Document:

Amendment No. 1 to Amended and Restated Credit Agreement

Exhibit 10.1

     

    AMENDMENT
      NO. 1

     

    TO
      AMENDED AND RESTATED

     

    CREDIT
      AGREEMENT AND SECURITY AGREEMENT

     

    AMENDMENT
      NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT AND SECURITY
      AGREEMENT,
      dated
      as of August 18, 2006 (this “First
      Amendment”),
      to
      the (i) Amended and Restated Credit Agreement, dated as of June 8, 2005 (as
      amended, restated, supplemented or otherwise modified prior to the date hereof,
      the “Existing
      Credit Agreement”;
      as
      amended hereby and as further amended, restated, supplemented or otherwise
      modified and in effect from time to time, the “Credit
      Agreement”),
      among
      AMERCO REAL ESTATE COMPANY, a Nevada corporation (“AMERCO
      Real Estate”),
      AMERCO REAL ESTATE COMPANY OF TEXAS INC., a Texas corporation (“AMERCO
      Texas”),
      AMERCO REAL ESTATE COMPANY OF ALABAMA, INC., an Alabama corporation
      (“AMERCO
      Alabama”),
      and
      U-HAUL CO. OF FLORIDA, INC., a Florida corporation (“U-Haul
      Florida”)
      (each,
      a “Borrower”
and,
      individually and collectively, jointly and severally, the “Borrowers”),
      U-HAUL INTERNATIONAL, INC., a Nevada corporation (“U-Haul
      International”)
      and
      MERRILL LYNCH COMMERCIAL FINANCE CORP., a Delaware corporation (together with
      its permitted successors or assigns, the “Lender”)
      and
      (ii) Security Agreement, dated as of June 8, 2005 (as amended, restated,
      supplemented or otherwise modified prior to the date hereof, the “Existing
      Security Agreement”;
      as
      amended hereby and as further amended, restated, supplemented or otherwise
      modified and in effect from time to time, the “Security
      Agreement”),
      among
      the Grantors and the Lender. Capitalized terms used but not otherwise defined
      herein shall have the meanings given to them in the Credit
      Agreement.

     

    RECITALS

     

    WHEREAS,
      the Borrowers have requested the Lender to agree to amend certain provisions
      of
      the Existing Credit Agreement as set forth in this Amendment. The Lender is
      willing to agree to such amendments, but only on the terms and subject to the
      conditions set forth in this Amendment.

     

    NOW,
      THEREFORE, in consideration of the premises and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      Borrowers and the Lender hereby agree as follows:

     

    SECTION
      1.  Amendments.
      

     

    (a)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Applicable Amortization Schedule” and substituting in lieu
      thereof the following new definition:

     

    ““Applicable
      Amortization Schedule”:
      (a) at
      any time with respect to the Term Loan Commitments, (i) if no Rapid Amortization
      Event is in effect, the schedule attached hereto as Schedule 1.3-A, and (ii)
      if
      a Rapid Amortization Event is in effect, sum of (A) the amount set forth in
      Schedule 1.3-A for such time plus
      (B) such
      an additional amount that, after giving effect to the reduction of the Term
      Loan
      Commitment pursuant to both subclauses (A) and (B) of this clause (ii) and
      the
      prepayments of the Term Loan required pursuant to Section 3.6(a) as a result
      thereof, on a pro forma basis as if such reductions and prepayments occurred
      as
      of the last day of the fiscal quarter of the Borrowers immediately preceding
      such time, the Debt Service Coverage Ratio would be 1.50, and (b) in the case
      of
      the Revolving Credit Commitments at all times, the schedule attached hereto
      as
      Schedule 1.3-B.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Applicable Margin” and substituting in lieu thereof the following
      new definition:

     

    “Applicable
      Margin”:
      (a)
      for any Term Loan, 1.50% per annum and (b) for any Revolving Credit Loan as
      of
      any date, the applicable rate per annum set forth below in the table opposite
      the Debt Service Coverage Ratio for the fiscal quarter most recently ended
      prior
      to such date:

    
      	
               

              Debt
                Service Coverage Ratio

            	
               

              Applicable
                Margin

            
	
               

              x
≥
                3.40

            	
               

              1.50%

            
	
               

              3.40
                >
                x
                ≥ 3.20

            	
               

              1.60%

            
	
               

              3.20
                >
                x
                ≥ 3.00

            	
               

              1.70%

            
	
               

              3.00
                >
                x
                ≥ 2.80

            	
               

              1.80%

            
	
               

              2.80
                >
                x
                ≥ 2.00

            	
               

              1.90%

            
	
               

              2.00
                >
                x
                

            	
               

              2.00%

            

    

     

    

     

    (c)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “CMBS Properties Excess Cash Flow” and substituting in lieu
      thereof the following new definition:

     

    ““CMBS
      Properties Excess Cash Flow”:
      for
      any period, the sum of (a) all amounts which are distributable to any of the
      “Borrowers” under and as defined in any CMBS Mortgage Agreements pursuant to
      Section 5.05 of such CMBS Mortgage Agreements for such period, net of, without
      duplication, Operating Expenses in respect of any CMBS Properties subject to
      such CMBS Mortgage Agreements and payments of principal and interest under
      the
      CMBS Mortgage Agreements, in each case accrued during such period, and (b)
      any
      Permitted CMBS Refinancing Excess Cash Flow and any Unencumbered CMBS Excess
      Cash Flow for such period.”

     

    (d)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Collection Sub-Account Deposit ” and substituting in lieu thereof
      the following new definition:

     

    ““Collection
      Sub-Account Deposit”:
      for
      any calendar month, the deposit to be made by U-Haul International into the
      Collection Sub-Account pursuant to Section 6.10(c) for such month, consisting
      of
      an amount equal to the sum of (i) the monthly principal amortization payment,
      if
      required, of the Loans pursuant to the Applicable Amortization Schedule hereto
      required to be paid on the Payment Date next following the end of such month,
      and (ii) the interest which would be due to be paid on the Payment Date next
      following the end of such month calculated assuming that applicable Debt Service
      Coverage Ratio at all times during such month would result in the Loans bearing
      the highest possible interest rate provided for under Section 3.1(a) at all
      times during such month.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Commitment” and substituting in lieu thereof the following new
      definition:

     

    ““Commitment”:
      collectively, the Term Loan Commitment and the Revolving Credit
      Commitment.”

     

    (f)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Commitment Period” and substituting in lieu thereof the following
      new definition:

     

    ““Commitment
      Period”:
      the
      period from and including the First Amendment Effective Date to but not
      including the Termination Date or such earlier date on which the Revolving
      Credit Commitment shall terminate as provided herein.”

     

    (g)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Continuing Directors” and substituting in lieu thereof the
      following new definition:

     

    ““Continuing
      Directors”:
      the
      directors of AMERCO on the Closing Date and each other director of AMERCO,
      if
      such other director’s nomination for election to the Board of Directors of
      AMERCO is recommended by a majority of the then Continuing Directors or by
      a
      Permitted Holder.”

     

    (h)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Debt Service Coverage Ratio” and substituting in lieu thereof the
      following new definition:

     

    ““Debt
      Service Coverage Ratio”:
      as of
      the last day of any fiscal quarter of the Borrowers, the ratio of (a) the sum
      of
      (i) NOI of the CMBS Properties for the period of twelve consecutive calendar
      months ended on the last day of the month immediately preceding the month in
      which such day occurs divided
      by
      four and
      (ii) Combined NOI for the period of twelve consecutive calendar months ended
      on
      the last day of the month immediately preceding the month in which such day
      occurs, divided
      by
      four, to
      (b) the sum of (i) interest payable on the Loans during the fiscal quarter
      ended
      on such day and (ii) payments of principal on the Loans made during the fiscal
      quarter ended on such day; provided,
      that
      for purposes of calculating such NOI for the CMBS Properties if less than twelve
      months have elapsed since the closing of the transaction contemplated by the
      CMBS Documents as to which the Borrowers have provided the reports contemplated
      in Section 6.1, the amount in clause (a)(i) of this definition shall be the
      NOI
      for the CMBS Properties for the period from such closing of the transaction
      contemplated by the CMBS Documents to such last day of the month immediately
      preceding the month in which such last day of such fiscal quarter occurs
      multiplied by a fraction, the numerator of which is 12 and the denominator
      of
      which is the number of calendar months elapsed since the closing of the
      transaction contemplated by the CMBS Documents as to which such reports
      contemplated in Section 6.1 have been provided.”

     

    (i)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Interest Period” and substituting in lieu thereof the following
      new definition:

     

    ““Interest
      Period”:
      with
      respect to any Eurodollar Loan:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)
      initially, the period commencing on the borrowing date with respect to such
      Eurodollar Loan and ending on the next following Payment Date; and

     

    (b) thereafter,
      each period commencing on the day following the last day of the preceding
      Interest Period applicable to such Eurodollar Loan and ending (a) with respect
      to any Term Loan, on the next following Payment Date and (b) with respect to
      any
      Revolving Credit Loan, one, two or three months thereafter, as selected by
      the
      Borrowers in a notice of borrowing or Continuation, as the case may be, given
      with respect thereto (in the form of Annex I);

     

    provided
      that,
      all of the foregoing provisions relating to Interest Periods are subject to
      the
      following:

     

    (1) if
      any
      Interest Period would otherwise end on a day that is not a Business Day, such
      Interest Period shall be extended to the next succeeding Business Day;
      and

     

    (2) any
      Interest Period with respect to any Loan that would otherwise extend beyond
      the
      Termination Date, shall end on the Termination Date.”

     

    (j)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Loans” and substituting in lieu thereof the following new
      definition:

     

    ““Loans”:
      any
      Term Loan or Revolving Credit Loan made by the Lender pursuant to this
      Agreement.”

     

    (k)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Non-Usage Amount” in its entirety. 

     

    (l)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Note” and substituting in lieu thereof the following new
      definition:

     

    ““Note”:
      as
      defined in Section 3.4(c).”

     

    (m)  Section
      1.1 of the Existing Credit Agreement is hereby amended by deleting the
      definition of “Termination Date” and substituting in lieu thereof the following
      new definition:

     

    ““Termination
      Date”:
      the
      earliest to occur of (a) August 18, 2018 and (b) the date of termination of
      the
      Commitment pursuant to Sections 2.4, 2.5, 2.6 or 8.”

     

    (n)  Section
      1.1 of the Existing Credit Agreement is hereby amended by adding the following
      new definitions in proper alphabetical order:

     

    ““Applicable
      Unencumbered CMBS Properties Percentage”:
      with
      respect to any Unencumbered CMBS Properties, (i) 50%, if such percentage would
      result in the Debt Service Coverage Ratio, on a pro forma basis for the fiscal
      quarter of the Borrowers most recently ended and after the application of such
      percentage to the determination of Unencumbered CMBS Properties Excess Cash
      Flow
      for such period, to be at least 1.50; (ii) 75%, if such percentage would result
      in the Debt Service Coverage Ratio, on a pro forma basis for the fiscal quarter
      of the Borrowers most recently ended and after the application of such
      percentage to the determination of Unencumbered CMBS Properties Excess Cash
      Flow
      for such period, to be at least 1.50 and the percentage specified in clause
      (i)
      of this definition would not have such result; and (iii) 100%, if neither the
      percentage in clause (i) or (ii) of this definition would result in the Debt
      Service Coverage Ratio, on a pro forma basis for the fiscal quarter of the
      Borrowers most recently ended and after the application of such respective
      percentages to the determination of Unencumbered CMBS Properties Excess Cash
      Flow for such period, to be at least 1.50.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ““CMBS
      Maturity Date”:
      as
      defined in Section 6.9(a).”

     

    ““Existing
      Loans”:
      as
      defined in Section 2.1(a).”

     

    ““Facility
      Fee”:
      with
      respect to any Payment Date during the Commitment Period, an amount equal to:
      (i) $16,666.67, if the average daily outstanding principal balance of the
      Revolving Credit Loans for the calendar month ended immediately preceding such
      Payment Date is less than $100,000,000, (ii) $40,625, if the average daily
      outstanding principal balance of the Revolving Credit Loans for the calendar
      month ended immediately preceding such Payment Date is greater than or equal
      to
      $100,000,000 but less than $150,000,000 or (iii) $75,000, if the average daily
      outstanding principal balance of the Revolving Credit Loan for the calendar
      month ended immediately preceding such Payment Date is greater than or equal
      to
      $150,000,000; and with respect to the Termination Date, an amount equal to
      the
      prorated portion of the amount which would have accrued for the period since
      the
      most recent Payment Date to the Termination Date, based on the calculation
      set
      forth above.”

     

    ““First
      Amendment”:
      Amendment No. 1 to Amended and Restated Credit Agreement and Security Agreement,
      dated as of August 18, 2006, among the Borrowers, U-Haul International and
      the
      Lender.”

     

    ““First
      Amendment Effective Date”:
      the
“Amendment Effective Date” as defined in Section 2 of the First
      Amendment.”

     

    ““Permitted
      CMBS Refinancing”:
      with
      respect to any CMBS Properties, a financing (whatever the form) with respect
      to
      such CMBS Properties which:

     

    (a)
      provides for the payment of excess cash flow to the Borrowers or Affiliates
      of
      the Borrowers in an amount during each fiscal quarter of the Borrowers
      sufficient such that the Debt Service Coverage Ratio for such fiscal quarter
      would be equal to at least 1.50 (such excess cash flow in respect of any
      Permitted CMBS Refinancing being referred to herein as “Permitted
      CMBS Refinancing Excess Cash Flow”),
      unless otherwise approved by the Lender; 

     

    (b)
      the
      Borrowers shall have entered into, and shall have caused the applicable
      financing parties subject to such proposed Permitted CMBS Refinancing and other
      Persons to have entered into, such direction letters and other documents to
      provide that the Permitted CMBS Refinancing Excess Cash Flow shall be directed
      to the Collection Account in the same manner as provided in Section 6.10 with
      respect to CMBS Properties Excess Cash Flow; and

     

    (c)
      the
      Lender shall have received substantially final drafts of the proposed Permitted
      CMBS Refinancing Documents at least ten (10) Business Days prior to the closing
      date of such proposed Permitted CMBS Refinancing, and which documents shall
      be
      consistent with the terms of this definition and otherwise in form and substance
      reasonably satisfactory to the Lender.”

     

    ““Permitted
      CMBS Refinancing Documents”:
      with
      respect to any Permitted CMBS Refinancing, all of the mortgage notes, mortgage
      agreements, other security agreements, assignments and other financing documents
      evidencing, governing or otherwise relating to such Permitted CMBS
      Refinancing.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ““Permitted
      CMBS Refinancing Excess Cash Flow”:
      as
      defined in the definition of “Permitted CMBS Refinancing” in this Section
      1.1.”

     

    ““Revolving
      Credit Commitment”:
      the
      obligation of the Lender to make Revolving Credit Loans to the Borrowers
      pursuant to Section 2.1 in an aggregate principal amount at any one time
      outstanding not to exceed, during any month following the First Amendment
      Effective Date, the amount set forth opposite such month on the Applicable
      Amortization Schedule under the caption “Revolving Credit Commitment”. As of the
      First Amendment Effective Date, the Revolving Credit Commitment was
      $200,000,000.”

     

    ““Revolving
      Credit Loan”:
      as
      defined in Section 2.1.”

     

    ““Term
      Loan”:
      as
      defined in Section 2.1.”

     

    ““Term
      Loan Commitment”:
      the
      obligation of the Lender to make Term Loans to the Borrowers pursuant to Section
      2.1 in an aggregate principal amount at any one time outstanding not to exceed,
      during any month following the First Amendment Effective Date, the amount set
      forth opposite such month on the Applicable Amortization Schedule under the
      caption “Term Loan Commitment”, as such amount may be changed from time to time
      in accordance with the provisions of this Agreement. As of the First Amendment
      Effective Date, the Term Loan Commitment was $300,000,000.”

     

    “Unencumbered
      CMBS Properties”:
      as
      defined in Section 6.9(a)(ii).

     

    “Unencumbered
      CMBS Properties Excess Cash Flow”:
      as
      defined in Section 6.9(a)(ii).

     

    ““Unencumbered
      CMBS Properties Security Documents”:
      as
      defined in Section 6.9(a)(ii).”

     

    (o)  Section
      2.1 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “(a)
      Term
      Loan Commitments.
      On the
      Closing Date, concurrently with the amendment and restatement of the Existing
      Loan Agreement hereby, the Lender acquired the outstanding loans under the
      Existing Loan Agreement as provided under the terms of the Existing Loan
      Assignment Agreement, and such loans and the terms thereof were immediately
      amended, restated and reconstituted as, and were thereupon for all purposes
      of
      the Loan Documents, loans outstanding under this Agreement. Subject to the
      terms
      and conditions hereof and as of the First Amendment Effective Date, the Lender
      agrees that “Loans” then outstanding under and as defined in this Agreement
      (prior to giving effect to the amendments effected pursuant to the First
      Amendment) (the “Existing
      Loans”)
      shall
      be amended, restated and reconstituted as a term loan, and the Lender agrees
      to
      make a further new term loan to the Borrowers in a principal amount equal to
      the
      excess of the Term Loan Commitment as of the First Amendment Effective Date
      and
      the outstanding principal balance of the Existing Loans, which term loans
      (collectively, the “Term
      Loan”)
      shall
      be outstanding pursuant to this Section 2.1(a) as a unitary Term Loan in an
      amount not to exceed the amount of the Term Loan Commitment of the Lender then
      in effect. Principal amounts of the Term Loan, once paid or prepaid, may not
      be
      reborrowed.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Revolving
      Credit Commitments.
      Subject
      to the terms and conditions hereof, the Lender agrees to make revolving credit
      loans (“Revolving
      Credit Loans”)
      to the
      Borrowers from time to time during the Commitment Period in an aggregate
      principal amount at any one time outstanding not to exceed the amount of the
      Revolving Credit Commitment then in effect. During the Commitment Period the
      Borrower may use the Revolving Credit Commitments by borrowing, prepaying the
      Revolving Credit Loans in whole or in part, and reborrowing, all in accordance
      with the terms and conditions hereof.

     

    (c)
      The
      Loans hereunder shall be Eurodollar Loans.”

     

    (p)  Section
      2.2 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “(a)
      Procedure
      for Term Loan Borrowing.
      On the
      First Amendment Effective Date, the Existing Loans shall be amended, restated
      and reconstituted as the Term Loan outstanding under Section 2.1(a), and to
      the
      extent that the Term Loan Commitment then in effect exceeds the aggregate
      outstanding principal amount of such Existing Loans, the Lender shall make
      an
      additional new term loan to the Borrowers, to be outstanding as part of the
      Term
      Loan outstanding under Section 2.1(a), in a principal amount equal to such
      excess. The Lender will make such borrowing available to the Borrowers by the
      Lender’s transferring funds relating to such borrowing to an account of the
      Borrowers by wire transfer in accordance with the instructions separately
      certified to the Lender by the Borrowers in writing prior to the First Amendment
      Effective Date and specified as such in the Account and Payment Instructions
      Certificate.

     

    (b)
      Procedure
      for Revolving Credit Borrowing.
      The
      Borrowers may borrow under the Revolving Credit Commitment during the Commitment
      Period on any Business Day ,not to exceed four (4) times in a single month,
      in
      an aggregate principal amount not exceeding the lesser of the Commitment and
      Revolving Credit Commitment then in effect; provided,
      that
      the Borrowers shall give the Lender irrevocable notice (which notice must be
      received by the Lender prior to 2:00 p.m., New York City time, two (2) Business
      Days prior to the requested Borrowing Date) in the form of Annex I hereto,
      duly
      completed, specifying (i) the amount to be borrowed, (ii) the requested
      Borrowing Date and (iii) and the respective lengths of the initial Interest
      Periods therefor. Each borrowing under the Revolving Credit Commitment shall
      be
      in an amount equal to $1,000,000 or a whole multiple of $100,000 in excess
      thereof.”

     

    (q)  Section
      2.3 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “Facility
      Fee.
      The
      Borrowers agree to pay to the Lender a Facility Fee on each Payment Date and
      on
      the Termination Date.”

     

    (r)  Section
      2.4 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “2.4 Termination
      and Mandatory Reduction of Commitment.

     

    (a)
      Termination
      of Revolving Credit Commitments.
      The
      Borrowers shall have the right, upon not less than [five (5)] Business Days’
notice to the Lender, to terminate the Revolving Credit Commitment in full;
      provided,
      that no
      such termination shall be permitted unless all Revolving Credit Loans have
      been
      or are concurrently therewith repaid in full; and provided,
      further,
      that
      upon such termination the Borrowers shall pay to the Lender a prepayment fee
      in
      an amount equal to the product of the Revolving Credit Commitment in effect
      immediately prior to such notice multiplied
      by (i)
      75 basis points (0.75%), in the case that such termination is made within twelve
      (12) months following the First Amendment Effective Date, (ii) 50 basis points
      (0.50%), in the case that such termination is made more than twelve (12) months
      following the First Amendment Effective Date but within twenty-four (24) months
      following the First Amendment Effective Date, and (iii) 25 basis points (0.25%),
      otherwise.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Mandatory
      Reduction of Commitment

     

    .
      The
      Commitment shall automatically be reduced on the dates and in the amounts (a)
      as
      set forth on the Applicable Amortization Schedule, (b) as provided in the second
      sentence of Section 3.6(b), and (c) upon any sale, transfer, exchange or other
      disposition of any Eligible Property or any interest (other than leases of
      or
      easements on any such Eligible Property not prohibited hereby) therein, or
      upon
      any Eligible Property ceasing to be an Eligible Property pursuant to Sections
      6.11(b)(i)(B) or 6.11(e), in an amount equal to 65% of the Appraised Value
      of
      such Eligible Property, provided
      that, if
      in connection with such sale, transfer, exchange or other disposition of an
      Eligible Property the Borrowers substitute a new Eligible Property pursuant
      to
      Section 2.6, such amount of reduction of the Commitment shall be limited to
      65%
      of the excess, if any, of the Appraised Value of the Eligible Property so being
      disposed of over the Appraised Value of the new Eligible Property being
      substituted therefor; and in each such case the Borrowers shall prepay the
      Loans
      and all other amounts owing under the Loan Documents as provided in Section
      3.6(a).”

     

    (s)  Section
      2.5 of the Existing Credit Agreement is hereby deleted in its entirety and
      the
      remaining clause renumbered accordingly.

     

    (t)  Section
      3.1(b) of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “(b)
      If
      any Event of Default shall have occurred and be continuing, (i) the principal
      of
      all Loans and any interest, facility fee or other amount then due and payable
      hereunder shall bear interest at a rate per annum which is (x) in the case
      of
      principal, the rate that would otherwise be applicable thereto pursuant to
      the
      foregoing provisions of this Section plus 2.00% or (y) in the case of any
      such overdue interest, facility fee or other amount, the rate described in
      paragraph (a) of this Section  plus 2.00%, in each case from the date
      of such Event of Default until such Event of Default is cured or waived in
      accordance with this Agreement (as well after as before judgment).”

     

    (u)  Section
      3.2 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “3.2 Continuation.
      Any
      Term Loan which is a Eurodollar Loan shall be Continued as such upon the
      expiration of the then current Interest Period with respect thereto. Any
      Revolving Credit Loan which is a Eurodollar Loan may be Continued as such upon
      the expiration of the then current Interest Period with respect thereto by
      the
      Borrowers giving irrevocable notice to the Lender, in accordance with the
      applicable provisions of the term “Interest Period” set forth in Section 1.1, of
      the length of the next Interest Period to be applicable to such Revolving Credit
      Loan.”

     

    (v)  Section
      3.4(c) of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “(c)
      The
      Borrowers agree that, upon the request by the Lender, the Borrowers will execute
      and deliver to the Lender (i) a promissory note of the Borrowers evidencing
      the
      Term Loans of the Lender, substantially in the form of Exhibit A-1 (a
“Term
      Loan Note”)
      and
      (ii) a promissory note of the Borrowers evidencing the Revolving Credit Loans
      of
      the Borrowers, substantially in the form of Exhibit A-2 ( a “Revolving
      Credit Note”;
      collectively, the Term Loan Note and the Revolving Credit Note are referred
      to
      herein as the “Notes”),
      in
      each case with appropriate insertions as to date and principal
      amount.”

     

    (w)  Section
      3.5 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “Optional
      Prepayments.
      (a) The
      Borrower may at any time prepay the Term Loans, in whole but not in part, upon
      irrevocable notice to the Lender (in the form of Annex III) prior to 2:00 p.m.,
      New York City time, at least three (3) Business Days prior thereto, specifying
      the date and amount of prepayment. If any such notice is given, the amount
      specified in such notice shall be due and payable on the date specified therein,
      (a) together with any amounts payable pursuant to Section 3.13 and (b) a
      prepayment fee in an amount equal to the product of the Term Loan Commitment
      then in effect multiplied
      by (i)
      75 basis points (.75%), in the case the Term Loans are prepaid within twelve
      (12) months following the First Amendment Effective Date, (ii) 50 basis points
      (.50%) in the case the Term Loans are prepaid more than twelve (12) months
      but
      within twenty-four (24) months following the First Amendment Effective Date
      and
      (iii) 25 basis points (.25%), otherwise.

     

    (b)
      The
      Borrower may at any time prepay the Revolving Credit Loans, in whole or in
      part,
      upon irrevocable notice to the Lender (in the form of Annex III) prior to 2:00
      p.m., New York City time, at least three (3) Business Days prior thereto,
      specifying the date and amount
      of
      prepayment. If any such notice is given,
      the amount specified in such notice shall be due and payable on the date
      specified therein, together with (i) any amounts payable pursuant to
      Section 3.13 and (ii) if the Revolving Credit Commitment is terminated in
      full, a prepayment fee in accordance with Section 2.4(a). Partial
      prepayments pursuant to this Section shall be in an aggregate principal
      amount of $1,000,000 or a whole multiple of $100,000 in excess thereof,
      exclusive of any fees or accrued interest then due.”

     

    (x)  Section
      3.6(a) of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “(a)
      If
      on any date the aggregate outstanding principal amount of the Term Loans or
      the
      Revolving Credit Loans exceeds the Term Loan Commitment or the Revolving Credit
      Commitment, respectively, the Borrowers shall immediately prepay such Loans
      in
      an amount equal to the amount of such excess.”

     

    (y)  Section
      3.7(a) of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “(a)
      All
      facility fees and interest shall be calculated on the basis of a 360-day year
      for the actual days elapsed. The Lender shall as soon as practicable notify
      the
      Borrowers of each determination of a Eurodollar Rate. Any change in the interest
      rate on a Loan resulting from a change in the Eurocurrency Reserve Requirements
      shall become effective as of the opening of business on the day on which such
      change becomes effective. The Lender shall as soon as practicable notify the
      Borrowers, by facsimile transmission or electronic mail, of the effective date
      and the amount of each such change in interest rate.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (z)  Section
      5.3 of the Existing Credit Agreement is hereby deleted in its
      entirety.

     

    (aa)  Section
      6.9 of the Existing Credit Agreement is hereby amended and restated in its
      entirety as follows:

     

    “6.9 CMBS
      Maturity and Refinancing.
      

     

    (a)
      In
      the event that the Indebtedness under any of the CMBS Documents is to mature
      at
      a time when any Loans are unpaid or the Commitment is in effect, the Borrowers
      shall either:

     

    (i)
      if
      the CMBS Properties subject to such CMBS Documents are to be subject to a new
      financing after the maturity of such Indebtedness, cause such new financing
      to
      be a Permitted CMBS Refinancing; and

     

    (ii)
      if
      such CMBS Properties subject to such CMBS Documents are not to be subject to
      a
      new financing after the maturity of such Indebtedness, or if they otherwise
      cease to be encumbered by such CMBS Documents (any such pool of CMBS Properties,
      “Unencumbered
      CMBS Properties”),
      (A)
      enter into such supplements to or amendments of the Security Documents, and
      enter into such additional Security Documents (collectively, the “Unencumbered
      CMBS Properties Security Documents”),
      as
      shall be reasonably requested by the Lender to create and perfect a
      first-priority Lien on property constituting not less than the Applicable
      Unencumbered CMBS Properties Percentage of the NOI of such Unencumbered CMBS
      Properties (such portion of such NOI, “Unencumbered
      CMBS Properties Excess Cash Flow”),
      (B)
      cause such Unencumbered CMBS Properties Excess Cash Flow to be directed to
      the
      Collection Account in the same manner as provided in Section 6.10 for CMBS
      Properties Excess Cash Flow, and (C) enter into arrangements whereby the Lender
      or a third-party servicer satisfactory to the Lender shall service the
      collection and remittance of such Unencumbered CMBS Properties Excess Cash
      Flow,
      pursuant to servicing documents reasonably satisfactory to the
      Lender;

     

    in
      each
      case not later than the date of the maturity of such Indebtedness under such
      CMBS Documents (the maturity date of the Indebtedness under any CMBS Documents
      or Permitted CMBS Refinancing Documents being referred to as the “CMBS
      Maturity Date”
      thereof).

     

    (b)
      The
      Borrowers may not, without the prior written consent of the Lender:

     

    (i)
      with
      respect to any CMBS Properties subject to any CMBS Documents or Permitted CMBS
      Refinancing Documents, release any such CMBS Properties from such CMBS Documents
      or Permitted CMBS Refinancing Documents, or

     

    (ii)
      with
      respect to any Unencumbered CMBS Properties, substitute any property for any
      CMBS Property.

     

    (c)
      Upon
      the consummation of any Permitted CMBS Refinancing, or a pool of CMBS Properties
      becoming Unencumbered CMBS Properties, all of the provisions of this Agreement
      and the other Loan Documents applicable to the transactions under the CMBS
      Documents and to the CMBS Properties Excess Cash Flow (including, without
      limitation, Sections 6.10 and 7.3 of this Agreement and Sections 3, 4(d) and
      5(f) and (j) of the Security Agreement) shall apply to such Permitted CMBS
      Refinancing or Unencumbered CMBS Properties, the Permitted CMBS Refinancing
      Documents or Unencumbered CMBS Properties Security Documents therefor, and
      the
      Permitted CMBS Excess Cash Flow and Unencumbered CMBS Excess Cash Flow related
      thereto, mutatis
      mutandis.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (bb)  Section
      7
      of the Existing Credit Agreement is hereby amended by adding a new Section
      7.6
      at the end thereof, in proper numerical order, as follows:

     

    “7.6 Alterations.
      Make any
      alteration or modification to any Eligible Property unless such alterations
      or
      modifications would not impair or diminish the Appraised Value of the
      Property.”

     

    (cc)  Schedule
      1.3 to the Existing Credit Agreement is hereby amended and restated in its
      entirety in the form of Schedules
      1.3-A and 1.3-B
      attached
      hereto

     

    (dd)  Exhibit
      A
      to the Existing Credit Agreement is hereby amended and restated in its entirety
      in the form of Exhibits
      A-1
      and
A-2
      attached
      hereto.

     

    (ee)  Annex
      I
      to the Existing Credit Agreement is hereby amended and restated in its entirety
      in the form of Annex
      I
      attached
      hereto.

     

    (ff)  Section
      1
      of the Existing Security Agreement is hereby amended by adding the following
      new
      definitions in proper alphabetical order:

     

    ““CMBS
      Properties Excess Cash Flow Collateral”:
      collectively, all right, title and interest of any Grantor in and to any cash
      or
      right to receive cash, or any Accounts, Chattel Paper, General Intangibles,
      Instruments, Receivables, Securities, Securities Accounts, Security
      Entitlements, or other property, comprising, evidencing or arising from, in
      whole or in part, any CMBS Properties Excess Cash Flow or any Permitted CMBS
      Refinancing Excess Cash Flow, and all products and Proceeds
      thereof.”

     

    ““Excluded
      Assets”:
      all
      Vehicles (but not the Grantor’s interest in truck and other vehicle rental
      revenue related to the Eligible Properties), and any property of any Grantor
      to
      the extent not comprising any part of, or arising or derived from, or otherwise
      related to, any of the Eligible Properties or the CMBS Properties Excess Cash
      Flow Collateral, including, without limitation, the property listed on Schedule
      II.”

     

    SECTION
      2.  Conditions
      Precedent.
      This
      Amendment shall become effective on the date (the “Amendment
      Effective Date”)
      on
      which the following conditions precedent shall have been satisfied or
      waived:

     

    (a)  the
      Lender shall have received the following:

     

    (i)  This
      Amendment, executed and delivered by a duly authorized officer of each Borrower;
      

     

    (ii)  For
      the
      account of the Lender, a Term Loan Note and a Revolving Credit Note, conforming
      to the requirements of the Credit Agreement and executed by a duly authorized
      officer of the Borrowers;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)  A
      closing
      certificate of each Borrower, dated the First Amendment Effective Date,
      substantially in the form of Exhibit E to the Existing Credit Agreement,
      with appropriate insertions and attachments, satisfactory in form and substance
      to the Lender, executed by the Treasurer and the Secretary of such
      Borrower;

     

    (iv)  A
      copy of
      the resolutions, in form and substance satisfactory to the Lender, of the Board
      of Directors of each Borrower authorizing (i) the execution, delivery and
      performance of this First Amendment, (ii) the borrowings contemplated
      hereunder and (iii) the granting by it of, and the continuation of, the
      Liens created pursuant to the Security Documents, certified by the Secretary
      or
      an Assistant Secretary of such Borrower as of the First Amendment Effective
      Date, which certification shall be included in the certificate delivered in
      respect of such Borrower pursuant to clause (c) above, shall be in form and
      substance satisfactory to the Lender and shall state that the resolutions
      thereby certified have not been amended, modified, revoked or
      rescinded;

     

    (v)  A
      certificate of each Borrower, dated the First Amendment Effective Date, as
      to
      the incumbency and signature of the officers of such Borrower executing this
      First Amendment, which certificate shall be included in the certificate
      delivered in respect of such Borrower pursuant to clause (c) above, shall be
      satisfactory in form and substance to the Lender, and shall be executed by
      the
      President or any Vice President and the Secretary or any Assistant Secretary
      of
      such Borrower;

     

    (vi)  True
      and
      complete copies of the Governing Documents of each Borrower, certified as of
      the
      First Amendment Effective Date as complete and correct copies thereof by the
      Secretary or an Assistant Secretary of such Borrower, which certification shall
      be included in the certificate delivered in respect of such Borrower pursuant
      to
      clause (c) above and shall be in form and substance satisfactory to the
      Lender;

     

    (vii)  Certificates
      dated as of a recent date from the Secretary of State or other appropriate
      authority, evidencing the good standing of each Borrower (i) in the
      jurisdiction of its organization and (ii) in each other jurisdiction where
      its ownership, lease or operation of property or the conduct of its business
      requires it to qualify as a foreign Person except, as to this
      subclause (ii), where the failure to so qualify would not have a Material
      Adverse Effect;

     

    (viii)  
      The
      executed legal opinions of counsel to the Borrowers, covering such matters
      incident to the transactions contemplated by this First Amendment as the Lender
      may reasonably require, and in form and substance satisfactory to the Lender;
      

     

    (ix)  All
      partnership, corporate and other proceedings, and all documents, instruments
      and
      other legal matters in connection with the transactions contemplated by this
      First Amendment shall be satisfactory in form and substance to the Lender,
      and
      the Lender shall have received such other documents and legal opinions in
      respect of any aspect or consequence of the transactions contemplated hereby
      or
      thereby as it shall reasonably request; and

     

    (x)  An
      amendment fee in an amount equal to $2,500,000.

     

    (b)  Any
      filings, recordings, registrations and other actions, including, without
      limitation, the filing of duly executed financing statements on form UCC-1
      or
      amendments to financing statements on form UCC-3, necessary or, in the opinion
      of the Lender, desirable to perfect or to continue the perfection of the Liens
      created by the Security Documents shall have been completed or arrangements
      satisfactory to the Lender to complete the same shall have been
      made.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Each
      of
      the representations and warranties made by the Borrowers and the other Loan
      Parties in or pursuant to the Loan Documents shall be true and correct in all
      material respects on and as of such date as if made on and as of such date
      (unless such representation and warranty is made as of an earlier date in which
      case such representation and warranty shall be true and correct as of such
      earlier date).

     

    (d)  No
      Default or Event of Default shall have occurred and be continuing on such date
      or after giving effect to the Loans requested to be made on such
      date.

     

    (e)  All
      partnership, corporate and other proceedings, and all documents, instruments
      and
      other legal matters in connection with the transactions contemplated by this
      First Amendment shall be satisfactory in form and substance to the Lender,
      and
      the Lender shall have received such other documents and legal opinions in
      respect of any aspect or consequence of the transactions contemplated hereby
      as
      it shall reasonably request.

     

    SECTION
      3.  Representations
      and Warranties.
      Each
      Borrower hereby represents and warrants to the Lender that it is in compliance
      with all the terms and provisions set forth in the Loan Documents on its part
      to
      be observed or performed, and that no Default or Event of Default has occurred
      or is continuing, and, after giving effect to the amendment set forth in Section
      1 hereof, hereby confirms and reaffirms the representations and warranties
      contained in Section 4 of the Credit Agreement.

     

    SECTION
      4.  Limited
      Effect.
      Except
      as expressly amended and modified hereby, the Existing Credit Agreement shall
      continue to be, and shall remain, in full force and effect in accordance with
      its terms; provided that upon the Amendment Effective Date, all references
      therein and herein to the “Loan Documents” shall be deemed to include, in any
      event, this Amendment and each reference to the Credit Agreement in any of
      the
      other Loan Documents shall be deemed to be a reference to the Credit Agreement
      as amended hereby.

     

    SECTION
      5.  Counterparts.
      This
      Amendment may be executed by each of the parties hereto on any number of
      separate counterparts, each of which shall be an original and all of which
      taken
      together shall constitute one and the same instrument. Delivery of an executed
      signature page of this Amendment in Portable Document Format (PDF) or by
      facsimile transmission shall be effective as delivery of a manually executed
      original counterpart hereof.

     

    SECTION
      6.  Reproduction
      of Documents.
      This
      Amendment, and all documents relating hereto, may be reproduced by any
      photographic, photostatic, microfilm, microcard, miniature photographic or
      other
      similar process and any such reproduction shall be admissible in evidence as
      the
      original itself in any judicial or administrative proceeding, whether or not
      the
      original is in existence and whether or not such reproduction was made by a
      party in the regular course of business, and that any enlargement, facsimile
      or
      further reproduction of such reproduction shall likewise be admissible in
      evidence.

     

    SECTION
      7.  GOVERNING
      LAW.
      THIS
      AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    [SIGNATURES
      FOLLOW]

    
      
        
          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed and delivered as of the day and year first above written.

     

    AMERCO
      REAL ESTATE COMPANY, as a Borrower and a Grantor

     

    AMERCO
      REAL ESTATE COMPANY OF TEXAS, INC., as a Borrower and a Grantor

     

    AMERCO
      REAL ESTATE COMPANY OF ALABAMA, INC., as a Borrower and a Grantor

     

    U-HAUL
      CO. OF FLORIDA, INC., as a Borrower and a Grantor

     

    By:              

     

    Name:
      Gary B. Horton

     

    Title:
      Treasurer

     

    

     

    

    
      
        
          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    U-HAUL
      CO. OF ALABAMA, INC.

    U-HAUL
      CO. OF ALASKA

    U-HAUL
      CO. OF ARIZONA

    U-HAUL
      CO. OF CALIFORNIA

    U-HAUL
      CO. OF COLORADO

    U-HAUL
      CO. OF CONNECTICUT

    U-HAUL
      CO. OF GEORGIA

    U-HAUL
      CO. OF IDAHO, INC.

    U-HAUL
      CO. OF ILLINOIS, INC.

    U-HAUL
      CO. OF INDIANA, INC.

    U-HAUL
      CO. OF IOWA, INC.

    U-HAUL
      CO. OF KANSAS, INC.

    U-HAUL
      CO. OF KENTUCKY

    U-HAUL
      CO. OF LOUISIANA

    U-HAUL
      CO. OF MAINE, INC.

    U-HAUL
      CO. OF MARYLAND, INC.

    U-HAUL
      CO. OF MASSACHUSETTS AND OHIO, INC.

    U-HAUL
      CO. OF MICHIGAN

    U-HAUL
      CO. OF MINNESOTA

    U-HAUL
      CO. OF MISSISSIPPI

    U-HAUL
      CO. OF MONTANA, INC.

    U-HAUL
      CO. OF NEBRASKA

    U-HAUL
      CO. OF NEVADA, INC.

    U-HAUL
      CO. OF NEW HAMPSHIRE, INC.

    U-HAUL
      CO. OF NEW JERSEY, INC.

    U-HAUL
      CO. OF NEW MEXICO, INC.

    U-HAUL
      CO. OF NEW YORK AND VERMONT, INC.

    U-HAUL
      CO. OF NORTH CAROLINA

    U-HAUL
      CO. OF NORTH DAKOTA

    U-HAUL
      CO. OF OKLAHOMA, INC.

    U-HAUL
      CO. OF OREGON

    U-HAUL
      CO. OF PENNSYLVANIA

    U-HAUL
      CO. OF RHODE ISLAND

    U-HAUL
      CO. OF SOUTH CAROLINA, INC.

    U-HAUL
      CO. OF SOUTH DAKOTA, INC.

    U-HAUL
      CO. OF TENNESSEE

    U-HAUL
      CO. OF TEXAS

    U-HAUL
      CO. OF UTAH

    U-HAUL
      CO. OF VIRGINIA

    U-HAUL
      CO. OF WASHINGTON

    U-HAUL
      CO. OF WEST VIRGINIA

    U-HAUL
      CO. OF WISCONSIN, INC.

    as
      Grantors

     

    By              

     

    Name:
      Gary B. Horton

     

    Title:
      Treasurer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    MERRILL
      LYNCH COMMERCIAL FINANCE CORP., as Lender 

     

    By:  

     

    Name:
      Ryan D. Bell

     

    Title:
      Vice President

     

    

     

    Acknowledged
      and Agreed:

     

    U-HAUL
      INTERNATIONAL, INC.,

     

    as
      Guarantor

     

    By:
      ___________________________

     

    Name:
      Gary B. Horton

     

    Title:
      Treasurer

     

    

     

    

    
      
        
          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    Schedule
      1.3-A

     

    Mandatory
      Reductions in Term Loan Commitment, Amortization and Rapid
      Amortization

     

     

    

     

    
      	
               

              Date

            	
               

              Term
                Loan Commitment* 
                Commitment reductions pursuant to provisions of the Credit Agreement
                other
                than Section 2.4(a) shall be deemed applied to reduce each amount
                set
                forth in this schedule. 

            
	
               

              First
                Amendment Effective Date

            	
               

              $300,000,000.00

            
	
               

              September
                10, 2006

            	
               

              $300,000,000.00

            
	
               

              October
                10, 2006

            	
               

              $299,167,000.00

            
	
               

              November
                10, 2006

            	
               

              $298,333,000.00

            
	
               

              December
                10, 2006

            	
               

              $297,500,000.00

            
	
               

              January
                10, 2007

            	
               

              $296,667,000.00

            
	
               

              February
                10, 2007

            	
               

              $295,833,000.00

            
	
               

              March
                10, 2007

            	
               

              $295,000,000.00

            
	
               

              April
                10, 2007

            	
               

              $294,167,000.00

            
	
               

              May
                10, 2007

            	
               

              $293,333,000.00

            
	
               

              June
                10, 2007

            	
               

              $292,500,000.00

            
	
               

              July
                10, 2007

            	
               

              $291,667,000.00

            
	
               

              August
                10, 2007

            	
               

              $290,833,000.00

            
	
               

              September
                10, 2007

            	
               

              $290,000,000.00

            
	
               

              October
                10, 2007

            	
               

              $289,167,000.00

            
	
               

              November
                10, 2007

            	
               

              $288,333,000.00

            
	
               

              December
                10, 2007

            	
               

              $287,500,000.00

            
	
               

              January
                10, 2008

            	
               

              $286,667,000.00

            
	
               

              February
                10, 2008

            	
               

              $285,833,000.00

            
	
               

              March
                10, 2008

            	
               

              $285,000,000.00

            
	
               

              April
                10, 2008

            	
               

              $284,167,000.00

            
	
               

              May
                10, 2008

            	
               

              $283,333,000.00

            
	
               

              June
                10, 2008

            	
               

              $282,500,000.00

            
	
               

              July
                10, 2008

            	
               

              $281,667,000.00

            
	
               

              August
                10, 2008

            	
               

              $280,833,000.00

            
	
               

              September
                10, 2008

            	
               

              $280,000,000.00

            
	
               

              October
                10, 2008

            	
               

              $279,167,000.00

            
	
               

              November
                10, 2008

            	
               

              $278,333,000.00

            
	
               

              December
                10, 2008

            	
               

              $277,500,000.00

            
	
               

              January
                10, 2009

            	
               

              $276,667,000.00

            
	
               

              February
                10, 2009

            	
               

              $275,833,000.00

            
	
               

              March
                10, 2009

            	
               

              $275,000,000.00

            
	
               

              April
                10, 2009

            	
               

              $274,167,000.00

            
	
               

              May
                10, 2009

            	
               

              $273,333,000.00

            
	
               

              June
                10, 2009

            	
               

              $272,500,000.00

            
	
               

              July
                10, 2009

            	
               

              $271,667,000.00

            
	
               

              August
                10, 2009

            	
               

              $270,833,000.00

            
	
               

              September
                10, 2009

            	
               

              $270,000,000.00

            
	
               

              October
                10, 2009

            	
               

              $269,167,000.00

            
	
               

              November
                10, 2090

            	
               

              $268,333,000.00

            
	
               

              December
                10, 2009

            	
               

              $267,500,000.00

            
	
               

              January
                10, 2010

            	
               

              $266,667,000.00

            
	
               

              February
                10, 2010

            	
               

              $265,833,000.00

            
	
               

              March
                10, 2010

            	
               

              $265,000,000.00

            
	
               

              April
                10, 2010

            	
               

              $264,167,000.00

            
	
               

              May
                10, 2010

            	
               

              $263,333,000.00

            
	
               

              June
                10, 2010

            	
               

              $262,500,000.00

            
	
               

              July
                10, 2010

            	
               

              $261,167,000.00

            
	
               

              August
                10, 2010

            	
               

              $260,833,000.00

            
	
               

              September
                10, 2010

            	
               

              $260,000,000.00

            
	
               

              October
                10, 2010

            	
               

              $259,167,000.00

            
	
               

              November
                10, 2010

            	
               

              $258,333,000.00

            
	
               

              December
                10, 2010

            	
               

              $257,500,000.00

            
	
               

              January
                10, 2011

            	
               

              $256,667,000.00

            
	
               

              February
                10, 2011

            	
               

              $255,833,000.00

            
	
               

              March
                10, 2011

            	
               

              $255,000,000.00

            
	
               

              April
                10, 2011

            	
               

              $254,167,000.00

            
	
               

              May
                10, 2011

            	
               

              $253,333,000.00

            
	
               

              June
                10, 2011

            	
               

              $252,500,000.00

            
	
               

              July
                10, 2011

            	
               

              $251,667,000.00

            
	
               

              August
                10, 2011

            	
               

              $250,833,000.00

            
	
               

              September
                10, 2011

            	
               

              $250,000,000.00

            
	
               

              October
                10, 2011

            	
               

              $249,167,000.00
                

            
	
               

              November
                10, 2011

            	
               

              $248,333,000.00

            
	
               

              December
                10, 2011

            	
               

              $247,500,000.00

            
	
               

              January
                10, 2012

            	
               

              $246,667,000.00

            
	
               

              February
                10, 2012

            	
               

              $245,833,000.00

            
	
               

              March
                10, 2012

            	
               

              $245,000,000.00

            
	
               

              April
                10, 2012

            	
               

              $244,167,000.00

            
	
               

              May
                10, 2012

            	
               

              $243,333,000.00

            
	
               

              June
                10, 2012

            	
               

              $242,500,000.00

            
	
               

              July
                10, 2012

            	
               

              $241,667,000.00

            
	
               

              August
                10, 2012

            	
               

              $240,833,000.00

            
	
               

              September
                10, 2012

            	
               

              $240,000,000.00

            
	
               

              October
                10, 2012

            	
               

              $239,167,000.00

            
	
               

              November
                10, 2012

            	
               

              $238,333,000.00

            
	
               

              December
                10, 2012

            	
               

              $237,500,000.00

            
	
               

              January
                10, 2013

            	
               

              $236,667,000.00

            
	
               

              February
                10, 2013

            	
               

              $235,833,000.00

            
	
               

              March
                10, 2013

            	
               

              $235,000,000.00

            
	
               

              April
                10, 2013

            	
               

              $234,167,000.00

            
	
               

              May
                10, 2013

            	
               

              $233,333,000.00

            
	
               

              June
                10, 2013

            	
               

              $232,500,000.00

            
	
               

              July
                10, 2013

            	
               

              $231,667,000.00

            
	
               

              August
                10, 2013

            	
               

              $230,833,000.00

            
	
               

              September
                10, 2013

            	
               

              $230,000,000.00

            
	
               

              October
                10, 2013

            	
               

              $229,167,000.00

            
	
               

              November
                10, 2013

            	
               

              $228,333,000.00

            
	
               

              December
                10, 2013

            	
               

              $227,500,000.00

            
	
               

              January
                10, 2014

            	
               

              $226,667,000.00

            
	
               

              February
                10, 2014

            	
               

              $225,833,000.00

            
	
               

              March
                10, 2014

            	
               

              $225,000,000.00

            
	
               

              April
                10, 2014

            	
               

              $224,167,000.00

            
	
               

              May
                10, 2014

            	
               

              $223,333,000.00

            
	
               

              June
                10, 2014

            	
               

              $222,500,000.00

            
	
               

              July
                10, 2014

            	
               

              $221,667,000.00

            
	
               

              August
                10, 2014

            	
               

              $220,833,000.00

            
	
               

              September
                10, 2014

            	
               

              $220,000,000.00

            
	
               

              October
                10, 2014

            	
               

              $219,167,000.00

            
	
               

              November
                10, 2014

            	
               

              $218,333,000.00

            
	
               

              December
                10, 2014

            	
               

              $217,500,000.00

            
	
               

              January
                10, 2015

            	
               

              $216,667,000.00

            
	
               

              February
                10, 2015

            	
               

              $215,833,000.00

            
	
               

              March
                10, 2015

            	
               

              $215,000,000.00

            
	
               

              April
                10, 2015

            	
               

              $214,167,000.00

            
	
               

              May
                10, 2015

            	
               

              $213,333,000.00

            
	
               

              June
                10, 2015

            	
               

              $212,500000.00

            
	
               

              July
                10, 2015

            	
               

              $211,667,000.00

            
	
               

              August
                10, 2015

            	
               

              $210,833,000.00

            
	
               

              September
                10, 2015

            	
               

              $210,000,000.00

            
	
               

              October
                10, 2015

            	
               

              $209,167,000.00

            
	
               

              November
                10, 2015

            	
               

              $208,333,000.00

            
	
               

              December
                10, 2015

            	
               

              $207,500,000.00

            
	
               

              January
                10, 2016

            	
               

              $206,667,000.00

            
	
               

              February
                10, 2016

            	
               

              $205,833,000.00

            
	
               

              March
                10, 2016

            	
               

              $205,000,000.00

            
	
               

              April
                10, 2016

            	
               

              $204,167,000.00

            
	
               

              May
                10, 2016

            	
               

              $203,333,000.00

            
	
               

              June
                10, 2016

            	
               

              $202,500,000.00

            
	
               

              July
                10, 2016

            	
               

              $201,667,000.00

            
	
               

              August
                10, 2016

            	
               

              $200,833,000.00

            
	
               

              September
                10, 2016

            	
               

              $133,333,000.00

            
	
               

              October
                10, 2016

            	
               

              $132,778,000.00

            
	
               

              November
                10, 2016

            	
               

              $132,222,000.00

            
	
               

              December
                10, 2016

            	
               

              $131,667,000.00

            
	
               

              January
                10, 2017

            	
               

              $131,111,000.00

            
	
               

              February
                10, 2017

            	
               

              $130,556,000.00

            
	
               

              March
                10, 2017

            	
               

              $130,000,000.00

            
	
               

              April
                10, 2017

            	
               

              $129,444,000.00

            
	
               

              May
                10, 2017

            	
               

              $128,889,000.00

            
	
               

              June
                10, 2017

            	
               

              $128,333,000.00

            
	
               

              July
                10, 2017

            	
               

              $127,778,000.00

            
	
               

              August
                10, 2017

            	
               

              $127,222,000.00

            
	
               

              September
                10, 2017

            	
               

              $63,333,000.00

            
	
               

              October
                10, 2017

            	
               

              $63,056,000.00

            
	
               

              November
                10, 2017

            	
               

              $62,778,000.00

            
	
               

              December
                10, 2017

            	
               

              $62,500,000.00

            
	
               

              January
                10, 2018

            	
               

              $62,222,000.00

            
	
               

              February
                10, 2018

            	
               

              $61,944,000.00

            
	
               

              March
                10, 2018

            	
               

              $61,667,000.00

            
	
               

              April
                10, 2018

            	
               

              $61,389,000.00

            
	
               

              May
                10, 2018

            	
               

              $61,111,000.00

            
	
               

              June
                10, 2018

            	
               

              $60,833,000.00

            
	
               

              July
                10, 2018

            	
               

              $60,556,000.00

            
	
               

              August
                10, 2018

            	
               

              $60,278,000.00

            
	
               

              Termination
                Date

            	
               

              $0

            

    

     

    

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      1.3-B

     

    Mandatory
      Reductions in Revolving Credit Commitment, Amortization and Rapid
      Amortization

     

     

    

     

    
      	
               

              Date

            	
               

              Revolving
                Credit Commitment* 
                Commitment reductions pursuant to provisions of the Credit Agreement
                other
                than Section 2.4(a) shall be deemed applied to reduce each amount
                set
                forth in this schedule. 

