Document:

<PAGE>

                                                                     Exhibit 4.1

                          SECOND SUPPLEMENTAL INDENTURE

      This SECOND SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated
as of February 28, 2005, by and among The Lincoln Memorial Park Cemetery
Association, a Nebraska corporation (the "Guaranteeing Subsidiary"), a
subsidiary of Stewart Enterprises, Inc., a Louisiana corporation (the
"Company"), the Company, the other Guarantors (as defined in the Indenture (as
defined below)) and U.S. Bank National Association, successor to Firstar Bank,
N.A., as trustee under the Indenture referred to below (the "Trustee").

                                   WITNESSETH

            WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture dated as of June 29, 2001 and a First Supplemental
Indenture thereto dated as of February 2, 2005 (together, the "Indenture")
providing for the issuance of an aggregate principal amount of $300 million of
10-3/4% Senior Subordinated Notes due 2008 (the "Notes");

            WHEREAS, Lincoln Memorial Mortuary, Inc., a Nebraska corporation and
Guarantor under the Indenture (the "Disappearing Subsidiary"), has merged with
and into the Guaranteeing Subsidiary, effective as of February 1, 2005 (the
"Merger");

            WHEREAS, the Guaranteeing Subsidiary is not currently a Guarantor
under the Indenture;

            WHEREAS, Section 11.05 of the Indenture requires that, in connection
with the Merger, the Guaranteeing Subsidiary, the other Guarantors and the
Company execute and deliver to the Trustee a supplemental indenture pursuant to
which the Guaranteeing Subsidiary shall assume all of the Disappearing
Subsidiary's obligations under the Notes and the Indenture and shall
unconditionally guarantee all of the Company's obligations under the Notes and
the Indenture on the terms and conditions set forth herein (the "Subsidiary
Guarantee"); and

            WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture;

            NOW THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary, the Trustee, the Company and the other Guarantors
mutually covenant and agree for the equal and ratable benefit of the Holders of
the Notes as follows:

            1. Capitalized Terms. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

            2. Agreement to Assume and Guarantee. The Guaranteeing Subsidiary
hereby agrees as follows:

      (a) To assume all of the Disappearing Subsidiary's obligations under the
Notes and the Indenture and, along with all other Guarantors, to jointly and
severally Guarantee to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its

<PAGE>

                                                                     Exhibit 4.1

successors and assigns, irrespective of the validity and enforceability of the
Indenture, the Notes or the obligations of the Company hereunder or thereunder,
that:

                  (i) the principal of and interest on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration, redemption
or otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and

                  (ii) in case of any extension of time of payment or renewal of
any Notes or any of such other obligations, the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise. Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Guarantors shall be jointly and severally obligated to
pay the same immediately. This Subsidiary Guarantee is a guarantee of payment
and not of collection.

      (b) The obligations hereunder shall be unconditional, irrespective of the
validity, regularity or enforceability of the Notes or the Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof, the recovery of
any judgment against the Company, any action to enforce the same or any other
circumstance that might otherwise constitute a legal or equitable discharge or
defense of a guarantor.

      (c) Subject to Section 6.06 of the Indenture, the following is hereby
waived: diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever.

      (d) The Subsidiary Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and the Indenture.

      (e) If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors, or any Custodian, Trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantors, any amount paid by either to the Trustee or such Holder, this
Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated
in full force and effect.

      (f) The Guaranteeing Subsidiary shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.

      (g) As between the Guarantors, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Six of the Indenture for the
purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of

<PAGE>

                                                                     Exhibit 4.1

acceleration of such obligations as provided in Article Six of the Indenture,
such obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee.

      (h) Pursuant to Section 11.03 of the Indenture, the Trustee, the Holders
and the Guarantors irrevocably agree that the obligations of such Guarantor
under its Subsidiary Guarantee shall be limited to the extent necessary so that
they shall not constitute a fraudulent transfer or conveyance.

            3. Subordination. The Obligations of the Guaranteeing Subsidiary
under its Subsidiary Guarantee pursuant to this Supplemental Indenture shall be
junior and subordinated to the Senior Debt of the Guaranteeing Subsidiary on the
same basis as the Notes are junior and subordinated to the Senior Debt of the
Company. For the purposes of the foregoing sentence, the Trustee and the Holders
shall have the right to receive and/or retain payments by the Guaranteeing
Subsidiary only at such time as they may receive and/or retain payments in
respect of the Notes pursuant to the Indenture, including Article Ten thereof.

            4. Execution and Delivery. The Guaranteeing Subsidiary agrees that
the Subsidiary Guarantee shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of the Subsidiary Guarantee.

            5. Guaranteeing Subsidiary May Consolidate, Etc., on Certain Terms.
Except as otherwise provided in Section 11.05 of the Indenture, a Guarantor may
not sell or otherwise dispose of all or substantially all of its assets, or
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person unless:

      (a)   immediately after giving effect to such transaction, no Default or
            Event of Default exists; and

      (b)   either:

                  (i) the Person acquiring the property in any such sale or
                  disposition or the Person formed by or surviving any such
                  consolidation or merger is a corporation, organized or
                  existing under the laws of the United States, any state
                  thereof or the District of Columbia and assumes all the
                  obligations of that Guarantor under this Indenture, its
                  Subsidiary Guarantee and the Registration Rights Agreement
                  pursuant to a supplemental indenture satisfactory to the
                  Trustee; or

                  (ii) such sale or other disposition complies with Section
                  4.10, including the application of the Net Proceeds therefrom.

            In case of any such consolidation, merger, sale or conveyance and
upon the assumption by the successor Person, by supplemental indenture, executed
and delivered to the Trustee and satisfactory in form to the Trustee, of the
Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be
performed by a Guarantor, such successor Person shall succeed to and be

<PAGE>

                                                                     Exhibit 4.1

substituted for a Guarantor with the same effect as if it had been named herein
as a Guarantor. Such successor Person thereupon may cause to be signed any or
all of the Subsidiary Guarantees to be endorsed upon all of the Notes issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all
respects have the same legal rank and benefit under this Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance with the
terms of this Indenture as though all of such Subsidiary Guarantees had been
issued at the date of the execution hereof.

                  Except as set forth in Articles 4 and 5 of the Indenture, and
notwithstanding clauses (a) and (b) above, nothing contained in this Indenture
or in any of the Notes shall prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or shall prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

            6. Releases.

      (a) Any Guarantor will be released and relieved of any obligations under
its Subsidiary Guarantee, (i) in connection with any sale or other disposition
of all or substantially all of the assets of that Guarantor (including by way of
merger or consolidation) to a Person that is not (either before or after giving
effect to such transaction) a Restricted Subsidiary of the Company, if the sale
or other disposition of all or substantially all of the assets of that Guarantor
complies with Section 4.10 of the Indenture, including the application of the
Net Proceeds therefrom; (ii) in connection with any sale of all of the Capital
Stock of a Guarantor to a Person that is not (either before or after giving
effect to such transaction) a Restricted Subsidiary of the Company, if the sale
of all such Capital Stock of that Guarantor complies with Section 4.10 of the
Indenture, including the application of the Net Proceeds therefrom and (iii) if
the Company properly designates any Restricted Subsidiary that is a Guarantor as
an Unrestricted Subsidiary. Upon delivery by the Company to the Trustee of an
Officers' Certificate and an Opinion of Counsel to the effect that such sale or
other disposition was made by the Company in accordance with the provisions of
this Indenture, including without limitation Section 4.10 hereof, the Trustee
shall execute any documents reasonably required in order to evidence the release
of any Guarantor from its obligations under its Subsidiary Guarantee.

      (b) Any Guarantor not released from its obligations under its Subsidiary
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under the Indenture
as provided in Article Eleven of the Indenture.

            7. No Recourse Against Others. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws.

<PAGE>

                                                                     Exhibit 4.1

            8. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

            9. Counterparts. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

            10. Effect of Headings. The Section headings herein are for
convenience only and shall not affect the construction hereof.

            11. Trustee. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Company.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

                                                                     Exhibit 4.1

      IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.

THE LINCOLN MEMORIAL PARK CEMETERY ASSOCIATION, as Guaranteeing Subsidiary

By: /s/Thomas M. Kitchen
    ---------------------
Name: Thomas M. Kitchen
Title: Authorized Person

STEWART ENTERPRISES, INC.

By: /s/Thomas M. Kitchen
    ----------------------
Name: Thomas M. Kitchen
Title: Executive Vice President and Chief Financial Officer

U.S. BANK NATIONAL ASSOCIATION, as Trustee

By: ______________________________
Name:
Title:

OTHER GUARANTORS:

KILGORE-GREEN FUNERAL HOME, INC.
S.E. CEMETERIES OF ALABAMA, INC.
S.E. COMBINED SERVICES OF ALABAMA, INC.
S.E. FUNERAL HOMES OF ALABAMA, INC.
FOREST HILLS CEMETERY, INC.
GRIFFIN-LEGGETT INSURANCE AGENCY, INC.
GRIFFIN-LEGGETT, INC.
GROSS FUNERAL HOME, INC.
REST HILLS MEMORIAL PARK, INC.
S.E. FUNERAL HOMES OF ARKANSAS, INC.
ALL SOULS MORTUARY, INC.
ASHES TO ASHES, INC.
ASSUMPTION MORTUARY, INC.
BARSTOW FUNERAL HOMES, INC.
BUCHHEIM FAMILY, INC.

<PAGE>

                                                                     Exhibit 4.1

CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.
CATALINA CHANNEL CREMATION SOCIETY
CATHOLIC MORTUARY SERVICES, INC.
DeYOUNG MEMORIAL CHAPEL, INC.
DILDAY BROTHERS HUNTINGTON VALLEY MORTUARY
HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.
HOLY CROSS MORTUARY OF POMONA, CALIFORNIA, INC.
HOPSON MORTUARY, INC.
LASSILA FUNERAL CHAPELS, INC.
LOMBARD & CO.
N.D. DAVIS & ASSOCIATES, INC.
QUEEN OF HEAVEN MORTUARY, INC.
RESURRECTION MORTUARY, INC.
RIVER CITIES FUNERAL CHAPEL, INC.
S.E. ACQUISITION OF CALIFORNIA, INC.
S.E. ACQUISITION OF DELANO, CALIFORNIA, INC.
S.E. ACQUISITION OF GLENDALE, CALIFORNIA, INC.
S.E. ACQUISITION OF LANCASTER, CALIFORNIA, INC.
S.E. ACQUISITION OF LOS OSOS MORTUARY AND MEMORIAL PARK, INC.
S.E. ACQUISITION OF OAKHURST, CALIFORNIA, INC.
S.E. ACQUISITION OF OROVILLE, CALIFORNIA, INC.
SAN DIEGO CEMETERY ASSOCIATION
SAN FERNANDO MISSION MORTUARY, INC.
SANTA BARBARA FUNERAL SERVICES, INC. SANTA CLARA MORTUARY, INC.
SCOVERN MORTUARY, A CALIFORNIA CORPORATION
SDCA HOLDINGS, INC.
SIMPLICITY PLAN OF CALIFORNIA, INC.
STEWART PRE-NEED SERVICES, INC.
STRICKLIN/SNIVELY MORTUARY
VICTOR V. DESROSIER, INC.
WALLACE E. WHITE & HOWARD J. CALLANAN, INC.
SENTINEL CREMATION SOCIETIES, INC.
A.P. BOZA FUNERAL HOME, INC.
ALL FAITHS MEMORIAL PARK, INC.
ARLINGTON MEMORIAL PARK CEMETERY AND FUNERAL HOME, INC.
BALDWIN-FAIRCHILD FUNERAL HOMES, INC.
BAY AREA CREMATORY, INC.
BETH DAVID MEMORIAL CHAPEL, INC.
BRUCE OCALA FUNERAL HOME, INC.
CEMETERY MANAGEMENT, INC.
CHAPEL HILL CEMETERY, INC.
CURRY & SON FUNERAL HOME, INC.
DAVID C. GROSS FUNERAL HOME, INC.
FLORIDA HILLS MEMORIAL GARDENS, INC.
GARDEN OF MEMORIES, INC.
GLEN HAVEN MEMORIAL PARK, INC.

