Document:

exhibit10_1

    
      

    

    Back to Form 8-K

     

    Exhibit
      10.1

     

    

    APPENDIX
      X

    

    

    
      	
              Agency
                Code: 12000

            	
              Contract
                No.: C-014386 

            
	
              Period:
                October 1,1997 - December 31, 2006

            	
              Funding
                Amount for Period: No
                Change

            

    

    

    This
      is
      an AGREEMENT between THE STATE OF NEW YORK, acting by and through the
Department
      of Health,
      having
      its principal office at Corning
      Tower, Empire State Plaza, Albany, NY.
      (hereinafter referred to as the STATE), and WellCare
      of New York, Inc.
      hereinafter referred to as the CONTRACTOR), for modification of Contract Number
      C-014386 as reflected in the attached revisions to Appendix A-2.

    All
      other
      provisions of said AGREEMENT shall remain in fall force and effect.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this AGREEMENT as of the
      dates
      appearing under their signatures.

    

    
      	
              CONTRACTOR
                SIGNATURE

            	
              STATE
                AGENCY SIGNATURE

            
	
              By:
                /s/
                Todd Farha 

            	
              By:
                /s/
                Judith Arnold

            
	
              Todd
                S. Farha

              Printed
                Name

            	
              Judith
                Arnold

              Printed
                Name

            
	
              Title:
                President and CEO

            	
              Title:
                Deputy Commissioner

              Division
                of Planning, Policy & Resource Development

            
	
              Date:
                4/25/06

            	
              Date:
                4/28/06

            
	 	
               

              State
                Agency Certification:

              "In
                addition to the acceptance of this contract, I also certify that
                original
                copies of this signature page will be attached to all other exact
                copies
                of this contract."

            

    

    

    

    STATE
      OF
      FLORIDA

    

    COUNTY
      OF
      HILLSBOROUGH

    

    On
      the 25
      day of April 2006, before me personally appeared Todd
      S. Farha
      to me
      known, who being by me duly sworn, did depose and say that he/she
      resides at Tampa,
      Florida that
      he/she
      is
      the President
      and CEO of
      the
WellCare
      of New York, Inc.,
      the
      corporation described herein which executed the foregoing instrument and that
      he/she
      signed his/her
      name
      thereto by order of the board of directors of said corporation.

    

    

    (Notary)
      /s/
      Rebecca Neal

    

    

    
      	
              STATE
                COMPTROLLER SIGNATURE

            	
              Title

            
	 	
              Date

            

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    APPENDIX
      A-2

    PROGRAM
      SPECIFIC CLAUSES

    

    Section
      N
      is added as follows:

    

    III.
      CONTRACTOR'S
      RESPONSIBILITES 

     

    N.
      Marketing/Facilitated Enrollment Integrity

     

    The
      CONTRACTOR shall institute policies and procedures to prevent fraud and abuse
      by
      applicants and marketing/facilitated enrollment staff and take corrective action
      in a timely fashion against employees engaged in fraud and abuse. The CONTRACTOR
      shall implement the following:

     

    1.
      Quality Assurance

     

    The
      CONTRACTOR shall review all applications for Medicaid, Family Health Plus and
      Child Health Plus A and B for completeness and logic. This includes those taken
      by a health plan marketing representatives/facilitators, those submitted by
      outside facilitators, and those mailed in by applicants. Specifically, the
      CONTRACTOR'S quality assurance reviewers must confirm that:

     

    •
All
      sections of the application are complete and the application is
      signed.

     

    •
The
      appropriate documents are included with the application.

     

    •
The
      signature on the application appears to match the signature on any supporting
      documentation, if applicable. The applicant signature must not appear to match
      the signature of the marketer/facilitator in the "For Office Use Only" section
      of the application.

     

    •
No
      white out was used on any documents and that information pertinent to
      eligibility was not changed in any way without being initialed by the applicant.
      If pertinent information has been changed without being initialed by the
      applicant, the CONTRACTOR shall verify the change with the applicant prior
      to
      enrollment. The CONTRACTOR may change and initial an applicant-initiated change
      to the application provided they send the changed, initialed page to the
      applicant and can document having done so. This requirement does not apply
      to
      applications received in the mail directly from the member.