            
	
               

              At
                all times

            	
               

              $200,000,000.00

            
	 	 

    

     

    

     

    

    
      
        

          
            
              
                

                 

              

              
              

            

            
              
              

              
                

              

            

            
              
              

              
                

              

            

          

      

    

     

    FORM
      OF REVOLVING CREDIT NOTE

    
      	
               

              $200,000,000

            	
               

              August
                18, 2006

               

              New
                York, New York

            

    

     

    FOR
      VALUE
      RECEIVED, AMERCO REAL ESTATE COMPANY, a Nevada corporation (“AMERCO
      Real Estate”),
      AMERCO REAL ESTATE COMPANY OF TEXAS INC., a Texas corporation (“AMERCO
      Texas”),
      AMERCO REAL ESTATE COMPANY OF ALABAMA, INC., an Alabama corporation
      (“AMERCO
      Alabama”),
      and
      U-HAUL CO. OF FLORIDA, INC., a Florida corporation (“U-Haul
      Florida”)
      (each,
      a “Borrower”
and,
      individually and collectively, jointly and severally, the “Borrowers”),
      hereby unconditionally promise to pay to the order of MERRILL LYNCH COMMERCIAL
      FINANCE CORP., a Delaware corporation (together with its permitted successors
      or
      assigns, the “Lender”),
      at
      the principal office of the Lender at 4 World Financial Center, 10th
      Floor,
      New York, New York 10080, in Dollars and in immediately available funds, the
      lesser of (a) the principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000)
      and (b) the aggregate unpaid principal amount of all Revolving Credit Loans
      made to the Borrowers pursuant to Section 2.1 of the Credit Agreement referenced
      below (or such lesser amount as shall equal the aggregate unpaid principal
      amount of the Revolving Credit Loans made by the Lender to the Borrowers under
      the Credit Agreement), on the date provided in the Credit Agreement, and to
      pay
      interest on the unpaid principal amount of the Revolving Credit Loans until
      such
      Revolving Credit Loans shall be paid in full, at the rate per annum and on
      the
      dates provided in Section 3.4 of the Credit Agreement.

     

    The
      date,
      amount and interest rate of the Revolving Credit Loan made by the Lender to
      the
      Borrowers, and each payment made on account of the principal thereof, shall
      be
      recorded by the Lender on its books and, prior to any transfer of this Revolving
      Credit Note, endorsed by the Lender on the schedule attached hereto or any
      continuation thereof; provided,
      that
      the failure of the Lender to make any such recordation or endorsement shall
      not
      affect the obligations of the Borrowers to make a payment when due of any amount
      owing under the Credit Agreement or hereunder in respect of the Revolving Credit
      Loans made by the Lender.

     

    This
      Revolving Credit Note is the Revolving Credit Note referred into the Amended
      and
      Restated Credit Agreement, dated as of June 8, 2005 (as amended, restated,
      supplemented or otherwise modified and in effect from time to time, the
“Credit
      Agreement”),
      among
      the Borrowers, U-Haul International, Inc. and the Lender, and evidences the
      Revolving Credit Loans made by the Lender thereunder. Terms used but not defined
      in this Revolving Credit Note have the respective meanings assigned to them
      in
      the Credit Agreement.

     

    The
      Borrowers agree to pay all the Lender’s costs of collection and enforcement
      (including reasonable attorneys’ fees and disbursements of Lender’s counsel) in
      respect of this Revolving Credit Note in accordance with the Credit Agreement,
      including, without limitation, reasonable attorneys’ fees through appellate
      proceedings.

     

    The
      Borrowers and any endorsers or guarantors hereof, (a) severally waive diligence,
      presentment, protest and demand and also notice of protest, demand, dishonor
      and
      nonpayments of this Revolving Credit Note, (b) expressly agree that this
      Revolving Credit Note, or any payment hereunder, may be extended from time
      to
      time, and consent to the acceptance of further Collateral, the release of any
      Collateral for this Revolving Credit Note, the release of any party primarily
      or
      secondarily liable hereon, and (c) expressly agree that it will not be necessary
      for the Lender, in order to enforce payment of this Revolving Credit Note,
      to
      first institute or exhaust the Lender’s remedies against the Borrowers or any
      other party liable hereon or against any Collateral for this Revolving Credit
      Note. No extension of time for the payment of this Revolving Credit Note, or
      any
      installment hereof, made by agreement by the Lender with any person now or
      hereafter liable for the payment of this Revolving Credit Note, shall affect
      the
      liability under this Revolving Credit Note of the Borrowers, even if such
      Borrowers are not parties to such agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Any
      reference herein to the Lender shall be deemed to include and apply to every
      subsequent holder of this Revolving Credit Note. Reference is made to the Credit
      Agreement for provisions concerning optional and mandatory prepayments,
      Collateral, guarantees, acceleration and other material terms affecting this
      Revolving Credit Note.

     

    Each
      Borrower hereby acknowledges and agrees that such Borrower shall be liable
      to
      the maximum extent permitted by applicable law for all representations,
      warranties, covenants, obligations and indemnities of the Borrower under the
      Loan Documents.

     

    This
      Revolving Credit Note shall be governed by and construed and interpreted in
      accordance with the laws of the State of New York whose laws the Borrowers
      expressly elect to apply to this Revolving Credit Note. The Borrowers agree
      that
      any action or proceeding brought to enforce or arising out of
      this Revolving
      Credit Note may be commenced in the Supreme Court of the State of New York,
      Borough of Manhattan, or in the District Court of the United States for the
      Southern District of New York.

     

    [SIGNATURE
      PAGES FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    AMERCO
      REAL ESTATE COMPANY

     

    AMERCO
      REAL ESTATE COMPANY OF TEXAS, INC.

     

    AMERCO
      REAL ESTATE COMPANY OF ALABAMA, INC.

     

    U-HAUL
      CO. OF FLORIDA, INC.

     

    

     

    U-HAUL
      INTERNATIONAL, INC., as Guarantor

     

    By:              

     

    Name:
      Gary B. Horton

     

    Title:
      Treasurer

     

    

    
      
        
           

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    SCHEDULE
      OF REVOLVING CREDIT LOAN

     

    This
      Revolving Credit Note evidences the Revolving Credit Loan made under the
      within-described Credit Agreement to the Borrower, on the dates, in the
      principal amounts and bearing interest at the rates set forth below, and subject
      to the payments and prepayments of principal set forth below:

     

    

    
      	
               

              Date
                Made

            	
               

              Principal
                Amount 

               

              of
                Revolving Credit Loan

            	
               

              Amount
                Paid 

               

              or
                Prepaid

            	
               

              Unpaid
                Principal Amount

            	
               

              Notation
                

               

              Made
                by

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

     

    

     

    FORM
      OF TERM NOTE

     

    $300,000,000August
      18, 2006

     

    New
      York,
      New York

     

    FOR
      VALUE
      RECEIVED, AMERCO REAL ESTATE COMPANY, a Nevada corporation (“AMERCO
      Real Estate”),
      AMERCO REAL ESTATE COMPANY OF TEXAS INC., a Texas corporation (“AMERCO
      Texas”),
      AMERCO REAL ESTATE COMPANY OF ALABAMA, INC., an Alabama corporation
      (“AMERCO
      Alabama”),
      and
      U-HAUL CO. OF FLORIDA, INC., a Florida corporation (“U-Haul
      Florida”)
      (each,
      a “Borrower”
and,
      individually and collectively, jointly and severally, the “Borrowers”),
      hereby unconditionally promise to pay to the order of MERRILL LYNCH COMMERCIAL
      FINANCE CORP., a Delaware corporation (together with its permitted successors
      or
      assigns, the “Lender”),
      at
      the principal office of the Lender at 4 World Financial Center, 10th
      Floor,
      New York, New York 10080, in lawful money of the United States, and in
      immediately available funds, the lesser of (a) the principal sum of THREE
      HUNDRED MILLION DOLLARS ($300,000,000) and (b) the aggregate principal amount
      of
      the Term Loan made to the Borrowers pursuant to the Credit Agreement referenced
      below, on the dates provided in the Credit Agreement, and to pay interest on
      the
      unpaid principal amount of the Term Loan, at such office, in like money and
      funds, for the period commencing on the date of such Term Loan until such Term
      Loan shall be paid in full, at the rate per annum and on the dates provided
      in
      the Credit Agreement.

     

    The
      date,
      amount and interest rate of the Term Loan made by the Lender to the Borrowers,
      and each payment made on account of the principal thereof, shall be recorded
      by
      the Lender on its books and, prior to any transfer of this Term Note, endorsed
      by the Lender on the schedule attached hereto or any continuation thereof;
      provided,
      that
      the failure of the Lender to make any such recordation or endorsement shall
      not
      affect the obligations of the Borrower to make a payment when due of any amount
      owing under the Credit Agreement or hereunder in respect of the Term Loan made
      by the Lender.

     

    This
      Term
      Note is the Term Note referred to in the Amended and Restated Credit Agreement,
      dated as June 8, 2005 (as amended, restated, supplemented or otherwise modified
      and in effect from time to time, the “Credit
      Agreement”),
      among
      the Borrowers, U-Haul International, Inc., and the Lender, and evidences the
      Term Loan made by the Lender thereunder. Terms used but not defined in this
      Term
      Note have the respective meanings assigned to them in the Credit
      Agreement.

     

    The
      Borrowers agree to pay all the Lender’s costs of collection and enforcement
      (including reasonable attorneys’ fees and disbursements of Lender’s counsel) in
      respect of this Term Note in accordance with the Credit Agreement, including,
      without limitation, reasonable attorneys’ fees through appellate
      proceedings.

     

    The
      Borrowers, and any endorsers or guarantors hereof, (a) severally waive
      diligence, presentment, protest and demand and also notice of protest, demand,
      dishonor and nonpayments of this Term Note, (b) expressly agree that this Term
      Note, or any payment hereunder, may be extended from time to time, and consent
      to the acceptance of further Collateral, the release of any Collateral for
      this
      Term Note, the release of any party primarily or secondarily liable hereon,
      and
      (c) expressly agree that it will not be necessary for the Lender, in order
      to
      enforce payment of this Term Note, to first institute or exhaust the Lender’s
      remedies against the Borrowers or any other party liable hereon or against
      any
      Collateral for this Term Note. No extension of time for the payment of this
      Term
      Note, or any installment hereof, made by agreement by the Lender with any person
      now or hereafter liable for the payment of this Term Note, shall affect the
      liability under this Term Note of the Borrowers, even if such Borrowers are
      not
      parties to such agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Any
      reference herein to the Lender shall be deemed to include and apply to every
      subsequent holder of this Term Note. Reference is made to the Credit Agreement
      for provisions concerning optional and mandatory prepayments, Collateral,
      guarantees, acceleration and other material terms affecting this Term
      Note.

     

    Each
      Borrower hereby acknowledges and agrees that such Borrower shall be liable
      to
      the maximum extent permitted by applicable law for all representations,
      warranties, covenants, obligations and indemnities of the Borrower under the
      Term Loan Documents.

     

    This
      Term
      Note amends, restates and replaces in its entirety the Note, dated as of June
      8,
      2005, made by the Borrowers in favor of the Lenders pursuant to the Credit
      Agreement, in the maximum principal sum of $465,000,000 (the “Note”)
      and is
      given as a continuation, rearrangement and extension, and not a novation,
      release or satisfaction of the Note. The Borrowers hereby acknowledge and agree
      that simultaneously with the Borrower’s execution and delivery of this Term Note
      to the Lender, the Lender has delivered to the Borrower the Note.

     

    This
      Term Note shall be governed by and construed and interpreted in accordance
      with
      the laws of the State of New York whose laws the Borrowers expressly elect
      to
      apply to this Term Note. The Borrowers agree that any action or proceeding
      brought to enforce or arising out of this Term Note may be commenced in the
      Supreme Court of the State of New York, Borough of Manhattan, or in the District
      Court of the United States for the Southern District of New York.

     

    

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    AMERCO
      REAL ESTATE COMPANY

     

    AMERCO
      REAL ESTATE COMPANY OF TEXAS, INC.

     

    AMERCO
      REAL ESTATE COMPANY OF ALABAMA, INC.

     

    U-HAUL
      CO. OF FLORIDA, INC.

     

    

     

    U-HAUL
      INTERNATIONAL, INC., as Guarantor

     

    By:           

     

    Name:
      Gary B. Horton

     

    Title:
      Treasurer

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF TERM LOAN

     

    This
      Term
      Note evidences the Term Loan made under the within-described Credit Agreement
      to
      the Borrower, on the dates, in the principal amounts and bearing interest at
      the
      rates set forth below, and subject to the payments and prepayments of principal
      set forth below:

     

    

    
      	
               

              Date
                Made

            	
               

              Principal
                Amount 

               

              of
                Term Loan

            	
               

              Amount
                Paid 

               

              or
                Prepaid

            	
               

              Unpaid
                Principal Amount

            	
               

              Notation
                

               

              Made
                by

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    ANNEX
      I

     

    FORM
      OF NOTICE OF BORROWING / CONTINUATION

     

    [Date]

     

    Merrill
      Lynch Commercial Finance Corp., as Lender

     

    4
      World
      Financial Center, 33rd Floor

     

    New
      York,
      New York 10080

     

    

     

    Attention:
      Paul Tufaro

     

    
      	Re:  	
              AMERCO

            

    

     

    Ladies
      and Gentlemen:

     

    This
      Notice of [Borrowing] / [Continuation] is delivered to you pursuant to Section
      2.2 of the Credit Agreement dated as of June 8, 2005 (as amended, restated,
      supplemented or otherwise modified from time to time, the “Credit
      Agreement”),
      among
      AMERCO Real Estate Company, AMERCO Real Estate Company of Texas, Inc., AMERCO
      Real Estate Company of Alabama, Inc., and U-Haul Co. of Florida, Inc., as
      borrowers (the “Borrowers”),
      U-Haul International, Inc., as guarantor and Merrill Lynch Commercial Finance
      Corp., as lender (the “Lender”).
      Unless otherwise defined herein or the context otherwise requires, terms used
      herein have the meanings provided in the Credit Agreement.

     

    [The
      Borrowers hereby request that a Term Loan be made in the aggregate principal
      amount of $[____________] on [__________ __, 200_] as a Eurodollar Loan having
      an Interest Period of one month.]

     

    [The
      Borrowers hereby request that on [_________ __, 200_] (the “Continuation
      Date”),
      $[____________] of the presently outstanding principal amount of the Revolving
      Credit Loans originally made on [__________ __, 200_], and all presently being
      maintained as Eurodollar Loans, be continued as Eurodollar Loans having an
      Interest Period of [one / two / three] month(s).]

     

    The
      Borrowers hereby acknowledge that, pursuant to Section 5.2 of the Credit
      Agreement, each of the delivery of this Notice of Borrowing / Continuation
      and
      the acceptance by the Borrowers of the proceeds of the Loans requested hereby
      constitute a representation and warranty by the Borrowers that, on and as of
      the
      date of such Loans, and immediately before and after giving effect thereto
      and
      to the application of the proceeds therefrom, all the representations and
      warranties made by the Borrowers and the other Loan Parties made in or pursuant
      to the other Loan Documents are true and correct in all material respects
      (except for representations and warranties which by their terms relate to an
      earlier date).

     

    The
      Borrowers agree that if prior to the time of the Borrowing requested hereby
      any
      matter certified to herein by it will not be true and correct at such time
      as if
      then made, they will immediately so notify the Lender. Except to the extent,
      if
      any, that prior to the time of the Borrowing requested hereby the Lender shall
      receive written notice to the contrary from the Borrower, each matter certified
      to herein shall be deemed once again to be certified as true and correct at
      the
      date of such Borrowing as if then made.

     

    [Signature
      page follows]

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    The
      Borrowers have caused this Notice of Borrowing / Continuation to be executed
      and
      delivered, and the certification and warranties contained herein to be made,
      by
      its duly authorized officer this __th day of ___________________,
      20__.]

     

    [BORROWER]

     

    By:  

     

    Name:

     

    Title:Exhibit 10.1 Amended and Restated Revolving Credit Agreement

    

     

    Exhibit
      10.1

     

     

    AMENDED
      AND RESTATED REVOLVING CREDIT AGREEMENT

     

    Dated
      as of August 18, 2006

     

    among

     

    SENECA
      FOODS CORPORATION,

     

    SIGNATURE
      FRUIT COMPANY, LLC,

     

    and

     

    SENECA
      SNACK COMPANY

     

    as
      Borrowers,

     

    THE
      LENDERS LISTED ON SCHEDULE 1 HERETO,

     

    BANK
      OF AMERICA, N.A.,

     

    as
      Administrative Agent, Collateral Agent and Issuing Bank,

     

    GENERAL
      ELECTRIC CAPITAL CORPORATION,

     

    as
      Syndication Agent

     

    COOPERATIEVE
      CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK
      BRANCH,

     

    as
      Documentation Agent

     

    with

     

    BANC
      OF AMERICA SECURITIES LLC,

     

    as
      Arranger

     

    

     

    
      
        
          CTDOCS/1667596.9 

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    
      	
              1.

            	
              DEFINITIONS
                AND RULES OF INTERPRETATION

            	
              1

            
	
              1.1.

            	
              Definitions

            	
              1

            
	
              1.2.

            	
              Rules
                of Interpretation

            	
              31

            
	
              1.3.

            	
              Joint
                and Several Obligations

            	
              32

            
	 	 	 
	
              2.

            	
              THE
                REVOLVING CREDIT FACILITY

            	
              34

            
	
              2.1.

            	
              Commitment
                to Lend

            	
              34

            
	
              2.2.

            	
              Unused
                Fee

            	
              34

            
	
              2.3.

            	
              Reduction
                of Total Commitment

            	
              34

            
	
              2.4.

            	
              The
                Notes

            	
              34

            
	
              2.5.

            	
              Interest
                on Loans

            	
              35

            
	
              2.6.

            	
              Requests
                for Loans

            	
              36

            
	
              2.7.

            	
              Conversion
                Options

            	
              36

            
	
              2.8.

            	
              Funds
                for Loan

            	
              37

            
	
              2.9.

            	
              Change
                in Borrowing Base

            	
              38

            
	
              2.10.

            	
              Settlements

            	
              38

            
	
              2.11.

            	
              Repayments
                of Loans Prior to Event of Default

            	
              39

            
	
              2.12.

            	
              Repayments
                of Loans After Event of Default

            	
              41

            
	
              2.13.

            	
              Increase
                in Commitments

            	
              41

            
	 	 	 
	
              3.

            	
              REPAYMENT
                OF THE LOANS

            	
              42

            
	
              3.1.

            	
              Maturity

            	
              42

            
	
              3.2.

            	
              Mandatory
                Repayments of Loans

            	
              43

            
	
              3.3.

            	
              Optional
                Repayments of Loans

            	
              43

            
	 	 	 
	
              4.

            	
              LETTERS
                OF CREDIT

            	
              44

            
	
              4.1.

            	
              Letter
                of Credit Commitments; LC Guaranty

            	
              44

            
	
              4.2.

            	
              Reimbursement
                Obligation of the Borrowers

            	
              46

            
	
              4.3.

            	
              Letter
                of Credit Payments

            	
              47

            
	
              4.4.

            	
              Obligations
                Absolute

            	
              47

            
	
              4.5.

            	
              Reliance
                by Issuer

            	
              48

            
	
              4.6.

            	
              Letter
                of Credit Fee

            	
              48

            
	 	 	 
	
              5.

            	
              CERTAIN
                GENERAL PROVISIONS

            	
              49

            
	
              5.1.

            	
              Administrative
                Agent’s Fee

            	
              49

            
	
              5.2.

            	
              Funds
                for Payments

            	
              49

            
	
              5.3.

            	
              Computations

            	
              50

            
	
              5.4.

            	
              Inability
                to Determine LIBOR Rate

            	
              51

            
	
              5.5.

            	
              Illegality

            	
              51

            
	
              5.6.

            	
              Additional
                Costs, etc

            	
              51

            
	
              5.7.

            	
              Capital
                Adequacy

            	
              52

            
	
              5.8.

            	
              Certificate

            	
              53

            
	
              5.9.

            	
              Indemnity

            	
              53

            
	
              5.10.

            	
              Interest
                After Default

            	
              53

            
	
              5.11.

            	
              Replacement
                of Lenders

            	
              53

            
	 	 	 
	
              6.

            	
              COLLATERAL
                SECURITY

            	
              54

            
	 	 	 
	
              7.

            	
              REPRESENTATIONS
                AND WARRANTIES

            	
              54

            
	
              7.1.

            	
              Corporate
                Authority

            	
              54

            
	
              7.2.

            	
              Governmental
                Approvals

            	
              55

            
	
              7.3.

            	
              Title
                to Properties; Leases

            	
              55

            
	
              7.4.

            	
              Financial
                Statements and Projections

            	
              55

            
	
              7.5.

            	
              No
                Material Adverse Changes, etc

            	
              56

            
	
              7.6.

            	
              Franchises,
                Patents, Copyrights, etc

            	
              56

            
	
              7.7.

            	
              Litigation

            	
              57

            
	
              7.8.

            	
              No
                Materially Adverse Contracts, etc

            	
              57

            
	
              7.9.

            	
              Compliance
                with Other Instruments, Laws, etc

            	
              57

            
	
              7.10.

            	
              Tax
                Status

            	
              57

            
	
              7.11.

            	
              No
                Event of Default

            	
              57

            
	
              7.12.

            	
              Holding
                Company and Investment Company Acts

            	
              57

            
	
              7.13.

            	
              Absence
                of Financing Statements, etc

            	
              58

            
	
              7.14.

            	
              Perfection
                of Security Interest

            	
              58

            
	
              7.15.

            	
              Certain
                Transactions

            	
              58

            
	
              7.16.

            	
              Employee
                Benefit Plans

            	
              58

            
	
              7.17.

            	
              Use
                of Proceeds

            	
              59

            
	
              7.18.

            	
              Environmental
                Compliance

            	
              60

            
	
              7.19.

            	
              Subsidiaries,
                etc

            	
              61

            
	
              7.20.

            	
              Bank
                Accounts

            	
              61

            
	
              7.21.

            	
              Alliance
                Agreement

            	
              61

            
	
              7.22.

            	
              Signature
                Fruit Purchase Agreement

            	
              61

            
	
              7.23.

            	
              Hancock
                Amended and Restated Note Agreement Documents and the Master Reimbursement
                Agreement

            	
              62

            
	
              7.24.

            	
              PACA

            	
              62

            
	
              7.25.

            	
              Subsidiary
                Business

            	
              62

            
	
              7.26.

            	
              Perfection
                Certificates

            	
              62

            
	
              7.27.

            	
              Food
                Security Act

            	
              62

            
	
              7.28.

            	
              Disclosure

            	
              62

            
	 	 	 
	
              8.

            	
              AFFIRMATIVE
                COVENANTS

            	
              62

            
	
              8.1.

            	
              Punctual
                Payment

            	
              62

            
	
              8.2.

            	
              Maintenance
                of Office

            	
              63

            
	
              8.3.

            	
              Records
                and Accounts

            	
              63

            
	
              8.4.

            	
              Financial
                Statements, Certificates and Information

            	
              63

            
	
              8.5.

            	
              Notices

            	
              65

            
	
              8.6.

            	
              Legal
                Existence; Maintenance of Properties

            	
              67

            
	
              8.7.

            	
              Insurance

            	
              67

            
	
              8.8.

            	
              Taxes

            	
              67

            
	
              8.9.

            	
              Inspection
                of Properties and Books, etc

            	
              68

            
	
              8.10.

            	
              Compliance
                with Laws, Contracts, Licenses, and Permits

            	
              69

            
	
              8.11.

            	
              Employee
                Benefit Plans

            	
              69

            
	
              8.12.

            	
              Use
                of Proceeds

            	
              69

            
	
              8.13.

            	
              Bank
                Accounts

            	
              70

            
	
              8.14.

            	
              Additional
                Matters Relating to PACA

            	
              70

            
	
              8.15.

            	
              Food
                Security Act

            	
              72

            
	
              8.16.

            	
              Additional
                Subsidiaries

            	
              72

            
	
              8.17.

            	
              Further
                Assurances

            	
              72

            
	 	 	 
	
              9.

            	
              CERTAIN
                NEGATIVE COVENANTS

            	
              72

            
	
              9.1.

            	
              Restrictions
                on Indebtedness

            	
              72

            
	
              9.2.

            	
              Restrictions
                on Liens

            	
              73

            
	
              9.3.

            	
              Restrictions
                on Investments

            	
              75

            
	
              9.4.

            	
              Restricted
                Payments

            	
              76

            
	
              9.5.

            	
              Merger,
                Consolidation and Disposition of Assets

            	
              76

            
	
              9.6.

            	
              Sale
                and Leaseback

            	
              77

            
	
              9.7.

            	
              Compliance
                with Environmental Laws

            	
              77

            
	
              9.8.

            	
              Subordinated
                Indebtedness

            	
              77

            
	
              9.9.

            	
              Employee
                Benefit Plans

            	
              77

            
	
              9.10.

            	
              Business
                Activities

            	
              78

            
	
              9.11.

            	
              Fiscal
                Year

            	
              78

            
	
              9.12.

            	
              Transactions
                with Affiliates

            	
              78

            
	
              9.13.

            	
              Bank
                Accounts

            	
              78

            
	
              9.14.

            	
              Subsidiary
                Business

            	
              79

            
	
              9.15.

            	
              Accounts
                Receivable

            	
              79

            
	
              9.16.

            	
              Hancock
                Signature Note Agreement Loans and Silgan Payable

            	
              79

            
	
              9.17.

            	
              Subsidiary
                Business

            	
              79

            
	 	 	 
	
              10.

            	
              FINANCIAL
                COVENANTS

            	
              79

            
	
              10.1.

            	
              Minimum
                EBITDA

            	
              79

            
	 	 	 
	
              11.

            	
              CLOSING
                CONDITIONS

            	
              79

            
	
              11.1.

            	
              Loan
                Documents and Signature Fruit Purchase Agreement

            	
              79

            
	
              11.2.

            	
              Certified
                Copies of Governing Documents

            	
              80

            
	
              11.3.

            	
              Corporate
                or Other Action

            	
              80

            
	
              11.4.

            	
              Incumbency
                Certificate

            	
              80

            
	
              11.5.

            	
              Validity
                of Liens

            	
              81

            
	
              11.6.

            	
              Perfection
                Certificates and UCC Search Results

            	
              81

            
	
              11.7.

            	
              Landlord
                Warehouse Consents and Mortgagee Consents

            	
              81

            
	
              11.8.

            	
              Certificates
                of Insurance

            	
              81

            
	
              11.9.

            	
              Agency
                Account Agreements

            	
              81

            
	
              11.10.

            	
              Borrowing
                Base Report; Excess Availability

            	
              81

            
	
              11.11.

            	
              Accounts
                Receivable Aging Report

            	
              81

            
	
              11.12.

            	
              Solvency
                Certificate

            	
              82

            
	
              11.13.

            	
              Opinions
                of Counsel

            	
              82

            
	
              11.14.

            	
              Payment
                of Fees

            	
              82

            
	
              11.15.

            	
              Payoff
                Letter and/or Termination Agreement

            	
              82

            
	
              11.16.

            	
              Disbursement
                Instructions

            	
              82

            
	
              11.17.

            	
              Signature
                Fruit Tax Sharing Agreement

            	
              82

            
	
              11.18.

            	
              Underwriting
                Fee

            	
              82

            
	 	 	 
	
              12.

            	
              CONDITIONS
                TO ALL BORROWINGS

            	
              83

            
	
              12.1.

            	
              Representations
                True; No Event of Default

            	
              83

            
	
              12.2.

            	
              No
                Legal Impediment

            	
              83

            
	
              12.3.

            	
              Proceedings
                and Documents

            	
              83

            
	
              12.4.

            	
              Borrowing
                Base Report

            	
              83

            
	 	 	 
	
              13.

            	
              EVENTS
                OF DEFAULT; ACCELERATION; ETC

            	
              83

            
	
              13.1.

            	
              Events
                of Default and Acceleration

            	
              83

            
	
              13.2.

            	
              Termination
                of Commitments

            	
              87

            
	
              13.3.

            	
              Remedies

            	
              87

            
	
              13.4.

            	
              Distribution
                of Collateral Proceeds

            	
              87

            
	 	 	 
	
              14.

            	
              THE
                ADMINISTRATIVE AGENT

            	
              88

            
	
              14.1.

            	
              Authorization

            	
              88

            
	
              14.2.

            	
              Employees
                and Administrative Agents

            	
              89

            
	
              14.3.

            	
              No
                Liability

            	
              89

            
	
              14.4.

            	
              No
                Representations

            	
              89

            
	
              14.5.

            	
              Payments

            	
              90

            
	
              14.6.

            	
              Holders
                of Loans

            	
              91

            
	
              14.7.

            	
              Indemnity

            	
              91

            
	
              14.8.

            	
              Administrative
                Agent as Lender

            	
              91

            
	
              14.9.

            	
              Resignation

            	
              91

            
	
              14.10.

            	
              Notification
                of Defaults and Events of Default

            	
              92

            
	
              14.11.

            	
              Duties
                in the Case of Enforcement

            	
              92

            
	 	 	 
	
              15.

            	
              SUCCESSORS
                AND ASSIGNS

            	
              92

            
	
              15.1.

            	
              General
                Conditions

            	
              92

            
	
              15.2.

            	
              Assignments

            	
              93

            
	
              15.3.

            	
              Register

            	
              93

            
	
              15.4.

            	
              Participations

            	
              94

            
	
              15.5.

            	
              Payments
                to Participants

            	
              94

            
	
              15.6.

            	
              Miscellaneous
                Assignment Provisions

            	
              94

            
	
              15.7.

            	
              Assignee
                or Participant Affiliated with a Borrower

            	
              95

            
	
              15.8.

            	
              New
                Notes

            	
              95

            
	
              15.9.

            	
              Special
                Purpose Funding Vehicle

            	
              95

            
	 	 	 
	
              16.

            	
              PROVISIONS
                OF GENERAL APPLICATIONS

            	
              96

            
	
              16.1.

            	
              Setoff

            	
              96

            
	
              16.2.

            	
              Expenses

            	
              97

            
	
              16.3.

            	
              Indemnification

            	
              98

            
	
              16.4.

            	
              Treatment
                of Certain Confidential Information

            	
              99

            
	
              16.5.

            	
              Survival
                of Covenants, Etc

            	
              100

            
	
              16.6.

            	
              Notices

            	
              100

            
	
              16.7.

            	
              Governing
                Law

            	
              101

            
	
              16.8.

            	
              Headings

            	
              101

            
	
              16.9.

            	
              Counterparts

            	
              101

            
	
              16.10.

            	
              Entire
                Agreement, Etc

            	
              102

            
	
              16.11.

            	
              Waiver
                of Jury Trial

            	
              102

            
	
              16.12.

            	
              Consents,
                Amendments, Waivers, Etc

            	
              102

            
	
              16.13.

            	
              Notices
                to and Consents from the Borrowers

            	
              104

            
	
              16.14.

            	
              Severability

            	
              104

            
	
              16.15.

            	
              Effective
                Date

            	
              104

            
	
              16.16.

            	
              Patriot
                Act Notice

            	
              104

            
	
              16.17.

            	
              Restatement

            	
              104

            

    

    

    
      
        
          vi

          CTDOCS/1667596.9 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      

        Schedules

        

        
          	
                  Schedule 1

                	 	
                  Lenders
                    and Commitments

                
	
                  Schedule 7.3

                	 	
                  Title
                    to Properties; Leases

                
	
                  Schedule
                    7.5

                	 	
                  Restricted
                    Payments

                
	
                  Schedule 7.6

                	 	
                  Proprietary
                    Rights

                
	
                  Schedule 7.7

                	 	
                  Litigation

                
	
                  Schedule 7.18

                	 	
                  Environmental
                    Compliance

                
	
                  Schedule 7.19

                	 	
                  Subsidiaries
                    Etc.

                
	
                  Schedule 7.20

                	 	
                  Bank
                    Accounts

                
	
                  Schedule 7.26

                	 	
                  Perfection
                    Certificate Updates

                
	
                  Schedule 9.1

                	 	
                  Existing
                    Indebtedness

                
	
                  Schedule 9.2

                	 	
                  Existing
                    Liens

                
	
                  Schedule 9.3

                	 	
                  Existing
                    Investments

                

        

        

        Exhibits

        

        
          	
                  Exhibit A

                	 	
                  Form
                    of Borrowing Base Report

                
	
                  Exhibit B-1

                	 	
                  Form
                    of Amended and Restated Revolving Credit Note

                
	
                  Exhibit B-2

                	 	
                  Form
                    of Amended and Restated Swing Line Note

                
	
                  Exhibit C

                	 	
                  Form
                    of Loan Request

                
	
                  Exhibit D

                	 	
                  Form
                    of Compliance Certificate

                
	
                  Exhibit E

                	 	
                  Form
                    of Assignment and Acceptance

                

        

        

      

      

      

    

    

    

    
      
        
          vi

          CTDOCS/1667596.9 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AMENDED
      AND RESTATED REVOLVING CREDIT AGREEMENT

     

    This
      AMENDED
      AND RESTATED REVOLVING CREDIT AGREEMENT
      is made
      as of August 18, 2006, by and among SENECA
      FOODS CORPORATION,
      a New
      York corporation (“Parent”),
      SIGNATURE
      FRUIT COMPANY, LLC,
      a
      Delaware limited liability company (“Signature
      Fruit”),
      and
SENECA
      SNACK COMPANY,
      a
      Washington corporation (“Seneca
      Snack”,
      and
      together with the Parent and Signature Fruit, collectively, the “Borrowers”),
      BANK
      OF AMERICA, N.A.,
      a
      national banking association, and the other lending institutions listed on
      Schedule 1,
      Bank of
      America, N.A. as administrative agent for itself and such other lending
      institutions, GENERAL
      ELECTRIC CAPITAL CORPORATION,
      as
      Syndication Agent, and COOPERATIEVE
      CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK
      BRANCH
      as
      Documentation Agent and BANK
      OF AMERICA, N.A.,
      a
      national banking association, as Collateral Agent for itself and such other
      lending institutions and as Issuing Bank.

     

    WHEREAS,
      pursuant to a certain Revolving Credit Agreement dated as of May 27, 2003,
      as
      amended from time to time (as amended and in effect from time to time, the
      “Original
      Credit Agreement”),
      the
      Original Lenders agreed to provide (subject to the terms set forth therein)
      a
      revolving credit facility to Parent and Seneca Snack;

     

    WHEREAS,
      the
      parties wish to add Signature Fruit as a Borrower and to further amend, restate
      and supersede the Original Credit Agreement in its entirety as more fully set
      forth herein and to have all existing Loans made and Letters of Credit issued
      hereafter governed by the terms and conditions of this Credit
      Agreement.

     

    NOW,
      THEREFORE,
      the
      Borrowers, the Lenders, the Administrative Agent, the Collateral Agent and
      the
      Issuing Bank agree that as of the Effective Date (as hereinafter defined),
      the
      Original Credit Agreement shall be amended, restated and superseded in its
      entirety as set forth herein to provide a revolving credit facility to the
      Borrowers on the terms and conditions set forth herein.

     

    
      	1.  	
              DEFINITIONS
                AND RULES OF
                INTERPRETATION.

            

    

     

    1.1.  Definitions.

     

    The
      following terms shall have the meanings set forth in this §1 or elsewhere in the
      provisions of this Credit Agreement referred to below:

     

    Accounts
      Receivable.
      All
      rights of the Borrowers to payment for goods sold in the ordinary course of
      business and all rights of the Borrowers to payment for services rendered in
      the
      ordinary course of business and all sums of money or other proceeds due thereon
      pursuant to transactions with account debtors, except for that portion of the
      sum of money or other proceeds due thereon that relate to sales, use or property
      taxes in conjunction with such transactions, as recorded on books of account
      in
      accordance with GAAP.

     

    Adjustment
      Date.
      The
      first day of the month immediately following the month in which a Compliance
      Certificate is to be delivered by the Borrowers pursuant to §8.4(c) in respect
      of a period of four (4) Fiscal Quarters (and not in respect of any twelve (12)
      month period ending on a date other than the last day of a Fiscal
      Quarter).

     

    Administrative
      Agent’s Fee.
      See
§5.1.

     

    Administrative
      Agent’s Office.
      The
      Administrative Agent’s office located at 200 Glastonbury Boulevard, Glastonbury,
      Connecticut 06033, or at such other location as the Administrative Agent may
      designate from time to time.

     

    Administrative
      Agent.
      Bank of
      America, N.A., acting as agent for the Lenders, and each other Person appointed
      as the successor Administrative Agent in accordance with §14.9.

     

    Administrative
      Agent’s Special Counsel.
      Bingham
      McCutchen LLP or such other counsel as may be approved by the
      Administrative Agent.

     

    Administrative
      Questionnaire.
      An
      Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    Adverse
      GMOI Event.
      The
      occurrence of any one or more of the following: (a) the giving of notice of
      termination by any party to the Alliance Agreement, (b) the automatic
      termination of the Alliance Agreement pursuant to any provision thereof, (c)
      the
      giving of notice by any party to the Alliance Agreement to another party to
      the
      Alliance Agreement that such other party is in material breach of its
      obligations under the Alliance Agreement, (d) the occurrence of any event
      referred to in Article XX of the Alliance Agreement (i.e. force majeure) which
      may result in a Material Adverse Effect, (e) the occurrence of an event of
      default under the Pillsbury Note, and (f) the commencement of bankruptcy or
      insolvency proceedings by or against any party to the Alliance
      Agreement.

     

    Affiliate.
      With
      respect to any Person, any Person that would be considered to be an affiliate
      of
      such Person under Rule 144(a) of the Rules and Regulations of the Securities
      and
      Exchange Commission, as in effect on the date hereof, if such other Person
      were
      issuing securities.

     

    Affiliate
      PACA Contract.
      See
§8.14.1.

     

    Agency
      Account Agreement.
      See
§8.13.1.

     

    Alliance
      Agreement.
      The
      First Amended and Restated Alliance Agreement among The Pillsbury Company,
      Grand
      Metropolitan Incorporated, and Parent dated as of December 8, 1994, as amended
      February 10, 1995 and as it has been amended by (i) that certain Amendment
      No. 1
      to First Amended and Restated Alliance Agreement, dated as of February 25,
      1997,
      (ii) that certain Amendment No. 2 to First Amended and Restated Alliance
      Agreement, dated as of July 1, 1998, and (iii) that certain Agreement to Amend
      First Amended and Restated Alliance Agreement, dated as of May 23, 2002 among
      The Pillsbury Company, General Mills, Inc., GMOI, and Parent, pursuant to which
      The Pillsbury Company assigned all of its rights and obligations under the
      First
      Amended and Restated Alliance Agreement to GMOI.

     

    Alliance
      Security Agreement.
      The
      Second Amended and Restated Alliance Security Agreement, dated or to be dated
      on
      or prior to the Effective Date, between the Parent, Seneca Snack and the
      Collateral Agent, in its capacity as collateral agent for the Lenders, the
      holders of the Hancock Notes, and in form and substance satisfactory to the
      Lenders and the Collateral Agent.

     

    Applicable
      Margin.
      For
      each period commencing on an Adjustment Date through the date immediately
      preceding the next Adjustment Date (each a “Rate
      Adjustment Period”),
      the
      Applicable Margin shall be the applicable margin set forth below with respect
      to
      the Fixed Charge Coverage Ratio, as determined for the Reference Period of
      the
      Parent ending on the fiscal quarter ended immediately prior to the applicable
      Rate Adjustment Period.

     

    
      	
              Level

            	
              Fixed
                Charge Coverage Ratio

            	
              Base
                Rate Loans

            	
              LIBOR
                Rate Loans

            	
              Letter
                of Credit Fees

            	
              Unused
                Fee

            
	
              I

            	
              Less
                than 1.30 to 1.00

            	
              0.25%

            	
              1.50%

            	
              1.50%

            	
              0.25%

            
	
              II

            	
              Greater
                than or equal to 1.30 to 1.00 and less than 2.00 to 1.00

            	
              0.00%

            	
              1.25%

            	
              1.25%

            	
              0.25%

            
	
              III

            	
              Greater
                than or equal to 2.00 to 1.00

            	
              0.00%

            	
              1.00%

            	
              1.00%

            	
              0.125%

            

    

    

    Notwithstanding
      the foregoing, (a) for the Loans outstanding and the Letter of Credit Fees
      and
      the Unused Fee payable during the period commencing on the Closing Date through
      the date immediately preceding the first Adjustment Date to occur after the
      fiscal quarter of the Parent ending March 31, 2007, the Applicable Margin shall
      be the Applicable Margin set forth in Level II above, (b) if the Borrowers
      fail
      to deliver any Compliance Certificate pursuant to §8.4(c) hereof then, for the
      period commencing on the next Adjustment Date to occur subsequent to such
      failure through the date immediately following the date on which such Compliance
      Certificate is delivered, the Applicable Margin shall be the highest Applicable
      Margin set forth above, and (c) if the financial statements for any period
      are
      determined to have been inaccurate or such financial statements are restated,
      and the Fixed Charge Coverage Ratio would have been lower for such period,
      and
      the interest rate accruing on the Loans would have been higher, based on the
      accurate or restated financial statements, then the Applicable Margin for
      periods affected thereby shall be retroactively re-determined based on such
      accurate or restated financial statements and the Borrowers shall pay on demand
      the additional interest that results from re-determination.

     

    Applicable
      Pension Legislation.
      At any
      time, any pension or retirement benefits legislation (be it national, federal,
      provincial, territorial or otherwise) then applicable to the Borrowers or any
      of
      their Subsidiaries.

     

    Approved
      Fund.
      Any
      Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a
      Lender or (c) an entity or an Affiliate of an entity that administers or manages
      a Lender.

     

    Arranger.
      Banc of
      America Securities LLC.

     

    Asset
      Sale.
      Any one
      or series of related transactions in which a Person or any Subsidiary of such
      Person conveys, sells, leases, licenses or otherwise disposes of, directly
      or
      indirectly, any of its properties, businesses or assets (including the sale
      or
      issuance of Capital Stock of any Subsidiary to a Person other than a Borrower)
      whether owned on the Effective Date or thereafter acquired.

     

    Assignment
      and Acceptance.
      An
      assignment and acceptance entered into by a Lender and an Eligible Assignee
      (with the consent of any party whose consent is required by §15.2), and accepted
      by the Administrative Agent, in substantially the form of Exhibit E
      or any
      other form approved by the Administrative Agent.

     

    Balance
      Sheet Date.
      March
      31, 2006.

     

    Bank
      of
      America Concentration Account. See §8.13.1.

     

    Base
      Rate.
      The
      variable annual rate of interest so designated from time to time by Bank of
      America, N.A. as its “prime rate” or “base rate”, such rate being a reference
      rate and not necessarily representing the lowest or best rate being charged
      to
      any customer. Changes in the Base Rate resulting from any changes in Bank of
      America, N.A.’s “prime rate” or “base rate” shall take place immediately without
      notice or demand of any kind.

     

    Base
      Rate Loans.
      Loans
      bearing interest calculated by reference to the Base Rate.

     

    Borrowers.
      As
      defined in the preamble hereto.

     

    Borrowing
      Base.
      At the
      relevant time of reference thereto, an amount determined by reference to the
      most recent Borrowing Base Report, as adjusted pursuant to the provisions
      below, which
      is
      equal to the sum of:

     

    (a)  up
      to 85%
      of Eligible Accounts Receivable of the Borrowers; plus

     

    (b)  85%
      of
      the net Orderly Liquidation Value of Eligible Inventory consisting of finished
      goods and can and can stock raw materials (other than Cold Storage Pears)(it
      being understood that the percentages used in calculating the Orderly
      Liquidation Value have been rounded-up for the period from the Effective Date
      through and up to the date of the Administrative Agent’s receipt of the next
      inventory appraisal after the Effective Date; thereafter, the percentages used
      in calculating the Orderly Liquidation Value will be rounded up to the nearest
      whole percentage); minus

     

    (c)  the
      Reserves.

     

    Any
      Accounts Receivable or inventory acquired in connection with a Permitted
      Acquisition shall not be included in the Borrowing Base until the Administrative
      Agent’s receipt of a field examination and appraisal of such assets. The
      Administrative Agent may, in its discretion and in a commercially reasonable
      manner, from time to time, upon five (5) days’ prior notice to the Parent, (x)
      reduce the lending formula with respect to Eligible Accounts Receivable, or
      (y)
      reduce the lending formulas with respect to Eligible Inventory. In determining
      whether to reduce the lending formulas, the Administrative Agent may consider
      events, conditions, contingencies or risks which are also considered in
      determining Eligible Accounts Receivable, Eligible Inventory or in establishing
      the Reserves. The
      Administrative Agent may also, in its discretion, from time to time, include
      in
      the Borrowing Base up to 85% of the net Orderly Liquidation Value of Eligible
      Inventory consisting of frozen vegetables (not including Green Giant frozen
      vegetables).

     

    Borrowing
      Base Report.
      A
      Borrowing Base Report signed by the chief financial officer or other senior
      officer satisfactory to the Administrative Agent of the Parent and in
      substantially the form of Exhibit A
      hereto.

     

    Business
      Day.
      Any day
      other than a Saturday or Sunday on which banking institutions in the State
      of
      Connecticut are open for the transaction of banking business and, in the case
      of
      LIBOR Rate Loans, which is also a LIBOR Business Day.

     

    California
      Producer’s Lien Law.
§55631,
      et seq. of the California Food and Agricultural Code.

     

    Capital
      Assets.
      Fixed
      assets, both tangible (such as land, buildings, fixtures, machinery and
      equipment) and intangible (such as patents, copyrights, trademarks, franchises
      and goodwill); provided
      that
      Capital Assets shall not include any item customarily charged directly to
      expense or depreciated over a useful life of twelve (12) months or less in
      accordance with GAAP.

     

    Capital
      Expenditure Reserve.
      The
      reserve
      that the Administrative Agent from time to time may establish in respect of
      Capital Expenditures made by the Parent or any of its Subsidiaries (it being
      understood that such reserve shall initially be an amount equal to
      $25,000,000).

     

    Capital
      Expenditures.
      With
      respect to any Person, amounts paid or Indebtedness incurred by such Person
      or
      any of its Subsidiaries in connection with (i) the purchase or lease of Capital
      Assets that would be required to be capitalized and shown on the balance sheet
      of such Person in accordance with GAAP or (ii) the lease of any assets by such
      Person or a Subsidiary of such Person as lessee under any Synthetic Lease to
      the
      extent that such assets would have been Capital Assets had the Synthetic Lease
      been treated for accounting purposes as a Capitalized Lease.

