Document:

CHANGE IN TERMS AGREEMENT

<TABLE>
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<CAPTION>
   PRINCIPAL    LOAN DATE   MATURITY    LOAN NO.    CALL    COLLATERAL    ACCOUNT   OFFICER   INITIALS
<S>             <C>        <C>          <C>         <C>     <C>           <C>       <C>       <C>
  $800,000.00              04-30-2001   7420045     4A0         71                    121
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REFERENCES IN THE SHADED AREA ARE FOR LENDER'S USE ONLY AND DO NOT LIMIT THE
APPLICABILITY OF THIS DOCUMENT TO ANY PARTICULAR LOAN OR ITEM.
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</TABLE>

BORROWER:  AGATE TECHNOLOGIES, INC.          LENDER:    CHINATRUST BANK (U.S.A.)
           519 MONTAGUE EXPRESSWAY                      CORPORATE LENDING
           MILPITAS, CA 95035                           258 BARBER COURT
                                                        MILPITAS, CA 95305

================================================================================

PRINCIPAL AMOUNT:  $800,000.00                 DATE OF AGREEMENT:  JULY 30, 2000

DESCRIPTION OF EXISTING INDEBTEDNESS. ORIGINAL NOTE DATED 10/05/98 IN THE AMOUNT
OF $2.000,000.00 MATURING 10/05/99. AS AMENDED BY: CHANGE IN TERMS AGREEMENT
DATED 10/05/99 MATURING 04/30/2000; CHANGE IN TERMS AGREEMENT DATED 10/29/99
MATURING 04/30/2000; CHANGE IN TERMS AGREEMENT DATED 03/01/2000 MATURING
04/30/2000; CHANGE IN TERMS AGREEMENT DATED 04/30/2000 IN THE AMOUNT OF
$800,000.00 MATURING 07/30/2000.

DESCRIPTION OF COLLATERAL. COLLATERAL DESCRIBED IN FINANCING STATEMENT, FILED ON
10/15/98 ON AGATE TECHNOLOGIES, INC. UNDER INSTRUMENT #9829560584 AND SAVINGS
DEPOSIT ACCOUNT #18904785 UNDER THE NAME OF AGATE TECHNOLOGIES, INC. IN AN
AMOUNT WHICH IS NOT LESS THAN 5O% OF THE OUTSTANDING LOAN AMOUNT. COLLATERAL
DESCRIBED IN FINANCING STATEMENT, FILED ON EI CORPORATION IS ADDED AS COLLATERAL
ON 5/15/2000 AND CONTINUING GUARANTY BY EI CORPORATION IS ADDED ON 5/15/2000,

DESCRIPTION OF CHANGE IN TERMS. THE MATURITY DATE OF THE LOAN IS CHANGED TO
04/30/2001. THE BUSINESS LOAN AGREEMENT DATED 4/30/2000 IS AMENDED BY BUSINESS
LOAN AGREEMENT DATED 07/30/2000. ALL OTHER TERMS AND CONDITIONS STATED IN BUT
NOT LIMITED TO THE SECURITY AGREEMENT, THE ASSIGNMENT OF DEPOSIT AND ALL OTHER
RELATED LOAN DOCUMENTS NOT MODIFIED HEREWITH WILL REMAIN IN FULL FORCE AND
EFFECT WITHOUT WAIVER OR MODIFICATION OF ANY KIND.

PROMISE TO PAY. AGATE TECHNOLOGIES, INC. ("Borrower") promises to pay to
CHINATRUST BANK (U.S.A.) ("Lender"), or order, in lawful money of the United
States of America, the principal amount of Eight Hundred Thousand & 00/100
Dollars ($800,000.00) or so much as may bc outstanding, together with interest
on the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in accordance with the following payment
schedule:

     ADVANCES FOR REFINANCING LETTERS OF CREDIT, D/A AND D/P FINANCING, AND
     REFINANCING AGAINST VENDER'S INVOICES, WILL HAVE A MATURITY NOT
     EXCEEDING 120 DAYS. INTEREST ACCRUED ON EACH ADVANCE WILL BE DUE ON THE
     FIRST DAY OF EACH AND EVERY MONTH, PRINCIPAL WILL BE DUE AND PAYABLE ON
     THE RESPECTIVE SCHEDULED MATURITY ON EACH ADVANCE.

The annual interest rate for this Agreement is computed on a 365/360 basis; that
is, by applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding. Borrower will pay Lender at
Lender's address shown above or at such other place as Lender may designate in
writing. Unless otherwise agreed or required by applicable law, payments will be
applied first to accrued unpaid interest, then to principal, and any remaining
amount to any unpaid collection costs and late charges.

