Document:

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                                                                   EXHIBIT 10.16

                                                                Loan No. PRT0989

                               LINE OF CREDIT AGREEMENT

            THIS LINE OF CREDIT AGREEMENT is entered into as of January 22,
2004, between FARM CREDIT WEST, PCA, Visalia, California ("FCW") and CALAVO
GROWERS, INC., Santa Ana, California (the "Company").

      SECTION 1. THE REVOLVING CREDIT FACILITY. On the terms and conditions set
forth in this agreement, FCW agrees to make loans to the Company during the
period set forth below in an aggregate principal amount not to exceed
$12,000,000.00 (the "Commitment"). Within the limits of the Commitment, the
Company may borrow, repay and reborrow.

      SECTION 2. SALE OF INTEREST TO COBANK. The Company acknowledges that
concurrent with the execution of this Line of Credit Agreement, FCW is selling a
100% participation interest in the Commitment to CoBank, ACB ("CoBank"). All
funds to be advanced hereunder shall be made by CoBank, all repayments by the
Company hereunder shall be made to CoBank, and all notices to be made to FCW
shall be made to CoBank and to FCW. CoBank shall be solely responsible for the
administration of this Line of Credit Agreement and the enforcement of all
rights and remedies of FCW hereunder, including administration of so called
"borrower rights" provisions of regulations of the Farm Credit Administration
covering interest rate disclosures, restructuring for distressed loans, the
right of first refusal with respect to acquired property, and other matters as
set forth in the applicable regulations.

      SECTION 3. PURPOSE. The purpose of the Commitment is to finance the
operating needs of the Company and for the issuance of approved letters of
credit.

      SECTION 4. TERM. The term of the Commitment shall be from the date hereof,
up to but not including January 22, 2006, or such later date as FCW may, with
the consent of CoBank, authorize in writing.

      SECTION 5. AVAILABILITY. Subject to the provisions of Section 26, loans
will be made available on any day on which FCW and CoBank and the Federal
Reserve Banks are open for business upon the telephonic or written request of
the Company. Requests for loans must be received no later than 12:00 Noon
Company's local time on the date the loan is desired. Loans will be made
available by CoBank by wire transfer of immediately available funds to such
account or accounts as may be authorized by the Company. The Company shall
furnish to CoBank a duly completed and executed copy of a CoBank Delegation and
Wire and Electronic Transfer Authorization Form, and FCW and CoBank shall be
entitled to rely on (and shall incur no liability to the Company in acting on)
any request or direction furnished in accordance with the terms thereof.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 2

SECTION 6. INTEREST AND FEES.

      (A) INTEREST. The Company agrees to pay interest on the unpaid balance of
the loans in accordance with one of more of the following interest rate options,
as selected by the Company:

            (1) WEEKLY QUOTED VARIABLE RATE. At a rate per annum equal at all
times to the rate of interest established by CoBank on the first Business Day of
each week. The rate established by CoBank shall be effective until the first
Business Day of the next week. Each change in the rate shall be applicable to
all balances subject to this option and information about the then current rate
shall be made available upon telephonic request.

            (2) LIBOR. At a fixed rate per annum equal to "LIBOR" (as
hereinafter defined) plus 100 basis points (1%). Under this option: (1) rates
may be fixed for "Interest Periods" (as hereinafter defined) of 1,2,3,6,9 or
12 months as selected by the Company; (2) amounts may be fixed in increments of
$100,000.00 or multiples thereof; (3) the maximum number of fixes in place at
any one time shall be 10; and (4) rates may only be fixed on a "Banking Day" (as
hereinafter defined) on 3 Banking Days' prior written notice. For purposes
hereof: (a) "LIBOR" shall mean the rate (rounded upward to the nearest
sixteenth) and adjusted for reserves required on "Eurocurrency Liabilities" (as
hereinafter defined) for banks subject to "FRB Regulation D" (as herein defined)
or required by any other federal law or regulation) quoted by the British
Bankers Association (the "BBA") at 11:00 a.m. London time 2 Banking Days before
the commencement of the Interest Period for the offering of U.S. dollar deposits
in the London interbank market for the Interest Period designated by the
Company; as published by Bloomberg or another major information vendor listed on
BBA's official website; (b) "Banking Day" shall mean a day on which CoBank is
open for business, dealings in U.S. dollar deposits are being carried out in the
London interbank market, and banks are open for business in New York City and
London, England; (c) "Interest Period" shall mean a period commencing on the
date this option is to take effect and ending on the numerically corresponding
day in the next calendar month or the month that is 2, 3, 6, 9 or 12 months
thereafter, as the case may be; provided, however, that: (i) in the event such
ending day is not a Banking Day, such period shall be extended to the next
Banking Day unless such next Banking Day falls in the next calendar month, in
which case it shall end on the preceding Banking Day; and (ii) if there is no
numerically corresponding day in the month, then such period shall end on the
last Banking Day in the relevant month; (d) "Eurocurrency Liabilities" shall
have meaning as set forth in "FRB Regulation D"; and (e) "FRB Regulation D"
shall mean Regulation D as promulgated by the Board of Governors of the Federal
Reserve System, 12 CFR Part 204, as amende.

            (3) QUOTED RATE. At a fixed rate per annum to be quoted by CoBank in
its sole discretion in each instance. Under this option, rates may be fixed on
such balances and for such periods, as may be agreeable to CoBank in its sole
discretion in each instance, provided that: (1) the minimum fixed period shall
be 30 days; (2) amounts may be fixed in increments of $500,000.00 or multiples
thereof; and (3) the maximum number of fixes in place at any one time shall be
10.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 3

            The Company shall select the applicable rate option at the time it
requests a loan hereunder and may, subject to the limitations set forth above,
elect to convert balances bearing interest at the variable rate option to one of
the fixed rate options. Upon the expiration of any fixed rate period, interest
shall automatically accrue at the variable rate option provided for above unless
the amount fixed is repaid or fixed for an additional period in accordance with
the terms hereof. Notwithstanding the foregoing, rates may not be fixed in such
a manner as to cause the Company to have to break any fixed rate balance in
order to pay any installment of principal. All elections provided for herein
shall be made telephonically or in writing and must be received by 12:00 Noon
Company's local time. Interest shall be calculated on the actual number of days
each loan is outstanding on the basis of a year consisting of 360 days and shall
be payable monthly in arrears by the 20th day of the following month or on such
other day in such month as CoBank shall require in a written notice to the
Company.

            (B) COMMITMENT FEE. In consideration of the Commitment, the Company
agrees to pay to CoBank a commitment fee on the average daily unused portion of
the Commitment at the rate of 0.15% per annum (calculated on a 360 day basis
based on utilization, which is defined as outstanding advances plus issued and
outstanding letters of credit divided by the total available amount of the
Commitment), payable quarterly in arrears by the 20th day following each
quarter. Such fee shall be payable for each quarter (or portion thereof)
occurring during the original or any extended term of the Commitment.

      SECTION 7. REPAYMENT AND MATURITY. The unpaid principal balance of the
loans shall mature and be due and payable on January 22, 2006, or such later
date as CoBank may in its sole discretion authorize in writing (the "Maturity
Date").

      SECTION 8. PROMISSORY NOTE. The Company's obligation to repay the loans
shall be evidenced by a promissory note in the form attached hereto as Exhibit A
("Note").

      SECTION 9. MANNER AND TIME OF PAYMENT. CoBank shall maintain a record of
all loans, the interest accrued thereon, and all payments made with respect
thereto, and such record shall, absent proof of manifest error, be conclusive
evidence of the outstanding principal and interest on the loans. All payments
shall be made by wire transfer of immediately available funds, by check, or by
automated clearing house or other similar cash handling processes as specified
by separate agreement between the Company and CoBank. Wire transfers shall be
made to ABA No. 307088754 for advice to and credit of CoBank (or to such other
account as CoBank may direct by notice). The Company shall give CoBank
telephonic notice no later than 12:00 Noon Company's local time of its intent to
pay by wire and funds received after 3:00 p.m. Company's local time shall be
credited on the next business day. Checks shall be mailed to CoBank, Department
167, Denver, Colorado 80291-0167 (or to such other place as CoBank may direct by
notice). Credit for payment by check will not be given until the later of: (a)
the day on which CoBank receives immediately available funds; or (b) the next
business day after receipt of the check.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 4

      SECTION 10. CAPITALIZATION. The participation interest in the Loans held
by CoBank shall be on a patronage basis; provided, however, that pursuant to
Section 27 hereunder, any subparticipation interest sold by CoBank subsequent to
its initial purchase of the 100% participation interest from FCW shall not be on
a patronage basis. The Company will initially purchase a $1,000.00 stock
investment under FCW capitalization plan. The Company understands that in light
of the sale of 100% of the Commitment to CoBank, the Company has a right as set
forth in the Regulations of the Farm Credit Administration (see Section
614.4335) to elect to invest in equities of either FCW or CoBank. Subject to the
provisions of Section 28 below, the Company hereby elects to purchase such
equity in CoBank as CoBank may from time to time require in accordance with its
Bylaws. However, the maximum amount of equity which the Company shall be
obligated to purchase in connection with any loan may not exceed the maximum
amount permitted by the Bylaws as of the date hereof or at the time this loan is
renewed or refinanced under an arrangement where some or all of the loan is
participated in by CoBank.