     

    Capitalized
      Leases.
      Leases
      under which a Borrower or a Subsidiary of a Borrower is the lessee or obligor,
      the discounted future rental payment obligations under which are required to
      be
      capitalized on the balance sheet of the lessee or obligor in accordance with
      GAAP.

     

    Capital
      Stock.
      Any and
      all shares, interests, participations or other equivalents (however designated)
      of capital stock of a corporation, any and all equivalent ownership interests
      in
      a Person (other than a corporation) and any and all warrants, rights or options
      to purchase any of the foregoing.

     

    Cash
      Equivalents.
      As to
      the Borrowers and their Subsidiaries, (a) securities issued or directly and
      fully guaranteed or insured by the United States of America and having a
      maturity of not more than six (6) months from the date of acquisition; (b)
      certificates of deposit, time deposits and eurodollar time deposits with
      maturities of six (6) months or less from the date of acquisition, bankers’
acceptances with maturities not exceeding six (6) months and overnight bank
      deposits, in each case, (i) with any Lenders or (ii) with any domestic
      commercial bank organized under the laws of the United States of America or
      any
      state thereof or a foreign subsidiary of such bank, in each case having a rating
      of not less than A or its equivalent by S&P or any successor and having
      capital and surplus in excess of $1,000,000,000; (c) repurchase obligations
      with
      a term of not more than seven (7) days for underlying securities of the types
      described in clauses (a) and (b) above; (d) any commercial paper or finance
      company paper issued by (i) any Lender or any holding company controlling any
      Lender or (ii) any other Person organized and existing under the laws of the
      United States of America or any state thereof whose debt securities are rated
      not less than “P-1” or “A-1” or their equivalents by Moody’s or S&P or their
      successors and (e) money-market mutual funds that invest solely in the
      investments set forth in any of items (a) through (d), inclusive,
      above.

     

    Cash
      Management Services.
      Any
      cash management services (including, without limitation, ACH and similar
      transactions, the maintenance of operating or deposit accounts and the provision
      of checking or overdraft facilities) from time to time made available to the
      Borrowers by any of the Lenders, the Administrative Agent, the Issuing Bank,
      or
      any of their Affiliates, individually or collectively.

     

    Casualty
      Event.
      With
      respect to any property (including any interest in property) of any Person
      or
      any of its Subsidiaries, any loss of, damage to, or condemnation or other taking
      of, such property for which any such Person or Subsidiary receives insurance
      proceeds, proceeds of a condemnation award or other compensation.

     

    CERCLA.
      See
§7.18(a).

     

    Change
      of Control.
      An
      event or series of events by which (a) any person or group of persons (within
      the meaning of Section 13 or 14 of the Securities Exchange Act of 1934) shall
      have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated
      by the Securities and Exchange Commission under said Act), directly or
      indirectly, of thirty percent (30%) or more of the combined voting power of
      the
      outstanding shares of Capital Stock of Parent, (b) during any period of twelve
      consecutive calendar months, individuals who were directors of Parent on the
      first day of such period (together with any new director whose election by
      the
      board of directors of Parent or whose nomination for election by the
      stockholders of Parent was approved by a vote of at least two-thirds of the
      directors then still in office who either were directors at the beginning of
      such period or whose election or nomination for election was previously so
      approved) shall cease to constitute a majority of the board of directors of
      Parent, or (c) the shareholders or directors of any Borrower shall have approved
      (i) any merger or consolidation in which such Borrower is not the surviving
      or
      continuing corporation or pursuant to which shares of such Borrower’s stock
      would be converted into cash, securities or other property, other than a merger
      of such Borrower in which shareholders immediately prior to the merger continue
      to be the beneficial owners of voting securities sufficient to maintain voting
      control of the surviving corporation immediately after the merger; (ii) any
      sale, lease, exchange or other transfer (in one transaction or a series of
      related transactions) of all or substantially all of the assets of such
      Borrower, or (iii) any plan of liquidation or dissolution of such
      Borrower.

     

    Closing
      Date.
      The
      first date on which the conditions set forth in §11 of the Original Credit
      Agreement were satisfied and any Loan was made or any Letter of Credit issued
      thereunder.

     

    Code.
      The
      Internal Revenue Code of 1986, as amended.

     

    Cold
      Storage Pears.
      Inventory of the Borrowers consisting of pears which are placed in cold storage
      for ripening.

     

    Collateral.
      All of
      the property, rights and interests of the Borrowers and their Subsidiaries
      that
      are or are intended to be subject to the Liens created by the Security
      Documents.

     

    Collateral
      Agent.
      Bank of
      America, N.A., acting as collateral agent in respect of the Collateral for
      the
      Lenders and the holders of the Hancock Notes, if any, and each other Person
      appointed as the successor Collateral Agent in accordance with the Intercreditor
      Agreement.

     

    Commitment.
      With
      respect to each Lender, the amount set forth on Schedule
      1
      hereto
      as the amount of such Lender’s commitment to make Loans to, and to participate
      in the issuance, extension and renewal of Letters of Credit for the account
      of,
      the Borrowers, as the same may be increased (pursuant to §2.13) or reduced from
      time to time; or if such commitment is terminated pursuant to the provisions
      hereof, zero.

     

    Commitment
      Percentage.
      With
      respect to each Lender, the percentage set forth on Schedule 1
      hereto
      as such Lender’s percentage of the aggregate Commitments of all of the
      Lenders.

     

    Compliance
      Certificate.
      See
§8.4(c).

     

    Consolidated
      or consolidated.
      With
      reference to any term defined herein, shall mean that term as applied to the
      accounts of the Borrowers and their Subsidiaries, consolidated in accordance
      with GAAP.

     

    Consolidated
      Net Income.
      With
      respect to any Person and any fiscal period, the consolidated net income (or
      deficit) of such Person and its Subsidiaries, after deduction of all expenses,
      taxes, and other proper charges, determined in accordance with GAAP,
      after
      eliminating therefrom all extraordinary nonrecurring items of
      income.

     

    Consolidated
      Total Interest Expense.
      With
      respect to any Person, for any period, the aggregate amount of interest required
      to be paid or accrued by such Person and its Subsidiaries during such period
      on
      all Indebtedness of such Person and its Subsidiaries outstanding during all
      or
      any part of such period, whether such interest was or is required to be
      reflected as an item of expense or capitalized, including payments consisting
      of
      interest in respect of any Capitalized Lease or any Synthetic Lease, and
      including the Unused Fee, Administrative Agent’s Fees and Letter of Credit Fees
      payable hereunder and all other agency fees, facility fees, balance deficiency
      fees and similar fees or expenses in connection with the borrowing of
      money.

     

    Contingent
      Obligation.
      With
      respect to any Person, any obligation of such Person guaranteeing or intended
      to
      guarantee any Indebtedness, leases, dividends or other obligations
      (“primary
      obligations”)
      of any
      other Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, including, without limitation, (a)
      the
      direct or indirect guaranty, endorsement (other than for collection or deposit
      in the ordinary course of business), co-making, discounting with recourse or
      sale with recourse by such Person of the obligation of a primary obligor,
      (b) the obligation to make take-or-pay or similar payments, if required,
      regardless of nonperformance by any other party or parties to an agreement,
      (c)
      any obligation of such Person, whether or not contingent, (i) to purchase any
      such primary obligation or any property constituting direct or indirect security
      therefor, (ii) to advance or supply funds (A) for the purchase or payment
      of any such primary obligation or (B) to maintain working capital or equity
      capital of the primary obligor or otherwise to maintain the net worth or
      solvency of the primary obligor, (iii) to purchase property, assets,
      securities or services primarily for the purpose of assuring the owner of any
      such primary obligation of the ability of the primary obligor to make payment
      of
      such primary obligation or (iv) otherwise to assure or hold harmless the
      holder of such primary obligation against loss in respect thereof; provided,
      however, that the term “Contingent
      Obligation”
shall
      not include any product warranties extended in the ordinary course of business.
      The amount of any Contingent Obligation shall be deemed to be an amount equal
      to
      the stated or determinable amount of the primary obligation with respect to
      which such Contingent Obligation is made (or, if less, the maximum amount of
      such primary obligation for which such Person may be liable pursuant to the
      terms of the instrument evidencing such Contingent Obligation) or, if not stated
      or determinable, the maximum reasonably anticipated liability with respect
      thereto (assuming such Person is required to perform thereunder), as determined
      by such Person in good faith.

     

    Conversion
      Request.
      A
      notice given by the Borrowers to the Administrative Agent of the Borrowers’
election to convert or continue a Loan in accordance with §2.7.

     

    Credit
      Agreement.
      This
      Amended and Restated Revolving Credit Agreement, including the Schedules and
      Exhibits hereto.

     

    Default.
      See
§13.1.

     

    Delinquent
      Lender.
      See
§14.5.3.

     

    Distribution.
      With
      respect to the Parent, the declaration or payment of any dividend on or in
      respect of any shares of any class of Capital Stock of the Parent, other than
      dividends payable solely in shares of common stock of the Parent; the purchase,
      redemption, defeasance, retirement or other acquisition of any shares of any
      class of Capital Stock of the Parent, directly or indirectly through a
      Subsidiary of the Parent or otherwise (including the setting apart of assets
      for
      a sinking or other analogous fund to be used for such purpose); the return
      of
      capital by the Parent to its equity holders as such; or any other distribution
      on or in respect of any shares of any class of Capital Stock of the
      Parent.

     

    Dollars
      or
$.
      Dollars
      in lawful currency of the United States of America.

     

    Domestic
      Lending Office.
      Initially, the office of each Lender designated as such in Schedule 1
      hereto;
      thereafter, such other office of such Lender, if any, located within the United
      States that will be making or maintaining Base Rate Loans.

     

    Drawdown
      Date.
      The
      date on which any Loan is made or is to be made, and the date on which any
      Loan
      is converted or continued in accordance with §2.7.

     

    EBITDA.
      For any
      period and for any Person, (a) the Consolidated Net Income of such Person and
      its Subsidiaries for such period, plus
      (b) to
      the extent deducted in calculating Consolidated Net Income, without duplication,
      (i) income tax expense of such Person and its Subsidiaries during such
      period, (ii) Consolidated Total Interest Expense of such Person and its
      Subsidiaries during such period, (iii) depreciation and amortization, and (iv)
      other non-recurring extraordinary or unusual non-cash charges for such period,
      minus
      (c) to
      the extent such items were added in calculating Consolidated Net Income of
      such
      Person and its Subsidiaries, (i) extraordinary or unusual gains of such Person
      and its Subsidiaries during such period, and (ii) gains of such Person and
      its
      Subsidiaries from any Casualty Event, Asset Sale (except for a sale of inventory
      in the ordinary course of business) or discontinued operation during such
      period.

     

    Effective
      Date.
      The
      first date on which the conditions set forth in §11 have been satisfied and any
      Loan is to be made or any Letter of Credit is to be issued
      hereunder.

     

    Eligible
      Accounts Receivable.
      (a) The
      aggregate face amount of the Accounts Receivable outstanding and owed to any
      Borrower as determined in accordance with GAAP consistently applied and as
      entered on the books and records of such Borrower in the ordinary course of
      the
      business operations of such Borrower, minus
      (b)
      without duplication, the aggregate amount of any returns, discounts, claims
      with
      respect to such accounts, credits, debit memoranda, customer deposits,
      chargebacks, contra accounts, allowances or excise taxes of any nature (whether
      issued, owing, granted or outstanding), and which satisfy each of the
      requirements set forth below:

     

    (i)  the
      subject goods have been sold and/or services have been rendered on an absolute
      sale basis and on an open account basis to an account debtor which is not a
      Governmental Authority or other Person such that the Assignment of Claims Act
      (or other similar legal or regulatory requirement) would apply to the pledge
      of
      receivables of such account debtor, unless the Assignment of Claims Act (or
      such
      other legal or regulatory requirement) has been complied with to the
      satisfaction of the Administrative Agent;

     

    (ii)  a
      written
      invoice has been sent to the applicable account debtor and bears an invoice
      date
      contemporaneous with or later than the date of sale of such goods or rendering
      of such service;

     

    (iii)  the
      Account Receivable does not arise from a sale to the account debtor on a
      bill-and-hold, guaranteed sale, sale-or-return, sale-on-assignment,
      sale-on-appraisal, consignment (except in respect of a final sale) or any other
      repurchase or return basis;

     

    (iv)  the
      Account Receivable is denominated in Dollars and is not evidenced by chattel
      paper or an instrument of any kind, and has not been reduced to
      judgment;

     

    (v)  the
      account debtor is creditworthy, not insolvent, and not the subject of any
      bankruptcy or insolvency proceedings of any kind;

     

    (vi)  the
      account debtor is an entity organized under the laws of one of the United
      States, whose main office is also located within the United States, or, if
      the
      account debtor is not such an entity organized and located within the United
      States, the account is supported by a letter of credit issued or confirmed
      by a
      bank acceptable to the Administrative Agent or by credit insurance, in each
      case
      in form and substance satisfactory to the Administrative Agent as to which
      letter of credit the Administrative Agent has a security interest perfected
      by
      control;

     

    (vii)  the
      Account Receivable is a valid and legally enforceable obligation of the account
      debtor thereunder, it is not subject to offset which has been asserted or
      exercised (other than discount for prompt payment or volume discounts given
      in
      the ordinary course of a Borrower’s business), or other defense on the part of
      such account debtor or to any claim on the part of such account debtor denying
      liability thereunder;

     

    (viii)  the
      Account Receivable is not subject to any Lien of any kind except for the Lien
      of
      the Collateral Agent and/or the Administrative Agent securing the Obligations
      and the Permitted Liens;

     

    (ix)  the
      Account Receivable has not remained outstanding in whole or in part for more
      than sixty (60) days after the due date (invoiced in accordance with the
      Borrowers’ usual and customary terms as in effect on the Effective Date) or for
      more than ninety (90) days from the date of invoice;

     

    (x)  the
      Account Receivable does not arise out of a transaction (direct or indirect)
      with
      an Affiliate of any Borrower;

     

    (xi)  the
      Account Receivable is not owing from an account debtor from whom fifty percent
      (50%) or more of the dollar amount of all accounts receivable are deemed
      ineligible under clause (ix) above;

     

    (xii)  the
      Account Receivable constitutes Collateral in which the Collateral Agent or
      the
      Administrative Agent has (A) a valid and perfected first priority Lien securing
      the Obligations with respect to Collateral comprised of the PACA Commodities
      subject only to Permitted Liens under §9.2.1(x) and (B) a valid and perfected
      first priority Lien securing the Obligations with respect to all other
      Collateral;

     

    (xiii)  such
      Borrower has not made an agreement with the account debtor to extend the time
      of
      payment of the then-outstanding Account Receivable;

     

    (xiv)  the
      account debtor is not located in Minnesota (or any other jurisdiction which
      adopts a statute or other requirement with respect to which any Person that
      obtains business from within such jurisdiction or is otherwise subject to such
      jurisdiction’s tax law must file a “Business Activity Report” (or other
      applicable report) or make any other required filings in a timely manner in
      order to enforce its claims in such jurisdiction’s courts or arising under such
      jurisdiction’s laws); provided that Accounts Receivable which would be Eligible
      Accounts Receivable but for the terms of this clause (xiv) shall nonetheless
      be
      deemed to be Eligible Accounts Receivable if the Borrower that owns such Account
      Receivable has filed a “Business Activity Report” (or other applicable report)
      with the applicable state office or is qualified to do business in such
      jurisdiction and, at the time the Account Receivable was created, was qualified
      to do business in such jurisdiction or had on file with the applicable state
      office a current “Business Activity Report” (or other applicable
      report);

     

    (xv)  except
      for Accounts Receivable arising from sales of inventory pursuant to the Alliance
      Agreement, the total unpaid Accounts Receivable owing from such account debtor
      do not exceed twenty percent (20%) of all Eligible Accounts
      Receivable;

     

    (xvi)  the
      Account Receivable does not consist of a progress billing or an excess billing;
      and

     

    (xvii)  the
      Account Receivable is not owed by an account debtor that has a pending PACA
      Claim being asserted against a Borrower or any Subsidiary of a Borrower at
      the
      time that the Eligible Accounts are being determined;

     

    provided however,
      that
      the Administrative Agent may in its discretion, (i) exclude particular accounts
      from the definition of Eligible Accounts Receivable and (ii) impose additional
      and/or more restrictive eligibility or valuation criteria than those set forth
      above as preconditions for any account to be deemed to be an Eligible Account
      hereunder.

     

    Eligible
      Assignee.
      Any of
      (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any
      other Person (other than a natural person) approved by (i) the Administrative
      Agent and (ii) unless a Default or an Event of Default has occurred and is
      continuing, the Parent (each such approval not to be unreasonably withheld
      or
      delayed).

     

    Eligible
      Inventory.
      Finished goods, raw materials and, with respect to work in process inventory,
      frozen vegetables, of any Borrower recorded on the books and records of such
      Borrower in the ordinary course of the business operations of such Borrower,
      which inventory satisfies each of the following requirements:

     

    (i)  it
      is in
      good and merchantable condition;

     

    (ii)  it
      meets
      all standards imposed by any government agency having regulatory authority
      over
      such goods and/or their use, manufacture and/or sale;

     

    (iii)  it
      has
      been
      physically received in the continental United States by a Borrower, is not
      in
      transit, and is located at (A)
      a
      facility owned by a Borrower not subject to any Lien, (B) a facility leased
      by a
      Borrower as to which the landlord of such facility shall have entered into
      a
      Landlord Warehouse Consent, (C) a warehouse facility as to which the
      warehouseman of such warehouse facility shall have entered into a Landlord
      Warehouse Consent, (D) a facility owned by a Borrower subject to a mortgage
      as
      to which the mortgagee of such Real Estate shall have entered into a Mortgagee
      Consent, or (E) other locations (including, without limitation, facilities
      owned
      by a Borrower and encumbered by a mortgage or similar Lien or facilities which
      are leased by a Borrower and as to any of which no Landlord Warehouse Consent,
      Mortgagee Consent or similar waiver or consent has been entered into, provided
      that the amount of inventory that may be Eligible Inventory under clause (E)
      of
      this clause (iii) will not at any time exceed five percent (5%) of all inventory
      of the Borrowers in the aggregate, subject to the maintenance of Reserves with
      respect thereto, it being understood, however, that the Administrative Agent
      anticipates, without limiting the generality of the Administrative Agent’s
      discretion with respect to the maintenance of additional Reserves, that the
      Reserves will include an amount equal to the amount of rent, mortgage payments,
      fees and equivalent amounts that are payable by the Borrowers for a period
      of 90
      days with respect to any location (1) referenced in clause (E) of this clause
      (iii) and (2) any other location for which the landlord, warehouseman or
      mortgagee with respect thereto has not waived or subordinated any rights it
      may
      have in the Collateral to the rights of the Collateral Agent and/or the
      Administrative Agent, as applicable;

     

    (iv)  it
      is
      currently held for sale and currently salable in the normal course of the
      business operations, or, as respects raw materials or work in process, is
      incorporated or is being held to be incorporated in customer products being
      produced or provided by any Borrower;

     

    (v)  it
      does
      not constitute returned (unless suitable for resale), excess, obsolete,
      unsalable, shopworn, seconds, used, damaged or unfit inventory;

     

    (vi)  it
      has
      not remained in the possession of such Borrower for more than twenty-four (24)
      months, or has not otherwise been determined by the Administrative Agent in
      its
      sole discretion to constitute slow-moving inventory;

     

    (vii)  it
      is not
      subject to a sale to an account debtor on a bill-and-hold, guaranteed sale,
      sale-or-return, sale-on-approval, consignment or any other repurchase or return
      basis;

     

    (viii)  it
      is not
      subject to any Lien of any kind except for the Lien of the Collateral Agent
      or
      the Administrative Agent securing the Obligations and the Permitted
      Liens;

     

    (ix)  it
      has
      not been sold to any Borrower;

     

    (x)  it
      is not
      being processed for or held for sale to GMOI or any Affiliate thereof, pursuant
      to the Alliance Agreement or otherwise;

     

    (xi)  it
      does
      not contain or bear any Proprietary Rights licensed to Signature Fruit by any
      Person, unless the Administrative Agent is satisfied that it may sell or
      otherwise dispose of such Inventory in accordance with the terms of the
      Signature Fruit Security Agreement without infringing the rights of the licensor
      of such Proprietary Rights or violating any contract with such licensor (and
      without payment of any royalties other than any royalties due with respect
      to
      the sale or disposition of such Inventory pursuant to the existing license
      agreement), and, as to which Signature Fruit has delivered to the Administrative
      Agent a consent or sublicense agreement from such licensor in form and substance
      acceptable to the Administrative Agent; and

     

    (xii)  it
      was
      not purchased from a Person that has a pending PACA Claim being asserted against
      a Borrower or any Subsidiary of a Borrower at the time that the Eligible
      Inventory is being determined;

     

    provided
      however,
      that
      the Administrative Agent may in its discretion, (A) exclude particular items
      of
      inventory from the definition of Eligible Inventory and (B) impose additional
      and/or more restrictive eligibility or valuation criteria than those set forth
      above as preconditions for any item of inventory to be deemed to be Eligible
      Inventory hereunder.

     

    Employee
      Benefit Plan.
      Any
      employee benefit plan within the meaning of §3(3) of ERISA maintained or
      contributed to by a Borrower or any ERISA Affiliate, other than a Guaranteed
      Pension Plan or a Multiemployer Plan.

     

    Environmental
      Laws.
      See
§7.18(a).

     

    EPA.
      See
§7.18(b).

     

    ERISA.
      The
      Employee Retirement Income Security Act of 1974, as amended.

     

    ERISA
      Affiliate.
      Any
      Person which is treated as a single employer with any Borrower under §414 of the
      Code.

     

    ERISA
      Reportable Event.
      A
      reportable event with respect to a Guaranteed Pension Plan within the meaning
      of
§4043 of ERISA and the regulations promulgated thereunder.

     

    Eurocurrency
      Reserve Rate.
      For any
      day with respect to a LIBOR Rate Loan, the maximum rate (expressed as a decimal)
      at which any bank subject thereto would be required to maintain reserves under
      Regulation D of the Board of Governors of the Federal Reserve System (or any
      successor or similar regulations relating to such reserve requirements) against
      “Eurocurrency
      Liabilities”
(as
      that term is used in Regulation D), if such liabilities were outstanding, which
      rate is presently zero (0). The Eurocurrency Reserve Rate shall be adjusted
      automatically on and as of the effective date of any change in the Eurocurrency
      Reserve Rate.

     

    Event
      of Default.
      See
§13.1.

     

    Excess
      Availability.
      As of
      any date of determination thereof, the difference between (a) the lesser of
      (i)
      the aggregate Total Commitments at such time and (ii) the Borrowing Base at
      such
      time and (b) the sum of the outstanding Loans, Maximum Drawing Amount and Unpaid
      Reimbursement Obligations at such time.

     

    Excess
      Availability Percentage.
      As of
      any date of determination thereof, the quotient (expressed as a percentage)
      of
      (a) the Excess Availability on such date, divided by (b) the lesser of (i)
      the
      Total Commitment on such date and (ii) the Borrowing Base on such
      date.

     

    Existing
      Letters of Credit.
      See
      §4.1.1(a).

     

    Existing
      Signature Credit Agreement.
      The
      Amended and Restated Credit Agreement, dated as of June 14, 2006, among
      Signature Fruit, the lenders party thereto and Bank of America, N.A., as
      administrative agent for such lenders.

     

    Existing
      Signature Lenders.
      Collectively, the lenders under the Existing Signature Credit
      Agreement.

     

    Fee
      Letter.
      The fee
      letter dated as of August 14, 2006
      among the Parent, the Administrative Agent and the Arranger.

     

    Fees.
      Collectively, the Unused Fee, the Letter of Credit Fees, the Administrative
      Agent’s Fee, and the Underwriting Fee.

     

    Fiscal
      Quarter.
      The
      fiscal quarter of the Parent.

     

    Financial
      Affiliate.
      A
      Subsidiary of the bank holding company controlling any Lender, which Subsidiary
      is engaging in any of the activities permitted by §4(e) of the Bank Holding
      Company Act of 1956 (12 U.S.C. §1843).

     

    Fixed
      Charge Coverage Condition.
      With
      respect to any acquisition or debt prepayment or purchase at any time, means
      the
      condition that (a) the Fixed Charge Coverage Ratio for the Reference Period
      most
      recently ended at such time (calculated, with respect to acquisitions, on a
      pro
      forma basis) (determined in a manner acceptable to the Administrative Agent)
      after giving effect to such acquisition or debt prepayment or purchase, would
      be
      greater than 1.10 to 1.00, and (b) the Fixed Charge Coverage Ratio for the
      next
      four (4) complete Fiscal Quarters after the consummation of such acquisition,
      as
      projected by the Borrowers in a manner acceptable to the Administrative Agent,
      after giving effect to such acquisition, would be greater than 1.10 to
      1.00.

     

    Fixed
      Charge Coverage Ratio.
      For any
      period, the ratio of (a) (i) EBITDA of the Parent and its Subsidiaries for
      such
      period, minus
      (ii) the
      amount by which Capital Expenditures of Parent and its Subsidiaries made during
      such period exceeded $25,000,000,
      minus
      (iii)
      the aggregate amount paid, or required to be paid, in cash in respect of the
      current portion of all income taxes for such period (but not less than zero),
      minus
      (iv) the
      aggregate amount of Distributions made by the Parent during such period, to
      (b)
      the sum for the Parent and its Subsidiaries (determined on a consolidated basis
      without duplication in accordance with GAAP), of (i) the aggregate amount of
      Consolidated Total Interest Expense of Parent and its Subsidiaries for such
      period, plus
      (ii) the
      aggregate amount of regularly scheduled payments of principal in respect of
      Indebtedness for borrowed money and other debt instruments (including the
      principal component of any payments in respect of Capital Lease Obligations
      and
      Synthetic Leases) paid or required to be paid by Parent and its Subsidiaries
      during such period.

     

    Food
      Security Act.
      The
      Food Security Act of 1985, as amended, and the rules and regulations promulgated
      thereunder from time to time in effect.

     

    Fund.
      Any
      Person (other than a natural person) that is (or will be) engaged in making,
      purchasing, holding or otherwise investing in commercial loans and similar
      extensions of credit in the ordinary course of its business.

     

    GAAP
      or generally accepted accounting principles.
      (a)
      When used in §10 or in the definition of Applicable Margin, whether
      directly or indirectly through reference to a capitalized term used therein,
      means (i) principles that are consistent with the principles promulgated or
      adopted by the Financial Accounting Standards Board and its predecessors, in
      effect for the fiscal year ended on the Balance Sheet Date, and (ii) to the
      extent consistent with such principles, the accounting practice of Parent
      reflected in its consolidated financial statements for the year ended on the
      Balance Sheet Date, and (b) when used in general, other than as provided above,
      means principles that are (i) consistent with the principles promulgated or
      adopted by the Financial Accounting Standards Board and its predecessors, as
      in
      effect from time to time, and (ii) consistently applied with past financial
      statements of Parent adopting the same principles, provided that in each case
      referred to in this definition of “GAAP” a certified public accountant would,
      insofar as the use of such accounting principles is pertinent, be in a position
      to deliver an unqualified opinion (other than a qualification regarding changes
      in GAAP) as to financial statements in which such principles have been properly
      applied.

     

    General
      Electric.
      General
      Electric Capital Corporation.

     

    GMOI.
      General
      Mills Operations, Inc.

     

    Governing
      Documents.
      With
      respect to any Person, its certificate or articles of incorporation, certificate
      of formation, or, as the case may be, certificate of limited partnership, its
      by-laws, operating agreement or, as the case may be, partnership agreement
      or
      other constitutive documents and all shareholder agreements, voting trusts
      and
      similar arrangements applicable to any of its Capital Stock.

     

    Governmental
      Authority.
      Any
      foreign, federal, state, regional, local, municipal or other government, or
      any
      department, commission, board, bureau, agency, public authority or
      instrumentality thereof, or any court or arbitrator.

     

    Guaranteed
      Pension Plan.
      Any
      employee pension benefit plan within the meaning of §3(2) of ERISA maintained or
      contributed to by a Borrower or any ERISA Affiliate the benefits of which are
      guaranteed on termination in full or in part by the PBGC pursuant to Title
      IV of
      ERISA, other than a Multiemployer Plan.

     

    Hancock.
      John
      Hancock Life Insurance Company.

     

    Hancock
      Amended and Restated Note Agreement.
      The
      Amended and Restated Note Agreement dated as of June 30, 2003 between the Parent
      and Hancock pursuant to which the Hancock Notes are currently outstanding,
      as
      such agreement is in effect on the Effective Date and without giving effect
      to
      any amendments thereof after the Effective Date except for amendments which
      are
      not in breach of the terms of the Intercreditor Agreement.

     

    Hancock
      Amended and Restated Note Agreement Documents.
      The
      Hancock Amended and Restated Note Agreement, the Hancock Notes and the other
      documents evidencing, securing or guarantying the Hancock Amended and Restated
      Note Agreement Loans, as in effect on the Effective Date and without giving
      effect to any amendments thereof after the Effective Date except for amendments
      which are not in breach of the terms of the Intercreditor
      Agreement.

     

    Hancock
      Amended and Restated Note Agreement Loans.
      The
      obligations and Indebtedness of any Borrower or Subsidiary of any Borrower
      under
      the Hancock Amended and Restated Note Agreement Documents.

     

    Hancock
      Collateral.
      As
      defined in the Intercreditor Agreement.

     

    Hancock
      Notes.
      Collectively, the Mortgage Notes due August 1, 2013 in the original aggregate
      principal amount of $75,000,000 pursuant to the Hancock Amended and Restated
      Note Agreement, with a current outstanding aggregate principal amount of
      $67,015,584.

     

    Hancock
      Signature Notes.
      Collectively, the 10% Senior Secured Notes due 2008 in the original aggregate
      principal amount of $63,776,738.63, and with a current aggregate principal
      amount of $45,483,000, outstanding pursuant to the Hancock Signature Note
      Agreement.

     

    Hancock
      Signature Note Agreement.
      The
      Note Purchase Agreement, dated as of March 23, 2001 between Signature Fruit
      and
      the purchasers of the notes thereunder pursuant to which the Hancock Signature
      Notes are currently outstanding, as such agreement is in effect on the Effective
      Date and without giving effect to any amendments thereof after the Effective
      Date except for amendments which are not in breach of the terms of the
      Intercreditor Agreement.

     

    Hancock
      Signature Note Agreement Documents.
      The
      Hancock Signature Note Agreement, the Hancock Signature Notes and the other
      documents evidencing, securing or guarantying the Hancock Signature Note
      Agreement Loans, as in effect on the Effective Date and without giving effect
      to
      any amendments thereof after the Effective Date except for amendments which
      are
      not in breach of the terms of the Intercreditor Agreement.

     

    Hancock
      Signature Note Agreement Loans.
      The
      obligations and Indebtedness of Parent and Signature Fruit under the Hancock
      Signature Note Agreement Documents.

     

    Hancock
      2003 Liquidity Loan Agreement.
      The
      Second Amended and Restated Credit Agreement dated as of March 13, 2003 by
      and
      among Signature Fruit, the lenders party thereto and John Hancock Life Insurance
      Company, as Agent.

     

    Hazardous
      Substances.
      See
§7.18(b).

     

    Hedging
      Agreement.
      Any
      interest rate swap agreement, interest rate cap agreement, interest rate collar
      agreement, interest rate futures contract, interest rate option agreement,
      interest rate exchange agreement, forward currency exchange agreement, forward
      rate currency agreement, commodity swap, commodity option, forward commodity
      contract or other similar agreement or arrangement to which any Borrower and
      any
      Lender or any Affiliate of a Lender is a party, designed to protect the
      applicable Borrower against fluctuations in interest rates, exchange rates
      or
      forward rates.

     

    Increase
      Effective Date.
      See
§2.13.4.

     

    Indebtedness.
      As to
      any Person and whether recourse is secured by or is otherwise available against
      all or only a portion of the assets of such Person and whether or not
      contingent, but without duplication:

     

    (a)  every
      obligation of such Person for money borrowed,

     

    (b)  every
      obligation of such Person evidenced by bonds, debentures, notes or other similar
      instruments, including obligations incurred in connection with the acquisition
      of property, assets or businesses,

     

    (c)  every
      reimbursement obligation of such Person with respect to letters of credit,
      bankers’ acceptances or similar facilities issued for the account of such
      Person,

     

    (d)  every
      obligation of such Person issued or assumed as the deferred purchase price
      of
      property or services (including securities repurchase agreements but excluding
      trade accounts payable or accrued liabilities arising in the ordinary course
      of
      business which are not overdue or which are being contested in good
      faith),

     

    (e)  every
      obligation of such Person under any Capitalized Lease,

     

    (f)  every
      obligation of such Person under any Synthetic Lease,

     

    (g)  every
      obligation of such Person in respect of sales of (i) accounts or general
      intangibles for money due or to become due, (ii) chattel paper, instruments
      or
      documents creating or evidencing a right to payment of money or (iii) other
      receivables (collectively, “receivables”),
      whether pursuant to a purchase facility or otherwise, other than in connection
      with the disposition of the business operations of such Person relating thereto
      or a disposition of defaulted receivables for collection and not as a financing
      arrangement, and together with any obligation of such Person to pay any
      discount, interest, fees, indemnities, penalties, recourse, expenses or other
      amounts in connection therewith,

     

    (h)  every
      obligation of such Person (an “equity
      related purchase obligation”)
      to
      purchase, redeem, retire or otherwise acquire for value any shares of Capital
      Stock issued by such Person or any rights measured by the value of such Capital
      Stock,

     

    (i)  every
      obligation of such Person under any forward contract, futures contract, swap,
      option or other financing agreement or arrangement (including, without
      limitation, caps, floors, collars and similar agreements), the value of which
      is
      dependent upon interest rates, currency exchange rates, commodities or other
      indices (a “derivative
      contract”),
      including without limitation the Hedging Agreements,

     

    (j)  every
      obligation in respect of Indebtedness of any other entity (including any
      partnership in which such Person is a general partner) to the extent that such
      Person is liable therefor as a result of such Person’s ownership interest in or
      other relationship with such entity, except to the extent that the terms of
      such
      Indebtedness provide that such Person is not liable therefor and such terms
      are
      enforceable under applicable law, and

     

    (k)  every
      Contingent Obligation with respect to Indebtedness of any other
      Person.

     

    The
      “amount” or “principal amount” of any Indebtedness at any time of determination
      represented by (u) any Indebtedness, issued at a price that is less than the
      principal amount at maturity thereof, shall be the amount of the liability
      in
      respect thereof determined in accordance with GAAP, (v) any Capitalized Lease
      shall be the principal component of the aggregate of the rentals obligation
      under such Capitalized Lease payable over the term thereof that is not subject
      to termination by the lessee, (w) any sale of receivables shall be the amount
      of
      unrecovered capital or principal investment of the purchaser (other than the
      Borrowers) thereof, excluding amounts representative of yield or interest earned
      on such investment, (x) any Synthetic Lease shall be the stipulated loss value,
      termination value or other equivalent amount, (y) any derivative contract shall
      be the maximum amount of any termination or loss payment required to be paid
      by
      such Person if such derivative contract were, at the time of determination,
      to
      be terminated by reason of any event of default or early termination event
      thereunder, whether or not such event of default or early termination event
      has
      in fact occurred, and (z) any equity related purchase obligation shall be the
      maximum fixed redemption or purchase price thereof inclusive of any accrued
      and
      unpaid dividends to be comprised in such redemption or purchase
      price.

     

    Ineligible
      Securities.
      Securities which may not be underwritten or dealt in by member banks of the
      Federal Reserve System under Section 16 of the Banking Act of 1933 (12 U.S.C.
      §24, Seventh), as amended.

     

    Intercreditor
      Agreement.
      The
      Amended and Restated Intercreditor Agreement, dated on or prior to the Effective
      Date, among Hancock, individually and as a collateral agent, the Collateral
      Agent, the Administrative Agent and the Lenders and as a acknowledged and agreed
      to by Parent, Seneca Snack, Signature Fruit and Marion, as amended from time
      to
      time.

     

    Interest
      Payment Date.
      (a) As
      to any Base Rate Loan, the first day of each calendar month with respect to
      interest accrued during the prior calendar month, including, without limitation,
      the calendar month which includes the Drawdown Date of such Base Rate Loan;
      and
      (b) as to any LIBOR Rate Loan, (i) the first day of each calendar month with
      respect to interest accrued during the prior calendar month, and (ii) the last
      day of such Interest Period.

     

    Interest
      Period.
      With
      respect to each Loan, (a) initially, the period commencing on the Drawdown
      Date
      of such Loan and ending on the last day of one of the periods set forth below,
      as selected by a Borrower in a Loan Request or as otherwise required by the
      terms of this Credit Agreement (i) for any Base Rate Loan, the last day of
      each
      calendar month; (ii) for any LIBOR Rate Loan other than a Swing Line Loan,
      1, 2,
      3, or 6 months; and (iii) for any Swing Line Loan, 1 day; and (b) thereafter,
      each period commencing on the last day of the next preceding Interest Period
      applicable to such Loan and ending on the last day of one of the periods set
      forth above, as selected by a Borrower in a Conversion Request (except that
      no
      Conversion Request shall be required for a Swing Line Loan, which shall at
      all
      times that LIBOR Rate Loans are available hereunder be a LIBOR Rate Loan with
      a
      1 day Interest Period and which shall at all other times be Base Rate Loans);
      provided
      that all
      of the foregoing provisions relating to Interest Periods are subject to the
      following:

     

    (A)  if
      any
      Interest Period with respect to a LIBOR Rate Loan would otherwise end on a
      day
      that is not a LIBOR Business Day, that Interest Period shall be extended to
      the
      next succeeding LIBOR Business Day unless the result of such extension would
      be
      to carry such Interest Period into another calendar month, in which event such
      Interest Period shall end on the immediately preceding LIBOR Business
      Day;

     

    (B)  if
      any
      Interest Period with respect to a Base Rate Loan would end on a day that is
      not
      a Business Day, that Interest Period shall end on the next succeeding Business
      Day;

     

    (C)  if
      a
      Borrower shall fail to give notice for any Loan (other than a Swing Line Loan)
      as provided in §2.7, such Borrower shall be deemed to have requested a
      conversion of the affected LIBOR Rate Loan to a Base Rate Loan and the
      continuance of all Base Rate Loans as Base Rate Loans on the last day of the
      then current Interest Period with respect thereto;

     

    (D)  any
      Interest Period relating to any LIBOR Rate Loan that begins on the last LIBOR
      Business Day of a calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest Period)
      shall end on the last LIBOR Business Day of a calendar month; and

     

    (E)  any
      Interest Period that would otherwise extend beyond the Maturity Date shall
      end
      on the Maturity Date.

     

    Interim
      Concentration Account.
      See
§8.13.1.

     

    Investments.
      All
      expenditures made and all liabilities incurred (contingently or otherwise)
      for
      the acquisition of stock or Indebtedness of, or for loans, advances, capital
      contributions or transfers of property to, or in respect of any guaranties
      (or
      other commitments as described under Indebtedness), or obligations of, any
      Person. In determining the aggregate amount of Investments outstanding at any
      particular time: (a) the amount of any Investment represented by a guaranty
      shall be taken at not less than the principal amount of the obligations
      guaranteed and still outstanding; (b) there shall be included as an Investment
      all interest accrued with respect to Indebtedness constituting an Investment
      unless and until such interest is paid; (c) there shall be deducted in respect
      of each such Investment any amount received as a return of capital (but only
      by
      repurchase, redemption, retirement, repayment, liquidating dividend or
      liquidating distribution); (d) there shall not be deducted in respect of any
      Investment any amounts received as earnings on such Investment, whether as
      dividends, interest or otherwise, except that accrued interest included as
      provided in the foregoing clause (b) may be deducted when paid; and (e) there
      shall not be deducted from the aggregate amount of Investments any decrease
      in
      the value thereof.

     

    Issuing
      Bank.
      Bank of
      America, N.A.

     

    Landlord
      Warehouse Consent.
      With
      respect to any Real Estate and any assets of a Borrower which are located at
      Real Estate leased by a Borrower or in the possession of a warehouseman, a
      letter, certificate or other instrument in writing from the lessor or
      warehouseman, as applicable, on a form approved by the Administrative Agent
      or
      otherwise in form and substance acceptable to the Administrative
      Agent.

     

    LC
      Guaranty.
      A
      guaranty or indemnity in form and substance satisfactory to the Administrative
      Agent and the Issuing Bank pursuant to which the Administrative Agent shall
      guarantee the payment or performance by the Borrowers of their reimbursement
      obligations in respect of Letters of Credit.

     

    Lender
      Affiliate.
      With
      respect to any Lender, (a) an Affiliate of such Lender or (b) any Approved
      Fund.

     

    Lender
      Payment Amounts.
      With
      respect to any (a) amounts owed by any Lender in respect of advances made by
      the
      Administrative Agent pursuant to §2.8.2, or (b) Settlement Amounts owed by any
      Lender pursuant to §2.10.2, the product of (i) the average computed for the
      period referred to in clause (iii) below, of the weighted average interest
      rate
      paid by the Administrative Agent for federal funds acquired by the
      Administrative Agent during each day included in such period, times
      (ii) (1)
      with respect to the determination of amounts owed by any Lender pursuant to
      §2.8.2, the amount of such Lender’s Commitment Percentage of such Loans or (2)
      with respect to the determination of amounts owed by any Lender pursuant to
      §2.10.2, the Settlement Amount, as applicable, times
      (iii) a
      fraction, the numerator of which is the number of days that elapse from and
      including the applicable Drawdown Date or Settlement Date, as the case may
      be,
      to the date on which the amount of such Lender’s Commitment Percentage of such
      Loans (with respect to the determination of amounts owed by any Lender pursuant
      to §2.8.2) or Settlement Amount (with respect to the determination of amounts
      owed by any Lender pursuant to §2.10.2), as applicable, shall become immediately
      available to the Administrative Agent, and the denominator of which is
      360.

     

    Lenders.
      Bank of
      America, N.A. and the other lending institutions listed on Schedule 1
      hereto
      and any other Person who becomes an assignee of any rights and obligations
      of a
      Lender pursuant to §15, and, unless the context otherwise requires, the Issuing
      Bank and the Swing Line Lender.

     

    Letter
      of Credit.
      See
§4.1.1.

     

    Letter
      of Credit Application.
      See
§4.1.1.

     

    Letter
      of Credit Fee.
      See
§4.6.

     

    Letter
      of Credit Participation.
      See
§4.1.4.

     

    LIBOR
      Business Day.
      Any day
      other than a Saturday or Sunday on which commercial banks are open for
      international business (including dealings in Dollar deposits) in London or
      such
      other eurodollar interbank market as may be selected by the Administrative
      Agent
      in its sole discretion acting in good faith.

     

    LIBOR
      Lending Office.
      Initially, the office of each Lender designated as such in Schedule 1
      hereto;
      thereafter, such other office of such Lender, if any, that shall be making
      or
      maintaining LIBOR Rate Loans.

     

    LIBOR Rate.
      For any
      Interest Period with respect to a LIBOR Rate Loan, the rate of interest equal
      to
      (i) the rate determined by the Administrative Agent at which Dollar deposits
      for
      such Interest Period are offered based on information presented on Page 3750
      of
      the Dow Jones Market Service (formerly known as the Telerate Service) as of
      11:00 a.m. London time on the second LIBOR Business Day prior to the first
      day
      of such Interest Period, divided by (ii) a number equal to 1.00 minus
      the
      Eurocurrency Reserve Rate. If the rate described above does not appear on the
      Dow Jones Market Service on any applicable interest determination date, the
      LIBOR Rate shall be the rate (rounded upward, if necessary, to the nearest
      1/32nd
      of a
      percentage point), determined on the basis of the offered rates for deposits
      in
      Dollars for a period of time comparable to such LIBOR Rate Loan which are
      offered by four major banks in the London interbank market at approximately
      11:00 a.m. London time, on the second LIBOR Business Day prior to the first
      day
      of such Interest Period as selected by the Administrative Agent. The principal
      London office of each of the four major London banks will be requested to
      provide a quotation of its Dollar deposit offered rate. If at least two such
      quotations are provided, the rate for that date will be the arithmetic mean
      of
      the quotations. If fewer than two quotations are provided as requested, the
      rate
      for that date will be determined on the basis of the rates quoted for loans
      in
      Dollars to leading European banks for a period of time comparable to such
      Interest Period offered by major banks in New York City at approximately 11:00
      a.m. New York City time, on the second LIBOR Business Day prior to the first
      day
      of such Interest Period. In the event that the Administrative Agent is unable
      to
      obtain any such quotation as provided above, it will be considered that the
      LIBOR Rate pursuant to a LIBOR Rate Loan cannot be determined.

     

    LIBOR
      Rate Loans.
      Loans
      bearing interest calculated by reference to the LIBOR Rate.

     

    Lien.
      Any
      mortgage, deed of trust, security interest, pledge, hypothecation, assignment,
      attachment, deposit arrangement, encumbrance, lien (statutory, judgment or
      otherwise), or other security agreement or preferential arrangement of any
      kind
      or nature whatsoever (including any conditional sale or other title retention
      agreement, any Capitalized Lease, any Synthetic Lease, statutory trust, any
      financing lease involving substantially the same economic effect as any of
      the
      foregoing and the filing of any financing statement under the UCC or comparable
      law of any jurisdiction).

     

    Loan
      Documents.
      This
      Credit Agreement, the Revolving Credit Notes, the Swing Line Note, the Fee
      Letter, the Letter of Credit Applications, the Letters of Credit,
      the
      LC
      Guaranty, the Intercreditor Agreement, the Marion Guaranty and the Security
      Documents and any documents, agreements and/or instruments executed and/or
      delivered in connection therewith, excluding any Hedging Agreement, in each
      case
      as amended, reaffirmed, modified and/or supplemented from time to
      time.

     

    Loan
      Request.
      See
§2.6.

     

    Loans.
      Revolving credit loans made or to be made by the Lenders to the Borrowers
      pursuant to §2, including the Swing Line Loans.

     

    Local
      Account.
      See
§8.13.1.

     

    Marion.
      Marion
      Foods, Inc., a New York corporation, a wholly owned Subsidiary of
      Parent.

     

    Marion
      Guaranty.
      The
      Amended and Restated Guaranty, dated on or prior to the Effective Date, executed
      and delivered by Marion in favor of the Administrative Agent, for the benefit
      of
      the Lenders, in form and substance satisfactory to the Lenders and the
      Administrative Agent.

     

    Master
      Reimbursement Agreement.
      The
      Master Reimbursement Agreement dated as of September 15, 1997 between the Parent
      and General Electric providing for General Electric to cause the issuance of
      certain letters of credit to secure the payment of principal and interest on
      various bonds in an amount up to $23,500,000, as such Master Reimbursement
      Agreement is in effect on the Effective Date and without giving effect to any
      amendments thereof after the Effective Date.

     

    Material
      Adverse Effect.
      With
      respect to any event or occurrence of whatever nature (including any adverse
      determination in any litigation, arbitration or governmental investigation
      or
      proceeding):

     

    (a)  a
      material adverse effect on the business, properties, prospects, condition
      (financial or otherwise), assets, operations or income of any Borrower
      individually or the Borrowers taken as a whole;

     

    (b)  an
      adverse effect on the ability of any Borrower to perform any of its respective
      Obligations under any of the Loan Documents to which it is a party;
      or

     

    (c)  any
      impairment of the validity, binding effect or enforceability of this Credit
      Agreement or any of the other Loan Documents, any impairment of the rights,
      remedies or benefits available to the Administrative Agent, the Collateral
      Agent
      or any Lender under any Loan Document or any impairment of the attachment,
      perfection or priority of any Lien of the Collateral Agent and/or the
      Administrative Agent under the Security Documents.

     

    In
      determining whether any individual event could reasonably be expected to result
      in a Material Adverse Effect, notwithstanding that such event does not of itself
      have such effect, a Material Adverse Effect shall be deemed to have occurred
      if
      the cumulative effect of such event and all other then existing events could
      reasonably be expected to result in a Material Adverse Effect.

     

    Maturity
      Date.
      August
      18, 2011.

     

    Maximum
      Drawing Amount.
      The
      maximum aggregate amount that the beneficiaries may at any time draw under
      outstanding Letters of Credit (determined as if all conditions to such drawing
      have been satisfied), as such aggregate amount may be reduced from time to
      time
      pursuant to the terms of the Letters of Credit.

     

    Moody’s.
      Moody’s
      Investors Services, Inc.

     

    Mortgagee
      Consent.
      With
      respect to any Real Estate and any assets of a Borrower which are located at
      Real Estate owned by a Borrower and subject to a mortgage, a letter, certificate
      or other instrument in writing from the mortgagee on a form approved by the
      Administrative Agent or otherwise in form and substance acceptable to the
      Administrative Agent.

     

    Multiemployer
      Plan.
      Any
      multiemployer plan within the meaning of §3(37) of ERISA maintained or
      contributed to by any Borrower or any ERISA Affiliate.

     

    Net
      Cash Sale Proceeds.
      (a)
      With respect to any Asset Sale, the net cash proceeds received by a Person
      less
      the sum of (i) all reasonable out-of-pocket fees, commissions and other
      reasonable and customary direct expenses actually incurred in connection with
      such Asset Sale, including the amount of any transfer or documentary taxes
      required to be paid by such Person in connection with such Asset Sale, and
      (ii)
      the aggregate amount of cash so received by such Person which is required to
      be
      used to retire (in whole or in part) any Indebtedness (other than under the
      Loan
      Documents) of such Person permitted by this Credit Agreement that was secured
      by
      a lien or security interest permitted by this Credit Agreement having priority
      over the liens and security interests (if any) of the Collateral Agent and/or
      the Administrative Agent (for the benefit of the Collateral Agent, the
      Administrative and the Lenders) with respect to such assets transferred and
      which is required to be repaid in whole or in part (which repayment, in the
      case
      of any other revolving credit arrangement or multiple advance arrangement,
      reduces the commitment thereunder) in connection with such Asset Sale, and
      (b)
      with respect to any sale of Capital Stock, the aggregate amount of all cash
      proceeds received by or for the benefit of any Borrower or Subsidiary of a
      Borrower therefrom less (i) all reasonable legal, underwriting and similar
      fees
      and expenses incurred in connection therewith, and (ii) the aggregate amount
      of
      cash so received by such Person which is required by the terms of the Hancock
      Signature Note Agreement Loans and/or the Silgan Payable to
      be
      used, and which is in fact used, to prepay (in whole or in part) the Hancock
      Signature Note Agreement Loans and/or the Silgan Payable,
      provided
      that this clause (b) shall in any event not exceed the amount, if any, of the
      Hancock Signature Note Agreement Loans and the Silgan Payable that
      is,
      pursuant to §9.16 hereof, permitted to be prepaid.