VARIABLE INTEREST RATE. The interest rate on this Agreement is subject to change
from time to time based on changes in an independent Index which is the Prime
rate as published in the Wall Street Journal (the "Index"). The Index is not
necessarily the lowest rate charged by Lender on its loans. If the Index become
unavailable during the term of this loan, Lender may designate a substitute
Index after notice to Borrower. Lender will tell Borrower the current Index rate
upon Borrower's request. Borrower understands that Lender may make loans based
on other rates as well. The interest rate change will not occur more often than
each DAY. The Index currently is 9.500%. The Interest rate to be applied to the
unpaid principal balance of this Agreement will be at a rate of 1.250 percentage
points over the Index, resulting in an Initial rate of 10.750%. NOTICE: Under no
circumstances will the interest rate on this Agreement be more than the maximum
rate allowed by applicable law.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges
are earned fully as of the date of the loan and will not be subject to refund
upon early payment (whether voluntary or as a result of default), except as
otherwise required by law. Except for the foregoing, Borrower, may pay without
penalty all or a portion of the amount owed earlier than it is due. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower's Obligation to continue to make payments of accrued unpaid interest.
Rather, they will reduce the principal balance due.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged
5.000% of the unpaid portion of the regularly scheduled payment or $5.00,
whichever is greater.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this
Agreement or any agreement related to this Agreement, or in any other agreement
or loan Borrower has with Lender. (c) Borrower defaults under any loan,
extension of credit, security agreement, purchase or sales agreement, or any
other agreement, in favor of any other creditor or person that may materially
affect any of Borrower's property or Borrower's ability to repay this Note or
perform Borrower's obligations under this Note or any of the Related Documents.
(d) Any representation or statement made or furnished to Lender by Borrower or
on Borrower's behalf is false or misleading in any material respect either now
or at the time made or furnished. (e) Borrower becomes insolvent, a receiver is
appointed for any part of Borrower's property, Borrower makes an assignment for
the benefit of creditors, or any proceeding is commenced either by Borrower or
against Borrower under any bankruptcy or insolvency laws. (f) Any creditor tries
to take any of Borrower's property on or in which Lender has a lien or security
interest. This includes a garnishment of any of Borrower's accounts with Lender.
(g) Any guarantor dies or any of the other events described in this default
section occurs with respect to any guarantor of this Agreement. (h) A material
adverse change occurs in Borrower's financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness is impaired. (i) Failure
to meet the deadlines required in the Year 2000 Compliance Agreement to be Year
2000 Compliant or a reasonable likelihood that Borrower cannot be Year 2000
Compliant on or before December 31, 1999. (j) Lender in good faith deems itself
insecure.

If any default, other than a default in payment, is curable and if Borrower has
not been given a notice of a breach of the same provision of this Agreement
within the preceding twelve (12) months, it may be cured (and no event of
default will have occurred) if Borrower, after receiving written notice from
Lender demanding cure of such default: (a) cures the default within fifteen (15)
days; or (b) it the cure requires more than fifteen (15) days, immediately
initiates steps which Lender deems in Lender's sole discretion to be sufficient
to cure the default and thereafter continues and completes all reasonable and
necessary steps sufficient to produce compliance as soon as reasonably
practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Agreement and all accrued unpaid interest immediately due,
without notice, and then Borrower will pay that amount. Upon Borrower's failure
to pay call amounts declared due Pursuant to this

<PAGE>

07-0-3000                   CHANGE IN TERMS AGREEMENT                     PAGE 2
LOAN NO 7420045                    (CONTINUED)
================================================================================

section, including failure to pay upon final maturity, Lender, at its option,
may also, if permitted under applicable law, do one or both of the following:
(a) increase the variable interest rate of this Agreement to 6.250 percentage
points over the index, and (b) add any unpaid accrued interest to principal and
such sum will bear interest therefrom until paid at the rate provided in this
Agreement (including any increased rate). Lender may hire or pay someone else to
help collect this Agreement if Borrower does not pay. Borrower also will pay
Lender that amount. This includes, subject to any limits under applicable law,
Lender's attorneys' fees and Lender's legal expenses whether or not there is a
lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Borrower also
will pay any court costs, in addition to all other sums provided by law. THIS
AGREEMENT HAS BEEN DELIVERED TO LENDER AND ACCEPTED BY LENDER IN THE STATE OF
CALIFORNIA. IF THERE IS A LAWSUIT, BORROWER AGREES UPON LENDER'S REQUEST TO
SUBMIT TO THE JURISDICTION OF THE COURTS OF SANTA CLARA COUNTY, THE STATE OF
CALIFORNIA. SUBJECT TO THE PROVISIONS ON ARBITRATION, THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on this Agreement against any and all such accounts.

LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances
under this Agreement may be requested orally by Borrower or by an authorized
person. All oral requests shall be confirmed in writing on the day of the
request. All communications, instructions, or directions by telephone or
otherwise to Lender are to be directed to Lender's office shown above. The
following party or parties are authorized to request advances under the line of
credit until Lender receives from Borrower at Lender's address shown above
written notice of revocation of their authority: FRANCIS KHOO, CEO; AND SHIRLEY
OOI, CFO. Borrower agrees to be liable for all sums either: (a) advanced in
accordance with the instructions of an authorized person or (b) credited to any
of Borrower's accounts with Lender. The unpaid principal balance owing on this
Agreement at any time may be evidenced by endorsements on this Agreement or by
Lender's internal records, including daily computer print-outs. Lender will have
no obligation to advance funds under this Agreement if: (a) Borrower or any
guarantor is in default under the terms of this Agreement or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Agreement; (b) Borrower or any guarantor
ceases doing business or is insolvent; (c) any guarantor seeks, claims or
otherwise attempts to limit, modify or revoke such guarantor's guarantee of this
Agreement or any other loan with Lender; (d) Borrower has applied funds provided
pursuant to this Agreement for purposes other than those authorized by Lender;
or (e) Lender in good faith deems itself insecure under this Agreement or any
other Agreement between Lender and Borrower.