     

    •
For
      CHPlus B applicants listed as undocumented immigrants, the CONTRACTOR must
      review the application and supporting documentation for a Social Security
      Number. If a Social Security Number for the applying child is found, the
      CONTRACTOR shall verify the undocumented status with the applicant. If a Social
      Security Number is listed, but the family confirms that the child is
      undocumented, the CONTRACTOR may accept the family's word and note it on the
      application. The CONTRACTOR shall refer any such case to the STATE for review
      of
      the Social Security Number.

     

    •
The
      individuals listed in Section B (Household Information) are consistent with
      those listed in Section E (Household Income) to be certain that income was
      not
      overlooked. The CONTRACTOR must include an explanation on the application
      (Section E) if a parent or caretaker relative listed in Section B does not
      have
      income listed in Section E. This requirement does not apply to applications
      received in the mail directly from the member.

     

    •
For
      all
      applications, including child only applications, the CONTRACTOR shall check
      that
      the household income is adequate to support the monthly housing payment listed
      on the application. The question on monthly housing payments is now required
      for
      all applicants. The CONTRACTOR must, prior to processing applications that
      indicate the monthly housing payment is more than 50 percent of the total
      monthly income, further review the application to determine how the household
      is
      meeting its basic financial needs. This includes contacting the family for
      an
      explanation. The CONTRACTOR must include an explanation on a comment sheet
      included with the application as to how the household is meeting its financial
      obligations.

     

    •
For
      single parent households, the CONTRACTOR shall ensure that child support
      payments are listed, or if not, that there is a notation in the unearned income
      part of Section E that the custodial parent does not receive child support.
      This
      requirement does not apply to applications received in the mail directly from
      the member.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      any
      item above is incomplete or suspect, the CONTRACTOR shall resolve the issue
      as
      described above prior to forwarding the application for eligibility
      determination within the contractor's
      plan,
      another health plan or to an LDSS. If the application is signed, but the
      applicant appears ineligible for any program, it must be forwarded to the
      appropriate eligibility determining entity batched with the ineligible
      applications.

     

    For
      applications received from other facilitated enrollment organizations (e.g.,
      another plan, provider, or community-based organization), the quality assurance
      review described above is the responsibility of the entity that assisted in
      completing the application. In these cases, where the CONTRACTOR receives an
      application from an entity that acted as a facilitator on behalf of a family,
      the CONTRACTOR shall review the application for logic and completeness according
      to the criteria above. However, any applications requiring verification with
      the
      family or an employer shall be returned to the originating facilitated
      enrollment entity as an incomplete application.

     

    The
      CONTRACTOR shall attach to the application a quality assurance check list
      developed by the STATE and signed by the CONTRACTOR as an attestation of
      completing a quality assurance review process. The checklist shall be included
      with all applications submitted to the LDSS or other health plans. The
      CONTRACTOR shall maintain a copy of the checklist for their files. For CHPlus
      B
      enrollees, the check list should be included in the file which will be subject
      to review at audit. Alternatively, for CHPlus B applications, the CONTRACTOR
      may
      utilize its own electronic quality assurance checklist that shall be available
      for STATE review during an audit.

     

    2.
      Targeted Verification

     

    The
      CONTRACTOR shall verify the information taken by their marketers/facilitators
      with the family or employer (if applicable), using a sample of applications,
      which include the following four categories:

     

    •
      Applications with non-aipplying children or adults (if applicable) that impact
      eligibility.

     

    •
      Applications with a self-declaration of income.

     

    •
      Applications with a declaration of no income/letter of support.

     

    •
      Applications with employer letters as income documentation. The income
      information in these applications must be verified with the
      employer.

     

    CONTRACTORS
      that do not take applications from applicants other than through the mail shall
      not be required to conduct verification phone calls provided such applications
      do not contain a high volume of the above four categories as determined by
      the
      STATE. The STATE will conduct special audits of the applications taken by these
      plans through the mail to determine whether additional verification is
      required.

