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                                                                    Exhibit 10.6

BANK OF AMERICA
================================================================================
                                                         BUSINESS LOAN AGREEMENT

This Agreement dated as of 4-20-99, ____, is between Bank of America National
Trust and Savings Association (the "Bank") and (the "Borrower").

1.      LINE OF CREDIT AMOUNT AND TERMS

1.1     LINE OF CREDIT AMOUNT.

(a)     During the availability period described below, the Bank will provide a
        line of credit to the Borrower. The amount of the line of credit (the
        "Commitment") is Three Million and 00/100 Dollars ($3,000,000.00).

(b)     This is a revolving line of credit providing for cash advances and
        letters of credit. During the availability period, the Borrower may
        repay principal amounts and reborrow them.

(c)     Each advance must be for at least One Hundred Thousand and 00/100
        Dollars ($100,000.00), or for the amount of the remaining available line
        of credit, if less.

(d)     The Borrower agrees not to permit the outstanding principal balance of
        advances under the line of credit plus the outstanding amounts of any
        letters of credit, including amounts drawn on letters of credit and not
        yet reimbursed, to exceed the Commitment.

1.2     AVAILABILITY PERIOD. The line of credit is available between the date of
        this Agreement and April 30, 2001 (the "Expiration Date") unless the
        Borrower is in default.

1.3     INTEREST RATE.

(a)     Unless the Borrower elects an optional interest rate as described below,
        the interest rate is the Bank's Reference Rate.

(b)     The Reference Rate is the rate of interest publicly announced from time
        to time by the Bank in San Francisco, California, as its Reference Rate.
        The Reference Rate is set by the Bank based on various factors,
        including the Bank's costs and desired return, general economic
        conditions and other factors, and is used as a reference point for
        pricing some loans. The Bank may price loans to its customers at, above,
        or below the Reference Rate. Any change in the Reference Rate shall take
        effect at the opening of business on the day specified in the public
        announcement of a change in the Bank's Reference Rate.

1.4     REPAYMENT TERMS.

(a)     The Borrower will pay interest on April 30, 1999, and then monthly
        thereafter until payment in full of any principal outstanding under this
        line of credit.

(b)     The Borrower will repay in full all principal and any unpaid interest or
        other charges outstanding under this line of credit no later than the
        Expiration Date. Any amount bearing interest at an optional interest
        rate (as described below) may be repaid at the end of the applicable
        interest period, which shall be no later than one hundred eighty (180)
        days after the Expiration Date.

1.5     OPTIONAL INTEREST RATES. Instead of the interest rate based on the
Bank's Reference Rate, the Borrower may elect the optional interest rates listed
below during interest periods agreed to by the Bank and the Borrower. The
optional interest rates shall be subject to the terms and conditions described
later in this Agreement. Any principal amount bearing interest at an optional
rate under this Agreement is referred to as a "Portion." The following optional
interest rates are available:

(a)     the IBOR Rate plus 0.75 percentage points.

1.6     LETTERS OF CREDIT.

(a)     This line of credit may be used for financing:

        (i)     commercial letters of credit with a maximum maturity of 180 days
                but not to extend more than 180 days beyond the Expiration Date.
                Each commercial letter of credit will require drafts payable at
                sight.



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        (ii)    standby letters of credit with a maximum maturity not to extend
                beyond the Expiration Date.

        (iii)   The amount of letters of credit outstanding at any one time
                (including amounts drawn on letters of credit and not yet
                reimbursed) may not exceed Two Hundred Thousand and 00/100
                Dollars ($200,000.00).

(b)     The Borrower agrees:

        (i)     any sum drawn under a letter of credit may, at the option of the
                Bank, be added to the principal amount outstanding under this
                Agreement. The amount will bear interest and be due as described
                elsewhere in this Agreement.

        (ii)    if there is a default under this Agreement, to immediately
                prepay and make the Bank whole for any outstanding letters of
                credit.

        (iii)   the issuance of any letter of credit and any amendment to a
                letter of credit is subject to the Bank's written approval and
                must be in form and content satisfactory to the Bank and in
                favor of a beneficiary acceptable to the Bank.

        (iv)    to sign the Bank's form Application and Agreement for Commercial
                Letter of Credit or Application and Agreement for Standby Letter
                of Credit.