      SECTION 11. SECURITY. The Company's obligations under this agreement and
the Note shall be secured by a statutory first lien on all equity which the
Company may now own or hereafter acquire in FCW or CoBank. With the exception of
the security referenced in the preceding sentence, the Company's obligations
under this agreement and the Note shall be unsecured.

      SECTION 12. LETTERS OF CREDIT. If agreeable to CoBank in its sole
discretion in each instance, in addition to loans, the Company may utilize up to
$2,500,000.00 of the Commitment to open irrevocable letters of credit for its
account. Each letter of credit will be issued within a reasonable period of time
after receipt of a duly completed and executed copy of CoBank's then current
form of application or, if applicable, in accordance with the terms of any
CoTrade Agreement between the parties, and shall reduce the amount available
under the Commitment by the maximum amount capable of being drawn thereunder.
Any draw under any letter of credit issued hereunder shall be deemed an advance
under the Commitment. Each letter of credit must be in form and content
acceptable to CoBank and must expire no later than the maturity date of the
loan.

      SECTION 13. CONDITIONS PRECEDENT. CoBank's obligation to make loans
hereunder is subject to the condition precedent that CoBank receive, in form and
content satisfactory to CoBank, each of the following:

            (A) THIS AGREEMENT, ETC. A duly executed copy of this agreement and
all instruments and documents contemplated hereby.

            (B) EVIDENCE OF AUTHORITY. Such certified board resolutions,
evidence of incumbency, and other evidence that CoBank may require that this
agreement and the Note have been duly authorized and executed.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 5

            (C) FEES AND OTHER CHARGES. All fees and other charges provided for
herein.

            (D) EVIDENCE OF INSURANCE. Such evidence as CoBank may require that
the Company is in compliance with Section 15(C) hereof.

            (E) EVENT OF DEFAULT. That no "Event of Default" (as defined in
Section 18 hereof) or event which with the giving of notice and/or the passage
of time would become an Event of Default hereunder (a "Potential Default"),
shall have occurred and be continuing.

            (F) PARTICIPATION CERTIFICATE. That CoBank and FCW shall have
entered into a Participation Certificate covering the loan hereunder to be dated
as of the date hereof.

      SECTION 14. REPRESENTATIONS AND WARRANTIES.

            (A) THIS AGREEMENT. The Company represents and warrants to FCW and
CoBank that as of the date of this Agreement:

                  (1) COMPLIANCE. The Company and, to the extent contemplated
hereunder, each "Subsidiary" (as defined below), is in compliance with all of
the terms of this agreement, and no Event of Default or Potential Default exists
hereunder.

                  (2) SUBSIDIARIES. The Company has the following Subsidiaries:
Calavo Foods, Inc. (CFI); Maui Fresh International, Inc.; Calavo de Mexico S.A.
de C.V.; and Calavo Foods de Mexico S.A. de C.V. . For purposes hereof, a
"Subsidiary" shall mean a corporation of which shares of stock having ordinary
voting power to elect a majority of the board of directors or other managers of
such corporation are owned, directly or indirectly, by the Company.

                  (3) CONFLICTING AGREEMENTS, Etc. This agreement and the Note
(collectively, at any time, the "Loan Documents"), do not conflict with, or
require the consent of any party to, any other agreement to which the Company is
a party or by which it or its property may be bound or affected, and do not
conflict with any provision of the Company's bylaws, articles of incorporation,
or other organizational documents.

                  (4) COMPLIANCE. The Company and, to the extent contemplated
hereunder, each Subsidiary, if any, is in compliance with all of the terms of
the Loan Documents.

                  (5) BINDING AGREEMENT. The Loan Documents create legal, valid,
and binding obligations of the Company which are enforceable in accordance with
their terms, except to the extent that enforcement may be limited by applicable
bankruptcy, insolvency, or similar laws affecting creditors' rights generally.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 6

      SECTION 15. AFFIRMATIVE COVENANTS. Unless otherwise agreed to in writing
by CoBank, while this agreement is in effect, the Company agrees to and with
respect to Subsections 15(A) through 15(F) hereof, agrees to cause each
Subsidiary, if any, to:

            (A) CORPORATE EXISTENCE, LICENSES. ETC. (i) Preserve and keep in
full force and effect its existence and good standing in the jurisdiction of its
incorporation or formation; (ii) qualify and remain qualified to transact
business in all jurisdictions where such qualification is required; and (iii)
obtain and maintain all licenses, certificates, permits, authorizations,
approvals, and the like which are material to the conduct of its business or
required by law, rule, regulation, ordinance, code, order, and the like
(collectively, "Laws").

            (B) COMPLIANCE WITH LAWS. Comply in all material respects with all
applicable Laws, including, without limitation, all Laws relating to
environmental protection. In addition, the Company agrees to cause all persons
occupying or present on any of its properties, and to cause each Subsidiary, if
any, to cause all persons occupying or present on any of its properties, to
comply in all material respects with all environmental protection Laws.

            (C) INSURANCE. Maintain insurance with insurance companies or
associations acceptable to CoBank in such amounts and covering such risks as are
usually carried by companies engaged in the same or similar business and
similarly situated, and make such increases in the type or amount of coverage as
CoBank may request. At CoBank's request, all policies (or such other proof of
compliance with this Subsection as may be satisfactory to CoBank) shall be
delivered to CoBank.

            (D) PROPERTY MAINTENANCE. Maintain all of its property that is
necessary to or useful in the proper conduct of its business in good working
condition, ordinary wear and tear excepted.

            (E) BOOKS AND RECORDS. Keep adequate records and books of account in
which complete entries will be made in accordance with generally accepted
accounting principles ("GAAP") consistently applied.

            (F) INSPECTION. Permit CoBank or its agents, upon reasonable notice
and during normal business hours or at such other times as the parties may
agree, to examine its properties, books, and records, and to discuss its
affairs, finances, and accounts, with its respective officers, directors,
employees, and independent certified public accountants.

            (G) REPORTS AND NOTICES. Furnish to CoBank:

                (1) ANNUAL FINANCIAL STATEMENTS. As soon as available, but in no
event more than 90 days after the end of each fiscal year of the Company
occurring during the term hereof, annual consolidated and consolidating
financial statements of the Company and its consolidated Subsidiaries, if any,
prepared in accordance with GAAP consistently applied. Such financial statements
shall: (a) be audited by independent certified public accountants selected by
the

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LINE OF CREDIT AGREEMENT NO. PRT0989                                      Page 7

Company and acceptable to CoBank; (b) be accompanied by a report of such
accountants containing an opinion thereon acceptable to CoBank; (c) be prepared
in reasonable detail and in comparative form; and (d) include a balance sheet, a
statement of income, a statement of retained earnings, a statement of cash
flows, and all notes and schedules relating thereto.

                  (2) INTERIM FINANCIAL STATEMENTS. As soon as available, but in
no event more than 30 days after the end of each fiscal quarter, a consolidated
balance sheet of the Company and its consolidated Subsidiaries, if any, as of
the end of such quarter, a consolidated statement of income for the Company and
its consolidated Subsidiaries, if any, for such period and for the period year
to date, and such other interim statements as CoBank may specifically request,
all prepared in reasonable detail and in comparative form in accordance with
GAAP consistently applied and certified by an authorized officer or employee of
the Company acceptable to CoBank.

                  (3) NOTICE OF DEFAULT. Promptly after becoming aware thereof,
notice of the occurrence of an Event of Default or a Potential Default.

                  (4) NOTICE OF NON-ENVIRONMENTAL LITIGATION. Promptly after the
commencement thereof, notice of the commencement of all actions, suits, or
proceedings before any court, arbitrator, or governmental department,
commission, board, bureau, agency, or instrumentality affecting the Company or
any Subsidiary which, if determined adversely to the Company or any such
Subsidiary, could have a material adverse effect on the financial condition,
properties, profits, or operations of the Company or any such Subsidiary.

                  (5) NOTICE OF ENVIRONMENTAL LITIGATION, ETC. Promptly after
receipt thereof, notice of the receipt of all pleadings, orders, complaints,
indictments, or any other communication alleging a condition that may require
the Company or any Subsidiary to undertake or to contribute to a cleanup or
other response under environmental Laws, or which seek penalties, damages,
injunctive relief, or criminal sanctions related to alleged violations of such
Laws, or which claim personal injury or property damage to any person as a
result of environmental factors or conditions.

                  (6) BYLAWS AND ARTICLES. Promptly after any change in the
Company's bylaws or articles of incorporation (or like documents), copies of all
such changes, certified by the Company's Secretary.

                  (7) OTHER INFORMATION. Such other information regarding the
condition or operations, financial or otherwise, of the Company or any
Subsidiary as CoBank may from time to time reasonably request, including but not
limited to copies of all pleadings, notices, and communications referred to in
Subsections 15(G)(4) and (5) above.

                  (8) FINANCIAL CERTIFICATE. Together with each set of
financial statements furnished to CoBank pursuant to Section 15(G)(1), and each
quarterly statement submitted

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LINE OF CREDIT AGREEMENT NO. PRT0989                                   Page 8

pursuant to Section 15(G)(2) for a period corresponding to a period for which
one or more of the financial covenants set forth in Section 17 hereof are
required to be tested, a certificate of an officer or employee of the Company
acceptable to CoBank setting forth calculations showing compliance with each of
the financial covenants that require compliance at the end of the period for
which the statements are being furnished.

