Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Double asterisks denote omissions.  

      Exhibit 10.7

AMENDED AND RESTATED CO-PACKING AGREEMENT

THIS AMENDED AND RESTATED CO-PACKING AGREEMENT (“Agreement”), dated December 2,
2012, but effective as of the Effective Date (as defined below), is by and
between WWF Operating Company, a Delaware corporation (f/k/a WhiteWave Foods
Company), on the one hand (“Buyer”), and Morningstar Foods, LLC, a Delaware
limited liability company, on the other hand (“Supplier”).

RECITALS

A. Supplier is engaged in the business of manufacturing, packaging and
distributing a variety of products, including but not limited to fluid milk
products, dairy products (including creams and cultured products) and related
products, and wishes to manufacture and sell Products (as defined below) to
Buyer upon the terms and conditions set forth herein.

B. Buyer is engaged in the business of distributing and selling a variety of
products, including but not limited to fluid milk products, dairy products
(including creams and cultured products) and related products, and wishes to
purchase Products from Supplier upon the terms and conditions set forth herein
for distribution and resale to Buyer’s customers.

C. Supplier and Buyer have negotiated this Agreement in anticipation of the sale
by Dean Foods Company of all of the equity interests of Supplier to Saputo
Cheese USA Inc. (the “Morningstar Transaction”), and Supplier and Buyer intend
that this Agreement shall become effective immediately upon the date on which
closing of the Morningstar Transaction occurs, without any further action
required by either party hereto (such date, the “Effective Date”).

D. Buyer and Supplier previously entered into a Co-Packing Agreement dated
August 2, 2012, as amended by Amendment 1 thereto dated September 11, 2012, and
Amendment 2 thereto dated November 12, 2012 (collectively, the “Prior
Agreement”), that became effective in connection with the consummation of an
initial public offering by Dean Foods Company of certain equity interests in
Buyer. Upon this Agreement’s effectiveness in the manner provided above, this
Agreement shall supersede the Prior Agreement in its entirety and the Prior
Agreement shall cease to be of any force or effect.

NOW, THEREFORE, for and in consideration of the mutual promises and covenants
set forth herein, as well as Buyer and Supplier’s execution and delivery of that
certain Asset Purchase Agreement, and related agreements referenced therein, all
dated of even date herewith, and intending to be legally bound, the parties do
hereby agree as follows:

1. Products and Specifications. Buyer shall purchase from Supplier the products
listed in Exhibit A attached hereto and incorporated herein by reference (as
such list may be amended by mutual written agreement of the parties from time to
time, the “Products”), as reflected in purchase orders or EDI orders submitted
from time to time in accordance with the provisions of this Agreement. In
connection with manufacturing and packaging the Products purchased hereunder,
Supplier shall comply in all material respects with the specifications for such
Products in use by Buyer as of the date hereof (as such specifications may be
amended by mutual written agreement of the parties from time to time, the
“Specifications”). Each particular Product may be processed and manufactured at
(i) the specific Supplier facilities identified on Exhibit A (the “Original
Facilities”) or (ii) any other Supplier facilities

 

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specified by Supplier (the “Discretionary Facilities”); provided, that in the
case of clause (ii), (A) any Discretionary Facility must be qualified to at
least the level of the prior Original Facility prior to any Products being
produced at the Discretionary Facility and (B) the price for any Products being
produced at a Discretionary Facility will remain FOB the Original Facility, and
Supplier shall be responsible for all incremental costs (including freight)
arising from the movement of Product manufacturing from an Original Facility to
a Discretionary Facility. Notwithstanding the foregoing, for any Products
produced by Supplier at one facility that are, at Buyer’s request, picked up by
Buyer’s employees, agents, representatives or carriers at a different Supplier
facility (collectively, “Resupply Products”), Supplier shall arrange and pass
through to Buyer the actual costs of all freight relating to the shipment of
Resupply Products from the Supplier producing facility to the Supplier receiving
facility.

2. Term. Each Product category shall be manufactured by Supplier beginning on
the Effective Date and for the duration of the term identified in Exhibit A
relating to such Product category (such term, the “Initial Term”). Each Product
category term shall have the respective autorenewal period and required
autorenewal termination notice provision identified in Exhibit A relating to
such Product category. With respect to each Product category, the Initial Term
and all extensions, if any, shall constitute the “Term” of this Agreement,
subject to earlier termination as provided herein.

3. Product Inputs; Raw Organic Milk.

A. Supplier shall supply all Product inputs; provided, however, that Buyer shall
have the right to purchase Product inputs for use in the production of Products
and deliver such inputs to Supplier upon sixty (60) days written notice to
Supplier. Except for those Product formulas and specifications for the specific
Products on Schedules 1 through 6 of Exhibit A that are denoted by the letter
“S” in the far right-hand column, and except as otherwise set forth in the
“Note” appearing at the bottom of Schedule 7 of Exhibit A, all Product formulas
and specifications will be owned exclusively by Buyer, and Supplier shall have
no rights of ownership in, or use of, for themselves or for third parties, such
formulas or specifications, including without limitation, license rights, other
than the license contemplated herein; provided, that nothing contained herein,
including the restrictive covenant set forth in the last sentence of Section 11
hereof, shall prohibit Supplier from developing customized products in the
normal course of its business consistent with past practice based on Supplier’s
own independent product analysis. If required by Buyer, Supplier shall purchase
any proprietary ingredients from suppliers designated by Buyer. Any such
purchases shall be invoiced to Buyer by Supplier as part of the applicable
Materials, Ingredients and Packaging (“MIP”) cost (as described in the pricing
component description on Exhibit A).

B. Buyer will supply 100% of the raw organic milk required by Supplier to
perform under the Agreement. Supplier shall use Buyer supplied raw organic milk
to manufacture Products under the Agreement. In the event that Buyer institutes
allocations of finished organic milk products, Buyer shall have the right to
apply the same allocation methodology to Supplier’s supply of raw organic milk
as Buyer uses for its own finished organic milk products. Buyer may offset any
amounts owed to Supplier for Products hereunder against any unpaid invoices for
raw organic milk supplied by Buyer to Supplier hereunder. Notwithstanding the
foregoing, to the extent Buyer provides Supplier more raw organic milk hereunder
than Supplier requires, Supplier may use such excess raw organic milk in any
manner that Supplier chooses; provided, that if Supplier uses any such excess
raw organic milk or excess organic cream in the manufacture of conventional milk
or cream products, then Supplier will invoice Buyer, and Buyer shall be required
to pay Supplier, for the difference between the raw organic milk price or
organic cream price, as applicable, and the raw conventional milk price or
conventional cream price, as applicable, that is applicable to such excess milk
or cream. For all excess raw organic milk or organic

 

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cream received by Supplier in the first fifteen (15) days of any month that is
used by Supplier in the manufacture of conventional milk or cream products,
Buyer shall pay Supplier the amount specified above on or prior to the thirtieth
(30th) day of such month in which such milk or cream was received by Supplier.
For all excess raw organic milk or organic cream received by Supplier on or
after the sixteenth (16th) day of any month that is used by Supplier in the
manufacture of conventional milk or cream products, Buyer shall pay Supplier the
amount specified above on or prior to the fifteenth (15th) day of the month
following the month in which such milk or cream was received by Supplier.

