the
effective date of a Registration Statement, which statements shall cover said
12-month periods.

         (n) Upon (i) the filing of the Initial Registration Statement and (ii)
the effectiveness of the Initial Registration Statement, announce the same, in
each case by press release to a nationally recognized wire service.

         (o) Cause all shares of Common Stock issuable upon conversion of the
Securities to be reserved for listing on each securities exchange or quotation
system on which the Common Stock is then listed no later than the date the
applicable Shelf Registration Statement is declared effective and, shall cause
all Common Stock to be so listed when issued.

         (p) Use its reasonable best efforts to take all other steps necessary
to effect the registration of the Registrable Securities covered by the Shelf
Registration Statement contemplated hereby.

         (q) If the Registrable Securities are in certificated form, cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing the Registrable Securities sold pursuant to any Shelf
Registration Statement free of any restrictive legends and, with respect to any
Notes, in such denominations permitted by the Indenture and registered in such
names as Holders may request at least two Business days prior to settlement of
sales of Registrable Securities pursuant to such Shelf Registration Statement.

         Section 4. Holder's Obligations. Each Holder agrees, by acquisition of
the Registrable Securities, that no Holder shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive
a Prospectus relating thereto, unless such Holder has furnished the Company with
a Notice and Questionnaire as required pursuant to Section 2(d) hereof
(including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each Notice
Holder agrees promptly to furnish to the Company all information required to be
disclosed in order to make

                                       13
<PAGE>

the information previously furnished to the Company by such Notice Holder not
misleading and any other information regarding such Notice Holder and the
distribution of such Registrable Securities as the Company may from time to time
reasonably request. Any sale of any Registrable Securities by any Holder shall
constitute a representation and warranty by such Holder that the information
relating to such Holder and its plan of distribution is as set forth in the
Prospectus delivered by such Holder in connection with such disposition, that
such Prospectus does not as of the time of such sale contain any untrue
statement of a material fact relating to or provided by such Holder or its plan
of distribution and that such Prospectus does not as of the time of such sale
omit to state any material fact relating to or provided by such Holder or its
plan of distribution necessary in order to make the statements in such
Prospectus, in the light of the circumstances under which they were made, not
misleading.

         Section 5. Registration Expenses. The Company shall bear all fees and
expenses incurred in connection with the performance by the Company of its
obligations under Section 2 and 3 of this Agreement whether or not any of the
Shelf Registration Statements are declared effective. Such fees and expenses
("Registration Expenses") shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(x) with respect to filings required to be made with the New York Stock
Exchange, and (y) of compliance with federal and state securities or Blue Sky
laws, (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities in a form eligible for deposit
with The Depository Trust Company), (iii) duplication and mailing expenses
relating to copies of any Shelf Registration Statement or Prospectus delivered
to any Holders hereunder, (iv) fees and disbursements of counsel for the Company
and the fees and disbursements of one counsel chosen by the Holders of a
majority of the then outstanding Underlying Common Stock constituting
Registrable Securities (with Holders of Notes deemed to be the Holders, for
purposes of this Section, of the number of outstanding shares of Underlying
Common Stock into which such Notes are or would be convertible, not including,
for this purpose only, any shares of Common Stock payable as a Make-Whole
Premium upon conversion of any Note) in connection with the Shelf Registration
Statement, and (v) fees and disbursements of the Trustee and its counsel and of
the registrar and transfer agent for the Common Stock. In addition, the Company
shall pay the internal expenses of the Company (including, without limitation,
all salaries and expenses of officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses
incurred in connection with the listing by the Company of the Registrable
Securities on any securities exchange on which similar securities of the Company
are then listed and the fees and expenses of any person, including special
experts, retained by the Company.

         Section 6. Indemnification; Contribution.