            (H) CERTAIN ORGANIZATIONAL CHANGES. Provide CoBank with prior notice
(and as early as practicable) of any merger, consolidation reorganization under
a different provision of law, acquisition  of all or a material part of the
assets of another organization change of name, adoption of any trade name, or
creation of any Subsidiary, affiliate or material joint venture(s). For purposes
of this covenant, joint venture transaction(s), which alone or in the aggregate
exceed $1,000,000, are considered material.

      SECTION 16. NEGATIVE COVENANTS. Unless otherwise agreed to in writing by
CoBank, which agreement will not be unreasonably withheld, while this agreement
is in effect, the Company will not:

                  (A) BORROWINGS. Create, incur, assume, or allow to exist,
directly or indirectly, any indebtedness or liability for borrowed money
(including trade or bankers' acceptances), letters of credit, or the deferred
purchase price of property or services (including capitalized leases), except
for: (i) debt to CoBank; (ii) accounts payable to trade creditors incurred in
the ordinary course of business; and (iii) current operating liabilities (other
than for borrowed money) incurred in the ordinary course of business; (iv) debt
of the Company to Bank of America in an amount not to exceed $12,000,000.00 and
all extensions, renewals, and refinancings thereof; (v) (vi) letters of credit
issued by any bank for the account of the Company in an aggregate face amount
not to exceed $5,000,000.00 at any one time outstanding; and (vii) capitalized
leases existing on the date hereof existing from time to time.

                  (B) LIENS. Create, incur, assume, or allow to exist any
mortgage, deed of trust, pledge, lien (including the lien of an attachment,
judgment, or execution), security interest, or other encumbrance of any kind
upon any of its property, real or personal (collectively, "Liens"). The
foregoing restrictions shall not apply to: (i) Liens in favor of FCW or CoBank;
(ii) Liens for taxes, assessments, or governmental charges that are not past
due; (iii) Liens and deposits under workers' compensation, unemployment
insurance, and social security Laws; (iv) Liens and deposits to secure the
performance of bids, tenders, contracts (other than contracts for the payment of
money), and like obligations arising in the ordinary course of business as
conducted on the date hereof; (v) Liens imposed by Law in favor of mechanics,
materialmen, warehousemen, and like persons that secure obligations that are not
past due; and (vi) easements, rights-of-way, restrictions, and other similar
encumbrances which, in the aggregate, do not materially interfere with the
occupation, use, and enjoyment of the property or assets encumbered thereby in
the normal course of its business or materially impair the value of the property
subject theretor.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                    Page 9

            (C) [INTENTIONALLY OMITTED]

            (D) TRANSFER OF ASSETS. Sell, transfer, lease, or otherwise dispose
of any of its assets, except in the ordinary course of business.

            (E) LOANS. Lend or advance money, credit, or property to any person
or entity, except for: (i) loans made to U.S. growers under Calavo's grower
development loan program not to exceed $4,000,000.00 outstanding at any one
time; (ii) existing advances and loans to Sierra Pacific; (iii) loans to Mexican
growers not to exceed $1,500,000.00 outstanding at any one time; (iv) Chilean
pre-season grower advances made under existing program not to exceed a gross
amount of $4,000,000.00 outstanding at any one time; and (v) trade credit
extended in the ordinary course of business.

            (F) CONTINGENT LIABILITIES. Assume, guarantee, become liable as a
surety, endorse, contingently agree to purchase, or otherwise be or become
liable, directly or indirectly (including, but not limited to, by means of a
maintenance agreement, an asset or stock purchase agreement, or any other
agreement designed to ensure any creditor against loss), for or on account of
the obligation of any person or entity, except by the endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of the Company's business.

            (G) CHANGE IN BUSINESS. Engage in any business activities or
operations substantially different from or unrelated to the Company's present
business activities or operations.

      SECTION 17. FINANCIAL COVENANTS. Unless otherwise agreed to in writing,
while this agreement is in effect:

            (A) CURRENT RATIO. The Company and its consolidated Subsidiaries, if
any, will have at all times and tested at the end of each fiscal quarter of the
Company, a ratio of consolidated current assets to consolidated current
liabilities (both as determined in accordance with GAAP, adjusted on a specific
unit cost basis, consistently applied) of not less than 1.35 to 1.

            (B) INTEREST COVERAGE RATIO. The Company and its consolidated
Subsidiaries will have at all times and tested at the end of each fiscal quarter
of the Company, a "Interest Coverage Ratio" (as defined below) for that year of
not less than 5.0:1. For purposes hereof, the term "Debt Service Coverage Ratio"
shall mean EBITDA divided by interest expense, both determined in accordance
with GAAP on a moving four-quarter basis.

            (C) TOTAL LEVERAGE RATIO. The Company and its consolidated
Subsidiaries will have at all times and tested at the end of each fiscal quarter
of the Company, a ratio of Funded Debt to EBITDA of not more than 3.5 to 1. For
purposes hereof, the term "Funded Debt" shall mean the total outstanding balance
of all borrowed monies, including letter of credit liability, from all

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LINE OF CREDIT AGREEMENT NO. PRT0989                                     Page 10

lending sources. EBITDA shall be determined in accordance with GAAP and computed
on a moving four-quarter basis.

      SECTION 18. EVENTS OF DEFAULT. Each of the following shall constitute an
"Event of Default" under this agreement:

            (A) PAYMENT DEFAULT. The Company should fail to make any payment to
CoBank when due.

            (B) REPRESENTATIONS AND WARRANTIES. Any representation or warranty
made or deemed made by the Company herein or in the Note, application,
agreement, certificate, or other document related to or furnished in connection
with this agreement or the Note, shall prove to have been false or misleading in
any material respect on or as of the date made or deemed made.

            (C) CERTAIN AFFIRMATIVE COVENANTS. The Company or, to the extent
required hereunder, any Subsidiary should fail to perform or comply with
Sections 15(A) through 15(G)(2), and 15(G)(6) and such failure continues for 15
days after written notice thereof shall have been delivered by CoBank to the
Company.

            (D) OTHER COVENANTS AND AGREEMENTS. The Company or, to the extent
required hereunder, any Subsidiary should fail to perform or comply with any
other covenant or agreement contained herein or in any other Loan Document or
shall use the proceeds of any loan for an unauthorized purpose.

            (E) CROSS-DEFAULT. The Company should, after any applicable grace
period, breach or be in default under the terms of any other agreement between
the Company and CoBank.

            (F) OTHER INDEBTEDNESS. The Company or any Subsidiary should fail to
pay when due any indebtedness to any other person or entity for borrowed money
or any long-term obligation for the deferred purchase price of property
(including any capitalized lease), or any other event occurs which, under any
agreement or instrument relating to such indebtedness or obligation, has the
effect of accelerating or permitting the acceleration of such indebtedness or
obligation, whether or not such indebtedness or obligation is actually
accelerated or the right to accelerate is conditioned on the giving of notice,
the passage of time, or otherwise.

            (G) JUDGMENTS. A judgment, decree, or order for the payment of money
shall be rendered against the Company or any Subsidiary and either: (i)
enforcement proceedings shall have been commenced; (ii) a Lien prohibited under
Section 10(B) hereof shall have been obtained; or (iii) such judgment, decree,
or order shall continue unsatisfied and in effect for a period of 20 consecutive
days without being vacated, discharged, satisfied, or stayed pending appeal.

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LINE OF CREDIT AGREEMENT NO. PRT0989                                    Page 11

            (H) INSOLVENCY, ETC. The Company or any Subsidiary shall: (i) become
insolvent or shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they come due; or (ii) suspend its
business operations or a material part thereof or make an assignment for the
benefit of creditors; or (iii) apply for, consent to, or acquiesce in the
appointment of a trustee, receiver, or other custodian for it or any of its
property or, in the absence of such application, consent, or acquiescence, a
trustee, receiver, or other custodian is so appointed; or (iv) commence or have
commenced against it any proceeding under any bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution, or liquidation Law of any
jurisdiction.

            (I) MATERIAL ADVERSE CHANGE. Any material adverse change occurs, as
reasonably determined by CoBank, in the Company's financial condition, results
of operation, or ability to perform its obligations hereunder or under any
instrument or document contemplated hereby.

      SECTION 19. REMEDIES. Upon the occurrence and during the continuance of an
Event of Default or any Potential Default, CoBank shall have no obligation to
continue to extend credit to the Company and may discontinue doing so at any
time without prior notice. For all purposes hereof, the term "Potential Default"
means the occurrence of any event which, with the passage of time or the giving
of notice or both would become an Event of Default. In addition, upon the
occurrence and during the continuance of any Event of Default, CoBank may, upon
notice to the Company, terminate any commitment and declare the entire unpaid
principal balance of the loans, all accrued interest thereon, and all other
amounts payable under this agreement, all Supplements, and the other Loan
Documents to be immediately due and payable. Upon such a declaration, the unpaid
principal balance of the loans and all such other amounts shall become
immediately due and payable, without protest, presentment, demand, or further
notice of any kind, all of which are hereby expressly waived by the Company. In
addition, upon such an acceleration:

            (A) ENFORCEMENT. CoBank may proceed to protect, exercise, and
enforce such rights and remedies as may be provided by this agreement, any other
Loan Document or under Law. Each and every one of such rights and remedies shall
be cumulative and may be exercised from time to time, and no failure on the part
of CoBank to exercise, and no delay in exercising, any right or remedy shall
operate as a waiver thereof, and no single or partial exercise of any right or
remedy shall preclude any other or future exercise thereof, or the exercise of
any other right. Without limiting the foregoing, CoBank may hold and/or set off
and apply against the Company's obligations to CoBank any cash collateral held
by CoBank, or any balances held by CoBank for the Company's account (whether or
not such balances are men due).