C. Milk Pooling Charges. On a monthly basis, Supplier will invoice Buyer for any
pooling charges incurred above the price paid to Buyer for the raw organic milk
supply used in this Agreement. Supplier will provide this invoice to Buyer by
the 10th day of each month. Buyer will remit payment to Supplier by the 20th day
of such month.

4. Orders; Forecasts; Delivery; Warehousing.

A. Orders. Buyer’s purchase of Products hereunder shall be made pursuant to
purchase orders or EDI orders which comply with all the terms and conditions set
forth in this Agreement and which are in a form reasonably acceptable to both
parties (a “Purchase Order”). Buyer shall submit Purchase Orders to Supplier
pursuant to such procedures as may be mutually and reasonably agreed upon in
writing by the parties, including procedures to be utilized for canceling or
modifying any such Purchase Orders after submittal. The parties agree that
(a) the required minimum lead time for each and every type of Product shall be
the same required minimum lead time as was applicable to Supplier’s customers
immediately prior to the Effective Date (“Minimum Lead Time”) and (b) the
minimum quantity of total Product ordered in any Purchase Order shall be the
same minimum quantity requirement as was applicable to Supplier’s customers
immediately prior to the Effective Date (“Minimum Production Run”). With respect
to the Minimum Lead Time requirements, the applicable time period shall commence
upon Supplier’s receipt of a Purchase Order which complies with all provisions
of this Agreement. If Buyer cancels or modifies a previously submitted Purchase
Order, then Buyer shall be obligated to purchase at the time of such
cancellation or modification any and all Products so ordered which Supplier has
commenced to manufacture, or for which Supplier can demonstrate to Buyer in good
faith that Supplier has acquired ingredients, materials or packaging which may
not otherwise be reasonably used in the normal course of Supplier’s operations.
All Purchase Orders shall clearly indicate the desired ship date and the amount,
kind and size of Products subject to such Purchase Order.

B. Rolling Forecasts. The parties shall cooperate in good faith to develop
rolling twelve (12) month (by Product and pack type), non-binding order
forecasts of Buyer’s needs for the Products. The parties shall use commercially
reasonable efforts to provide such forecasts at least ten (10) business days
prior to the start of the applicable month.

C. Delivery; Transfer of Title to Products. For Products other than Resupply
Products, Product will be delivered FOB at the plant of manufacture. For
Resupply Products, Product will be delivered FOB at the receiving Supplier
plant. Except as set forth in the next sentence, title and risk of loss shall
pass to Buyer immediately upon tender of possession to Buyer, to any of Buyer’s
employees, agents or representatives, or to any carriers (including Supplier)
arranged or approved by Buyer. If Supplier has produced Product in accordance
with the applicable order and Buyer does not take custody of the Product in a
timely manner, such delay resulting in spoilage or an insufficient amount of
code date of the Product, then Buyer shall be responsible for the loss
associated with such Product. If any spoilage or event resulting in an
insufficient amount of code date of the Product is caused by the actions of
Supplier, then Supplier shall be responsible for the loss associated with such
Product.

 

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D. Warehousing. Supplier will warehouse finished Products for up to seventy-five
(75) days. Buyer will not be charged for finished Products warehoused for
fourteen (14) days or less. Buyer shall pay a non-prorated charge of $20 per
pallet position for finished Products that are warehoused for more than fourteen
(14) days and up to forty-five (45) days. Buyer shall pay an additional
non-prorated charge of $20 per pallet position for finished Products warehoused
for more than forty-five (45) days; provided, that no finished Products may
remain warehoused for more than seventy-five (75) days. Buyer will be
responsible for all transportation costs associated with any such warehousing.

5. Prices; Price Adjustments; Volume Requirements; Deficiency Payments; Payment
Terms; Limited Audit Rights.

A. Initial Prices. Subject to the price adjustments described in this Agreement
and the Exhibits hereto, Buyer shall pay to Supplier, for each Product which
Buyer orders hereunder, the price for such Product specified on Exhibit A
hereto; provided that Exhibit A shall be updated by mutual written agreement of
Buyer and Supplier prior to the Effective Date to reflect the initial MIP cost
per case for each Product category. Thereafter, both dairy related MIP costs and
non-dairy related MIP costs shall be adjusted monthly in accordance with the
procedures set forth in Exhibit A. Prior to the first delivery of any Products
not listed on Exhibit A, the parties will mutually agree in writing upon the
price applicable thereto and, thereafter, such price shall be subject to the
price adjustments described in this Agreement; provided, that pricing for any
such new Products shall be subject to the same pricing protocols and components
as existing Products unless mutually agreed in writing between the parties.

B. Price Adjustments. Prices shall be adjusted as described on Exhibit A hereto,
and each time any such price adjustment is made as described, the prices set
forth on Exhibit A shall be deemed to be automatically amended to reflect such
adjusted prices without further action on the part of the parties; provided,
that such adjusted prices shall not become effective until the first day of the
month following the month in which such price adjustment was made. Supplier
shall provide Buyer with written notice of such monthly price adjustments at
least five (5) days prior to the date any such price adjustment is to become
effective, and the form of such monthly price change notification shall be
agreed upon by Supplier and Buyer in due course and subsequently attached to
this Agreement as Exhibit B. Supplier and Buyer agree to use good faith efforts,
and shall work together, to ensure that price adjustments are reflected in the
Product price in a timely manner.

C. Volume Requirements. The price contained on Exhibit A for any specific
Product shall be contingent on Buyer ordering the category volume minimum for
the applicable Product category set forth on Exhibit A. During the Term,
Supplier shall reserve for Buyer capacity equal to the category volume minimum
for each Product category as set forth on Exhibit A. Notwithstanding the
preceding sentence, Buyer may request, and Supplier shall supply, the category
volume maximum for each Product category set forth on Exhibit A.

D. Deficiency Payments; Volume Credits. If Buyer fails to order the annual
minimum volume for any Product category as set forth in Exhibit A, then Buyer
will be required to pay to Supplier an amount equal to (i) each applicable unit
of volume for such Product category below the applicable minimum volume
threshold, multiplied by (ii) the applicable Deficiency Tolling Fee for such
Product category as set forth on Exhibit A hereto (such amount, a “Volume
Related Deficiency Payment”). Notwithstanding the foregoing, in the event Buyer
tenders volume for Products to Supplier for processing and Supplier fails to
process such volume (for any reason other than a Force Majeure Event)
(“Unprocessed Volume”), then the amount of Unprocessed Volume shall be treated
as volume

 

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ordered by Buyer for the purposes of determining the amount of any Volume
Related Deficiency Payment (“Deemed Volume”); provided, that no Unprocessed
Volume of a Product shall be Deemed Volume for such Product to the extent that
the Unprocessed Volume of such Product is more than twenty percent (20%) greater
than the monthly average anticipated order volume of such Product as set forth
in the applicable forecast.