ARBITRATION. LENDER AND BORROWER AGREE THAT ALL DISPUTES, CLAIMS AND
CONTROVERSIES BETWEEN THEM, WHETHER INDIVIDUAL, JOINT, OR CLASS IN NATURE,
ARISING FROM THIS AGREEMENT OR OTHERWISE, INCLUDING WITHOUT LIMITATION CONTRACT
AND TORT DISPUTES, SHALL BE ARBITRATED PURSUANT TO THE RULES OF THE AMERICAN
ARBITRATION ASSOCIATION, UPON REQUEST OF EITHER PARTY. No act to take or dispose
of any collateral securing this Agreement shall constitute a waiver of this
arbitration agreement or be prohibited by this arbitration agreement. This
includes, without limitation, obtaining injunctive relief or a temporary
restraining order; invoking a power of sale under any deed of trust or mortgage;
obtaining a writ of attachment or imposition of a receiver; or exercising any
rights relating to personal property, including taking or disposing of such
property with or without judicial process pursuant to Article 9 of the Uniform
Commercial Code. Any disputes, claims, or controversies concerning the
lawfulness or reasonableness of any act, or exercise of any right, concerning
any collateral securing this Agreement, including any claim to rescind, reform,
or otherwise modify any agreement relating to the collateral securing this
Agreement, shall also be arbitrated, provided however that no arbitrator shall
have the right or the power to enjoin or restrain any act of any party. Lender
and Borrower agree that in the event of an action for judicial foreclosure
pursuant to California Code of Civil Procedure Section 726, or any similar
provision in any other state, the commencement of such an action will not
constitute a waiver of the right to arbitrate and the court shall refer to
arbitration as much of such action, including counterclaims, as lawfully may be
referred to arbitration. Judgment upon any award rendered by any arbitrator may
be entered in any court having jurisdiction. Nothing in this Agreement shall
preclude any party from seeking equitable relief from a court of competent
jurisdiction. The statute of limitations, estoppel, waiver, laches, and similar
doctrines which would otherwise be applicable in an action brought by a party
shall be applicable in any arbitration proceeding, and the commencement of an
arbitration proceeding shall be deemed the commencement of an action for these
purposes. The Federal Arbitration Act shall apply to the construction,
interpretation, and enforcement of this arbitration provision.

CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of
the original obligation or obligations, including all agreements evidenced or
securing the obligation(s), remain unchanged and in full force and effect.
Consent by Lender to this Agreement does not waive Lender's right to strict
performance of the obligation(s) as changed, nor obligate Lender to make any
future change in terms. Nothing in this Agreement will constitute a satisfaction
of the obligation(s). It is the intention of Lender to retain as liable parties
all makers and endorsers of the original obligation(s), including accommodation
parties, unless a party is expressly released by Lender in writing. Any maker or
endorser, including accommodation makers, will not be released by virtue of this
Agreement. If any person who signed the original obligation does not sign this
Agreement below, then all persons signing below acknowledge that this Agreement
is given conditionally, based on the representation to Lender that the
non-signing party consents to the changes and provisions of this Agreement or
otherwise will not be released by it. This waiver applies not only to any
initial extension, modification or release, but also to all such subsequent
actions.

MISCELLANEOUS PROVISIONS. Lender may delay or forego enforcing any of its rights
or remedies under this Agreement without losing them. Borrower and any other
person who signs, guarantees or endorses this Agreement, to the extent allowed
by law, waive any applicable statute of limitations, presentment, demand for
payment, protest and notice of dishonor. Upon any change in the terms of this
Agreement, and unless otherwise expressly stated in writing, no party who signs
this Agreement, whether as maker, guarantor, accommodation maker or endorser,
shall be released from liability. All such parties agree that Lender may renew
or extend (repeatedly and for any length of time) this loan, or release any
party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action deemed
necessary by Lender without the consent of or notice to anyone. All such parties
also agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made.

<PAGE>

07-30-3000                     CHANGE IN TERMS AGREEMENT                  PAGE 3
LOAN NO 7420045                     (CONTINUED)
================================================================================

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE AGREEMENT AND ACKNOWLEDGES RECEIPT OF A COMPLETED
COPY OF THE AGREEMENT.

BORROWER:

AGATE TECHNOLOGIES, INC.

BY: COPY   /S/ FRANCIS KHOO                     BY:   /S/ SHIRLEY OOI
   ----------------------------                    -----------------------------
      FRANCIS KHOO, CEO                               SHIRLEY OOI, CFO<PAGE>

            AMENDMENT NO. 1 dated as of May 10, 2000 to the Credit Agreement
dated as of January 28, 1999 (the "Credit Agreement"), among New World Pasta
                                   ----------------
Company, a Delaware corporation (the "Borrower"), the various financial
                                      --------
institutions parties thereto (the "Lenders"), Morgan Stanley Senior Funding,
                                   -------
Inc., as Syndication Agent, and The Bank of Nova Scotia, as Lead Arranger and
the Administrative Agent (the "Administrative Agent").
                               --------------------

                             W I T N E S S E T H :

            WHEREAS, capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Credit Agreement;
and

            WHEREAS, the Borrower, the Lenders and the Administrative Agent have
entered into the Credit Agreement; and

            WHEREAS, the Borrower, the Lenders and the Administrative Agent are
willing, on the terms and subject to the conditions set forth below, to amend
certain provisions of the Credit Agreement (the Credit Agreement, after giving
effect to the amendments contained herein, being referred to as the "Amended
                                                                     -------
Credit Agreement");
----------------

            NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in consideration of the
agreements herein, the parties hereto agree as follows:

                                   ARTICLE I.

            SECTION 1.1 Definitions; References. Unless otherwise specifically
                        -----------------------
defined herein, each term used herein which is defined in the Credit Agreement
shall have the meaning assigned to such term in the Credit Agreement.