        (v)     to pay any issuance and/or other fees that the Bank notifies the
                Borrower will be charged for issuing and processing letters of
                credit for the Borrower.

        (vi)    to allow the Bank to automatically charge its checking account
                for applicable fees, discounts, and other charges.

2.      OPTIONAL INTEREST RATES

2.1     OPTIONAL RATES. Each optional interest rate is a rate per year. Interest
will be paid on the last day of each interest period, and on the last day of
each month during the interest period. At the end of any interest period, the
interest rate will revert to the rate based on the Reference Rate, unless the
Borrower has designated another optional interest rate for the Portion. No
Portion will be converted to a different interest rate during the applicable
interest period. Upon the occurrence of an event of default under this
Agreement, the Bank may terminate the availability of optional interest rates
for interest periods commencing after the default occurs.

2.2     IBOR RATE. The election of IBOR Rates shall be subject to the following
terms and requirements:

(a)     The interest period during which the IBOR Rate will be in effect will be
        no shorter than 30 days and no longer than one year. The last day of the
        interest period will be determined by the Bank using the practices of
        the offshore dollar inter-bank market.

(b)     Each IBOR Rate Portion will be for an amount not less than Five Hundred
        Thousand Dollars ($500,000).

(c)     The Borrower may not elect an IBOR Rate with respect to any principal
        amount which is scheduled to be repaid before the last day of the
        applicable interest period.

(d)     The "IBOR Rate" means the interest rate determined by the following
        formula, rounded upward to the nearest 1/100 of one percent. (All
        amounts in the calculation will be determined by the Bank as of the
        first day of the interest period.)

                IBOR Rate =             IBOR Base Rate
                                ---------------------------
                                (1.00 - Reserve Percentage)

        Where.

        (i)     "IBOR Base Rate" means the interest rate at which the Bank's
                Grand Cayman Branch, Grand Cayman, British West Indies, would
                offer U.S. dollar deposits for the applicable interest period to
                other major banks in the offshore dollar inter-bank market.

        (ii)    "Reserve Percentage" means the total of the maximum reserve
                percentages for determining the reserves to be maintained by
                member banks of the Federal Reserve System for Eurocurrency
                Liabilities, as defined in Federal Reserve Board Regulation D,
                rounded upward to the nearest 1/100 of one percent. The
                percentage will be expressed as a decimal, and will include, but
                not be limited to, marginal, emergency, supplemental, special,
                and other reserve percentages.



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(e)     Each prepayment of an IBOR Rate Portion, whether voluntary, by reason of
        acceleration or otherwise, will be accompanied by the amount of accrued
        interest on the amount prepaid, and a prepayment fee as described below.
        A "prepayment" is a payment of an amount on a date earlier than the
        scheduled payment date for such amount as required by this Agreement.
        The prepayment fee shall be equal to the amount (if any) by which:

        (i)     the additional interest which would have been payable during the
                interest period on the amount prepaid had it not been prepaid,
                exceeds

        (ii)    the interest which would have been recoverable by the Bank by
                placing the amount prepaid on deposit in the domestic
                certificate of deposit market, the eurodollar deposit market, or
                other appropriate money market selected by the Bank for a period
                starting on the date on which it was prepaid and ending on the
                last day of the interest period for such Portion (or the
                scheduled payment date for the amount prepaid, if earlier).

(f)     The Bank will have no obligation to accept an election for an IBOR Rate
        Portion if any of the following described events has occurred and is
        continuing:

        (i)     Dollar deposits in the principal amount, and for periods equal
                to the interest period, of an IBOR Rate Portion are not
                available in the offshore dollar inter-bank market; or

        (ii)    the IBOR Rate does not accurately reflect the cost of an IBOR
                Rate Portion.

3.      FEES AND EXPENSES

3.1     FEES.

(a)     UNUSED COMMITMENT FEE. The Borrower agrees to pay a fee on any
        difference between the Commitment and the amount of credit it actually
        uses, determined by the weighted average credit outstanding during the
        specified period. The fee will be calculated at 0.25% per year, payable
        quarterly in arrears. This fee is due 15 days from the Bank's billing
        date.