     

    Non-U.S.
      Lender.
      See
§5.2.3.

     

    Notes.
      The
      Revolving Credit Notes and the Swing Line Note.

     

    Obligations.
      All
      indebtedness, obligations and liabilities of any of the Borrowers to any of
      the
      Lenders, the Issuing Bank, the Administrative Agent and the Collateral Agent,
      individually or collectively, existing on the date of this Credit Agreement
      or
      arising thereafter, direct or indirect, joint or several, absolute or
      contingent, matured or unmatured, liquidated or unliquidated, secured or
      unsecured, arising by contract, operation of law or otherwise, arising or
      incurred under this Credit Agreement or any of the other Loan Documents or
      any
      Hedging Agreement or in respect of any of the Loans made or Reimbursement
      Obligations incurred or any Cash Management Services, any Note, Letter of Credit
      Application, Letter of Credit or other instruments at any time evidencing any
      thereof.

     

    Operating
      Account.
      See
§2.6.2.

     

    Orderly
      Liquidation Value.
      With
      respect to any inventory, the net appraised orderly liquidation value of such
      inventory, as determined from time to time by the Administrative Agent by
      reference to the most recent appraisal of the inventory of the Borrowers
      performed by an appraisal firm acceptable to the Administrative
      Agent.

     

    Original
      Lenders.
      The
“Lenders”, as defined in the Original Credit Agreement.

     

    Original
      Credit Agreement.
      As
      defined in the introductory paragraphs hereto.

     

    Outstanding.
      With
      respect to the Loans, the aggregate unpaid principal thereof as of any date
      of
      determination.

     

    PACA.
      The
      Perishable Agricultural Commodities Act (7 USC §§ 499a et seq.) as amended, and
      the rules and regulations promulgated thereunder from time to time in
      effect.

     

    PACA
      Claim.
      With
      respect to any Person, any right or claim of or for the benefit of such Person
      under PACA or any similar law enacted by any other state or jurisdiction
      including, without limitation, any right, title or interest in or to any claims,
      remedies or trust assets or other benefits or any proceeds thereof.

     

    PACA
      Commodities.
      See
§8.14.1.

     

    PACA
      Conforming Contract.
      A
      contract for the purchase of PACA Commodities that complies with each of the
      provisions of clauses (i) and (ii) of §8.14.2 (regardless of whether such
      contract is an Affiliate PACA Contract).

     

    Parent.
      As
      defined in the preamble hereto.

     

    Participant.
      See
§15.4.

     

    PBGC.
      The
      Pension Benefit Guaranty Corporation created by §4002 of ERISA and any successor
      entity or entities having similar responsibilities.

     

    Perfection
      Certificates.
      The
      Perfection Certificates as defined in the Revolving Lender Security Agreement
      and the Signature Fruit Security Agreement.

     

    Permitted
      Acquisition.
      The
      acquisition of any assets (out of the ordinary course of business) or any
      Person, business or division by any Borrower, provided
      that
      each of the following conditions is met with respect to any such
      acquisition:

     

    (a)  immediately
      prior to and after giving effect to such acquisition, no Default or Event of
      Default shall then exist, and immediately after giving effect to such
      acquisition, the Fixed Charge Coverage Condition shall have been met, and such
      Borrower shall have delivered to the Administrative Agent a statement certified
      by the principal financial or accounting officer of the Parent to the effect
      that (i) immediately prior to and after giving effect to such acquisition,
      (x)
      no Default or Event of Default exists, which statement shall be accompanied
      by
      computations, in reasonable detail, evidencing on a pro forma basis (determined
      in a manner acceptable to the Administrative Agent) (A) compliance with the
      Fixed Charge Coverage Condition with respect to such acquisition, and (B) if
      the
      financial covenant in §10.1 is then in effect pursuant to the terms thereof,
      compliance (on a consolidated basis) with the financial covenant contained
      in
§10.1 on a pro forma basis (determined in a manner acceptable to the
      Administrative Agent) after giving effect to such acquisition and (y) the Excess
      Availability Percentage is greater than 20% and (ii) as projected by the Parent
      for the twelve (12) month period immediately following such acquisition, the
      Excess Availability Percentage during such twelve (12) months will at all times
      exceed 20%, which statement shall be accompanied by computations, in reasonable
      detail, setting forth the basis for such projection, which projection shall
      be
      acceptable to the Administrative Agent in its sole but reasonable
      discretion;

     

    (b)  the
      consideration for such acquisition shall not include the assumption of
      Indebtedness by such Borrower, other than Indebtedness (i) in existence prior
      to
      the date of such acquisition, (ii) which was not incurred in connection with
      or
      in contemplation of such acquisition, (iii) which is permitted pursuant to
§9.1,
      and (iv) which is otherwise on terms and conditions satisfactory to the
      Administrative Agent;

     

    (c)  if
      such
      acquisition is an acquisition of a Person, such acquisition shall have been
      approved by the board of directors (or other managing board) and shareholders
      or
      members, if applicable, of the Person so acquired or of the holders of the
      Capital Stock of the Person so acquired;

     

    (d)  not
      less
      than ten (10) Business Days prior to the closing of such acquisition, such
      Borrower shall notify the Administrative Agent of the terms thereof and shall
      provide to the Administrative Agent such information and documents as may be
      deemed by the Administrative Agent to be necessary in order for the
      Administrative Agent to determine if the acquisition is a Permitted
      Acquisition;

     

    (e)  if
      such
      acquisition is an acquisition of a Person, a business or a division (or a group
      of assets that is the equivalent of a business unit or division), such acquired
      Person, business or division shall have had EBITDA for the period of the four
      (4) consecutive fiscal quarters of the acquired Person, business or division
      most recently ended of not less than $1.00, which EBITDA, if not determined
      in
      the ordinary course of business by the acquired Person or the Person for which
      such business or division was acquired, shall be determined on a pro forma
      basis
      in a manner acceptable to the Administrative Agent; and

     

    (f)  either
      (i) such acquisition is the acquisition of assets only for use in the same
      line
      of business as (or a line of business substantially similar to) the line of
      business of the Borrowers and in which assets which would be deemed Collateral
      pursuant to the Security Documents and the Collateral Agent or the
      Administrative Agent, as applicable, shall concurrently with the closing of
      the
      acquisition be granted, for the benefit of the Lenders, the Administrative
      Agent
      and the Collateral Agent, a perfected, first priority security interest (subject
      only to Permitted Liens) or (ii) such acquisition involves the purchase of
      the
      Capital Stock of a Person and each of the following conditions is
      met:

     

    (A)  such
      acquisition is the acquisition of one hundred percent (100%) of each of the
      Capital Stock and Voting Stock of such Person, and the structure of such
      acquisition is acceptable to the Administrative Agent and;

     

    (B)  such
      Person is in the same line of business (or a substantially similar line of
      business) as the Borrowers; and

     

    (C)  contemporaneously
      with the occurrence of such acquisition, such Borrower shall (I) pledge the
      Capital Stock of such Person to the Collateral Agent, for the benefit of the
      Lenders and the Collateral Agent, pursuant to the Pledge Agreement and shall
      execute such amendment to the Pledge Agreement as requested by the Collateral
      Agent to effectuate such pledge, (II) cause such acquired Person to guaranty
      all
      of the Obligations hereunder pursuant to a guaranty in form and substance
      reasonably satisfactory to the Administrative Agent, which such guaranty shall
      be a Loan Document hereunder, (III) cause such acquired Person to take all
      steps
      as may be necessary or advisable in the reasonable opinion of the Collateral
      Agent to grant to the Collateral Agent or the Administrative Agent, as
      applicable, for the benefit of the Lenders, the Administrative Agent and the
      Collateral Agent, a first priority, perfected security interest in all of its
      assets which would be deemed Collateral pursuant to the Security Documents
      (except that there may exist liens thereon permitted by §9.2 hereof and there
      may exist a prior lien on those assets which secure Indebtedness assumed by
      such
      Borrower in connection with such Permitted Acquisition, to the extent permitted
      under §9.1 hereof) as collateral security for such guaranty, pursuant to
      security documents, mortgages, pledges and other documents in form and substance
      reasonably satisfactory to the Collateral Agent or the Administrative Agent,
      as
      applicable, each of which documents shall be Security Documents hereunder,
      and
      (IV) cause such Person to deliver to the Lenders and the Administrative Agent
      (aa) evidence of proper or similar corporate authorization and (bb) legal
      opinions with respect to each of the matters and documents set forth in this
      clause (C), in each case, in form and substance reasonably satisfactory to
      the
      Administrative Agent and the Required Lenders.

     

    Permitted
      Liens.
      Liens
      permitted by §9.2.

     

    Person.
      Any
      individual, corporation, limited liability company, partnership, limited
      liability partnership, trust, other unincorporated association, business, or
      other legal entity, and any Governmental Authority.

     

    Pillsbury
      Note.
      The 8%
      Secured Nonrecourse Subordinated Promissory Note dated February 1, 1995 in
      the
      original principal amount of $73,025,000 executed by Parent and payable to
      GMOI,
      as assignee of The Pillsbury Company, as amended by the Allonge executed and
      affixed thereto on September 26, 1997, by the Second Allonge executed and
      affixed thereto on March 31, 1999, by the Third Allonge executed and affixed
      thereto dated as of the Closing Date, by the Fourth Allonge executed and affixed
      thereto dated March 29, 2006 and by the Fifth Allonge executed and affixed
      thereto dated as of the Effective Date.

     

    Pledge
      Agreement.
      The
      Amended and Restated Pledge Agreement, dated or to be dated on or prior to
      the
      Effective Date, between Parent, the Collateral Agent and each other Borrower
      that has Subsidiaries, in form and substance satisfactory to the Lenders and
      the
      Collateral Agent.

     

    Proprietary
      Rights.
      All
      of any
      Signature Fruit’s or any of its Subsidiaries now owned and hereafter arising or
      acquired: licenses, franchises, permits, patents, patent rights, copyrights,
      works which are the subject matter of copyrights, trademarks, service marks,
      trade names, trade styles, patent, trademark and service mark applications,
      and
      all licenses and rights related to any of the foregoing, including those
      patents, trademarks, service marks, trade names and copyrights set forth on
      Schedule 7.6
      hereto,
      and all other rights under any of the foregoing, all extensions, renewals,
      reissues, divisions, continuations, and continuations-in-part of any of the
      foregoing, and all rights to sue for past, present and future infringement
      of
      any of the foregoing.

     

    RCRA.
      See
§7.18(a).

     

    Real
      Estate.
      All
      real property at any time owned or leased (as lessee or sublessee) by any
      Borrower.

     

    Record.
      The
      grid attached to a Revolving Credit Note or a Swing Loan Note, or the
      continuation of such grid, or any other similar record, including computer
      records, maintained by any Lender with respect to any Loan.

     

    Reference
      Period.
      As of
      any date of determination, the period of four (4) consecutive fiscal quarters
      of
      the Parent ending on such date (in each case treated as a single accounting
      period).

     

    Register.
      See
§15.3.

     

    Reimbursement
      Obligation.
      The
      Borrowers’ obligation to reimburse the Administrative Agent, the Issuing Bank
      and the Lenders on account of any drawing under any Letter of Credit as provided
      in §4.2.

     

    Related
      Parties.
      With
      respect to any specified Person, such Person’s Affiliates and the respective
      directors, officers, employees, agents and advisors of such Person and such
      Person’s Affiliates.

     

    Required
      Lenders.
      As of
      any date, the Lenders holding an aggregate of at least sixty-five percent (65%)
      of the Total Commitment (or if the Total Commitment has been terminated, at
      least sixty-five percent (65%) of the sum of the outstanding aggregate principal
      amount of Loans, Unpaid Reimbursement Obligations, and the Maximum Drawing
      Amount of outstanding Letters of Credit) on such date.

     

    Reserves.
      As of
      any date of determination, an amount equal to the sum of (a) the outstanding
      payables of the Borrowers owing to farmers, growers, producers, sellers or
      other
      persons supplying agricultural products, including without limitation, PACA
      Commodities, to the Borrowers to the extent such persons are entitled to (and
      have not waived or subordinated to the satisfaction of the Administrative Agent)
      Liens, trusts or priority claims (whether pursuant to the California Producer’s
      Lien Law, PACA or otherwise), plus (b) an amount equal to the amount of rental
      payments, fees and other amounts due under Mortgagee Consents, plus (c) the
      Capital Expenditure Reserve, plus (d) the Royalty Reserve, plus (e) such
      additional amounts as the Administrative Agent may from time to time determine
      to establish and revise (i) to reflect events, conditions, contingencies or
      risks or (ii) to reflect the belief of the Administrative Agent that any
      Borrowing Base Report or other collateral report or financial information
      furnished by or on behalf of the Borrowers to the Administrative Agent or any
      of
      the Lenders is or may have been incomplete, inaccurate or misleading in any
      material respect. Reserves may include, but are not limited to, reserves
      relating to the amount of any accrued and unpaid wage claims, wage deficiencies
      or employee benefits due and owing to any Wisconsin employee of any
      Borrower.

     

    Restricted
      Payment.
      In
      relation to the Borrowers and their Subsidiaries, any (a) Distribution, (b)
      payment or prepayment by a Borrower or any of their Subsidiaries to such
      Borrower’s or Subsidiary’s shareholders or other equity holders (in each case,
      other than to a Borrower), or to any Affiliate of a Borrower or any Subsidiary
      or any Affiliate of a Borrower’s or Subsidiary’s shareholders or other equity
      holders (in each case, other than to a Borrower), or (c) derivatives or other
      transactions with any financial institution, commodities or stock exchange
      or
      clearinghouse (a “Derivatives
      Counterparty”)
      obligating a Borrower or any Subsidiary of a Borrower to make payments to such
      Derivatives Counterparty as a result of any change in market value of any
      Capital Stock of any Borrower, or any Subsidiary of a Borrower.

     

    Revolving
      Lender Security Agreement.
      The
      Amended and Restated Security Agreement, dated or to be dated on or prior to
      the
      Effective Date, by and among the Borrowers, Marion and the Collateral Agent,
      in
      its capacity as collateral agent for the Lenders, and in form and substance
      satisfactory to the Lenders and the Collateral Agent.

     

    Revolving
      Credit Notes.
      See
§2.4(a).

     

    Royalty
      Reserve.
      All
      reserves that the Administrative Agent from time to time may establish for
      Inventory with labels bearing trademarks or trade names licensed by any Borrower
      from Societe des Produits Nestlé, S.A., or from similar third parties, in an
      amount determined by the Administrative Agent to be sufficient to make any
      required royalty payments owing by Borrowers with respect to such Inventory
      necessary to sell or dispose of the Inventory in a commercially reasonable
      manner.

     

    SARA.
      See
§7.18(a).

     

    Security
      Documents.
      The
      Alliance Security Agreement, the Revolving Lender Security Agreement, the
      Signature Fruit Security Agreement, the Trademark Assignments, the Pledge
      Agreement and all other instruments and documents, including without limitation
      Uniform Commercial Code financing statements, required to be executed or
      delivered pursuant to any Security Document.

     

    Seneca
      Snack.
      As
      defined in the preamble hereto.

     

    Senior
      Management.
      The
      Chairman of the Board, the President, Chief Executive Officer, Chief Financial
      Officer and any other individual holding an office of Senior Vice President
      or
      higher of any Borrower.

     

    Settlement.
      The
      making or receiving of payments, in immediately available funds, by the Lenders,
      to the extent necessary to cause each Lender’s actual share of the outstanding
      amount of Loans (after giving effect to any Loan Request) to be equal to such
      Lender’s Commitment Percentage of the outstanding amount of such Loans (after
      giving effect to any Loan Request), in any case where, prior to such event
      or
      action, the actual share is not so equal.

     

    Settlement
      Amount.
      See
§2.10.1.

     

    Settlement
      Date.
      See
§2.10.1.

     

    Settling
      Lender.
      See
§2.10.1.

     

    Signature
      Fruit.
      As
      defined in the preamble hereto.

     

    Signature
      Fruit Purchase Agreement.
      The
      Purchase Agreement dated August 18, 2006 among Parent, as buyer, and John
      Hancock Life Insurance Company and John Hancock Variable Life Insurance Company,
      as sellers, pursuant to which the sellers agreed to sell to Parent 100% of
      the
      outstanding limited liability company interests in Signature Fruit, on the
      terms
      and conditions set forth therein, as in effect on the date hereof (without
      giving effect to any amendment thereof or waiver thereunder except for
      amendments and waivers consented to in writing by the Required
      Lenders.

     

    Signature
      Fruit Security Agreement.
      The
      Security Agreement, dated or to be dated on or prior to the Effective Date,
      by
      and between Signature Fruit and the Administrative Agent, and in form and
      substance satisfactory to the Lenders and the Administrative Agent.

     

    Silgan.
      Silgan
      Containers Corporation, a Delaware corporation.

     

    Silgan
      Payable.
      Amounts
      due and owing by Parent to Silgan under the terms of the Supply Agreement dated
      as of August 18, 2006 between Parent and Silgan in an aggregate amount not
      to
      exceed $8,000,000 at any time, as such Supply Agreement is in effect on the
      date
      hereof and without giving effect to any amendments thereto.

     

    S&P.
      Standard & Poor’s Ratings Group, a division of McGraw Hill,
      Inc..

     

    Subordinated
      Indebtedness.
      Collectively, (a) Indebtedness of the Parent under the Pillsbury Note, and
      (b)
      unsecured Indebtedness of the Borrowers or any of their Subsidiaries that is
      expressly subordinated and made junior to the payment and performance in full
      of
      the Obligations, and evidenced as such by a written instrument containing terms
      and subordination provisions in form and substance approved by the Required
      Lenders in writing.

     

    Subsidiary.
      Any
      corporation, limited liability company, partnership, association, trust, or
      other business entity of which the designated parent shall at any time own
      directly or indirectly through a Subsidiary or Subsidiaries at least a majority
      (by number of votes) of the outstanding Voting Stock.

     

    Swing
      Line Lender.
      Bank of
      America, N.A.

     

    Swing
      Line Note.
      See
§2.4(b).

     

    Swing
      Line Loans.
      See
§2.6.2.

     

    Synthetic
      Lease.
      Any
      lease of goods or other property, whether real or personal, which is treated
      as
      an operating lease under GAAP and as a loan or financing for U.S. income tax
      purposes.

     

    Total
      Commitment.
      The sum
      of the Commitments of the Lenders, in the initial amount of Two Hundred Fifty
      Million Dollars ($250,000,000), as in effect from time to time.

     

    Trademark
      Assignments.
      Collectively, (a) the Trademark Collateral Security and Pledge Agreements,
      dated
      or to be dated on or prior to the Closing Date, made by the Parent and Seneca
      Snack in favor of the Collateral Agent and the Assignments of Trademarks and
      Service Marks executed in connection therewith, all in form and substance
      satisfactory to the Lenders and the Collateral Agent and (b) the Trademark
      Collateral Security and Pledge Agreements, dated or to be dated on or prior
      to
      the Effective Date, made by Signature Fruit in favor of the Administrative
      Agent
      and the Assignments of Trademarks and Service Marks executed in connection
      therewith, all in form and substance satisfactory to the Lenders and the
      Administrative Agent.

     

    Type.
      As to
      any Loan, its nature as a Base Rate Loan or a LIBOR Rate Loan.

     

    Underwriting
      Fee.
      See
§11.18.

     

    Unpaid
      Reimbursement Obligation.
      Any
      Reimbursement Obligation for which the Borrowers do not reimburse the Issuing
      Bank, the Administrative Agent and the Lenders on the date specified in, and
      in
      accordance with, §4.2.

     

    Unused
      Fee.
      See
§2.2.

     

    Voting
      Stock.
      Stock
      or similar interests, of any class or classes (however designated), the holders
      of which are at the time entitled, as such holders, to vote for the election
      of
      a majority of the directors (or persons performing similar functions) of the
      corporation, limited liability company, partnership, association, trust or
      other
      business entity involved, whether or not the right so to vote exists by reason
      of the happening of a contingency.

     

    Wachovia
      Letter of Credit.
      Irrevocable Standby Letter of Credit dated December 1, 1996 issued by Wachovia
      Bank, National Association for the account of the Parent (as successor by merger
      to Seneca Foods) for the benefit of First Bank, N.A., as amended by an Amendment
      to Irrevocable Standby Letter of Credit dated November 1, 2001, in the face
      amount of $933,000.00.

     

    1.2.  Rules
      of Interpretation.

     

    (a)  Except
      where otherwise stated, a reference to any document or agreement shall include
      such document or agreement as amended, modified or supplemented from time to
      time in accordance with its terms and the terms of this Credit
      Agreement.

     

    (b)  The
      singular includes the plural and the plural includes the singular.

     

    (c)  A
      reference to any law includes any amendment or modification to such
      law.

     

    (d)  A
      reference to any Person includes its permitted successors and permitted
      assigns.

     

    (e)  Accounting
      terms not otherwise defined herein have the meanings assigned to them by GAAP
      applied on a consistent basis by the accounting entity to which they
      refer.

     

    (f)  The
      words
“include”, “includes” and “including” are not limiting.

     

    (g)  All
      terms
      not specifically defined herein or by GAAP, which terms are defined in the
      Uniform Commercial Code as in effect in the State of New York, have the meanings
      assigned to them therein, with the term “instrument” being that defined under
      Article 9 of the Uniform Commercial Code.

     

    (h)  Reference
      to a particular “§” refers to that section of this Credit Agreement unless
      otherwise indicated.

     

    (i)  The
      words
“herein”, “hereof”, “hereunder” and words of like import shall refer to this
      Credit Agreement as a whole and not to any particular section or subdivision
      of
      this Credit Agreement.

     

    (j)  Unless
      otherwise expressly indicated, in the computation of periods of time from a
      specified date to a later specified date, the word “from” means “from and
      including,” the words “to” and “until” each mean “to but excluding,” and the
      word “through” means “to and including.”

     

    (k)  This
      Credit Agreement and the other Loan Documents may use several different
      limitations, tests or measurements to regulate the same or similar matters.
      All
      such limitations, tests and measurements are, however, cumulative and are to
      be
      performed in accordance with the terms thereof.

     

    (l)  This
      Credit Agreement and the other Loan Documents are the result of negotiation
      among, and have been reviewed by counsel to, among others, the Administrative
      Agent and the Borrowers and are the product of discussions and negotiations
      among all parties. Accordingly, this Credit Agreement and the other Loan
      Documents are not intended to be construed against the Administrative Agent
      or
      any of the Lenders merely on account of the Administrative Agent’s or any
      Lender’s involvement in the preparation of such documents.

     

    1.3.  Joint
      and Several Obligations.

     

    (a)  Each
      of
      the Borrowers is accepting joint and several liability hereunder and under
      the
      other Loan Documents in consideration of the financial accommodations to be
      provided by the Lenders under this Credit Agreement, for the mutual benefit,
      directly and indirectly, of each of the Borrowers and in consideration of the
      undertakings of each other Borrower to accept joint and several liability for
      the Obligations.

     

    (b)  Each
      of
      the Borrowers, jointly and severally, hereby irrevocably and unconditionally
      accepts, not merely as a surety but also as a co-debtor, joint and several
      liability with the other Borrowers with respect to the payment and performance
      of all of the Obligations (including, without limitation, any Obligations
      arising under this Section 1.3), it being the intention of the parties hereto
      that all of the Obligations shall be the joint and several Obligations of each
      of the Borrowers without preferences or distinction among them.

     

    (c)  If
      and to
      the extent that any of the Borrowers shall fail to make any payment with respect
      to any of the Obligations as and when due or to perform any of the Obligations
      in accordance with the terms thereof, then in each such event the other
      Borrowers will make such payment with respect to, or perform, such
      Obligation.

     

    (d)  The
      Obligations of each of the Borrowers under the provisions of this Section 1.3
      constitute full recourse Obligations of each of the Borrowers enforceable
      against each such Person to the full extent of its properties and assets,
      irrespective of the validity, regularity or enforceability of this Credit
      Agreement or any other circumstance whatsoever.

     

    (e)  Except
      as
      otherwise expressly provided in this Credit Agreement, each of the Borrowers
      hereby waives notice of acceptance of its joint and several liability, notice
      of
      any Loans made under this Credit Agreement, notice of any action at any time
      taken or omitted by the Lenders under or in respect of any of the Obligations,
      and, generally, to the extent permitted by applicable law, all demands, notices
      and other formalities of every kind in connection with this Credit Agreement.
      Each of the Borrowers hereby assents to, and waives notice of, any extension
      or
      postponement of the time for the payment of any of the Obligations, the
      acceptance of any payment of any of the Obligations, the acceptance of any
      partial payment thereon, any waiver, consent or other action or acquiescence
      by
      the Lenders at any time or times in respect of any default by any of the
      Borrowers in the performance or satisfaction of any term, covenant, condition
      or
      provision of this Credit Agreement, any amendment of this Credit Agreement
      or
      any other Loan Document, any and all other indulgences whatsoever by the Lenders
      in respect of any of the Obligations, and the taking, addition, substitution
      or
      release, in whole or in part, at any time or times, of any security for any
      of
      the Obligations or the addition, substitution or release, in whole or in part,
      of any of the Borrowers. Without limiting the generality of the foregoing,
      each
      of the Borrowers assents to any other action or delay in acting or failure
      to
      act on the part of the Lenders with respect to the failure by any of the
      Borrowers to comply with any of its respective Obligations, including, without
      limitation, any failure strictly or diligently to assert any right or to pursue
      any remedy or to comply fully with applicable laws or regulations thereunder,
      which might, but for the provisions of this Section 1.3, afford grounds for
      terminating, discharging or relieving any of the Borrowers, in whole or in
      part,
      from any of its Obligations under this Section 1.3, it being the intention
      of
      each of the Borrowers that, so long as any of the Obligations hereunder remain
      unsatisfied, the Obligations of such Borrowers under this Section 1.3 shall
      not
      be discharged except by performance and then only to the extent of such
      performance. The Obligations of each of the Borrowers under this Section 1.3
      shall not be diminished or rendered unenforceable by any winding up,
      reorganization, arrangement, liquidation, re-construction or similar proceeding
      with respect to any of the Borrowers or the Lenders. The joint and several
      liability of the Borrowers hereunder shall continue in full force and effect
      notwithstanding any absorption, merger, amalgamation or any other change
      whatsoever in the name, membership, constitution or place of formation of any
      of
      the Borrowers or any Lender.

     

    (f)  The
      provisions of this Section 1.3 are made for the benefit of the Lenders and
      their
      successors and assigns, and may be enforced in good faith by them from time
      to
      time against any or all of the Borrowers as often as the occasion therefor
      may
      arise and without requirement on the part of any Lender first to marshal any
      of
      their claims or to exercise any of their rights against any other Borrower
      or to
      exhaust any remedies available to them against any other Borrower or to resort
      to any other source or means of obtaining payment of any of the Obligations
      hereunder or to elect any other remedy. The provisions of this Section 1.3
      shall
      remain in effect until all of the Obligations shall have been paid in full
      or
      otherwise fully satisfied. If at any time, any payment, or any part thereof,
      made in respect of any of the Obligations, is rescinded or must otherwise be
      restored or returned by the Lenders upon the insolvency, bankruptcy or
      reorganization of any of the Borrowers, or otherwise, the provisions of this
      Section 1.3 will forthwith be reinstated in effect, as though such payment
      had
      not been made.

     

    (g)  Any
      notice, request, waiver, consent or other action made, given or taken to or
      by
      any Borrower shall bind all Borrowers.

     

    
      	2.  	
              THE
                REVOLVING CREDIT FACILITY.

            

    

     

    2.1.  Commitment
      to Lend.
      Subject
      to the terms and conditions set forth in this Credit Agreement, each of the
      Lenders severally agrees to lend to the Borrowers and the Borrowers may borrow,
      repay, and reborrow from time to time from the Closing Date up to but not
      including the Maturity Date upon notice by a Borrower to the Administrative
      Agent given in accordance with §2.6, such sums as are requested by the Borrowers
      up to a maximum aggregate amount outstanding (after giving effect to all amounts
      requested) at any one time equal to such Lender’s Commitment minus such Lender’s
      Commitment Percentage of the sum of the Maximum Drawing Amount and all Unpaid
      Reimbursement Obligations, provided
      that the
      sum of the outstanding amount of the Loans (after giving effect to all amounts
      requested) plus
      the sum
      of the outstanding amount of the Maximum Drawing Amount and all Unpaid
      Reimbursement Obligations shall not at any time exceed the lesser of (a) the
      Total Commitment at such time and (b) the Borrowing Base at such time. The
      Loans
      shall be made pro rata in accordance with each Lender’s Commitment Percentage.
      Each request for a Loan hereunder shall constitute a representation and warranty
      by the Borrowers that the conditions set forth in §11 and §12, in the case of
      the initial Loans to be made on the Closing Date, and §12, in the case of all
      other Loans, have been satisfied on the date of such request.

     

    2.2.  Unused
      Fee.
      The
      Borrowers jointly and severally agree to pay to the Administrative Agent for
      the
      accounts of the Lenders in accordance with their respective Commitment
      Percentages an Unused Fee (the “Unused
      Fee”)
      calculated at the rate per annum of the Applicable Margin with respect to the
      Unused Fee as in effect from time to time on the average daily amount during
      each calendar month or portion thereof from the Effective Date to the Maturity
      Date by which the Total Commitment exceeds the sum of the Maximum Drawing
      Amount, all Unpaid Reimbursement Obligations and the amount of Loans outstanding
      during such calendar month. The Unused Fee shall be payable monthly in arrears
      on the first day of each calendar month for the immediately preceding calendar
      month commencing on the first such date following the Effective Date, with
      a
      final payment on the Maturity Date or any earlier date on which the Commitments
      shall terminate.

     

    2.3.  Reduction
      of Total Commitment.
      The
      Borrowers shall have the right at any time and from time to time upon five
      (5)
      Business Days prior written notice to the Administrative Agent to reduce by
      $10,000,000 or an integral multiple of $1,000,000 in excess thereof or to
      terminate entirely the Total Commitment, whereupon the Commitments of the
      Lenders shall be reduced pro
      rata
      in
      accordance with their respective Commitment Percentages of the amount specified
      in such notice or, as the case may be, terminated. Promptly after receiving
      any
      notice of the Borrowers delivered pursuant to this §2.3, the Administrative
      Agent will notify the Lenders of the substance thereof. Upon the effective
      date
      of any such reduction or termination, the Borrowers shall pay to the
      Administrative Agent for the respective accounts of the Lenders the full amount
      of any Unused Fee then accrued on the amount of the reduction. No reduction
      or
      termination of the Commitments may be reinstated.

     

    2.4.  The
      Notes.

     

    (a)  At
      the
      request of any Lender, the Loans owed to such Lender shall be evidenced by
      a
      separate promissory note of the Borrowers in substantially the form of
Exhibit B-1
      hereto
      (each a “Revolving
      Credit Note”),
      dated
      as of the Effective Date (or such other date on which a Lender may become a
      party hereto in accordance with §15 hereof) and completed with appropriate
      insertions. One Revolving Credit Note shall be payable to the order of each
      Lender in a principal amount equal to such Lender’s Commitment, plus interest
      accrued thereon, as set forth below. The Borrowers irrevocably authorize each
      Lender to make or cause to be made, at or about the time of the Drawdown Date
      of
      any Loan or at the time of receipt of any payment of principal on such Lender’s
      Revolving Credit Note, an appropriate notation on such Lender’s Revolving Credit
      Note Record reflecting the making of such Loan or (as the case may be) the
      receipt of such payment. The outstanding amount of the Loans set forth on such
      Lender’s Revolving Credit Note Record shall be prima facie
      evidence
      of the principal amount thereof owing and unpaid to such Lender, but the failure
      to record, or any error in so recording, any such amount on such Lender’s
      Revolving Credit Note Record shall not limit or otherwise affect the obligations
      of the Borrowers hereunder or under any Revolving Credit Note to make payments
      of principal of or interest on any Loan when due.

     

    (b)  The
      Swing
      Line Loans shall be evidenced by a promissory note of the Borrowers in
      substantially the form of Exhibit B-2
      hereto
      (the “Swing
      Line Note”),
      dated
      as of the Effective Date and completed with appropriate insertions. One Swing
      Line Note shall be payable to the order of the Swing Line Lender in a principal
      amount equal to $20,000,000, plus interest accrued thereon, as set forth below.
      Each Borrower irrevocably authorizes and requests the Swing Line Lender to
      make
      or cause to be made, at or about the time of the Drawdown Date of any Swing
      Line
      Loan or at the time of receipt of any payment of principal on the Swing Line
      Lender’s Swing Line Note, an appropriate notation on such Record reflecting the
      making of such Swing Line Loan or (as the case may be) the receipt of such
      payment. The outstanding amount of the Swing Line Loans set forth on the Swing
      Line Lender’s Record or any other loan account maintained by the Administrative
      Agent shall be prima
      facie
      evidence
      of the principal amount thereof owing and unpaid to the Swing Line Lender,
      but
      the failure to record, or any error in so recording, any such amount on the
      Swing Line Lender’s Record shall not limit or otherwise affect the obligations
      of the Borrowers hereunder or under the Swing Line Note to make payments of
      principal of or interest on the Swing Line Note when due.

     

    2.5.  Interest
      on Loans.
      Except
      as otherwise provided in §5.10,

     

    (a)  Each
      Loan
      which is a Base Rate Loan shall bear interest for the period commencing with
      the
      Drawdown Date thereof and ending on the last day of the Interest Period with
      respect thereto at the rate per annum equal
      to
      the Base Rate plus
      the
      Applicable Margin with respect to Base Rate Loans as in effect from time to
      time.

     

    (b)  Each
      Loan
      which is a LIBOR Rate Loan, including all Swing Line Loans, shall bear interest
      for the period commencing with the Drawdown Date thereof and ending on the
      last
      day of the Interest Period with respect thereto at the rate per annum equal
      to
      the LIBOR Rate determined for such Interest Period plus
      the
      Applicable Margin with respect to LIBOR Rate Loans as in effect from time to
      time.

     

    The
      Borrowers jointly and severally promise to pay interest on each Loan in arrears
      on each Interest Payment Date with respect thereto.

     

    2.6.  Requests
      for Loans.

     

    2.6.1.  General.
      The
      Borrowers shall give to the Administrative Agent written notice in the form
      of
Exhibit C
      hereto
      (or telephonic notice confirmed in a writing in the form of Exhibit C
      hereto)
      of each Loan requested hereunder (a “Loan
      Request”)
      (a)
      not later than 11:00 a.m. (Connecticut time) on the Drawdown Date of any Base
      Rate Loan and (b) no less than three (3) LIBOR Business Days prior to the
      proposed Drawdown Date of any LIBOR Rate Loan. Each such notice shall specify
      (i) the principal amount of the Loan requested, (ii) the proposed Drawdown
      Date
      of such Loan, (iii) with respect to LIBOR Rate Loans, the Interest Period for
      such Loan and (iv) the Type of such Loan. Promptly upon receipt of any such
      notice, the Administrative Agent shall notify each of the Lenders thereof.
      Each
      Loan Request shall be irrevocable and binding on the Borrowers and shall
      obligate the Borrowers to accept the Loan requested from the Lenders on the
      proposed Drawdown Date. Each Loan Request shall be in a minimum aggregate amount
      of $1,000,000 or an integral multiple of $500,000 in excess
      thereof.

     

    2.6.2.  Swing
      Line.
      Notwithstanding the notice and minimum amount requirements set forth in §2.6.1
      but otherwise in accordance with the terms and conditions of this Credit
      Agreement, the Administrative Agent may, in its sole discretion and without
      conferring with the Lenders, make Loans (“Swing
      Line Loans”)
      to the
      Borrowers (a) by entry of credits to any account of a Borrower (each, an
“Operating
      Account”)
      at
      Bank of America, N.A. to cover checks or other charges which such Borrower
      has
      drawn or made against such account or (b) in an amount as otherwise requested
      by
      the Borrowers, provided
      that the
      outstanding principal balance of the Loans made under this §2.6.2 shall not
      exceed $20,000,000 at any time in the aggregate. The Borrowers hereby request
      and authorize the Administrative Agent to make from time to time such Loans
      by
      means of appropriate entries of such credits sufficient to cover checks and
      other charges then presented for payment from the Operating Account or as
      otherwise so requested. The Borrowers acknowledge and agree that the making
      of
      such Loans shall, in each case, be subject in all respects to the provisions
      of
      this Credit Agreement as if they were Loans covered by a Loan Request including,
      without limitation, the limitations set forth in §2.1 and the requirements that
      the applicable provisions of §11 (in the case of Loans made on the Effective
      Date) and §12 be satisfied. All actions taken by the Administrative Agent
      pursuant to the provisions of this §2.6.2 shall be conclusive and binding on the
      Borrowers and the Lenders absent the Administrative Agent’s gross negligence or
      willful misconduct. Loans made pursuant to this §2.6.2 shall be LIBOR Rate Loans
      until converted in accordance with the provisions of the Credit Agreement and,
      prior to a Settlement, such interest shall be for the account of the
      Administrative Agent.

     

    2.7.  Conversion
      Options.

     

    2.7.1.  Conversion
      to Different Type of Loan.
      The
      Borrowers may elect from time to time to convert any outstanding Loan to a
      Loan
      of another Type, provided
      that (a)
      with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan,
      the Borrowers shall notify the Administrative Agent of such election no later
      than 11:00 a.m. on the date such conversion is to take effect; (b) with respect
      to any such conversion of a Base Rate Loan to a LIBOR Rate Loan, the Borrowers
      shall give the Administrative Agent at least three (3) LIBOR Business Days
      prior
      written notice of such election; and (c) no Loan may be converted into a LIBOR
      Rate Loan when any Default or Event of Default has occurred and is continuing.
      On the date on which such conversion is being made each Lender shall take such
      action as is necessary to transfer its Commitment Percentage of such Loans
      to
      its Domestic Lending Office or its LIBOR Lending Office, as the case may be.
      All
      or any part of outstanding Loans of any Type may be converted into a Loan of
      another Type as provided herein, provided
      that any
      partial conversion shall be in an aggregate principal amount of $1,000,000
      or an
      integral multiple of $500,000 in excess thereof. Each Conversion Request
      relating to the conversion of a Loan to a LIBOR Rate Loan shall be irrevocable
      by the Borrowers.

     

    2.7.2.  Continuation
      of Type of Loan.
      Any
      Loan of any Type may be continued as a Loan of the same Type upon the expiration
      of an Interest Period with respect thereto by compliance by the Borrowers with
      the notice provisions contained in §2.7.1; provided
      that no
      LIBOR Rate Loan may be continued as such when any Default or Event of Default
      has occurred and is continuing, but shall be automatically converted to a Base
      Rate Loan on the last day of the first Interest Period relating thereto ending
      during the continuance of any Default or Event of Default of which officers
      of
      the Administrative Agent active upon the Borrowers’ account have actual
      knowledge. In the event that the Borrowers fail to provide any such notice
      with
      respect to the continuation of any LIBOR Rate Loan as such, then such LIBOR
      Rate
      Loan shall be automatically converted to a Base Rate Loan on the last day of
      the
      first Interest Period relating thereto. The Administrative Agent shall notify
      the Lenders promptly when any such automatic conversion contemplated by this
      §2.7 is scheduled to occur.

     

    2.7.3.  LIBOR
      Rate Loans.
      Any
      conversion to or from LIBOR Rate Loans shall be in such amounts and be made
      pursuant to such elections so that, after giving effect thereto, the aggregate
      principal amount of all LIBOR Rate Loans having the same Interest Period shall
      not be less than $1,000,000 or an integral multiple of $500,000 in excess
      thereof. No more than seven (7) LIBOR Rate Loans having different Interest
      Periods may be outstanding at any time.

     

    2.8.  Funds
      for Loan.

     

    2.8.1.  Funding
      Procedures.
      Not
      later than 1:00 p.m. (Connecticut time) on the proposed Drawdown Date of any
      Loans, each of the Lenders will make available to the Administrative Agent,
      at
      the Administrative Agent’s Office, in immediately available funds, the amount of
      such Lender’s Commitment Percentage of the amount of the requested Loans. Upon
      receipt from each Lender of such amount, and upon receipt of the documents
      required by §§11 and 12 and the satisfaction of the other conditions set forth
      therein, to the extent applicable, the Administrative Agent will make available
      to the Borrowers the aggregate amount of such Loans made available to the
      Administrative Agent by the Lenders. The failure or refusal of any Lender to
      make available to the Administrative Agent at the aforesaid time and place
      on
      any Drawdown Date the amount of its Commitment Percentage of the requested
      Loans
      shall not relieve any other Lender from its several obligation hereunder to
      make
      available to the Administrative Agent the amount of such other Lender’s
      Commitment Percentage of any requested Loans.

     

    2.8.2.  Advances
      by Administrative Agent.
      The
      Administrative Agent may, unless notified to the contrary by any Lender prior
      to
      a Drawdown Date, assume that such Lender has made available to the
      Administrative Agent on such Drawdown Date the amount of such Lender’s
      Commitment Percentage of the Loans to be made on such Drawdown Date, and the
      Administrative Agent may (but it shall not be required to), in reliance upon
      such assumption, make available to the Borrowers a corresponding amount. If
      any
      Lender makes available to the Administrative Agent such amount on a date after
      such Drawdown Date, such Lender shall pay to the Administrative Agent on demand
      an amount equal to the Lender Payment Amount. A statement of the Administrative
      Agent submitted to such Lender with respect to any Lender Payment Amount owing
      under this paragraph shall be prima
      facie
      evidence
      of the amount due and owing to the Administrative Agent by such Lender. If
      the
      amount of such Lender’s Commitment Percentage of such Loans is not made
      available to the Administrative Agent by such Lender within three (3) Business
      Days following such Drawdown Date, the Administrative Agent shall be entitled
      to
      recover such amount from the Borrowers on demand, with interest thereon at
      the
      rate per annum applicable to the Loans made on such Drawdown Date.

     

    2.9.  Change
      in Borrowing Base.
      The
      Borrowing Base shall be determined monthly (or
      at
      such other interval as may be specified pursuant to §8.4(e)) by reference to the
      Borrowing Base Report, commercial finance and collateral audit reports, and
      other information obtained by or provided to the Administrative Agent. The
      Administrative Agent shall give to the Borrowers written notice of any change
      in
      the Borrowing Base determined by the Administrative Agent.
      In the
      case of a reduction in the lending formula with respect to Eligible Accounts
      Receivable or Eligible Inventory, such notice shall be effective five (5) days
      after its receipt by the Borrowers, and in the case of any change in the general
      criteria for Eligible Accounts Receivable or Eligible Inventory, such notice
      shall be effective upon its receipt by the Borrowers. Prior
      to
      the time that such notice becomes effective the Borrowing Base shall be computed
      as it would have been computed in the absence of such notice.

     

    2.10.  Settlements.

     

    2.10.1.  General.
      Upon
      demand by the Swing Line Lender (a “Settlement
      Date”)
      which
      shall be made no less frequently than every other week, the Administrative
      Agent
      shall, not later than 11:00 a.m. (Connecticut time), give telephonic or
      facsimile notice (a) to the Lenders and the Borrowers of the respective
      outstanding amount of Swing Line Loans made by the Swing Line Lender on behalf
      of the Lenders from the immediately preceding Settlement Date through the close
      of business on the prior day and the amount of any LIBOR Rate Loans to be made
      on such date pursuant to a Loan Request, if any, and (b) to the Lenders of
      the
      amount (a “Settlement
      Amount”)
      that
      each Lender (a “Settling
      Lender”)
      shall
      pay (or receive) to effect a Settlement of any Loan. A statement of the
      Administrative Agent submitted to the Lenders and the applicable Borrowers
      or to
      the Lenders with respect to any amounts owing under this §2.10 shall be
prima
      facie
      evidence
      of the amount due and owing. Each Settling Lender shall, not later than 3:00
      p.m. (Connecticut time) on such Settlement Date for any Loan, effect a wire
      transfer of immediately available funds to the Administrative Agent in the
      amount of the Settlement Amount for such Settling Lender. All funds advanced
      by
      any Lender as a Settling Lender pursuant to this §2.10 shall for all purposes be
      treated as a Loan made by such Settling Lender to the Borrowers and all funds
      received by any Lender pursuant to this §2.10 shall for all purposes be treated
      as repayment of amounts owed with respect to Loans made by such Lender. In
      the
      event that any bankruptcy, reorganization, liquidation, receivership or similar
      cases or proceedings in which any Borrower is a debtor prevent a Settling Lender
      from making any Loan to effect a Settlement as contemplated hereby, such
      Settling Lender will make such dispositions and arrangements with the other
      Lenders with respect to such Loans, either by way of purchase of participations,
      distribution, pro tanto
      assignment of claims, subrogation or otherwise as shall result in each Lender’s
      share of the outstanding Loans being equal, as nearly as may be, to such
      Lender’s Commitment Percentage of the outstanding amount of the
      Loans.

     

    2.10.2.  Failure
      to Make Funds Available.
      The
      Administrative Agent may, unless notified to the contrary by any Settling Lender
      prior to a Settlement Date, assume that such Settling Lender has made or will
      make available to the Administrative Agent on such Settlement Date the amount
      of
      such Settling Lender’s Settlement Amount, and the Administrative Agent may (but
      it shall not be required to), in reliance upon such assumption, make available
      to the Borrowers a corresponding amount. If any Settling Lender makes available
      to the Administrative Agent such amount on a date after such Settlement Date,
      such Settling Lender shall pay to the Administrative Agent on demand an amount
      equal to the Lender Payment Amount. A statement of the Administrative Agent
      submitted to such Settling Lender with respect to any Lender Payment Amount
      owing under this §2.10.2 shall be prima facie evidence of the amount due and
      owing to the Administrative Agent by such Settling Lender. If such Settling
      Lender’s Settlement Amount is not made available to the Administrative Agent by
      such Settling Lender within three (3) Business Days following such Settlement
      Date, the Administrative Agent shall be entitled to recover such amount from
      the
      Borrowers on demand, with interest thereon at the rate per annum applicable
      to
      Base Rate Loans.

     

    2.10.3.  No
      Effect on Other Lenders.
      The
      failure or refusal of any Settling Lender to make available to the
      Administrative Agent at the aforesaid time and place on any Settlement Date
      the
      amount of such Settling Lender’s Settlement Amount shall not (a) relieve any
      other Settling Lender from its several obligations hereunder to make available
      to the Administrative Agent the amount of such other Settling Lender’s
      Settlement Amount or (b) impose upon any Lender, other than the Settling Lender
      so failing or refusing, any liability with respect to such failure or refusal
      or
      otherwise increase the Commitment of such other Lender.

     

    2.11.  Repayments
      of Loans Prior to Event of Default.

     

    2.11.1.  Credit
      for Funds Received in Concentration Account.
      Prior
      to the occurrence of an Event of Default as to which the account officers of
      the
      Administrative Agent active upon the Borrowers’ account have actual knowledge,
      (a) all funds and cash proceeds in the form of money, checks and like items
      received in the Bank of America Concentration Account as contemplated by §8.13
      shall be credited, on the same Business Day on which the Administrative Agent
      determines that good collected funds have been received, and, prior to the
      receipt of good collected funds, on a provisional basis until final receipt
      of
      good collected funds, and applied as contemplated by §2.11.2, (b) all funds and
      cash proceeds in the form of a wire transfer received in the Bank of America
      Concentration Account as contemplated by §8.13 shall be credited on the same
      Business Day as the Administrative Agent’s receipt of such amounts (or up to
      such later date as the Administrative Agent determines that good collected
      funds
      have been received), and applied as contemplated by §2.11.2, and (c) all funds
      and cash proceeds in the form of an automated clearing house transfer received
      in the Bank of America Concentration Account as contemplated by §8.13 shall be
      credited, on the next Business Day following the Administrative Agent’s receipt
      of such amounts (or up to such later date as the Administrative Agent determines
      that good collected funds have been received), and applied as contemplated
      by
§2.11.2. For purposes of the foregoing provisions of this §2.11.1, the
      Administrative Agent shall not be deemed to have received any such funds or
      cash
      proceeds on any day unless received by the Administrative Agent before 2:30
      p.m.
      (Connecticut time) on such day. The Borrowers further acknowledge and agree
      that
      any such provisional credits or credits in respect of wire or automatic clearing
      house funds transfers shall be subject to reversal if final collection in good
      funds of the related item is not received by, or final settlement of the funds
      transfer is not made in favor of, the Administrative Agent in accordance with
      the Administrative Agent’s customary procedures and practices for collecting
      provisional items or receiving settlement of funds transfers.

     

    2.11.2.  Application
      of Payments Prior to Event of Default.

     

    (a)  Prior
      to
      the occurrence of an Event of Default of which the account officers of the
      Administrative Agent active on the Borrowers’ account have knowledge, all funds
      transferred to the Bank of America Concentration Account and for which the
      Borrowers have received credits shall be applied to the Obligations as
      follows:

     

    (i)  first,
      to
      pay amounts then due and payable under this Credit Agreement, the Revolving
      Credit Notes and the other Loan Documents;

     

    (ii)  second,
      to pay Swing Line Loans made by the Administrative Agent pursuant to §2.6.2 and
      for which Settlement has not then been made;

     

    (iii)  third,
      to
      reduce other Loans which are Base Rate Loans;

     

    (iv)  fourth,
      to reduce Loans which are LIBOR Rate Loans; and

     

    (v)  fifth,
      except as otherwise required by §4.2(b) and (c), to an Operating
      Account.

     

    (b)  All
      prepayments of LIBOR Rate Loans prior to the end of an Interest Period shall
      obligate the Borrowers to pay any breakage costs associated with such LIBOR
      Rate
      Loans in accordance with §5.9.