            SECTION 1.2. Effectiveness. The Borrower and the Administrative
                         -------------
Agent agree that the following amendments and waivers in this Article I to the
Credit Agreement shall become effective on the First Amendment Effective Date
(as defined below).

            SECTION 1.3. Amendments to Section 1.1
                         -------------------------

            (a) Section 1.1 of the Credit Agreement is amended by deleting
subsection (b) of the definition of "Applicable Margin" and by substituting in
lieu thereof the following:

            "(b) with respect to the unpaid principal amount of each Revolving
Loan and each Term-A Loan maintained as a LIBO Rate Loan, the applicable
percentage per annum set forth below under the column entitled "Applicable
Margin for LIBO Rate Loans":

                      For Revolving Loans and Term-A Loans:
                      ------------------------------------
<PAGE>

--------------------------------------------------------------------------------
                                         Applicable           Applicable
Debt to EBITDA Ratio                  Margin for Base      Margin for LIBO
                                         Rate Loans           Rate Loans
--------------------------------------------------------------------------------
(greater than) 5.75:1                      2.50%                3.50%
--------------------------------------------------------------------------------
(greater than) 5.00:1 but
  (less than or equal to) 5.75:1           2.25%                3.25%
--------------------------------------------------------------------------------
(greater than) 4.50:1 but
  (less than or equal to) 5.00:1           2.00%                3.00%
--------------------------------------------------------------------------------
(greater than) 4.00:1 but
  (less than or equal to) 4.50:1           1.75%                2.75%
--------------------------------------------------------------------------------
(greater than or equal to) 4.00:1          1.50%                2.50%"
--------------------------------------------------------------------------------

            (b) Section 1.1 of the Credit Agreement is amended by deleting
subsection (d) of the definition of "Applicable Margin" and by substituting in
lieu thereof the following:

            "(d) with respect to the unpaid principal amount of each Term-B Loan
maintained as a LIBO Rate Loan 4.00% per annum and with respect to the unpaid
principal amount of each Term B Loan maintained as a Base Rate Loan 3.00% per
annum.

         Except as provided above, the Debt to EBITDA Ratio used to compute the
Applicable Margin for Revolving Loans and Term Loans shall be the Debt to EBITDA
Ratio set forth in the Compliance Certificate most recently delivered by the
Borrower to the Administrative Agent pursuant to clause (d) of Section 7.1.1;
                                                 ----------    -------------
changes in the Applicable Margin for Revolving Loans and Term Loans resulting
from a change in the Debt to EBITDA Ratio shall become effective upon delivery
by the Borrower to the Administrative Agent of a new Compliance Certificate
pursuant to clause (d) of Section 7.1.1. If the Borrower shall fail to deliver a
            ----------    -------------
Compliance Certificate within the number of days after the end of any Fiscal
Quarter as required pursuant to clause (d) of Section 7.1.1 (without giving
                                ----------    -------------
effect to any grace period), the Applicable Margin for Revolving Loans and Term
Loans from and including the first day after the date on which such Compliance
Certificate was required to be delivered to but not including the date the
Borrower delivers to the Administrative Agent a Compliance Certificate shall
conclusively equal the highest Applicable Margin for Revolving Loans and Term
Loans set forth above. After such delivery, the Applicable Margins shall be
determined as provided above.

            (c) Section 1.1 of the Credit Agreement is amended by inserting or
replacing the following definitions in appropriate alphabetical order in Section
1.1:

                  "'First Amendment Effective Date' means the date on
                    ------------------------------
            which the First Amendment, dated as of May 10, 2000, to this Credit
            Agreement became effective."

                                       2
<PAGE>

                        "'Revolving Loan Commitment Amount' means, on any date
                          --------------------------------
            prior to the First Amendment Effective Date, $50,000,000 and on each
            date on or after the First Amendment Effective Date, $20,000,000, in
            each case, as such amount may be reduced from time to time pursuant
            to Section 2.2."
               ------------

                        "'Senior Debt to EBITDA Ratio' means, as of the last day
                          ---------------------------
            of any Fiscal Quarter, the ratio of

                        (a) Senior Debt outstanding on the last day of such
            Fiscal Quarter

                        to
                        --

                        (b) EBITDA computed for the period consisting of such
            Fiscal Quarter and each of the three immediately preceding Fiscal
            Quarters."

                        "'Senior Debt' means all Debt other than the Senior
                          -----------
            Subordinated High Yield Notes.

                        "'Total Debt to EBITDA Ratio' means, as of the last day
                          --------------------------
            of any Fiscal Quarter, the ratio of

                        (a) Debt outstanding on the last day of such Fiscal
            Quarter

                        to
                        --

                        (b) EBITDA computed for the period consisting of such
            Fiscal Quarter and each of the three immediately preceding Fiscal
            Quarters."

            SECTION 1.4 Amendments to Section 7.2.2. Section 7.2.2. is amended
                        ---------------------------
by adding the following sentence at the end thereof:

       "In addition, no Indebtedness otherwise permitted by clause (d), (f)
as such clause relates to Loans made by the borrower to its Subsidiaries) or (k)
may be incurred during the period commencing April 28, 2000 and ending March 31,
2002."