                                       14
<PAGE>

         (a) The Company agrees to indemnify and hold harmless each Holder and
its directors, officers, employees, members, representatives and agents and each
person, if any, who controls any Holder within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act (each, a "Holder
Indemnified Party"), from and against any loss, damage, expense, liability or
claim (including the reasonable cost of investigation) which such Holder
Indemnified Party may incur under the Securities Act, the Exchange Act or
otherwise, insofar as such loss, damage, expense, liability or claim arises out
of or is based upon any untrue statement or alleged untrue statement of a
material fact contained in any Shelf Registration Statement or Prospectus or in
any amendment or supplement thereto or in any preliminary prospectus, or arises
out of or is based upon any omission or alleged omission to state a material
fact required to be stated in any Shelf Registration Statement or in any
amendment or supplement thereto or necessary to make the statements therein not
misleading, or arises out of or is based upon any omission or alleged omission
to state a material fact necessary in order to make the statements made in any
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, in the light of the circumstances under which they were made, not
misleading, except insofar as any such loss, damage, expense, liability or claim
arises out of or is based upon any untrue statement or omission or alleged
untrue statement or omission of a material fact contained in, or omitted from,
and in conformity with information required to be included in any Shelf
Registration Statement or the related Prospectus pursuant the Securities Act
furnished in writing by or on behalf of any Holder to the Company; provided,
however, that as to any preliminary prospectus, this indemnity agreement shall
not inure to the benefit of any Holder Indemnified Party on account of any loss,
claim, damage, liability or action arising from the sale of the Registrable
Securities sold pursuant to the Shelf Registration Statement to any person by
such Holder Indemnified Party if (i) that Holder Indemnified Party failed to
send or give a copy of the Prospectus, as the same may be amended or
supplemented, to that person within the time required by the Securities Act
(other than as a result of a failure by the Company to timely deliver copies of
the Prospectus to such Holder Indemnified Party) and (ii) the untrue statement
or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact in such preliminary prospectus was corrected in the
Prospectus or a supplement or amendment thereto, as the case may be.

         (b) Each Holder, severally and not jointly, agrees to indemnify, defend
and hold harmless the Company, and its directors, officers, employees, members,
representatives and agents and each person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act (each, a "Company Indemnified Party") from and against any
loss, damage, expense, liability or claim (including the reasonable cost of
investigation) which such Company Indemnified Party may incur under the
Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability or claim arises out of or is based upon any untrue statement
or

                                       15
<PAGE>

alleged untrue statement of a material fact contained in information furnished
in writing by or on behalf of such Holder to the Company required to be included
in any Shelf Registration Statement or the related Prospectus pursuant the
Securities Act, or arises out of or is based upon any omission or alleged
omission to state a material fact required to be stated in any Shelf
Registration Statement or in any amendment or supplement thereto or necessary to
make the statements therein not misleading, or arises out of or is based upon
any omission or alleged omission to state a material fact necessary in order to
make the statements in any Prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, in the light of the circumstances under which
they were made, not misleading, in connection with such information; provided,
however, that no such Holder shall be liable for any claims hereunder in excess
of the amount of net proceeds received by such Holder from the sale of
Registrable Securities pursuant to such Shelf Registration Statement.

         (c) If any action, suit or proceeding (each, a "Proceeding") is brought
against any person in respect of which indemnity may be sought pursuant to
either subsection (a) or (b) of this Section 6, such person (the "Indemnified
Party") shall promptly notify the person against whom such indemnity may be
sought (the "Indemnifying Party") in writing of the institution of such
Proceeding and the Indemnifying Party shall assume the defense of such
Proceeding; provided, however, that failure to so notify the Indemnifying Party
shall not relieve such Indemnifying Party from any liability hereunder to the
extent it is not materially prejudiced as a result thereof and in any event
shall not relieve it from any liability which it may otherwise have than on
account of this indemnity agreement. Such Indemnified Party shall have the right
to employ its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party unless (i) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the contrary, (ii) the
Indemnifying Party has failed within a reasonable time after receipt of notice
to assume defense of a Proceeding to retain counsel reasonably satisfactory to
the Indemnified Party or (iii) the named parties in any such Proceeding
(including any impleaded parties) include both the Indemnifying Party and the
Indemnified Party, the Indemnifying Party proposes to have the same counsel
represent it and the Indemnified Party, and representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the Indemnifying Party shall not,
in connection with any Proceeding or related Proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Parties, and that all
such fees and expenses actually incurred shall be promptly reimbursed upon
delivery to the Indemnifying Party of reasonable documentation therefor setting
forth such expenses in reasonable detail. The Indemnifying Party shall not be
liable for any settlement of any Proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Party agrees to indemnify and hold harmless any
Indemnified Party from and against any loss or liability by reason of such