<PAGE>

                                                                     Exhibit 4.1

GOOD SHEPHERD MEMORIAL GARDENS, INC.
HIGHLAND MEMORY GARDENS, INC.
HUBBELL FUNERAL HOME AND CREMATORY, INC.
KENT R. PALMER, INC.
KICLITER FUNERAL HOME, INC.
MADCEM OF FLORIDA, INC.
MEMORIAL PARK CEMETERY, INC.
MEMORIAL SUNSET PARK, INC.
OAKLAWN PARK CEMETERY AND FUNERAL HOME, INC.
ROBERTS FUNERAL HOME, INC.
ROYAL PALM MEMORIAL GARDENS, INC.
SEMORAN FUNERAL HOME, INC.
SOUTH DADE-PALMS MEMORIAL PARK, INC.
SYLVAN ABBEY MEMORIAL PARK, INC.
THE SIMPLICITY PLAN, INC.
TRINITY MEMORIAL GARDENS OF LAKELAND, INC.
TURNER CREMATORY, INC.
TURNER FUNERAL HOMES, INC.
WALSH & WOOD FUNERAL HOME, INC.
WOODLAWN MEMORY GARDENS, INC.
WOODLAWN PARK CEMETERY COMPANY
CHEATHAM HILL MEMORIAL PARK, INC.
EASTLAWN CORPORATION
GARNER FAMILY FUNERAL HOME, INC.
HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.
HAISTEN FUNERAL HOMES, INC.
HIGGINS AND SON FUNERAL HOME, INC.
HOLLY HILL MEMORIAL PARK, INC.
ROSEHAVEN FUNERAL HOME & CEMETERY, INC.
S.E. ACQUISITION OF LITHONIA, GEORGIA, INC.
S.E. ACQUISITION OF BLUE ISLAND, ILLINOIS, INC.
S.E. ACQUISITION OF OAK LAWN AND ORLAND PARK, ILLINOIS, INC.
ANDREW J. MCGANN & SON FUNERAL HOME, INC.
KNUTSON FUNERAL HOMES, INC.
PAULEY FUNERAL HOME, INC.
RUNYAN MANGOLD, INC.
ACME MAUSOLEUM CORPORATION
EMPRESAS STEWART - CEMENTERIOS, INC.
EMPRESAS STEWART - FUNERARIAS, INC.
LAKE LAWN METAIRIE FUNERAL HOME (JOINT VENTURE)
LAKE LAWN PARK, INC.
S.E. AUSTRALIA, INC.
S.E. CEMETERIES OF LOUISIANA, INC.
S.E. FUNERAL HOMES OF LOUISIANA, INC.
S.E. SOUTH-CENTRAL, INC.
STEWART ENTERPRISES (EUROPE) INC.

<PAGE>

                                                                     Exhibit 4.1

STEWART RESOURCE CENTER, INC.
STEWART SERVICES, INC.
BOUNDS FUNERAL HOME, INC.
CEDAR HILL CEMETERY COMPANY, INC.
CREST LAWN MEMORIAL GARDENS, INC.
DRUID RIDGE CEMETERY COMPANY
FORT LINCOLN CEMETERY, INC.
FORT LINCOLN FUNERAL HOME, INC.
GALLERY GRANITE CORPORATION
HILLCREST MEMORIAL CEMETERY, INC.
HINES-RINALDI FUNERAL HOME, INC.
JOHN M. TAYLOR FUNERAL HOME, INC.
LOUDON PARK CEMETERY COMPANY
LOUDON PARK FUNERAL HOME, INC.
NATIONAL HARMONY MEMORIAL PARK, INC.
PARKLAWN, INC.
PARKWOOD MANAGEMENT COMPANY
S.E. MID-ATLANTIC, INC.
SIMPLE TRIBUTE OF MARYLAND, INC.
THE PARKWOOD CEMETERY COMPANY
WILLIAM W. CHAMBERS, INC.
LAKEWOOD MEMORIAL PARK, INC.
D.W. NEWCOMER'S SONS, INC.
DWN PROPERTIES, INC.
FUNERAL SECURITY PLANS, INC.
NEPTUNE SOCIETY OF NEVADA, INC.
RENO MEMORIAL, INC.
S.E. ACQUISITION OF NEVADA, INC.
S.E. ACQUISITION OF RENO, NEVADA, INC.
GORNY & GORNY PATERSON-CLIFTON MORTUARY
S.E. ACQUISITION OF CLIFTON, NEW JERSEY, INC.
S.E. ACQUISITION OF SANTA FE, NEW MEXICO, INC.
C.J. APPLEGATE AND SONS, INC.
CORNELL & DAGGETT, INC.
GARDINIER COLLETTI MEMORIAL HOME, INC.
MURPHY FUNERAL SERVICE, INC.
OTTO REDANZ FUNERAL HOME, INC.
S.E. ACQUISITION OF FREDONIA, NEW YORK, INC.
STRONG & BURNS FUNERAL HOME, INC.
CATAWBA MEMORIAL PARK, INC.
EVANS FUNERAL HOME, INC.
GARRETT - HILLCREST, INC.
MCLAURIN'S FUNERAL HOME, INC.
MONTLAWN MEMORIAL PARK, INC.
S.E. CEMETERIES OF NORTH CAROLINA, INC.
S.E. FUNERAL HOMES OF NORTH CAROLINA, INC.

<PAGE>

                                                                     Exhibit 4.1

AMLING/SCHROEDER FUNERAL SERVICE, INC.
CASCADE CREMATORY, INC.
CHAPEL OF THE ROSES, INC.
CHAPEL OF THE VALLEY FUNERAL HOME, INC.
DUTTON, INC.
S.E. GREENWOOD, INC.
J.P. FINLEY AND SON MORTUARY, INC.
S.E. BEND NR, INC.
S.E. ACQUISITION OF MYRTLE CREEK, OREGON, INC.
S.E. ACQUISITION OF OREGON, INC.
S.E. ACQUISITION OF REEDSPORT, OREGON, INC.
SUNSET HILLS MEMORIAL PARK
S.E. BEND TDHM, INC.
BENJAMIN FRANKLIN P. M., INC.
GEORGE WASHINGTON MEMORIAL PARK, INC.
KIRK & NICE SUBURBAN CHAPEL, INC.
KIRK & NICE, INC.
PET HAVEN, INC.
S.E. ACQUISITION OF PENNSYLVANIA, INC.
SUNSET MEMORIAL PARK COMPANY
DUNBAR FUNERAL HOME
S.E. CEMETERIES OF SOUTH CAROLINA, INC.
S.E. COMBINED SERVICES OF SOUTH CAROLINA, INC.
S.E. FUNERAL HOMES OF SOUTH CAROLINA, INC.
MONTE VISTA BURIAL PARK, INC.
MT. JULIET MEMORIAL GARDENS, INC.
NAVE FUNERAL HOME OF LEBANON, INC.
S.E. COMBINED SERVICES OF TENNESSEE, INC.
S.E. FUNERAL HOMES OF TENNESSEE, INC.
THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.
ABBEY PLAN OF TEXAS, INC.
BELEW FUNERAL HOME, INC.
EMERALD HILLS FUNERAL CORPORATION
GUARDIAN CREMATION SOCIETY, INC.
LYONS FUNERAL HOME, INC.
PASADENA FUNERAL HOME, INC.
S.E. FUNERAL HOMES OF TEXAS, INC.
S.E. CEMETERIES OF TEXAS, INC.
SIMPLICITY PLAN OF TEXAS, INC.
CLINCH VALLEY MEMORIAL CEMETERY, INC.
EVERLY FUNERAL HOMES, INCORPORATED
EVERLY PFP, INC.
MONTICELLO MEMORY GARDENS, INC.
S.E. CEMETERIES OF VIRGINIA, INC.
S.E. FUNERAL HOMES OF VIRGINIA, INC.
CREMATION SOCIETY NORTHWEST, INC.

<PAGE>

                                                                     Exhibit 4.1

E.R. BUTTERWORTH & SONS
S.E.E.S. OF VANCOUVER, INC.
S.E. ACQUISITION OF WASHINGTON, INC.
BARTLETT-BURDETTE-COX FUNERAL HOME, INC.
CASDORPH & CURRY FUNERAL HOME, INC.
EASTERN CEMETERY ASSOCIATES, INC.
KANAWHA PLAZA PARTNERSHIP
KLINGEL-CARPENTER MORTUARY, INC.
LOI CHARLESTON, INC.
NATIONAL EXCHANGE TRUST, LTD.
NATIONAL FUNERAL SERVICES, INCORPORATED
S.E. ACQUISITION OF MALDEN, WEST VIRGINIA, INC.
S.E. CEMETERIES OF WEST VIRGINIA, INC.
S.E. FUNERAL HOMES OF WEST VIRGINIA, INC.
WILSON FUNERAL HOME, INC.
CEMETERY SERVICES, INC.
WISCONSIN MEMORIAL PARK COMPANY, INC.

By: /s/Thomas M. Kitchen
    --------------------
Name: Thomas M. Kitchen
Title: Authorized Personexv10w1

 

Exhibit 10.1

STOCK PURCHASE AGREEMENT

between

LIMONEIRA COMPANY

and

CALAVO GROWERS, INC.