            SECTION 1.5. Amendments to Section 7.2.4. Section 7.2.4 is amended
                         ---------------------------
and restated in its entirety to read as follows:

       "SECTION 7.2.4. Financial Condition. (a) Senior Debt to EBITDA
                       -------------------      ---------------------
Ratio. The Borrower will not permit the Senior Debt to EBITDA Ratio as of the
-----
end of any Fiscal Quarter set forth below to be greater than the ratio set forth
opposite such date:

                                       3
<PAGE>

                                                      Senior Debt to
            Fiscal Quarter End                          EBITDA Ratio
            ------------------                          ------------

         June 30, 2001                                      2.75
         September 30, 2001                                 2.75
         December 31, 2001                                  2.75
         March 31, 2002                                     2.50
         June 30, 2002                                      2.50
         September 30, 2002                                 2.25
         December 31, 2002                                  2.25

            (b) Interest Coverage Ratio. The Borrower will not permit the
                -----------------------
Interest Coverage Ratio as of the end of any Fiscal Quarter to be set forth
below to be less than the ratio set forth opposite such date:

                                                          Interest
                    Fiscal Quarter End                 Coverage Ratio
                    ------------------                 --------------

         March 31, 2003                                     3.00

         Each Fiscal Quarter thereafter                     3.00

            (c) Fixed Charge Coverage Ratio. The Borrower will not permit the
                ---------------------------
Fixed Charge Coverage Ratio as of the end of any Fiscal Quarter set forth below
to be less than the ratio set forth opposite such date:

                                                       Fixed Charge
                Fiscal Quarter End                    Coverage Ratio
                ------------------                    --------------

         June 30, 2001                                      1.05
         September 30, 2001                                 1.05
         December 31, 2001                                  1.05
         March 31, 2002                                     1.10
         June 30, 2002                                      1.10
         September 30, 2002                                 1.10
         December 31, 2002                                  1.10
         March 31, 2003                                     1.75
         June 30, 2003                                      1.75
         September 30, 2003                                 1.75
         December 31, 2003                                  2.00
         March 31, 2004                                     2.00
         June 30, 2004                                      2.00
         September 30, 2004                                 2.00

                                       4
<PAGE>

         December 31, 2004                                  2.00
         Each Fiscal Quarter thereafter                     0.40

            (d) Total Debt to EBITDA Ratio. The Borrower will not permit the
                --------------------------
Total Debt to EBITDA Ratio as of the end of any Fiscal Quarter set forth below
to be greater than the ratio set forth opposite such date:

                                                       Total Debt to
                 Fiscal Quarter End                     EBITDA Ratio
                 ------------------                     ------------

         March 31, 2002                                     5.25
         June 30, 2002                                      5.25
         September 30, 2002                                 5.00
         December 31, 2002                                  5.00
         March 31, 2003                                     3.75
         June 30, 2003                                      3.75
         September 30, 2003                                 3.75
         December 31, 2003                                  3.75
         Each Fiscal Quarter thereafter                     3.00

         (e) Minimum EBITDA. The Borrower will not permit EBITDA for the four
             --------------
quarters ended on the date set forth below to be less than the amount set forth
below opposite such date:

      Four Quarters Ended                             Minimum EBITDA
      -------------------                             --------------

      June 30, 2000                                   [Confidential
      September 30, 2000                              Treatment Requested By New
      December 31, 2000                               World Pasta
      March 31, 2001                                  Company]

            SECTION 1.6. Amendments to Section 7.2.5. Section 7.2.5 is amended
                         ---------------------------
by amending and restating clause (o) thereof in its entirety to read as follows:

                        "(o) no Investment otherwise permitted by clause
                                                                  ------
            (f)(ii), (g) or (h) shall be permitted to be made if, immediately
            -------------------
            before or after giving effect thereto, any Default shall have
            occurred and be continuing or at any time during the period
            commencing April 28, 2000 and ending March 31, 2002."

            SECTION 1.7. Amendments to Section 7.2.6. Section 7.2.6 is amended
                         ---------------------------
by amending clause (d) thereof by adding the following sentence at the end
thereof:

         "Notwithstanding the foregoing, the Borrower shall not be permitted to
         make any Restricted Payment or take any other action otherwise
         permitted to be made or taken pursuant to clause (d) during the period
         commencing April 28, 2000 and ending March 31, 2002."

                                       5
<PAGE>

            SECTION 1.8. Waiver of Compliance with Section 7.2.4. The Lenders
                         ---------------------------------------
hereby waive any noncompliance with the provisions of Section 7.2.4 through
April 2, 2000.

            SECTION 1.9. Amendments to Section 7.2.7. Section 7.2.7. is amended
                         ---------------------------
by amending clause (a) thereof by adding the following sentence at the end
thereof:

            "Notwithstanding the foregoing, the excess amount of Capital
Expenditures permitted to be carried forward in the Fiscal Year 2000 may not
exceed $5,000,000."

                                   ARTICLE II.

                   AMENDMENT FEE; CONDITIONS TO EFFECTIVENESS

            Section 2.1. Amendment Fee. The Borrower agrees to pay to each
                         -------------
Lender consenting to this Amendment on or before the First Amendment Effective
Date an amendment fee equal to 0.50% of outstanding principal amount of all
outstanding Term Loans plus 0.50% of the Revolving Loan Commitment Amount
(computed after giving effect to this Amendment) of such Lender (the "Amendment
Fee"). Such fee shall be fully earned and nonrefundable upon the First Amendment
Effective Date. The Borrower shall pay the Amendment Fee to the Administrative
Agent on the First Amendment Effective Date for the benefit of such consenting
Lenders.

