Exhibit 10.64


 


	
  For
  Immediate Release

  	
   

  	
  Contact: Dennis J. Simonis

  	
   

  
	
   

  	
   

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July 14,
  2008

  	
   

  	
  Telephone: (808) 969-8052

  	
   

  



 


ML MACADAMIA ORCHARDS, L.P.


SIGNS NUT PURCHASE CONTRACT ADDENDUM WITH MAUNA
LOA AND


EXECUTES NEW CREDIT AGREEMENT


 


Hilo,
Hawaii — ML Macadamia Orchards, L.P. (NYSE: NUT) announced
today that the Partnership has signed an addendum to its current nut purchase
contract with Mauna Loa Macadamia Nut Corporation (“Mauna Loa”), its primary
customer. The addendum provides that Mauna Loa will purchase between 9 million
and 12 million additional pounds of macadamia nut-in-shell (NIS) between July
21, 2008 and June 30, 2009 at a price of sixty cents ($0.60) per pound,
adjusted to 20% moisture and 30% kernel recovery.


 


The Partnership has
also signed an amended credit agreement with American Ag Credit, its primary
lender, increasing its current revolving credit facility from $4.5 million to
$6 million. The new credit agreement is for 364 days and will expire on July
10, 2009. The Partnership also has an existing Term Loan with American Ag Credit
with a balance of $800,000 outstanding as of June 30, 2008. Both the term loan
and the revolving credit facility are collateralized by the Partnership’s owned
real estate under the new credit agreement.


 


The additional
crop that will be purchased by Mauna Loa under the addendum includes 6 million
pounds of production currently under contract to Hamakua Macadamia Nut Company
(“Hamakua”) which Hamakua has refused to purchase. The Partnership has filed a
complaint against Hamakua and intends to seek damages for the difference
between the amounts which will be received from Mauna Loa and the amount which
would have been due under the Hamakua agreement.


 


The volume of nuts
being sold to Mauna Loa under the original agreement and the addendum will be
between 15.3 and 18.3 million pounds or between 73% and 87% of the
Partnership’s total production. The Partnership also has nut purchase
agreements with Mac Farms of Hawaii and Island Princess for its remaining
production.


 

















 


The Partnership
has filed a Form 8-K with the SEC related to these agreements and has included
the new agreements as Exhibits to the filing.


 


This press release
contains forward-looking statements regarding future events and future performance
of the Partnership that involve risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such
statements.  These include statements,
among others, regarding the Partnership’s future nut price, which are based on
certain assumptions and forecasts.  The
Partnership files documents with the Securities and Exchange Commission, such
as Form 10-K, Form 10-Q and Form 8-K reports, which contain a description of
these and other risks and uncertainties that could cause actual results to
differ from current expectations and the forward-looking statements contained
in this press release.


 


ML Macadamia
Orchards, L.P. is the world’s largest grower of macadamia nuts, owning or
leasing 4,189 acres of orchards on the island of Hawaii. Mauna Loa, a
subsidiary of Hershey Company, is the leading processor in Hawaii and the
world’s leading marketer of macadamia nuts. 


 


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