June 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE OF LIMCO SHARES
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3 PURCHASE AND SALE OF CALAVO SHARES
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4 PURCHASE AND SALE OF MISSION SHARES
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 5 OFFICE LEASE
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 6 FRUIT COMMITMENT AGREEMENT
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 7 JOINT DEVELOPMENT OF PACKING HOUSE
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 8 STANDSTILL AGREEMENTS
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 9 THE INITIAL CLOSING AND THE MISSION CLOSING
	 	 	8	 
	9.1 Initial Closing and Initial Closing Date
	 	 	8	 
	9.2 Deliveries by Limco at the Initial Closing
	 	 	8	 
	Limco Shares
	 	 	8	 
	Office Lease
	 	 	8	 
	Avocado Marketing Letter Agreement
	 	 	8	 
	Certificates
	 	 	8	 
	Certificate of Public Official
	 	 	8	 
	Standstill Agreements
	 	 	8	 
	Other Documents
	 	 	8	 
	9.3 Deliveries by Calavo at the Initial Closing
	 	 	8	 
	Purchase Price
	 	 	8	 
	Calavo Shares
	 	 	8	 
	Office Lease
	 	 	9	 
	Avocado Marketing Letter Agreement
	 	 	9	 
	Standstill Agreements
	 	 	9	 
	Certificates
	 	 	9	 
	Certificate of Public Official
	 	 	9	 
	Other Documents
	 	 	9	 
	9.4 Mission Closing and Mission Closing Date
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 10 REPRESENTATIONS AND WARRANTIES OF LIMCO
	 	 	9	 
	10.1 Organization and Qualification of Limco
	 	 	10	 
	10.2 Capitalization of Limco and Subsidiaries
	 	 	10	 
	10.3 Subsidiaries
	 	 	10	 
	10.4 Power and Authority
	 	 	10	 
	10.5 Investment
	 	 	11	 

i

 

	 	 	 	 	 
	 	 	Page	 
	10.6 No Violation or Conflict
	 	 	11	 
	10.7 Financial Statements
	 	 	11	 
	10.8 Absence of Certain Changes or Events
	 	 	11	 
	10.9 Title to Assets
	 	 	12	 
	10.10 Material Contracts
	 	 	12	 
	10.11 Compliance with Applicable Laws
	 	 	12	 
	10.12 Litigation and Liabilities
	 	 	12	 
	10.13 Brokers, Finders, Investment Bankers and Financial Advisors
	 	 	12	 
	10.14 Labor Relations
	 	 	12	 
	10.15 Environmental Matters
	 	 	13	 
	10.16 Intellectual Property
	 	 	14	 
	10.17 Permits
	 	 	14	 
	10.18 Liabilities and Disclosure
	 	 	14	 
	10.19 Changes
	 	 	14	 
	10.20 Tax Returns and Payments
	 	 	14	 
	10.21 Insurance Policies
	 	 	14	 
	10.22 Employee Benefit Plans
	 	 	15	 
	10.23 Foreign Corrupt Practices Act
	 	 	17	 
	10.24 Sarbanes-Oxley Compliance
	 	 	17	 
	10.25 Transferability of the Limco Shares
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 11 REPRESENTATIONS AND WARRANTIES OF CALAVO
	 	 	17	 
	11.1 Organization and Qualification of Calavo
	 	 	17	 
	11.2 Capitalization of Calavo and Subsidiaries
	 	 	18	 
	11.3 Subsidiaries
	 	 	18	 
	11.4 Power and Authority
	 	 	18	 
	11.5 Investment
	 	 	18	 
	11.6 No Violation or Conflict
	 	 	19	 
	11.7 Financial Statements and Reductions
	 	 	19	 
	11.8 Absence of Certain Changes or Events
	 	 	19	 
	11.9 Title to Assets
	 	 	19	 
	11.10 Material Contracts
	 	 	20	 
	11.11 Compliance with Applicable Laws
	 	 	20	 
	11.12 Litigation and Liabilities
	 	 	20	 
	11.13 Brokers, Finders, Investment Bankers and Financial Advisors
	 	 	20	 
	11.14 Labor Relations
	 	 	20	 
	11.15 Environmental Matters
	 	 	20	 
	11.16 Intellectual Property
	 	 	22	 
	11.17 Permits
	 	 	22	 
	11.18 Liabilities and Disclosure
	 	 	22	 
	11.19 Changes
	 	 	22	 
	11.20 Tax Returns and Payments
	 	 	22	 
	11.21 Insurance Policies
	 	 	22	 
	11.22 Employee Benefit Plans
	 	 	23	 
	11.23 Exchange Act Reports
	 	 	25	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	11.24 Foreign Corrupt Practices Act
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 12 COVENANTS OF LIMCO
	 	 	25	 
	12.1 Conduct of Business Prior to Initial Closing
	 	 	25	 
	12.2 Access
	 	 	27	 
	12.3 Reasonable Efforts Regarding Mission Shares
	 	 	27	 
	12.4 Reasonable Efforts
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 13 COVENANTS OF CALAVO
	 	 	27	 
	13.1 Conduct of Business Prior to Initial Closing
	 	 	27	 
	13.2 Access
	 	 	28	 
	13.3 Reasonable Efforts
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 14 CONDITIONS PRECEDENT TO LIMCO’S OBLIGATION TO CLOSE
	 	 	28	 
	14.1 General
	 	 	28	 
	14.2 Representations and Warranties
	 	 	29	 
	14.3 Investigations Fail to Disclose Material Adverse Change or Condition
	 	 	29	 
	14.4 Covenants and Agreements
	 	 	29	 
	14.5 No Adverse Changes
	 	 	29	 
	14.6 No Proceedings
	 	 	29	 
	14.7 Certificates
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 15 CONDITIONS PRECEDENT TO CALAVO’S OBLIGATION TO CLOSE
	 	 	29	 
	15.1 General
	 	 	29	 
	15.2 Investigations Fail to Disclose Material Adverse Change or Condition
	 	 	29	 
	15.3 Representations and Warranties
	 	 	29	 
	15.4 Covenants and Agreements
	 	 	29	 
	15.5 No Adverse Changes
	 	 	30	 
	15.6 No Proceedings
	 	 	30	 
	15.7 Certificates
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 16 RIGHTS OF FIRST REFUSAL
	 	 	30	 
	16.1 Limco Shares
	 	 	30	 
	16.2 Calavo Shares
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 17 PUBLIC DISCLOSURE
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 18 TERMINATION
	 	 	31	 
	18.1 Termination
	 	 	31	 
	18.2 Effect of Termination
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 19 SURVIVAL OF REPRESENTATIONS; INDEMNIFICATIONS
	 	 	32	 
	19.1 Survival
	 	 	32	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	19.2 Indemnification
	 	 	32	 
	19.2.1 Limco
	 	 	32	 
	Calavo
	 	 	32	 
	Notice/Defense
	 	 	32	 
	Waiver of Breach; Indemnification Limitations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 20 MISCELLANEOUS
	 	 	33	 
	20.1 Notices
	 	 	33	 
	20.2 Entire Agreement
	 	 	34	 
	20.3 Waivers and Amendments
	 	 	34	 
	20.4 Governing Law
	 	 	35	 
	20.5 No Assignment
	 	 	35	 
	20.6 Counterparts
	 	 	35	 
	20.7 Headings
	 	 	35	 
	20.8 Benefit to Parties
	 	 	35	 
	20.9 Validity
	 	 	35	 
	20.10 Exhibits and Schedules
	 	 	35	 
	20.11 Further Assurances
	 	 	35	 
	20.12 Transaction Expenses
	 	 	35	 

iv

 

STOCK PURCHASE AGREEMENT

     THIS AGREEMENT is made and entered into as of June 1, 2005, by and between LIMONEIRA COMPANY,
a Delaware corporation (“Limco”), and CALAVO GROWERS, INC., a California corporation (“Calavo”).

RECITALS

     A. Limco is engaged primarily in the business of growing and marketing avocados, citrus fruits
and other specialty crops.

     B. Calavo is engaged in the business of marketing fresh avocados and processed avocado
products throughout the U.S.A.

     C. Limco and Calavo desire to form a strategic alliance by each purchasing shares of common
stock of the other as provided herein and by carrying out the further transactions and activities
provided for herein.

AGREEMENT

     NOW, THEREFORE, as the parties agree as follows:

ARTICLE 1

DEFINITIONS

     In addition to the meanings ascribed to certain terms elsewhere in this Agreement, for
purposes of this Agreement:

     “Accredited Investor” has the meaning set forth in Regulation D promulgated under the
Securities Act.

     “Adverse Consequences” means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and fees, including
court costs and reasonable attorneys’ fees and expenses.

     “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated
under Securities Exchange Act.

1

 

     “Basis” means any past or present fact, situation, circumstance, status, condition,
activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction that
forms or could form the basis for any specified consequence.

     “Calavo Shares” shall mean the 1,000,000 shares of newly-issued common stock, $.001
par value per share, of Calavo to be purchased by Limco as provided in Article 3 hereof.

     “COBRA” means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code
§4980B and of any similar state law.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Confidential Information” means any information concerning the business and affairs
of either party not already generally available to the public.

     “Employee Benefit Plan” means any “employee benefit plan” (as such term is defined in
ERISA §3(3)) and any other material employee benefit plan, program or arrangement of any kind.

     “Employee Pension Benefit Plan” has the meaning set forth in ERISA §3(2).

     “Employee Welfare Benefit Plan” has the meaning set forth in ERISA §3(1).

     “Environmental, Health, and Safety Requirements” shall mean all federal, state, local
and foreign statutes, regulations, ordinances and other provisions having the force or effect of
law, all judicial and administrative orders and determinations, all contractual obligations and all
common law concerning public health and safety, worker health and safety, and pollutions or protection of the environment,
including without limitation all those relating to the presence, use, production, generation,
handling, transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, or cleanup of any hazardous materials,
substances or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic
chemicals, petroleum products or by products, asbestos, polychlorinated biphenyls, noise or
radiation, each as amended and as now or hereafter in effect.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means each entity which is treated as a single employer with Limco
or Calavo for purposes of Code §414.

2

 

     “Fiduciary” has the meaning set forth in ERISA §3(21).

     “Financial Statements” has the meaning set forth in Sections 10.7 and 11.7 below.

     “GAAP” means United States generally accepted accounting principles as in effect from
time to time.

     “Initial Closing” has the meaning set forth in Article 9 below.

     “Initial Closing Date” has the meaning set forth in Article 9 below.

     “Intellectual Property” means (a) all inventions (whether patentable or unpatentable
and whether or not reduced to practice), all improvements thereto, and all patent applications, and
patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions,
extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos,
trade names, and corporate names, together with all translations, adaptations, derivations, and
combinations thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith, (e) all trade
secrets and confidential business information (including software and source codes, ideas, research
and development, know-how, formulas, compositions, manufacturing and production processes and
techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing
and cost information, and business and marketing plans and proposals), (f) all computer software
(including data and related documentation), (g) all other proprietary rights, (h) all web domain
names and websites and all registrations and applications associated therewith, and all its
derivatives, and (i) all copies and tangible embodiments thereof (in whatever form or medium).

     “Knowledge” means actual knowledge after reasonable inquiry of internal personnel
deemed appropriate by the Party making the inquiry.

     “Leased Real Property” means all leasehold or subleasehold estates and other rights to
use or occupy any land, buildings, structures, improvements, fixtures or other interest in real
property held by either Limco or Calavo.

     “Leases” means all leases, subleases, licenses, concessions and other agreements
(written or oral), including all amendments, extensions, renewals, guaranties and other agreements
with respect thereto, pursuant to which Limco or Calavo holds any Leased Real Property.