            (B) APPLICATION OF FUNDS. CoBank may apply all payments received by
it to the Company's obligations to CoBank in such order and manner as CoBank may
elect in its sole discretion.

<PAGE>

LINE OF CREDIT AGREEMENT NO. PRT0989                                   Page 12

      In addition to the rights and remedies set forth above: (i) if the Company
fails to make any payment to CoBank when due, then at CoBank's option in each
instance, such payment shall bear interest from the date due to the date paid at
4% per annum in excess of the rate(s) of interest that would otherwise be in
effect on that loan; and (ii) after the maturity of any loan (whether as a
result of acceleration or otherwise), the unpaid principal balance of such loan
(including without limitation, principal, interest, fees and expenses) shall
automatically bear interest at 4% per annum in excess of the rate(s) of interest
that would otherwise be in effect on that loan. All interest provided for herein
shall be payable on demand and shall be calculated on the basis of a year
consisting of 360 days.

      SECTION 20. BROKEN FUNDING SURCHARGE. Notwithstanding any provision
contained in any Supplement giving the Company the right to repay any loan prior
to the date it would otherwise be due and payable, the Company agrees to provide
three Business Days' prior written notice for any prepayment of a fixed rate
balance and that in the event it repays any fixed rate balance prior to its
scheduled due date or prior to the last day of the fixed rate period applicable
thereto (whether such payment is made voluntarily, as a result of an
acceleration, or otherwise), the Company will pay to CoBank a surcharge in an
amount equal to the greater of: (i) an amount which would result in CoBank being
made whole (on a present value basis) for the actual or imputed funding losses
incurred by CoBank as a result thereof; or (ii) $300.00. Notwithstanding the
foregoing, in the event any fixed rate balance is repaid as a result of the
Company refinancing the loan with another lender or by other means, then in lieu
of the foregoing, the Company shall pay to CoBank a surcharge in an amount
sufficient (on a present value basis) to enable CoBank to maintain the yield it
would have earned during the fixed rate period on the amount repaid. Such
surcharges will be calculated in accordance with methodology established by
CoBank (a copy of which will be made available to the Company upon request).

      SECTION 21. COMPLETE AGREEMENT, AMENDMENTS. This agreement, the Note, and
all other instruments and documents contemplated hereby and thereby, are
intended by the parties to be a complete and final expression of their
agreement. No amendment, modification, or waiver of any provision hereof or
thereof, and no consent to any departure by the Company herefrom or therefrom,
shall be effective unless approved by CoBank and contained in a writing signed
by or on behalf of CoBank, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

      SECTION 22. APPLICABLE LAW. Except to the extent governed by applicable
federal law, this agreement and the Note shall be governed by and construed in
accordance with the laws of the State of Colorado, without reference to choice
of law doctrine.

      SECTION 23. NOTICES. All notices hereunder shall be in writing and shall
be deemed to be duly given upon delivery if personally delivered or sent by
telegram or facsimile transmission, or 3 days after mailing if sent by express,
certified or registered mail, to the parties at the following addresses (or such
other address for a party as shall be specified by like notice):

<PAGE>

LINE OF CREDIT AGREEMENT NO. PRT0989                                   Page 13

If to FCW, as follows:                          If to the Company, as follows:

Farm Credit West, PCA                           Calavo Growers, Inc.
2929 W. Main Street, Suite A                    Attn: Vice President-Finance
Visalia, CA 93291-5700                          P.O. Box 26081
                                                Santa Ana, California 92799-6081
Attention: Mark Littlefield                     Fax No: (949)223-1112
Fax No.: 559-627-4728

If to CoBank, as follows:

For general correspondence purposes:
P.O. Box 5110
Denver, Colorado 80217-5110

For direct delivery purposes, when desired:
5500 South Quebec Street
Greenwood Village, Colorado 80111-1914

Attention: Credit Information Services
Fax No.: (303)-224-6101

      SECTION 24. TAXES AND EXPENSES. To the extent allowed by law, the Company
agrees to pay all reasonable out-of-pocket costs and expenses (including the
fees and expenses of counsel retained by CoBank) incurred by CoBank and any
participants from CoBank in connection with the origination, administration,
collection, and enforcement of this agreement and the other Loan Documents,
including, without limitation, all costs and expenses incurred in perfecting,
maintaining, determining the priority of, and releasing any security for the
Company's obligations to CoBank, and any stamp, intangible, transfer, or like
tax payable in connection with this agreement or any other Loan Document.

      SECTION 25. EFFECTIVENESS AND SEVERABILITY. This agreement shall continue
in effect until: (i) all indebtedness and obligations of the Company under this
agreement, the Note, and all other Loan Documents shall have been paid or
satisfied; and (ii) CoBank has no commitment to extend credit to or for the
account of the Company hereunder. Any provision of this agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
thereof.

      SECTION 26. SUCCESSORS AND ASSIGNS. This agreement, the Note, and the
other Loan Documents shall be binding upon and inure to the benefit of the
Company and CoBank and their respective successors and assigns, except that the
Company may not assign or transfer its rights or obligations under this
agreement, the Note or any other Loan Document without the prior written consent
of CoBank.

<PAGE>

LINE OF CREDIT AGREEMENT NO. PRT0989                                   Page 14

      SECTION 27. PARTICIPATIONS, ETC. From time to time, CoBank may sell to one
or more banks, financial institutions or other lenders a subparticipation in one
or more of the loans or other extensions of credit made pursuant to this
agreement. However, no such subparticipation shall relieve FCW or CoBank of any
commitment made to the Company hereunder. In connection with the foregoing,
CoBank may disclose information concerning the Company and its Subsidiaries to
any subparticipant or prospective subparticipant, provided that such
subparticipant or prospective subparticipant agrees to keep such information
confidential. CoBank agrees that all participation interests held by CoBank and
that are retained for its own account and are not included in a sale of
subparticipation interest shall be entitled to patronage distributions in
accordance with the bylaws of CoBank and its practices and procedures related to
patronage distribution. Accordingly, all interests in the Loans that are
included in a sale of subparticipation interests shall not be entitled to
patronage distributions. A sale of subparticipation interest may include certain
voting rights of the subparticipants regarding the loans hereunder (including
without limitation the administration, servicing and enforcement thereof).
CoBank agrees to give written notification to the Company of any sale of
subparticipation interests.

      IN WITNESS WHEREOF, the parties have caused this agreement to be executed
by their duly authorized officers as of the date shown above.

FARM CREDIT WEST, PCA                    CALAVO  GROWERS, INC.

By: /s/ Mark Littlefield                 By: /s/ Arthur J. Bruno
    ----------------------------------       -----------------------------------
Title: Sr. Vice President                Title: Chief Financial Officer

                                         By: /s/ Scott H. Runge
                                             -----------------------------------
                                         Title: Treasurer

<PAGE>

EXHIBIT A

                                 PROMISSORY NOTE

$12,000,000.00

                                                                January 22, 2004

            FOR VALUE RECEIVED, on the Maturity Date as set forth in that
certain Line of Credit Agreement dated January 22, 2004 or in any amendments
thereto (the "Loan Agreement") the undersigned promises to pay to the order of
Farm Credit West, PCA (the "Payee"), or order, at the place and in the manner
set forth in the Loan Agreement, the principal amount of TWELVE MILLION DOLLARS
($12,000,000.00). The undersigned promises to pay interest on the principal
amount hereof remaining unpaid from time to time from the date hereon until the
date of payment in full, payable as provided in the Loan Agreement.

            This note is given for advances to be made by Payee to the
undersigned from time to time in accordance with the terms and conditions of the
Loan Agreement, all the terms and conditions of which are incorporated herein by
reference. Advances, accrued interest, and payments shall be posted by the Payee
upon an appropriate accounting record, shall be prima facie evidence as to all
such amounts and shall be binding on the undersigned absent manifest error. The
total of such advances may exceed the face amount of this note but the unpaid
principal balance shall not at any time exceed such face amount. Any amount of
principal hereof which is not paid when due, whether at stated maturity, by
acceleration or otherwise, shall bear interest from the date when due until said
principal is paid in full, payable on demand, at a rate per annum set forth in
the Loan Agreement.

            The makers or endorsers hereof hereby waive presentment for payment,
demand, protest, and notice of dishonor and nonpayment of this note, and all
defenses on the ground of delay or of any extension of time for the payment
hereof which may be hereafter given by the holder or holders hereof to them or
either of them or to anyone who has assumed the payment of this note, and it is
specifically agreed that the obligations of said makers or endorsers shall not
be in anyway affected or altered to the prejudice of the holder or holders
hereof by reason of the assumption of payment of the same by any other person or
entity.