                                       16
<PAGE>

settlement or judgment. Notwithstanding the foregoing sentence, if at any time
an Indemnified Party shall have requested the Indemnifying Party to reimburse
the Indemnified Party as contemplated by this paragraph, the Indemnifying Party
agrees that it shall be liable for any settlement of any Proceeding effected
without its consent if (i) such settlement is entered into more than 60 Business
Days after receipt by the Indemnifying Party of the aforesaid request, (ii) such
indemnifying party shall not have reimbursed the Indemnified Party in accordance
with such request prior to the date of such settlement and (iii) such
Indemnified Party shall have given such Indemnifying Party at least 30 days'
prior notice of its intention to settle. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending or threatened Proceeding in respect of which any Indemnified Party is a
party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

         (d) If the indemnification provided for in this Section 6 is
unavailable to an Indemnified Party under subsections (a) and (b) of this
Section 6 in respect of any losses, damages, expenses, liabilities or claims
referred to therein, then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, damages, expenses,
liabilities or claims (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Holders on the
other hand from the offering of the Registrable Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company on
the one hand and of the Holders on the other in connection with the statements
or omissions which resulted in such losses, damages, expenses, liabilities or
claims, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and of the Holders on the other shall be
determined by reference to, among other things, whether the untrue statement or
alleged untrue statement of a material fact or omission or alleged omission
relates to information supplied by the Company or by the Holders and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by a
party as a result of the losses, damages, expenses, liabilities and claims
referred to above shall be deemed to include any reasonable legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any Proceeding.

         (e) The Company and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in subsection (d) above. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not

                                       17
<PAGE>

guilty of such fraudulent misrepresentation. The Holders' respective obligations
to contribute pursuant to this Section 6 are several in proportion to the
respective amount of Registrable Securities they have sold pursuant to a Shelf
Registration Statement, and not joint. The remedies provided for in this Section
6 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

         (f) The indemnity and contribution provisions contained in this Section
6 shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
any Holder or any person controlling any Holder, or the Company, or the
Company's officers or directors or any person controlling the Company and (iii)
the sale of any Registrable Security by any Holder.

         Section 7. Information Requirements. (a) The Company covenants that, if
at any time before the end of the Effectiveness Period it is not subject to the
reporting requirements of the Exchange Act, it will cooperate with any Holder
and take such further action as any Holder may reasonably request in writing,
all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144, Rule 144A, Regulation S and
Regulation D under the Securities Act and customarily taken in connection with
sales pursuant to such exemptions. Upon the written request of any Holder, the
Company shall deliver to such Holder a written statement as to whether it has
complied with such filing requirements, unless such a statement has been
included in the Company's most recent report filed with the SEC pursuant to
Section 13 or Section 15(d) of Exchange Act. Notwithstanding the foregoing,
nothing in this Section 7 shall be deemed to require the Company to register any
of its securities (other than the Common Stock) under any section of the
Exchange Act.

         (b) The Company shall file the reports required to be filed by it under
the Exchange Act and shall comply with all other requirements set forth in the
instructions to Form S-1 or Form S-3, as the case may be, in order to allow the
Company to be eligible to file registration statements on Form S-1 or Form S-3.

         Section 8. Miscellaneous.