E. Payment Terms. Supplier will issue invoices to Buyer for all Products
purchased hereunder, and Buyer shall pay all invoices received from Supplier
pursuant to this Agreement in full within 30 days from the date of invoice.
Buyer shall not take any deductions or set-offs from invoices unless
specifically authorized to do so in writing by Supplier.

F. Non-Payment. In addition to any other rights and remedies Supplier may have
with respect to Buyer’s failure to fully and timely pay any amounts due
hereunder, any amounts not paid when due shall be subject to an interest charge
of one and one-half percent (1  1/2%) per month computed from the applicable due
date or the maximum rate legally permitted, whichever is less.

G. Limited Audit Rights. Once per twelve (12) month period Buyer may engage a
third party independent accounting firm of national recognition mutually
acceptable to, and agreed to in writing between, Buyer and Supplier (such firm,
the “Auditor”) to audit, for the immediately prior year only, (i) MIP cost,
(ii) resupply freight cost and (ii) volumes related to any Volume Related
Deficiency Payments hereunder. The Auditor shall be expressly restricted from
directly or indirectly disclosing any underlying MIP cost information to Buyer.
Supplier shall give the Auditor reasonable access to relevant business records
related to this Agreement, and the Auditor shall not unreasonably disrupt the
business of Supplier. Buyer shall pay all fees and costs of the Auditor.

6. Product Revisions. Any Product Revision (as defined below) shall be subject
to mutual written agreement of the parties. Prior to any implementation of a
Product Revision, the parties shall mutually agree in writing on the details
thereof, including but not limited to any appropriate price adjustments to
reflect changes in costs due to such Product Revision. Once a Product Revision
has been so mutually agreed upon in writing, Supplier will use commercially
reasonable efforts to manufacture and package Products in conformance with such
Product Revision within a reasonable period of time. A “Product Revision” shall
mean any change to the Specifications and/or of a Product’s formulation, pack
size or configuration or package construction or design. Buyer will pay for any
obsolete packaging or ingredients resulting from a Product Revision or any
changes to the label or artwork used on a Product; provided, that in no event
shall Buyer be required to pay for more than a ninety (90) day supply of such
packaging or ingredients. Notwithstanding anything to the contrary in this
Agreement, Buyer shall have the right to change any Labeling Elements (as
defined below) or Product packaging, construction or design from time to time in
its sole and absolute discretion, provided that Buyer agrees to be solely
responsible for the incremental costs of effecting any such changes.

7. Labeling Elements; License.

A. Buyer’s Responsibilities, Representations and Warranties. Notwithstanding any
other provision set forth in this Agreement, it is specifically understood and
agreed that all labels utilized in connection with the Products, including but
not limited to the design, content, wording, artwork, label features and Marks
(as defined below) (as such may be changed from time to time, “Labeling
Elements”) shall be determined by Buyer, and Buyer shall be solely responsible
therefor, including but not limited to their compliance with all applicable
federal, state and local laws, rules and regulations. Buyer represents and
warrants to Supplier that, at all times during the Term (i) all Labeling
Elements do

 

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and will comply with all applicable federal, state and local laws, rules and
regulations, and (ii) Buyer is and will be the exclusive owner of, or will have
the enforceable license or right to use, any and all designs, logos, trademarks
(registered or unregistered), service marks, trade names and trade dress
(collectively, the “Marks”) included within the Labeling Elements. Buyer further
represents and warrants to Supplier that, at all times during the Term, Buyer
has and shall have all requisite right, power and authority to grant the license
described in Paragraph C of this Section 7, and such license, and Supplier’s use
of the Labeling Elements pursuant hereto, shall not violate or infringe upon any
copyright, proprietary right or other right of any third party.

B. Artwork. Buyer shall provide Supplier, at Buyer’s expense, with all drawings
and other artwork necessary for manufacturing and packaging the Products in
accordance with all mutually agreed upon Specifications, all of which will be
the sole property of Buyer and will be returned to Buyer by Supplier upon the
expiration or termination of this Agreement.

C. License. During the Term, Buyer grants to Supplier a non-exclusive,
royalty-free license to use all applicable Labeling Elements (including the
Marks contained therein), patents, Specifications and formulas in connection
with manufacturing, packaging and selling Products to Buyer in accordance with
the terms of this Agreement.

8. Additional Representations and Warranties.

A. Supplier’s Representations and Warranties. Supplier represents and warrants
to Buyer that (i) all Products provided to Buyer pursuant to this Agreement
shall be produced and packaged in accordance with, and are not adulterated or
misbranded within the meaning of, the Federal Food, Drug, and Cosmetic Act, as
amended (the “FD&C Act”) and all other applicable federal, state and local laws,
rules and regulations, (ii) no Products provided to Buyer pursuant to this
Agreement shall be an article which may not, under the applicable provisions of
the FD&C Act, be introduced into interstate commerce, (iii) all packaging
material utilized in connection with the Products provided to Buyer pursuant to
this Agreement shall be free of any poisonous or deleterious substance which may
make the Products enclosed therein fail to conform to clause (i) or (ii) of this
paragraph, and (iv) Supplier shall conduct tests reasonably necessary to ensure
that the Products provided to Buyer pursuant to this Agreement are safe for
human consumption and conform to the requirements of this Agreement when
delivered to Buyer. Notwithstanding the foregoing, it is specifically understood
and agreed that each of Supplier’s representations and warranties set forth
above shall exclude any and all Product conditions, qualities and/or
characteristics to the extent arising out of or relating to any breach of
Buyer’s representations or warranties set forth in this Agreement. EXCEPT AS
OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, NEITHER SUPPLIER NOR ANY OF
ITS DIRECT OR INDIRECT SUBSIDIARIES OR AFFILIATES MAKES ANY, AND HEREBY
DISCLAIMS ALL, OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, THE IMPLIED WARRANTY OF FITNESS FOR ANY PURPOSE.

B. Buyer’s Representations and Warranties. Buyer represents and warrants to
Supplier that compliance with the Specifications and Buyer’s formulas and use of
any raw materials or other ingredients provided by Buyer will not cause any
Product provided to Buyer pursuant to this Agreement (i) to be produced or
packaged to be in violation of the FD&C Act or any applicable federal, state and
local laws rules and regulations or (ii) be an article which may not, under the
applicable provisions of the FD&C Act, be introduced into interstate commerce.