3

 

     “Liability” means any liability (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, and whether due or to become due).

     “Limco Shares” means the 172,857shares of newly issued common stock, $.01 par value
per share, of Limco to be purchased by Calavo as provided in Article 2 hereof.

     “Material Adverse Change or Condition” means any occurrence or condition or series of
related occurrences or conditions not disclosed in the Financial Statements or Most Recent
Financial Statements of either party or, in the case of Calavo, Calavo’s Securities Exchange Act
reports that would individually or cumulatively reduce by Five Hundred Thousand Dollars ($500,000)
or more the results of operations, financial condition or value of the assets, or properties of
either party.

     “Mission” means Mission Produce, Inc., a California corporation.

     “Mission Closing” has the meaning set forth in Article 9 below.

     “Mission Shares” means the 547,452 shares of common stock of Mission which Limco has
the right to put to Calavo as provided in Article 4 hereof, if Limco does not sell them to Mission.

     “Most Recent Financial Statements” has the meaning set for in Sections 10.7 and 11.7
below.

     “Most Recent Fiscal Month End” has the meaning set forth in Sections 10.7 and 11.7
below.

     “Multiemployer Plan” has the meaning set forth in ERISA §3(37).

     “Ordinary Course of Business” means the ordinary course of business consistent with
past custom and practice (including with respect to quantity and frequency).

     “Party” means either Limco or Calavo as the case may be.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Person” means any individual, a partnership, a corporation, an association, a joint
stock company, a trust, a joint venture, a limited liability company, an unincorporated
organization, or a governmental entity (or any department, agency, or political subdivision
thereof).

“Prohibited Transaction” has the meaning set forth in ERISA §406 and Code §4975.

“Reportable Event” has the meaning set forth in ERISA §4043.

4

 

“Securities Act” means the Securities Act of 1933, as amended.

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Security Interest” means any mortgage, pledge, lien, encumbrance, charge or other
security interest, other than (a) mechanic’s, materialmen’s, and similar liens, (b) liens for Taxes
not yet due and payable or for Taxes that the taxpayer is contesting in good faith through
appropriate proceedings, (c) purchase money liens and liens securing rental payments under capital
lease arrangements, and (d) other liens arising in the Ordinary Course of Business and not incurred
in connection with the borrowing of money.

     “Subsidiary” means (i) any corporation with respect to which a specified Person (or a
Subsidiary thereof) owns a majority of the common stock or has the power to vote or direct the
voting of sufficient securities to elect a majority of the directors or (ii) any limited liability
company with respect to which a person owns a majority of the voting power and/or interest in
profits and losses.

     “Tax” means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Code §59A), customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of
any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

     “Tax Return” means any return, declaration, report, claims for refund, information
return or statement relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

ARTICLE 2

PURCHASE AND SALE OF LIMCO SHARES

     Limco agrees to sell and Calavo agrees to purchase the Limco Shares, free and clear of all
liens, encumbrances or claims of others, for the cash purchase price of $23,450,000. Such purchase
price shall be paid by Calavo at the Initial Closing by means of a wire transfer of immediately
available funds to an account designated by Limco.

5

 

ARTICLE 3

PURCHASE AND SALE OF CALAVO SHARES

     Calavo agrees to sell and Limco agrees to purchase the Calavo Shares, free and clear of all
liens, encumbrances or claims of others, for the purchase price of $10,000,000. Such purchase
price shall be paid by Limco at the Initial Closing by means of a wire transfer of immediately
available funds to an account designated by Calavo.

ARTICLE 4

PURCHASE AND SALE OF MISSION SHARES

     Calavo and Limco acknowledge and agree that the Mission Shares are subject to certain rights
of first refusal set forth in a Shareholder Agreement dated June 5, 1990 and may not be sold unless
both the issuer, Mission and its shareholders waive or fail to exercise their respective rights of
first refusal and the merger or other business combination transaction have not been agreed to by
Calavo and Mission. Mission has entered into an agreement to repurchase the Mission Shares from Limco on or before June 15, 2005. In the event that Mission fails to
repurchase the Mission Shares and subject to the condition that the rights of first refusal with
respect to the Mission Shares are either waived or not exercised in a timely fashion, and subject
to the terms and conditions of Section 9.4, Limco agrees to sell and Calavo agrees to purchase the
Mission Shares, free and clear of all liens, encumbrances or claims of others, for a cash purchase
price of $5,474,520. Such purchase price shall be paid by Calavo to Limco at the Mission Closing by
means of a wire transfer of immediately available funds to an account designated by Limco. Limco
represents and warrants to Calavo that (i) Limco owns the Mission Shares free and clear of all
liens, security interests and other encumbrances, and has the right to sell the Mission Shares to
Calavo on the terms described in this Agreement, subject to the rights of first refusal set forth
in the Shareholder Agreement dated June 5, 1990, and (ii) to Limco’s knowledge, the Mission Shares
constitute 20.7% of the outstanding capital stock of Mission Produce, Inc.

ARTICLE 5

OFFICE LEASE

     On or before the Initial Closing Date, Limco and Calavo shall execute and deliver to each
other a Lease Agreement in the form of that attached hereto as Exhibit 5 hereof, pursuant to which
Calavo agrees to lease from Limco approximately 9,490 square feet of office space in Limco’s Ranch
Headquarters for a period of ten years at an initial annual gross rental of $207,226.

6

 

ARTICLE 6

FRUIT COMMITMENT AGREEMENT

     At the Initial Closing, Limco and Calavo shall execute and deliver to each other a letter
agreement, to be in form and substance reasonably satisfactory to each Party, regarding the
marketing of Limco’s avocados by Calavo.

ARTICLE 7

JOINT DEVELOPMENT OF PACKING HOUSE

     Following the Initial Closing, Limco and Calavo shall use their good faith reasonable efforts
to maximize avocado packing efficiencies for both parties by consolidating their fruit packing
operations. Possible opportunities to be considered will include:

	 	(1)  	Cross dock and storage arrangement in Limco’s existing facilities
	 
	 	(2)  	Investment in Limco’s existing vacant orange packing house
	 
	 	(3)  	Investment in an addition to Limco’s existing lemon packing facility
	 
	 	(4)  	Investment in a new consolidated facility for both parties at Limco

     Any such joint investment that is agreed to by Calavo and Limco shall provide a reasonable
rate of return to the party or parties providing land equipment and/or capital.

ARTICLE 8

STANDSTILL AGREEMENTS

     Calavo, together with its executive officers and directors (collectively “Calavo Affiliates”),
shall execute and deliver at the Initial Closing, one or more counterparts of a “Standstill
Agreement” in the form of Exhibit 8A hereof, pursuant to which (i) Calavo agrees that it will not,
without the prior written approval of Limco’s Board of Directors, purchase or enter into any
transaction whereby Calavo will acquire cumulatively twelve and six tenths percent (12.6%)
of the capital stock of Limco in addition to the Limco Shares being acquired hereunder and
(ii) Calavo and the Calavo Affiliates agree that they will not, individually or collectively,
themselves or together with any third party or parties form a “group” as defined in the Securities
Exchange Act for the purpose of acquiring voting control and/or beneficial ownership of a majority
of Limco’s capital stock. Limco, together with its executive officers and directors (collectively
“Limco Affiliates”), shall execute and deliver at the Initial Closing, one or more counterparts of
a “Standstill Agreement” in the form of Exhibit 8B hereof, pursuant to which (i) Limco agrees that
it will not, without the prior written approval of Calavo’s Board of Directors, purchase or enter
into any transaction whereby Limco will acquire cumulatively twelve and six tenths percent (12.6%)
of the capital stock of

7

 

Calavo in addition to the Calavo Shares being acquired hereunder and (ii) Limco and the Limco Affiliates agree that they will not, individually or collectively, themselves
or together with any third party or parties form a “group” as defined in the Securities Exchange
Act for the purpose of acquiring voting control and/or beneficial ownership of a majority of
Calavo’s capital stock.

ARTICLE 9

THE INITIAL CLOSING AND THE MISSION CLOSING

     9.1 Initial Closing and Initial Closing Date. Subject to the conditions to closing set
forth herein, the consummation of the transactions contemplated by this Agreement (other than the
sale of the Mission Shares) shall be effected at a closing (the “Initial Closing”) at 10:00 a.m.,
Pacific Daylight Savings Time, on a date, agreed to by Calavo and Limco that is not more than 5
days following the satisfaction or waiver of the Initial Closing conditions described in Articles
14 and 15. The Initial Closing shall take place at the Ranch Headquarters of Limco at 1141 Cummings Road, Santa Paula, California 93060. The Initial
Closing may also take place at such other time and place as Limco and Calavo may mutually agree.
All transactions effected at the Initial Closing, unless otherwise specifically agreed in writing,
shall be effective on and as of the Initial Closing Date.

     9.2 Deliveries by Limco at the Initial Closing. At the Initial Closing, Limco shall
deliver to Calavo:

          (a) Limco Shares. The purchase price for the Calavo Shares and one or more certificates
evidencing the Limco Shares duly executed and issued in the name of Calavo; together with a
completed and signed form of Notice of Transaction Pursuant to Corporations Code Section 25102(f).
The Limco Shares will be “restricted securities” under federal and state securities laws and will
be issued with a legend restricting any form of transfer for a period of one year from issuance and
thereafter only pursuant to an exemption from registration and an opinion of counsel reasonably
acceptable to Limco that an exemption from registration is available with respect to the proposed
transfer. Such legend shall also reference Limco’s right of first refusal provided for in Article
16 hereof.

          (b) Office Lease. A duly executed counterpart of the Office Lease in the form of Exhibit 5
hereof.

          (c) Avocado Marketing Letter Agreement. A duly executed counterpart of the avocado
marketing letter agreement referred to in Article 6.

          (d) Certificates. A copy of the resolutions adopted by Limco’s Board of Directors
authorizing and approving the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, certified by an officer of Limco; a certificate of incumbency of Limco in form and substance reasonably satisfactory to Calavo or its
counsel; and the Certificate of the Chief Executive Officer of Limco described in Section 15.7.

          (e) Certificate of Public Official. A certificate, dated not more than five (5) days prior
to the Initial Closing Date, of the Secretary of the State of Delaware certifying that Limco is a
corporation in good standing as a domestic corporation and has paid all corporation taxes payable
in that jurisdiction.

          (f) Standstill Agreements. Duly executed counterparts of the two Standstill Agreements in
the form of Exhibits 8A and 8B hereof, executed by the Persons described in Articles 8 above.

          (g) Other Documents. The Certificate of Incorporation and Bylaws of Limco, as amended to
date, and all other documents and instruments which, in the reasonable opinion of Calavo or its
counsel, will be necessary to effectuate the terms and conditions of this Agreement, the
obligations of Limco hereunder, and the consummation of the transaction contemplated hereby.

     9.3 Deliveries by Calavo at the Initial Closing. At the Initial Closing, Calavo shall
deliver to Limco:

          (a) Purchase Price. The purchase price for the Limco Shares.