         (a) No Conflicting Agreements. The Company is not, as of the date
hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the
rights granted to the Holders of Registrable Securities in this Agreement. The
Company represents and warrants that the rights granted to the Holders of
Registrable Securities hereunder do not in any way conflict with the rights
granted to the holders of such Company's securities under any other agreements.
Notwithstanding the foregoing, the Holders acknowledge that the Company is

                                       18
<PAGE>

obligated, and may obligate itself from time to time in the future, to register
its securities for other holders.

         (b) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of a
majority of the then outstanding Underlying Common Stock constituting
Registrable Securities (with Holders of Notes deemed to be the Holders, for
purposes of this Section, of the number of outstanding shares of Underlying
Common Stock into which such Notes are or would be convertible as of the date on
which such consent is requested excluding, for this purpose only, any shares of
Common Stock payable as a Make-Whole Premium upon conversion of any Note).
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders of Registrable Securities whose securities are being sold pursuant to a
Shelf Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders
pursuant to such Shelf Registration Statement; provided that the provisions of
this sentence may not be amended, modified, or supplemented except in accordance
with the provisions of the immediately preceding sentence. Each Holder at the
time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(b), whether or not any
notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

         (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by
courier guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the
parties as follows:

         (x) if to a Holder, at the most current address given by such Holder to
the Company in the applicable Purchase Agreement or upon any transfer of the
Notes;

         with a copy (for informational purposes only) to:

                  Schulte Roth & Zabel LLP
                  919 Third Avenue

                                       19
<PAGE>

                  New York, New York  10022
                  Telephone:        (212) 756-2000
                  Facsimile:        (212) 593-5955
                  Attention:        Eleazer N. Klein, Esq.

         (y)      if to the Company, to:

                  12 East Armour Boulevard
                  Kansas City, Missouri 64111
                  Attention:  General Counsel

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

         (d) Approval of Holders. Whenever the consent or approval of Holders is
required hereunder, Notes held by the Company or its affiliates (as such term is
defined in Rule 405 under the Securities Act) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

         (e) Successors and Assigns. Any person who purchases any Notes or
Registrable Securities from the Purchasers or any Holder shall be deemed, for
purposes of this Agreement, to be an assignee of the Purchasers or such Holder,
as the case may be. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties and shall inure to the
benefit of and be binding upon each Holder. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto
or their respective successors and assigns any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
by this Agreement.

         (f) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

         (g) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THEREOF.

         (i) Severability. If any term, provision, covenant or restriction of
this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in

                                       20
<PAGE>

full force and effect and shall in no way be affected, impaired or invalidated
thereby.

         (j) Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Company with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and
undertakings among the parties with respect to such registration rights.

         (k) Termination. This Agreement and the obligations of the parties
hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Section 4, 5 or 6 hereof and the
obligations to make payments of and provide for liquidated damages under Section
2(e) hereof to the extent such liquidated damages accrues prior to the end of
the Effectiveness Period, each of which shall remain in effect in accordance
with its terms.

                                       21
<PAGE>

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

                                       INTERSTATE BAKERIES CORPORATION

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

The foregoing Registration Rights Agreement is hereby confirmed and accepted as
of the date first above written by each of the following:

PURCHASER

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

PURCHASER

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

PURCHASER

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

                                       22
<PAGE>

                                     ANNEX A

                         INTERSTATE BAKERIES CORPORATION

             FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

To be named as a selling securityholder in the prospectus, beneficial owners
shall complete and deliver this Notice and Questionnaire within 20 business days
after the date of the written request therefore by the Company. Beneficial
owners that do not complete this Notice and Questionnaire and deliver it to the
Company within such 20 business day period will not be eligible to he named as
selling securityholders in the prospectus and therefore will not be permitted to
sell any Registrable Securities (as defined below) pursuant to the Shelf
Registration Statement (as defined below).