            The undersigned hereby promises to pay all costs and expenses of any
rightful holder hereof incurred in collecting the undersigned's obligations
hereunder or in enforcing or attempting to enforce any of such holder's rights
hereunder, including reasonable attorneys' fees and disbursements, whether or
not an action is filed in connection therewith.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF COLORADO.

                                 CALAVO GROWERS,INC.

                                 By: /s/ Arthur J. Bruno
                                     ------------------------------------
                                     Arthur J. Bruno

                                 Title: Chief Financial Officer

                                 By: /s/ Scott H. Runge
                                     ------------------------------------
                                     Scott H. Runge

                                 Title: Treasurer<PAGE>

                                                                   EXHIBIT 10.17

                             BUSINESS LOAN AGREEMENT

         This Agreement dated as of January 30, 2004 is between Bank of America,
N.A. (the "Bank") and Calavo Growers, Inc. (the "Borrower").

1. LINE OF CREDIT AMOUNT AND TERMS

1.1      Line of Credit Amount.

(a)      During the availability period described below, the Bank will provide a
         line of credit to the Borrower. The amount of the line of credit (the
         "Commitment") is Twelve Million Dollars ($12,000,000).

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

(c)      The Borrower agrees not to permit the principal balance outstanding to
         exceed the Commitment. If the Borrower exceeds this limit, the Borrower
         will immediately pay the excess to the Bank upon the Bank's demand.

1.2 Availability Period. The line of credit is available between the date of
this Agreement and April 1, 2006 or such earlier date as the availability may
terminate as provided in this Agreement (the "Expiration Date").

The availability period for this line of credit will be considered renewed if
and only if the Bank has sent to the Borrower a written notice of renewal
effective as of the Expiration Date for the line of credit (the "Renewal
Notice"). If this line of credit is renewed, it will continue to be subject to
all the terms and conditions set forth in this Agreement except as modified by
the Renewal Notice. The Borrower specifically understands and agrees that the
interest rate applicable to this line of credit may be increased upon renewal
and that the new interest rate will apply to the entire outstanding principal
balance of the line of credit. If this line of credit is renewed, the term
"Expiration Date" shall mean the date set forth in the Renewal Notice as the
Expiration Date and the same process for renewal will apply to any subsequent
renewal of this line of credit. A renewal fee may be charged at the Bank's
option. If so, the amount will be specified in the Renewal Notice.

1.3      Repayment Terms.

(a)      The Borrower will pay interest on February 1, 2004 and then monthly
         thereafter until payment in full of any principal outstanding under
         this line of credit.

         Any interest period for an optional interest rate (as described below)
         shall expire no later than the Expiration Date.

(b)      The Borrower will repay in full all principal and any unpaid interest
         or other charges outstanding under this line of credit no later than
         the Expiration Date.

1.4 Interest Rate.

(a)      The interest rate is a rate per year equal to the Bank's Prime Rate.

(b)      The Prime Rate is the rate of interest publicly announced from time to
         time by the Bank as its Prime Rate. The Prime Rate is set by the Bank
         based on various factors, including the Bank's costs and desired
         return, general economic conditions and other factors, and is used as a
         reference point for pricing some loans. The Bank may price loans to its
         customers at, above, or

                                       1
<PAGE>

         below the Prime Rate. Any change in the Prime Rate shall take effect at
         the opening of business on the day specified in the public announcement
         of a change in the Bank's Prime Rate.

1.5 Optional Interest Rates. Instead of the interest rate based on the rate
stated in the paragraph entitled "Interest Rate" above, the Borrower may elect
the optional interest rates listed below for this Commitment during interest
periods agreed to by the Bank and the Borrower. The optional interest rates
shall be subject to the terms and conditions described later in this Agreement.
Any principal amount bearing interest at an optional rate under this Agreement
is referred to as a "Portion." The following optional interest rates are
available:

(a)      The LIBOR Rate plus one (1) percentage point(s).

(b)      Short Term Fixed Rates.

1.6 The Overdraft Limit. The line of credit provided under the Commitment may be
used to pay overdrafts in the Borrower's checking accounts. The total amount of
all unreimbursed overdrafts outstanding at any one time may not exceed Five
Million Dollars ($5,000,000) (the "Overdraft Limit"). This portion of the
Commitment may only be accessed through this overdraft facility. The total
amount of all other credit outstanding at any time may not exceed the
Commitment, minus the Overdraft Limit.

(a)      The Covered Accounts. The checking account (collectively referred to as
         the "Account") which the Borrower may overdraw is 03724-02990.

(b)      The Overdraft Interest Charge. As part of the monthly calculation of
         service charges to be assessed against the Borrower's Account, the Bank
         will include an interest charge calculated on the amount of
         unreimbursed overdrafts outstanding in the Account. The interest will
         be computed on the basis of a 360-day year and the actual number of
         days the overdrafts have been outstanding. The Bank may, in its
         discretion, calculate the amount of overdrafts and the interest rate on
         a daily basis, or, alternatively, use the average monthly amount of
         overdrafts and use an interest rate based on the weighted average
         during the calculation period of the interest rate described below. The
         interest rate will be a rate per year equal to the LIBOR Daily Floating
         Rate plus the Applicable Margin for the LIBOR Rate as defined below.
         The LIBOR Daily Floating Rate is a fluctuating rate of interest equal
         to the average per annum interest rate (rounded upwards to the nearest
         1/100 of one percent) at which U.S. dollar deposits would be offered
         for one month by major banks in the London inter-bank market, as shown
         on Telerate Page 3750 (or any successor page) as determined for each
         banking day at approximately 11:00 a.m. London time two (2) London
         Banking Days prior to the date in question, as adjusted from time to
         time in the Bank's sole discretion for reserve requirements, deposit
         insurance assessment rates and other regulatory costs. If such rate
         does not appear on Telerate Page 3750 (or any successor page), the rate
         will be determined by such alternate method as reasonably selected by
         the Bank. A "London Banking Day" is a day on which the Bank's London
         Banking Center is open for business and dealing in offshore dollars.
         Interest will accrue on any non-banking day at the rate in effect on
         the immediately preceding banking day.

(c)      Other Terms and Conditions.

         (i)      If items are presented against an Account covered by this
                  overdraft facility which, if paid, would exceed the allocated
                  Overdraft Limit for that Account, the Bank will have no
                  obligation to pay those items, but may at its discretion pay
                  any or all of the items.

         (ii)     The Bank may, at its discretion, at any time upon ten (10)
                  days written notice to the Borrower, terminate this overdraft
                  facility and require repayment of all outstanding overdrafts.
                  The Borrower will in any event repay all outstanding
                  overdrafts no later than the Expiration Date.

                                       2
<PAGE>

         (iii)    For the purposes of this Agreement, the amount of unreimbursed
                  overdrafts outstanding on any day will equal the daily net
                  collected balance of the Account on any day when such balance
                  is negative. In calculating the amount of interest accruing
                  under this facility, the daily net collected balance will not
                  include provisional credits for items in the process of
                  collection ("Uncollected Items") as determined under the
                  Bank's normal practices for the Borrower's Account. However,
                  in determining whether the Borrower has exceeded the Overdraft
                  Limit, the Commitment, or any other dollar limits on borrowing
                  established in this Agreement, the Borrower shall be given
                  credit for such Uncollected Items. The negative daily net
                  collected balance may include fees and charges that have been
                  posted to the Borrower's Account, including overdraft interest
                  charges. This may result in compounding of interest.

         (iv)     The Borrower agrees that overdraft interest charges and other
                  fees and charges relating to its Accounts may be directly
                  debited from its Account.

         (v)      The Bank may terminate this overdraft facility if a levy is
                  imposed on any Account covered by this facility.

2. OPTIONAL INTEREST RATES

2.1 Optional Rates. Each optional interest rate is a rate per year. Interest
will be paid on the first day of each month during the interest period. At the
end of any interest period, the interest rate will revert to the rate stated in
the paragraph(s) entitled "Interest Rate" above, unless the Borrower has
designated another optional interest rate for the Portion. No Portion will be
converted to a different interest rate during the applicable interest period.
Upon the occurrence of an event of default under this Agreement, the Bank may
terminate the availability of optional interest rates for interest periods
commencing after the default occurs.

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

(a)      The interest period during which the LIBOR Rate will be in effect will
         be one or two weeks, or one, two, three, four, five, six, seven, eight,
         nine, ten, eleven, or twelve months. The first day of the interest
         period must be a day other than a Saturday or a Sunday on which the
         Bank is open for business in New York and London and dealing in
         offshore dollars (a "LIBOR Banking Day"). The last day of the interest
         period and the actual number of days during the interest period will be
         determined by the Bank using the practices of the London inter-bank
         market.

(b)      Each LIBOR Rate Portion will be for an amount not less than One Hundred
         Thousand Dollars ($100,000).

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

                           London Inter-Bank Offered Rate
              LIBOR Rate = ------------------------------
                             (1.00 - Reserve Percentage)

         Where,

         (i)      "London Inter-Bank Offered Rate" means the average per annum
                  interest rate at which U.S. dollar deposits would be offered
                  for the applicable interest period by major banks in the
                  London inter-bank market, as shown on the Telerate Page 3750
                  (or any successor page) at approximately 11:00 a.m. London
                  time two (2) London Banking Days before the commencement of
                  the interest period. If such rate does not appear on the
                  Telerate Page 3750 (or any successor page), the rate for that
                  interest period will be determined by such

                                       3
<PAGE>

                  alternate method as reasonably selected by the Bank. A "London
                  Banking Day" is a day on which the Bank's London Banking
                  Center is open for business and dealing in offshore dollars.