     

    (c)  All
      prepayments of the Loans pursuant to this §2.11.2 shall be allocated among the
      Lenders making such Loans, in proportion, as nearly as practicable, to the
      respective unpaid principal amount of such Loans outstanding, with adjustments
      to the extent practicable to equalize any prior payments or repayments not
      exactly in proportion. Prior to any Settlement Date, however, all prepayments
      of
      the Loans shall be applied in accordance with this §2.11.2 first to outstanding
      Swing Line Loans of the Swing Line Lender.

     

    2.12.  Repayments
      of Loans After Event of Default.
      Following the occurrence and during the continuance of an Event of Default
      of
      which the account officers of the Administrative Agent active on the Borrowers’
account have knowledge, all funds transferred to the Bank of America
      Concentration Account and for which the Borrowers have received credits shall
      be
      applied to the Obligations in accordance with §13.4.

     

    2.13.  Increase
      in Commitments.

     

    2.13.1.  Request
      for Increase.
      Provided there exists no Default or Event of Default and no Default would exist
      after giving effect to the requested increase in the Total Commitments, upon
      notice to the Administrative Agent (which shall promptly notify the Lenders),
      the Borrowers may make up to six requests to increase the Total Commitment
      by an
      aggregate amount (for all such requests in the aggregate) not to exceed
      $150,000,000, provided that each such request is in a minimum amount of
      $25,000,000. At the time of sending such notice, the Borrowers (in consultation
      with the Administrative Agent) shall specify the time period within which each
      Lender is requested to respond (which shall in no event be less than ten (10)
      Business Days from the date of delivery of such notice to the
      Lenders).

     

    2.13.2.  Lender
      Elections to Increase.
      Each
      Lender shall notify the Administrative Agent within such time period whether
      or
      not it agrees to increase its Commitment and, if so, whether by an amount equal
      to, greater than, or less than its Commitment Percentage of such requested
      increase. Any Lender not responding within such time period shall be deemed
      to
      have declined to increase its Commitment.

     

    2.13.3.  Notification
      by Administrative Agent.
      The
      Administrative Agent shall notify the Borrowers and each Lender of the Lenders’
responses to each request made hereunder. To achieve the full amount of a
      requested increase, and subject to the approval of the Administrative Agent,
      the
      Issuing Bank and the Swing Line Lender, the Borrower may also invite additional
      Eligible Assignees to become Lenders pursuant to a joinder agreement in form
      and
      substance satisfactory to the Administrative Agent and its counsel.

     

    2.13.4.  Effective
      Date and Allocations.
      If the
      Total Commitment is increased in accordance with this §2.13, the Administrative
      Agent and the Borrowers shall determine the effective date (the “Increase
      Effective Date”)
      and
      the final allocation of such increase. The Administrative Agent shall promptly
      notify the Borrowers and the Lenders of the Increase Effective Date and shall
      prepare and distribute to the Borrowers and the Lenders a revised Schedule
      1
      hereto
      reflecting the revised Commitments (and, if applicable, the revised Commitment
      Percentages) of the Lenders. Absent manifest error, Schedule
      1
      hereto
      shall be deemed to be amended to conform to the revised Schedule
      1
      so
      distributed by the Administrative Agent.

     

    2.13.5.  Conditions
      to Effectiveness of Increase.
      As a
      condition precedent to such increase, (a) each Borrower shall deliver to the
      Administrative Agent a certificate dated as of the Increase Effective Date
      (in
      sufficient copies for each Lender) signed by the principal financial or
      accounting officer of such Borrower (i) certifying and attaching the resolutions
      adopted by such Borrower approving or consenting to such increase, and (ii)
      certifying that, before and after giving effect to such increase, (A) the
      representations and warranties contained in Article 7 of this Credit Agreement
      and those contained in the other Loan Documents are true and correct on and
      as
      of the Increase Effective Date, except to the extent that such representations
      and warranties specifically refer to an earlier date, in which case they are
      true and correct as of such earlier date, (B) in addition to being true with
      respect to the financial statements referred to in §7.4, the representations and
      warranties contained in §7.4 shall be deemed to refer to the most recent
      statements furnished pursuant to subsections (a) and (b), respectively, of
§8.4,
      and certifying that such representations and warranties, as applied to such
      most
      recently furnished financial statements, are true and correct, (C) the requested
      increase in the Total Commitments would not breach the terms of or constitute
      a
      default under any document evidencing or securing any Indebtedness or contract
      to which any Borrower is a party, and (D) no Default or Event of Default exists
      or would result therefrom and (b) the Borrowers shall have delivered a new
      Revolving Credit Note to each Lender participating in such increase reflecting
      the amount of such Lender’s revised Commitment against delivery by such Lender
      of its existing Revolving Credit Note (such existing Revolving Credit Note
      to be
      immediately canceled by the Borrowers upon receipt thereof). The Borrowers
      shall
      prepay any Loans outstanding on the Increase Effective Date (and pay any
      additional amounts required pursuant to §5.9) to the extent necessary to keep
      the outstanding Loans ratable with any revised Commitment Percentages arising
      from any nonratable increase in the Commitments under this Section.

     

    2.13.6.  Conflicting
      Provisions.
      This
      Section shall supersede any provisions in §16.12.

     

    
      	3.  	
              REPAYMENT
                OF THE LOANS.

            

    

     

    3.1.  Maturity.
      The
      Borrowers jointly and severally promise to pay on the Maturity Date, and there
      shall become absolutely due and payable on the Maturity Date, all of the Loans
      outstanding on such date, together with any and all accrued and unpaid interest
      thereon.

     

    3.2.  Mandatory
      Repayments of Loans.

     

    3.2.1.  Excess
      Revolving Loans.
      If at
      any time the sum of the outstanding amount of the Loans, the Maximum Drawing
      Amount and all Unpaid Reimbursement Obligations exceeds the lesser of (a) the
      Total Commitment at such time and (b) the Borrowing Base at such time, then
      the
      Borrowers shall immediately pay the amount of such excess to the Administrative
      Agent for the respective accounts of the Lenders, to be applied as follows:
      first, to any Unpaid Reimbursement Obligations; second, to the Loans; and third,
      to provide to the Administrative Agent cash collateral for Reimbursement
      Obligations as contemplated by §4.2(b) and (c). Each payment of any Unpaid
      Reimbursement Obligations or prepayment of Loans shall be allocated among the
      Lenders, in proportion, as nearly as practicable, to each Reimbursement
      Obligation or (as the case may be) the respective unpaid principal amount of
      each Lender’s Revolving Credit Note, with adjustments to the extent practicable
      to equalize any prior payments or repayments not exactly in
      proportion.

     

    3.2.2.  Proceeds
      of Certain Events.
      Concurrently with the receipt by any Borrower or Subsidiary of:

     

    (a)  Net
      Cash
      Sale Proceeds from Asset Sales (other than the sale, lease, license or other
      disposition of (i) the Hancock Collateral, (ii) the collateral securing the
      obligations of the Parent under the Master Reimbursement Agreement, (iii) the
      collateral securing the obligations of the Parent under the Pillsbury Note
      or
      (iv) any other assets in the ordinary course of business consistent with past
      practices); or

     

    (b)  Net
      Cash
      Sale Proceeds from sales of Capital Stock; or

     

    (c)  proceeds
      in excess of $500,000 in the aggregate received from Casualty Events (other
      than
      Casualty Events in respect of the assets described in clauses (i), (ii) and
      (ii)
      of §3.2.2(a)) by the Borrowers and Subsidiaries which have not been committed
      (as evidenced by a binding written contract) by the applicable Borrower or
      Subsidiary within 60 days of receipt of such proceeds to the repair or
      replacement of the property so damaged, destroyed or taken, or, if so committed,
      such repair or replacement of the property so damaged, destroyed or taken shall
      have not commenced within 90 days of receipt of such proceeds pursuant to such
      binding written contract (provided,
      however,
      if a
      Default or Event of Default has occurred and is continuing, such proceeds shall
      be immediately paid to the Administrative Agent);

     

    the
      Borrowers shall pay to the Administrative Agent for the respective accounts
      of
      the Lenders an amount equal to (i) with respect to the proceeds from Asset
      Sales
      and Casualty Events, one hundred percent (100%) of the amount of such proceeds
      that the Lenders have the right to receive pursuant to the terms of the
      Intercreditor Agreement, and (ii) with respect to the Net Cash Sale Proceeds
      from sales of Capital Stock, one hundred percent (100%) of the amount of such
      Net Cash Sale Proceeds.

     

    3.3.  Optional
      Repayments of Loans.
      The
      Borrowers shall have the right, at their election, to repay the outstanding
      amount of the Loans, as a whole or in part, at any time, provided
      that any
      full or partial prepayment of the outstanding amount of any LIBOR Rate Loans
      pursuant to this §3.3 may be made only on the last day of the Interest Period
      relating thereto. The Borrowers shall give the Administrative Agent, no later
      than 10:00 a.m. (Connecticut time) at least two (2) Business Days prior written
      notice of any proposed prepayment pursuant to this §3.3 of Base Rate Loans, and
      three (3) LIBOR Business Days notice of any proposed prepayment pursuant to
      this
§3.3 of LIBOR Rate Loans, in each case specifying the proposed date of
      prepayment of Loans and the principal amount to be prepaid. Each such partial
      prepayment of the Loans shall be accompanied by the payment of accrued interest
      on the principal prepaid to the date of prepayment, and shall be applied, in
      the
      absence of instruction by the Borrowers, first to the principal of Base Rate
      Loans and then to the principal of LIBOR Rate Loans. Each partial prepayment
      shall be allocated among the Lenders, in proportion, as nearly as practicable,
      to the respective unpaid principal amount of each Lender’s Loans, with
      adjustments to the extent practicable to equalize any prior repayments not
      exactly in proportion.

     

    
      	4.  	
              LETTERS
                OF CREDIT.

            

    

     

    4.1.  Letter
      of Credit Commitments; LC Guaranty.

     

    4.1.1.  Commitment
      to Issue Letters of Credit.

     

    (a)  Subject
      to the terms and conditions hereof, the execution and delivery by a Borrower
      of
      a letter of credit application on the Issuing Bank’s customary form (a
“Letter of
      Credit Application”)
      and
      the Issuing Bank’s receipt of an LC Guaranty, if requested by the Issuing Bank,
      the Issuing Bank on behalf of the Lenders and in reliance upon the agreement
      of
      the Lenders set forth in §4.1.4 and upon the representations and warranties of
      the Borrowers contained herein, agrees, in its individual capacity, to issue,
      extend and renew for the account of the Borrowers one or more standby or
      documentary letters of credit (individually, a “Letter
      of Credit”),
      in
      such form as may be requested from time to time by a Borrower and agreed to
      by
      the Issuing Bank; provided,
      however,
      that,
      after giving effect to such request, (a) the sum of the aggregate Maximum
      Drawing Amount and all Unpaid Reimbursement Obligations shall not exceed
      $50,000,000 at any one time, and (b) the sum of (i) the Maximum Drawing Amount
      on all Letters of Credit, (ii) all Unpaid Reimbursement Obligations, and (iii)
      the amount of all Loans outstanding shall not exceed the lesser of (A) the
      Total
      Commitment at such time and (B) the Borrowing Base at such time. Notwithstanding
      the foregoing, the Issuing Bank shall have no obligation to issue any Letter
      of
      Credit to support or secure any Indebtedness of any Borrower to the extent
      that
      such Indebtedness was incurred prior to the proposed issuance date of such
      Letter of Credit, unless in any such case the Borrowers demonstrate to the
      satisfaction of the Administrative Agent that (x) such prior incurred
      Indebtedness was then fully secured by a prior perfected and unavoidable
      security interest in collateral provided by the Borrowers to the proposed
      beneficiary of such Letter of Credit or (y) such prior incurred Indebtedness
      was
      then secured or supported by a letter of credit issued for the account of a
      Borrower and the reimbursement obligation with respect to such letter of credit
      was fully secured by a prior perfected and unavoidable security interest in
      collateral provided to the issuer of such letter of credit by a
      Borrower. The
      parties hereto hereby acknowledge and agree that the letters of credit issued
      by
      Bank of America, N.A. under the Existing Signature Credit Agreement
      (collectively, the "Existing
      Letters of Credit")
      shall,
      on the Effective Date, become Letters of Credit hereunder and shall be subject
      to the conditions hereunder.

     

    (b)  The
      Administrative Agent agrees, on behalf of the Lenders and in reliance upon
      the
      agreement of the Lenders set forth in subsection 4.1.4 below and upon the
      representations and warranties of the Borrowers contained herein, to enter
      into
      an LC Guaranty with the Issuing Bank, if the Issuing Bank so requires, to
      support the reimbursement obligations of the Borrowers with respect to any
      Letter of Credit.

     

    4.1.2.  Letter
      of Credit Applications.
      Each
      Letter of Credit Application shall be completed to the satisfaction of the
      Issuing Bank and the Administrative Agent and shall be submitted at least three
      (3) Business Days prior to the proposed date of issuance. In the event that
      any
      provision of any Letter of Credit Application shall be inconsistent with any
      provision of this Credit Agreement, then the provisions of this Credit Agreement
      shall, to the extent of any such inconsistency, govern.

     

    4.1.3.  Terms
      of Letters of Credit.
      Each
      Letter of Credit issued, extended or renewed hereunder shall, among other
      things, (a) provide for the payment of sight drafts for honor thereunder when
      presented in accordance with the terms thereof and when accompanied by the
      documents described therein, (b) be issued solely in Dollars, and (c) have
      an
      expiry date no later than the date which is fourteen (14) days (or, if the
      Letter of Credit is confirmed by a confirmer or otherwise provides for one
      or
      more nominated persons, forty-five (45) days) prior to the Maturity Date. In
      addition, each Letter of Credit which is a documentary Letter of Credit shall
      have an expiry date no later than one hundred eighty (180) days from the date
      of
      issuance. Each Letter of Credit so issued, extended or renewed shall be subject
      to the Uniform Customs and Practice for Documentary Credits (1993 Revision),
      International Chamber of Commerce Publication No. 500 or any successor version
      thereto adopted by the Issuing Bank in the ordinary course of its business
      as a
      letter of credit issuer and in effect at the time of issuance of such Letter
      of
      Credit (the “Uniform
      Customs”)
      or,
      in
      the case of a standby Letter of Credit, either the Uniform Customs or the
International
      Standby Practices (ISP98), International Chamber of Commerce Publication No.
      590, or any successor code of standby letter of credit practices among banks
      adopted by the Issuing Bank in the ordinary course of its business as a standby
      letter of credit issuer and in effect at the time of issuance of such Letter
      of
      Credit.

     

    4.1.4.  Reimbursement
      Obligations of Lenders; Participation in LC Guaranty.

     

    (a)  Each
      Lender severally agrees that it shall be absolutely liable, without regard
      to
      the occurrence of any Default or Event of Default or any other condition
      precedent whatsoever, to the extent of such Lender’s Commitment Percentage, to
      reimburse the Issuing Bank on demand for the amount of each draft paid by the
      Issuing Bank under each Letter of Credit to the extent that such amount is
      not
      reimbursed by the Borrowers pursuant to §4.2 (such agreement for a Lender being
      called herein the “Letter
      of Credit Participation”
of
      such
      Lender).

     

    (b)  By
      the
      issuance of the LC Guaranty by the Administrative Agent, and without any further
      action on the part of the Administrative Agent, the Administrative Agent hereby
      grants to each Lender, and each Lender hereby acquires from the Administrative
      Agent, a participation in the LC Guaranty equal to such Lender’s Commitment
      Percentage of the aggregate amount guaranteed under the LC Guaranty. In the
      event the Administrative Agent is required to make any payment to the Issuing
      Bank under the LC Guaranty, each Lender hereby absolutely and unconditionally
      agrees to pay to the Administrative Agent such Lender’s Commitment Percentage of
      each such payment made by the Administrative Agent and not reimbursed by the
      applicable Borrowers pursuant §4.2, or of any reimbursement payment required to
      be refunded to the applicable Borrower for any reason, and each Lender severally
      agrees that it shall be absolutely liable, without regard to the occurrence
      of
      any Default or Event of Default or any other condition precedent whatsoever,
      to
      the extent of such Lender’s Commitment Percentage, to reimburse the
      Administrative Agent on demand for such payment. In the event that no LC
      Guaranty is issued with respect to any Letter of Credit each Lender hereby
      acquires from the Issuing Bank, a participation in such Letter of Credit equal
      to such Lender’s Commitment Percentage of the Maximum Drawing Amount under such
      Letter of Credit.

     

    4.1.5.  Participations
      of Lenders.
      Each
      such payment made by a Lender shall be treated as the purchase by such Lender
      of
      a participating interest in the Borrowers’ Reimbursement Obligation under §4.2
      in an amount equal to such payment. Each Lender shall share in accordance with
      its participating interest in any interest which accrues pursuant to
§4.2.

     

    4.2.  Reimbursement
      Obligation of the Borrowers.
      In
      order to induce the Issuing Bank to issue, extend and renew each Letter of
      Credit, the Administrative Agent to enter into the LC Guaranty, and the Lenders
      to participate therein, the Borrowers hereby jointly and severally agree to
      reimburse or pay to the Administrative Agent, for the account of the Issuing
      Bank or (as the case may be) the Lenders, with respect to each Letter of Credit
      issued, extended or renewed by the Issuing Bank hereunder,

     

    (a)  except
      as
      otherwise expressly provided in §4.2(b) and (c), on each date that any draft
      presented under such Letter of Credit is honored by the Issuing Bank, or the
      Issuing Bank otherwise makes a payment with respect thereto or the
      Administrative Agent shall make any payment under the LC Guaranty, (i) the
      amount paid by the Issuing Bank or the Administrative Agent, as the case may
      be,
      under or with respect to such Letter of Credit, and (ii) the amount of any
      taxes, fees, charges or other costs and expenses whatsoever incurred by the
      Issuing Bank or any Lender in connection with any payment made by the Issuing
      Bank or any Lender under, or with respect to, such Letter of
      Credit,

     

    (b)  upon
      the
      reduction (but not termination) of the Total Commitment to an amount less than
      the Maximum Drawing Amount, an amount equal to such difference, which amount
      shall be held by the Administrative Agent for the benefit of the Lenders and
      the
      Administrative Agent as cash collateral for all Reimbursement Obligations,
      and

     

    (c)  upon
      the
      termination of the Total Commitment, or the acceleration of the Reimbursement
      Obligations with respect to all Letters of Credit in accordance with §13, an
      amount equal to the then Maximum Drawing Amount on all Letters of Credit, which
      amount shall be held by the Administrative Agent for the benefit of the Lenders
      and the Issuing Bank as cash collateral for all Reimbursement
      Obligations.

     

    Each
      such
      payment shall be made to the Administrative Agent at the Administrative Agent’s
      Office in immediately available funds. Interest on any and all amounts remaining
      unpaid by the Borrowers under this §4.2 at any time from the date such amounts
      become due and payable (whether as stated in this §4.2, by acceleration or
      otherwise) until payment in full (whether before or after judgment) shall be
      payable to the Administrative Agent on demand at the rate specified in §5.10 for
      overdue principal on the Loans.

     

    4.3.  Letter
      of Credit Payments.
      If any
      draft shall be presented or other demand for payment shall be made under any
      Letter of Credit, the Issuing Bank shall notify the Borrowers of the date and
      amount of the draft presented or demand for payment and of the date and time
      when it expects to pay such draft or honor such demand for payment. If the
      Borrowers fail to reimburse the Administrative Agent as provided in §4.2 on or
      before the date that such draft is paid or other payment is made by the Issuing
      Bank, the Administrative Agent may at any time thereafter notify the Lenders
      of
      the amount of any such Unpaid Reimbursement Obligation. No later than 3:00
      p.m.
      (Connecticut time) on the Business Day next following the receipt of such
      notice, (i) the Administrative Agent, as guarantor under the LC Guaranty, shall
      make available to the Issuing Bank at the Administrative Agent’s Office, in
      immediately available funds, the amount of such Unpaid Reimbursement Obligation,
      together with an amount equal to the product of (a) the average, computed for
      the period referred to in clause (c) below, of the weighted average interest
      rate paid by the Issuing Bank for federal funds acquired by the Issuing Bank
      during each day included in such period, times
      (b) the
      amount equal to such Unpaid Reimbursement Obligations, times
      (c) a
      fraction, the numerator of which is the number of days that elapse from and
      including the date the Issuing Bank paid the draft presented for honor or
      otherwise made payment to the date on which such Unpaid Reimbursement Obligation
      shall become immediately available to the Issuing Bank, and the denominator
      of
      which is 360, and (ii) each Lender shall make available to the Administrative
      Agent, at the Administrative Agent’s Office, in immediately available funds, for
      the account of the Issuing Bank, such Lender’s Commitment Percentage of such
      Unpaid Reimbursement Obligation, together with an amount equal to the product
      of
      (a) the average, computed for the period referred to in clause (c) below, of
      the
      weighted average interest rate paid by the Issuing Bank for federal funds
      acquired by the Issuing Bank during each day included in such period,
times
      (b) the
      amount equal to such Lender’s Commitment Percentage of such Unpaid Reimbursement
      Obligation, times
      (c) a
      fraction, the numerator of which is the number of days that elapse from and
      including the date the Issuing Bank paid the draft presented for honor or
      otherwise made payment to the date on which such Lender’s Commitment Percentage
      of such Unpaid Reimbursement Obligation shall become immediately available
      to
      the Issuing Bank, and the denominator of which is 360. The responsibility of
      the
      Issuing Bank to the Borrowers and the Lenders shall be only to determine that
      the documents (including each draft) delivered under each Letter of Credit
      in
      connection with such presentment shall be in conformity in all material respects
      with such Letter of Credit.

     

    4.4.  Obligations
      Absolute.
      The
      Borrowers’ obligations under this §4 shall be absolute and unconditional under
      any and all circumstances and irrespective of the occurrence of any Default
      or
      Event of Default or any condition precedent whatsoever or any setoff,
      counterclaim or defense to payment which the Borrowers may have or have had
      against the Administrative Agent, any Lender, the Issuing Bank or any
      beneficiary of a Letter of Credit. The Borrowers further agree with the
      Administrative Agent, the Issuing Bank and the Lenders that the Administrative
      Agent, the Issuing Bank and the Lenders shall not be responsible for, and the
      Borrowers’ Reimbursement Obligations under §4.2 shall not be affected by, among
      other things, the validity or genuineness of documents or of any endorsements
      thereon, even if such documents should in fact prove to be in any or all
      respects invalid, fraudulent or forged, or any dispute between or among the
      Borrowers, the beneficiary of any Letter of Credit or any financing institution
      or other party to which any Letter of Credit may be transferred or any claims
      or
      defenses whatsoever of the Borrowers against the beneficiary of any Letter
      of
      Credit or any such transferee. The Administrative Agent, the Issuing Bank and
      the Lenders shall not be liable for any error, omission, interruption or delay
      in transmission, dispatch or delivery of any message or advice, however
      transmitted, in connection with any Letter of Credit. The Borrowers agree that
      any action taken or omitted by the Administrative Agent, the Issuing Bank or
      any
      Lender under or in connection with each Letter of Credit and the related drafts
      and documents, if done in good faith, shall be binding upon the Borrowers and
      shall not result in any liability on the part of the Administrative Agent or
      any
      Lender to the Borrowers.

     

    4.5.  Reliance
      by Issuer.
      To the
      extent not inconsistent with §4.4, the Issuing Bank shall be entitled to rely,
      and shall be fully protected in relying upon, any Letter of Credit, draft,
      writing, resolution, notice, consent, certificate, affidavit, letter, cablegram,
      telegram, telecopy, telex or teletype message, statement, order or other
      document believed by it to be genuine and correct and to have been signed,
      sent
      or made by the proper Person or Persons and upon advice and statements of legal
      counsel, independent accountants and other experts selected by the Issuing
      Bank.
      The Issuing Bank shall be fully justified in failing or refusing to take any
      action under this Credit Agreement unless it shall first have received such
      advice or concurrence of the Required Lenders as it reasonably deems appropriate
      or it shall first be indemnified to its reasonable satisfaction by the Lenders
      against any and all liability and expense which may be incurred by it by reason
      of taking or continuing to take any such action. The Issuing Bank shall in
      all
      cases be fully protected in acting, or in refraining from acting, under this
      Credit Agreement in accordance with a request of the Required Lenders, and
      such
      request and any action taken or failure to act pursuant thereto shall be binding
      upon the Lenders and all future holders of the Revolving Credit Notes or of
      a
      Letter of Credit Participation.

     

    4.6.  Letter
      of Credit Fee.
      The
      Borrowers shall pay a fee (a “Letter
      of Credit Fee”)
      to the
      Administrative Agent, for the accounts of the Lenders in accordance with their
      respective Commitment Percentages, in respect of each standby or documentary
      Letter of Credit, for the period from and including the date of issuance of
      such
      Letter of Credit to and including the date of termination or expiration of
      such
      Letter of Credit, computed at a rate per annum in an amount equal to the
      Applicable Margin for Letter of Credit Fees per annum with respect to Letter
      of
      Credit Fees of
      the
      available amount of such standby and/or documentary Letter of Credit, together
      with a fronting fee for the Issuing Bank’s own account computed at a rate of
      0.25% per annum. Accrued Letter of Credit Fees and such fronting fees shall
      be
      due and payable monthly in arrears on the first Business Day of each month
      and
      on the first Business Day on or after the termination of the Total Commitment
      upon which no Letters of Credit remain outstanding. In respect of each Letter
      of
      Credit, the Borrowers shall also pay to the Administrative Agent for the Issuing
      Bank’s own account, at such other time or times as such charges are customarily
      made by the Issuing Bank, the Issuing Bank’s customary issuance, amendment,
      negotiation or document examination, and other administrative fees as in effect
      from time to time.

     

    
      	5.  	
              CERTAIN
                GENERAL PROVISIONS.

            

    

     

    5.1.  Administrative
      Agent’s Fee.
      The
      Borrowers shall pay to the Administrative Agent annually in advance, for the
      Administrative Agent’s own account, on the Effective Date and on
      each anniversary
      of the Effective Date, an Administrative Agent’s fee (the “Administrative
      Agent’s Fee”)
      as set
      forth in the Fee Letter.

     

    5.2.  Funds
      for Payments.

     

    5.2.1.  Payments
      to Administrative Agent.
      All
      payments of principal, interest, Reimbursement Obligations, Fees and any other
      amounts due hereunder or under any of the other Loan Documents shall be made
      on
      the due date thereof to the Administrative Agent in Dollars, for the respective
      accounts of the Lenders and the Administrative Agent or the Issuing Bank, as
      the
      case may be, at the Administrative Agent’s Office or at such other place that
      the Administrative Agent may from time to time designate, in each case at or
      about 11:00 a.m. (Connecticut time) and in immediately available funds. The
      Borrowers authorize the Administrative Agent to debit any account maintained
      by
      any Borrower with the Administrative Agent and/or to charge the loan account
      of
      the Borrowers for any payment required to be made hereunder with respect to
      the
      Borrowers.

     

    5.2.2.  No
      Offset, etc.
      All
      payments by the Borrowers hereunder and under any of the other Loan Documents
      shall be made without recoupment, setoff or counterclaim and free and clear
      of
      and without deduction for any taxes, levies, imposts, duties, charges, fees,
      deductions, withholdings, compulsory loans, restrictions or conditions of any
      nature now or hereafter imposed or levied by any jurisdiction or any political
      subdivision thereof or taxing or other authority therein unless the Borrowers
      are compelled by law to make such deduction or withholding. If any such
      obligation is imposed upon the Borrowers with respect to any amount payable
      by
      them hereunder or under any of the other Loan Documents, the Borrowers will
      pay
      to the Administrative Agent, for the account of the Lenders or (as the case
      may
      be) the Administrative Agent, on the date on which such amount is due and
      payable hereunder or under such other Loan Document, such additional amount
      in
      Dollars as shall be necessary to enable the Lenders, the Issuing Bank or the
      Administrative Agent to receive the same net amount which the Lenders, the
      Issuing Bank or the Administrative Agent would have received on such due date
      had no such obligation been imposed upon the Borrowers. The Borrowers will
      deliver promptly to the Administrative Agent certificates or other valid
      vouchers for all taxes or other charges deducted from or paid with respect
      to
      payments made by the Borrowers hereunder or under such other Loan
      Document.

     

    5.2.3.  Non-U.S.
      Lenders.
      Each
      Lender and the Administrative Agent that is not a U.S. Person as defined in
      Section 7701(a)(30) of the Code for federal income tax purposes (a “Non-U.S.
      Lender”)
      hereby
      agrees that, if and to the extent it is legally able to do so, it shall, prior
      to the date of the first payment by the Borrowers hereunder to be made to such
      Lender or the Administrative Agent or for such Lender’s or the Administrative
      Agent’s account, deliver to the Borrowers and the Administrative Agent, as
      applicable, such certificates, documents or other evidence, as and when required
      by the Code or Treasury Regulations issued pursuant thereto, including (a)
      in
      the case of a Non-U.S. Lender that is a “bank” for purposes of Section
      881(c)(3)(A) of the Code, two (2) duly completed copies of Internal Revenue
      Service Form W-8BEN or Form W-8ECI and any other certificate or statement of
      exemption required by Treasury Regulations, or any subsequent versions thereof
      or successors thereto, properly completed and duly executed by such Lender
      or
      the Administrative Agent establishing that with respect to payments of
      principal, interest or fees hereunder it is (i) not subject to United States
      federal withholding tax under the Code because such payment is effectively
      connected with the conduct by such Lender or Administrative Agent of a trade
      or
      business in the United States or (ii) totally exempt or partially exempt from
      United States federal withholding tax under a provision of an applicable tax
      treaty and (b) in the case of a Non-U.S. Lender that is not a “bank” for
      purposes of Section 881(c)(3)(A) of the Code, a certificate in form and
      substance reasonably satisfactory to the Administrative Agent and the Borrowers
      and to the effect that such Non-U.S. Lender (i) is not a “bank” for purposes of
      Section 881(c)(3)(A) of the Code, is not subject to regulatory or other legal
      requirements as a bank in any jurisdiction, and has not been treated as a bank
      for purposes of any tax, securities law or other filing or submission made
      to
      any governmental authority, any application made to a rating agency or
      qualification for any exemption from any tax, securities law or other legal
      requirements, (ii) is not a ten (10) percent shareholder for purposes of
      Section 881(c)(3)(B) of the Code and (iii) is not a controlled foreign
      corporation receiving interest from a related person for purposes of Section
      881(c)(3)(C) of the Code, together with a properly completed Internal Revenue
      Service Form W-8 or W-9, as applicable (or successor forms). Each Lender or
      the
      Administrative Agent agrees that it shall, promptly upon a change of its lending
      office or the selection of any additional lending office, to the extent the
      forms previously delivered by it pursuant to this section are no longer
      effective, and promptly upon a Borrower’s or the Administrative Agent’s
      reasonable request after the occurrence of any other event (including the
      passage of time) requiring the delivery of a Form W-8BEN, Form W-8ECI, Form
      W-8
      or W-9 in addition to or in replacement of the forms previously delivered,
      deliver to the Borrowers and the Administrative Agent, as applicable, if and
      to
      the extent it is properly entitled to do so, a properly completed and executed
      Form W-8BEN, Form W-8ECI, Form W-8 or W-9, as applicable (or any successor
      forms
      thereto).

     

    5.3.  Computations.
      All
      computations of interest on the Loans and of Fees shall be based on a 360-day
      year and paid for the actual number of days elapsed. Except as otherwise
      provided in the definition of the term “Interest Period” with respect to LIBOR
      Rate Loans, whenever a payment hereunder or under any of the other Loan
      Documents becomes due on a day that is not a Business Day, the due date for
      such
      payment shall be extended to the next succeeding Business Day, and interest
      shall accrue during such extension. The outstanding amount of the Loans as
      reflected on the Revolving Credit Note Records from time to time shall be
      considered correct and binding on the Borrowers unless within five (5) Business
      Days after receipt of any notice by any Borrower from the Administrative Agent
      or any of the Lenders of such outstanding amount, the Borrowers shall notify
      the
      Administrative Agent or such Lender to the contrary.

     

    5.4.  Inability
      to Determine LIBOR Rate.
      In the
      event, prior to the commencement of any Interest Period relating to any LIBOR
      Rate Loan, the Administrative Agent shall determine or
      be
      notified by the Required Lenders that (a) adequate and reasonable methods do
      not
      exist for ascertaining the LIBOR Rate that would otherwise determine the rate
      of
      interest to be applicable to any LIBOR Rate Loan during any Interest Period
      or
      (b) the LIBOR Rate determined or to be determined for such Interest Period
      will
      not adequately and fairly reflect the cost to the Lenders of making or
      maintaining their LIBOR Rate Loans during such period, the Administrative Agent
      shall forthwith give notice of such determination (which shall be conclusive
      and
      binding on the Borrowers and the Lenders) to the Borrowers and the Lenders.
      In
      such event (i) any Loan Request or Conversion Request with respect to LIBOR
      Rate
      Loans shall be automatically withdrawn and shall be deemed a request for Base
      Rate Loans, (ii) each LIBOR Rate Loan will automatically, on the last day of
      the
      then current Interest Period relating thereto, become a Base Rate Loan, and
      (iii) the obligations of the Lenders to make LIBOR Rate Loans shall be suspended
      until the Administrative Agent determines that the circumstances giving rise
      to
      such suspension no longer exist, whereupon the Administrative Agent shall
      so
      notify the Borrowers and the Lenders.

     

    5.5.  Illegality.
      Notwithstanding any other provisions herein, if any present or future law,
      regulation, treaty or directive or the interpretation or application thereof
      shall make it unlawful for any Lender to make or maintain LIBOR Rate Loans,
      such
      Lender shall forthwith give notice of such circumstances to the Borrowers and
      the other Lenders and thereupon (a) the commitment of such Lender to make LIBOR
      Rate Loans or convert Base Rate Loans to LIBOR Rate Loans shall forthwith be
      suspended and (b) such Lender’s Loans then outstanding as LIBOR Rate Loans, if
      any, shall be converted automatically to Base Rate Loans on the last day of
      each
      Interest Period applicable to such LIBOR Rate Loans or within such earlier
      period as may be required by law. The Borrowers hereby jointly and severally
      agree promptly to pay the Administrative Agent for the account of such Lender,
      upon demand by such Lender, any additional amounts necessary to compensate
      such
      Lender for any costs incurred by such Lender in making any conversion in
      accordance with this §5.5, including any interest or fees payable by such Lender
      to lenders of funds obtained by it in order to make or maintain its LIBOR Rate
      Loans hereunder.

     

    5.6.  Additional
      Costs, etc.
      If any
      present or future applicable law, which expression, as used herein, includes
      statutes, rules and regulations thereunder and interpretations thereof by any
      competent court or by any governmental or other regulatory body or official
      charged with the administration or the interpretation thereof and requests,
      directives, instructions and notices at any time or from time to time hereafter
      made upon or otherwise issued to any Lender or the Administrative Agent by
      any
      central bank or other fiscal, monetary or other authority (whether or not having
      the force of law), shall:

     

    (a)  subject
      any Lender or the Administrative Agent to any tax, levy, impost, duty, charge,
      fee, deduction or withholding of any nature with respect to this Credit
      Agreement, the other Loan Documents, any Letters of Credit, such Lender’s
      Commitment or the Loans (other than taxes based upon or measured by the income
      or profits of such Lender or the Administrative Agent), or

     

    (b)  materially
      change the basis of taxation (except for changes in taxes on income or profits)
      of payments to any Lender of the principal of or the interest on any Loans
      or
      any other amounts payable to any Lender or the Administrative Agent under this
      Credit Agreement or any of the other Loan Documents, or

     

    (c)  impose
      or
      increase or render applicable (other than to the extent specifically provided
      for elsewhere in this Credit Agreement) any special deposit, reserve,
      assessment, liquidity, capital adequacy or other similar requirements (whether
      or not having the force of law) against assets held by, or deposits in or for
      the account of, or loans by, or letters of credit issued by, or commitments
      of
      an office of any Lender, or

     

    (d)  impose
      on
      any Lender or the Administrative Agent any other conditions or requirements
      with
      respect to this Credit Agreement, the other Loan Documents, any Letters of
      Credit, the Loans, such Lender’s Commitment, or any class of loans, letters of
      credit or commitments of which any of the Loans or such Lender’s Commitment
      forms a part, and the result of any of the foregoing is:

     

    (i)  to
      increase the cost to any Lender of making, funding, issuing, renewing, extending
      or maintaining any of the Loans or such Lender’s Commitment or any Letter of
      Credit, or

     

    (ii)  to
      reduce
      the amount of principal, interest, Reimbursement Obligation or other amount
      payable to such Lender or the Administrative Agent hereunder on account of
      such
      Lender’s Commitment, any Letter of Credit or any of the Loans, or

     

    (iii)  to
      require such Lender or the Administrative Agent to make any payment or to forego
      any interest or Reimbursement Obligation or other sum payable hereunder, the
      amount of which payment or foregone interest or Reimbursement Obligation or
      other sum is calculated by reference to the gross amount of any sum receivable
      or deemed received by such Lender or the Administrative Agent from the Borrowers
      hereunder,

     

    then,
      and
      in each such case, the Borrowers will, upon demand made by such Lender or (as
      the case may be) the Administrative Agent at any time and from time to time
      and
      as often as the occasion therefor may arise, pay to such Lender or the
      Administrative Agent such additional amounts as will be sufficient to compensate
      such Lender or the Administrative Agent for such additional cost, reduction,
      payment or foregone interest or Reimbursement Obligation or other
      sum.

     

    5.7.  Capital
      Adequacy.
      If
      after the date hereof any Lender or the Administrative Agent determines that
      (a)
      the adoption of or change in any law, governmental rule, regulation, policy,
      guideline or directive (whether or not having the force of law) regarding
      capital requirements for banks or bank holding companies or any change in the
      interpretation or application thereof by a Governmental Authority with
      appropriate jurisdiction, or (b) compliance by such Lender or the Administrative
      Agent or any corporation controlling such Lender or the Administrative Agent
      with any law, governmental rule, regulation, policy, guideline or directive
      (whether or not having the force of law) of any such entity regarding capital
      adequacy, has the effect of reducing the return on such Lender’s or the
      Administrative Agent’s commitment with respect to any Loans to a level below
      that which such Lender or the Administrative Agent could have achieved but
      for
      such adoption, change or compliance (taking into consideration such Lender’s or
      the Administrative Agent’s then existing policies with respect to capital
      adequacy and assuming full utilization of such entity’s capital) by any amount
      deemed by such Lender or (as the case may be) the Administrative Agent to be
      material, then such Lender or the Administrative Agent may notify the Borrowers
      of such fact. To the extent that the amount of such reduction in the return
      on
      capital is not reflected in the Base Rate, the Borrowers jointly and severally
      agree to pay such Lender or (as the case may be) the Administrative Agent for
      the amount of such reduction in the return on capital as and when such reduction
      is determined upon presentation by such Lender or (as the case may be) the
      Administrative Agent of a certificate in accordance with §5.8 hereof. Each
      Lender shall allocate such cost increases among its customers in good faith
      and
      on an equitable basis.

     

    5.8.  Certificate.
      A
      certificate setting forth any additional amounts payable pursuant to §§5.6 or
      5.7 and a brief explanation of such amounts which are due, submitted by any
      Lender or the Administrative Agent to the Borrowers, shall be conclusive, absent
      manifest error, that such amounts are due and owing.

     

    5.9.  Indemnity.
      The
      Borrowers jointly and severally agree to indemnify each Lender and to hold
      each
      Lender harmless from and against any loss, cost or expense (including loss
      of
      anticipated profits) that such Lender may sustain or incur as a consequence
      of
      (a) default by the Borrowers in payment of the principal amount of or any
      interest on any LIBOR Rate Loans as and when due and payable, including any
      such
      loss or expense arising from interest or fees payable by such Lender to lenders
      of funds obtained by it in order to maintain its LIBOR Rate Loans, (b) default
      by the Borrowers in making a borrowing or conversion after the Borrowers have
      given (or are deemed to have given) a Loan Request or a Conversion Request
      relating thereto in accordance with §2.6 or §2.7 or
      (c)
      the making of any payment of a LIBOR Rate Loan or the making of any conversion
      of any such Loan to a Base Rate Loan on a day that is not the last day of the
      applicable Interest Period with respect thereto, including interest or fees
      payable by such Lender to lenders of funds obtained by it in order to maintain
      any such Loans.

     

    5.10.  Interest
      After Default.
      During
      the continuance of a Default or an Event of Default (a) the principal of and
      (to
      the extent permitted by applicable law) interest on the Loans and all Unpaid
      Reimbursement Obligations and all other overdue amounts payable hereunder or
      under any of the other Loan Documents shall bear interest compounded monthly
      and
      payable on demand at a rate per annum equal to two percent (2%) above the rate
      of interest then otherwise applicable thereto (or, if no rate of interest is
      then applicable thereto, two percent (2%) above the Base Rate) until such amount
      shall be paid in full (after as well as before judgment) and (b) the Applicable
      Margin for purposes of calculating the Letter of Credit Fees shall be a rate
      that is two percent (2%) above the Applicable Margin then otherwise applicable
      thereto.

     

    5.11.  Replacement
      of Lenders.
      If any
      Lender (an “Affected
      Lender”)
      (a)
      makes demand upon the Borrowers for (or if the Borrowers are otherwise required
      to pay) amounts pursuant to §§5.6 or 5.7, (b) is unable to make or maintain
      LIBOR Rate Loans as a result of a condition described in §5.5, or (c) defaults
      in its obligation to make Loans in accordance with the terms of this Credit
      Agreement or purchase any Letter of Credit Participation, the Borrowers may,
      so
      long as no Default or Event of Default has occurred and is then continuing,
      within ninety (90) days of receipt of such demand, notice (or the occurrence
      of
      such other event causing the Borrowers to be required to pay such compensation
      or causing §5.5 to be applicable), or default, as the case may be, by notice (a
“Replacement
      Notice”)
      in
      writing to the Administrative Agent and such Affected Lender (i) request the
      Affected Lender to cooperate with the Borrowers in obtaining a replacement
      Lender satisfactory to the Administrative Agent and the Borrowers (the
“Replacement
      Lender”);
      (ii)
      request the non-Affected Lenders to acquire and assume all of the Affected
      Lender’s Loans and Commitment as provided herein, but none of such Lenders shall
      be under an obligation to do so; or (iii) designate a Replacement Lender
      approved by the Administrative Agent, such approval not to be unreasonably
      withheld or delayed. If any satisfactory Replacement Lender shall be obtained,
      and/or if any one or more of the non-Affected Lenders shall agree to acquire
      and
      assume all of the Affected Lender’s Loans and Commitment, then such Affected
      Lender shall assign, in accordance with §15, all of its Commitment, Loans,
      Letter of Credit Participations, Notes and other rights and obligations under
      this Credit Agreement and all other Loan Documents to such Replacement Lender
      or
      non-Affected Lenders, as the case may be, in exchange for payment of the
      principal amount so assigned and all interest and fees accrued on the amount
      so
      assigned, plus all other Obligations then due and payable to the Affected
      Lender; provided,
      however,
      that
      (A) such assignment shall be without recourse, representation or warranty and
      shall be on terms and conditions reasonably satisfactory to such Affected Lender
      and such Replacement Lender and/or non-Affected Lenders, as the case may be,
      and
      (B) prior to any such assignment, the Borrowers shall have paid to such Affected
      Lender all amounts properly demanded and unreimbursed under §§5.6 and 5.7. Upon
      the effective date of such assignment, the Borrowers shall issue replacement
      Notes to such Replacement Lender and/or non-Affected Lenders, as the case may
      be, and such institution shall become a “Lender” for all purposes under this
      Credit Agreement and the other Loan Documents.

     

    
      	6.  	
              COLLATERAL
                SECURITY.

            

    

     

    The
      Obligations shall be secured by a perfected first priority security interest
      in
      the Collateral (subject only to Permitted Liens entitled to priority under
      applicable law) pursuant to the terms of the Security Documents.

     

    
      	7.  	
              REPRESENTATIONS
                AND WARRANTIES.

            

    

     

    Each
      of
      the Borrowers represents and warrants to the Lenders and the Administrative
      Agent as follows:

     

    7.1.  Corporate
      Authority.

     

    7.1.1.  Incorporation;
      Good Standing.
      Each of
      the Borrowers and their Subsidiaries (a) is a corporation (or other business
      entity) duly organized and validly existing under the laws of its jurisdiction
      of incorporation or formation, (b) has all requisite corporate (or the
      equivalent company) power to own its property and conduct its business as now
      conducted and as presently contemplated, and (c) is in good standing as a
      foreign corporation (or other business entity) and is duly authorized to do
      business in each jurisdiction where such qualification is necessary except
      where
      a failure to be so qualified would not have a Material Adverse
      Effect.

     

    7.1.2.  Authorization.
      The
      execution, delivery and performance of this Credit Agreement, the other Loan
      Documents and the Signature Fruit Purchase Agreement to which the Borrowers
      are
      or are to become parties and the transactions contemplated hereby and thereby,
      including, without limitation, the acquisition of Signature Fruit by Parent,
      (a)
      are within the corporate (or the equivalent company) authority of such Persons,
      (b) have been duly authorized by all necessary corporate (or the equivalent
      company) proceedings, (c) do not and will not conflict with or result in any
      breach or contravention of any provision of law, statute, rule or regulation
      to
      which any Borrower is subject or any judgment, order, writ, injunction, license
      or permit applicable to any Borrower, and (d) do not conflict with any provision
      of the Governing Documents of, or any agreement or other instrument binding
      upon, any Borrower.

     

    7.1.3.  Enforceability.
      The
      execution and delivery of this Credit Agreement and the other Loan Documents
      to
      which the Borrowers are or are to become parties will result in valid and
      legally binding obligations of such Persons enforceable against them in
      accordance with the respective terms and provisions hereof and thereof, except
      as enforceability is limited by bankruptcy, insolvency, reorganization,
      moratorium or other laws relating to or affecting generally the enforcement
      of
      creditors’ rights and except to the extent that availability of the remedy of
      specific performance or injunctive relief is subject to the discretion of the
      court before which any proceeding therefor may be brought.

     

    7.2.  Governmental
      Approvals.
      The
      execution, delivery and performance by the Borrowers of this Credit Agreement,
      the other Loan Documents and the Signature Fruit Purchase Agreement to which
      any
      of the Borrowers is or is to become a party and the transactions contemplated
      hereby and thereby do not require the approval or consent of, or filing with,
      any governmental agency or authority other than those already obtained and
      filed, and all applicable waiting periods (and any extensions thereof), if
      any,
      under the Hart-Scott-Rodino Act have expired or otherwise been
      terminated.

     

    7.3.  Title
      to Properties; Leases.
      Except
      as set forth on Schedule 7.3
      hereto,
      Parent and its Subsidiaries own all of the assets reflected in the consolidated
      balance sheet of Parent and its Subsidiaries as at the Balance Sheet Date or
      acquired since that date (except property and assets sold or otherwise disposed
      of in the ordinary course of business since that date), subject to no Liens
      or
      other rights of others, except Permitted Liens. Neither Seneca Snack nor Marion
      collectively have any Accounts Receivable in excess of $50,000 in the aggregate
      at any time.

     

    7.4.  Financial
      Statements and Projections.

     

    7.4.1.  Fiscal
      Year.
      Parent
      and each of its Subsidiaries (other than Signature Fruit and its Subsidiaries)
      have fiscal years which are the twelve months ending on March 31 of each year.
      As
      of the
      Closing Date, Signature Fruit and each of its Subsidiaries have fiscal years
      which are the twelve months ending on December 31 of each year and, on or before
      December 31, 2006 Signature Fruit and its Subsidiaries will be changing their
      fiscal years to a fiscal year which ends on March 31 of each year.

     

    7.4.2.  Financial
      Statements.
      There
      has been furnished to each of the Lenders a consolidated balance sheet of the
      Parent and its Subsidiaries (other than Signature Fruit) as at the Balance
      Sheet
      Date and as at March 31, 2006, and a consolidated statement of income of the
      Parent and its Subsidiaries (other than Signature Fruit) for the Fiscal Quarter
      ended on the Balance Sheet Date and the fiscal year ended on March 31, 2006,
      the
      annual statements having been certified by BDO Seidman, LLP. There has been
      furnished to the Lenders a consolidated balance sheet of Signature Fruit as
      at
      December 31, 2005 and as at the Balance Sheet Date, and a consolidated statement
      of income of Signature Fruit for the fiscal year ended December 31, 2005 and
      for
      the six months ended on the Balance Sheet Date, the annual statements of
      Signature Fruit having been certified by Ernst & Young LLP. Such balance
      sheets and statements of income have been prepared in accordance with GAAP
      and
      fairly present the financial condition of Parent and its Subsidiaries and
      Signature Fruit, respectively, as at the close of business on the dates thereof
      and the results of operations for the periods then ended. There were no
      contingent liabilities of Parent or any of its Subsidiaries as of such dates
      involving material amounts, known to the officers of any Borrower, which were
      not disclosed in such balance sheets and the notes related thereto.

     

    7.4.3.  Projections.
      The
      projections of the annual operating budgets of the Borrowers and their
      Subsidiaries on a consolidated basis, balance sheets and cash flow statements
      for the 2006 to 2008 fiscal years, copies of which have been delivered to each
      Lender, disclose all assumptions made with respect to general economic,
      financial and market conditions used in formulating such projections. To the
      knowledge of the Borrowers, no facts exist that (individually or in the
      aggregate) would result in any material change in any of such projections.
      The
      projections are based upon reasonable estimates and assumptions, have been
      prepared on the basis of the assumptions stated therein and reflect the
      reasonable estimates of the Borrowers and their Subsidiaries of the results
      of
      operations and other information projected therein.

     

    7.5.  No
      Material Adverse Changes, etc.
      Since
      December 31, 2005 there has been no event or occurrence which has had a Material
      Adverse Effect. Except as set forth in Schedule
      7.5
      hereto,
      since December 31, 2005, no Borrower has made any Restricted
      Payment.