The undersigned beneficial owner of 6% Senior Subordinated Convertible Notes due
2014 (the "Notes") of Interstate Bakeries Corporation (the "Company" or
"Registrant") or common stock, $0.01 par value (the "common stock" or the
"Registrable Securities") of the Company understands that the Registrant has
filed or intends to file with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-1 or Form S-3 (the "Shelf
Registration Statement") for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the "Securities Act"), of the Registrable
Securities, in accordance with the terns of the Registration Rights Agreement,
to be dated as of August __, 2004 (the "Registration Rights Agreement"), between
the Company and the purchasers named therein. A copy of the Registration Rights
Agreement is available from the Company upon request at the address set forth
below. All capitalized terms not otherwise defined herein shall have the meaning
ascribed thereto in the Registration Rights Agreement.

Each beneficial owner of Registrable Securities is entitled to the benefits of
the Registration Rights Agreement. In order to sell or otherwise dispose of any
Registrable Securities pursuant to the Shelf Registration Statement, a
beneficial owner of Registrable Securities generally will be required to be
named as a selling securityholder in the related prospectus, deliver a
prospectus to purchasers of Registrable Securities and be bound by those
provisions of the Registration Rights Agreement applicable to such beneficial
owner (including certain indemnification provisions, as described below).
Beneficial owners that do not complete this Notice and Questionnaire and deliver
it to the Company within the 20 business day period described in the first
paragraph of this Notice and Questionnaire will not be named as selling
securityholders in the prospectus and therefore will not be permitted to sell
any Registrable Securities pursuant to the Shelf Registration Statement.
Beneficial owners are encouraged to complete and timely deliver this Notice and
Questionnaire so that such beneficial owners may be named as selling
securityholders in the related prospectus at the time of effectiveness. Upon
receipt of a completed (if timely delivered) Notice and Questionnaire from a
beneficial owner following the effectiveness of the Shelf Registration
Statement, the Company will, as promptly as practicable but in any event within
five business days of such receipt, file such amendments to the Shelf
Registration Statement or supplements to the related prospectus as are necessary
to permit such holder to deliver such prospectus to purchasers of Registrable
Securities. The Company has agreed to pay liquidated damages pursuant to the
Registration Rights Agreement under certain circumstances as set forth therein.

                                      A-1
<PAGE>

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult
their own securities law counsel regarding the consequences of being named or
not being named as a selling securityholder in the Shelf Registration Statement
and the related prospectus.

                                     NOTICE

The undersigned beneficial owner (the "Selling Securityholder") of Registrable
Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under such Item 3) pursuant to the
Shelf Registration Statement. The undersigned, by signing and returning this
Notice and Questionnaire, understands that it will be bound by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement.

Pursuant to the Registration Rights Agreement, the undersigned has agreed to
indemnify and hold harmless the Company's directors and officers and each
person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), from and against certain losses arising in
connection with statements concerning the undersigned made in the Shelf
Registration Statement or the related prospectus in reliance upon the
information provided in this Notice and Questionnaire.

If the Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item 3 below after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under
this Notice and Questionnaire and the Registration Rights Agreement.

The undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

                                  QUESTIONNAIRE

1.       (a)      Full Legal Name of Selling Securityholder:

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

         (b)      Full Legal Name of Registered Holder (if not the same as (a)
                  above) through which Registrable Securities Listed in Item 3
                  below are held:

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

         (c)      Full Legal Name of DTC participant (if applicable and if not
                  the same as (b) above) through which Registrable Securities
                  listed in Item 3 below are held:

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

                                      A-2
<PAGE>

2.       Address for Notices to Selling Securityholder:

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

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

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

Telephone:
          ----------------------------------------------------------------------

Fax:
          ----------------------------------------------------------------------

Contact Person:
               -----------------------------------------------------------------

3.       Beneficial Ownership of Registrable Securities:

         (a)      Type and Principal Amount of Registrable Securities
                  beneficially owned:

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

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

         (b)      CUSIP No(s). of such Registrable Securities beneficially
                  owned:

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

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

4.       Beneficial Ownership of Other Securities of the Company Owned by the
         Selling Securityholder.

         Except as set forth below in this Item 4, the undersigned is not the
         beneficial or registered owner of any securities of the Company other
         than the Registrable Securities listed above in Item 3.