(b)     WAIVER FEE. If the Bank, at its discretion, agrees to waive or amend any
        terms of this Agreement, the Borrower will, at the Bank's option, pay
        the Bank a fee for each waiver or amendment in an amount advised by the
        Bank at the time the Borrower requests the waiver or amendment. Nothing
        in this paragraph shall imply that the Bank is obligated to agree to any
        waiver or amendment requested by the Borrower. The Bank may impose
        additional requirements as a condition to any waiver or amendment.

3.2     REIMBURSEMENT COSTS.

(a)     The Borrower agrees to reimburse the Bank for any expenses it incurs in
        the preparation of this Agreement and any agreement or instrument
        required by this Agreement. Expenses include, but are not limited to,
        reasonable attorneys' fees, including any allocated costs of the Bank's
        in-house counsel.

4.      DISBURSEMENTS, PAYMENTS AND COSTS

4.1     TELEPHONE AND TELEFAX AUTHORIZATION.

(a)     The Bank may honor telephone or telefax instructions for advances or
        repayments or for the designation of optional interest rates and telefax
        requests for the issuance of letters of credit given by any one of the
        individuals authorized to sign loan agreements on behalf of the
        Borrower, or any other individual designated by any one of such
        authorized signers.

(b)     Advances will be deposited in and repayments will be withdrawn from the
        Borrower's account number 03724-02990, or such other of the Borrower's
        accounts with the Bank as designated in writing by the Borrower.

(c)     The Borrower indemnifies and excuses the Bank (including its officers,
        employees, and agents) from all liability, loss, and costs in connection
        with any act resulting from telephone or telefax instructions the Bank
        reasonably believes are made by any individual authorized by the
        Borrower to give such instructions. This indemnity and excuse will
        survive this Agreement's termination.

4.2     DIRECT DEBIT (PRE-BILLING). The Borrower agrees that the Bank will debit
the Borrower's deposit account number 03724-02990, or such other of the
Borrower's accounts with the Bank as designated in writing by the Borrower (the
"Designated Account") on the date each payment of principal and interest and any
fees from the Borrower becomes due (the "Due Date"). Approximately 10 days prior
to each Due Date, the Bank will mail to the Borrower a statement of the



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amounts that are expected to be due on that Due Date, based on current
information (the "Billed Amount"). The Bank will debit the Designated Account
for the Billed Amount, regardless of the actual amount due on that date (the
"Accrued Amount"). If the Billed Amount debited to the Designated Account
differs from the Accrued Amount, the discrepancy will be added or subtracted
from the amount due on the next due date. Regardless of any such discrepancy,
interest will continue to accrue based on the actual amount of principal
outstanding without compounding. The Bank will not pay the Borrower interest on
any overpayment. If there are insufficient funds in the Designated Account on
the date the Bank enters any debit authorized by this Agreement, the debit will
be reversed.

4.3     BANKING DAYS. Unless otherwise provided in this Agreement, a banking day
is a day other than a Saturday or a Sunday on which the Bank is open for
business in California. For amounts bearing interest at an offshore rate (if
any), a banking day is a day other than a Saturday or a Sunday on which the Bank
is open for business in California and dealing in offshore dollars. All payments
and disbursements which would be due on a day which is not a banking day will be
due on the next banking day. All payments received on a day which is not a
banking day will be applied to the credit on the next banking day.

4.4     ADDITIONAL COSTS. The Borrower will pay the Bank, on demand, for the
Bank's costs or losses arising from any statute or regulation, or any request or
requirement of a regulatory agency which is applicable to all national banks or
a class of all national banks. The costs and losses will be allocated to the
loan in a manner determined by the Bank, using any reasonable method. The costs
include the following:

(a)     any reserve or deposit requirements; and

(b)     any capital requirements relating to the Bank's assets and commitments
        for credit.

4.5     INTEREST CALCULATION. Except as otherwise stated in this Agreement, all
interest and fees, if any, will be computed on the basis of a 360-day year and
the actual number of days elapsed. This results in more interest or a higher fee
than if a 365-day year is used. Installments of principal which are not paid
when due under this Agreement shall continue to bear interest until paid.