          (b) Calavo Shares. One or more certificates, evidencing the Calavo Shares, duly executed
and issued in the name of Limco, together with a completed and signed Form D. The Calavo shares
will be “restricted securities” under federal and state securities laws and will be issued with a
legend restricting any form of transfer for a period of one year from issuance and thereafter only pursuant to an exemption from registration and an
opinion of counsel,

8

 

reasonably acceptable to Calavo that an exemption from registration is available with respect to the proposed transactions. Such legend shall also reference Calavo’s
right of first refusal provided in Article 16 hereof.

          (c) Office Lease. A duly executed counterpart of the Office Lease in the form of Exhibit 5
hereof.

          (d) Avocado Marketing Letter Agreement. A duly executed counterpart of the avocado
marketing letter agreement referred to in Article 6.

          (e) Standstill Agreements. Duly executed counterparts of the two Standstill Agreements in
the form of Exhibits 8A and 8B hereof, executed by the Persons described in Article 8 above.

          (f) Certificates. A copy of the resolutions adopted by Calavo’s Board of Directors
authorizing and approving the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, certified by an officer of Calavo; a certificate of incumbency of
Calavo in form and substance reasonably satisfactory to Limco or its counsel; and the Certificate
of the Chief Executive Officer of Calavo described in Section 14.7.

          (g) Certificate of Public Official. A Certificate, dated not more than five (5) days prior
to the Initial Closing Date, of the California Secretary of State certifying that Calavo is in good
standing as a domestic corporation of that state and has paid all corporation taxes payable in that
state.

          (h) Other Documents. The Articles of Incorporation and Bylaws of Calavo, as amended to
date, and any and all other documents and instruments which, in the reasonable opinion of counsel
to Limco, will be necessary to effectuate the terms and conditions of this Agreement and the
obligations of Calavo hereunder.

     9.4 Mission Closing and Mission Closing Date. Calavo and Mission may reopen their
negotiations regarding a possible acquisition of Mission by Calavo or other business combination
transaction between those two entities. In order to facilitate such potential negotiations, Limco
and Calavo have agreed that if Mission fails to repurchase the Mission Shares from Limco, Calavo
and Limco may postpone the sale of the Mission Shares by Limco to Calavo for a limited period of
time. Accordingly, Limco may, in its sole discretion, postpone the closing for the purchase and
sale of the Mission Shares (the “Mission Closing”) to a date not later than 180 days following the
Initial Closing Date designated by Limco to Calavo in writing not less than 75 days in advance (the
“Mission Closing Date”). In the event that Calavo and Mission enter into a binding agreement prior
to the Mission Closing Date for a merger or other business combination of such entities and/or
their affiliates, either prior or subsequent to Limco’s designation of the Mission Closing Date,
Limco may, at its sole election, either proceed with the Mission Closing on the sale of the Mission
Shares to Calavo for a cash purchase price of $5,474,520 or dispose of the Mission Shares through
the merger or other business combination of Calavo and Mission. At the Mission Closing, (i) Limco
shall deliver to Calavo one or more certificates representing the Mission Shares, duly endorsed or
accompanied by executed instruments of transfer sufficient to transfer title to the Mission Shares
to Calavo beneficially and of record and free and clear of all liens and encumbrances other than
the obligations thereafter imposed upon Calavo by the Shareholder Agreement dated June 5, 1990, and (ii) Calavo shall deliver to Limoniera the
purchase price for the Mission Shares in the amount of $5,474,520, by wire transfer to an account
designated by Limco.

ARTICLE 10

REPRESENTATIONS AND WARRANTIES OF LIMCO

     Limco makes the following representations and warranties to Calavo, subject to and qualified
by any fact or facts disclosed in the Schedules that are provided to Calavo as required in this
Agreement. Disclosure of an item in a Schedule corresponding to a particular Section in this
Agreement shall, should the existence of the item or its

9

 

contents be relevant to any other Section, be deemed to be disclosed in that other Section whether or not an explicit cross-reference appears
as long as it is reasonably apparent that such disclosure applies to any such other Section.

     10.1 Organization and Qualification of Limco. Limco is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware and has the requisite
corporate power and authority to own or lease and to operate its properties and to carry on its
business as now being conducted. The copies of the Certificate of Incorporation, as amended to
date, certified by the Delaware Secretary of state, and of the Bylaws of Limco, certified by the
Secretary of Limco to be delivered to Calavo at the Initial Closing, will be complete and correct
as of the Initial Closing Date.

     10.2 Capitalization of Limco and Subsidiaries. The authorized capital stock of Limco
consists of 3,000,000 shares of Common Stock, par value $.01 per share of which 975,171 shares are
issued and outstanding, and 100,000 shares of Preferred Stock, par value $100.00 per
share, of which no shares of Series A and 30,000 shares of Series B are issued and outstanding.
There are no treasury shares. Except as set forth in Schedule 10.2 hereto, there are no
outstanding options, warrants, scripts, rights to subscribe to or commitments or agreements of any
character whatsoever relating to or securities or rights convertible into or exchangeable for,
shares of capital stock or other securities or interest in profits of Limco or any Limco
Subsidiary, and there are no contracts, commitments, understandings, arrangements or restrictions
by which Limco or any Limco Subsidiary is now or in the future would be bound to issue any
additional shares of capital stock, other securities or interests in profits. All issued and
outstanding shares of capital stock of Limco and each Limco corporate Subsidiary are duly
authorized, validly issued, fully paid and nonassessable. All voting rights in Limco and each
Limco Subsidiary are vested exclusively in common stock. On the Initial Closing Date, the Limco
Shares will be newly issued and free of all liens and encumbrances. On the Initial Closing Date,
the stock ownership of Limco’s Subsidiaries will be as set forth in Schedule 10.3 hereto and will
be free of all liens and encumbrances. None of the Limco Common Stock or Preferred Stock is
entitled to any preemptive right; and Limco’s Certificate of Incorporation and Bylaws do not
provide Limco with a right of first refusal to purchase any Limco Common Stock or restrict the sale
or other transfer of any Limco Common Stock.

     10.3 Subsidiaries. Schedule 10.3 hereto lists each corporation, limited liability company
and other entity, which Limco controls directly or indirectly or in which Limco has an ownership
interest, direct or indirect, of record or beneficially, whether in capital stock or other equity
security, each of which is referred to in this Agreement as a Subsidiary. Except as set forth in
Schedule 10.3. Limco does not own, directly or indirectly, any capital stock or other equity
securities of any corporation or have any direct or indirect equity or ownership interest in any business entity including, without
limitation, business vehicles in the nature of joint ventures and partnerships. Each Limco
Subsidiary is duly organized, validly existing and in good standing under the laws of its
respective jurisdiction of organization, and has the power and authority to own its properties and
to carry on its business as now conducted. Each Limco Subsidiary is duly licensed, authorized or
qualified to transact business in, and is in good standing in each jurisdiction in which the
properties owned or leased or the activities conducted by it makes such licensing, authorization or
qualification necessary, except where the failure to be so licensed, authorized qualified or the
failure to be in such good standing would not have a material adverse effect on the business,
financial condition or operations of Limco and its Subsidiaries taken as a whole. Schedule 10.3
hereto lists, for each Limco Subsidiary, its form of organization, if it is a corporation, the
number of shares of capital stock or other equity securities authorized, issued and outstanding,
and the holders of record and beneficially of all issued capital stock or other equity securities.

     10.4 Power and Authority. Limco has the requisite corporate power and authority to execute
and deliver this Agreement and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement by Limco and the consummation by Limco of the transactions
contemplated hereby have been duly authorized by the Board of Directors of Limco and no other
corporate proceedings on the part of Limco are necessary to authorize this Agreement and the
transactions contemplated hereby. This Agreement has been duly executed and delivered by Limco
and, assuming this Agreement constitutes a valid and binding obligation of Calavo, constitutes a
valid and binding obligation of Limco, enforceable against Limco in accordance with its terms,
except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting
the enforcement of creditors’ rights in general and except to the extent that the availability of
equitable

10

 

remedies, including specific performance, is subject to the discretion of the court
before which any proceeding therefor may be brought.

     10.5 Investment. Limco understands that the Calavo Shares have not been, and will not be,
registered under the Securities Act or under any state securities law, and are being offered and
sold in reliance upon federal and state exemptions for a transaction not involving any public
offering. Limco (1) is acquiring the Calavo Shares solely for its own account for investment
purposes, and not with a view to the distribution thereof, (2) is a sophisticated investor with
knowledge and experience in business and financial matters, (3) has received certain information
concerning Calavo and has had the opportunity to obtain additional information as desired in order
to evaluate the merits and the risks inherent in holding the Calavo Shares, (4) is able to bear
the economic risk and lack of liquidity inherent in holding the Calavo Shares, and (5) is an
Accredited Investor. Limco’s representations and warranties in this Section 10.5 shall not be
construed as prohibiting it from selling or otherwise transferring the Calavo Shares at any time
subsequent to the first anniversary of the Initial Closing in compliance with applicable federal
and state securities laws and regulation and in compliance with the right of first refusal
contained in Section 16.2

     10.6 No Violation or Conflict. Neither the execution and delivery of this Agreement by
Limco nor the consummation of the transactions contemplated hereby nor compliance by Limco with any
of the provisions hereof will violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration under, or result in
the creation of any lien upon any of the properties or assets of Limco or any Limco Subsidiary
under any of the terms, conditions or provisions of (i) the Certificate or Articles of
Incorporation or the Bylaws of Limco or any Limco Subsidiary, or (ii) any note, bond, mortgage,
indenture, deed of trust, license, lease, agreement or other instrument or obligation to which
Limco or any Limco Subsidiary is a party or to which they or any of their respective properties or
assets may be subject, or (iii) statute, regulation, judgment, ruling, order, writ, injunction,
decree, rule or regulation applicable to Limco or any Limco Subsidiary or any of their respective
properties or assets, except for such violations, conflicts, breaches, defaults, terminations,
accelerations or creations of liens which, individually or in the aggregate, would not have any
material adverse effect on the business, operations or financial conditions of Limco and the Limco
Subsidiaries taken as a whole.

     10.7 Financial Statements. Except as set forth in Schedule 10.7, the consolidated audited
financial statements of Limco and the Limco Subsidiaries for the fiscal year ended October 31,
2004, consisting of the consolidated balance sheet as of such date and the related statements of
operations, changes in stockholders’ equity and cash flows for the year then ended (the “Financial
Statements”), which Financial Statements and the opinion of Deloitte and Touche thereon dated
February 8, 2005, have been furnished to Calavo, present fairly in all material respects, the
financial position of Limco as of such date and the results of operations and cash flows for the
year then ended, in accordance with GAAP, applied on a consistent basis throughout such period.
Except as set forth in Schedule 10.7, the Financial Statements, and all accompanying exhibits and
schedules were true complete and correct in all respects as of the dates thereof, were prepared in accordance with GAAP, applied
on a consistent basis throughout such period, except as otherwise stated therein, and presented
fairly the financial position as at the date of, and the results of operations for the periods
covered by, such statements of Limco and the Limco Subsidiaries. The unaudited consolidated and
consolidating balance sheets and statements of income changes in stockholders equity and cash flow
(the “Most Recent Financial Statements”) of Limco as of and for the months ending April 30, 2005
(“Most Recent Fiscal Month”) have not been prepared in accordance with GAAP, but nevertheless
present fairly, in all material respects, the financial condition of Limco as of such date and the
result of operations of Limco for such periods and are consistent with the books and records of
Limco. Limco’s management has disclosed, based on its most recent evaluation to Limco’s auditors
and the audit committee of Limco’s Board of Directors, (i) all significant deficiencies in the
design or operation of internal control over financial reporting which are reasonably likely to
adversely affect Limco’s ability to record, process, summarize and report financial information and
(ii) any fraud, whether or not material, that involved management or other employees who have a
significant role in Limco’s internal control over financial reporting.