 

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C. Additional Representations and Warranties. Each party represents and warrants
to the other party as follows: (i) that it has full power, authority and
capacity to enter into this Agreement and to perform all its obligations
hereunder, and (ii) that it is not bound by any other agreement, arrangement,
judgment or order which would be violated as a result of its entering into this
Agreement or performing any of its obligations hereunder.

9. Indemnities.

A. Supplier Indemnity. Supplier shall indemnify, defend and hold harmless Buyer
and its parent companies and each of their subsidiaries and affiliates, and each
of their respective officers, directors, employees, agents, representatives and
shareholders, predecessors and successors, from and against any and all claims,
demands, causes of action, damages, losses, liabilities, judgments, costs, fees
and expenses (including, without limitation, reasonable costs and expenses of
investigation and settlement and reasonable attorneys’ fees and expenses)
(collectively, “Losses”), to the extent arising out of or relating to any breach
by Supplier of its representations, warranties, covenants or obligations set
forth in this Agreement. Such indemnification obligations shall survive the
expiration or termination of this Agreement for any reason.

B. Buyer Indemnity. Buyer shall indemnify, defend and hold harmless Supplier and
its parent companies and each of their subsidiaries and affiliates, and each of
their respective officers, directors, employees, agents, representatives and
shareholders, predecessors and successors, from and against any and all Losses,
to the extent arising out of or relating to (i) any breach by Buyer of its
representations, warranties, covenants or obligations set forth in this
Agreement, (ii) the condition of any ingredients or materials provided by Buyer
which existed at the time of delivery to Supplier, (iii) the handling of
Products after title to such Products has passed to Buyer pursuant to the terms
of this Agreement, (iv) the distribution, sale, advertisement, storage or
transportation of Products after the time that title to such Products has passed
to Buyer and/or (v) any Labeling Elements (including but not limited to any
claims of infringement relating thereto). Such indemnification obligations shall
survive the expiration or termination of this Agreement for any reason.

10. Force Majeure. In the event a party is prevented from performing any of its
obligations under this Agreement by circumstances beyond its reasonable control
occurring after the date hereof, including without limitation, fire, explosion,
flood, drought, blackout, closure of borders, riots, sabotage, embargo,
terrorism, war or other hostilities, domestic or foreign governmental acts or
changes in law, accident, equipment failure, inability in obtaining facilities
or supplies, or labor dispute including a strike or lockout (each a “Force
Majeure Event”), such party’s obligations shall be temporarily suspended,
without liability to the other party, to the extent of such inability to
perform; provided, however that a party shall not be relieved of its obligation
to make payments as and when due. A party affected by a Force Majeure Event
shall give written notice to the other party of the occurrence of such Force
Majeure Event as soon as commercially practicable.

11. Confidentiality. During the course of their business relationship, each
party may disclose to the other party certain information which the disclosing
party considers proprietary and confidential, including but not limited to the
terms of this Agreement as well as information concerning manufacturing and
processing methods, business and technology plans, distribution strategies,
sales, costs, pricing, marketing, customers, suppliers and research and
development (collectively, “Confidential Information”). For purposes hereof,
information that is already in the public domain or known by the receiving party
at the time of disclosure by the disclosing party, or subsequently becomes
available to the public or known by the receiving party without any breach of
this Section, shall not be considered to be

 

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Confidential Information. The parties each agree that all Confidential
Information shall be used by the receiving party solely for the purposes
contemplated by this Agreement, shall be kept strictly confidential and shall
not, without the disclosing party’s prior written consent, be disclosed by the
receiving party in any manner whatsoever, except as required to comply with
applicable laws or regulations, or with a court or administrative order,
subpoena, civil investigative demand or other legal process. The receiving party
shall be liable for any failure of its employees, agents or representatives to
comply with the confidentiality obligations set forth in this Section. The
confidentiality obligations set forth in this Section shall expire two (2) years
following the expiration or termination of this Agreement. Supplier expressly
agrees that it shall not, and shall cause its affiliates, officers, directors,
employees, agents and representatives not to, make any attempt to reverse
engineer any formula or product base of Buyer.

12. Termination Rights.

A. Termination Due To Breach. Without prejudice and in addition to all other
lawful rights and remedies, each party shall have the right to terminate this
Agreement upon written notice to the other party if such other party materially
breaches any of its representations, warranties, covenants or obligations set
forth in this Agreement, and such failure has not been cured within 30 days of
receiving written notice from the non-defaulting party reasonably describing
such breach.

B. Termination Due To Financial Condition. Without prejudice and in addition to
all other lawful rights and remedies, each party shall have the right to
terminate this Agreement upon written notice to the other party in any of the
following events, each of which constitutes good cause for termination (i) such
other party files a petition for bankruptcy or is otherwise adjudicated
bankrupt, (ii) a petition for bankruptcy is filed against such other party and
such petition is not dismissed within 90 days, and/or (iii) such other party
becomes insolvent, discontinues its business or voluntarily submits to, or is
ordered by any federal bankruptcy court to undergo, liquidation pursuant to any
applicable bankruptcy laws.

C. Termination By Mutual Written Consent. Without prejudice and in addition to
all other lawful rights and remedies, the parties hereto may terminate this
Agreement at any time for any reason by mutual written consent.

13. Independent Contractors. Each party hereby acknowledges and agrees that
(a) it is an independent contractor and not an employee, agent or representative
of the other party, and (b) it is not authorized to assume or create any
obligation or responsibility on behalf of the other party, including but not
limited to obligations based on representations, warranties or guarantees.
Neither party, nor any of its employees, agents or representatives, shall
misrepresent such status or authority.

14. Assignment. This Agreement shall not be assigned, in whole or in part, by
either party without the written consent of the other party; provided, however,
that such consent shall not be unreasonably withheld. For purposes of example
only and not of limitation, it is agreed that Supplier’s consent shall be deemed
to be reasonably withheld in the event that the proposed assignee, in Supplier’s
reasonable opinion, competes with or may compete with Supplier or any direct or
indirect subsidiary or affiliate of Supplier. Notwithstanding the foregoing,
this Agreement may be assigned (i) by Supplier without limitation or consent to
any direct or indirect subsidiary or affiliate of Supplier or to a successor to
the business serviced by this Agreement; provided, that Supplier or its assignee
continues to supply the Products under this Agreement; or (ii) by Buyer without
limitation or consent to any direct or indirect subsidiary or affiliate of
Buyer. This Agreement shall be binding upon and inure to the benefit of the
parties hereto, their successors, legal representatives and permitted assigns.
Without limiting the

 

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provisions set forth above, if Buyer sells or otherwise transfers to a third
party all or any portion of the business serviced by this Agreement, then at
Supplier’s option, Buyer shall require the purchaser or transferee to assume the
obligations of Buyer under this Agreement with respect to the applicable
business.