4.6     DEFAULT RATE. Upon the occurrence and during the continuation of any
default under this Agreement, principal amounts outstanding under this Agreement
will at the option of the Bank bear interest at a rate which is 2 percentage
point(s) higher than the rate of interest otherwise provided under this
Agreement. This will not constitute a waiver of any default.

4.7     INTEREST COMPOUNDING. At the Bank's sole option in each instance, any
interest, fees or costs which are not paid when due under this Agreement shall
bear interest from the due date at the Bank's Reference Rate plus 2 percentage
points. This may result in compounding of interest.

5.      CONDITIONS

The Bank must receive any documents and other items it may reasonably require,
including but not limited to the following items, in form and content acceptable
to the Bank, before it is required to extend any credit to the Borrower under
this Agreement.

5.1     AUTHORIZATIONS. Evidence that the execution, delivery and performance by
the Borrower and each guarantor of this Agreement and any instrument or
agreement required under this Agreement have been duly authorized.

5.2     GOVERNING DOCUMENTS. A copy of the Borrower's articles of incorporation.

5.3     GUARANTY. A guaranty signed by Calavo Foods, Inc. in the amount of Six
Million Dollars ($6,000,000).

6.      REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full,
the Borrower makes the following representations and warranties. Each request
for an extension of credit constitutes a renewed representation:

6.1     ORGANIZATION OF BORROWER. The Borrower is a corporation duly formed and
existing under the laws of the state where organized.

6.2     AUTHORIZATION. This Agreement has been duly authorized and is
enforceable without conflict with any laws or any other obligation of the
Borrower.



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6.3     GOOD STANDING. In each state in which the Borrower does business, it is
properly licensed, in good standing, and, where required, in compliance with
fictitious name statutes.

6.4     LAWSUITS. There is no lawsuit, tax claim or other dispute pending or
threatened against the Borrower which, if lost, would impair the Borrower's
financial condition or ability to repay the loan, except as have been disclosed
in writing to the Bank.

6.5     PERMITS, FRANCHISES. The Borrower possesses all permits, memberships,
franchises, contracts and licenses required and all trademark rights, trade name
rights, patent rights and fictitious name rights necessary to enable it to
conduct the business in which it is now engaged.

6.6     LOCATION OF BORROWER. The Borrower's place of business (or, if the
Borrower has more than one place of business, its chief executive office) is
located at the address listed under the Borrower's signature on this Agreement.

6.7     YEAR 2000 COMPLIANCE. The Borrower has conducted a comprehensive review
and assessment of the Borrower's systems and equipment applications and made
inquiry of the Borrowers key suppliers, vendors and customers with respect to
the "year 2000 problem" (that is, the inability of computers, as well as
embedded microchips in non-computing devices, to properly perform date-sensitive
functions with respect to certain dates prior to and after December 31, 1999).
Based on that review and inquiry, the Borrower does not believe the year 2000
problem, including costs of remediation, will result in a material adverse
change in the Borrower's business condition (financial or otherwise),
operations, properties or prospects, or ability to repay the credit. The
Borrower has developed adequate contingency plans to ensure uninterrupted and
unimpaired business operation in the event of a failure of its own or a third
party's systems or equipment due to the year 2000 problem, including those of
vendors, customers, and suppliers, as well as a general failure of or
interruption in its communications and delivery infrastructure.

7.      COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and
until the Bank is repaid in full:

7.1     USE OF PROCEEDS. To use the proceeds of the credit only for working
capital for operations and seasonal requirements.

7.2     FINANCIAL INFORMATION. To provide the following financial information
and statements in form and content acceptable to the Bank, and such additional
information as requested by the Bank from time to time:

(a)     Within 90 days of the Borrower's fiscal year end, the Borrower's annual
        financial statements. These financial statements must be audited (with
        an opinion not qualified in any manner, including not qualified due to
        possible errors generated by financial reporting and related systems due
        to the year 2000 problem) by a Certified Public Accountant ("CPA")
        acceptable to the Bank. The statements shall be prepared on a
        consolidated basis.

(b)     Within 45 days of the period's end, the Borrower's quarterly financial
        statements. These financial statements may be Borrower prepared. The
        statements shall be prepared on a consolidated basis.