     10.8 Absence of Certain Changes or Events. Except as and to the extent contemplated by
this Agreement, since the date of the Most Recent Financial Statements, Limco has conducted its
business only in the ordinary course, and there has not been, with respect to Limco, (a) any
material adverse change in or to such business, (b) any material damages, destruction or loss
(whether covered by insurance or not), (c) any material change by Limco in accounting

11

 

methods, principles or practices; or (d) any commitment, agreement or understanding respecting any employee
of Limco which has or would have the effect of increasing such employee’s compensation or benefits other
than in accordance with past Limco policies.

     10.9 Title to Assets. Limco owns and has title to its properties and assets as reflected
in the Financial Statements, subject to no material liens, mortgages, pledges, encumbrances or
charges of any kind, except as disclosed in the Financial Statements or as disclosed in Schedule
10.9, and except for non-delinquent liens for current taxes and assessments. All leases by which
Limco or its Subsidiaries lease real or personal property are in good standing and are valid and
effective in accordance with their respective terms, and there exists no material default or other
occurrence or condition which would result in a material default or termination of any of those
leases.

     10.10 Material Contracts. Set forth in Schedule 10.10 is a true and correct list of (i)
all plans, contracts or understandings providing for bonuses, pensions, options, deferred
compensation, retirement payments, royalty payments, profit sharing or similar understandings with
respect to any present or former officer, director or consultant, (ii) any contract or agreement
with any labor union, (iii) any contract for the future purchase, acquisition or sale of products
or rights to products or performance of services over a period of more than three months from the
date hereof not made in the ordinary course of business, (iv) all leases of real property,
including all amendments and modifications, (v) any contract containing covenants limiting the
freedom of Limco or any of the Limco Subsidiaries to compete in any line of business or with any
person; and (vi) every other contract to which Limco or any of its Subsidiaries is a party which
could reasonably be expected to result in annual payments by or to Limco or any of its Subsidiaries
in excess of Two Hundred Thousand Dollars ($200,000) or cumulative payments by or to or any of the Limco Subsidiaries in excess of Two Hundred Thousand Dollars ($200,000), except
for contracts entered into in the ordinary course of business which are terminable upon less than
thirty (30) days’ notice by either party thereto without penalty or liability (collectively,
“Material Contracts”). Limco heretofore has delivered or made available to Calavo true and correct
copies of all Material Contracts. Neither Limco nor any of its Subsidiaries is in default or
breach, and no event has occurred or shall occur by reason of the transactions contemplated herein
which would constitute a default or breach, where such default or breach would entitle another
party thereto to accelerate or terminate such Material Contract or otherwise impose a material
penalty or forfeiture thereunder (whether with or without notice, lapse of time or the happening or
occurrence of any other event), under any Material Contract. All Material Contracts are valid and
binding agreements, and to the knowledge of Limco, there are no facts or circumstances which make a
default under any Material Contract by any party thereto likely to occur subsequent to the date
hereof.

     10.11 Compliance with Applicable Laws. Except as set forth in Schedule 10.11, and except
for possible violations which individually or in the aggregate do not, and insofar as reasonably
can be foreseen, in the future will not, have a material adverse effect on Limco, Limco and the
Limco Subsidiaries are in compliance with all requirements of law, federal, state or local, and of
all governmental bodies or agencies having jurisdiction over it or the conduct of its business.
Limco is not presently charged with, nor to its knowledge, is Limco under any investigation or the
subject of any threatened proceeding with respect to any violation of any statute, law, ordinance,
rule or regulation relating to Limco.

     10.12 Litigation and Liabilities. Except as disclosed in Schedule 10.12, there are no actions, suits, investigations or
proceedings pending or, to the knowledge of Limco threatened against Limco or any Limco Subsidiary;
nor, to the knowledge of Limco, are there any facts or circumstances that could reasonably be
expected to result in a claim for damages that, if adversely determined, would be reasonably likely
to result in any claims against or obligations or liabilities of Limco or any of the Limco
Subsidiaries that, alone or in the aggregate, would have any material adverse effect on Limco.

     10.13 Brokers, Finders, Investment Bankers and Financial Advisors. No broker, finder,
investment banker or financial advisor is entitled to any brokerage, finder’s or other fee or
commission from Limco in connection with the transactions contemplated by this Agreement based upon
arrangement made by or on behalf of Limco.

     10.14 Labor Relations. To Limco’s knowledge, it has not engaged in any unfair labor
practice, and has not illegally discriminated on the bases of age or sex in its employment
conditions or practices. Except as set forth in Schedule 10.14, there are no unfair labor practice
grievances or age or sex discrimination complaints pending, or, to Limco’s knowledge, threatened
against Limco before any governmental entity and, to the knowledge of Limco, no basis therefore.

12

 

     10.15 Environmental Matters. 

          (a) There is no civil, criminal or administrative action, suit, claim, notice of violation or
proceeding pending or, to Limco’s knowledge, threatened against Limco respecting the storage, use,
release or burial of a hazardous substance (for the purposes of this Agreement, as defined under
any applicable federal, state or local statute, rule, regulation or other law and whether solid,
liquid or gaseous) on, from or under premises occupied by Limco.

          (b) To Limco’s knowledge, it has no liability (absolute, accrued, contingent or otherwise),
including, without limitation, clean-up obligations or liabilities to third parties for personal
injuries or other torts, for any contamination of air, soil or water with hazardous substances.

          (c) Limco is, to its knowledge, operating its business in material compliance with all
Environmental Health and Safety Requirements.

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     10.16 Intellectual Property. Schedule 10.16 hereto contains an accurate and complete list
of all intellectual property (the “Intellectual Property”) owned by or licensed to Limco, together
with registration data where applicable and descriptive identification as appropriate. Limco owns
or has the right to use all of the Intellectual Property used in or necessary for the conduct of
its business as now conducted, without any known material infringement upon, or conflict with the
rights of, or claim of ownership or other rights by, any other person. Limco has received no
written notice of any claimed infringement or conflict with respect to any of the foregoing.

     10.17 Permits. Limco and each Limco Subsidiary hold licenses, certificates, permits,
franchises and rights from all appropriate persons, governmental entities and public authorities
necessary for the conduct of their respective businesses as now conducted, except where the failure
to obtain the same would not have a material adverse effect on the business operations or financial
condition of Limco. Neither the execution or delivery of this Agreement nor the consummation of
the transactions contemplated herein will result in the termination of any license, certificate,
permit, franchise or right held by Limco or any Limco Subsidiary.

     10.18 Liabilities and Disclosure. Limco has no material liabilities of any nature, whether
accrued, absolute, contingent or otherwise (including, without limitation, liabilities as guarantor
or otherwise with respect to obligations of others), except as stated or adequately reserved against
in the Financial Statements, disclosed in the Schedules hereto, or incurred in the ordinary course
of business after April 30, 2005. There is, to Limco’s knowledge, no fact which, in its reasonable
judgment and belief, does or might materially and adversely affect the business, prospects,
condition, affairs or operations of Limco or any Limco Subsidiary or any of their properties or
assets which has not been set forth in this Agreement or the Schedules.

     10.19 Changes. Except as set forth on Schedule 10.19, since the Most Recent Financial
Statements, there has not been any material adverse change in the business, financial conditions,
results of operations or prospects of Limco or any Limco Subsidiary, except such changes which
could not, individually or in the aggregate, have a material adverse effect on the business,
financial condition or results of operations of Limco or and Limco Subsidiaries.

     10.20 Tax Returns and Payments. Except as set forth in Schedule 10.20, Limco and its
Subsidiaries have timely filed all federal, state, and local tax returns which were required to be
filed by or with respect to Limco or any of the Limco Subsidiaries, and have paid or, where payment
is not yet required, have established adequate tax reserves for the payment of all Taxes with
respect to the periods covered by such returns. Nether Limco nor any of the Limco Subsidiaries
have consented to any waiver or extension of any statute of limitations relating to the assessment
or collection of any federal, state or local Tax. There are no deficiency assessments against
Limco or any of the Limco Subsidiaries.

     10.21 Insurance Policies. Schedule 10.21 sets forth the following information with respect
to each insurance policy (including policies providing property, casualty, liability, and workers’ compensation coverage and bond and surety arrangements) to which Limco has been a party, a
named insured, or otherwise the beneficiary of coverage at any time from fiscal year 2003 to the
date hereof:

          (a) the name of the insurer, the name of the policyholder, and the name of each covered
insured;

          (b) the policy number and the period of coverage;

          (c) the scope (including an indication of whether the coverage was on a claims made,
occurrence, or other basis) and amount (including a description of how deductibles and ceilings are
calculated and operate) of coverage; and

          (d) a description of any retroactive premium adjustment or other loss-sharing arrangements.
With respect to each such insurance policy: (1) the policy is legal, valid, binding, enforceable,
and in full force and effect; (2) the policy will continue to be legal, valid, enforceable, and in
full force and effect on identical terms following the consummation of the transactions
contemplated hereby; (3) neither Limco nor any other party to the policy is in breach or default
(including with respect to the payment of premiums or the giving of notices), and no

14

 

event has occurred which, with notice or the lapse of time, would constitute such a breach or default, or
permit termination, modification, or acceleration, under the policy; and (4) no party to the policy
has repudiated any provision thereof. Schedule 10.21 also describes any self-insurance
arrangements affecting any of Limco’s properties or operations.

     10.22 Employee Benefit Plans. 

          (a) Schedule 10.22 contains a true and complete list of all of the following agreements,
arrangements, practices, or plans, whether written or oral, which are presently in effect with
respect to Limco and under which Limco continues to have liability or obligations thereunder: (i)
“employee pension benefit plans” and “employee benefit plans” as defined respectively in Section 3(2) and 3(3)
of ERISA, including “multiemployer” plans as defined in Section 3(37) of ERISA, or a “multiple
employer” plan within the meaning of Section 4063 or 4064 of ERISA; and (ii) any other pension,
profit sharing, supplemental unemployment, retirement, deferred compensation, stock purchase, stock
option, incentive, bonus, vacation, severance, disability, hospitalization, medical insurance or
other employee benefit plans, practice, policies, arrangements, or programs for the benefit of any
employee, former employee, director, or agent of Limco or any Limco Subsidiary, whether or not any
of the foregoing is funded, whether formal or informal, and whether or not subject to ERISA. (The
plans or programs described in clauses (i) and (ii) are herein collectively referred to as the
“Limco Plans.”) Limco has delivered or made available to Calavo true and complete copies of all
(a) Limco Plans, related trust arrangements and funding arrangements and any amendments thereto,
(b) the most recent summary plan descriptions, together with the most recent summary material
modifications required under ERISA with respect to each Limco Plan, (c) the most recent annual
reports (series 5500 and schedules thereto) required under ERISA with respect to each Limco Plan,
(d) the two most recent actuarial valuations, if applicable, prepared for any Limco Plan, (e) the
most recent IRS determination letters with respect to each Limco Plan, and (f) all material
employer communications relating to each such Limco Plan.