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

(d)      The Borrower shall irrevocably request a LIBOR Rate Portion no later
         than 12:00 noon California time on the LIBOR Banking Day preceding the
         day on which the London Inter-Bank Offered Rate will be set, as
         specified above. For example, if there are no intervening holidays or
         weekend days in any of the relevant locations, the request must be made
         at least three days before the LIBOR Rate takes effect.

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

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

         (ii)     the LIBOR Rate does not accurately reflect the cost of a LIBOR
                  Rate Portion.

(f)      Each prepayment of a LIBOR Rate Portion, whether voluntary, by reason
         of acceleration or otherwise, will be accompanied by the amount of
         accrued interest on the amount prepaid and a prepayment fee as
         described below. A "prepayment" is a payment of an amount on a date
         earlier than the scheduled payment date for such amount as required by
         this Agreement.

(g)      The prepayment fee shall be in an amount sufficient to compensate the
         Bank for any loss, cost or expense incurred by it as a result of the
         prepayment, including any loss of anticipated profits and any loss or
         expense arising from the liquidation or reemployment of funds obtained
         by it to maintain such Portion or from fees payable to terminate the
         deposits from which such funds were obtained. The Borrower shall also
         pay any customary administrative fees charged by the Bank in connection
         with the foregoing. For purposes of this paragraph, the Bank shall be
         deemed to have funded each Portion by a matching deposit or other
         borrowing in the applicable interbank market, whether or not such
         Portion was in fact so funded.

2.3 Short Term Fixed Rate. The election of Short Term Fixed Rates shall be
subject to the following terms and requirements:

(a)      The "Short Term Fixed Rate" means the fixed interest rate the Bank and
         the Borrower agree will apply during the applicable interest period.

(b)      The interest period during which the Short Term Fixed Rate will be in
         effect will be no shorter than 30 days and no longer than one year.

(c)      Each Short Term Fixed Rate Portion will be for an amount not less than
         One Hundred Thousand Dollars ($100,000).

(d)      Each prepayment of a Short Term Fixed Rate Portion, whether voluntary,
         by reason of acceleration or otherwise, will be accompanied by the
         amount of accrued interest on the amount prepaid, and a prepayment fee
         as described below. A "prepayment" is a payment of an amount on a date
         earlier than the scheduled payment date for such amount as required by
         this Agreement.

                                       4
<PAGE>

(e)      The prepayment fee shall be in an amount sufficient to compensate the
         Bank for any loss, cost or expense incurred by it as a result of the
         prepayment, including any loss of anticipated profits and any loss or
         expense arising from the liquidation or reemployment of funds obtained
         by it to maintain such Portion or from fees payable to terminate the
         deposits from which such funds were obtained. The Borrower shall also
         pay any customary administrative fees charged by the Bank in connection
         with the foregoing. For purposes of this paragraph, the Bank shall be
         deemed to have funded each Portion by a matching deposit or other
         borrowing in the applicable interbank market, whether or not such
         Portion was in fact so funded.

3. FEES AND EXPENSES

3.1 Fees.

(a)      Unused Commitment Fee. The Borrower agrees to pay a fee on any
         difference between the Commitment and the amount of credit it actually
         uses, determined by the average of the daily amount of credit
         outstanding during the specified period. The fee will be calculated at
         0.25% per year if Borrower uses less than or equal to fifty percent
         (50%) of the Commitment, calculated quarterly in arrears. The fee will
         be calculated at 0.15% per year if Borrower uses more than fifty
         percent (50%) of the Commitment, calculated quarterly in arrears.

         This fee is due on the first day of the second month following each
         calendar quarter commencing on March 1, 2004 and continuing until the
         Expiration Date and on the Expiration Date.

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

(c)      Late Fee. To the extent permitted by law, the Borrower agrees to pay a
         late fee in an amount not to exceed four percent (4%) of any payment
         that is more than fifteen (15) days late. The imposition and payment of
         a late fee shall not constitute a waiver of the Bank's rights with
         respect to the default.

3.2 Expenses. The Borrower agrees to immediately repay the Bank for expenses
that include, but are not limited to, filing, recording and search fees,
appraisal fees, title report fees, and documentation fees.

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

4. DISBURSEMENTS, PAYMENTS AND COSTS

4.1 Disbursements and Payments.

(a)      Each payment by the Borrower will be made in immediately available
         funds by direct debit to a deposit account as specified below or by
         mail to the address shown on the Borrower's statement or at one of the
         Bank's banking centers in the United States.

(b)      Each disbursement by the Bank and each payment by the Borrower will be
         evidenced by records kept by the Bank. In addition, the Bank may, at
         its discretion, require the Borrower to sign one or more promissory
         notes.

                                       5
<PAGE>

4.2 Telephone and Telefax Authorization.

(a)      The Bank may honor telephone or telefax instructions for advances or
         repayments given, or purported to be given, by any one of the
         individuals authorized to sign loan agreements on behalf of the
         Borrower, or any other individual designated by any one of such
         authorized signers.

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

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

4.3 Direct Debit.

(a)      The Borrower agrees that interest and principal payments and any fees
         will be deducted automatically on the due date from account number
         03724-02990 owned by Borrower, or such other of the Borrower's accounts
         with the Bank as designated in writing by the Borrower.

(b)      The Borrower will maintain sufficient funds in the account on the dates
         the Bank enters debits authorized by this Agreement. If there are
         insufficient funds in the account on the date the Bank enters any debit
         authorized by this Agreement, the Bank may reverse the debit.

4.4 Banking Days. Unless otherwise provided in this Agreement, a banking day is
a day other than a Saturday, Sunday or other day on which commercial banks are
authorized to close, or are in fact closed, in the state where the Bank's
lending office is located, and, if such day relates to amounts bearing interest
at an offshore rate (if any), means any such day on which dealings in dollar
deposits are conducted among banks in the offshore dollar interbank market. All
payments and disbursements which would be due on a day which is not a banking
day will be due on the next banking day. All payments received on a day which is
not a banking day will be applied to the credit on the next banking day.

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

4.6 Default Rate. Upon the occurrence of any default under this Agreement, all
amounts outstanding under this Agreement, including any interest, fees, or costs
which are not paid when due, will at the option of the Bank bear interest at a
rate which is 2.0 percentage point(s) higher than the rate of interest otherwise
provided under this Agreement. This may result in compounding of interest. This
will not constitute a waiver of any default.

5. CONDITIONS

The Bank must receive the following items, in form and content acceptable to the
Bank, before it is required to extend any credit to the Borrower under this
Agreement:

5.1 Conditions to First Extension of Credit. Before the first extension of
credit:

(a) Authorizations. If the Borrower or any guarantor is anything other than a
natural person, evidence that the execution, delivery and performance by such
Borrower and/or such guarantor of this Agreement and any instrument or agreement
required under this Agreement have been duly authorized.

                                       6
<PAGE>

(b) Governing Documents. If required by the Bank, a copy of the Borrower's
organizational documents.

(c) Payment of Fees. Payment of all accrued and unpaid expenses incurred by the
Bank as required by the paragraph entitled "Reimbursement Costs."

6. REPRESENTATIONS AND WARRANTIES

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

6.1 Formation. If the Borrower is anything other than a natural person, it is
duly formed and existing under the laws of the state where organized.

6.2 Authorization. This Agreement, and any instrument or agreement required
hereunder, are within the Borrower's powers, have been duly authorized, and do
not conflict with any of its organizational papers.

6.3 Enforceable Agreement. This Agreement is a legal, valid and binding
agreement of the Borrower, enforceable against the Borrower in accordance with
its terms, and any instrument or agreement required hereunder, when executed and
delivered, will be similarly legal, valid, binding and enforceable.

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

6.5 No Conflicts. This Agreement does not conflict with any law, agreement, or
obligation by which the Borrower is bound.

6.6 Financial Information. All financial and other information that has been or
will be supplied to the Bank is sufficiently complete to give the Bank accurate
knowledge of the Borrower's (and any guarantor's) financial condition, including
all material contingent liabilities. Since the date of the most recent financial
statement provided to the Bank, there has been no material adverse change in the
business condition (financial or otherwise), operations, properties or prospects
of the Borrower (or any guarantor).

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

6.8 Other Obligations. The Borrower is not in default on any obligation for
borrowed money, any purchase money obligation or any other material lease,
commitment, contract, instrument or obligation, except as have been disclosed in
writing to the Bank.

6.9 Tax Matters. The Borrower has no knowledge of any pending assessments or
adjustments of its income tax for any year and all taxes due have been paid,
except as have been disclosed in writing to the Bank.

6.10 No Event of Default. There is no event which is, or with notice or lapse of
time or both would be, a default under this Agreement.

6.11 Insurance. The Borrower has obtained, and maintained in effect, the
insurance coverage required in the "Covenants" section of this Agreement.