         (a)      Type and Amount of Other Securities beneficially owned by the
                  Selling Securityholder:

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

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

         (b)      CUSIP No(s). of such Other Securities beneficially owned:

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

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

                                      A-3
<PAGE>

5.       Relationships with the Company:

         Except as set forth below, neither the undersigned nor any of its
         affiliates, officers, directors or principal equity holders (owners of
         5% of more of the equity securities of the undersigned) has held any
         position or office or has had any other material relationship with the
         Company (or its predecessors or affiliates) during the past three
         years.

         State any exceptions here:

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

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

6.       Broker-Dealers and their Affiliates

         (a)      Is the Selling Securityholder a broker-dealer or an affiliate
                  of a broker-dealer:

                  Yes ____ No ____

         If so, please answer the remaining question in this section.

                  (i)      Please advise whether the notes were received by the
                           Selling Securityholder as compensation for investment
                           banking services or as investment shares, and if so
                           please describe the circumstances.

         Note that in general we may be required to identify any registered
         broker-dealer as an underwriter in the prospectus.

                  (ii)     Except as set forth below, if the Selling
                           Securityholder is a registered broker-dealer, the
                           Selling Securityholder does not plan to make a market
                           in the Registrable Securities. If the Selling
                           Securityholder plans to make a market in the
                           Registrable Securities, please indicate whether the
                           Selling Securityholder plans to use the prospectus
                           relating to the Registrable Securities as a
                           market-making prospectus.

         (b)      Affiliation with Broker-Dealers

         Is the Selling Securityholder an affiliate(1) of a registered
         broker-dealer?

                  Yes ____          No ____

         If so, please answer the remaining question in this section.

                  (i)      Please describe the affiliation between the Selling
                           Securityholder and any registered broker-dealer.

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

(1) An "affiliate" of a specified person or entity means a person or entity that
directly, or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the person or entity specified.

                                      A-4
<PAGE>

                  (ii)     If the notes were purchased by the Selling
                           Securityholder other than in the ordinary course of
                           business, please describe the circumstances.

                  (iii)    Please advise whether the notes were received by the
                           Selling Securityholder as compensation for investment
                           banking services or as investment shares, and if so
                           please describe the circumstances.

                  (iv)     If the Selling Securityholder, at the time of its
                           purchase of Registrable Securities, had any
                           agreements or understandings, directly or indirectly,
                           with any person to distribute the Registrable
                           Securities, please describe such agreements or
                           undertakings.

         Note that if the Selling Securityholder is an affiliate of a
         broker-dealer and did not purchase its notes in the ordinary course of
         business or at the time of the purchase had any agreements or
         understandings, directly or indirectly, to distribute the securities,
         we may be required to identify the Selling Securityholder as an
         underwriter in the prospectus.

         (c)      Beneficial Ownership by Natural Persons:

         Is the Selling Securityholder is an entity, does any natural person
         having voting or investing power over the Registrable Securities held
         by the Selling Securityholder?(2)

         If so, please state the person's or persons' name(s):

7.       Beneficial Ownership by Natural Persons or by a Board or Committee

         Is the Selling Securityholder a reporting entity with the Securities
         and Exchange Commission?

         If the Selling Securityholder is a majority owned subsidiary of a
         reporting entity, identify the majority stockholder that is a reporting
         entity.

                  Yes ____ No ____

         If No, please answer the remaining questions in this section.

                  (i)      Please name the natural person or person(s) having
                           voting and/or investment control over the Selling
                           Securityholder.(3)

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

(2) Please answer "Yes" if any natural person, directly or indirectly, through
any contract, arrangement, understanding, relationship, or otherwise has or
shares: (a) voting power which includes the power to vote, or to direct the
voting of, such security; and/or, (b) investment power which includes the power
to dispose, or to direct the disposition of, the Registrable Securities held by
the Selling Securityholder.