15. Insurance. During the Term, each of Buyer and Supplier shall maintain at all
times at their sole cost and expense the insurance coverages set forth on
Exhibit C. All such insurance shall be issued by one or more insurance carriers
licensed or approved to do business in the state where services are rendered or
Products are delivered.

16. Notices. All notices required by this Agreement shall be in writing and
shall be deemed served as of the date received, and shall be personally
delivered or sent either by registered or certified mail, return receipt
requested, or by nationally recognized overnight courier, addressed to the
parties at the following addresses:

If to Buyer:

WWF Operating Company

2711 North Haskell Avenue, Suite 3400

Dallas, TX 75204

Attention: General Counsel

If to Supplier:

Morningstar Foods, LLC

2711 North Haskell Avenue, Suite 3400

Dallas, TX 75204

Attention: General Counsel

Either party hereto may from time to time change its address for notification
purposes by giving the other party prior written notice of the new address and
the date upon which it will become effective.

17. Miscellaneous.

A. Applicable Laws. This Agreement, and all controversies, claims and disputes
arising out of or relating to this Agreement or either party’s performance under
this Agreement, including claims for breach of contract and related causes of
action, shall be governed by the laws of the State of Delaware, without
reference to its choice of law principles.

B. No Waiver; Remedies Cumulative. No delay or omission by either party in
exercising any right or power hereunder will impair such right or power or be
construed to be a waiver thereof. A waiver by either party of any provision
hereof or of any breach hereunder must be in a writing signed by the waiving
party and will not be construed to be a waiver of any prior or subsequent breach
of such provision or of any other provisions herein contained. Except as
otherwise provided in this Agreement, all remedies provided for in this
Agreement will be cumulative and in addition to and not in lieu of any other
remedies available to either party at law, in equity or otherwise.

C. No Consequential Damages. Notwithstanding any other provision set forth in
this Agreement, in no event (including, without limitation, any termination of
this Agreement with or

 

9

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

without cause) will either party be liable to the other party for any indirect,
special or consequential damages whatsoever, (including, without limitation,
lost profits) arising out of or relating to this Agreement or either party’s
performance under this Agreement.

D. Entire Agreement. This Agreement, including the Exhibits hereto, constitutes
the final agreement between the parties relating to the matters contained in
this Agreement and is the complete and exclusive expression of the parties’
agreement on such matters. All prior and contemporaneous negotiations and
agreements between the parties on matters contained in this Agreement, whether
oral or written, are expressly merged into and superseded by this Agreement. The
provisions of this Agreement may not be explained, supplemented or qualified
through evidence of trade usage or prior course of dealings except to the
extent, and solely to the extent, the Agreement expressly requires the parties
to act and/or provide products or services in a manner consistent with the past
practices of the parties. In entering into this Agreement, neither party has
relied upon any statement, representation, warranty or agreement of the other
party except for those expressly contained in this Agreement.

E. Amendments. Except for any automatic amendments to Exhibit A as described
herein, this Agreement may not be amended, supplemented or modified in any
respect without further written agreement of both parties referencing this
Agreement, signed by their respective authorized representatives. If any
operating standards, procedures or manuals or any other documents of either
party (or if form language in either party’s forms such as purchase orders,
bills of lading and the like), regardless of whether signed by a representative
of the other party, contain any provisions that purport to impose obligations on
the other party not imposed by this Agreement, such provisions shall be null and
void and have no force or effect.

F. Severability. In case any one or more of the provisions of this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, any other provision in this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.
Such invalid, illegal or unenforceable provisions shall be given effect to the
maximum extent permitted by law.

G. Counterparts; Signatures. This Agreement may be executed in one or more
counterparts for the convenience of the parties hereto, all of which together
will constitute one and the same instrument. A signature transmitted by
facsimile or other electronic means shall have the same force and effect as an
original signature.

H. Headings; Construction. The headings contained herein are for convenience of
reference only and shall not be deemed to limit or affect the subject matter
contained herein. The parties have jointly prepared this Agreement and the terms
hereof shall not be construed in favor or against any party on account of its
participation in such preparation. As used in this Agreement, the singular form
shall include the plural, and vice versa, when the context so requires.

I. Compliance With Laws. Each party shall comply with all federal, state and
local laws, rules and regulations that apply to its performance hereunder and/or
to its handling, distribution, sale or resale of the Products purchased
hereunder, including without limitation, possessing and maintaining all
necessary permits and licenses.

J. Attorneys’ Fees. In the event of any controversy, claim or dispute between
the parties hereto arising out of or relating to this Agreement or either
party’s performance under this

 

10

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

Agreement, the prevailing party shall be entitled to recover from the losing
party reasonable attorneys’ and experts’ fees and expenses and other costs
reasonably incurred by the prevailing party in enforcing its rights under this
Agreement.

K. No Release; Survival of Obligations. No expiration or termination of this
Agreement shall release either party from any obligation accrued prior to the
date of such expiration or termination or from any obligations surviving the
expiration or termination of this Agreement. Without limiting the generality of
the foregoing, it is specifically acknowledged and agreed that the provisions
contained in each of the following Sections shall survive the expiration or
termination of this Agreement: Section 7, Labeling Elements; Section 8,
Representations and Warranties; Section 9, Indemnities; Section 11,
Confidentiality (but only for a period of 2 years as described in such Section);
and Section 17, Miscellaneous.

L. WAIVER OF JURY TRIAL. EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR EITHER PARTY’S PERFORMANCE UNDER THIS AGREEMENT. THIS
WAIVER APPLIES TO ANY LITIGATION, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE. EACH PARTY ACKNOWLEDGES THAT IT HAS RECEIVED ADVICE OF COMPETENT
COUNSEL WITH RESPECT TO THE WAIVER CONTAINED IN THIS SECTION.

 

11

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

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their proper and duly authorized representatives as of the date first set forth
above.

 

“SUPPLIER”     “BUYER” MORNINGSTAR FOODS, LLC     WWF OPERATING COMPANY By:  
/s/ Stephanie Schultz     By:   /s/ Theodoredis Name:   Stephanie Schultz    
Name:   Theodoredis Title:   Authorized Signator     Title:   EVP

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

EXHIBIT A

PRODUCTS AND PRICING

The following schedules to this Exhibit A contain information regarding the
Products to be manufactured by Supplier hereunder, including (i) applicable
volume requirements with respect to such Products, (ii) the Initial Term and
information with respect to any renewal term for such Products, (iii) the
applicable Deficiency Tolling Fee for such Product category for purposes of
calculating any Volume Related Deficiency Payment, (iv) the Original Facility
for each Product and (v) pricing for such Products.

Generally, except with respect to the transitional products set forth in
Schedule 7 to this Exhibit A, Supplier will sell finished products to Buyer at a
price equal to MIP plus the applicable Tolling Fee.