7.3     WORKING CAPITAL. To maintain on a consolidated basis current assets in
excess of current liabilities by at least Five Million Dollars ($5,000,000).
This covenant will be calculated at the end of each fiscal quarter, using fiscal
year-to-date results.

7.4     TANGIBLE NET WORTH. To maintain on a consolidated basis tangible net
worth equal to at least Twelve Million Dollars ($12,000,000).

"Tangible net worth" means the gross book value of the Borrower's assets
(excluding goodwill, patents, trademarks, trade names, organization expense,
treasury stock, unamortized debt discount and expense, capitalized or deferred
research and development costs, deferred marketing expenses, deferred
receivables, and other like intangibles) less total liabilities, including but
not limited to accrued and deferred income taxes, and any reserves against
assets. This covenant will be calculated at the end of each fiscal quarter,
using fiscal year-to-date results.

7.5     INDEBTEDNESS TO NET WORTH RATIO. To maintain on a consolidated basis a
ratio of Indebtedness to net worth not exceeding 1.50:1.00.

"Indebtedness" means (a) all indebtedness for borrowed money, (b) that portion
of obligations with respect to capital leases which is capitalized under GAAP,
(c) notes payable and drafts accepted representing extensions of credit, whether
or not representing obligations for borrowed money, (d) any obligations for the
purchase of property or services that is (i) deferred for more than six (6)
months, or (ii) evidenced by a note or similar instruments, and (e) all recourse
and all non-recourse indebtedness secured by any lien on any property or asset
of the Borrower (whether or not assumed by the Borrower). This ratio will be
calculated at the end of each fiscal quarter, using fiscal year-to-date results.



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7.6     OTHER DEBTS. Not to have outstanding or incur any direct or contingent
liabilities (other than those to the Bank), or become liable for the liabilities
of others, without the Bank's written consent. This does not prohibit:

(a)     Acquiring goods, supplies, or merchandise on normal trade credit.

(b)     Endorsing negotiable instruments received in the usual course of
        business.

(c)     Obtaining surety bonds in the usual course of business.

(d)     Liabilities in existence on the date of this Agreement disclosed in
        writing to the Bank.

7.7     OTHER LIENS. Not to create, assume, or allow any security interest or
lien (including judicial liens) on property the Borrower now or later owns,
except:

(a)     Deeds of trust and security agreements in favor of the Bank.

(b)     Liens for taxes not yet due.

(c)     Liens outstanding on the date of this Agreement disclosed in writing to
        the Bank.

7.8     OUT OF DEBT PERIOD. To repay any advances in full, and not to draw any
additional advances on its revolving line of credit, for a period of at least 30
consecutive days in each line-year. "Line-year" means the Borrower's fiscal year
ending October 31, 1999, and each subsequent one-year period (if any). For the
purposes of this paragraph, "advances" does not include undrawn amounts of
outstanding letters of credit.

7.9     NOTICES TO BANK. To promptly notify the Bank in writing of:

(a)     any lawsuit over Three Hundred Thousand Dollars ($300,000) against the
        Borrower (or any guarantor).

(b)     any substantial dispute between the Borrower (or any guarantor) and any
        government authority.

(c)     any failure to comply with this Agreement.

(d)     any material adverse change in the Borrower's (or any guarantors)
        business condition (financial or otherwise), operations, properties or
        prospects, or ability to repay the credit.

(e)     any change in the Borrower's name, legal structure, place of business,
        or chief executive office if the Borrower has more than one place of
        business.

7.10    AUDITS. To allow the Bank and its agents to inspect the Borrower's
properties and examine, audit, and make copies of books and records at any
reasonable time. If any of the Borrower's properties, books or records are in
the possession of a third party, the Borrower authorizes that third party to
permit the Bank or its agents to have access to perform inspections or audits
and to respond to the Bank's requests for information concerning such
properties, books and records.

7.11    COMPLIANCE WITH LAWS. To comply with the laws (including any fictitious
name statute), regulations, and orders of any government body with authority
over the Borrower's business.

7.12    GENERAL BUSINESS INSURANCE. To maintain insurance as is usual for the
business it is in.

7.13    ADDITIONAL NEGATIVE COVENANTS. Not to, without the Bank's written
consent:

(a)     engage in any business activities substantially different from the
        Borrower's present business.