(3) Please include any natural person that, directly or indirectly, through any
contract, arrangement, understanding, relationship, or otherwise has or shares:
(a) voting power which includes the power to vote, or to direct the voting of,
such security; and/or, (b) investment power which includes the power to dispose,
or to direct the disposition of, the Registrable Securities held by the Selling
Securityholder.

                                      A-5
<PAGE>

                  (ii)     If the voting and/or investment control over the
                           Selling Securityholder is held by board or committee,
                           please state the name of the natural person or
                           person(s) on such board or committee.

8.       Plan of Distribution:

         Except as set forth below, the undersigned (including its donees or
         pledgees) intends to distribute the Registrable Securities listed above
         in Item 3 pursuant to the Shelf Registration Statement only as follows
         (if at all): Such Registrable Securities may be sold from time to time
         directly by the undersigned or, alternatively, through underwriters,
         broker-dealers or agents. If the Registrable Securities are sold
         through underwriters, broker-dealers or agents, the Selling
         Securityholder will be responsible for underwriting discounts or
         commissions or agents' commissions. Such Registrable Securities may be
         sold in one or more transactions at fixed prices, at prevailing market
         prices at the time of sale, at varying prices determined at the time of
         sale or at negotiated prices. Such sales may be effected in
         transactions (which may involve block transactions) (i) on any national
         securities exchange or quotation service on which the Registrable
         Securities may be listed or quoted at the time of sale, (ii) in the
         over-the-counter market, (iii) in transactions otherwise than on such
         exchanges or services or in the over-the-counter market, or (iv)
         through the writing of options. In connection with sales of the
         Registrable Securities or otherwise, the undersigned may enter into
         hedging transactions with broker-dealers, which may in turn engage in
         short sales of the Registrable Securities in the course of hedging
         positions they assume. The undersigned may also sell Registrable
         Securities short and deliver Registrable Securities to close out short
         positions, or loan or pledge Registrable Securities to broker-dealers
         that in turn may sell such securities.

         State any exceptions here:

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

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

Note: In no event will such method(s) of distribution take the form of an
underwritten offering of the Registrable Securities without the prior written
agreement of the Company.

The undersigned acknowledges its obligation to comply with the provisions of the
Exchange Act and the rules thereunder relating to stock manipulation,
particularly Regulation M thereunder (or any successor rules or regulations), in
connection with any offering of Registrable Securities pursuant to the
Registration Rights Agreement. The undersigned agrees that neither it nor any
person acting on its behalf will engage in any transaction in violation of such
provisions.

The Selling Securityholder hereby acknowledges its obligations under the
Registration Rights Agreement to indemnify and hold harmless certain persons as
set forth therein.

Pursuant to the Registration Rights Agreement, the Company has agreed under
certain circumstances to indemnify the Selling Securityholder against certain
liabilities.

In accordance with the undersigned's obligation under the Registration Rights
Agreement to provide such information as may be required by law for inclusion in
the Shelf Registration

                                      A-6
<PAGE>

Statement, the undersigned agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Shelf Registration Statement
remains effective.

All notices hereunder and pursuant to the Registration Rights Agreement shall be
made in writing by hand delivery, first class mail or air courier guaranteeing
overnight delivery to the address set forth below.

By signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Shelf Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Shelf Registration
Statement and the related prospectus.

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives and assigns of the Company and the Selling
Securityholder with respect to the Registrable Securities beneficially owned by
such Selling Securityholder and listed in Item (3) above. This Agreement shall
be governed in all respects by the laws of the State of New York.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated:                          Beneficial Owner:
      ----------------------                     -------------------------------
                                By:
                                   ---------------------------------------------
                                Name:
                                     -------------------------------------------
                                Title:
                                      ------------------------------------------

               PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND
                QUESTIONNAIRE TO INTERSTATE BAKERIES CORPORATION

                          Interstate Bakeries Corporation
                          12 East Armour Boulevard
                          Kansas City, Missouri 64111
                          Attention: General Counsel

                                      A-7

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