     

    The
      CONTRACTOR shall conduct verification phone calls on a stratified sample of
      applications to confirm the information provided by the applicant prior to
      its
      being submitted to the LDSS, another

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    health
      plan, or enrolled in CHPlus B. The CONTRACTOR may develop its own process for
      conducting the verification phone calls. The sample may be drawn monthly or
      quarterly. For large plans (more than 300 applications completed by facilitators
      per month) the sample shall be at least 10 percent of all applications in the
      period (month or quarter). Smaller plans (less than 300 per month) will need
      to
      verify 30 applications in these categories, collectively, per period. The
      CONTRACTOR is not required to track applications by the four categories above.
      That is one option for drawing the sample. Another option is to take a random
      sample of all applications at a percent believed to be high enough that the
      sample captures applications from each of the four categories above. The
      CONTRACTOR'S methodology for completing the verification phone calls shall
      be
      approved by the STATE prior to implementation and must be based on a projected
      number of applications to be received within each category.

     

    The
      CONTRACTOR shall over sample in the categories to be verified to permit
      replacement of those the plan is unable to reach. The CONTRACTOR may drop and
      replace applicants they are unable to verify due to an inability to reach the
      family after three attempts. There is no limit on the number that can be
      replaced as long as the final sample meets the number agreed upon in the
      CONTRACTOR'S plan approved by the STATE that shall be submitted pursuant to
      this
      agreement. The CONTRACTOR is required to provide information to the STATE on
      the
      dropped cases including the number dropped in a period, the reasons for
      replacement (e.g., unable to contact, refused to cooperate). The CONTRACTOR
      shall make at least three attempts to contact the family at different times
      of
      the day (e.g., morning, afternoon, evening) prior to dropping the case. The
      replacement case shall fall within the same category as the sample case. For
      example, if the dropped case includes non-applying people affecting eligibility,
      the replacement case shall include non-applying people.

     

    Applications
      must be verified by the CONTRACTOR on a prospective basis, however, the
      CONTRACTOR is prohibited from delaying enrollment in order to implement such
      verification. The CONTRACTOR shall determine the sample and conduct the calls
      on
      an ongoing basis so as not to delay enrollment. The CONTRACTOR shall develop
      a
      methodology to conduct verification, based on the expected number of
      applications in each category.

     

    If
      the
      applicant concurs with all! the information on the application, the CONTRACTOR
      is not required to take additional steps to verify the information. The
      CONTRACTOR must still complete the checklist.

     

    If
      the
      CONTRACTOR, through a verification phone call, finds that the application
      includes inaccurate information or misrepresentation of the applicant's
      circumstances, the CONTRACTOR must make best efforts to determine if the
      inaccuracy was due to actions of the marketer/facilitator. The CONTRACTOR must
      investigate if the marketer/facilitator acted with the intent to falsify the
      application. The CONTRACTOR must not enroll the applicant if the new information
      renders them ineligible.

     

    If
      the
      CONTRACTOR finds that the marketer/facilitator's action did result in false
      information on the application, the CONTRACTOR shall remove the employee as
      a
      facilitator immediately and follow the CONTRACTOR'S process for employee
      disciplinary action. In addition, the CONTRACTOR shall review one month of
      prior
      applications taken by that marketer/facilitator. If evidence of fraud is found
      on any one of those applications, the CONTRACTOR shall review an additional
      two
      months of prior applications taken by the marketer/facilitator.

     

    If
      the
      intent is unclear or it is determined the marketer/facilitator made a mistake,
      the CONTRACTOR shall re-train the employee immediately. The CONTRACTOR shall
      review all subsequent applications submitted by the marketer/facilitator for
      the
      next month to ensure compliance. If continued mistakes are found on those
      applications, the CONTRACTOR shall remove the employee as a facilitator
      immediately and follow the CONTRACTOR'S employee disciplinary action procedures.
      The review of individual marketer/facilitator applications shall encompass
      all
      applications for the period and does not need to be sorted into the four
      categories above.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Verification
      of a specific facilitator's applications cannot substitute for the CONTRACTOR'S
      sample review required by this section of the AGREEMENT. The CONTRACTOR must
      make the appropriate adjustments to claims for CHPlus B applications found
      to be
      ineligible and must report their findings to the STATE. If CHPlus A, Medicaid,
      or FHPlus applicants appear ineligible for those programs, the CONTRACTOR shall
      refer those cases to the appropriate LDSS for review and action.