The MIP cost basis shall be the monthly standard cost employed by Supplier,
including shrink factor. The shrink factor shall be consistent with that
utilized in the standard cost methodology, subject to any modification as
mutually agreed in writing between the parties. Dairy related MIP costs shall be
adjusted monthly based on the relevant movers and shall include all applicable
marketing fees, over order premiums and all other components/fees/charges of raw
milk costs. Non-dairy related MIP costs shall be adjusted monthly based on any
announced pricing changes of Supplier’s vendors. Monthly price change notices
(both dairy related MIP and non-dairy related MIP) shall be provided in advance,
based on normal intercompany existing price change practices within Supplier
(normally around the 25th of the preceding month). The MIP cost information set
forth in the schedules below shall be updated by the parties prior to the
Effective Date to reflect updates to such MIP costs between the date hereof and
the Effective Date. Pricing for Class II Products shall be announced prices with
a monthly true-up to the applicable movers. The true-up shall be settled
quarterly.

The Tolling Fee for each Product shall equal the Margin applicable to such
Product plus the Conversion Costs applicable to such Product. Conversion Costs
shall include all direct and indirect labor and overhead associated with the
conversion of raw materials into a finished Product (“Conversion Costs”). Margin
will be calculated on a dollars per case basis. Margin will not be adjusted over
the term of the Agreement.

Conversion Costs shall be initially set at execution of the Agreement based on
standard Conversion Costs in effect at such time (set by plant, by Product).
Annual changes (effective January 1 of each year) in the Conversion Costs shall
be tied to increases/decreases in the Producer Price Index for “Finished Goods,
Excluding Foods” (found in “Table: Producer price indexes and percent changes by
stage of processing” within the monthly PPI Detailed Report published by the
Bureau of Labor Statistics & located on the BLS website at
http://www.bls.gov/ppi/ppi_dr.htm). The rate used to compute the change will be
the unadjusted year-over-year percent change between September of the then
current year with September of the prior year. This September year-over-year
change can be found in the report published in the month of October for the
preceding September. A sample of the May 2012 table from this report is located
below to serve as a point of reference, including the index and rate to be used
in the computation. If the change in the “Finished Goods, Excluding Foods” index
for a given year exceeds 2.5% (increases or decreases), then the Conversion Cost
increase or decrease for that year will be capped at 2.5%.

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

Table 1. Producer price indexes and percent changes by stage of processing

  [1982=100]

 

      Relative
Importance
Dec. 20111     Unadjusted index      Unadjusted percent
change to  May 2012
from:      Seasonally adjusted percent change
from:  

Grouping

     Jan.
20122      Apr.
20122      May
20122      May
2011      Apr.
2012      Feb. to
Mar.      Mar. to
Apr.      Apr. to
May  

Finished goods

     100.000        192.0         195.0         193.9         0.7         –0.6
        0.0         –0.2         –1.0   

Finished consumer goods

     73.330        204.5         208.7         207.0         0.3         –0.8   
     –0.1         –0.3         –1.5   

Finished consumer foods

     18.778        197.0         197.8         197.3         3.3         –0.3   
     0.2         0.2         –0.6   

Crude

     1.402        166.1         165.9         158.4         –1.0         –4.5   
     5.8         2.3         –2.8   

Processed

     17.376        199.9         200.9         200.9         3.4         0.0   
     –0.2         0.1         –0.4   

Finished consumer goods, excluding foods

     54.552        206.0         211.4         209.3         –0.6         –1.0
        –0.2         –0.5         –1.7   

Nondurable goods less foods

     40.917        230.8         238.8         235.8         –1.5         –1.3
        –0.5         –0.7         –2.3   

Durable goods

     13.635        150.2         150.4         150.0         2.3         –0.3   
     0.5         0.1         0.0   

Capital equipment

     26.670        162.1         162.4         162.5         2.1         0.1   
     0.2         0.2         0.1   

Manufacturing industries

     6.091        164.2         164.9         165.2         1.8         0.2   
     0.2         0.0         0.2   

Nonmanufacturing industries

     20.579        161.2         161.4         161.4         2.2         0.0   
     0.2         0.2         0.1   

Intermediate materials, supplies, and components

     100.000        198.8         203.2         201.9         –0.6         –0.6
        0.7         –0.5         –0.8   

Materials and components for manufacturing

     44.573        188.6         193.0         191.9         –0.4         –0.6
        1.0         0.1         –0.6   

Materials for food manufacturing

     3.264        195.4         196.2         195.3         1.2         –0.5   
     –0.3         –0.4         –1.0   

Materials for nondurable manufacturing

     16.019        244.5         257.1         254.3         –1.2         –1.1
        2.7         0.3         –1.0   

Materials for durable manufacturing

     9.345        201.2         203.6         202.3         –2.6         –0.6   
     –0.1         –0.4         –0.6   

Components for manufacturing

     15.946        147.1         147.6         147.8         1.4         0.1   
     0.1         0.1         0.1   

Materials and components for construction

     9.136        215.3         218.3         218.6         2.7         0.1   
     0.2         0.3         0.1   

Processed fuels and lubricants

     21.619        209.8         217.4         212.6         –5.2         –2.2
        0.9         –2.8         –3.2   

Manufacturing industries

     5.475        206.3         212.7         208.3         –4.6         –2.1   
     2.8         –2.5         –3.4   

Nonmanufacturing industries

     16.144        211.5         219.6         214.6         –5.5         –2.3
        0.4         –2.8         –3.2   

Containers

     2.478        205.5         206.9         207.1         0.3         0.1   
     0.0         0.0         0.0   

Supplies

     22.193        185.5         187.7         188.3         2.1         0.3   
     0.5         0.3         0.3   

Manufacturing industries

     2.833        181.5         183.8         183.9         1.5         0.1   
     0.7         0.5         0.0   

Non manufacturing industries

     19.360        184.7         186.8         187.5         2.2         0.4   
     0.4         0.3         0.3   

Feeds

     1.558        196.7         208.4         216.5         3.5         3.9   
     3.9         2.7         2.7   

Other supplies

     17.802        185.3         186.6         186.8         2.1         0.1   
     0.1         0.2         0.1   

Crude materials for further processing

     100.000        246.0         242.1         235.8         –7.7         –2.6
        –2.5         –4.4         –3.2   

Foodstuffs and feedstuffs

     35.619        188.8         190.9         190.2         –0.1         –0.4
        2.8         –3.5         –2.3   

Nonfood materials

     64.381        277.6         268.8         258.4         –12.0         –3.9
        –5.4         –4.9         –3.7   

Nonfood materials except fuel3

     49.948        349.1         351.8         336.3         –4.5         –4.4
        –5.3         –4.8         –4.4   

Manufacturing3

     48.090        331.5         333.8         318.6         –4.8         –4.6
        –5.5         –5.0         –4.5   