          (b) Limco and its Subsidiaries are in material compliance with the requirements prescribed by
any and all statutes, orders, governmental rules or regulations applicable to the Limco Plans, and
all reports and disclosures relating to the Limco Plans required to be filed with or furnished to
governmental agencies, participants or beneficiaries prior to the Initial Closing Date have been
or will be filed or furnished in a timely manner and in accordance with applicable law.

15

 

          (c) Except as described in Schedule 10.22, neither Limco nor any Limco Subsidiary has ever
contributed or been required to contribute to any multiemployer plan as defined in Section 3(37) of
ERISA.

          (d) Neither Limco, any Limco Subsidiary nor any other “disqualified person” or “party in
interest” (as defined in Section 4975 of the Code and Section 3 of ERISA), has engaged in any
“prohibited transaction” as such term is defined in Section 4975 of the Code or Section 406 of
ERISA, which could subject any of the Limco Plans (or their related trusts), Limco, any Limco
Subsidiary or any officer, director, or employee of Limco or any Limco Subsidiary or any trustee,
administrator or any other fiduciary of any of the Limco Plans to tax or penalty imposed under
Section 4975 of the Code or Section 502 of ERISA.

          (e) Except as set forth in Schedule 10.22, there are no material actions, audits, suits or
claims pending (other than routine claims for benefits) or, to the best knowledge of Limco ,
threatened, against any of the Limco Plans or any fiduciary of any of the Limco Plans or against
the assets of any of the Limco Plans.

          (f) Except as set forth in Schedule 10.22, Limco and its Subsidiaries have no obligation or
liability to any retired or former employee under any disability (long or short term),
hospitalization, medical, dental or life insurance plans (whether insured or self-insured) or other
employee welfare plan as defined in ERISA Section 3(1) maintained by Limco and its Subsidiaries,
other than as required by COBRA.

          (g) Each “group health plan” (within the meaning of Section 5000(b)(1) of the Code) maintained
by Limco or any of its affiliates has, as of the first day of each group health plan’s first plan
year beginning on or after July 1, 1986, been administered in compliance with the continuation coverage requirements contained in
and as provided under Section 4980B of the Code and any regulations promulgated or proposed
thereunder.

          (h) Except as set forth in Schedule 10.22, no payment which will be or may be made by Limco to
any employee, former employee, director or agent thereof will or could be characterized as an
“excess parachute payment: within the meaning of Section 280G(b)(1) of the Code and by reason of
the transactions contemplated herein.

          (i) Limco, to its knowledge, (i) is in compliance with all applicable federal and state laws,
rules and regulations respecting employment, employment practices, terms and conditions of
employment and wages and hours, in each case, with respect to employees and former employees of
Limco, (ii) has withheld all amounts

16

 

required by law to be withheld from the wages, salaries and other payments to employees and former employees of Limco, and (iii) is not liable for any arrears
of wages or any taxes or any penalty to comply with any of the foregoing, except for such
noncompliance, failure to withhold or liability which would not individually or in the aggregate
have a material adverse effect on Limco and its Subsidiaries taken as a whole.

          (j) Except as set forth in Schedule 10.22, neither the execution of this Agreement nor the
performance of the transactions contemplated herein will (either alone or upon the occurrence of an
additional event) constitute an event under any Limco Plan that will or may result in any payment,
acceleration, vesting or increase in benefits with respect to any employee, former employee, or
director of Limco.

          (k) Limco has made, and makes, no representations or warranties respecting the adequacy of
estimates of or reserves (if any) for post-retirement medical benefits for employees.

     10.23 Foreign Corrupt Practices Act. Neither Limco nor any Limco Subsidiary has made or
offered or agreed to offer anything of value to any foreign government official, political party or
candidate for governmental office nor have they taken any action which would cause Limco or any
Limco Subsidiary to be in violation of Sections 103b or 104 of the Foreign Corrupt Practices Act of
1977, as amended.

     10.24 Sarbanes-Oxley Compliance. Inasmuch as Limco is not a reporting company under the
Securities Exchange Act, it is not obligated to comply with the Sarbanes-Oxley Act of 2002. Limco
is not required by applicable laws and regulations to register its Common Stock under Section 12(g)
of the Securities Exchange Act.

     10.25 Transferability of the Limco Shares. Subject to compliance with the right of first refusal granted to Limco in Section 16.1:
beginning on the first anniversary of the Initial Closing Date, Calavo shall have the same right
and ability as other stockholders of Limco to sell the Limco Shares on the Pink Sheets (or on any
stock exchange, Nasdaq market or OTC Bulleting Board on which Limco’s Common Stock is then traded)
in accordance with the terms and conditions of Rule 144 under the Securities Act; and beginning on
the second anniversary of the Initial Closing Date, the Limco Shares will be freely transferable by
Calavo in accordance with Rule 144(k) under the Securities Act.

ARTICLE 11

REPRESENTATIONS AND WARRANTIES OF CALAVO

     Calavo makes the following representations and warranties to Limco, subject to and qualified
by any fact or facts disclosed in the Schedules that are provided to Limco as required in this
Agreement. Disclosure of an item in a Schedule corresponding to a particular Section in this Agreement shall, should the existence
of the item or its contents be relevant to any other Section, be deemed to be disclosed in that
other Section whether or not an explicit cross-reference appears as long as it is reasonably
apparent that such disclosure applies to any such other Section.

     11.1 Organization and Qualification of Calavo. Calavo is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of California and has the
requisite corporate power and authority to own or lease and to operate its properties and to carry
on its business as now being conducted. The copies of the Articles of Incorporation, as amended to
date, certified by the California Secretary of State, and of the Bylaws of the Calavo,

17

 

certified by the Secretary of the Calavo to be delivered to Limco at the Initial Closing, will be complete and
correct as of the Initial Closing Date.

     11.2 Capitalization of Calavo and Subsidiaries. The authorized capital stock of Calavo
consists of One Hundred Million (100,000,000) shares of Common Stock, ($.001) par value per share,
of which Thirteen Million Five Hundred Seven Thousand (13,507,000) shares are issued and
outstanding, and there are no treasury shares. Except as set forth in Schedule 11.2 hereto, there
are no outstanding options, warrants, scripts, rights to subscribe to or commitments or agreements
of any character whatsoever relating to or securities or rights convertible into or exchangeable
for, shares of capital stock or other securities or interest in profits of Calavo or any Calavo
Subsidiary, and there are no contracts, commitments, understandings, arrangements or restrictions
by which Calavo or any Calavo Subsidiary is now or in the future would be bound to issue any
additional shares of capital stock, other securities or interests in profits. All issued and
outstanding shares of capital stock of Calavo and each corporate Calavo Subsidiary are duly
authorized, validly issued, fully paid and nonassessable. All voting rights in Calavo and each Calavo
Subsidiary are vested exclusively in common stock. On the Initial Closing Date, the Calavo Shares
will be newly-issued, and free of all liens and encumbrances. On the Initial Closing Date, the
stock ownership of Calavo’s Subsidiaries will be as set forth in Schedule 11.3 hereto and will be
free of all liens and encumbrances. None of the Calavo Common Stock is entitled to any preemptive
right; and Calavo’s Articles of Incorporation and Bylaws do not provide Calavo with a right of
first refusal to purchase any Calavo Common Stock or restrict the sale or other transfer of any
Calavo Common Stock.

     11.3 Subsidiaries. Schedule 11.3 hereto lists each corporation, which Calavo controls
directly or indirectly or in which Calavo has an ownership interest, direct or indirect, of record
or beneficially, whether in capital stock or other equity security, each of which is referred to in
this Agreement as a Subsidiary. Except as set forth in Schedule 11.3, Calavo does not own,
directly or indirectly, any capital stock or other equity securities of any corporation or have any
direct or indirect equity or ownership interest in any business entity including, without
limitation, business vehicles in the nature of joint ventures and partnerships. Each Calavo
Subsidiary is duly organized, validly existing and in good standing under the laws of its
respective jurisdiction of organization, and has the power and authority to own its properties and
to carry on its business as now conducted. Each Calavo Subsidiary is duly licensed, authorized or
qualified to transact business in, and is in good standing in each jurisdiction in which the
properties owned or leased or the activities conducted by it makes such licensing, authorization or
qualification necessary, except where the failure to be so licensed, authorized qualified or the
failure to be in such good standing would not have a material adverse effect on the business,
financial condition or operations of Calavo and its Subsidiaries taken as a whole. Schedule 11.3 hereto lists, for each Calavo Subsidiary, its form of
organization, if it is a corporation, the number of shares of capital stock or other equity
securities authorized, issued and outstanding, and the holders of record and beneficially of all
issued capital stock or other equity securities.

     11.4 Power and Authority. Calavo has the requisite corporate power and authority to
execute and deliver this Agreement and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement by Calavo and the consummation by Calavo of the
transactions contemplated hereby have been duly authorized by the Board of Directors of Calavo and
no other corporate proceedings on the part of Calavo are necessary to authorize this Agreement and
the transactions contemplated hereby. This Agreement has been duly executed and delivered by
Calavo and, assuming this Agreement constitutes a valid and binding obligation of Limco,
constitutes a valid and binding obligation of Calavo, enforceable against Calavo in accordance with
its terms, except to the extent that enforceability may be limited by applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights
in general and except to the extent that the availability of equitable remedies, including specific
performance, is subject to the discretion of the court before which any proceeding therefor may be
brought.

     11.5 Investment. Calavo understands that the Limco Shares have not been, and will not be,
registered under the Securities Act or under any state securities law, and are being offered and
sold in reliance upon federal and state exemptions for a transaction not involving any public
offering. Calavo (1) is acquiring the Limco Shares solely for its own account for investment
purposes, and not with a view to the distribution thereof, (2) is a sophisticated investor with
knowledge and experience in business and financial matters, (3) has received certain information concerning Limco
and has had the opportunity to obtain additional information as desired in order to evaluate the
merits and the risks inherent in holding the Limco Shares, (4) is able to bear the economic risk
and lack of liquidity inherent in holding the Limco Shares, and (5) is an Accredited Investor.
Calavo’s representations and warranties in

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this Section 11.5 shall not be construed as prohibiting it from selling or otherwise transferring the Limco Shares at any time subsequent to the first
anniversary of the Initial Closing in compliance with applicable federal and state securities laws
and regulations and in compliance with the right of first refusal contained in Section 16.1.