(b)     liquidate or dissolve the Borrower's business.

(c)     enter into any consolidation, merger, or other combination, or become a
        partner in a partnership, a member of a joint venture, or a member of a
        limited liability company.

(d)     sell, assign, lease, transfer or otherwise dispose of any assets for
        less than fair market value, or enter into any agreement to do so.

(e)     enter into any sale and leaseback agreement covering any of its fixed
        assets.

(f)     acquire or purchase a business or its assets.



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7.14    BANK AS PRINCIPAL DEPOSITORY. To maintain the Bank as its principal
depository bank, including for the maintenance of business, cash management,
operating and administrative deposit accounts.

8.      HAZARDOUS WASTE INDEMNIFICATION

The Borrower will indemnify and hold harmless the Bank from any loss or
liability directly or indirectly arising out of the use, generation,
manufacture, production, storage, release, threatened release, discharge,
disposal or presence of a hazardous substance. This indemnity will apply whether
the hazardous substance is on, under or about the Borrower's property or
operations or property leased to the Borrower. The indemnity includes but is not
limited to attorneys' fees (including the reasonable estimate of the allocated
cost of in-house counsel and staff). The indemnity extends to the Bank, its
parent, subsidiaries and all of their directors, officers, employees, agents,
successors, attorneys and assigns. "Hazardous substances" means any substance,
material or waste that is or becomes designated or regulated as "toxic,"
"hazardous," "pollutant," or "contaminant" or a similar designation or
regulation under any federal, state or local law (whether under common law,
statute, regulation or otherwise) or judicial or administrative interpretation
of such, including without limitation petroleum or natural gas. This indemnity
will survive repayment of the Borrower's obligations to the Bank.

9.      DEFAULT

If any of the following events occurs, the Bank may do one or more of the
following: declare the Borrower in default, stop making any additional credit
available to the Borrower, and require the Borrower to repay its entire debt
immediately and without prior notice. If an event of default occurs under the
paragraph entitled "Bankruptcy," below, with respect to the Borrower, then the
entire debt outstanding under this Agreement will automatically be due
immediately.

9.1     FAILURE TO PAY. The Borrower fails to make a payment under this
Agreement when due.

9.2     FALSE INFORMATION. The Borrower (or any guarantor) has given the Bank
false or misleading information or representations.

9.3     BANKRUPTCY. The Borrower (or any guarantor) files a bankruptcy petition,
a bankruptcy petition is filed against the Borrower (or any guarantor) or the
Borrower (or any guarantor) makes a general assignment for the benefit of
creditors.

9.4     RECEIVERS. A receiver or similar official is appointed for the
Borrower's (or any guarantor's) business, or the business is terminated, or any
guarantor is liquidated or dissolved.

9.5     LAWSUITS. Any lawsuit or lawsuits are filed on behalf of one or more
trade creditors against the Borrower (or any guarantor) in an aggregate amount
of One Million Dollars ($1,000,000) or more in excess of any insurance coverage.

9.6     JUDGMENTS. Any judgments or arbitration awards are entered against the
Borrower (or any guarantor), or the Borrower (or any guarantor) enters into any
settlement agreements with respect to any litigation or arbitration, in an
aggregate amount of One Million Dollars ($1,000,000) or more in excess of any
insurance coverage.

9.7     GOVERNMENT ACTION. Any government authority takes action that the Bank
believes materially adversely affects the Borrower's (or any guarantor's)
financial condition or ability to repay.

9.8     MATERIAL ADVERSE CHANGE. A material adverse change occurs, or is
reasonably likely to occur, in the Borrower's (or any guarantor's) business
condition (financial or otherwise), operations, properties or prospects, or
ability to repay the credit.

9.9     CROSS-DEFAULT. Any default occurs under any agreement in connection with
any credit the Borrower (or any guarantor) or any of the Borrower's related
entities or affiliates has obtained from anyone else or which the Borrower (or
any guarantor) or any of the Borrower's related entities or affiliates has
guaranteed.

9.10    DEFAULT UNDER RELATED DOCUMENTS. Any guaranty, subordination agreement,
security agreement, deed of trust, or other document required by this Agreement
is violated or no longer in effect.