Construction

     1.858        209.3         213.7         213.1         3.3         –0.3   
     0.4         0.9         –0.3   

Crude fuel4

     14.433        154.4         126.9         125.4         –33.9         –1.2
        –5.7         –5.2         –0.6   

Manufacturing industries

     0.546        191.5         174.4         175.4         –16.9         0.6   
     –4.1         –1.2         1.7   

Nonmanufacturing industries

     13.887        156.3         127.9         126.2         –34.5         –1.3
        –5.8         –5.4         –0.7   

Special groupings

                         

Finished goods, excluding foods

     81.222 5      190.0         193.5         192.2         0.2       – 0.7   
   – 0.1       – 0.3       – 1.1   

Intermediate materials less foods and feeds

     92.396 6      199.1         203.7         202.2         –0.9         –0.7
        0.8         –0.5         –0.9   

Intermediate foods and feeds

     7.604 6      193.3         196.1         197.4         2.3         0.7   
     0.6         0.4         0.0   

Crude materials less agricultural products3 , 7

     61.245 8      278.7         268.9         258.2         –12.7         –4.0
        –5.8         –5.0         –3.7   

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

Schedule 1

([**])

 

Volume Requirements (in Gallons)

Volume min:

  [**]

Volume max:

  [**]

Other terms

       

Term length:

  Five (5) years

Renewal:

  At expiration of the initial five-year term (and at expiration of each
one-year automatic renewal term as contemplated herein), such term shall
automatically renew for an additional one-year period unless Buyer provides six
month’s advance written notice of its desire that such automatic renewal not
occur.

Deficiency Tolling Fee:

  $[**] / case (calculated from Sulphur Springs items only)

Facilities (2):

  Sulphur Springs, Frederick

Capacity restrictions:

  •   

[**]

[**]

 

Items (based on TTM April 2012 data)

               Plant    Brand    MS Item #    MS Item Description   
    [**]              [**]            [**]            [**]    [**]    [**]   
[**]      [**]       [**]    [**]          [**]    [**]      [**]       [**]   
[**]          [**]    [**]      [**]       [**]    [**]          [**]    [**]   
  [**]       [**]    [**]      [**]          [**]    [**]      [**]       [**]
   [**]      [**]          [**]    [**]      [**]       [**]    [**]         
[**]    [**]      [**]       [**]    [**]          [**]    [**]      [**]      
[**]    [**]          [**]    [**]      [**]       [**]    [**]          [**]   
[**]      [**]       [**]    [**]   

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

      [**]    [**]      [**]       [**]    [**]          [**]    [**]      [**]
      [**]    [**]          [**]    [**]      [**]       [**]    [**]         
[**]    [**]      [**]       [**]    [**]          [**]    [**]      [**]      
[**]    [**]          [**]    [**]      [**]       [**]    [**]          [**]   
[**]      [**]       [**]    [**]          [**]    [**]      [**]       [**]   
[**]          [**]    [**]      [**]       [**]    [**]          [**]    [**]   
  [**]       [**]    [**]          [**]    [**]      [**]       [**]    [**]   
      [**]    [**]      [**]       [**]    [**]          [**]    [**]      [**]
      [**]    [**]          [**]    [**]      [**]       [**]    [**]       [**]
   [**]    [**]      [**]       [**]    [**]    [**] [**]    [**]    [**]   
[**]      [**]       [**]    [**]    [**]       [**]    [**]      [**]      
[**]    [**]    [**]

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

Schedule 2

([**])

 

Volume Requirements (in Gallons)

     

Volume min

  

Volume max

  

Year 1 (2013)

   [**]    [**]   

Year 2 (2014)

   [**]    [**]   

Year 3 (2015)

   [**]    [**]   

Year 4 (2016)

   [**]    [**]   

Year 5 (2017)

   [**]    [**]   

Other terms

        

Term length:

   Five (5) years

Renewal:

   One (1) year term, unless either party gives six (6) months prior notice

Deficiency Tolling Fee:

   $[**]/case

Facilities (2):

   Sulphur Springs, Murray

 

Items (based on TTM April 2012 data + [**] full year estimate)

        

Plant

   Product    Brand    MS Item #    MS Item Description        [**]       
    [**]            [**]       

[**]

   [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]          [**]   
[**]    [**]    [**]    [**]    [**]          [**]    [**]    [**]    [**]   
[**]    [**]       [**]    [**]    [**]    [**]    [**]    [**]    [**]         
[**]    [**]    [**]    [**]    [**]    [**]          [**]    [**]    [**]   
[**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]    [**]

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

      [**]    [**]    [**]    [**]    [**]    [**]    [**]          [**]    [**]
   [**]    [**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]   
[**]          [**]    [**]    [**]    [**]    [**]             [**]    [**]   
[**]    [**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]      
      [**]    [**]    [**]    [**]    [**]          [**]    [**]    [**]    [**]
   [**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]    [**]   
      [**]    [**]    [**]    [**]    [**]    [**]          [**]    [**]    [**]
   [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]
   [**]          [**]    [**]    [**]    [**]    [**]          [**]    [**]   
[**]    [**]    [**]    [**]       [**]    [**]    [**]    [**]    [**]    [**]
   [**]             [**]    [**]    [**]    [**]    [**]             [**]   
[**]    [**]    [**]    [**]   

[**]

   [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]          [**]   
[**]    [**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]   
[**]             [**]    [**]    [**]    [**]    [**]   

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

Schedule 3

([**].)

 

Volume Requirements (in Gallons)

Volume min:

   [**]

Volume max:

   [**] Other terms   

Term length:

   Three (3) years

Renewal:

   One (1) year term, unless either party gives six (6) months prior notice

Deficiency Tolling Fee:    

   $[**]/case

Facilities (5):

   Sulphur Springs, White Bear Lake, Murray, Gustine, Fraser Items (based on
2011 data)

 

Plant            

   Size                    MS Item #                MS Item Description   
    [**]            [**]            [**]       

[**]

   Pint   

[**]

  

[**]

   [**]    [**]    [**]         

[**]

  

[**]

   [**]    [**]    [**]      [**]         

[**]

  

[**]

   [**]    [**]    [**]      [**]       Quart   

[**]

  

[**]

   [**]    [**]    [**]      [**]         

[**]

  

[**]

   [**]    [**]    [**]   

[**]

   Pint   

[**]

  

[**]

   [**]    [**]    [**]         

[**]

  

[**]

   [**]    [**]    [**]      [**]         

[**]

  

[**]

   [**]    [**]    [**]      [**]       Quart   

[**]

  

[**]

   [**]    [**]    [**]      [**]   

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

     

[**]

  

[**]

   [**]    [**]    [**]    [**]      

[**]

  

[**]

   [**]    [**]    [**]       Half Pint   

[**]

  

[**]