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

                                       7
<PAGE>

7. COVENANTS

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

7.1 Use of Proceeds. To use the proceeds of the Commitment only for general
corporate purposes.

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

(a)      Within 90 days of the fiscal year end, the annual financial statements
         of the Borrower, certified and dated by an authorized financial
         officer. These financial statements must be audited (with an opinion
         satisfactory to the Bank) by a Certified Public Accountant acceptable
         to the Bank. The statements shall be prepared on a consolidating and
         consolidated basis.

(b)      Within 45 days of the period's end (including the last period in each
         fiscal year), quarterly financial statements of the Borrower, certified
         and dated by an authorized financial officer. These financial
         statements may be company-prepared. The statements shall be prepared on
         a consolidated basis.

7.3 Other Debts. Not to have outstanding or incur any direct or contingent
liabilities or capital lease obligations (other than those to the Bank), or
become liable for the liabilities of others, without the Bank's written consent.
This does not prohibit:

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

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

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

(d)      Liabilities, lines of credit and leases in existence on the date of
         this Agreement disclosed in writing to the Bank, including that certain
         Twelve Million Dollar ($12,000,000) line of credit with Cooperative
         Bank, which line of credit shall be on terms no more restrictive than
         the terms of this Agreement.

(e)      Additional debts for the acquisition of assets, to the extent permitted
         elsewhere in this Agreement.

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

(a)      Liens and security interests in favor of the Bank.

(b)      Liens for taxes not yet due.

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

(d)      Additional purchase money security interests in assets acquired after
         the date of this Agreement, if the total principal amount of debts
         secured by such liens does not exceed Five Hundred Thousand Dollars
         ($500,000).

(e)      Liens arising by operation of law and in the ordinary course of the
         Borrower's business securing amounts the Borrower owes to growers of
         agricultural products purchased by the Borrower for resale, processing,
         or use in producing the Borrower's inventory, provided such obligations
         are not past due.

                                       8
<PAGE>

7.5      Maintenance of Assets.

(a)      Not to sell, assign, lease, transfer or otherwise dispose of any part
         of the Borrower's business or the Borrower's assets except in the
         ordinary course of the Borrower's business.

(b)      Not to sell, assign, lease, transfer or otherwise dispose of any assets
         for less than fair market value, or enter into any agreement to do so.

(c)      Not to enter into any sale and leaseback agreement covering any of its
         fixed assets.

(d)      To maintain and preserve all rights, privileges, and franchises the
         Borrower now has.

(e)      To make any repairs, renewals, or replacements to keep the Borrower's
         properties in good working condition.

7.6 Investments. Not to have any existing, or make any new, investments in any
individual or entity, or make any capital contributions or other transfers of
assets to any individual or entity, except for:

(a)      Existing investments disclosed to the Bank in writing.

(b)      Investments in the Borrower's current subsidiaries.

(c)      Investments in any of the following:

         (i)      certificates of deposit;

         (ii)     U.S. treasury bills and other obligations of the federal
                  government; and

         (iii)    readily marketable securities (including commercial paper, but
                  excluding restricted stock and stock subject to the provisions
                  of Rule 144 of the Securities and Exchange Commission).

7.7 Loans. Not to make any loans, advances or other extensions of credit to any
individual or entity, except for:

(a)      Existing extensions of credit disclosed to the Bank in writing.

(b)      Extensions of credit to the Borrower's current subsidiaries.

(c)      Extensions of credit in the nature of accounts receivable or notes
         receivable arising from the sale or lease of goods or services in the
         ordinary course of business to non-affiliated entities.

(d)      Extensions of credit to the Borrower's officers, employees and
         directors under the terms and conditions of the Borrower's Stock
         Purchase Award Plan and Director's Stock Option Plan, as each is in
         effect as of the date of this Agreement.

(e)      Extensions of credit to growers of agricultural products in an
         aggregate amount not to exceed Seven Million Dollars ($7,000,000).

7.8 [Intentionally left blank.]

7.9 [Intentionally left blank.]

7.10 Additional Negative Covenants. Not to, without the Bank's written consent:

                                       9
<PAGE>

(a)      (i) Enter into any consolidation, merger, or other combination, or (ii)
         become a partner in a partnership, a member of a joint venture, or a
         member of a limited liability company where the aggregate amount
         invested exceeds One Million Dollars ($1,000,000).

(b)      Acquire or purchase a business or its assets.

(c)      Engage in any business activities substantially different from the
         Borrower's present business.

(d)      Liquidate or dissolve the Borrower's business.

7.11 Notices to Bank. To promptly notify the Bank in writing of:

(a)      Any lawsuit over One Million Dollars ($1,000,000) against the Borrower
         (or any guarantor).

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

(c)      Any event of default under this Agreement, or any event which, with
         notice or lapse of time or both, would constitute an event of default.

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

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

(f)      Any actual contingent liabilities of the Borrower (or any guarantor),
         and any such contingent liabilities which are reasonably foreseeable,
         in each case in excess of One Million Dollars ($1,000,000).

7.12 Insurance.

(a)      General Business Insurance. To maintain insurance as is usual for the
         business it is in.

(b)      Evidence of Insurance. Upon the request of the Bank, to deliver to the
         Bank a copy of each insurance policy, or, if permitted by the Bank, a
         certificate of insurance listing all insurance in force.

7.13 Compliance with Laws. To comply with the laws (including any fictitious
name statute), regulations, and orders of any government body with authority
over the Borrower's business.

7.14 ERISA Plans. Promptly during each year, to pay and cause any subsidiaries
to pay contributions adequate to meet at least the minimum funding standards
under ERISA with respect to each and every Plan; file each annual report
required to be filed pursuant to ERISA in connection with each Plan for each
year; and notify the Bank within ten (10) days of the occurrence of any
Reportable Event that might constitute grounds for termination of any capital
Plan by the Pension Benefit Guaranty Corporation or for the appointment by the
appropriate United States District Court of a trustee to administer any Plan.
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended
from time to time. Capitalized terms in this paragraph shall have the meanings
defined within ERISA.

7.15 Books and Records. To maintain adequate books and records.

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

                                       10
<PAGE>

for information concerning such properties, books and records.

7.17 Cooperation. To take any action reasonably requested by the Bank to carry
out the intent of this Agreement.

7.18 Working Capital. To maintain on a consolidated basis current assets in
excess of current liabilities of at least Fifteen Million Dollars ($15,000,000),
measured on a quarterly basis.

7.19 Tangible Net Worth. To maintain on a consolidated basis Tangible Net Worth
equal to at least Thirty-Two Million Five Hundred Thousand Dollars
($32,500,000), measured on a quarterly basis.

         "Tangible Net Worth" means the value of total assets (including
         leaseholds and leasehold improvements and reserves against assets but
         excluding goodwill, patents, trademarks, trade names, organization
         expense, unamortized debt discount and expense, capitalized or deferred
         research and development costs, deferred marketing expenses, and other
         like intangibles, and monies due from affiliates, officers, directors,
         employees, shareholders, members or managers) less total liabilities,
         including but not limited to accrued and deferred income taxes, but
         excluding the non-current portion of Subordinated Liabilities.

         "Subordinated Liabilities" means liabilities subordinated to the
         Borrower's obligations to the Bank in a manner acceptable to the Bank
         in its sole discretion.

7.20 Out of Debt Period. To reduce the amount of advances outstanding under this
any and all revolving lines of credit between Borrower and any third party to
not more than Five Million Dollars ($5,000,000) for a period of at least thirty
(30) consecutive days in each Line-Year. "Line-Year" means the period between
the date of this Agreement and January __, 2005, and each subsequent one-year
period (if any).

7.21 EBITDA. To maintain EBITDA of at least Seven Million Five Hundred Thousand
Dollars ($7,500,000). "EBITDA" means net income, less income or plus loss from
discontinued operations and extraordinary items, plus income taxes, plus
interest expense, plus depreciation, depletion, and amortization. This covenant
will be calculated at the end of each reporting period for which the Bank
requires financial statements, using the results of the twelve-month period
ending with that reporting period. The current portion of long-term liabilities
will be measured as of the last day of the calculation period.

7.22 Other Agreements. Borrower shall not enter into any agreement (other than
this Agreement) that contains terms more restrictive than those contained
herein.

8. DEFAULT AND REMEDIES

If any of the following events of default occurs, the Bank may do one or more of
the following: declare the Borrower in default, stop making any additional
credit available to the Borrower, and require the Borrower to repay its entire
debt immediately and without prior notice. In addition, if any event of default
occurs, the Bank shall have all rights, powers and remedies available under any
instruments and agreements required by or executed in connection with this
Agreement, as well as all rights and remedies available at law or in equity. If
an event of default occurs under the paragraph entitled "Bankruptcy," below,
with respect to the Borrower, then the entire debt outstanding under this
Agreement will automatically be due immediately.

8.1 Failure to Pay. The Borrower fails to make a payment under this Agreement
when due.

8.2 Other Bank Agreements. The Borrower (or any Obligor) or any of the
Borrower's related entities or affiliates fails to meet the conditions of, or
fails to perform any obligation under any other agreement the Borrower (or any
Obligor) or any of the Borrower's related entities or affiliates has with the
Bank or any

                                       11
<PAGE>

affiliate of the Bank. For purposes of this Agreement, "Obligor" shall mean any
guarantor, any party pledging collateral to the Bank.

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

8.4 False Information. The Borrower or any Obligor has given the Bank false or
misleading information or representations.