            Section 2.2. Amendment Effective Date. This Amendment, and the
                         ------------------------
waivers and amendments contained herein shall be and become effective on the
date (the "First Amendment Effective Date") when each of the conditions set
           ------------------------------
forth in this Article II shall have been fulfilled to the satisfaction of the
              ----------
Administrative Agent:

            (a) Execution of Counterparts. The Administrative Agent shall have
                -------------------------
received counterparts of this Amendment, duly executed by and delivered on
behalf of (i) the Borrower, (ii) the Required Lenders and (iii) Lenders holding
at least 51% of the aggregate outstanding principal amount of the Revolving
Loans or, if no Revolving Loans are outstanding, at least 51% of the Revolving
Loan Commitments.

            (b) Fees and Expenses. The Administrative Agent shall have received
                -----------------
the Amendment Fee and all fees and expenses due and payable pursuant to Section
                                                                        -------
10.3 and pursuant to the Credit Agreement (including all previously invoiced
----
fees and expenses).

            (c) Deadline. The foregoing conditions in this Section 2.2 shall
                --------
have been satisfied on or before May 15, 2000.

                                  ARTICLE III.

                         REPRESENTATIONS AND WARRANTIES

            SECTION 3.1. Representations and Warranties. In order to induce the
                         ------------------------------
Lenders and the Administrative Agent to enter into this Amendment, the Borrower,
hereby represents and warrants to each Agent and each Lender, as of the date
hereof and as of the First Amendment Effective Date, as follows:

                                       6
<PAGE>

            (a) Good Standing and Power. The Borrower is duly organized, validly
                -----------------------
existing and in good standing under the laws of the State of Delaware.

            (b) Corporate Authority. The Borrower has full corporate power and
                -------------------
authority to execute, deliver and perform this Amendment and the Amended Credit
Agreement and to incur the obligations provided for herein and therein, all of
which have been duly authorized by all proper and necessary corporate action. No
consent or approval of stockholders is required as a condition to the validity
or performance or the exercise by the Administrative Agent of any of its rights
or remedies under the Amended Credit Agreement.

            (c) Authorizations. All authorizations, consents, approvals,
                --------------
registrations, notices, exemptions and licenses with or from governmental
authorities and other persons, if any, which are necessary for the execution and
delivery of this Amendment, the performance by the Borrower of its obligations
hereunder and under the Amended Credit Agreement and the exercise by the
Administrative Agent of its rights and remedies hereunder and thereunder, have
been effected or obtained and are in full force and effect.

            (d) Binding Agreements. This Amendment and the Amended Credit
                ------------------
Agreement constitute the valid and legally binding obligations of the Borrower
enforceable in accordance with their terms subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors rights and to general equity
principles.

            (e) No Conflicts. There is no statute, regulation, rule, order or
                ------------
judgment, and no provision of any agreement or instrument binding on the
Borrower or affecting its properties and no provision of the certificate of
incorporation or by-laws of the Borrower, which would prohibit, conflict with or
in any way prevent the execution, delivery, or performance of the terms of this
Amendment or the Amended Credit Agreement or the incurrence of the obligations
provided for herein and therein, or result in or require the creation or
imposition of any lien, security interest or other encumbrance (other than in
favor of the Administrative Agent) on any of the Borrower's properties as a
consequence of the execution, delivery and performance of this Amendment or the
Amended Credit Agreement or the transactions contemplated hereby and thereby.

            (f) No Default. As of the date hereof, and after giving effect to
                ----------
this Amendment, there does not exist any Event of Default or event which, upon
the giving of notice or lapse of time or both, would constitute an Event of
Default.

                                   ARTICLE IV.

                                  MISCELLANEOUS

            SECTION 4.1. Full Force and Effect; Limited Amendment. Except as
                         ----------------------------------------
expressly modified hereby, all of the representations, warranties, terms,
covenants, conditions and other provisions of the Credit Agreement and the Notes
shall remain unamended and unwaived and shall continue to be, and shall remain,
in full force and effect in accordance with their respective terms. The
amendments set forth herein shall be limited precisely as provided for herein to
the provisions expressly amended herein and shall not be deemed to be a waiver
to, consent to or

                                       7
<PAGE>

modification of any other term or provision of the Credit Agreement or any Note
or of any transaction or further or future action on the part of the which would
require the consent of the Lenders under the Credit Agreement.

            SECTION 4.2. Loan Document Pursuant to Credit Agreement. This
                         ------------------------------------------
Amendment is executed pursuant to the Credit Agreement and shall be construed,
administered and applied in accordance with all of the terms and provisions of
the Credit Agreement (and, following the Amendment Effective Date, the Amended
Credit Agreement). Any breach of any representation or warranty or covenant or
agreement contained in this Amendment shall be deemed to be an Event of Default
for all purposes of the Amended Credit Agreement.

            SECTION 4.3. Fees and Expenses. The Borrower shall pay all
                         -----------------
reasonable out-of-pocket expenses incurred by the Agent in connection with the
preparation, negotiation, execution and delivery of this Amendment and the
documents and transactions contemplated hereby.

            SECTION 4.4. Headings. The various headings of this Amendment are
                         --------
inserted for convenience only and shall not affect the meaning or interpretation
of this Amendment or any provisions hereof.

            SECTION 4.5. Execution in Counterparts. This Amendment may be
                         -------------------------
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement.

            SECTION 4.6. Cross-References. References in this Amendment to any
                         ----------------
Article or Section are, unless otherwise specified or otherwise required by the
context, to such Article or Section of this Amendment.