     

    The
      CONTRACTOR shall protect applicants who have been subjected to facilitator
      fraud. For those applications that are verified prior to enrollment the
      CONTRACTOR shall:

     

    •
Enroll
      applicants or forward to the LDSS those applications in which the information
      is
      verified by the applicant.

     

    •
Enroll
      applicants or forward with corrections to the LDSS those applications in which
      information was omitted by the facilitator, but the individual is still
      eligible. The CONTRACTOR may obtain the corrected information over the phone,
      initial the application, and send a copy of the updated information to the
      applicant.

     

    •
Forward
      all signed Medicaid applications to LDSS batched according to whether applicants
      appear eligible or ineligible.

     

    For
      cases
      in which the CONTRACTOR retroactively reviewed the applications of a facilitator
      found to have committed fraud, the CONTRACTOR shall:

     

    •
Do
      nothing with enrollees who confirm the information on the
      application.

     

    •
Inform
      the LDSS of any Medicaid enrollees who may not be eligible based on the
      retrospective review.

     

    •
Allow
      CHPlus B enrollees to reapply if it appears that they may still be eligible
      for
      coverage. Coverage for a CHPlus B enrollee may be continued for two months
      while
      the new application is completed and processed. During this time any CHPlus
      B
      applicant found to be eligible in a higher family contribution category will
      be
      permitted to remain enrolled provided they remit the appropriate family
      contribution. A new code will be added to the KIDS system to permit the
      CONTRACTOR to track these children.

     

    •
Forward
      all new CHPlus A, Medicaid, and FHPlus applications to the LDSS with an
      explanation of the results of the verification.

     

    If
      during
      the course of the verification process, the CONTRACTOR identifies cases of
      fraud
      committed by applicants and/or enrollees, those cases, with supporting evidence,
      shall be submitted to the STATE.

     

    3.
      Field Monitoring

     

    The
      CONTRACTOR shall conduct field monitoring of their marketers/facilitators,
      including announced and unannounced observed interviews between
      marketers/facilitators and applicants. If the CONTRACTOR does not have field
      marketers, it shall develop a process for observing the actions of their
      marketers when assisting applicants (e.g., over the telephone). This process
      must be reviewed and approved by the STATE.

     

    The
      CONTRACTOR shall conduct secret shopping of their marketers/facilitators to
      ensure that marketers/facilitators are following the rules and do not coach
      or
      condone applicants to falsify information. The CONTRACTOR may use its employees
      as secret shoppers or may contract with another entity for such services. If
      all
      application assistance by the CONTRACTOR is provided over the
      telephone, the CONTRACTOR may meet the secret shopping requirement by recording
      telephone conversations to ensure the accuracy of the information
      provided.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      CONTRACTOR must immediately remove from facilitated enrollment activities any
      marketing representative or facilitator found to be coaching or condoning
      applicants to falsify information. The CONTRACTOR must review all applications
      of any employee found to be engaged in fraud for the prior three months, make
      the appropriate adjustments to claims for applicants found to be ineligible,
      and
      report such findings to the STATE and the LDSS, if applicable.

     

    The
      CONTRACTOR shall submit its secret shopping plan to the STATE for approval
      prior
      to implementation.

     

    4.
      Training

     

    All
      facilitated enrollment staff hired by the CONTRACTOR after the date of this
      amendment must attend the STATE sponsored training. If STATE training is not
      available at that specific time, new employees may be trained by the CONTRACTOR
      using the training materials developed by the STATE. New employees may begin
      facilitated enrollment activities only after they are trained by the CONTRACTOR
      or the STATE. Those who begin facilitated enrollment activities following
      training by the CONTRACTOR shall attend the next scheduled STATE training.
      The
      CONTRACTOR shall continue to provide semi-annual refresher training.
      Additionally, the CONTRACTOR'S facilitated enrollment staff must attend any
      mandatory LDSS "Integrity Training" programs. The CONTRACTOR'S training must
      include:

     

    •
      Classroom training

    •
Field
      training

    •
      Refresher training

    •
Field
      monitoring

    •
      Probationary period for new marketers/enrollers

    •
      Facilitator exam

     

    The
      CONTRACTOR shall require all marketers/facilitators to sign an attestation
      that
      they attended training and that they fully understand the rules before being
      permitted to provide application assistance. This applies to new employees
      as
      well as marketers/facilitators who have been taking applications prior to the
      effective date of this amendment. This attestation shall include rules about
      program integrity (e.g., the facilitator knows all income must be reported
      including any off the books income). The CONTRACTOR shall retain a copy of
      this
      form in the employee's employment records. The CONTRACTOR'S attestation form
      shall be approved by the STATE.