     

    7.6.  Franchises,
      Patents, Copyrights, etc.
      The
      Borrowers and each of their Subsidiaries possess all franchises, patents,
      copyrights, trademarks, trade names, licenses and permits, and rights in respect
      of the foregoing, adequate for the conduct of their business substantially
      as
      now conducted without known conflict with any rights of others. Schedule
      7.6
      hereto
      sets forth a correct and complete list of all of the Signature Fruit’s
      Proprietary Rights. None of the Proprietary Rights is subject to any licensing
      agreement or similar arrangement except as set forth on Schedule
      7.6.
      To the
      best of Signature Fruit’s knowledge, none of the Proprietary Rights infringes on
      or conflicts with any other Person’s property, and no other Person’s property
      infringes on or conflicts with the Proprietary Rights. The Proprietary Rights
      described on Schedule
      7.6
      constitute all of the property of such type necessary to the current and
      anticipated future conduct of Signature Fruit’s business.

     

    7.7.  Litigation.
      Except
      as set forth in Schedule 7.7
      hereto,
      there are no actions, suits, proceedings or investigations of any kind pending
      or threatened against the Borrowers or any of their Subsidiaries before any
      Governmental Authority, that, (a) if adversely determined, might, either in
      any
      case or in the aggregate, (i) have a Material Adverse Effect or (ii) materially
      impair the right of the Borrowers and their Subsidiaries, considered as a whole,
      to carry on business substantially as now conducted by them, or result in any
      substantial liability not adequately covered by insurance, or for which adequate
      reserves are not maintained on the consolidated balance sheet of Parent and
      its
      Subsidiaries, or (b) question the validity of this Credit Agreement or any
      of
      the other Loan Documents, or any action taken or to be taken pursuant hereto
      or
      thereto.

     

    7.8.  No
      Materially Adverse Contracts, etc.
      Neither
      any Borrower nor any of their Subsidiaries is subject to any Governing Document
      or other legal restriction, or any judgment, decree, order, law, statute, rule
      or regulation that has or is expected in the future to have a Material Adverse
      Effect. Neither any Borrower nor any of their Subsidiaries is a party to any
      contract or agreement that has or is expected, in the judgment of Parent’s
      officers, to have any Material Adverse Effect.

     

    7.9.  Compliance
      with Other Instruments, Laws, etc.
      Neither
      any Borrower nor any of their Subsidiaries is in violation of any provision
      of
      its Governing Documents, or any agreement or instrument (including any agreement
      or instrument which may be affected by the acquisition of Signature Fruit by
      Parent) to which it may be subject or by which it or any of its properties
      may
      be bound or any decree, order, judgment, statute, license, rule or regulation,
      in any of the foregoing cases in a manner that could result in the imposition
      of
      substantial penalties or have a Material Adverse Effect.

     

    7.10.  Tax
      Status.
      The
      Borrowers and their Subsidiaries (a) have made or filed all federal, state
      and
      foreign income and all other tax returns, reports and declarations required
      by
      any jurisdiction to which any of them is subject, except
      for such
      returns, reports and declaration in respect of amounts which do not, in the
      aggregate, exceed $500,000, (b) have paid all taxes and other governmental
      assessments and charges shown or determined to be due on such returns, reports
      and declarations, except those being contested in good faith and by appropriate
      proceedings and (c) have set aside on their books provisions reasonably adequate
      for the payment of all taxes for periods subsequent to the periods to which
      such
      returns, reports or declarations apply. There are no unpaid taxes in any
      material amount claimed to be due by the taxing authority of any jurisdiction,
      and none of the officers of the Borrowers know of any basis for any such claim.
      The Borrowing Base Report most recently delivered to the Administrative Agent
      sets forth the amount of reserves established by each of the Borrowers and
      each
      of their Subsidiaries to cover such Borrower’s or such Subsidiary’s sales or use
      tax obligations in each jurisdiction where such Borrower or such Subsidiary
      is
      required to pay such taxes. Such reserves are adequate for the payment of all
      of
      such obligations.

     

    7.11.  No
      Event of Default.
      No
      Default or Event of Default has occurred and is continuing.

     

    7.12.  Holding
      Company and Investment Company Acts.
      Neither
      any Borrower nor any of their Subsidiaries is a “holding company”, or a
“subsidiary company” of a “holding company”, or an “affiliate” of a “holding
      company”, as such terms are defined in the Public Utility Holding Company Act of
      1935; nor is it an “investment company”, or an “affiliated company” or a
“principal underwriter” of an “investment company”, as such terms are defined in
      the Investment Company Act of 1940.

     

    7.13.  Absence
      of Financing Statements, etc.
      Except
      with respect to Permitted Liens, there is no financing statement, security
      agreement, chattel mortgage, real estate mortgage or other document filed or
      recorded with any filing records, registry or other public office, that purports
      to cover, affect or give notice of any present or possible future Lien on any
      assets or property of the Borrowers or any of their Subsidiaries or any rights
      relating thereto.

     

    7.14.  Perfection
      of Security Interest.
      All
      filings, assignments, pledges and deposits of documents or instruments have
      been
      made and all other actions have been taken that are necessary or advisable,
      under applicable law, to establish and perfect the Administrative Agent’s first
      priority security interest in the Collateral. The Collateral and the
      Administrative Agent’s rights with respect to the Collateral are not subject to
      any setoff, claims, withholdings or other defenses. The Borrowers are the owners
      of the Collateral free from any Lien, except for Permitted Liens.

     

    7.15.  Certain
      Transactions.
      Except
      for arm’s length transactions pursuant to which a Borrower or any of their
      Subsidiaries makes payments in the ordinary course of business upon terms no
      less favorable than such Borrower or Subsidiary could obtain from third parties,
      none of the officers, directors, or employees of the Borrowers or any of their
      Subsidiaries is presently a party to any transaction with any Borrower or any
      of
      their Subsidiaries (other than for services as employees, officers and
      directors), including any contract, agreement or other arrangement providing
      for
      the furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of the Borrowers, any
      corporation, partnership, trust or other entity in which any officer, director,
      or any such employee has a substantial interest or is an officer, director,
      trustee or partner.

     

    7.16.  Employee
      Benefit Plans.

     

    7.16.1.  In
      General.
      Each
      Employee Benefit Plan and each Guaranteed Pension Plan is in compliance in
      all
      material respects with the provisions of ERISA and all Applicable Pension
      Legislation and, to the extent applicable, the Code, including but not limited
      to the provisions thereunder respecting prohibited transactions and the bonding
      of fiduciaries and other persons handling plan funds as required by §412 of
      ERISA.

     

    7.16.2.  Guaranteed
      Pension Plans.
      Each
      contribution required to be made to a Guaranteed Pension Plan, whether required
      to be made to avoid the incurrence of an accumulated funding deficiency, the
      notice or lien provisions of §302(f) of ERISA, or otherwise, has been timely
      made. No waiver of an accumulated funding deficiency or extension of
      amortization periods has been received with respect to any Guaranteed Pension
      Plan, and neither any Borrower nor any ERISA Affiliate is obligated to or has
      posted security in connection with an amendment to a Guaranteed Pension Plan
      pursuant to §307 of ERISA or §401(a)(29) of the Code. No liability to the PBGC
      (other than required insurance premiums, all of which have been paid) has been
      incurred by any Borrower or any ERISA Affiliate with respect to any Guaranteed
      Pension Plan and there has not been any ERISA Reportable Event (other than
      an
      ERISA Reportable Event as to which the requirement of 30 days notice has been
      waived), or any other event or condition which presents a material risk of
      termination of any Guaranteed Pension Plan by the PBGC. Based on the latest
      valuation of each Guaranteed Pension Plan, and on the actuarial methods and
      assumptions employed for long-term funding purposes in that valuation, the
      aggregate benefit liabilities of all such Guaranteed Pension Plans within the
      meaning of §4001 of ERISA did not exceed the aggregate value of the assets of
      all such Guaranteed Pension Plans by more than an amount that would have a
      Material Adverse Effect disregarding for this purpose the benefit liabilities
      and assets of any Guaranteed Pension Plan with assets in excess of benefit
      liabilities.

     

    7.16.3.  Multiemployer
      Plans.
      Neither
      any Borrower nor any ERISA Affiliate has incurred any liability (including
      secondary liability) to any Multiemployer Plan as a result of a complete or
      partial withdrawal from such Multiemployer Plan under §4201 of ERISA or as a
      result of a sale of assets described in §4204 of ERISA that is reasonably
      expected to have a Material Adverse Effect. Neither any Borrower nor any ERISA
      Affiliate has been notified that any Multiemployer Plan is in reorganization
      or
      insolvent under and within the meaning of §4241 or §4245 of ERISA or is at risk
      of entering reorganization or becoming insolvent, or that any Multiemployer
      Plan
      intends to terminate or has been terminated under §4041A of ERISA, other than in
      a case in which the reorganization, insolvency or termination is not reasonably
      expected to have a Material Adverse Effect.

     

    7.17.  Use
      of Proceeds.

     

    7.17.1.  General.
      The
      proceeds of the Loans shall be used to fund (a) on the Effective Date a portion
      of the amount needed to finance the acquisition of Signature Fruit, (b) to
      refinance on the Effective Date certain existing Indebtedness of the Borrowers,
      (c) to make Permitted Acquisitions and (d) for working capital and general
      corporate purposes. The Borrowers will obtain Letters of Credit solely for
      working capital and general corporate purposes.

     

    7.17.2.  Regulations
      U and X.
      No
      portion of any Loan is to be used, and no portion of any Letter of Credit is
      to
      be obtained, for the purpose of purchasing or carrying any “margin security” or
“margin stock” as such terms are used in Regulations U and X of the Board of
      Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and
      224.

     

    7.17.3.  Ineligible
      Securities.
      No
      portion of the proceeds of any Loans is to be used, and no portion of any Letter
      of Credit is to be obtained, for the purpose of knowingly purchasing, or
      providing credit support for the purchase of, during the underwriting or
      placement period or within thirty (30) days thereafter, any Ineligible
      Securities underwritten or privately placed by a Financial
      Affiliate.

     

    7.18.  Environmental
      Compliance.
      The
      Borrowers have taken steps to investigate the condition and usage of the Real
      Estate and the operations conducted thereon and, based upon such investigation,
      have determined that:

     

    (a)  none
      of
      the Borrowers, their Subsidiaries or any operator of the Real Estate or any
      operations thereon is in violation, or alleged violation, of any judgment,
      decree, order, law, license, rule or regulation pertaining to environmental
      matters, including without limitation, those arising under the Resource
      Conservation and Recovery Act (“RCRA”),
      the
      Comprehensive Environmental Response, Compensation and Liability Act of 1980
      as
      amended (“CERCLA”),
      the
      Superfund Amendments and Reauthorization Act of 1986 (“SARA”),
      the
      Federal Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control
      Act, or any state, local or foreign law, statute, regulation, ordinance, order
      or decree relating to health, safety or the environment (hereinafter
“Environmental
      Laws”),
      which
      violation could have a material adverse effect on the environment or a Material
      Adverse Effect;

     

    (b)  neither
      any of the Borrowers nor any of their Subsidiaries has received notice from
      any
      third party including, without limitation, any Governmental Authority, (i)
      that
      any one of them has been identified by the United States Environmental
      Protection Agency (“EPA”)
      as a
      potentially responsible party under CERCLA with respect to a site listed on
      the
      National Priorities List, 40 C.F.R. Part 300 Appendix B; (ii) that any hazardous
      waste, as defined by 42 U.S.C. §6903(5), any hazardous substances as defined by
      42 U.S.C. §9601(14), any pollutant or contaminant as defined by 42 U.S.C.
§9601(33) and any toxic substances, oil or hazardous materials or other
      chemicals or substances regulated by any Environmental Laws (“Hazardous
      Substances”)
      which
      any one of them has generated, transported or disposed of has been found at
      any
      site at which a Governmental Authority has conducted or has ordered that the
      Borrowers or any of their Subsidiaries conduct a remedial investigation, removal
      or other response action pursuant to any Environmental Law; or (iii) that it
      is
      or shall be a named party to any claim, action, cause of action, complaint,
      or
      legal or administrative proceeding (in each case, contingent or otherwise)
      arising out of any third party’s incurrence of costs, expenses, losses or
      damages of any kind whatsoever in connection with the release of Hazardous
      Substances;

     

    (c)  except
      as
      set forth on Schedule 7.18
      attached
      hereto: (i) no portion of the Real Estate has been used for the handling,
      processing, storage or disposal of Hazardous Substances except in accordance
      with applicable Environmental Laws or except where the failure to have done
      so
      would not have a Material Adverse Effect; and no underground tank or other
      underground storage receptacle for Hazardous Substances is located on any
      portion of the Real Estate except in accordance with applicable Environmental
      Laws or except where the violation of any Environmental Laws would not have
      a
      Material Adverse Effect; (ii) in the course of any activities conducted by
      the
      Borrowers, their Subsidiaries or operators of its properties, no Hazardous
      Substances have been generated or are being used on the Real Estate except
      in
      accordance with applicable Environmental Laws or except where any noncompliance
      with such Environmental Laws would not have a Material Adverse Effect; (iii)
      there have been no releases (i.e. any past or present releasing, spilling,
      leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
      disposing or dumping) or threatened releases of Hazardous Substances on, upon,
      into or from the properties of the Borrowers or their Subsidiaries, which
      releases could have a material adverse effect on the value of any of the Real
      Estate or adjacent properties or the environment; (iv) to the best of the
      Borrowers’ knowledge, there have been no releases on, upon, from or into any
      real property in the vicinity of any of the Real Estate which, through soil
      or
      groundwater contamination, may have come to be located on, and which would
      have
      a material adverse effect on the value of, the Real Estate; and (v) in addition,
      any Hazardous Substances that have been generated on any of the Real Estate
      have
      been transported offsite only by carriers having an identification number issued
      by the EPA (or the equivalent thereof in any foreign jurisdiction), treated
      or
      disposed of only by treatment or disposal facilities maintaining valid permits
      as required under applicable Environmental Laws, which transporters and
      facilities have been and are, to the best of the Borrowers’ knowledge, operating
      in compliance with such permits and applicable Environmental Laws except where
      any such noncompliance would not have a Material Adverse Effect;
      and

     

    (d)  none
      of
      the Borrowers and their Subsidiaries or Real Estate is subject to any applicable
      Environmental Law requiring the performance of Hazardous Substances site
      assessments, or the removal or remediation of Hazardous Substances, or the
      giving of notice to any Governmental Authority or the recording or delivery
      to
      other Persons of an environmental disclosure document or statement by virtue
      of
      the transactions set forth herein and contemplated hereby or as a condition
      to
      the effectiveness of any other transactions contemplated hereby.

     

    7.19.  Subsidiaries,
      etc.
      The
      Persons listed on Schedule
      7.19
      hereto
      are the only Subsidiaries of Parent. Except as set forth on Schedule 7.19
      hereto,
      neither any of the Borrowers nor any Subsidiary of any of the Borrowers is
      engaged in any joint venture or partnership with any other Person. The
      jurisdiction of incorporation/formation and principal place of business of
      each
      Subsidiary of the Borrowers is listed on Schedule 7.19
      hereto.

     

    7.20.  Bank
      Accounts.
      Schedule 7.20
      sets
      forth the account numbers and location of all Local Accounts, Interim
      Concentration Accounts and other bank accounts of the Borrowers or any of their
      Subsidiaries.

     

    7.21.  Alliance
      Agreement.
      The
      Alliance Agreement is in full force and effect, and no Adverse GMOI Event has
      occurred.

     

    7.22.  Signature
      Fruit Purchase Agreement.
      The
“Closing Date”, as defined in the Signature Fruit Purchase Agreement, has
      occurred under the Signature Fruit Purchase Agreement, and (a) the purchase
      of
      limited liability company interests provided for therein have been consummated
      and the consideration therefor has been paid, (b) the representations and
      warranties of each of the parties to the Signature Fruit Purchase Agreement
      with
      respect to the business and financial condition of the limited liability company
      purchased and sold thereunder are, to the best of the knowledge of the
      Borrowers, true as of the date hereof, (c) each of the conditions to the
      obligations of Parent under the Signature Fruit Purchase Agreement was satisfied
      and none of such conditions were waived, (d) each of the parties to the
      Signature Fruit Purchase Agreement is, to the best of the knowledge of the
      Borrowers, in compliance with each of the covenants required to be performed
      by
      such party subsequent to the “Closing Date” (as defined in the Signature Fruit
      Purchase Agreement) of the Signature Fruit Purchase Agreement, and (e) no notice
      or claim has been given or made by any party to the Signature Fruit Purchase
      Agreement that such party is entitled to indemnification
      thereunder.

     

    7.23.  Hancock
      Amended and Restated Note Agreement Documents and the Master Reimbursement
      Agreement.
      The
      Hancock Amended and Restated Note Agreement Documents, the Master Reimbursement
      Agreement and the Hancock Signature Note Agreement Documents are in full force
      and effect and no “Default”, as defined therein, has occurred and is continuing
      thereunder.

     

    7.24.  PACA.
      No PACA
      Claims have ever been asserted against any of the Borrowers or their
      Subsidiaries. None of the Borrowers or their Subsidiaries has violated or failed
      to comply with PACA.

     

    7.25.  Subsidiary
      Business.
      Neither
      Seneca Foods International, Ltd., Signature Fruit (Tomato), Inc. nor
      Friday U.K., Limited engages
      in any business or has any assets.

     

    7.26.  Perfection
      Certificates.
      Except
      as set forth on Schedule
      7.26
      attached
      hereto, all of the information contained in the Perfection Certificates of
      the
      Parent, Seneca Snack and Marion remains true, correct and complete.

     

    7.27.  Food
      Security Act.
      Neither
      any Borrower nor any of their Subsidiaries has received any notice given
      pursuant to Section 1324(e)(1) or (3) of the Food Security Act and there
      has not been filed any financing statement or notice, purportedly in compliance
      with the provisions of the Food Security Act, purporting to perfect, or continue
      perfected, a security interest in farm products purchased by any Borrower or
      any
      Subsidiary in favor of a secured creditor of the seller of such farm products.
      The Borrowers and each of their Subsidiaries have registered pursuant to Section
      1324(c)(2)(D) of the Food Security Act, with the Secretary of State of each
      State in which are produced farm products purchased by any Borrower and any
      Subsidiary and which has established or hereafter establishes a central filing
      system, as a buyer of farm products produced in such State.

     

    7.28.  Disclosure.
      None of
      this Credit Agreement or any of the other Loan Documents contains any untrue
      statement of a material fact or omits to state a material fact necessary in
      order to make the statements herein or therein not misleading. There is no
      fact
      known to the Borrowers or any of their Subsidiaries which has a Material Adverse
      Effect, or which is reasonably likely in the future to have a Material Adverse
      Effect, exclusive of effects resulting from changes in general economic
      conditions, legal standards or regulatory conditions.

     

    
      	8.  	
              AFFIRMATIVE
                COVENANTS.

            

    

     

    The
      Borrowers covenant and agree that, so long as any Loan, Unpaid Reimbursement
      Obligation, Letter of Credit or Note is outstanding or any Lender has any
      obligation to make any Loans or the Issuing Bank has any obligation to issue,
      extend or renew any Letters of Credit:

     

    8.1.  Punctual
      Payment.
      The
      Borrowers will duly and punctually pay or cause to be paid the principal and
      interest on the Loans, all Reimbursement Obligations, the Letter of Credit
      Fees,
      the Unused Fees, the Administrative Agent’s Fee and all other amounts provided
      for in this Credit Agreement and the other Loan Documents to which any Borrower
      or any Subsidiary of a Borrower is a party, all in accordance with the terms
      of
      this Credit Agreement and such other Loan Documents.

     

    8.2.  Maintenance
      of Office.
      The
      Borrowers will maintain their chief executive office in Marion, New York, or
      at
      such other place in the United States of America as the Borrowers shall
      designate upon written notice to the Administrative Agent, where notices,
      presentations and demands to or upon the Borrowers in respect of the Loan
      Documents to which the Borrowers is a party may be given or made.

     

    8.3.  Records
      and Accounts.
      The
      Borrowers will (a) keep, and cause each of their Subsidiaries to keep, true
      and
      accurate records and books of account in which full, true and correct entries
      will be made in accordance with GAAP, (b) maintain adequate accounts and
      reserves for all taxes (including income taxes), depreciation, depletion,
      obsolescence and amortization of their properties and the properties of their
      Subsidiaries, contingencies, and other reserves, (c) maintain
      written records pertaining to perishable agricultural commodities and
      by-products and/or farm products in its possession to which a constructive
      trust
      under PACA or a Lien under the California Producer’s Lien Law is
      applicable,
      and (d)
      at all times engage BDO Seidman, LLP and/or other independent certified public
      accountants satisfactory to the Administrative Agent as the independent
      certified public accountants of Parent and its Subsidiaries and will not permit
      more than thirty (30) days to elapse between the cessation of such firm’s (or
      any successor firm’s) engagement as the independent certified public accountants
      of Parent and its Subsidiaries and the appointment in such capacity of a
      successor firm satisfactory to the Administrative Agent.

     

    8.4.  Financial
      Statements, Certificates and Information.
      The
      Borrowers will deliver to each of the Lenders (other than the items described
      in
      clause (f) of this Section 8.4, which the Borrower will deliver to the
      Administrative Agent and which the Administrative will, upon the request of
      any
      Lender, deliver to such Lender):

     

    (a)  as
      soon
      as practicable, but in any event not later than ninety (90) days after the
      end
      of each fiscal year of Parent, the consolidated and consolidating balance sheet
      of Parent and its Subsidiaries as at the end of such year, and the related
      consolidated and consolidating statement of income and consolidated statement
      of
      cash flow for such year, each setting forth in comparative form the figures
      for
      the previous fiscal year and all such consolidated and
      consolidating statements to be in reasonable detail, prepared in accordance
      with
      GAAP, and certified (with respect to the consolidated statements), without
      qualification and without an expression of uncertainty as to the ability of
      Parent or any of its Subsidiaries to continue as going concerns, by BDO Seidman,
      LLP and/or by other independent certified public accountants satisfactory to
      the
      Administrative Agent, together with (i) an audit report of such accountants
      stating that such consolidated financial statements fairly present in all
      material respects the consolidated financial condition and results of operations
      of Parent and its Subsidiaries as at the end of, and for, such fiscal year
      in
      accordance with GAAP and (ii) a copy of their accountants’ management letter for
      such fiscal year;

     

    (b)  (i)
      with
      respect to each of the first three Fiscal Quarters of each fiscal year of the
      Parent during which the Excess Availability Percentage is equal to or greater
      than 30% at all times, as soon as practicable, but in any event not later than
      forty-five (45) days after the end of each such Fiscal Quarter, copies of the
      unaudited consolidated and consolidating balance sheet of Parent and its
      Subsidiaries as at the end of such quarter, and the related consolidated and
      consolidating statement of income and consolidated statement of cash flow for
      the portion of Parent’s fiscal year then elapsed, together with, in the case of
      the consolidated statements, comparisons to corresponding quarterly and
      year-to-date periods for the previous year, all in reasonable detail and
      prepared in accordance with GAAP, together with a certification by the principal
      financial or accounting officer of Parent that the information contained in
      such
      financial statements fairly presents the financial position of Parent and its
      Subsidiaries on the date thereof (subject to year-end adjustments) and (ii) with
      respect to each of the first eleven (11) months of each fiscal year of the
      Parent during which the Excess Availability Percentage is less than 30% at
      any
      time, as soon as practicable, but in any event not later than thirty (30) days
      after the end of each such month, copies of the unaudited consolidated and
      consolidating balance sheet of Parent and its Subsidiaries as at the end of
      such
      month, and the related consolidated and consolidating statement of income and
      consolidated statement of cash flow for the portion of Parent’s fiscal year then
      elapsed, all in reasonable detail and prepared in accordance with GAAP, together
      with a certification by the principal financial or accounting officer of Parent
      that the information contained in such financial statements fairly presents
      the
      financial position of Parent and its Subsidiaries on the date thereof (subject
      to year-end adjustments);

     

    (c)  simultaneously
      with the delivery of the financial statements referred to in subsections (a)
      and
      (b), a statement certified by the principal financial or accounting officer
      of
      Parent in substantially the form of Exhibit D
      hereto
      (a “Compliance
      Certificate”)
      setting forth in reasonable detail computations evidencing the Fixed Charge
      Coverage Ratio and, if applicable, with respect to the financial periods for
      which the Parent is required to maintain minimum EBITDA under §10.1 in
      accordance with the terms thereof, computations evidencing compliance with
      the
      covenant contained in §10.1
      and (if
      applicable) reconciliations to reflect changes in GAAP since the Balance Sheet
      Date;

     

    (d)  contemporaneously
      with the filing or mailing thereof, copies of all documents of a financial
      nature (or including any financial information) filed with the Securities and
      Exchange Commission or sent to the stockholders of Parent;

     

    (e)  within
      twenty (20) days after the end of each fiscal month or at such earlier time
      as
      the Administrative Agent may reasonably request, (i) a Borrowing Base Report
      setting forth the Borrowing Base as at the end of such fiscal month or other
      date so requested by the Administrative Agent and (ii) a listing of all
      locations where inventory of Signature Fruit is located and the value of the
      inventory located thereon, in form and detail satisfactory to the Administrative
      Agent; provided that the Borrowing Base Report will be delivered weekly setting
      forth the Borrowing Base as at the end of each calendar week within five (5)
      days after the ending of each week during which the Excess Availability
      Percentage is less than 30% at any time (it being understood that such weekly
      Borrowing Base Reports shall reflect changes in Accounts Receivable and that
      changes in inventory and ineligible Accounts Receivable and inventory will
      continue to be updated on a monthly basis);

     

    (f)  contemporaneously
      with any delivery made in connection with clause (e) of this §8.4, an Accounts
      Receivable aging report, an accounts payable aging report and an inventory
      summary;

     

    (g)  as
      soon
      as available and in any event prior to the beginning of each fiscal year of
      Parent, (i) statements of forecasted consolidated income and cash flows for
      Parent and its Subsidiaries for each fiscal month in the next fiscal year and
      a
      forecasted consolidated balance sheet of Parent and its Subsidiaries as of
      the
      last day of each fiscal month in such next fiscal year, and a comparison of
      the
      projected Excess Availability as of the last day of each fiscal month in such
      next fiscal year, and (ii) statements of forecasted consolidated income and
      cash
      flows for Parent and its Subsidiaries for the following fiscal year and a
      forecasted consolidated balance sheet of Parent and its Subsidiaries as of
      the
      last day of the following fiscal year, and a comparison of the projected Excess
      Availability as of the last day of the following fiscal year, together (in
      the
      case of clauses (i) and (ii)) with supporting assumptions which were reasonable
      when made, all prepared in good faith in reasonable detail and consistent with
      Parent’s past practices in preparing projections and otherwise reasonably
      satisfactory in scope to the Administrative Agent;

     

    (h)  promptly
      after submission to any Governmental Authority, all material documents and
      information furnished to such Governmental Authority in connection with any
      investigation of any Borrower or any Subsidiary of a Borrower other than routine
      inquiries by such Governmental Authority and except as prohibited by
      law;

     

    (i)  by
      November 30 of each year, an off-season reserve analysis for the remainder
      of
      such fiscal year ending on March 31, in form and detail consistent with past
      practices and satisfactory to the Administrative Agent; and

     

    (j)  from
      time
      to time such other financial data and information as the Administrative Agent
      or
      any Lender may reasonably request.

     

    8.5.  Notices.

     

    8.5.1.  Defaults.
      The
      Borrowers will promptly notify the Administrative Agent and each of the Lenders
      in writing of the occurrence of any Adverse GMOI Event or other Default or
      Event
      of Default, together with a reasonably detailed description thereof, and the
      actions the Borrowers propose to take with respect thereto. If any Person shall
      give any notice or take any other action in respect of a claimed default
      (whether or not constituting an Event of Default) under this Credit Agreement
      or
      any other Indebtedness (including any Contingent Obligation), indenture or
      other
      obligation to which or with respect to which any Borrower or any Subsidiary
      of a
      Borrower is a party or obligor, whether as principal, guarantor, surety or
      otherwise, the Borrowers shall forthwith give written notice thereof to the
      Administrative Agent and each of the Lenders, describing the notice or action
      and the nature of the claimed default.

     

    8.5.2.  Environmental
      Events.
      The
      Borrowers will promptly give notice to the Administrative Agent and each of
      the
      Lenders (a) of any violation of any Environmental Law that any Borrower or
      any
      Subsidiary of a Borrower reports in writing or is reportable by such Person
      in
      writing (or for which any written report supplemental to any oral report is
      made) to any Governmental Authority and (b) upon becoming aware thereof, of
      any
      inquiry, proceeding, investigation, or other action, including a notice from
      any
      agency of potential environmental liability, of any Governmental Authority
      that
      could have a Material Adverse Effect.

     

    8.5.3.  Notification
      of Claim against Collateral.
      The
      Borrowers will, immediately upon becoming aware thereof, notify the
      Administrative Agent and each of the Lenders in writing of any setoff, claims,
      withholdings or other defenses to which any of the Collateral, or the
      Administrative Agent’s rights with respect to the Collateral, are
      subject.

     

    8.5.4.  Notice
      of Litigation and Judgments.
      The
      Borrowers will, and will cause each of their Subsidiaries to, give notice to
      the
      Administrative Agent and each of the Lenders in writing within fifteen (15)
      days
      of becoming aware of any litigation or proceedings threatened in writing or
      any
      pending litigation and proceedings affecting any Borrower or any Subsidiary
      of a
      Borrower or to which any Borrower or Subsidiary is or becomes a party involving
      an uninsured claim against any Borrower or Subsidiary that could reasonably
      be
      expected to have a Material Adverse Effect and stating the nature and status
      of
      such litigation or proceedings. The Borrowers will, and will cause each of
      their
      Subsidiaries to, give notice to the Administrative Agent and each of the
      Lenders, in writing, in form and detail satisfactory to the Administrative
      Agent, within ten (10) days of any judgment not covered by insurance, final
      or
      otherwise, against any Borrower or any Subsidiary of a Borrower in an amount
      in
      excess of $250,000.

     

    8.5.5.  Notices
      Concerning Inventory Collateral.
      The
      Borrowers shall provide to the Administrative Agent prompt notice of (a) any
      physical count of the inventory of any Borrower or any Subsidiary of a Borrower,
      together with a copy of the results thereof certified by such Borrower or such
      Subsidiary, (b) any determination by a Borrower or any Subsidiary of a Borrower
      that the inventory levels of such Borrower or such Subsidiary are not adequate
      to meet the projections in respect of pre-tax income of such Borrower or such
      Subsidiary, (c) details of all credit card arrangements to which any Borrower
      or
      any Subsidiary of a Borrower is from time to time a party, including details
      relating to such Borrower’s or such Subsidiary’s compliance with the terms of
      payment to the Bank of America Concentration Account of the proceeds of all
      credit card charges for sales by such Borrower or such Subsidiary, and (d)
      any
      failure of a Borrower or any Subsidiary of a Borrower to pay rent at any
      location, which failure continues for more than fifteen days following the
      day
      on which such rent is due and payable by such Borrower or such Subsidiary.
      If so
      requested by the Administrative Agent or any Lender, the Borrowers shall provide
      to the Administrative Agent or such Lender copies of all advertising by the
      Borrowers or any of their Subsidiaries including copies of all print advertising
      and duplicate tapes of all video and radio advertising.

     

    8.5.6.  Notices
      Concerning Signature Fruit Purchase Agreement, Indebtedness, Alliance Agreement,
      or PACA Claims.
      The
      Borrowers shall provide to the Administrative Agent copies, as soon as possible
      and in any event within five (5) days after execution, receipt or delivery
      thereof, of any material notices that any Borrower or any Subsidiary of a
      Borrower gives or receives under or in connection with (a) the Signature Fruit
      Purchase Agreement, (b) the Alliance Agreement or any other agreement between
      a
      Borrower and GMOI or any Affiliate thereof, (c) any Indebtedness, (d) PACA
      or
      any PACA Claim being asserted or (e) any claim of any Lien under the California
      Producer’s Lien Law.

     

    8.6.  Legal
      Existence; Maintenance of Properties.
      The
      Borrowers will do or cause to be done all things necessary to preserve and
      keep
      in full force and effect their legal existence, rights and franchises and those
      of their Subsidiaries and will not, and will not cause or permit any of their
      Subsidiaries to, convert to a limited liability company or a limited liability
      partnership. The Borrowers (i) will cause all of their properties and those
      of
      their Subsidiaries used or useful in the conduct of their business or the
      business of their Subsidiaries to be maintained and kept in good condition,
      repair and working order and supplied with all necessary equipment, (ii) will
      cause to be made all necessary repairs, renewals, replacements, betterments
      and
      improvements thereof, all as in the judgment of the Borrowers may be necessary
      so that the business carried on in connection therewith may be properly and
      advantageously conducted at all times, and (iii) will, and will cause each
      of
      their Subsidiaries to, continue to engage primarily in the businesses now
      conducted by them and in related businesses; provided
      that
      nothing in this §8.6 shall prevent the Borrowers from discontinuing the
      operation and maintenance of any of their properties or any of those of their
      Subsidiaries if such discontinuance is, in the judgment of the Borrowers,
      desirable in the conduct of its or their business and that do not in the
      aggregate have a Material Adverse Effect.

     

    8.7.  Insurance.

     

    The
      Borrowers will, and will cause each of their Subsidiaries to, maintain with
      financially sound and reputable insurers insurance with respect to their
      properties and business against such casualties and contingencies as shall
      be in
      accordance with the general practices of businesses engaged in similar
      activities in similar geographic areas and in amounts, containing such terms,
      in
      such forms and for such periods as may be reasonable and prudent and in
      accordance with the terms of the Security Documents.

     

    8.8.  Taxes.
      The
      Borrowers will, and will cause each of their Subsidiaries to, duly pay and
      discharge, or cause to be paid and discharged, before the same shall become
      overdue, all taxes, assessments and other governmental charges imposed upon
      them
      and their Real Estate, sales and activities, or any part thereof, or upon the
      income or profits therefrom, as well as all claims for labor, materials, or
      supplies that if unpaid might by law become a Lien or charge upon any of their
      property; provided
      that any
      such tax, assessment, charge, levy or claim need not be paid if the validity
      or
      amount thereof shall currently be contested in good faith by appropriate
      proceedings and if the applicable Borrower or Subsidiary shall have set aside
      on
      its books adequate reserves with respect thereto; and provided
      further
      that
      each Borrower and each Subsidiary of a Borrower will pay all such taxes,
      assessments, charges, levies or claims forthwith upon the commencement of
      proceedings to foreclose any Lien that may have attached as security
      therefor.

     

    8.9.  Inspection
      of Properties and Books, etc.

     

    8.9.1.  General.
      The
      Borrowers will permit the Lenders, with the Administrative Agent, to visit
      and
      inspect any of the properties of the Borrowers or any of their Subsidiaries,
      to
      examine the books of account of the Borrowers and their Subsidiaries (and to
      make copies thereof and extracts therefrom), and to discuss the affairs,
      finances and accounts of the Borrowers and their Subsidiaries with, and to
      be
      advised as to the same by, their officers, and to conduct verifications (whether
      by internal commercial finance examiners or independent auditors) of all
      components included in the Borrowing Base, all at such reasonable times and
      intervals as the Administrative Agent or any Lender may reasonably request.
      All
      such visits and inspections shall be at the expense of the
      Borrowers.

     

    8.9.2.  Collateral
      Exams.
      The
      Borrowers will obtain and deliver to the Administrative Agent, or, if the
      Administrative Agent so elects, will cooperate with the Administrative Agent
      in
      the Administrative Agent’s obtaining, a report of an independent collateral
      auditor satisfactory to the Administrative Agent (which may be affiliated with
      one of the Lenders) with respect to the Accounts Receivable and inventory
      components included in the Borrowing Base, which report shall indicate whether
      or not the information set forth in the Borrowing Base Report most recently
      delivered is accurate and complete in all material respects based upon a review
      by such auditors of the Accounts Receivable (including verification with respect
      to the amount, aging, identity and credit of the respective account debtors
      and
      the billing practices of the applicable Borrowers or Subsidiaries) and inventory
      (including verification as to the value, location and respective types). The
      Administrative Agent shall perform two of such field examinations during the
      period from the Effective Date through and including the first anniversary
      of
      the Effective, each at the Borrowers’ expense. Thereafter, the Administrative
      Agent shall perform one such field examination during each fiscal year and
      may,
      at the Administrative Agent’s discretion (or at the direction of the Required
      Lenders, and then at the expense of such Required Lenders), perform one
      additional field examination or participate in or observe any physical count
      of
      inventory included in the Collateral during any such fiscal year, each at the
      Borrowers’ expense (including, without limitation, an $850 per day per field
      examiner charge), provided
      that, if
      an Event of Default has occurred and is continuing or at any time that the
      Excess Availability Percentage is less than 15%, the Administrative Agent shall
      have the right to perform unlimited field examinations, at the Borrowers
      expense, provided
      further
      that, if
      no Event of Default has occurred or is continuing, the Administrative Agent
      may,
      in its discretion, perform additional field examinations, at the expense of
      the
      Lenders.

     

    8.9.3.  Appraisals.
      No more
      frequently than once each calendar year on a desktop basis, or more frequently
      as determined by the Administrative Agent if an Event of Default shall have
      occurred and be continuing, upon the request of the Administrative Agent, the
      Borrowers will obtain and deliver to the Administrative Agent appraisal reports
      in form and substance and from appraisers satisfactory to the Administrative
      Agent, stating (a) the then current orderly liquidation values of each category
      of inventory of the Borrowers, and (b) the then current business value of each
      of the Borrowers. All such appraisals shall be conducted and made at the expense
      of the Borrowers. If no Event of Default has occurred or is continuing, the
      Administrative Agent may, in its discretion, require additional appraisal
      reports, at the expense of the Lenders.

     

    8.9.4.  Communications
      with Accountants.
      The
      Borrowers authorize the Administrative Agent to communicate directly with the
      Borrowers’ independent certified public accountants and authorize such
      accountants to disclose to the Administrative Agent and the Lenders any and
      all
      financial statements and other supporting financial documents and schedules
      with
      respect to the business, financial condition and other affairs of the Borrowers
      or any of their Subsidiaries. At the request of the Administrative Agent, the
      Borrowers shall deliver a letter addressed to such accountants instructing
      them
      to comply with the provisions of this §8.9.4.

     

    8.10.  Compliance
      with Laws, Contracts, Licenses, and Permits.
      The
      Borrowers will, and will cause each of their Subsidiaries to, comply with (a)
      the applicable laws and regulations wherever their business is conducted,
      including all Environmental Laws and PACA, (b) the provisions of their Governing
      Documents, (c) all agreements and instruments by which they or any of their
      properties may be bound and (d) all applicable decrees, orders, and judgments.
      If any authorization, consent, approval, permit or license from any officer,
      agency or instrumentality of any government shall become necessary or required
      in order that the Borrowers or any of their Subsidiaries may fulfill any of
      their obligations hereunder or any of the other Loan Documents to which any
      Borrower or any such Subsidiary is a party, the Borrowers will, or (as the
      case
      may be) will cause such Subsidiary to, immediately take or cause to be taken all
      reasonable steps within the power of the Borrowers or such Subsidiary to obtain
      such authorization, consent, approval, permit or license and furnish the
      Administrative Agent and the Lenders with evidence thereof.

     

    8.11.  Employee
      Benefit Plans.
      The
      Borrowers will (a) promptly upon request of the Administrative Agent, furnish
      to
      the Administrative Agent a copy of the most recent actuarial statement required
      to be submitted under §103(d) of ERISA and Annual Report, Form 5500, with all
      required attachments, in respect of each Guaranteed Pension Plan, (b) promptly
      upon receipt or dispatch, furnish to the Administrative Agent any notice, report
      or demand sent or received in respect of a Guaranteed Pension Plan under §§302,
      4041, 4042, 4043, 4063, 4066 and 4068 of ERISA, or in respect of a Multiemployer
      Plan, under §§4041A, 4202, 4219, 4242, or 4245 of ERISA and (c) furnish to the
      Administrative Agent promptly, upon request, a copy of all actuarial statements
      required to be submitted under all Applicable Pension Legislation.

     

    8.12.  Use
      of Proceeds.
      The
      Borrowers will use the proceeds of the Loans and obtain Letters of Credit solely
      for the purposes set forth in §7.17.1.

     

    8.13.  Bank
      Accounts.

     

    8.13.1.  General.
      On or
      prior to the Effective Date, each of the Parent and Signature Fruit will (a)
      establish at Bank of America, N.A. a depository account (the “Bank
      of America Concentration Account”)
      under
      the control of the Administrative Agent for the benefit of the Lenders and
      the
      Administrative Agent, in the name of the Parent or Signature Fruit, as
      applicable, (b) instruct all account debtors and other obligors, pursuant to
      notices of assignment and instruction letters in form and substance satisfactory
      to the Administrative Agent, to remit all cash proceeds of Accounts Receivable
      to local depository accounts (“Local
      Accounts”)
      or
      concentration depository accounts (“Interim
      Concentration Accounts”)
      with
      financial institutions which have entered into agency account agreements and,
      if
      applicable, lock box agreements (collectively, “Agency
      Account Agreements”)
      in
      form and substance satisfactory to the Administrative Agent, or the Bank of
      America Concentration Account, (c) direct all depository institutions with
      Local
      Accounts to cause all funds held in each such Local Account to be transferred
      no
      less frequently than once each day to, and only to, an Interim Concentration
      Account or the Bank of America Concentration Account, (d) direct all depository
      institutions with Interim Concentration Accounts to cause all funds of the
      Parent and Signature Fruit held in such Interim Concentration Accounts to be
      transferred daily to, and only to, the Bank of America Concentration Account,
      and (e) at all times ensure that immediately upon the Parent’s or Signature
      Fruit’s receipt of any funds constituting or cash proceeds of any Collateral,
      all such amounts shall have been deposited in a Local Account, an Interim
      Concentration Account or the Bank of America Concentration Account.

     

    8.13.2.  Acknowledgment
      of Application.
      The
      Parent and Signature Fruit hereby agree that all amounts in the Bank of America
      Concentration Account will be the sole and exclusive property of the
      Administrative Agent, for the accounts of the Lenders and the Administrative
      Agent, to be applied in accordance §2.11 or §2.12 as applicable.

     

    8.14.  Additional
      Matters Relating to PACA.

     

    8.14.1.  Defined
      Terms.
      As
      referred to in this §8.14, “Affiliate PACA Contracts” shall mean any contract or
      agreement for the growing, purchase and/or sale of any Perishable Agricultural
      Commodity (as defined in §499a(b)(4) of PACA (other than tree or viticultural
      fruit), the “PACA
      Commodities”)
      among
      any of the Borrowers or their Subsidiaries, as a commission merchant, dealer,
      and/or broker (as those terms are defined, respectively, in §§499a(b)(5), (6)
      and (7) of PACA, the “Affiliate
      PACA Buyer”)
      and
      any of the Borrowers or their Subsidiaries, as a supplier or seller of PACA
      Commodities (the “Affiliate
      PACA Seller”),
      and
“Non-Affiliate PACA Contracts” shall mean any contract or agreement for the
      purchase and sale of any PACA Commodities, among any of the Borrowers or their
      Subsidiaries as a supplier or seller of PACA Commodities (the “Non-Affiliate
      PACA Seller”),
      and
      any commission merchant, dealer, and/or broker (as those terms are defined,
      respectively, in §§499a(b)(5), (6) and (7) of PACA) that is not an Affiliate of
      any of the Borrowers or their Subsidiaries (the “Non-Affiliate
      PACA Buyer”).
      As
      referred to in this Credit Agreement, “PACA Trust” shall mean the statutory
      trust authorized by §499e(c) of PACA.

     

    8.14.2.  Affiliate
      PACA Contracts After Effective Date.
      Any
      Affiliate PACA Contracts, or any provisions under any contract or agreement
      that
      constitute an Affiliate PACA Contract, executed on or after the Effective Date,
      shall:

     

    (i)  provide
      for payment terms of not less than 31 days after receipt and acceptance (as
      defined in 7 U.S.C. §46.46(a) and 46.2(dd)) of any shipment of PACA Commodities
      sold under such Affiliate PACA Contract; and

     

    (ii)  provide
      for the Affiliate PACA Seller’s irrevocable waiver of its right to give written
      notice of any kind to the Affiliate PACA Buyer of the Affiliate PACA Seller’s
      intent to preserve the benefits of the PACA Trust.

     

    8.14.3.  Affiliate
      PACA Contracts Existing on the Effective Date.
      Any
      Affiliate PACA Contracts, or any provisions under any contract or agreement
      that
      constitutes an Affiliate PACA Contract, existing as of the Effective Date,
      shall
      be amended to conform to §8.14.2 above on or prior to the Effective
      Date.

     

    8.14.4.  Non-Affiliate
      PACA Contracts After Effective Date.
      Any
      Non-Affiliate PACA Contracts, or any provisions under any contract or agreement
      that constitutes a Non-Affiliate PACA Contract, executed on or after the
      Effective Date, shall provide for payment terms of not more than 30 days after
      receipt and acceptance (as defined in 7 U.S.C. §46.46(a) and 46.2(dd)) of any
      shipment of PACA Commodities sold under such Non-Affiliate PACA
      Contract.

     

    8.14.5.  Payment
      for Perishable Agricultural Commodities.
      Each of
      the Borrowers will pay, not later than the date required for payment thereof,
      any outstanding invoices for perishable agricultural commodities purchased
      from
      any vendor except for a Borrower or a Subsidiary of a Borrower, provided
      that, if
      any such invoice requires payment upon delivery, payment shall be made on the
      date of delivery, and further
      provided
      that
      such payment may be made on a later date with respect to any vendor that has
      waived in writing its rights under PACA with respect to the applicable invoice.
      If notification, other than on an invoice, is received by a Borrower or a
      Subsidiary of a Borrower from a vendor that such vendor intends to enforce
      its
      rights under PACA or to establish that a statutory trust or lien exists in
      favor
      of such vendor, such Borrower or Subsidiary shall pay the amount owed to such
      vendor within one Business Day after receiving such notice and shall promptly
      give notice to the Administrative Agent of its receipt of such notice from
      such
      vendor, which notice to the Administrative Agent shall be accompanied by a
      copy
      of such vendor notice, provided
      that,
      the applicable Borrower or Subsidiary may defer the payment of the amounts
      owed
      to such vendor if and so long as (a) appropriate legal or administrative action
      has been commenced with respect thereto and is being diligently pursued or
      defended in good faith by the applicable Borrower or Subsidiary, (b) the right
      of the vendor to pursue any rights or enforce any liens or trusts provided
      under
      PACA has been stayed or otherwise legally prohibited during the pendency of
      such
      action, and (c) the Reserve shall include the amount owed to such
      vendor.

     

    8.15.  Food
      Security Act.
      Each of
      the Borrowers shall:

     

    (a)  promptly
      provide the Administrative Agent with a copy of any notice received by such
      Borrower with respect to a security interest created by a seller of farm
      products; and

     

    (b)  with
      respect to any farm products produced in a state with a central filing system,
      register with the secretary of state of such state prior to the purchase of
      such
      farm products and maintain such registration in full force and
      effect.

     

    8.16.  Additional
      Subsidiaries.
      The
      Borrowers shall not create any Subsidiary (other than Subsidiaries existing
      on
      the Effective Date and disclosed in §7.19 hereto) unless (a) one hundred percent
      (100%) of the Capital Stock of such Subsidiary is owned by the Borrowers, (b)
      prior to the formation of such Subsidiary, the Borrowers shall notify the
      Administrative Agent and the Lenders thereof, and (c) contemporaneously with
      the
      formation of such Subsidiary, the Borrowers shall (i) cause such Subsidiary
      to
      guaranty all of the Obligations hereunder pursuant to a guaranty in form and
      substance satisfactory to the Administrative Agent, which such guaranty shall
      be
      a Security Document hereunder, (ii) cause such Subsidiary to take all steps
      as
      may be necessary or advisable in the opinion of the Administrative Agent to
      grant to the Administrative Agent, for the benefit of the Lenders and the
      Administrative Agent, a first priority (subject only to Permitted Liens),
      perfected security interest in its assets which would be deemed Collateral
      pursuant to the Security Documents as collateral security for such guaranty,
      pursuant to security documents, mortgages, pledges and other documents in form
      and substance satisfactory to the Administrative Agent, each of which documents
      shall be Security Documents hereunder, (iii) deliver to the Administrative
      Agent
      and the Lenders appropriate corporate (or other applicable entity) backup
      documentation and one or more legal opinions, in each case, in form and
      substance satisfactory to the Administrative Agent, as to each such guaranty
      and
      grant of security interest, where applicable, and (iv) provide the
      Administrative Agent with an updated Schedule 7.19
      hereto.

     

    8.17.  Further
      Assurances.
      The
      Borrowers will, and will cause each of their Subsidiaries to, cooperate with
      the
      Lenders and the Administrative Agent and execute such further instruments and
      documents as the Lenders or the Administrative Agent shall reasonably request
      to
      carry out to their satisfaction the transactions contemplated by this Credit
      Agreement and the other Loan Documents.

     

    
      	9.  	
              CERTAIN
                NEGATIVE COVENANTS.

            

    

     

    The
      Borrowers covenant and agree that, so long as any Loan, Unpaid Reimbursement
      Obligation, Letter of Credit or Note is outstanding or any Lender has any
      obligation to make any Loans or the Issuing Bank has any obligations to issue,
      extend or renew any Letters of Credit:

     

    9.1.  Restrictions
      on Indebtedness.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, create,
      incur, assume, guarantee or be or remain liable, contingently or otherwise,
      with
      respect to any Indebtedness other than:

     

    (a)  Indebtedness
      to the Lenders and the Administrative Agent arising under any of the Loan
      Documents;

     

    (b)  endorsements
      for collection, deposit or negotiation and warranties of products or services,
      in each case incurred in the ordinary course of business;

     

    (c)  Subordinated
      Indebtedness;

     

    (d)  Indebtedness
      incurred in connection with the acquisition after the date hereof of any real
      or
      personal property by the Borrowers or such Subsidiary or under any Capitalized
      Lease, provided
      that the
      aggregate principal amount of such Indebtedness of the Borrowers and their
      Subsidiaries shall not exceed the aggregate amount of $25,000,000 at any one
      time;

     

    (e)  Indebtedness
      in respect of Hedging Agreements;

     

    (f)  Indebtedness
      existing on
      the
      date hereof and listed and described on Schedule 9.1
      hereto;

     

    (g)  Indebtedness
      of a Borrower to another Borrower;

     

    (h)  the
      Hancock Amended and Restated Note Agreement Loans;

     

    (i)  the
      Silgan Payable;

     

    (j)  the
      Hancock Signature Note Agreement Loans; and 

     

    (k) reimbursement
      obligations of the Parent in respect of the Wachovia Letter of Credit, provided
      that the Parent shall not be or remain liable for any such reimbursement
      obligations at any time after November 30, 2006.