8.5 Bankruptcy. The Borrower, any Obligor, or any general partner of the
Borrower or of any Obligor files a bankruptcy petition, a bankruptcy petition is
filed against any of the foregoing parties, or the Borrower, any Obligor, or any
general partner of the Borrower or of any Obligor makes a general assignment for
the benefit of creditors.

8.6 Receivers. A receiver or similar official is appointed for a substantial
portion of the Borrower's or any Obligor's business, or the business is
terminated, or, if any Obligor is anything other than a natural person, such
Obligor is liquidated or dissolved.

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

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

8.9 Material Adverse Change. A material adverse change occurs, or is reasonably
likely to occur, in the Borrower's (or any Obligor's) business condition
(financial or otherwise), operations, properties or prospects, or ability to
repay the credit.

8.10 Government Action. Any government authority takes action that the Bank
believes materially adversely affects the Borrower's or any Obligor's financial
condition or ability to repay.

8.11 Default under Related Documents. Any default occurs under any guaranty,
subordination agreement, security agreement, deed of trust, mortgage, or other
document required by or delivered in connection with this Agreement or any such
document is no longer in effect, or any guarantor purports to revoke or disavow
the guaranty.

8.12 ERISA Plans. Any one or more of the following events occurs with respect to
a Plan of the Borrower subject to Title IV of ERISA, provided such event or
events could reasonably be expected, in the judgment of the Bank, to subject the
Borrower to any tax, penalty or liability (or any combination of the foregoing)
which, in the aggregate, could have a material adverse effect on the financial
condition of the Borrower:

(a)      A reportable event shall occur under Section 4043(c) of ERISA with
         respect to a Plan.

(b)      Any Plan termination (or commencement of proceedings to terminate a
         Plan) or the full or partial withdrawal from a Plan by the Borrower or
         any ERISA Affiliate.

8.13 Other Breach Under Agreement. The Borrower fails to meet the conditions of,
or fails to perform any obligation under, any term of this Agreement not
specifically referred to in this Article. This includes any failure or
anticipated failure by the Borrower to comply with any financial covenants set
forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is

                                       12
<PAGE>

otherwise known to the Borrower or the Bank.

8.14 Breach Under Other Agreements. The Borrower fails to meet the conditions
of, or fails to perform any obligation under, any terms of any agreement between
the Borrower and any third party.

9. ENFORCING THIS AGREEMENT; MISCELLANEOUS

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

9.2 California Law. This Agreement is governed by California law.

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

9.4 Arbitration and Waiver of Jury Trial.

(a)      This paragraph concerns the resolution of any controversies or claims
         between the parties, whether arising in contract, tort or by statute,
         including but not limited to controversies or claims that arise out of
         or relate to: (i) this agreement (including any renewals, extensions or
         modifications); or (ii) any document related to this agreement
         (collectively a "Claim"). For the purposes of this arbitration
         provision only, the term "parties" shall include any parent
         corporation, subsidiary or affiliate of the Bank involved in the
         servicing, management or administration of any obligation described or
         evidenced by this agreement.

(b)      At the request of any party to this agreement, any Claim shall be
         resolved by binding arbitration in accordance with the Federal
         Arbitration Act (Title 9, U.S. Code) (the "Act"). The Act will apply
         even though this agreement provides that it is governed by the law of a
         specified state.

(c)      Arbitration proceedings will be determined in accordance with the Act,
         the applicable rules and procedures for the arbitration of disputes of
         JAMS or any successor thereof ("JAMS"), and the terms of this
         paragraph. In the event of any inconsistency, the terms of this
         paragraph shall control.

(d)      The arbitration shall be administered by JAMS and conducted, unless
         otherwise required by law, in any U.S. state where real or tangible
         personal property collateral for this credit is located or if there is
         no such collateral, in the state specified in the governing law section
         of this agreement. All Claims shall be determined by one arbitrator;
         however, if Claims exceed Five Million Dollars ($5,000,000), upon the
         request of any party, the Claims shall be decided by three arbitrators.
         All arbitration hearings shall commence within ninety (90) days of the
         demand for arbitration and close within ninety (90) days of
         commencement and the award of the arbitrator(s) shall be issued within
         thirty (30) days of the close of the hearing. However, the
         arbitrator(s), upon a showing of good cause, may extend the
         commencement of the hearing for up to an additional sixty (60) days.
         The arbitrator(s) shall provide a concise written statement of reasons
         for the award. The arbitration award may be submitted to any court
         having jurisdiction to be confirmed and enforced.

(e)      The arbitrator(s) will have the authority to decide whether any Claim
         is barred by the statute of limitations and, if so, to dismiss the
         arbitration on that basis. For purposes of the application of the
         statute of limitations, the service on JAMS under applicable JAMS rules
         of a notice of Claim is the equivalent of the filing of a lawsuit. Any
         dispute concerning this arbitration provision or whether a Claim is
         arbitrable shall be determined by the arbitrator(s). The arbitrator(s)
         shall have the power

                                       13
<PAGE>

         to award legal fees pursuant to the terms of this agreement.

(f)      This paragraph does not limit the right of any party to: (i) exercise
         self-help remedies, such as but not limited to, setoff; (ii) initiate
         judicial or non-judicial foreclosure against any real or personal
         property collateral; (iii) exercise any judicial or power of sale
         rights, or (iv) act in a court of law to obtain an interim remedy, such
         as but not limited to, injunctive relief, writ of possession or
         appointment of a receiver, or additional or supplementary remedies.

(g)      The procedure described above will not apply if the Claim, at the time
         of the proposed submission to arbitration, arises from or relates to an
         obligation to the Bank secured by real property. In this case, all of
         the parties to this agreement must consent to submission of the Claim
         to arbitration. If both parties do not consent to arbitration, the
         Claim will be resolved as follows: The parties will designate a referee
         (or a panel of referees) selected under the auspices of JAMS in the
         same manner as arbitrators are selected in JAMS administered
         proceedings. The designated referee(s) will be appointed by a court as
         provided in California Code of Civil Procedure Section 638 and the
         following related sections. The referee (or presiding referee of the
         panel) will be an active attorney or a retired judge. The award that
         results from the decision of the referee(s) will be entered as a
         judgment in the court that appointed the referee, in accordance with
         the provisions of California Code of Civil Procedure Sections 644 and
         645.

(h)      The filing of a court action is not intended to constitute a waiver of
         the right of any party, including the suing party, thereafter to
         require submittal of the Claim to arbitration.

(i)      By agreeing to binding arbitration, the parties irrevocably and
         voluntarily waive any right they may have to a trial by jury in respect
         of any Claim. Furthermore, without intending in any way to limit this
         agreement to arbitrate, to the extent any Claim is not arbitrated, the
         parties irrevocably and voluntarily waive any right they may have to a
         trial by jury in respect of such Claim. This provision is a material
         inducement for the parties entering into this agreement.

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

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

9.7 One Agreement. This Agreement and any related security or other agreements
required by this Agreement, collectively:

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

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

(c)      are intended by the Bank and the Borrower as the final, complete and
         exclusive statement of

                                       14
<PAGE>

      the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements
required by this Agreement, this Agreement will prevail. Any reference in any
related document to a "promissory note" or a "note" executed by the Borrower and
dated as of the date of this Agreement shall be deemed to refer to this
Agreement, as now in effect or as hereafter amended, renewed, or restated.

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

9.9 Notices. Unless otherwise provided in this Agreement or in another agreement
between the Bank and the Borrower, all notices required under this Agreement
shall be personally delivered or sent by first class mail, postage prepaid, or
by overnight courier, to the addresses on the signature page of this Agreement,
or sent by facsimile to the fax numbers listed on the signature page, or to such
other addresses as the Bank and the Borrower may specify from time to time in
writing. Notices and other communications shall be effective (i) if mailed, upon
the earlier of receipt or five (5) days after deposit in the U.S. mail, first
class, postage prepaid, (ii) if telecopied, when transmitted, or (iii) if
hand-delivered, by courier or otherwise (including telegram, lettergram or
mailgram), when delivered.

9.10 Headings. Article and paragraph headings are for reference only and shall
not affect the interpretation or meaning of any provisions of this Agreement.

9.11 Counterparts. This Agreement may be executed in as many counterparts as
necessary or convenient, and by the different parties on separate counterparts
each of which, when so executed, shall be deemed an original but all such
counterparts shall constitute but one and the same agreement.

                                       15
<PAGE>

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

Bank of America, N.A.                          Calavo Growers, Inc.

By /s/ Robert L. Munn, Jr.                     By /s/ Arthur J. Bruno
   ------------------------------------------     ---------------------------
   Robert L. Munn, Jr., Senior Vice President  Typed Name Arthur J. Bruno
                                               Title Chief Financial Officer

                                               Typed Name Arthur J. Bruno
                                               Title Chief Financial Officer

Address where notices to                       Address where notices to
the Bank are to be sent:                       the Borrower are to be sent:
555 Capitol Mall, Suite 150                    2530 Red Hill Avenue
Sacramento, CA  95814                          Santa Ana, CA  92705
Facsimile:  916.321.4632                       Telephone:_______________________

                                               Facsimile:_______________________

                                               Borrower's place of business (or
                                               chief executive office, if more
                                               than one place of business), if
                                               different from address listed
                                               above:
                                               _________________________________
                                               _________________________________

                                       16

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