     

    5.
      Reports

     

    The
      CONTRACTOR must submit quarterly reports on the results of these monitoring
      activities. The report is due 30 days after the end of the quarter beginning
      immediately after the STATE has approved the field monitoring programs.
      Thereafter, each quarterly report shall be due within 30 days following the
      end
      of the quarter. The reports shall include:

     

    •
The
      outcome of the quality assurance activities (e.g., number of applications
      requiring further review, number of applicants found ineligible upon further
      review, improper marketing/facilitated enrollment activities).

     

    •
The
      number of applications in each of the four categories to be verified and the
      outcome of the verification phone calls (i.e., those found eligible, those
      that
      appear ineligible based on current program rules, and those found eligible
      in a
      different subsidy category).

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    •
The
      number of observed interviews and/or secret shopping encounters and the results
      of those encounters.

     

    •
The
      number of facilitated enrollment employees terminated for fraud during the
      period and the reason for each termination. This report must also include the
      name and last known address of each terminated employee.

     

    •
The
      names and identification numbers of the enrollees that were identified as
      problematic as a result of reviewing applications taken by a terminated
      employee. Information shall include the name of the program the enrollee is
      in,
      the enrollee's county of residence and the effective date of enrollment.
      .

     

    This
      report will be added to the current list of reports, via certified letter to
      the
      CONTRACTOR'S Chief Executive Officer, and subject to the 2 percent penalty
      for
      late reports.

     

    6.
      Effective Date

     

    This
      contract amendment shall be effective immediately. The CONTRACTOR has 30 days
      from the date of this amendment to submit a plan to the STATE which outlines
      how
      they will meet the requirements of this section and the timeframe for
      implementation. Failure to submit a plan in the required timeframe shall result
      in the CONTRACTOR'S suspension of facilitated enrollment activities for all
      programs. The CONTRACTOR shall be in full compliance no later than 90 days
      after
      the CONTRACTOR'S program has been approved by the STATE.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Quality
      Assurance Checklist 

    This
      checklist must be completed and signed by Quality Assurance Staffer the
      Facilitator Supervisor.

     

    
      	 ̈  	
              All
                required sections of the application are
                complete

            

    

     

    
      	 ̈  	
              All
                required documents are included with the application
                

            

    

     

    
      	 ̈  	
              Signature
                match review completed

            

    

     

    
      	 ̈  	
              Information
                pertinent to eligibility is not altered without applicant initials
                or
                facilitator initials and notice to the applicant, as
                necessary

            

    

     

    Internal
      consistency checks completed:

     

    
      	 ̈  	
              Household
                Composition/Reported Income review and verification
                

            

    

     

    
      	 ̈  	
              Housing
                expenses review and verification 

            

    

     

    
      	 ̈  	
              Child
                support income review and verification

            

    

     

    
      	 ̈  	
              Undocumented
                immigrant review

            

    

     

     

    
      	
              Signature
                of Reviewer: ______________________________________

            	 
	
              Print
                Name: ______________________________________________

            	 
	
              FE
                Organization:___________________________________________

            	 
	
              Date:
                ___________________________________________________EX-10.1

Exhibit 10.1

EXECUTION COPY

WAIVER LETTER NO. 1

Dated as of September 30, 2006

	 	 	To the banks, financial institutions	 

and other institutional lenders

(collectively, the “Lenders”)

parties to the Credit Agreement

referred to below and to Wachovia Bank,
National Association, as collateral
agent and administrative agent (the
“Agent”) for the Lenders

Ladies and Gentlemen:

We refer to the Credit Agreement dated as of June 28, 2005, as amended by Amendment No. 1
thereto dated as of November 10, 2005, Amendment No. 2 dated as of February 9, 2006 and Amendment
No. 3 dated as of June 6, 2006 (such Credit Agreement, as so amended, the “Credit
Agreement”; capitalized terms not otherwise defined in this Amendment being used with the same
meanings as specified in the Credit Agreement), among CHIQUITA BRANDS L.L.C., a Delaware limited
liability company (the “Borrower”), CHIQUITA BRANDS INTERNATIONAL, INC., a New Jersey
corporation (“Holdings”), the Lenders and the Agent. Capitalized terms not otherwise
defined in this Waiver Letter and Amendment have the same meanings as specified in the Credit
Agreement.