            SECTION 4.7. Successors and Assigns. This Amendment shall be binding
                         ----------------------
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

            SECTION 4.8. GOVERNING LAW. THIS WAIVER SHALL BE DEEMED TO BE A
                         -------------
CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                                       8
<PAGE>

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

                                    NEW WORLD PASTA COMPANY

                                    By:  /s/ Mark E. Kimmel
                                         -------------------------------
                                         Name:  Mark E. Kimmel
                                         Title:  VP and General Counsel

                                    THE BANK OF NOVA SCOTIA, as
                                    Lead Arranger, Administrative Agent and
                                    Letter of Credit Issuer

                                    By:  /s/ Todd S. Meller
                                         -------------------------------
                                         Name: Todd S. Meller
                                         Title: Managing Director
<PAGE>

                                    LENDERS:

                                    THE BANK OF NOVA SCOTIA

                                    By:    /s/ Todd S. Meller
                                         -------------------------------------
                                         Name: Todd S. Meller
                                         Title: Managing Director

                                    MORGAN STANLEY SENIOR FUNDING, INC.

                                    By:     /s/ Henry F. D'Alessandro
                                         -------------------------------------
                                         Name: Henry F. D'Alessandro
                                         Title: Principal

                                    THE BANK OF NEW YORK

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

                                    CREDIT AGRICOLE INDOSUEZ

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

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

                                    ARES III CLO Ltd.

                                    By: Ares

                                    By:  /s/ David A. Sachs.
                                         -------------------------------------
                                         Name:  David A. Sachs
                                         Title:  Vice President
<PAGE>

                                    GENERAL ELECTRIC CAPITAL CORPORATION

                                    By:    /s/ W. Jerome McDermott
                                         -------------------------------------
                                         Name:  W. Jerome McDermott
                                         Title:   Duly Authorized Signatory

                                    HARRIS TRUST AND SAVINGS BANK

                                    By:    /s/ Karen L. Knudsen
                                         -------------------------------------
                                         Name:   Karen L. Knudsen
                                         Title: Vice President

                                    KEY BANK

                                    By:    /s/ Jay R. McKenney
                                         -------------------------------------
                                         Name:  Jay R. McKenney
                                         Title:  Vice President

                                    BLACK DIAMOND CLO 1998-1 Ltd.

                                    By:  BLACK DIAMOND

                                    By:     /s/ John H. Cullinane
                                         -------------------------------------
                                         Name: John H. Cullinane
                                         Title:  Director

                                    WELLS FARGO BANK, N.A.

                                    By:     /s/ Michael T. McGroarty
                                         -------------------------------------
                                         Name:  Michael T. McGroarty
                                         Title:  V.P.
<PAGE>

                                    WINGED FOOT FUNDING TRUST

                                    By: CONSECO

                                    By:     /s/ Ashley R. Hamilton
                                         -------------------------------------
                                         Name:  Ashley R. Hamilton
                                         Title:  Authorized Agent

                                    EATON VANCE INSTITUTION SENIOR LOAN
                                    FUND

                                    By:  EATON VANCE MANAGEMENT
                                         AS INVESTMENT ADVISOR

                                    By:     /s/ Payson F. Swaffield
                                         -------------------------------------
                                         Name:  Payson F. Swaffield
                                         Title:  Vice President

                                    EATON VANCE SENIOR INCOME TRUST

                                    By:  EATON VANCE MANAGEMENT
                                         AS INVESTMENT ADVISOR

                                    By:  /s/ Payson F. Swaffield
                                         -------------------------------------
                                         Name:  Payson F. Swaffield
                                         Title:  Vice President

                                    OXFORD STRATEGIC INCOME FUND

                                    By:  EATON VANCE MANAGEMENT
                                         AS INVESTMENT ADVISOR

                                    By:     /s/ Payson F. Swaffield
                                         -------------------------------------
                                         Name:  Payson F. Swaffield
                                         Title:  Vice President
<PAGE>

                                    SENIOR DEBT PORTFOLIO

                                    By:  BOSTON MANAGEMENT AND
                                         RESEARCH AS INVESTMENT ADVISOR

                                    By:     /s/ Payson F. Swaffield
                                         -------------------------------------
                                         Name:   Payson F. Swaffield
                                         Title:  Vice President

                                    FIRST DOMINION FUNDING III

                                    By:

                                    By:    /s/ Andrew H. Marshak
                                         -------------------------------------
                                         Name:  Andrew H. Marshak
                                         Title: Authorized Signatory

                                    FLEET NATIONAL BANK

                                    By:     /s/ Thomas J. Mahoney
                                         -------------------------------------
                                         Name:  Thomas J. Mahoney
                                         Title:  Vice President

                                    FOOTHILL CAPITAL CORP.

                                    By:     /s/ Jeff Nikora
                                         -------------------------------------
                                         Name:  Jeff Nikora
                                         Title:

                                    FRANKLIN FLOATING RATE TRUST

                                    By:  -------------------------------------
                                         Name:
                                         Title:
<PAGE>

                                    KZH WATERSIDE LLC

                                    By:     /s/ Peter Chin
                                         -------------------------------------
                                         Name: Peter Chin
                                         Title:  Authorized Agent

                                    FLOATING RATE PORTFOLIO

                                    By:  INVESCO SENIOR SECURED
                                         MANAGEMENT, INC., as attorney-in-fact

                                    By:     /s/ Anne M. McCarthy
                                         -------------------------------------
                                         Name:  Anne M. McCarthy
                                         Title:  Authorized Signatory

                                    PERSEUS CDO I, LIMITED

                                    By:  MASSACHUSETTS MUTUAL LIFE
                                    INSURANCE COMPANY

                                    By:     /s/ Steven J. Katz
                                         -------------------------------------
                                         Name:  Steven J. Katz
                                         Title:  Second Vice President and
                                                 Associate General Counsel

                                    By:  MASSACHUSETTS MUTUAL LIFE
                                    INSURANCE COMPANY

                                    By:     /s/ Steven J. Katz
                                         -------------------------------------
                                         Name:  Steven J. Katz
                                         Title:  Second Vice President and
                                                 Associate General Counsel
<PAGE>

                                    ELC (Cayman) Ltd.