   [**]    [**]    [**]    [**]      

[**]

  

[**]

   [**]    [**]    [**]    [**] [**]    Pint   

[**]

  

[**]

   [**]    [**]    [**]    [**]    Quart   

[**]

  

[**]

   [**]    [**]    [**]    [**]    Half Pint   

[**]

  

[**]

   [**]    [**]    [**]    [**] [**]    Pint   

[**]

  

[**]

   [**]    [**]    [**]       Half Pint   

[**]

  

[**]

   [**]    [**]    [**]    [**]

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

Schedule 4

([**])

 

Volume Requirements (in Gallons)

Volume min:

   [**]

Volume max:

   [**] Other terms   

Term length:

   Three (3) years

Renewal:

   One (1) year term, unless either party gives six (6) months prior notice

Deficiency Tolling Fee:    

   $[**]/case

Facilities (2):

   Sulphur Springs, White Bear Lake Items (based on TTM April 2012 data)

 

Plant                Size                MS Item #    MS Item Description   
    [**]            [**]            [**]        [**]    [**]    [**]    [**]   
[**]    [**]    [**]          [**]    [**]    [**]    [**]    [**]          [**]
   [**]    [**]    [**]    [**]    [**]       [**]    [**]    [**]    [**]   
[**]    [**] [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]

[**].

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

Schedule 5

([**])

 

Volume Requirements (in Gallons)

Volume min:

   [**]

Volume max:

   [**] Other terms   

Term length:

   Three (3) years

Renewal:

   One (1) year term, unless either party gives six (6) months prior notice

Deficiency Tolling Fee:

   $[**]/case

Facilities (2):

   Sulphur Springs, White Bear Lake Items (based on TTM April 2012 data)

 

Plant            Size            MS Item #            MS Item Description     
    [**]                 [**]                 [**]           [**]    [**]   
[**]    [**]      [**]         [**]         [**]       [**]       [**]    [**]
     [**]         [**]         [**]       [**]    [**]    [**]    [**]      [**]
        [**]         [**]       [**]

[**].

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

Schedule 6

([**])

 

Volume Requirements (in pounds)

Volume min:

   [**]

Volume max:

   [**] Other terms   

Term length:

   Three (3) years

Renewal:

   One (1) year term, unless either party gives six (6) months prior notice

Deficiency Tolling Fee:    

   n/a

Facilities (1):

   Tulare Items (based on TTM April 2012 data)

 

Plant            Product            Size            MS Item #       
MS Item Description        [**]            [**]            [**]        [**]   
[**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]    [**]       [**]
   [**]    [**]    [**]    [**]             [**]    [**]    [**]    [**]    [**]
  

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

Schedule 7

([**]”)

 

Volume Requirements (in gallons)

Volume min:

   [**]

Volume max:

   [**] Other terms   

Term length:

   90 days, or until LOL Aerosol & LOL Dairy Ease businesses are fully
transitioned to Morningstar (as described in the “Transitional Sales Service
Agreement” between Buyer & Supplier)

Renewal:

   n/a

Deficiency Tolling Fee:    

   n/a

Facilities (4):

   Fraser, NY; Gustine, CA; Murray, KY; Sulphur Springs, TX

 

Items (based on TTM April 2012 data)

 

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Note: [**].

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EXHIBIT B

FORM OF MONTHLY PRICE CHANGE NOTIFICATION

To come.

EXHIBIT C

INSURANCE REQUIREMENTS

Buyer and Supplier must maintain the following policies of insurance at their
own expense:

Commercial General Liability Insurance, on an occurrence basis, including a duty
to defend, which must provide coverage for bodily injury and property damage
with the following minimum limits of insurance:

 

•     $1,000,000

   Each Occurrence Limit

•     $1,000,000

   Personal and Advertising Injury Limit

•     $1,000,000

   Products and Completed Operations Liability

•     $2,000,000

   Aggregate Limit

The policy must contain a contractual liability coverage extension, either
within the policy form or by endorsement. The policy must contain a Vendors
Endorsement (CG2015) naming the other party, as applicable, and their respective
parent, subsidiaries and affiliated entities, and its and their officers,
directors and employees as additional insureds.

Workers’ Compensation Insurance covering all statutory benefits in the states of
operation and Employers’ Liability, with limits of at least $1 million per
accident or disease.

Business Auto Liability Insurance, with minimum combined single limits of $1
million per accident for bodily injury and property damage. The policy must
include a duty to defend and cover all owned, non-owned, and leased or hired
vehicles.

Commercial Umbrella/Follow Form Excess Insurance, with minimum limits of $4
million per occurrence and in the aggregate, in excess of the underlying policy
limits. The policy must provide coverage at least as broad as the underlying
policies and provide coverage excess of the required general liability,
employer’s liability, and automobile liability coverages.

Product Recall Insurance, with minimum limits of $5 million per occurrence. The
policy must provide coverage for expenses associated with recalling products
affected by Supplier. The policy must include coverage for accidental
contamination, malicious contamination, product rehabilitation and loss of gross
profits.

The following additional requirements shall apply:

 

  •  

Insurance must be placed with insurance companies rated at least A, X (10) by
the A.M. Best.

 

  •  

All liability policies must be endorsed to name the other party and their
respective parent, subsidiaries and affiliated entities, and its officers,
directors and employees as additional insured utilizing ISO forms.

 

  •  

The automobile liability, general liability and workers’ compensation policy, if
permitted by law, must have a waiver of subrogation in favor of the other party
and their respective parent, subsidiaries and affiliated entities, and its
officers, directors and employees.

 

  •  

All insurance policies must apply as primary and non-contributory with respects
to operations of Buyer. Supplier will bear any losses within insurance
deductibles or self-insured retention amounts.

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  •  

All insurance policies must be written on a per occurrence basis except for
Product Recall Insurance which is written on a limit of liability basis.

 

  •  

All insurance policies must be endorsed to provide the other party with 30-days
advance written notice of cancellation or material change in coverage.

Evidence of Insurance:

 

  •  

Prior to the Effective Date, each party hereto shall deliver to other a
certificate, executed by a duly authorized representative of each insurer,
showing compliance with the insurance requirements set forth above.

 

  •  

Policy renewal dates must be noted, and new certificates must be provided,
meeting the requirements noted above, throughout the entire Term.

 

  •  

Failure of any party to demand such certificate or other evidence of full
compliance with these insurance requirements or failure of any party to identify
a deficiency from evidence that is provided shall not be construed as a waiver
of the other party’s obligation to maintain such insurance.

 

  •  

Certificates with disclaimers must have Additional Insured endorsement(s)
attached.

The insurance requirements set forth herein are minimum coverage requirements
and are not to be construed in any way as a limitation on a party’s liability
under this Agreement.

Failure to maintain the required insurance may result in termination of this
Agreement in accordance with its terms.