9.11    OTHER BANK AGREEMENTS. The Borrower (or any guarantor) fails to meet the
conditions of, or fails to perform any obligation under any other agreement the
Borrower (or any guarantor) has with the Bank or any affiliate of the Bank.

9.12    OTHER BREACH UNDER AGREEMENT. The Borrower fails to meet the conditions
of, or fails to perform any obligation under, any term of this Agreement not
specifically referred to in this Article. This includes any failure or
anticipated failure by the Borrower to comply with any financial covenants set
forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is otherwise known to the Borrower or the
Bank.



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10.     ENFORCING THIS AGREEMENT; MISCELLANEOUS

10.1    GAAP. Except as otherwise stated in this Agreement, all financial
information provided to the Bank and all financial covenants will be made under
generally accepted accounting principles, consistently applied.

10.2    CALIFORNIA LAW. This Agreement is governed by California law.

10.3    SUCCESSORS AND ASSIGNS. This Agreement is binding on the Borrowers and
the Bank's successors and assignees. The Borrower agrees that it may not assign
this Agreement without the Bank's prior consent. The Bank may sell
participations in or assign this loan, and may exchange financial information
about the Borrower with actual or potential participants or assignees. If a
participation is sold or the loan is assigned, the purchaser will have the right
of set-off against the Borrower.

10.4    ARBITRATION.

(a)     This paragraph concerns the resolution of any controversies or claims
        between the Borrower and the Bank, including but not limited to those
        that arise from:

        (i)     This Agreement (including any renewals, extensions or
                modifications of this Agreement);

        (ii)    Any document, agreement or procedure related to or delivered in
                connection with this Agreement;

        (iii)   Any violation of this Agreement; or

        (iv)    Any claims for damages resulting from any business conducted
                between the Borrower and the Bank, including claims for injury
                to persons, property or business interests (torts).

(b)     At the request of the Borrower or the Bank, any such controversies or
        claims will be settled by arbitration in accordance with the United
        States Arbitration Act. The United States Arbitration Act will apply
        even though this Agreement provides that it is governed by California
        law.

(c)     Arbitration proceedings will be administered by the American Arbitration
        Association and will be subject to its commercial rules of arbitration.

(d)     For purposes of the application of the statute of limitations, the
        filing of an arbitration pursuant to this paragraph is the equivalent of
        the filing of a lawsuit, and any claim or controversy which may be
        arbitrated under this paragraph is subject to any applicable statute of
        limitations. The arbitrators will have the authority to decide whether
        any such claim or controversy is barred by the statute of limitations
        and, if so, to dismiss the arbitration on that basis.

(e)     If there is a dispute as to whether an issue is arbitrable, the
        arbitrators will have the authority to resolve any such dispute.

(f)     The decision that results from an arbitration proceeding may be
        submitted to any authorized court of law to be confirmed and enforced.

(g)     The procedure described above will not apply if the controversy or
        claim, at the time of the proposed submission to arbitration, arises
        from or relates to an obligation to the Bank secured by real property
        located in California. In this case, both the Borrower and the Bank must
        consent to submission of the claim or controversy to arbitration. If
        both parties do not consent to arbitration, the controversy or claim
        will be settled as follows:

        (i)     The Borrower and the Bank will designate a referee (or a panel
                of referees) selected under the auspices of the American
                Arbitration Association in the same manner as arbitrators are
                selected in Association-sponsored proceedings;

        (ii)    The designated referee (or the panel of referees) will be
                appointed by a court as provided in California Code of Civil
                Procedure Section 638 and the following related sections;

        (iii)   The referee (or the presiding referee of the panel) will be an
                active attorney or a retired judge; and

        (iv)    The award that results from the decision of the referee (or the
                panel) will be entered as a judgment in the court that appointed
                the referee, in accordance with the provisions of California
                Code of Civil Procedure Sections 644 and 645.



                                      - 8 -
<PAGE>   9

(h)     This provision does not limit the right of the Borrower or the Bank to:

        (i)     exercise self-help remedies such as setoff;

        (ii)    foreclose against or sell any real or personal property
                collateral; or

        (iii)   act in a court of law, before, during or after the arbitration
                proceeding to obtain:

                (A)     an interim remedy; and/or

                (B)     additional or supplementary remedies.