As a result of recent events affecting our business, we believe that we may have failed to
comply with one or more of the financial covenants (collectively, the “Financial
Covenants”) set forth in Sections 5.03(a)-(c) of the Credit Agreement for the period ending
September 30, 2006. We anticipate completion of our financial statements for such period on or
before November 3, 2006, and at that time will be in a position to determine the extent of any such
non-compliance and to evaluate the impact of such events on our business going forward. On the
basis of such evaluation, we also expect that we will be requesting amendments to the Credit
Agreement on or before December 15, 2006 (the “Waiver Termination Date”).

SECTION 1. Waiver. In light of the foregoing, we hereby request that you waive,
subject to the provisions hereof, and solely for the period commencing on September 30, 2006
through the Waiver Termination Date (the “Waiver Period”), the provisions of Sections
5.03(a)-(c) of the Credit Agreement for the period ending on September 30, 2006.

The provisions of the waiver described in the immediately preceding paragraph shall
automatically terminate on the Waiver Termination Date, and, if the Borrower shall have failed to
be in compliance with the provisions of Sections 5.03(a)-(c) of the Credit Agreement for the period
ending on September 30, 2006, and such non-compliance is not otherwise waived or remedied, then
without any further action by the Agent and the Lenders, an Event of Default under Section 6.01(b)
shall be deemed to have occurred on and as of the Waiver Termination Date and the Agent and the
Lenders shall have all of the rights and remedies afforded to them under the Loan Documents with
respect to any such Event of Default as though no waiver had been granted by them hereunder.

SECTION 2. Other Agreements. As a condition to the waiver set forth herein, the
Borrower agrees that, during the Waiver Period:

(a) the Borrower shall not make any Distributions other than (i) Distributions to
CBII in respect of CBII Overhead Expenses to the extent permitted by Section
5.02(f)(ii)(x) of the Credit Agreement (which, for the avoidance of doubt, shall not
include Distributions for the payment of any amount in respect of any Indebtedness) and
(ii) Distributions to pay interest as and when due on the Senior Notes (7.5%) and the
Senior Notes (8.875%);

(b) neither the Borrower nor any other Borrower Entity shall acquire all or
substantially all of the assets or equity of any other Person or any identifiable
business unit, division or operations of any other Person, provided that this Section
2(b) shall not apply to acquisitions in an aggregate amount not to exceed $3,000,000;

(c) the Borrower and all other Borrower Entities, on a combined basis, shall not
incur Capital Expenditures in excess of $35 million in the aggregate

(d) the Borrower Entities shall not create, incur, assume or permit to exist any
Indebtedness (including, without limitation, Indebtedness from additional Borrowings
under the Credit Agreement), other than (i) Indebtedness existing on September 30, 2006,
(ii) Revolving Loan Borrowings and Letters of Credit under the Revolving Loan Facility in
the ordinary course of business consistent with past practices (including, without
limitation, Letters of Credit issued in connection with any judgments, performance bonds,
appeal bonds and other similar instruments that may arise or be issued during the Waiver
Period), (iii) Indebtedness owing to any Borrower Entity or any Subsidiary of any
Borrower Entity incurred in the ordinary course of business consistent with past
practices, (iv) obligations as lessee under operating leases entered into in the ordinary
course of business consistent with past practices, and (v) obligations in respect of
deferred purchase price of property or services or under conditional sale or other title
retention agreements related to a portion of the Capital Expenditures contemplated in
clause (c) above; and

(e) the Borrower shall not be entitled to request or receive any Revolving Loan
Borrowings or Letters of Credit (and no Revolving Loan Borrowings shall be made or
Letters of Credit issued) except to the extent described in clause (d)(ii) above.

Any failure by the Borrower to comply with the requirements of this Section 2 during the
Waiver Period shall constitute an Event of Default under the Credit Agreement.