                                    By:     /s/ E. A. Kratzman, III
                                         -------------------------------------
                                         Name: E. A. Kratzman, III
                                         Title:  Managing Director

                                    FREMONT INVESTMENT AND LOAN

                                    By:     /s/ Maureen Nunnari
                                         -------------------------------------
                                         Name:  Maureen Nunnari
                                         Title:  V.P.

                                    INDOSUEZ CAPITAL FUNDING IIA,
                                    LIMITED

                                    By:  INDOSUEZ CAPITAL

                                    By:     /s/ Melissa Marano
                                         -------------------------------------
                                         Name:  Melissa Marano
                                         Title:   Vice President

                                    INDOSUEZ CAPITAL FUNDING IV, L.P.

                                    By:  INDOSUEZ CAPITAL

                                    By:     /s/ Melissa Marano
                                         -------------------------------------
                                         Name:  Melissa Marano
                                         Title:  Vice President

                                    STEIN ROE & FARNHAM CLO 1 Ltd.

                                    By Stein roe & Farnham Incorporated,

                                    As Portfolio Manager

                                    By:     /s/ James R. Fellows
                                         -------------------------------------
                                         Name: James R. Fellows
                                         Title:  Vice President
<PAGE>

                                    AVALON CAPITAL Ltd.

                                    By:  INVESCO Senior Secured Management Inc.,
                                         as portfolio Advisor

                                    By:     /s/ Anne M. McCarthy
                                         -------------------------------------
                                         Name: Anne M. McCarthy
                                         Title: Authorized Signatory

                                    PPM AMERICA, INC., as attorney in fact,
                                    on behalf of Jackson National Life Insurance
                                    Company

                                    By:     /s/ John Walding
                                         -------------------------------------
                                         Name:  John Walding
                                         Title:  Managing Director

                                    TRAVELERS PRIVATE PLACEMENT

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

                                    KZH SOLEIL - 2 LLC

                                    By:     /s/ Peter Chin
                                         -------------------------------------
                                         Name:  Peter Chin
                                         Title:   Authorized Agent

                                    MOUNTAIN CAPITAL CLO I, Ltd.

                                    By:  MOUNTAIN CAPITAL

                                    By:     /s/ Darren P. Riley
                                         -------------------------------------
                                         Name:  Darren P. Riley
                                         Title:  Director
<PAGE>

                                    OASIS COLLATERALIZED HIGH INCOME
                                    PORTFOLIOS-1, Ltd.

                                    By:  INVESCO Senior Secured Management,
                                         Inc., as Sub-Advisor

                                    By:     /s/ Anne M. McCarthy
                                         -------------------------------------
                                         Name:  Anne M. McCarthy
                                         Title:  Authorized Signatory

                                    TRAVELERS CORPORATE LOAN FUND INC.

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

                                    KZH SOLEIL LLC

                                    By:     /s/ Peter Chin
                                         -------------------------------------
                                         Name:  Peter Chin
                                         Title:  Authorized Agent

                                    VAN KAMPEN CLO II, LIMITED

                                    By:  VAN KAPMEN, MANAGEMENT INC., as
                                         Collateral Manager

                                    By:     /s/ Darvin D. Pierce
                                         -------------------------------------
                                         Name: Darvin D. Pierce
                                         Title:  Vice President

                                    VAN KAPMEN PRIME RATE INCOME TRUST

                                    By: VAN KAPMEN INVESTMENT ADVISORY CORP.

                                    By:     /s/ Darvin D. Pierce
                                         -------------------------------------
                                         Name: Darvin D. Pierce
                                         Title:  Vice President
<PAGE>

                                    GALAXY CLO 1999 - 1, LTD.

                                    By: SAI INVESTMENT ADVISER, INC.
                                    it's Collateral Manager

                                    By:     /s/ Sabyr Moini
                                         -------------------------------------
                                         Name:
                                         Title:
<PAGE>

           The undersigned each hereby expressly (i) acknowledges the terms of
the foregoing Amendment, (ii) ratifies and affirms its obligations under the
Loan Documents (as defined in the Credit Agreement, including guarantees,
security agreements and pledge agreements) executed and delivered by the
undersigned in favor of the Agent for the benefit of the Lenders, and (iii)
acknowledges, renews and extends its continued liability under all such Loan
Documents and agrees such Loan Documents remain in full force and effect,
including with respect to the obligations of the Borrower as modified by the
foregoing Amendment.

                                    PASTA GROUP, LLC

                                    By:     /s/ Mark E. Kimmel
                                         -------------------------------------
                                         Name: Mark E. Kimmel
                                         Title: Secretary

                                    WINCHESTER PASTA, LLC

                                    By:     /s/ Mark E. Kimmel
                                         -------------------------------------
                                         Name:  Mark E. Kimmel
                                         Title:  Secretary

                                    NEW WORLD PASTA LLC

                                    By:     /s/ Brett Milgrim
                                         -------------------------------------
                                         Name:  Brett Milgrim
                                         Title:  Vice President

                                    By:     /s/ David Ying
                                         -------------------------------------
                                         Name:  David Ying
                                         Title: Chairman, CEO and President

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