(i)     The pursuit of or a successful action for interim, additional or
        supplementary remedies, or the filing of a court action, does not
        constitute a waiver of the right of the Borrower or the Bank, including
        the suing party, to submit the controversy or claim to arbitration if
        the other party contests the lawsuit. However, if the controversy or
        claim arises from or relates to an obligation to the Bank which is
        secured by real property located in California at the time of the
        proposed submission to arbitration, this right is limited according to
        the provision above requiring the consent of both the Borrower and the
        Bank to seek resolution through arbitration.

(j)     If the Bank forecloses against any real property securing this
        Agreement, the Bank has the option to exercise the power of sale under
        the deed of trust or mortgage, or to proceed by judicial foreclosure.

10.5    SEVERABILITY; WAIVERS. If any part of this Agreement is not enforceable,
the rest of the Agreement may be enforced. The Bank retains all rights, even if
it makes a loan after default. If the Bank waives a default, it may enforce a
later default. Any consent or waiver under this Agreement must be in writing.

10.6    ATTORNEYS' FEES. The Borrower shall reimburse the Bank for any
reasonable costs and attorneys' fees incurred by the Bank in connection with the
enforcement or preservation of any rights or remedies under this Agreement and
any other documents executed in connection with this Agreement, and in
connection with any amendment, waiver, "workout" or restructuring under this
Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing
party is entitled to recover costs and reasonable attorneys' fees incurred in
connection with the lawsuit or arbitration proceeding, as determined by the
court or arbitrator. In the event that any case is commenced by or against the
Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar
or successor statute, the Bank is entitled to recover costs and reasonable
attorneys' fees incurred by the Bank related to the preservation, protection, or
enforcement of any rights of the Bank in such a case. As used in this paragraph,
"attorneys' fees" includes the allocated costs of the Bank's in-house counsel.

10.7    ONE AGREEMENT. This Agreement and any related security or other
agreements required by this Agreement, collectively:

(a)     represent the sum of the understandings and agreements between the Bank
        and the Borrower concerning this credit;

(b)     replace any prior oral or written agreements between the Bank and the
        Borrower concerning this credit; and

(c)     are intended by the Bank and the Borrower as the final, complete and
        exclusive statement of the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements
required by this Agreement, this Agreement will prevail.

10.8    INDEMNIFICATION. The Borrower will indemnify and hold the Bank harmless
from any loss, liability, damages, judgments, and costs of any kind relating to
or arising directly or indirectly out of (a) this Agreement or any document
required hereunder, (b) any credit extended or committed by the Bank to the
Borrower hereunder, and (c) any litigation or proceeding related to or arising
out of this Agreement, any such document, or any such credit. This indemnity
includes but is not limited to attorneys' fees (including the allocated cost of
in-house counsel). This indemnity extends to the Bank, its parent, subsidiaries
and all of their directors, officers, employees, agents, successors, attorneys,
and assigns. This indemnity will survive repayment of the Borrower's obligations
to the Bank. All sums due to the Bank hereunder shall be obligations of the
Borrower, due and payable immediately without demand.

10.9    PRIOR AGREEMENT SUPERSEDED. This Agreement supersedes the Business Loan
Agreement entered into as of April 11, 1995 between the Bank and the Borrower,
and any credit outstanding thereunder shall be deemed to be outstanding under
this Agreement.



                                      - 9 -
<PAGE>   10

This Agreement is executed as of the date stated at the top of the first page.

<TABLE>
<S>                                                   <C>
BANK OF AMERICA
NATIONAL TRUST AND SAVINGS ASSOCIATION                CALAVO GROWERS OF CALIFORNIA

x /s/ BERTHA G. ROMERO                                x  /s/ EGIDIO CARBONE  Vice President
 --------------------------------------------------    ------------------------------------
By: Bertha G. Romero, Vice President                  By:

Address where notices to the Bank are to be sent:     x /s/ SCOTT H. RUNGE   Treasurer
                                                       ------------------------------------
San Gabriel Valley Commercial Banking Office #01463   By:
15625 E. Stafford St.
City of Industry, CA 91744                            Address for Notices:

                                                      2530 Red Hill Avenue
                                                      Santa Ana, CA 92705
</TABLE>



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