SECTION 3. Conditions of Effectiveness. This Waiver Letter shall become effective as
of the date first above written (the “Waiver No. 1 Effective Date”) when, and only when,
the Agent shall have received counterparts of this Waiver Letter executed by us and the Required
Lenders or, as to any of the Lenders, advice satisfactory to the Agent that such Lender has
executed this Waiver Letter, and the consent and confirmation attached hereto executed by each
Guarantor.

This Waiver Letter is subject to the provisions of Section 8.04 of the Credit Agreement and
shall be deemed to be a Credit Document for all purposes thereof.

SECTION 4. Miscellaneous.

(a) The Credit Agreement, the Notes and each of the other Credit Documents, except to the
extent of the waiver specifically provided above, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. Without limiting the generality of
the foregoing, the Security Documents and all of the Collateral described therein do and shall
continue to secure the payment of all Obligations of the Loan Parties under the Loan Documents as
and to the extent provided therein. The execution, delivery and effectiveness of this Waiver
Letter shall not, except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Agent under any of the Loan Documents, nor constitute a waiver of any
provision of any of the Loan Documents.

(b) If you agree to the terms and provisions of this Waiver Letter, please evidence such
agreement by executing and returning at least two counterparts of this Waiver Letter to Shearman &
Sterling LLP, 599 Lexington Avenue, New York, New York 10022, Attention: Gabriella Illyes,
telecopier number: 646-848-8557.

(c) This Waiver Letter may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Waiver Letter by telecopier shall be effective as
delivery of a manually executed counterpart of this Waiver Letter.

[Remainder of page intentionally left blank]

1

This Letter Waiver shall be governed by, and construed in accordance with, the laws of
the State of New York.

Very truly yours,

CHIQUITA BRANDS L.L.C.,

a Delaware limited liability company

By: /s/ Jeffrey M. Zalla

Name: Jeffrey M. Zalla

Title: Senior Vice President and Chief Financial

Officer

CHIQUITA BRANDS INTERNATIONAL, INC.,

a New Jersey corporation

By: /s/ Jeffrey M. Zalla

Name: Jeffrey M. Zalla

Title: Senior Vice President and Chief Financial

Officer

Wachovia Bank, National Association

By: /s/ Mark S. Supple

Name: Mark S. Supple

Title: Vice President

2

CONSENT AND CONFIRMATION

Dated as of September 30, 2006

Each of the undersigned hereby consents to the foregoing Waiver Letter and hereby (a) consents
to the foregoing Waiver Letter, (b) confirms and agrees that notwithstanding the effectiveness of
such Waiver Letter, each Credit Document to which it is a party is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects, and (c) confirms and
agrees that the pledge and security interest in the Collateral granted by it pursuant to the
Security Documents to which it is a party shall continue in full force and effect.

This Consent and Confirmation shall be governed by, and construed in accordance with, the laws
of the State of New York. Each of the undersigned hereby irrevocably submits to the non-exclusive
jurisdiction of the courts of the State of New York, New York county and the courts of the United
States of America located in the Southern District of New York and hereby agrees that any legal
action, suit or proceeding arising out of or relating to the foregoing Waiver Letter and this
Consent and Confirmation may be brought against them in any such courts. This Consent and
Confirmation may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute but one and the same agreement. Delivery of an executed
counterpart of a signature page to this Consent and Confirmation by telecopier shall be effective
as delivery of a manually executed counterpart of this Consent and Confirmation.

3

CHIQUITA BRANDS L.L.C.

CHIQUITA BRANDS INTERNATIONAL, INC.

BOCAS FRUIT CO. L.L.C.

CHIQUITA FRESH CUT L.L.C.

CHIQUITA FRESH NORTH AMERICA L.L.C.

COAST CITRUS DISTRIBUTORS HOLDING COMPANY

By: /s/ Jeffrey M. Zalla

Name: Jeffrey M. Zalla

Title: Senior Vice President and Chief Financial Officer of

Chiquita Brands International, Inc.

(Parent Authorized Officer)

4

FRESH INTERNATIONAL CORP.

ALAMO LAND COMPANY

B C SYSTEMS, INC.

FRESH EXPRESS INCORPORATED

TRANSFRESH CORPORATION

By: /s/ Tanios Viviani

Name: Tanios Viviani

Title: President for each of the Fresh Express Obligors listed above

5

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