     

    9.2.  Restrictions
      on Liens.

     

    9.2.1.  Permitted
      Liens. The
      Borrowers will not, and will not permit any of their Subsidiaries to, (a) create
      or incur or suffer to be created or incurred or to exist any Lien upon any
      of
      their property or assets of any character whether now owned or hereafter
      acquired, or upon the income or profits therefrom; (b) transfer any of such
      property or assets or the income or profits therefrom for the purpose of
      subjecting the same to the payment of Indebtedness or performance of any other
      obligation in priority to payment of its general creditors; (c) acquire, or
      agree or have an option to acquire, any property or assets upon conditional
      sale
      or other title retention or purchase money security agreement, device or
      arrangement; (d) suffer to exist for a period of more than thirty (30) days
      after the same shall have been incurred any Indebtedness or claim or demand
      against them that if unpaid might by law or upon bankruptcy or insolvency,
      or
      otherwise, be given any priority whatsoever over its general creditors;
      or (e)
      sell,
      assign, pledge or otherwise transfer any “receivables” as defined in clause (g)
      of the definition of the term “Indebtedness,” with or without recourse;
provided
      that the
      Borrowers or any of their Subsidiaries may create or incur or suffer to be
      created or incurred or to exist:

     

    (i)  Liens
      in
      favor of a Borrower on all or part of the assets of a Borrower or a Subsidiary
      of a Borrower securing Indebtedness owing by such Borrower or Subsidiary of
      a
      Borrower;

     

    (ii)  Liens
      to
      secure taxes, assessments and other government charges in respect of obligations
      not overdue or Liens on properties to secure claims for labor, material or
      supplies in respect of obligations not overdue;

     

    (iii)  deposits
      or pledges made in connection with, or to secure payment of, workmen’s
      compensation, unemployment insurance, old age pensions or other social security
      obligations;

     

    (iv)  Liens
      in
      respect of judgments or awards that have been in force for less than the
      applicable period for taking an appeal so long as execution is not levied
      thereunder or in respect of which the Borrowers or their Subsidiaries shall
      at
      the time in good faith be prosecuting an appeal or proceedings for review and
      in
      respect of which a stay of execution shall have been obtained pending such
      appeal or review;

     

    (v)  Liens
      of
      carriers, warehousemen, mechanics and materialmen, and other like Liens in
      respect of obligations not overdue;

     

    (vi)  encumbrances
      on Real Estate consisting of easements, rights of way, zoning restrictions,
      restrictions on the use of real property and defects and irregularities in
      the
      title thereto, landlord’s or lessor’s liens and other minor Liens, provided
      that
      none of such Liens (A) interferes materially with the use of the property
      affected in the ordinary conduct of the business of the Borrowers and their
      Subsidiaries, and (B) individually or in the aggregate have a Material Adverse
      Effect;

     

    (vii)  Liens
      existing on
      the
      date hereof and listed on Schedule 9.2
      hereto;

     

    (viii)  purchase
      money security interests in or purchase money mortgages on real or personal
      property acquired after the date hereof to secure purchase money Indebtedness
      of
      the type and amount permitted by §9.1(d), incurred in connection with the
      acquisition of such property, which security interests or mortgages cover only
      the real or personal property so acquired and secure only the purchase price
      therefor;

     

    (ix)  Liens
      in
      favor of the Collateral Agent or the Administrative Agent for the benefit of
      the
      Lenders, the Administrative Agent or the Collateral Agent under the Loan
      Documents and any Hedging Agreement;

     

    (x)  statutory
      Liens under the California Producer’s Liens Law in favor of California sellers
      of farm products and statutory Liens in favor of California sellers of PACA
      Commodities and tree and viticultural fruit so long as the Borrowers are in
      compliance with §8.14;

     

    (xi)  Liens
      on
      the Hancock Collateral securing the Indebtedness evidenced by the Hancock
      Amended and Restated Note Agreement Documents and the Hancock Signature Note
      Agreement Loans;

     

    (xii)  Liens
      on
      the Alliance Collateral (as defined in the Intercreditor Agreement) in favor
      of
      the Collateral Agent for the benefit of the Lenders, the Administrative Agent,
      the Collateral Agent and the holders of the Hancock Amended and Restated Note
      Agreement Loans; and

     

    (xiii)  Liens
      on
      the Revolving Lender Collateral (as defined in the Intercreditor Agreement)
      in
      favor of the Collateral Agent for the benefit of the Lenders, the Administrative
      Agent and the Collateral Agent.

     

    9.2.2.  Restrictions
      on Negative Pledges and Upstream Limitations.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, (a) enter
      into or permit to exist any arrangement or agreement (excluding the Credit
      Agreement and the other Loan Documents, the Alliance Agreement, the Master
      Reimbursement Agreement, the Hancock Amended and Restated Note Agreement
      Documents and the Hancock Signature Note Agreement Documents) which directly
      or
      indirectly prohibits the Borrowers or any of their Subsidiaries from creating,
      assuming or incurring any Lien upon its properties, revenues or assets or those
      of any of its Subsidiaries whether now owned or hereafter acquired, or (b)
      enter
      into any agreement, contract or arrangement (excluding the Credit Agreement
      and
      the other Loan Documents, the Alliance Agreement, the Master Reimbursement
      Agreement, the Hancock Amended and Restated Note Agreement Documents, and the
      Hancock Signature Note Agreement Documents) restricting the ability of any
      Borrower or Subsidiary of the Borrowers to pay or make dividends or
      distributions in cash or kind to the Borrowers, to make loans, advances or
      other
      payments of whatsoever nature to the Borrowers, or to make transfers or
      distributions of all or any part of its assets to the Borrowers; in each case
      other than (i) restrictions on specific assets which assets are the subject
      of
      purchase money security interests to the extent permitted under §9.2.1, and (ii)
      customary anti-assignment provisions contained in leases and licensing
      agreements entered into by a Borrower or Subsidiary in the ordinary course
      of
      its business.

     

    9.3.  Restrictions
      on Investments.
      The
      Borrowers will not, and will not permit any of its Subsidiaries to, make or
      permit to exist or to remain outstanding any Investment except Investments
      in:

     

    (a)  Cash
      Equivalents;

     

    (b)  Permitted
      Acquisitions;

     

    (c)  Investments
      existing on
      the
      date hereof and listed on Schedule 9.3
      hereto;

     

    (d)  Investments
      with respect to Indebtedness permitted by §9.1(g) so long as the Person in which
      such Investments are made remains a Borrower;

     

    (e)  Investments
      by the Borrowers in Subsidiaries of the Borrowers existing on the Effective
      Date;

     

    (f)  Investments
      consisting of promissory notes received as proceeds of asset dispositions
      permitted by §9.5.2;

     

    (g)  Investments
      by the Borrowers in Subsidiaries that have guarantied the Obligations and
      otherwise complied with the provisions of §8.16; and

     

    (h)  Investments
      consisting of loans and advances to employees for moving, entertainment, travel
      and other similar expenses in the ordinary course of business not to exceed
      $1,000,000 in the aggregate at any time outstanding;

     

    provided,
      however,
      that,
      with the exception of loans and advances referred to in §§9.3(g) and (h), such
      Investments will be considered Investments permitted by this §9.3 only if all
      actions have been taken to the satisfaction of the Administrative Agent to
      provide to the Administrative Agent, for the benefit of the Lenders and the
      Administrative Agent, a first priority perfected security interest in all of
      such Investments free of all Liens other than Permitted Liens.

     

    9.4.  Restricted
      Payments.
      The
      Borrowers will not make any Restricted Payments other than (a) Distributions
      by
      the Parent in the form of repurchases of Capital Stock of the Parent (i) for
      the
      Parent’s 401(k) Plan or (ii) other than for the Parent’s 401(k) Plan, (A) for
      aggregate consideration not to exceed $10,000,000 in any fiscal year of the
      Parent if, at the time of (and before and after giving effect to) any such
      repurchase, the Excess Availability Percentage equals or exceeds 25% but is
      less
      than 40%, or (B) for aggregate consideration in excess of $10,000,000 if, at
      the
      time of (and before and after giving effect to) any such repurchase, the Excess
      Availability Percentage equals or exceeds 40% and (b) other Distributions by
      the
      Parent in an aggregate amount not to exceed $500,000 in any fiscal
      year.

     

    9.5.  Merger,
      Consolidation and Disposition of Assets.

     

    9.5.1.  Mergers
      and Acquisitions.
      None of
      the Borrowers will, and the Borrowers will not permit any of their Subsidiaries
      to, become a party to any merger, amalgamation or consolidation, or agree to
      or
      effect any asset acquisition or stock acquisition (other than the acquisition
      of
      assets in the ordinary course of business consistent with past practices) except
      (a) the merger or consolidation of one or more of the Subsidiaries of a Borrower
      with and into such Borrower so long as the Parent has provided the
      Administrative Agent with not less than thirty (30) days’ prior written notice
      of such event and the surviving Borrower shall have executed and delivered
      all
      documents and agreements requested by the Administrative Agent in connection
      therewith, (b) the merger or consolidation of two or more Subsidiaries of a
      Borrower or (c) Permitted Acquisitions.

     

    9.5.2.  Disposition
      of Assets.
      None of
      the Borrowers will, and the Borrowers will not permit any of their Subsidiaries
      to, become a party to or agree to or effect any Asset Sales, other than (a)
      the
      sale of inventory, (b) the licensing of intellectual property, (c) the
      disposition of obsolete assets, (d) the sale of Signature Fruit’s real property
      and improvements located at 555 Mariposa Road, Modesto, California, and (e)
      other Asset Sales having a net book value on the Borrowers’ books and records
      not in excess of $25,000,000 in the aggregate in any fiscal year and $50,000,000
      in the aggregate from and after the Effective Date so long as each such Asset
      Sale occurring under clauses (a), (b), (c), (d) and (e) is in exchange for
      consideration having a fair market value at least equal to that of the property
      exchanged; provided,
      that in
      the case of Asset Sales occurring under clauses (a), (b) and (c) of this §9.5.2
      each such Asset Sale is in the ordinary course of business consistent with
      past
      practices.

     

    9.6.  Sale
      and Leaseback.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, enter
      into
      any arrangement, directly or indirectly, whereby a Borrower or any Subsidiary
      of
      a Borrower shall sell or transfer any property owned by it in order for a
      Borrower or a Subsidiary of a Borrower to lease such property or lease other
      property that a Borrower or a Subsidiary of a Borrower intends to use for
      substantially the same purpose as the property being sold or transferred other
      than to the extent the aggregate fair market value of all such property sold
      from and after the Effective Date does not exceed $10,000,000.

     

    9.7.  Compliance
      with Environmental Laws.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, (a) use
      any of the Real Estate or any portion thereof for the handling, processing,
      storage or disposal of Hazardous Substances in violation of applicable law,
      except to the extent that the failure to do so will not have a Material Adverse
      Effect, (b) cause or permit to be located on any of the Real Estate any
      underground tank or other underground storage receptacle for Hazardous
      Substances in violation of applicable law except where the violation of any
      applicable law would not have a Material Adverse Effect, (c) generate any
      Hazardous Substances on any of the Real Estate in violation of applicable law
      except to the extent that the failure to do so will not have a Material Adverse
      Effect, (d) conduct any activity at any Real Estate or use any Real Estate
      in
      any manner so as to cause a release (i.e. releasing, spilling, leaking, pumping,
      pouring, emitting, emptying, discharging, injecting, escaping, leaching,
      disposing or dumping) or threatened release of Hazardous Substances on, upon
      or
      into the Real Estate which would have a Material Adverse Effect or (e) otherwise
      conduct any activity at any Real Estate or use any Real Estate in any manner
      that would violate any Environmental Law or bring such Real Estate in violation
      of any Environmental Law which would have a Material Adverse
      Effect.

     

    9.8.  Subordinated
      Indebtedness.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, amend,
      supplement or otherwise modify the terms of any of Subordinated Indebtedness
      or
      prepay, redeem or repurchase any Subordinated Indebtedness in advance of the
      scheduled payment schedule and maturity thereof, except that, upon prior notice
      to the Administrative Agent, amounts outstanding under the Pillsbury Note may
      be
      converted into Capital Stock of the Parent.

     

    9.9.  Employee
      Benefit Plans.
      Neither
      the Borrowers nor any ERISA Affiliate will:

     

    (a)  engage
      in
      any “prohibited transaction” within the meaning of §406 of ERISA or §4975 of the
      Code which could result in a material liability for the Borrowers or any of
      their Subsidiaries; or

     

    (b)  permit
      any Guaranteed Pension Plan to incur an “accumulated funding deficiency”, as
      such term is defined in §302 of ERISA, whether or not such deficiency is or may
      be waived; or

     

    (c)  fail
      to
      contribute to any Guaranteed Pension Plan to an extent which, or terminate
      any
      Guaranteed Pension Plan in a manner which, could result in the imposition of
      a
      lien or encumbrance on the assets of the Borrowers or any of their Subsidiaries
      pursuant to §302(f) or §4068 of ERISA; or

     

    (d)  amend
      any
      Guaranteed Pension Plan in circumstances requiring the posting of security
      pursuant to §307 of ERISA or §401(a)(29) of the Code; or

     

    (e)  permit
      or
      take any action which would result in the aggregate benefit liabilities (with
      the meaning of §4001 of ERISA) of all Guaranteed Pension Plans exceeding the
      value of the aggregate assets of such Plans by more than an amount that would
      have a Material Adverse Effect disregarding for this purpose the benefit
      liabilities and assets of any such Plan with assets in excess of benefit
      liabilities.

     

    9.10.  Business
      Activities.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, engage
      directly or indirectly (whether through Subsidiaries or otherwise) in any type
      of business other than the businesses conducted by them on the Effective Date
      and in related businesses.

     

    9.11.  Fiscal
      Year.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, change
      the
      date of the end of their fiscal years from that set forth and otherwise
      represented in §7.4.1 except that Signature Fruit will change its fiscal year to
      a fiscal year ending March 31 of each year on or prior to December 31,
      2006.

     

    9.12.  Transactions
      with Affiliates.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, engage
      in
      any transaction with any Affiliate (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      such Affiliate or, to the knowledge of the Borrowers, any corporation,
      partnership, trust or other entity in which any such Affiliate has a substantial
      interest or is an officer, director, trustee or partner, on terms more favorable
      to such Person than would have been obtainable on an arm’s-length basis in the
      ordinary course of business.

     

    9.13.  Bank
      Accounts.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, (a)
      establish any bank accounts other than those Local Accounts, Interim
      Concentration Accounts and other accounts, all listed on Schedule 7.20,
      without
      prior written notice to the Administrative Agent, (b) violate directly or
      indirectly any Agency Account Agreement or other bank agency or lock box
      agreement in favor of the Administrative Agent for the benefit of the Lenders
      and the Administrative Agent with respect to such account, (c) deposit into
      any
      of the payroll accounts listed on Schedule 7.20
      any
      amounts in excess of amounts necessary to pay current payroll obligations from
      such accounts, or (d) establish or maintain accounts (other than the Bank of
      America Concentration Account, the Local Accounts, the Interim Concentration
      Accounts and payroll accounts maintained in accordance with clause (c) of this
      §9.13) having deposits in excess of $750,000 in the aggregate.

     

    9.14.  Accounts
      Receivable.
      Parent
      will not permit Seneca Snack or Marion to have any Accounts Receivable
      outstanding in excess of $50,000 in the aggregate at any time.

     

    9.15.  Hancock
      Signature Note Agreement Loans and Silgan Payable.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, amend,
      supplement or otherwise modify the terms of the Hancock Signature Note Agreement
      Loans or the Silgan Payable or prepay, redeem or repurchase the Hancock
      Signature Note Agreement Loans or the Silgan Payable or any portion thereof
      in
      advance of the scheduled payment schedule and maturity thereof, except that
      the
      Borrowers may make prepayments of the Hancock Signature Note Agreement Loans
      and/or the Silgan Payable if (a) Excess Availability at the time of the each
      such prepayment, and after giving effect to such prepayment, is greater than
      20%
      of the Borrowing Base, (b) Excess Availability, as projected by the Borrowers
      in
      a manner acceptable to the Administrative Agent for the 6 months commencing
      at
      the time of such prepayment, would not at any time be less than 20% of the
      Borrowing Base, (c) the Fixed Charge Coverage Condition shall be satisfied
      at
      the time of such prepayment, and (d) no Event of Default has occurred and is
      continuing at the time of such prepayment.

     

    9.16.  Subsidiary
      Business.
      Parent
      will not permit Seneca Foods International, Ltd., Signature Fruit (Tomato),
      Inc.
      or Friday U.K., Limited to engage in any business or have any
      assets.

     

    
      	10.  	
              FINANCIAL
                COVENANTS.

            

    

     

    The
      Borrowers covenant and agree that, so long as any Loan, Unpaid Reimbursement
      Obligation, Letter of Credit or Note is outstanding or any Lender has any
      obligation to make any Loans or the Issuing Bank has any obligation to issue,
      extend or renew any Letters of Credit:

     

    10.1.  Minimum
      EBITDA.
      If the
      Excess Availability is at any time less than the 15% of the Borrowing Base,
      then
      Parent will not permit EBITDA for the Reference Period ending at the end of
      the
      most recently ended Fiscal Quarter to be less than $45,000,000.

     

    
      	11.  	
              CLOSING
                CONDITIONS.

            

    

     

    The
      obligations of the Lenders to make the initial Loans and of the Issuing Bank
      to
      issue any initial Letters of Credit shall be subject to the satisfaction of
      the
      following conditions precedent on or prior to August 18, 2006:

     

    11.1.  Loan
      Documents and Signature Fruit Purchase Agreement.

     

    11.1.1.  Loan
      Documents.
      Each of
      the Loan Documents (including the Intercreditor Agreement) shall have been
      duly
      executed and delivered by the respective parties thereto, shall be in full
      force
      and effect and shall be in form and substance satisfactory to each of the
      Lenders. Each Lender shall have received a fully executed copy of each such
      document.

     

    11.1.2.  Allonge
      to Pillsbury Note.
      An
      Allonge to the Pillsbury Note shall have been executed in form and substance
      acceptable to the each of the Lenders. Each Lender shall have received a fully
      executed copy of each such document.

     

    11.1.3.  Signature
      Fruit Purchase Agreement.
      The
      transactions provided for in the Signature Fruit Purchase Agreement shall have
      been consummated in accordance with the terms of the Signature Fruit Purchase
      Agreement, Parent shall be the direct or indirect owner of 100% of the
      outstanding limited liability company interests of Signature Fruit, each of
      the
      representations and warranties in §7.22 shall be true, and Parent shall have
      collaterally assigned all of its rights, but not its obligations, under the
      Signature Fruit Purchase Agreement to the Administrative Agent as additional
      security for the Obligations, pursuant to an assignment agreement in form and
      substance satisfactory to the Administrative Agent.

     

    11.1.4.  Debt
      Documents.
      Each of
      the Master Reimbursement Agreement, the Hancock Signature Note Agreement and
      the
      Hancock Amended and Restated Note Agreement shall have been amended on terms
      and
      conditions satisfactory to the Lenders.

     

    11.2.  Certified
      Copies of Governing Documents.
      Each of
      the Lenders shall have received from each Borrower a copy, certified by a duly
      authorized officer of such Borrower to be true and complete on the Effective
      Date, of each of its Governing Documents as in effect on such date of
      certification.

     

    11.3.  Corporate
      or Other Action.
      All
      corporate (or other) action necessary for the valid execution, delivery and
      performance by the Borrowers of this Credit Agreement and the other Loan
      Documents to which it is or is to become a party shall have been duly and
      effectively taken, and evidence thereof satisfactory to the Lenders shall have
      been provided to each of the Lenders.

     

    11.4.  Incumbency
      Certificate.
      Each of
      the Lenders shall have received from each Borrower an incumbency certificate,
      dated as of the Effective Date, signed by a duly authorized officer of such
      Borrower, and giving the name and bearing a specimen signature of each
      individual who shall be authorized: (a) to sign, in the name and on behalf
      of
      each Borrower, each of the Loan Documents to which such Borrower is or is to
      become a party; (b) to make Loan Requests and Conversion Requests and to apply
      for Letters of Credit; and (c) to give notices and to take other action on
      its
      behalf under the Loan Documents.

     

    11.5.  Validity
      of Liens.
      The
      Security Documents shall be effective to create in favor of the Administrative
      Agent a legal, valid and enforceable first (except for Permitted Liens entitled
      to priority under applicable law) security interest in and Lien upon the
      Collateral. All filings, recordings, deliveries of instruments and other actions
      necessary or desirable in the opinion of the Administrative Agent to protect
      and
      preserve such security interests shall have been duly effected. The
      Administrative Agent shall have received evidence thereof in form and substance
      satisfactory to the Administrative Agent.

     

    11.6.  Perfection
      Certificates and UCC Search Results.
      The
      Administrative Agent shall have received from the Borrowers and their
      Subsidiaries a completed and fully executed Perfection Certificate of Signature
      Fruit and the results of UCC searches (and the equivalent thereof in all
      applicable foreign jurisdictions) of the Borrowers and their Subsidiaries with
      respect to the Collateral, indicating no Liens other than Permitted Liens and
      otherwise in form and substance satisfactory to the Administrative
      Agent.

     

    11.7.  Landlord
      Warehouse Consents and Mortgagee Consents.
      The
      Borrowers and their Subsidiaries shall have delivered to the Administrative
      Agent a Landlord Warehouse Consent or Mortgagee Consent, as applicable, with
      respect to any Real Estate and/or any assets of the Borrowers that are in the
      possession of a warehouseman.

     

    11.8.  Certificates
      of Insurance.
      The
      Administrative Agent shall have received (a) evidence of insurance from an
      independent insurance broker dated as of the Effective Date, identifying
      insurers, types of insurance, insurance limits, and policy terms, and otherwise
      describing the insurance obtained in accordance with the provisions of the
      Security Documents and (b) certified copies of all policies evidencing such
      insurance (or certificates therefore signed by the insurer or an agent
      authorized to bind the insurer).

     

    11.9.  Agency
      Account Agreements.
      Each of
      the Parent and Signature Fruit shall have established a Bank of America
      Concentration Account, and the Administrative Agent shall have received an
      Agency Account Agreement executed by each depository institution with a Local
      Account or an Interim Concentration Account.

     

    11.10.  Borrowing
      Base Report; Excess Availability.
      The
      Administrative Agent shall have received from the Borrowers the initial
      Borrowing Base Report dated as of the Effective Date, which Borrowing Base
      Report shall show Excess Availability of not less than $40,000,000 (after giving
      effect to the repayment of the Indebtedness to be repaid on or about the
      Effective Date as described in §7.17.1 and the payment of all sums and expenses,
      the issuance of all Letters of Credit and the funding of all Loans to be paid,
      issued or funded on the Effective Date).

     

    11.11.  Accounts
      Receivable Aging Report.
      The
      Administrative Agent shall have received from the Borrowers the most recent
      Accounts Receivable aging report of the Borrowers and their Subsidiaries dated
      as of a date which shall be no more than fifteen (15) days prior to the
      Effective Date and the Borrowers shall have notified the Administrative Agent
      in
      writing on the Effective Date of any material deviation from the Accounts
      Receivable values reflected in such Accounts Receivable aging report and shall
      have provided the Administrative Agent with such supplementary documentation
      as
      the Administrative Agent may reasonably request with respect
      thereto.

     

    11.12.  Solvency
      Certificate.
      Each of
      the Lenders shall have received an officer’s certificate of Parent dated as of
      the Effective Date as to the solvency of the Borrowers and their Subsidiaries
      following the consummation of the transactions contemplated herein and in form
      and substance satisfactory to the Lenders.

     

    11.13.  Opinions
      of Counsel.
      Each of
      the Lenders and the Administrative Agent shall have received a favorable legal
      opinion addressed to the Lenders and the Administrative Agent, dated as of
      the
      Effective Date, in form and substance satisfactory to the Lenders and the
      Administrative Agent, from (a) Jaeckle Fleischmann & Mugel, LLP, counsel to
      the Borrowers and their Subsidiaries, and (b) Velikanje, Moore & Shore,
      P.S., special Washington state counsel to Seneca Snack.

     

    11.14.  Payment
      of Fees.
      The
      Borrowers shall have paid to the Lenders or the Administrative Agent, as
      appropriate, the Fees pursuant
      to §§4.6, 5.1 and 11.19.

     

    11.15.  Payoff
      Letter and/or Termination Agreement.
      The
      Administrative Agent shall have received a payoff letter and/or termination
      agreement from (a) Bank of America, N.A. as administrative agent for each of
      the
      Existing Signature Lenders, indicating the amount of the loan obligations of
      Signature Fruit to the Existing Signature Lenders which are to be discharged
      on
      the Effective Date and an acknowledgment by Bank of America, N.A. as
      administrative agent for the Existing Signature Lenders that upon receipt of
      such funds the Indebtedness owed to the Existing Signature Lenders will be
      paid
      in full and Bank of America, N.A. will forthwith execute and deliver to the
      Administrative Agent for filing all termination statements and take such other
      actions as may be necessary to discharge all mortgages, deeds of trust and
      security interests granted by Signature Fruit or any of its Subsidiaries in
      favor of Bank of America, N.A. as administrative agent for the Existing
      Signature Lenders, and (b) John Hancock Life Insurance Company and John Hancock
      Variable Life Insurance Company, indicating the amount of the loan obligations
      of Signature Fruit to such lenders under the Hancock 2003 Liquidity Loan
      Agreement which are to be discharged on the Effective Date and an acknowledgment
      by such lenders that upon receipt of such funds the Indebtedness owed to such
      lenders under the Hancock 2003 Liquidity Loan Agreement will be paid in
      full.

     

    11.16.  Disbursement
      Instructions.
      The
      Administrative Agent shall have received disbursement instructions from the
      Borrowers, indicating that a portion of the proceeds of the Loans, in an amount
      equal to the aggregate loan obligations of the Borrowers to the Existing
      Signature Lenders, are to be paid to Bank of America, N.A., as administrative
      agent for the Existing Signature Lenders in accordance with the payoff letter
      referred to in §11.15.

     

    11.17.  Signature
      Fruit Tax Sharing Agreement.
      The
      Administrative Agent shall have received evidence that the Agreement for the
      Responsibility and Allocation of Income Taxes, dated February 26, 2002, between
      Signature Fruit and John Hancock Life Insurance Company shall have been
      terminated without any payment by or other adverse consequence to Signature
      Fruit.

     

    11.18.  Underwriting
      Fee.
      The
      Administrative Agent and Arranger shall have received the underwriting fee
      (the
“Underwriting
      Fee”)
      for
      the Administrative Agent’s and Arranger’s own accounts on the Effective Date, as
      provided for in the Fee Letter.

     

    
      	12.  	
              CONDITIONS
                TO ALL BORROWINGS.

            

    

     

    The
      obligations of the Lenders to make any Loan and of the Issuing Bank to issue,
      extend or renew any Letter of Credit, in each case whether on or after the
      Effective Date, shall also be subject to the satisfaction of the following
      conditions precedent:

     

    12.1.  Representations
      True; No Event of Default.
      Each of
      the representations and warranties of any of the Borrowers and their
      Subsidiaries contained in this Credit Agreement, the other Loan Documents or
      in
      any document or instrument delivered pursuant to or in connection with this
      Credit Agreement shall be true as of the date as of which they were made and
      shall also be true at and as of the time of the making of such Loan or the
      issuance, extension or renewal of such Letter of Credit, with the same effect
      as
      if made at and as of that time (except to the extent of changes resulting from
      transactions contemplated or permitted by this Credit Agreement and to the
      extent that such representations and warranties relate expressly to an earlier
      date) and no Default or Event of Default shall have occurred and be
      continuing.

     

    12.2.  No
      Legal Impediment.
      No
      change shall have occurred in any law or regulations thereunder or
      interpretations thereof that in the reasonable opinion of any Lender would
      make
      it illegal for such Lender to make such Loan or to participate in the issuance,
      extension or renewal of such Letter of Credit or in the reasonable opinion
      of
      the Issuing Bank would make it illegal for the Issuing Bank to issue, extend
      or
      renew such Letter of Credit.

     

    12.3.  Proceedings
      and Documents.
      All
      proceedings in connection with the transactions contemplated by this Credit
      Agreement, the other Loan Documents and all other documents incident thereto
      shall be satisfactory in substance and in form to the Lenders and to the
      Administrative Agent and the Administrative Agent’s Special Counsel, and the
      Lenders, the Administrative Agent and such counsel shall have received all
      information and such counterpart originals or certified or other copies of
      such
      documents as the Administrative Agent may reasonably request.

     

    12.4.  Borrowing
      Base Report.
      The
      Administrative Agent shall have received the most recent Borrowing Base Report
      required to be delivered to the Administrative Agent in accordance with §8.4(e)
      and, if requested by the Administrative Agent, a Borrowing Base Report dated
      within five (5) days of the Drawdown Date of such Loan or of the date of
      issuance, extension or renewal of such Letter of Credit.

     

    
      	13.  	
              EVENTS
                OF DEFAULT; ACCELERATION;
                ETC.

            

    

     

    13.1.  Events
      of Default and Acceleration.
      If any
      of the following events (“Events
      of Default”
or,
      if
      the giving of notice or the lapse of time or both is required, then, prior
      to
      such notice or lapse of time, “Defaults”)
      shall
      occur:

     

    (a)  the
      Borrowers shall fail to pay any principal of the Loans or any Reimbursement
      Obligation when the same shall become due and payable, whether at the stated
      date of maturity or any accelerated date of maturity or at any other date fixed
      for payment;

     

    (b)  the
      Borrowers or any of their Subsidiaries shall fail to pay any interest on the
      Loans, any Fees, or other sums due hereunder or under any of the other Loan
      Documents, when the same shall become due and payable, whether at the stated
      date of maturity or any accelerated date of maturity or at any other date fixed
      for payment;

     

    (c)  the
      Borrowers shall fail to comply with any of their covenants contained in §§8.1,
      8.4, 8.5, the first sentence of 8.6, 8.7, 8.12, 8.13, 8.14, 8.15, 8.16, 9 or
      10;

     

    (d)  the
      Borrowers or any of their Subsidiaries shall fail to perform any term, covenant
      or agreement contained herein or in any of the other Loan Documents (other
      than
      those specified elsewhere in this §13.1) for fifteen (15) days after the earlier
      of (i) the date that written notice of such failure has been given to the
      Borrowers by the Administrative Agent, and (ii) the date that an officer of
      any
      Borrower or any Subsidiary of a Borrower becomes aware of such
      failure;

     

    (e)  any
      representation or warranty of the Borrowers or any of their Subsidiaries in
      this
      Credit Agreement or any of the other Loan Documents or in any other document
      or
      instrument delivered pursuant to or in connection with this Credit Agreement
      shall be determined to have been false in any material respect upon the date
      when made or deemed to have been made or repeated;

     

    (f)  any
      Borrower or any Subsidiary of a Borrower shall fail to pay when due, or within
      any applicable period of grace, any obligation for borrowed money (including
      any
      amount owed under the Master Reimbursement Agreement, the Hancock Amended and
      Restated Note Agreement, the Hancock Signature Note Agreement Loans and the
      Silgan Payable) or credit received or in respect of any Capitalized Leases,
      or
      fail to observe or perform any material term, covenant or agreement contained
      in
      any agreement by which it is bound (including the Hancock Amended and Restated
      Note Agreement, the Master Reimbursement Agreement, and the documents evidencing
      and securing the Hancock Signature Note Agreement Loans and the Silgan Payable),
      evidencing or securing borrowed money or credit received or in respect of any
      Capitalized Leases for such period of time as would permit (assuming the giving
      of appropriate notice if required) the holder or holders thereof or of any
      obligations issued thereunder to accelerate the maturity thereof, or any such
      holder or holders shall rescind or shall have a right to rescind the purchase
      of
      any such obligations;

     

    (g)  any
      Borrower or any Subsidiary of a Borrower shall make an assignment for the
      benefit of creditors, or admit in writing its inability to pay or generally
      fail
      to pay its debts as they mature or become due, or shall petition or apply for
      the appointment of a trustee or other custodian, liquidator or receiver of
      any
      Borrower or any Subsidiary of a Borrower or of any substantial part of the
      assets of any Borrower or any Subsidiary of a Borrower or shall commence any
      case or other proceeding relating to any Borrower or any Subsidiary of a
      Borrower under any bankruptcy, reorganization, arrangement, insolvency,
      readjustment of debt, dissolution or liquidation or similar law of any
      jurisdiction, now or hereafter in effect, or shall take any action to authorize
      or in furtherance of any of the foregoing, or if any such petition or
      application shall be filed or any such case or other proceeding shall be
      commenced against any Borrower or any Subsidiary of a Borrower and such Borrower
      or Subsidiary shall indicate its approval thereof, consent thereto or
      acquiescence therein or such petition or application shall not have been
      dismissed within sixty (60) days following the filing thereof;

     

    (h)  a
      decree
      or order is entered appointing any such trustee, custodian, liquidator or
      receiver or adjudicating any Borrower or any Subsidiary of a Borrower bankrupt
      or insolvent, or approving a petition in any such case or other proceeding,
      or a
      decree or order for relief is entered in respect of any Borrower or any
      Subsidiary of a Borrower in an involuntary case under federal bankruptcy laws
      as
      now or hereafter constituted;

     

    (i)  there
      shall remain in force, undischarged, unsatisfied and unstayed, for more than
      forty-five days, whether or not consecutive, any final judgment against any
      Borrower or any Subsidiary of a Borrower that, with other outstanding final
      judgments undischarged against any Borrower or any Subsidiary of a Borrower,
      exceeds in the aggregate $500,000;

     

    (j)  any
      Borrower, any holder of Hancock Signature Note Agreement Loans, any holder
      of
      Hancock Amended and Restated Note Agreement Loans or any collateral agent (other
      than Bank of America, N.A.) shall breach any of its agreements or obligations
      under the Intercreditor Agreement;

     

    (k)  if
      any of
      the Loan Documents shall be cancelled, terminated, revoked or rescinded or
      the
      Administrative Agent’s security interests or liens in a substantial portion of
      the Collateral shall cease to be perfected, or shall cease to have the priority
      contemplated by the Security Documents, in each case otherwise than in
      accordance with the terms thereof or with the express prior written agreement,
      consent or approval of the Lenders, or any action at law, suit or in equity
      or
      other legal proceeding to cancel, revoke or rescind any of the Loan Documents
      shall be commenced by or on behalf of any Borrower or any Subsidiary of any
      Borrower or any of their respective stockholders, or any court or any other
      governmental or regulatory authority or agency of competent jurisdiction shall
      make a determination that, or issue a judgment, order, decree or ruling to
      the
      effect that, any one or more of the Loan Documents is illegal, invalid or
      unenforceable in accordance with the terms thereof;

     

    (l)  any
      Borrower or any ERISA Affiliate incurs any liability to the PBGC or a Guaranteed
      Pension Plan pursuant to Title IV of ERISA in an aggregate amount exceeding
      $500,000, or any Borrower or any ERISA Affiliate is assessed withdrawal
      liability pursuant to Title IV of ERISA by a Multiemployer Plan requiring
      aggregate annual payments exceeding $500,000, or any of the following occurs
      with respect to a Guaranteed Pension Plan: (i) an ERISA Reportable Event, or
      a
      failure to make a required installment or other payment (within the meaning
      of
§302(f)(1) of ERISA), provided
      that the
      Administrative Agent reasonably determines that such event (A) could be expected
      to result in liability of the Borrowers or any of their Subsidiaries to the
      PBGC
      or such Guaranteed Pension Plan in an aggregate amount exceeding $500,000 and
      (B) could constitute grounds for the termination of such Guaranteed Pension
      Plan
      by the PBGC, for the appointment by the appropriate United States District
      Court
      of a trustee to administer such Guaranteed Pension Plan or for the imposition
      of
      a lien in favor of such Guaranteed Pension Plan; or (ii) the appointment by
      a
      United States District Court of a trustee to administer such Guaranteed Pension
      Plan; or (iii) the institution by the PBGC of proceedings to terminate such
      Guaranteed Pension Plan;

     

    (m)  any
      Borrower or any Subsidiary of any Borrower shall be enjoined, restrained or
      in
      any way prevented by the order of any Governmental Authority from conducting
      any
      material part of its business and such order shall continue in effect for more
      than thirty (30) days;

     

    (n)  there
      shall occur any material damage to, or loss, theft or destruction of, any
      Collateral which could have a Material Adverse Effect, (which is not covered
      by
      insurance for which the insurance company has confirmed coverage in writing)
      or
      any strike, lockout, labor dispute, embargo, condemnation, act of God or public
      enemy, or other casualty, which in any such case causes, for more than fifteen
      (15) consecutive days, the cessation or substantial curtailment of revenue
      producing activities at any facility of any Borrower or any Subsidiary of any
      Borrower if such cessation or curtailment of revenue producing activities could
      have a Material Adverse Effect;

     

    (o)  there
      shall occur the loss, suspension or revocation of, or failure to renew, any
      license or permit now held or hereafter acquired by any Borrower or any
      Subsidiary of a Borrower if such loss, suspension, revocation or failure to
      renew could have a Material Adverse Effect;

     

    (p)  any
      Borrower, any Subsidiary of a Borrower or any of Senior Management shall be
      indicted for a state or federal crime, or any criminal action shall otherwise
      have been brought against the Borrowers, any of their Subsidiaries or any Senior
      Management, a punishment for which in any such case could include the forfeiture
      of any assets of such Borrower or such Subsidiary included in the Borrowing
      Base
      or any assets of such Borrower, such Subsidiary or such Senior Management not
      included in the Borrowing Base but having a fair market value in excess of
      $100,000;

     

    (q)  any
      Adverse GMOI Event shall occur;

     

    (r)  any
      PACA
      Claim, PACA Claims or claim or claims under the California Producer’s Lien
      Law
      in
      excess of $100,000 individually or in the aggregate shall be asserted against
      any Borrower or any Subsidiary of a Borrower; or

     

    (s)  a
      Change
      of Control shall occur;

     

    then,
      and
      in any such event, so long as the same may be continuing, the Administrative
      Agent may, and upon the request of the Required Lenders shall, by notice in
      writing to the Borrowers declare all amounts owing with respect to this Credit
      Agreement, the Notes and the other Loan Documents and all Reimbursement
      Obligations to be, and they shall thereupon forthwith become, immediately due
      and payable without presentment, demand, protest or other notice of any kind,
      all of which are hereby expressly waived by the Borrower; provided
      that in
      the event of any Event of Default specified in §§13.1(g), 13.1(h) or 13.1(k),
      all such amounts shall become immediately due and payable automatically and
      without any requirement of notice from the Administrative Agent or any
      Lender.

     

    13.2.  Termination
      of Commitments.
      If any
      one or more of the Events of Default specified in §13.1(g), §13.1(h) or §13.1(k)
      shall occur, any unused portion of the credit hereunder shall forthwith
      terminate and each of the Lenders shall be relieved of all further obligations
      to make Loans to the Borrowers and the Issuing Bank shall be relieved of all
      further obligations to issue, extend or renew Letters of Credit. If any other
      Event of Default shall have occurred and be continuing, or if on any Drawdown
      Date or other date for issuing, extending or renewing any Letter of Credit
      the
      conditions precedent to the making of the Loans to be made on such Drawdown
      Date
      or (as the case may be) to issuing, extending or renewing such Letter of Credit
      on such other date are not satisfied, the Administrative Agent may and, upon
      the
      request of the Required Lenders, shall, by notice to the Borrowers, terminate
      the unused portion of the credit hereunder, and upon such notice being given
      such unused portion of the credit hereunder shall terminate immediately and
      each
      of the Lenders shall be relieved of all further obligations to make Loans and
      the Issuing Bank shall be relieved of all further obligations to issue, extend
      or renew Letters of Credit. No termination of the credit hereunder shall relieve
      the Borrowers or any of their Subsidiaries of any of the
      Obligations.

     

    13.3.  Remedies.
      In case
      any one or more of the Events of Default shall have occurred and be continuing,
      and whether or not the Lenders shall have accelerated the maturity of the Loans
      pursuant to §13.1, each Lender and the Issuing Bank, if owed any amount with
      respect to the Loans or the Reimbursement Obligations, may,
      with the
      consent of the Required Lenders but not otherwise, proceed to protect and
      enforce its rights by suit in equity, action at law or other appropriate
      proceeding, whether for the specific performance of any covenant or agreement
      contained in this Credit Agreement and the other Loan Documents or any
      instrument pursuant to which the Obligations to such Lender are evidenced,
      including as permitted by applicable law the obtaining of the ex
      parte
      appointment of a receiver, and, if such amount shall have become due, by
      declaration or otherwise, proceed to enforce the payment thereof or any other
      legal or equitable right of such Lender or Issuing Bank. No remedy herein
      conferred upon any Lender or the Issuing Bank or Administrative Agent or the
      holder of any Note or purchaser of any Letter of Credit Participation is
      intended to be exclusive of any other remedy and each and every remedy shall
      be
      cumulative and shall be in addition to every other remedy given hereunder or
      now
      or hereafter existing at law or in equity or by statute or any other provision
      of law.

     

    13.4.  Distribution
      of Collateral Proceeds.
      In the
      event that the Administrative Agent receives proceeds as contemplated by §2.12
      or in the event that, following the occurrence or during the continuance of
      any
      Default or Event of Default, the Administrative Agent, the Issuing Bank or
      any
      Lender, as the case may be, receives any monies in connection with the
      enforcement of any of the Security Documents, or otherwise with respect to
      the
      realization upon any of the Collateral, such monies shall, subject to the
      provisions of the Intercreditor Agreement, be distributed for application as
      follows:

     

    (a)  First,
      to
      the payment of, or (as the case may be) the reimbursement of the Administrative
      Agent for or in respect of all reasonable costs, expenses, disbursements and
      losses which shall have been incurred or sustained by the Administrative Agent
      in connection with the collection of such monies by the Administrative Agent,
      for the exercise, protection or enforcement by the Administrative Agent of
      all
      or any of the rights, remedies, powers and privileges of the Administrative
      Agent under this Credit Agreement or any of the other Loan Documents or in
      respect of the Collateral or in support of any provision of adequate indemnity
      to the Administrative Agent against any taxes or liens which by law shall have,
      or may have, priority over the rights of the Administrative Agent to such
      monies;

     

    (b)  Second,
      to all other Obligations (other than Obligations arising under any Hedging
      Agreement or the Cash Management Services) in such order or preference as the
      Required Lenders may determine; provided,
      however,
      that
      (i) distributions shall be made (A) pari
      passu
      among
      Obligations with respect to the Administrative Agent’s Fee, the Letter of Credit
      Fees and all other Obligations and (B) with respect to each type of Obligation
      owing to the Lenders, such as interest, principal, fees and expenses, among
      the
      Lenders pro
      rata,
      and
      (ii) the Administrative Agent may in its discretion make proper allowance to
      take into account any Obligations not then due and payable;

     

    (c)  Third,
      to
      obligations of the Borrowers and their Subsidiaries to any of the Lenders and/or
      the Administrative Agent and/or any of their Affiliates with respect to
      Obligations relating to Hedging Agreements and the Cash Management
      Services;

     

    (d)  Fourth,
      upon payment and satisfaction in full or other provisions for payment in full
      satisfactory to the Lenders and the Administrative Agent of all of the
      Obligations, to the payment of any obligations required to be paid pursuant
      to
§9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial Code; and

     

    (e)  Fifth,
      the excess, if any, shall be returned to the Borrowers or to such other Persons
      as are entitled thereto.

     

    
      	14.  	
              THE
                ADMINISTRATIVE AGENT.

            

    

     

    14.1.  Authorization.

     

    (a)  The
      Administrative Agent is authorized to take such action on behalf of each of
      the
      Lenders and to exercise all such powers as are hereunder and under any of the
      other Loan Documents and any related documents delegated to the Administrative
      Agent, together with such powers as are reasonably incident thereto,
provided
      that no
      duties or responsibilities not expressly assumed herein or therein shall be
      implied to have been assumed by the Administrative Agent.

     

    (b)  The
      relationship between the Administrative Agent and each of the Lenders is that
      of
      an independent contractor. The use of the term “Administrative Agent” is for
      convenience only and is used to describe, as a form of convention, the
      independent contractual relationship between the Administrative Agent and each
      of the Lenders. Nothing contained in this Credit Agreement or any other Loan
      Document shall be construed to create an agency, trust or other fiduciary
      relationship between the Administrative Agent and any of the
      Lenders.

     

    (c)  As
      an
      independent contractor empowered by the Lenders to exercise certain rights
      and
      perform certain duties and responsibilities hereunder and under the other Loan
      Documents, the Administrative Agent is nevertheless a “representative” of the
      Lenders, as that term is defined in Article 1 of the Uniform Commercial Code,
      for purposes of actions for the benefit of the Lenders and the Administrative
      Agent with respect to all collateral security and guaranties contemplated by
      the
      Loan Documents. Such actions include the designation of the Administrative
      Agent
      as “secured party” or the like on all financing statements and other documents
      and instruments, whether recorded or otherwise, relating to the attachment,
      perfection, priority or enforcement of any security interests in collateral
      security intended to secure the payment or performance of any of the
      Obligations, all for the benefit of the Lenders, the Issuing Bank and the
      Administrative Agent.

     

    14.2.  Employees
      and Administrative Agents.
      The
      Administrative Agent may exercise its powers and execute its duties by or
      through employees or agents and shall be entitled to take, and to rely on,
      advice of counsel concerning all matters pertaining to its rights and duties
      under this Credit Agreement and the other Loan Documents. The Administrative
      Agent may utilize the services of such Persons as the Administrative Agent
      in
      its sole discretion may reasonably determine, and all reasonable fees and
      expenses of any such Persons shall be paid by the Borrowers.

     

    14.3.  No
      Liability.
      Neither
      the Administrative Agent nor any of its shareholders, directors, officers or
      employees nor any other Person assisting them in their duties nor any agent
      or
      employee thereof, shall be liable for any waiver, consent or approval given
      or
      any action taken, or omitted to be taken, in good faith by it or them hereunder
      or under any of the other Loan Documents, or in connection herewith or
      therewith, or be responsible for the consequences of any oversight or error
      of
      judgment whatsoever, except that the Administrative Agent or such other Person,
      as the case may be, may be liable for losses due to its willful misconduct
      or
      gross negligence.

     

    14.4.  No
      Representations.

     

    14.4.1.  General.
      The
      Administrative Agent shall not be responsible for the execution or validity
      or
      enforceability of this Credit Agreement, the Notes, the Letters of Credit,
      any
      of the other Loan Documents or any instrument at any time constituting, or
      intended to constitute, collateral security for the Obligations, or for the
      value of any such collateral security or for the validity, enforceability or
      collectability of any such amounts owing with respect to the Obligations, or
      for
      any recitals or statements, warranties or representations made herein or in
      any
      of the other Loan Documents or in any certificate or instrument hereafter
      furnished to it by or on behalf of the Borrowers or any of their Subsidiaries,
      or be bound to ascertain or inquire as to the performance or observance of
      any
      of the terms, conditions, covenants or agreements herein or in any instrument
      at
      any time constituting, or intended to constitute, collateral security for the
      Obligations or to inspect any of the properties, books or records of the
      Borrowers or any of their Subsidiaries. The Administrative Agent shall not
      be
      bound to ascertain whether any notice, consent, waiver or request delivered
      to
      it by the Borrowers or any holder of any of the Obligations shall have been
      duly
      authorized or is true, accurate and complete. The Administrative Agent has
      not
      made nor does it now make any representations or warranties, express or implied,
      nor does it assume any liability to the Lenders or the Issuing Bank, with
      respect to the creditworthiness or financial conditions of the Borrowers or
      any
      of their Subsidiaries. Each Lender acknowledges that it has, independently
      and
      without reliance upon the Administrative Agent or any other Lender, and based
      upon such information and documents as it has deemed appropriate, made its
      own
      credit analysis and decision to enter into this Credit Agreement.

     

    14.4.2.  Closing
      Documentation, etc.
      For
      purposes of determining compliance with the conditions set forth in §11, each
      Lender that has executed this Credit Agreement shall be deemed to have consented
      to, approved or accepted, or to be satisfied with, each document and matter
      either sent, or made available, by the Administrative Agent or
      the
      Arranger to such Lender for consent, approval, acceptance or satisfaction,
      or
      required thereunder to be to be consent to or approved by or acceptable or
      satisfactory to such Lender, unless an officer of the Administrative Agent
      or
      the Arranger active upon the Borrowers’ account shall have received notice from
      such Lender not less than three days prior to the Effective Date specifying
      such
      Lender’s objection thereto and such objection shall not have been withdrawn by
      notice to the Administrative Agent or the Arranger to such effect on or prior
      to
      the Effective Date.

     

    14.5.  Payments.

     

    14.5.1.  Payments
      to Administrative Agent.
      A
      payment by the Borrowers to the Administrative Agent hereunder or under any
      of
      the other Loan Documents for the account of any Lender shall constitute a
      payment to such Lender. The Administrative Agent agrees promptly to distribute
      to each Lender such Lender’s pro
      rata
      share of
      payments received by the Administrative Agent for the account of the Lenders
      except as otherwise expressly provided herein or in any of the other Loan
      Documents.

     

    14.5.2.  Distribution
      by Administrative Agent.
      If in
      the opinion of the Administrative Agent the distribution of any amount received
      by it in such capacity hereunder, under this Credit Agreement or any of the
      other Loan Documents might involve it in liability, it may refrain from making
      distribution until its right to make distribution shall have been adjudicated
      by
      a court of competent jurisdiction. If a court of competent jurisdiction shall
      adjudge that any amount received and distributed by the Administrative Agent
      is
      to be repaid, each Person to whom any such distribution shall have been made
      shall either repay to the Administrative Agent its proportionate share of the
      amount so adjudged to be repaid or shall pay over the same in such manner and
      to
      such Persons as shall be determined by such court.

     

    14.5.3.  Delinquent
      Lenders.
      Notwithstanding anything to the contrary contained in this Credit Agreement
      or
      any of the other Loan Documents, any Lender that fails (a) to make available
      to
      the Administrative Agent its pro
      rata
      share of
      any Loan or to purchase any Letter of Credit Participation or (b) to comply
      with
      the provisions of §16.1 with respect to making dispositions and arrangements
      with the other Lenders, where such Lender’s share of any payment received,
      whether by setoff or otherwise, is in excess of its pro
      rata
      share of
      such payments due and payable to all of the Lenders, in each case as, when
      and
      to the full extent required by the provisions of this Credit Agreement, shall
      be
      deemed delinquent (a “Delinquent
      Lender”)
      and
      shall be deemed a Delinquent Lender until such time as such delinquency is
      satisfied. A Delinquent Lender shall be deemed to have assigned any and all
      payments due to it from the Borrowers, whether on account of outstanding Loans,
      Unpaid Reimbursement Obligations, interest, fees or otherwise, to the remaining
      nondelinquent Lenders for application to, and reduction of, their respective
      pro rata
      shares
      of all outstanding Loans and Unpaid Reimbursement Obligations. The Delinquent
      Lender hereby authorizes the Administrative Agent to distribute such payments
      to
      the nondelinquent Lenders in proportion to their respective pro
      rata
      shares
      of all outstanding Loans and Unpaid Reimbursement Obligations. A Delinquent
      Lender shall be deemed to have satisfied in full a delinquency when and if,
      as a
      result of application of the assigned payments to all outstanding Loans and
      Unpaid Reimbursement Obligations of the nondelinquent Lenders, the Lenders’
respective pro rata
      shares
      of all outstanding Loans and Unpaid Reimbursement Obligations have returned
      to
      those in effect immediately prior to such delinquency and without giving effect
      to the nonpayment causing such delinquency.

     

    14.6.  Holders
      of Loans.
      The
      Administrative Agent may deem and treat the payee of any Loan or the purchaser
      of any Letter of Credit Participation as the absolute owner or purchaser thereof
      for all purposes hereof until it shall have been furnished in writing with
      a
      different name by such payee or by a subsequent holder, assignee or
      transferee.

     

    14.7.  Indemnity.
      The
      Lenders ratably agree hereby to indemnify and hold harmless the Administrative
      Agent and its affiliates from and against any and all claims, actions and suits
      (whether groundless or otherwise), losses, damages, costs, expenses (including
      any expenses for which the Administrative Agent or such affiliate has not been
      reimbursed by the Borrowers as required by §16.2), and liabilities of every
      nature and character arising out of or related to this Credit Agreement, the
      Notes, or any of the other Loan Documents or the transactions contemplated
      or
      evidenced hereby or thereby, or the Administrative Agent’s actions taken
      hereunder or thereunder, except to the extent that any of the same shall be
      directly caused by the Administrative Agent’s willful misconduct or gross
      negligence.

     

    14.8.  Administrative
      Agent as Lender.
      In its
      individual capacity, the Administrative Agent shall have the same obligations
      and the same rights, powers and privileges in respect to its Commitment and
      the
      Loans made by it, and as the holder of any of the Loans and as the purchaser
      of
      any Letter of Credit Participations, as it would have were it not also the
      Administrative Agent.

     

    14.9.  Resignation.
      The
      Administrative Agent may resign at any time by giving sixty (60) days prior
      written notice thereof to the Lenders and the Borrowers. Upon any such
      resignation, the Required Lenders shall have the right to appoint a successor
      Administrative Agent. Unless a Default or Event of Default shall have occurred
      and be continuing, such successor Administrative Agent shall be reasonably
      acceptable to the Borrowers. If no successor Administrative Agent shall have
      been so appointed by the Required Lenders and shall have accepted such
      appointment within thirty (30) days after the retiring Administrative Agent’s
      giving of notice of resignation, then the retiring Administrative Agent may,
      on
      behalf of the Lenders, appoint a successor Administrative Agent, which shall
      be
      a financial institution indebtedness of which has a rating of not less than
      A or
      its equivalent by S&P. Upon the acceptance of any appointment as
      Administrative Agent hereunder by a successor Administrative Agent, such
      successor Administrative Agent shall thereupon succeed to and become vested
      with
      all the rights, powers, privileges and duties of the retiring Administrative
      Agent, and the retiring Administrative Agent shall be discharged from its duties
      and obligations hereunder. After any retiring Administrative Agent’s
      resignation, the provisions of this Credit Agreement and the other Loan
      Documents shall continue in effect for its benefit in respect of any actions
      taken or omitted to be taken by it while it was acting as Administrative
      Agent.

     

    14.10.  Notification
      of Defaults and Events of Default.
      Each
      Lender hereby agrees that, upon learning of the existence of a Default or an
      Event of Default, it shall promptly notify the Administrative Agent thereof.
      The
      Administrative Agent hereby agrees that upon receipt of any notice under this
      §14.10 it shall promptly notify the other Lenders of the existence of such
      Default or Event of Default.

     

    14.11.  Duties
      in the Case of Enforcement.
      In case
      one of more Events of Default have occurred and shall be continuing, and whether
      or not acceleration of the Obligations shall have occurred, the Administrative
      Agent shall, if (a) so requested by the Required Lenders and (b) the Lenders
      have provided to the Administrative Agent such additional indemnities and
      assurances against expenses and liabilities as the Administrative Agent may
      reasonably request, proceed to enforce the provisions of the Security Documents
      authorizing the sale or other disposition of all or any part of the Collateral
      and exercise all or any such other legal and equitable and other rights or
      remedies as it may have in respect of such Collateral. The Required Lenders
      may
      direct the Administrative Agent in writing as to the method and the extent
      of
      any such sale or other disposition, the Lenders hereby agreeing to indemnify
      and
      hold the Administrative Agent, harmless from all liabilities incurred in respect
      of all actions taken or omitted in accordance with such directions, provided
      that the
      Administrative Agent need not comply with any such direction to the extent
      that
      the Administrative Agent reasonably believes the Administrative Agent’s
      compliance with such direction to be unlawful or commercially unreasonable
      in
      any applicable jurisdiction.

     

    14.12. Documentation
      and Syndication Agents.
      Each
      party hereto agrees and acknowledges that the Syndication Agent and the
      Documentation Agent do not have any duties or responsibilities in their
      capacities as syndication agent and documentation agent, respectively, hereunder
      and shall not have, or become subject to, any liability hereunder in such
      capacities.

     

    
      	15.  	
              SUCCESSORS
                AND ASSIGNS.

            

    

     

    15.1.  General
      Conditions.
      The
      provisions of this Credit Agreement shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors and assigns
      permitted hereby, except that the Borrowers may not assign or otherwise transfer
      any of their rights or obligations hereunder without the prior written consent
      of each Lender and no Lender may assign or otherwise transfer any of its rights
      or obligations hereunder except (a) to an Eligible Assignee in accordance with
      the provisions of §15.2, (b) by way of participation in accordance with the
      provisions of §15.4 or (c) by way of pledge or assignment of a security interest
      subject to the restrictions of §15.6 (and any other attempted assignment or
      transfer by any party hereto shall be null and void). Nothing in this Credit
      Agreement, expressed or implied, shall be construed to confer upon any Person
      (other than the parties hereto, their respective successors and assigns
      permitted hereby, Participants to the extent provided in §15.4 and, to the
      extent expressly contemplated hereby, the Related Parties of each of the
      Administrative Agent and the Lenders) any legal or equitable right, remedy
      or
      claim under or by reason of this Credit Agreement or any of the other Loan
      Documents.

     

    15.2.  Assignments.
      Any
      Lender may at any time assign to one or more Eligible Assignees all or a portion
      of its rights and obligations under this Credit Agreement (including all or
      a
      portion of its Commitment and the Loans at the time owing to it); provided
      that (a)
      except in the cases of an assignment of the entire remaining amount of the
      assigning Lender’s Commitment and the Loans at the time owing to it or of an
      assignment to a Lender or a Lender Affiliate, the aggregate amount of the
      Commitment (which for this purpose includes Loans outstanding thereunder) or,
      if
      the applicable Commitment is not then in effect, the principal outstanding
      balance of the Loan of the assigning Lender subject to each such assignment
      (determined as of the date on which the Assignment and Acceptance with respect
      to such assignment is delivered to the Administrative Agent) shall not be less
      than $5,000,000 unless each of the Administrative Agent and, so long as no
      Default or Event of Default has occurred and is continuing, the Borrowers
      otherwise consent (each such consent not to be unreasonably withheld or
      delayed); (b) each partial assignment shall be made as an assignment of a
      proportionate part of all the assigning Lender’s rights and obligations under
      this Credit Agreement with respect to the Loan or the Commitment assigned,
      it
      being understood that non-pro rata assignments of or among any of the
      Commitments, the Loans, and Reimbursement Obligations are not permitted; (c)
      any
      assignment of a Commitment must be approved by the Administrative Agent unless
      the Person that is the proposed assignee is itself a Lender with a Commitment
      (whether or not the proposed assignee would otherwise qualify as an Eligible
      Assignee); and (d) the parties to each assignment shall execute and deliver
      to
      the Administrative Agent an Assignment and Acceptance, together with a
      processing and recordation fee of $3,500 and the Eligible Assignee, if it shall
      not be a Lender, shall deliver to the Administrative Agent an Administrative
      Questionnaire. Subject to acceptance and recording thereof by the Administrative
      Agent pursuant to §15.3, from and after the effective date specified in each
      Assignment and Acceptance, the Eligible Assignee thereunder shall be a party
      to
      this Credit Agreement and, to the extent of the interest assigned by such
      Assignment and Acceptance have the rights and obligations of a Lender under
      this
      Credit Agreement, and the assigning Lender thereunder shall, to the extent
      of
      the interest assigned by such Assignment and Acceptance, be released from its
      obligations under this Credit Agreement (and, in the case of an Assignment
      and
      Acceptance covering all of the assigning Lender’s rights and obligations under
      this Credit Agreement, such Lender shall cease to be a party hereto) but shall
      continue to be entitled to the benefits of §§5.2.2, 5.6, 5.7, 5.9 and 16.3
 with
      respect to facts and circumstances occurring prior to the effective date of
      such
      assignment. Any assignment or transfer by a Lender of rights or obligations
      under this Credit Agreement that does not comply with this paragraph shall
      be
      treated for purposes of this Credit Agreement as a sale by such Lender of a
      participation in such rights and obligations in accordance with
§15.4.

     

    15.3.  Register.
      The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrowers, shall maintain at the Administrative Agent’s Office a copy of each
      Assignment and Acceptance delivered to it and a register for the recordation
      of
      the names and addresses of the Lenders, and the Commitments of, and principal
      amounts of the Loans owing to, each Lender pursuant to the terms hereof from
      time to time (the “Register”).
      The
      entries in the Register shall be conclusive, and the Borrowers, the
      Administrative Agent, the Issuing Bank and the Lenders may treat each Person
      whose name is recorded in the Register pursuant to the terms hereof as a Lender
      hereunder for all purposes of this Credit Agreement, notwithstanding notice
      to
      the contrary. The Register shall be available for inspection by the Borrowers,
      the Issuing Bank and any Lender, at any reasonable time and from time to time
      upon reasonable prior notice.

     

    15.4.  Participations.
      Any
      Lender may at any time, without the consent of, or notice to, the Borrowers
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person) (each, a “Participant”)
      in all
      or a portion of such Lender’s rights and/or obligations under this Credit
      Agreement (including all or a portion of its Commitment and/or the Loans owing
      to it); provided
      that
      (a) such Lender’s obligations under this Credit Agreement shall remain
      unchanged, (b) such Lender shall remain solely responsible to the other
      parties hereto for the performance of such obligations and (c) the
      Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders
      shall continue to deal solely and directly with such Lender in connection with
      such Lender’s rights and obligations under this Credit Agreement. Any agreement
      or instrument pursuant to which a Lender sells such a participation shall
      provide that such Lender shall retain the sole right to enforce this Credit
      Agreement and to approve any amendment, modification or waiver of any provision
      of this Credit Agreement; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, modification or waiver
      that
      would reduce the principal of or the interest rate on any Loans, extend the
      term
      or increase the amount of the Commitment of such Lender as it relates to such
      Participant, reduce the amount of any Unused Fee or Letter of Credit Fees to
      which such Participant is entitled or extend any regularly scheduled payment
      date for principal or interest. Subject to §15.5, the Borrowers agree that each
      Participant shall be entitled to the benefits of §§5.2.2, 5.6, 5.7 and
      5.9 to
      the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to §15.2. To the extent permitted by law, each Participant also shall
      be entitled to the benefits of §16.1 as
      though
      it were a Lender, provided such Participant agrees to be subject to §16.1 as
      though it were a Lender.

     

    15.5.  Payments
      to Participants.
      A
      Participant shall not be entitled to receive any greater payment under §§5.2.2,
      5.6 and 5.7 than the applicable Lender would have been entitled to receive
      with
      respect to the participation sold to such Participant, unless the sale of the
      participation to such Participant is made with the Borrowers’ prior written
      consent. A Participant that would be a Non-U.S. Lender if it were a Lender
      shall
      not be entitled to the benefits of §5.2.2 unless the Borrowers are notified of
      the participation sold to such Participant and such Participant agrees, for
      the
      benefit of the Borrowers, to comply with §5.2.3 as though it were a
      Lender.

     

    15.6.  Miscellaneous
      Assignment Provisions.
      A
      Lender may at any time grant a security interest in all or any portion of its
      rights under this Credit Agreement to secure obligations of such Lender,
      including without limitation (a) any pledge or assignment to secure obligations
      to any of the twelve Federal Reserve Banks organized under §4 of the Federal
      Reserve Act, 12 U.S.C. §341 and (b) with respect to any Lender that is a Fund,
      to any lender or any trustee for, or any other representative of, holders of
      obligations owed or securities issued by such Fund as security for such
      obligations or securities or any institutional custodian for such Fund or for
      such lender; provided that no such grant shall release such Lender from any
      of
      its obligations hereunder, provide any voting rights hereunder to the secured
      party thereof, substitute any such secured party for such Lender as a party
      hereto or affect any rights or obligations of the Borrowers or Administrative
      Agent hereunder.

     

    15.7.  Assignee
      or Participant Affiliated with a Borrower.
      If any
      assignee Lender is an Affiliate of a Borrower, then any such assignee Lender
      shall have no right to vote as a Lender hereunder or under any of the other
      Loan
      Documents for purposes of granting consents or waivers or for purposes of
      agreeing to amendments or other modifications to any of the Loan Documents
      or
      for purposes of making requests to the Administrative Agent pursuant to §13.1 or
§13.2, and the determination of the Required Lenders shall for all purposes
      of
      this Credit Agreement and the other Loan Documents be made without regard to
      such assignee Lender’s interest in any of the Loans or Reimbursement
      Obligations. If any Lender sells a participating interest in any of the Loans
      or
      Reimbursement Obligations to a Participant, and such Participant is a Borrower
      or an Affiliate of a Borrower, then such transferor Lender shall promptly notify
      the Administrative Agent of the sale of such participation. A transferor Lender
      shall have no right to vote as a Lender hereunder or under any of the other
      Loan
      Documents for purposes of granting consents or waivers or for purposes of
      agreeing to amendments or modifications to any of the Loan Documents or for
      purposes of making requests to the Administrative Agent pursuant to §13.1 or
§13.2 to the extent that such participation is beneficially owned by any
      Borrower or any Affiliate of any Borrower, and the determination of the Required
      Lenders shall for all purposes of this Credit Agreement and the other Loan
      Documents be made without regard to the interest of such transferor Lender
      in
      the Loans or Reimbursement Obligations to the extent of such
      participation.

     

    15.8.  New
      Notes.
      Upon
      its receipt of an Assignment and Acceptance executed by the parties to such
      assignment, together with each Revolving Credit Note subject to such assignment,
      the Administrative Agent shall (a) record the information contained therein
      in
      the Register, and (b) give prompt notice thereof to the Borrowers and the
      Lenders (other than the assigning Lender). Within five (5) Business Days after
      receipt of such notice, the Borrowers, at their own expense, shall execute
      and
      deliver to the Administrative Agent, in exchange for each surrendered Note,
      a
      new Note to the order of such Assignee in an amount equal to the amount assumed
      by such Assignee pursuant to such Assignment and Acceptance and, if the
      assigning Lender has retained some portion of its obligations hereunder, a
      new
      Note to the order of the assigning Lender in an amount equal to the amount
      retained by it hereunder. Such new Notes shall provide that they are
      replacements for the surrendered Notes, shall be in an aggregate principal
      amount equal to the aggregate principal amount of the surrendered Notes, shall
      be dated the effective date of such Assignment and Acceptance and shall
      otherwise be in substantially the form of the assigned Notes. Within five (5)
      days of issuance of any new Notes pursuant to this §15.8, the Borrowers shall,
      upon the request of the assignee Lender, deliver an opinion of counsel,
      addressed to the Lenders and the Administrative Agent, relating to the due
      authorization, execution and delivery of such new Notes and the legality,
      validity and binding effect thereof, in form and substance satisfactory to
      the
      assignee Lender. The surrendered Notes shall be cancelled and returned to the
      Borrowers.

     

    15.9.  Special
      Purpose Funding Vehicle.
      Notwithstanding anything to the contrary contained in this §15, any Lender (a
“Granting
      Lender”)
      may
      grant to a special purpose funding vehicle (an “SPC”)
      of
      such Granting Lender, identified as such in writing from time to time delivered
      by the Granting Lender to the Administrative Agent and the Borrowers, the option
      to provide to the Borrowers all or any part of any Loan that such Granting
      Lender would otherwise be obligated to make to the Borrowers pursuant to this
      Credit Agreement, provided
      that (a)
      nothing herein shall constitute a commitment to make any Loan by any SPC, (b)
      the Granting Bank’s obligations under this Credit Agreement shall remain
      unchanged, (c) the Granting Lender shall retain the sole right to enforce this
      Credit Agreement and to approve any amendment, modification or waiver of any
      provision of this Credit Agreement and (d) if an SPC elects not to exercise
      such
      option or otherwise fails to provide all or any part of such Loan, the Granting
      Lender shall be obligated to make such Loan pursuant to the terms hereof. The
      making of a Loan by an SPC hereunder shall utilize the Commitment of the
      Granting Lender to the same extent, and as if, such Loan were made by the
      Granting Lender. Each party hereto hereby agrees that no SPC shall be liable
      for
      any expense reimbursement, indemnity or similar payment obligation under this
      Credit Agreement (all liability for which shall remain with the Granting
      Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
      agreement shall survive the termination of this Credit Agreement) that, prior
      to
      the date that is one year and one day after the later of (i) the payment in
      full
      of all outstanding senior indebtedness of any SPC and (ii) the Maturity Date,
      it
      will not institute against, or join any other person in instituting against,
      such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceedings or similar proceedings under the laws of the United States of
      America or any State thereof. In addition, notwithstanding anything to the
      contrary contained in this §15.9, any SPC may (A) with notice to, but (except as
      specified below) without the prior written consent of, the Borrowers or the
      Administrative Agent and without paying any processing fee therefor, assign
      all
      or a portion of its interests in any Loans to its Granting Lender or to any
      financial institutions (consented to by the Administrative Agent and, so long
      as
      no Default or Event of Default has occurred and is continuing, the Borrowers,
      which consents shall not be unreasonably withheld or delayed) providing
      liquidity and/or credit facilities to or for the account of such SPC to fund
      the
      Loans made by such SPC or to support the securities (if any) issued by such
      SPC
      to fund such Loans and (B) disclose on a confidential basis any non-public
      information relating to its Loans (other than financial statements referred
      to
      in §§7.4 or 8.4) to any rating agency, commercial paper dealer or provider of a
      surety, guarantee or credit or liquidity enhancement to such SPC. In no event
      shall the Borrowers be obligated to pay to an SPC that has made a Loan any
      greater amount than the Borrowers would have been obligated to pay under this
      Credit Agreement if the Granting Lender had made such Loan. An amendment to
      this
§15.9 without the written consent of an SPC shall be ineffective insofar as
      it
      alters the rights and obligations of such SPC.

     

    
      	16.  	
              PROVISIONS
                OF GENERAL APPLICATIONS.

            

    

     

    16.1.  Setoff.
      The
      Borrowers hereby grant to the Administrative Agent, the Issuing Bank and each
      of
      the Lenders a continuing lien, security interest and right of setoff as security
      for all liabilities and obligations to the Administrative Agent, the Issuing
      Bank and each Lender, whether now existing or hereafter arising, upon and
      against all deposits, credits, collateral and property, now or hereafter in
      the
      possession, custody, safekeeping or control of the Administrative Agent, the
      Issuing Bank or such Lender or any Lender Affiliate and their successors and
      assigns or in transit to any of them. Regardless of the adequacy of any
      collateral, if any of the Obligations are due and payable and have not been
      paid
      or any Event of Default shall have occurred, any deposits or other sums credited
      by or due from any of the Lenders or the Issuing Bank to any Borrower and any
      securities or other property of any Borrower in the possession of such Lender
      or
      Issuing Bank may be applied to or set off by such Lender or the Issuing Bank
      against the payment of Obligations and any and all other liabilities, direct,
      or
      indirect, absolute or contingent, due or to become due, now existing or
      hereafter arising, of the Borrowers to such Lender or Issuing Bank. ANY
      AND ALL RIGHTS TO REQUIRE ANY LENDER OR ISSUING BANK TO EXERCISE ITS RIGHTS
      OR
      REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
      PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
      OR OTHER PROPERTY OF THE BORROWERS ARE HEREBY KNOWINGLY, VOLUNTARILY AND
      IRREVOCABLY WAIVED. Each
      of
      the Lenders agrees with each other Lender that (a) if an amount to be set off
      is
      to be applied to Indebtedness of the Borrowers to such Lender, other than the
      Loans or Reimbursement Obligations owed to such Lender, such amount shall be
      applied ratably to such other Indebtedness and to the Loans and Reimbursement
      Obligations owed to such Lender, and (b) if such Lender shall receive from
      the
      Borrowers, whether by voluntary payment, exercise of the right of setoff,
      counterclaim, cross action, enforcement of the Loans or Reimbursement
      Obligations owed to such Lender by proceedings against any Borrower at law
      or in
      equity or by proof thereof in bankruptcy, reorganization, liquidation,
      receivership or similar proceedings, or otherwise, and shall retain and apply
      to
      the payment of the Loans or Reimbursement Obligations owed to such Lender any
      amount in excess of its ratable portion of the payments received by all of
      the
      Lenders with respect to the Loans and Reimbursement Obligations owed to all
      of
      the Lenders, such Lender will make such disposition and arrangements with the
      other Lenders with respect to such excess, either by way of distribution,
pro
      tanto
      assignment of claims, subrogation or otherwise as shall result in each Lender
      receiving, in respect of the Loans and Reimbursement Obligations owed to it,
      its
      proportionate payment as contemplated by this Credit Agreement; provided
      that if
      all or any part of such excess payment is thereafter recovered from such Lender,
      such disposition and arrangements shall be rescinded and the amount restored
      to
      the extent of such recovery, but without interest.

     

    16.2.  Expenses.
      The
      Borrowers jointly and severally agree to pay (a) the reasonable costs of
      producing and reproducing this Credit Agreement, the other Loan Documents,
      and
      the other agreements and instruments mentioned herein or executed or delivered
      in connection herewith, (b) any taxes (including any interest and penalties
      in
      respect thereto) payable by the Administrative Agent, the Issuing Bank or any
      of
      the Lenders (other than taxes based upon the Administrative Agent’s, Issuing
      Bank’s or any Lender’s net income) on or with respect to the transactions
      contemplated by this Credit Agreement (the Borrowers hereby jointly and
      severally agreeing to indemnify the Administrative Agent, the Issuing Bank
      and
      each Lender with respect thereto), (c) the reasonable fees, expenses and
      disbursements of the Administrative Agent’s Special Counsel or any local counsel
      to the Administrative Agent incurred in connection with the preparation,
      syndication, administration or interpretation of the Loan Documents and other
      instruments mentioned herein, each closing hereunder, any amendments,
      modifications, approvals, consents or waivers hereto or hereunder, or the
      cancellation of any Loan Document upon payment in full in cash of all of the
      Obligations or pursuant to any terms of such Loan Document for providing for
      such cancellation, (d) the fees, expenses and disbursements of the
      Administrative Agent or any of its affiliates incurred by the Administrative
      Agent or such affiliate in connection with the preparation, syndication,
      administration or interpretation of the Loan Documents and other instruments
      mentioned herein, including all appraisal and examination charges, (e)
      any
      fees, costs, expenses and bank charges, including bank charges for returned
      checks, incurred by the Administrative Agent in establishing, maintaining or
      handling agency accounts, lock box accounts and other accounts for the
      collection of any of the Collateral, (f) all reasonable out-of-pocket expenses
      (including without limitation reasonable attorneys’ fees and costs, which
      attorneys may be employees of any Lender, the Issuing Bank or the Administrative
      Agent, and reasonable consulting, accounting, appraisal, investment banking
      and
      similar professional fees and charges) incurred by any Lender or the
      Administrative Agent in connection with (i) the enforcement of or preservation
      of rights under any of the Loan Documents against the Borrowers, or any of
      their
      Subsidiaries or the administration thereof after the occurrence of a Default
      or
      Event of Default and (ii) any litigation, proceeding or dispute whether arising
      hereunder or otherwise, in any way related to any Lender’s, the Issuing Bank’s
      or the Administrative Agent’s relationship with the Borrowers or any of their
      Subsidiaries and (g) all reasonable fees, expenses and disbursements of any
      Lender, the Issuing Bank or the Administrative Agent incurred in connection
      with
      UCC searches, UCC filings,
      intellectual property searches, or intellectual property filings or recordings.
      The covenants contained in this §16.2 shall survive payment or satisfaction in
      full of all other obligations.

     

    16.3.  Indemnification.
      The
      Borrowers jointly and severally agree to indemnify and hold harmless the
      Administrative Agent, the Issuing Bank and the Lenders and the affiliates,
      directors, officers, employees, agents and representatives of each of them
      (collectively, the “Indemnified
      Parties”)
      from
      and against any and all claims, actions and suits whether groundless or
      otherwise, and from and against any and all liabilities, losses, damages, costs
      and expenses of every nature and character, arising out of or in connection
      with
      this Credit Agreement or any of the other Loan Documents or the transactions
      contemplated hereby including, without limitation, (a) any actual or proposed
      use by the Borrowers or any of their Subsidiaries of the proceeds of any of
      the
      Loans or Letters of Credit, (b) the reversal or withdrawal of any provisional
      credits granted by the Administrative Agent upon the transfer of funds from
      lock
      box, bank agency, concentration accounts or otherwise under any cash management
      arrangements with any Borrower or any Subsidiary of a Borrower or in connection
      with the provisional honoring of funds transfers, checks or other items,
      including without limitation with respect to any Cash Management Services,
      (c)
      any actual or alleged infringement of any patent, copyright, trademark, service
      mark or similar right of the Borrowers or any of their Subsidiaries comprised
      in
      the Collateral, (d) the Borrowers or any of their Subsidiaries entering into
      or
      performing this Credit Agreement or any of the other Loan Documents, or (e)
      with
      respect to the Borrowers and their Subsidiaries and their respective properties
      and assets, the violation of any Environmental Law, the presence, disposal,
      escape, seepage, leakage, spillage, discharge, emission, release or threatened
      release of any Hazardous Substances or any action, suit, proceeding or
      investigation brought or threatened with respect to any Hazardous Substances
      (including, but not limited to, claims with respect to wrongful death, personal
      injury or damage to property), in each case including, without limitation,
      the
      reasonable fees and disbursements of counsel and allocated costs of internal
      counsel incurred in connection with any such investigation, litigation or other
      proceeding except to the extent any of the foregoing are directly caused by
      the
      gross negligence or willful misconduct of the otherwise Indemnified Party.
      In
      litigation, or the preparation therefor, the Indemnified Parties shall be
      entitled to select their own counsel and, in addition to the foregoing
      indemnity, the Borrowers jointly and severally agree to pay promptly the
      reasonable fees and expenses of such counsel. If, and to the extent that the
      obligations of the Borrowers under this §16.3 are unenforceable for any reason,
      the Borrowers hereby agree to make the maximum contribution to the payment
      in
      satisfaction of such obligations which is permissible under applicable law.
      The
      covenants contained in this §16.3 shall survive payment or satisfaction in full
      of all other Obligations.

     

    16.4.  Treatment
      of Certain Confidential Information.

     

    16.4.1.  Confidentiality.
      Each of
      the Lenders, the Issuing Bank and the Administrative Agent agrees, on behalf
      of
      itself and each of its affiliates, directors, officers, employees and
      representatives, to use reasonable precautions to keep confidential, in
      accordance with their customary procedures for handling confidential information
      of the same nature and in accordance with safe and sound banking practices,
      any
      non-public information supplied to it by the Borrowers or any of their
      Subsidiaries pursuant to this Credit Agreement that is identified by such Person
      as being confidential at the time the same is delivered to the Lenders, the
      Issuing Bank or the Administrative Agent, provided
      that
      nothing herein shall limit the disclosure of any such information (a) after
      such
      information shall have become public other than through a violation of this
      §16.4, or becomes available to any of the Lenders, the Issuing Bank or the
      Administrative Agent on a nonconfidential basis from a source other than the
      Borrowers, (b) to the extent required by statute, rule, regulation or judicial
      process, (c) to counsel for any of the Lenders, the Issuing Bank or the
      Administrative Agent, (d) to bank examiners or any other regulatory authority
      having jurisdiction over any Lender, the Issuing Bank or the Administrative
      Agent, or to auditors or accountants, (e) to the Administrative Agent, the
      Issuing Bank, any Lender or any Financial Affiliate, (f) in connection with
      any
      litigation to which any one or more of the Lenders, the Issuing Bank, the
      Administrative Agent or any Financial Affiliate is a party, or in connection
      with the enforcement of rights or remedies hereunder or under any other Loan
      Document, (g) to a Lender Affiliate or a Subsidiary or affiliate of the
      Administrative Agent or the Issuing Bank, (h) to any actual or prospective
      assignee or participant or any actual or prospective counterparty (or its
      advisors) to any swap or derivative transactions referenced to credit or other
      risks or events arising under this Credit Agreement or any other Loan Document
      so long as such assignee, participant or counterparty, as the case may be,
      agrees to be bound by the provisions of this §16.4 or (i) with the consent of
      the Borrowers. Moreover, each of the Administrative Agent, the Issuing Bank,
      the
      Lenders and any Financial Affiliate is hereby expressly permitted by the
      Borrowers to refer to any of the Borrowers and their Subsidiaries in connection
      with any advertising, promotion or marketing undertaken by the Administrative
      Agent, such Lender, the Issuing Bank or such Financial Affiliate and, for such
      purpose, the Administrative Agent, such Lender, the Issuing Bank or such
      Financial Affiliate may utilize any trade name, trademark, logo or other
      distinctive symbol associated with the Borrowers or any of their Subsidiaries
      or
      any of their businesses.

     

    16.4.2.  Prior
      Notification.
      Unless
      specifically prohibited by applicable law or court order, each of the Lenders,
      the Issuing Bank and the Administrative Agent shall, prior to disclosure
      thereof, notify the Borrowers of any request for disclosure of any such
      non-public information by any governmental agency or representative thereof
      (other than any such request in connection with an examination of the financial
      condition of such Lender, the Issuing Bank or the Administrative Agent by such
      governmental agency) or pursuant to legal process.

     

    16.4.3.  Other.
      In no
      event shall any Lender, the Issuing Bank or the Administrative Agent be
      obligated or required to return any materials furnished to it or any Financial
      Affiliate by the Borrowers or any of their Subsidiaries. The obligations of
      each
      Lender under this §16.4 shall supersede and replace the obligations of such
      Lender under any confidentiality letter in respect of this financing signed
      and
      delivered by such Lender to the Borrowers prior to the date hereof and shall
      be
      binding upon any assignee of, or purchaser of any participation in, any interest
      in any of the Loans or Reimbursement Obligations from any Lender.

     

    16.5.  Survival
      of Covenants, Etc.
      All
      covenants, agreements, representations and warranties made herein, in the Notes,
      in any of the other Loan Documents or in any documents or other papers delivered
      by or on behalf of the Borrowers or any of their Subsidiaries pursuant hereto
      shall be deemed to have been relied upon by the Lenders, the Issuing Bank and
      the Administrative Agent, notwithstanding any investigation heretofore or
      hereafter made by any of them, and shall survive the making by the Lenders
      of
      any of the Loans and the issuance, extension or renewal of any Letters of
      Credit, as herein contemplated, and shall continue in full force and effect
      so
      long as any Letter of Credit or any amount due under this Credit Agreement
      or
      the Notes or any of the other Loan Documents remains outstanding or any Lender
      has any obligation to make any Loans or the Issuing Bank has any obligation
      to
      issue, extend or renew any Letter of Credit, and for such further time as may
      be
      otherwise expressly specified in this Credit Agreement. All statements contained
      in any certificate or other paper delivered to any Lender, the Issuing Bank
      or
      the Administrative Agent at any time by or on behalf of the Borrowers or any
      of
      their Subsidiaries pursuant hereto or in connection with the transactions
      contemplated hereby shall constitute representations and warranties by the
      Borrowers or such Subsidiary hereunder.

     

    16.6.  Notices.
      Except
      as otherwise expressly provided in this Credit Agreement, all notices and other
      communications made or required to be given pursuant to this Credit Agreement,
      any Note, any Letter of Credit Application or any other Loan Document shall
      be
      in writing and shall be delivered in hand, mailed by United States registered
      or
      certified first class mail, postage prepaid, sent by overnight courier, or
      sent
      by telecopy, facsimile or telex and confirmed by delivery via courier or postal
      service, addressed as follows:

     

    (a)  if
      to any
      Borrower, c/o Seneca Foods Corporation, 3736 South Main Street, Marion, New
      York
      14505, Attention: Chief Financial Officer, telecopy no. 315-926-8300, or at
      such
      other address or telecopy number for notice as such Borrower shall last have
      furnished in writing to the Person giving the notice;

     

    (b)  if
      to the
      Administrative Agent, at 200 Glastonbury Boulevard, Glastonbury, Connecticut
      06033, Attention: Lisa Freeman, telecopy no. 860-368-6029, or such other address
      or telecopy number for notice as the Administrative Agent shall last have
      furnished in writing to the Person giving the notice; and

     

    (c)  if
      to the
      Issuing Bank or any Lender, at such Issuing Bank’s or Lender’s address or
      telecopy number set forth on Schedule 1
      hereto,
      or such other address or telecopy number for notice as such Lender shall have
      last furnished in writing to the Person giving the notice.

     

    Any
      such
      notice or demand shall be deemed to have been duly given or made and to have
      become effective (i) if delivered by hand to a responsible officer of the party
      to which it is directed, at the time of the receipt thereof by such officer,
      (ii) if delivered by overnight courier or facsimile, at the time of the receipt
      thereof (except that, if a facsimile is received on a day that is not a Business
      Day or after 4:00 p.m. on a Business Day, it will be deemed to have been
      received on the next Business Day), and (iii) if sent by registered or certified
      first-class mail, postage prepaid, on the fourth Business Day following the
      mailing thereof. Any notice or other communication to be made hereunder or
      under
      any Note, any Letter of Credit Application or any other Loan Document, even
      if
      otherwise required to be in writing under other provisions of this Credit
      Agreement, any Note, any Letter of Credit Application or any other Loan
      Document, may alternatively be made in an electronic record transmitted
      electronically under such authentication and other procedures as the parties
      hereto may from time to time agree in writing (but not an electronic record),
      and such electronic transmission shall be effective at the time set forth in
      such procedures. Unless otherwise expressly provided in such procedures, such
      an
      electronic record shall be equivalent to a writing under the other provisions
      of
      this Credit Agreement, any Note, any Letter of Credit Application or any other
      Loan Document, and such authentication, if made in compliance with the
      procedures so agreed by the parties hereto in writing (but not an electronic
      record), shall be equivalent to a signature under the other provisions of this
      Credit Agreement, any Note, any Letter of Credit Application or any other Loan
      Document.

     

    16.7.  Governing
      Law. THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
      THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE
      STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH
      AND
      GOVERNED BY THE LAWS OF SAID STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE
      TO
      CONFLICTS OR CHOICE OF LAW). THE BORROWERS AGREE THAT ANY SUIT FOR THE
      ENFORCEMENT OF THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY
      BE
      BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING
      THEREIN AND CONSENT TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE
      OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE APPLICABLE BORROWERS BY MAIL
      AT
      THE ADDRESS SPECIFIED IN §16.6. THE BORROWERS HEREBY WAIVE ANY OBJECTION THAT
      THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT
      OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

     

    16.8.  Headings.
      The
      captions in this Credit Agreement are for convenience of reference only and
      shall not define or limit the provisions hereof.

     

    16.9.  Counterparts.
      This
      Credit Agreement and any amendment hereof may be executed in several
      counterparts and by each party on a separate counterpart, each of which when
      executed and delivered shall be an original, and all of which together shall
      constitute one agreement. In proving this Credit Agreement it shall not be
      necessary to produce or account for more than one such counterpart signed by
      the
      party against whom enforcement is sought. Delivery by facsimile by any of the
      parties hereto of an executed counterpart hereof or of any amendment or waiver
      hereto shall be as effective as an original executed counterpart hereof or
      of
      such amendment or waiver and shall be considered a representation that an
      original executed counterpart hereof or such amendment or waiver, as the case
      may be, will be delivered.

     

    16.10.  Entire
      Agreement, Etc.
      The
      Loan Documents and any other documents executed in connection herewith or
      therewith express the entire understanding of the parties with respect to the
      transactions contemplated hereby. Neither this Credit Agreement nor any term
      hereof may be changed, waived, discharged or terminated, except as provided
      in
§16.12.

     

    16.11.  Waiver
      of Jury Trial. THE PARTIES HERETO HEREBY WAIVE THEIR RIGHT TO A JURY TRIAL
      WITH
      RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH
      THIS CREDIT AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS
      OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND
      OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
      ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE ADMINISTRATIVE AGENT OR ANY
      LENDER RELATING TO THE ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE LOAN
      DOCUMENTS AND AGREE THAT NO PARTY HERETO WILL SEEK TO CONSOLIDATE ANY SUCH
      ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
      WAIVED.
      Except
      as prohibited by law, the Borrowers hereby waive any right they may have to
      claim or recover in any litigation referred to in the preceding sentence any
      special, exemplary, punitive or consequential damages or any damages other
      than,
      or in addition to, actual damages. The Borrowers (a) certify that no
      representative, agent or attorney of any Lender or the Administrative Agent
      has
      represented, expressly or otherwise, that such Lender or the Administrative
      Agent would not, in the event of litigation, seek to enforce the foregoing
      waivers and (b) acknowledge that the Administrative Agent and the Lenders have
      been induced to enter into this Credit Agreement, the other Loan Documents
      to
      which any of them is a party and
      the
      Intercreditor Agreement by, among other things, the waivers and certifications
      contained herein.

     

    16.12.  Consents,
      Amendments, Waivers, Etc.
      Any
      consent or approval required or permitted by this Credit Agreement to be given
      by the Lenders may be given, and any term of this Credit Agreement, the other
      Loan Documents or any other instrument related hereto or mentioned herein may
      be
      amended, and the performance or observance by the Borrowers or any of their
      Subsidiaries of any terms of this Credit Agreement, the other Loan Documents
      or
      such other instrument or the continuance of any Default or Event of Default
      may
      be waived (either generally or in a particular instance and either retroactively
      or prospectively) with, but only with, the written consent of the Borrowers
      and
      the written consent of the Required Lenders. Notwithstanding
      the foregoing, no amendment, modification or waiver shall:

     

    (a)  without
      the written consent of each Lender directly affected thereby:

     

    (i)  reduce
      or
      forgive the principal amount of any Loans or Reimbursement Obligations, or
      reduce the rate of interest on the Revolving Credit Notes or the amount of
      the
      Unused Fee or Letter of Credit Fees (other than interest accruing pursuant
      to
§5.10);

     

    (ii)  increase
      the amount of such Lender’s Commitment or extend the expiration date of such
      Lender’s Commitment;

     

    (iii)  postpone
      or extend the Maturity Date or any other regularly scheduled dates for payments
      of principal of, or interest on, the Loans or Reimbursement Obligations or
      any
      Fees or other amounts payable to such Lender (it being understood that (A)
      a
      waiver of the application of the default rate of interest pursuant to §5.10, and
      (B) any vote to rescind any acceleration made pursuant to §13.1 of amounts owing
      with respect to the Loans and other Obligations and (C) any
      modifications of the provisions relating to amounts, timing or application
      of
      prepayments of Loans and other Obligations, including under §3.2.2 shall require
      only the approval of the Required Lenders); and

     

    (iv)  other
      than pursuant to a transaction permitted by the terms of this Credit Agreement,
      release a material portion of the Collateral (excluding,
      if any Borrower or any Subsidiary of a Borrower becomes a debtor under the
      federal Bankruptcy Code, the release of “cash collateral”, as defined in Section
      363(a) of the federal Bankruptcy Code pursuant to a cash collateral stipulation
      with the debtor approved by the Required Lenders);

     

    (b)  without
      the written consent of all of the Lenders:

     

    (i)  amend
      or
      waive this §16.12, the definition of Required Lenders or the portions of §2.1,
§2.3, §2.11.2(c), §13.4(b), §14.5.1 or §14.5.3, which provide for amounts to be
      paid, distributed or allocated on a pro rata basis (it being understood that
      the
      addition of one or more additional credit facilities, the allowance of the
      credit extensions, interest and fees thereunder on a subordinated basis with
      the
      Loans, Letters of Credit, interest and Fees in the benefits of the Loan
      Documents and the inclusion of the holders of such facilities in the
      determination of Required Lenders shall require only the approval of the
      Required Lenders);
      and

     

    (ii)  increase
      the advance rates used in the calculation of the Borrowing Base or amend the
      definition of “Borrowing Base” or of any definition of any component thereof,
      such that more credit would be available to the Borrowers, based on the same
      assets, as would have been available to the Borrowers immediately prior to
      such
      amendment, it being understood, however, that the foregoing shall not (A) limit
      the adjustment by the Administrative Agent of any Reserve in the Administrative
      Agent’s administration of the Loans as otherwise permitted by this Credit
      Agreement or (B) prevent the Administrative Agent from restoring any component
      of the Borrowing Base, which had been lowered by the Administrative Agent back
      to the value of such component, as stated in this Credit Agreement or to an
      intermediate value;

     

    (c)  without
      the written consent of
      the
      Administrative Agent, amend or waive §2.6.2 or any other provision applicable to
      the Swing Line Loans or the Swing Line Lender, §14, the amount or time of
      payment of the Administrative Agent’s Fee or any other provision applicable to
      the Administrative Agent; or

     

    (d)  without
      the written consent of the Issuing Bank, amend or waive any provision of §4 or
      any other provision applicable to the issuance, extension or renewal of any
      Letters of Credit, the amount or time of payment of the Letter of Credit Fees
      payable for the Issuing Bank’s account or any other provision applicable to the
      Issuing Bank.

     

    No
      waiver
      shall extend to or affect any obligation not expressly waived or impair any
      right consequent thereon. No course of dealing or delay or omission on the
      part
      of the Administrative Agent, the Issuing Bank or any Lender in exercising any
      right shall operate as a waiver thereof or otherwise be prejudicial thereto.
      No
      notice to or demand upon the Borrowers shall entitle the Borrowers to other
      or
      further notice or demand in similar or other circumstances.

     

    16.13.  Notices
      to and Consents from the Borrowers.
      When
      any provision hereof or of any other Loan Document permits or requires notice
      to
      be given to the Borrowers or refers to or provides for the consent or approval
      of the Borrowers, notice to any one Borrower will constitute notice to all
      of
      the Borrowers and the consent or approval of any one Borrower will constitute
      the consent or approval of all of the Borrowers.

     

    16.14.  Severability.
      The
      provisions of this Credit Agreement are severable and if any one clause or
      provision hereof shall be held invalid or unenforceable in whole or in part
      in
      any jurisdiction, then such invalidity or unenforceability shall affect only
      such clause or provision, or part thereof, in such jurisdiction, and shall
      not
      in any manner affect such clause or provision in any other jurisdiction, or
      any
      other clause or provision of this Credit Agreement in any
      jurisdiction.

     

    16.15.  Effective
      Date.
      This
      Credit Agreement shall become effective among the parties hereto as of the
      Effective Date. Until the Effective Date, the terms of the Original Credit
      Agreement shall remain in full force and effect.

     

    16.16.  Patriot
      Act Notice.
      Administrative
      Agent and Lenders hereby notify the Borrowers that, pursuant to the requirements
      of the Patriot Act, Administrative Agent and Lenders are required to obtain,
      verify and record information that identifies the Borrowers, including their
      legal names, addresses, tax ID numbers and other information that will allow
      Administrative Agent and Lenders to identify them in accordance with the Patriot
      Act. Administrative Agent and Lenders will also require information regarding
      each personal guarantor, if any, and may require information regarding the
      Borrowers’ management and owners, such as legal names, addresses, social
      security numbers and dates of birth.

     

    16.17.  Restatement.
      This
      Credit Agreement amends, restates and supersedes the Original Credit Agreement.
      All references in the Loan Documents or any other document or instrument
      executed or delivered in connection therewith to the Credit Agreement shall
      hereafter be deemed to be references to this Credit Agreement. It is the
      intention of the parties hereto that this Credit Agreement shall not constitute
      a novation or discharge of the indebtedness evidenced by the Original Credit
      Agreement, nor shall this Credit Agreement affect or impair the priority of
      the
      security interests and mortgages created by the Security Documents, it being
      the
      intention of the parties hereto to preserve all security interests and mortgages
      securing payment of the Obligations, which security interests and mortgages
      are
      acknowledged by the Borrowers to be valid and subsisting against the
      Collateral.

     

    [Signatures
      Follow on Next Page]

     

    

    

    
      
        
          CTDOCS/1667596.9 

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    

      IN
        WITNESS WHEREOF,
        the
        undersigned have duly executed this Credit Agreement as of the date first
        set
        forth above.

      

      

      SENECA
        FOODS CORPORATION

      

      

      By:
        /s/Kraig
        H. Kayser 

      Name:
        Kraig H. Kayser

      Title:
        President

      

      SIGNATURE
        FRUIT COMPANY, LLC

      

      

      By:
        /s/Kraig
        H. Kayser 

      Name:
        Kraig H. Kayser

      Title:
        President

      

      

      SENECA
        SNACK COMPANY

      

      

      By:
        /s/James
        L. McClelland 

      Name:
        James L. McClelland

      Title:
        President

      

      
        
          [Signature
            Page to Amended and Restated Credit Agreement]

          CTDOCS/1667596.9 

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      BANK
        OF AMERICA, N.A.,

      individually,
        as a Lender, as Administrative Agent, as Collateral Agent and as Issuing
        Bank

      

      By
        /s/Lisa
        Freeman ________________________ 

      Name:
        Lisa Freeman

      Title:
        Senior Vice President

      

      GENERAL
        ELECTRIC CAPITAL CORPORATION,

      as
        a Lender and as Syndication Agent

      

      By:
        /s/Meeno Sameer________________________ 

      Name:
        Meeno Sameer

      Title:
        Duly Authorized Signatory

      

      COOPERATIEVE
        CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK
        BRANCH, as a Lender and as Documentation Agent

      

      By:
        /s/Betty
        Mills___________________________ 

      Name:
        Betty Mills

      Title:
        Executive Director

      

      By:
        /s/Brett
        Delfino_________________________ 

      Name:
        Brett Delfino

      Title:
        Executive Director

      

      MANUFACTURERS
        & TRADERS TRUST COMPANY, as a Lender

      

      

      By:
        /s/Jon
        M. Fogle_____________ 

      Name:
        Jon
        M. Fogle

      Title:
        Vice President 

      

      U.S.
        BANK NATIONAL ASSOCIATION,

      as
        a Lender

      

      

      By:
        /s/John
        W. Ball_____________ 

      Name:
        John W. Ball

      Title:
        Vice President 

      

      

      
        
          
            [Signature
              Page to Amended and Restated Credit Agreement]

            CTDOCS/1667596.9 

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    SCHEDULE
      1

    

    LENDERS
      AND COMMITMENTS

    

    

    
      	
              Lender

            	
              Commitments

            
	
              Amount

            	
              Percentage

            
	
              Bank
                of America, N.A.

              c/o
                Bank of America Business Capital

              200
                Glastonbury Boulevard

              Glastonbury,
                CT 06033

              Attention: Lisa
                Freeman, Senior Vice President

              Facsimile: 860-368-6029

            	
              $65,000,000

            	
              26%

            
	
              General
                Electric Capital Corporation

              201
                Merritt 7

              Norwalk,
                CT 06851

              Attention: Seneca
                Foods Account Manager

              Facsimile:
                 203-956-4112

            	
              $65,000,000

            	
              26%

            
	
              Cooperatieve
                Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank International”, New
                York Branch

              245
                Park Avenue

              New
                York, NY 10167

              Attention: Betty
                Mills, Executive Director

              Facsimile: 404-870-8025

            	
              $45,000,000

            	
              18%

            
	
              U.S.
                Bank National Association

              Suite
                350, DN-CO-T3CS

              950
                17th
                Street

              Denver,
                CO 80202

              Attention:
                 John
                Ball, Vice President

              Facsimile:
                 303-585-4732

            	
              $40,000,000

            	
              16%

            
	
              Manufacturers
                & Traders Trust Company

              255
                East Avenue

              Rochester,
                NY 14604

              Attention:
                 Jon
                Fogle, Vice President

              Facsimile:
                 585-325-5105

            	
              $35,000,000

            	
              14%

            
	
              TOTAL:

            	
              $250,000,000

            	
              100%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]