     11.6 No Violation or Conflict. Neither the execution and delivery of this Agreement by
Calavo nor the consummation of the transactions contemplated hereby nor compliance by Calavo with
any of the provisions hereof will violate, conflict with, or result in a breach of any provision
of, or constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration under, or result in the creation
of any lien upon any of the properties or assets of Calavo or any Calavo Subsidiary under any of
the terms, conditions or provisions of (i) the Articles of Incorporation or the Bylaws of Calavo or
any Calavo Subsidiary, or (ii) any note, bond, mortgage, indenture, deed of trust, license, lease,
agreement or other instrument or obligation to which Calavo or any Calavo Subsidiary is a party or
to which they or any of their respective properties or assets may be subject, or (iii) statute,
regulation, judgment, ruling, order, writ, injunction, decree, rule or regulation applicable to
Calavo or any Calavo Subsidiary or any of their respective properties or assets, except for such
violations, conflicts, breaches, defaults, terminations, accelerations or creations of liens which, individually or in the aggregate, would not have any
material adverse effect on the business, operations or financial conditions of Calavo and the
Calavo Subsidiaries taken as a whole.

     11.7 Financial Statements and Reductions. Except as set forth in Schedule 11.7, the
consolidated audited financial statements of Calavo and the Calavo Subsidiaries for the fiscal year
ended October 31, 2004, consisting of the consolidated balance sheet as of such date and the
related statements of income, shareholders’ equity and cash flows for the year then ended (the
“Financial Statements”), which Financial Statements and the opinion of Deloitte and Touche thereon
dated January 12, 2005, have been furnished to Limco, present fairly, in all material respects, the
consolidated financial position of Calavo and the Calavo Subsidiaries at October 31, 2004, and the
results of their operations and cash flows for the year then ended, in accordance with GAAP,
applied on a consistent basis throughout such period. Except as set forth in Schedule 11.7, the
Financial Statements, and all accompanying exhibits and schedules were true, complete and correct
in all material respects as of the dates thereof, were prepared in accordance with GAAP, applied on
a consistent basis throughout such period, except as otherwise stated therein, and presented fairly
the financial position as at the date of, and the results of operations for the periods covered by,
such statements of the Calavo and the Calavo Subsidiaries. The Most Recent Financial Statements of
Calavo as of and for the Most Recent Fiscal Month have not been prepared in accordance with GAAP,
but nevertheless present fairly in all material respects, the financial condition of Calavo as of
such date and the results of operations of Calavo for such periods and are consistent with the
books and records of Calavo. Calavo’s management has disclosed, based on its most recent
evaluation to Calavo’s auditors and the audit committee of Calavo’s Board of Directors, (i) all
significant deficiencies in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect Calavo’s ability to record, process, summarize and
report financial information and (ii) any fraud, whether or not material, that involves management
or other employees who have a significant role in Calavo’s internal control over financial
reporting.

     11.8 Absence of Certain Changes or Events. Except as and to the extent contemplated by
this Agreement, since the date of the Most Recent Financial Statements, Calavo has conducted its
business only in the ordinary course, and there has not been, with respect to Calavo, (a) any
material adverse change in or to such business, (b) any material damage, destruction or loss
(whether covered by insurance or not), (c) any material change by Calavo in accounting methods,
principles or practices; or (d) any commitment, agreement or understanding respecting any employee
of Calavo which has or would have the effect of increasing such employee’s compensation or benefits
other than in accordance with past Calavo policies.

     11.9 Title to Assets. Calavo owns and has title to its properties and assets as reflected
in the Financial Statements, subject to no material liens, mortgages, pledges, encumbrances or
charges of any kind, except as disclosed in the Financial Statements or as disclosed in Schedule
11.9, and except for non-delinquent liens for current taxes and assessments. All leases by which
Calavo or its Subsidiaries lease real or personal property are in good standing and are valid and
effective in accordance with their respective terms, and there exists no material default or other
occurrence or condition which would result in a material default or termination of any of those
leases.

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     11.10 Material Contracts. Set forth in Schedule 11.10 is a true and correct list, with respect to Calavo and the Calavo
Subsidiaries, of (i) all plans, contracts or understandings providing for bonuses, pensions,
options, deferred compensation, retirement payments, royalty payments, profit sharing or similar
understandings with respect to any present or former officer, director or consultant, (ii) any
contract or agreement with any labor union, (iii) any contract for the future purchase, acquisition
or sale of products or rights to products or performance of services over a period of more than
three months from the date hereof not made in the ordinary course of business, (iv) all leases of
real property, including all amendments and modifications, (v) any contract containing covenants
limiting the freedom of Calavo or any of the Calavo Subsidiaries to compete in any line of
business or with any person; and (vi) every other contract to which Calavo or any of its
Subsidiaries is a party which could reasonably be expected to result in annual payments by or to
Calavo or any of its Subsidiaries in excess of Two Hundred Thousand Dollars ($200,000) or
cumulative payments by or to Calavo or any of its Subsidiaries in excess of Two Hundred Thousand
Dollars ($200,000), except for contracts entered into in the ordinary course of business which are
terminable upon less than thirty (30) days’ notice by either party thereto without penalty or
liability (collectively, “Material Contracts”). Calavo heretofore has delivered or made available
to Limco true and correct copies of all Material Contracts. Neither Calavo nor any of its
Subsidiaries is in default or breach, and no event has occurred or shall occur by reason of the
transactions contemplated herein which would constitute a default or breach, where such default or
breach would entitle another party thereto to accelerate or terminate such Material Contract or
otherwise impose a material penalty or forfeiture thereunder (whether with or without notice, lapse
of time or the happening or occurrence of any other event), under any Material Contract. All
Material Contracts are valid and binding agreements, and to the knowledge of Calavo, there are no facts or circumstances which make a
default under any Material Contract by any party thereto likely to occur subsequent to the date
hereof.

     11.11 Compliance with Applicable Laws. Except as set forth in Schedule 11.11, and except
for possible violations which individually or in the aggregate do not, and insofar as reasonably
can be foreseen, in the future will not, have a material adverse effect on Calavo, Calavo and its
Subsidiaries are in compliance with all requirements of law, federal, state or local, and of all
governmental bodies or agencies having jurisdiction over it or the conduct of its business. Except
as set forth in Schedule 11.11, Calavo is not presently charged with, nor to its knowledge, is
Calavo under any investigation or the subject of any threatened proceeding with respect to any
violation of any statute, law, ordinance, rule or regulation relating to Calavo.

     11.12 Litigation and Liabilities. Except as disclosed in Schedule 11.12, there are no
actions, suits, investigations or proceedings pending or, to the knowledge of Calavo, threatened
against Calavo or any Calavo Subsidiary; nor, to the knowledge of Calavo, are there any facts or
circumstances that could reasonably be expected to result in a claim for damages that, if adversely
determined, would be reasonably likely to result in any claims against or obligations or
liabilities of Calavo or any of the Calavo Subsidiaries that, alone or in the aggregate, would have
any material adverse effect on Calavo.

     11.13 Brokers, Finders, Investment Bankers and Financial Advisors. No broker, finder,
investment banker or financial advisor is entitled to any brokerage, finder’s or other fee or
commission from Calavo in connection with the transactions contemplated by this Agreement based
upon arrangement made by or on behalf of Calavo.

     11.14 Labor Relations. To Calavo’s knowledge, it has not engaged in any unfair labor
practice, and has not illegally discriminated on the basis of age or sex in its employment
conditions or practices. Except as set forth in Schedule 11.14, there are no unfair labor practice
grievances or age or sex discrimination complaints pending, or, to Calavo’s knowledge, threatened
against Calavo before any governmental entity and, to the knowledge of Calavo, there is no basis
therefor.

     11.15 Environmental Matters.

          (a) There is no civil, criminal or administrative action, suit, claim, notice of violation or
proceeding pending or, to Calavo’s knowledge, threatened against Calavo respecting the storage,
use, release or burial of a hazardous substance (for the purposes of this Agreement, as defined
under any applicable federal, state or local statute, rule, regulation or other law and whether
solid, liquid or gaseous) on, from or under premises occupied

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by Calavo; provided that the receding representation and warranty shall not be applicable to the real property in Santa Paula,
California that Calavo leases from Limco.

          (b) To Calavo’s knowledge, it has no liability (absolute, accrued, contingent or otherwise),
including, without limitation, clean-up obligations or liabilities to third parties for personal
injuries or other torts, for any contamination of air, soil or water with hazardous substances.

          (c) Calavo is, to its knowledge, operating its business in material compliance with all
Environmental Health and Safety Requirements.

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     11.16 Intellectual Property. Schedule 11.16 hereto contains an accurate and complete list
of all intellectual property (the “Intellectual Property”) owned by or licensed to Calavo, together
with registration data where applicable and descriptive identification as appropriate. Calavo owns
or has the right to use all of the Intellectual Property used in or necessary for the conduct of
its business as now conducted, without
any known material infringement upon, or conflict with the rights of, or claim of ownership or
other rights by, any other person. Calavo has received no written notice of any claimed
infringement or conflict with respect to any of the foregoing.

     11.17 Permits. Calavo and each Calavo Subsidiary hold licenses, certificates, permits,
franchises and rights from all appropriate persons, governmental entities and public authorities
necessary for the conduct of their respective businesses as now conducted, except where the failure
to obtain the same would not have a material adverse effect on the business operations or financial
condition of Calavo. Neither the execution or delivery of this Agreement nor the consummation of
the transactions contemplated herein will result in the termination of any license, certificate,
permit, franchise or right held by Calavo or any Calavo Subsidiary.

     11.18 Liabilities and Disclosure. Calavo has no material liabilities of any nature,
whether accrued, absolute, contingent or otherwise (including, without limitation, liabilities as
guarantor or otherwise with respect to obligations of others), except as stated or adequately
reserved against in the Financial Statements, disclosed in the Schedules hereto or incurred in the
ordinary course of business after April 30, 2005. There is, to the Calavo’s knowledge, no fact
which, in its reasonable judgment and belief, does or might materially and adversely affect the
business, prospects, condition, affairs or operations of Calavo or any Calavo Subsidiary or any of
their properties or assets which has not been set forth in this Agreement or the Schedules.

     11.19 Changes. Except as set forth on Schedule 11.19, since the Most Recent Financial
Statements, there has not been any material adverse change in the business, financial condition,
results of operations or prospects of Calavo or any Calavo
Subsidiary, except such changes which could not, individually or in the aggregate, have a material
adverse effect on the business, financial condition or results of operations of Calavo or any
Calavo Subsidiary.

     11.20 Tax Returns and Payments. Except as set forth in Schedule 11.20, Calavo and its
Subsidiaries have timely filed all federal, state, and local tax returns which were required to be
filed by or with respect to Calavo or any of the Calavo Subsidiaries, and have paid or, where
payment is not yet required, have established adequate tax reserves for the payment of all Taxes
with respect to the periods covered by such returns. Neither Calavo nor any of the Calavo
Subsidiaries have consented to any waiver or extension of any statute of limitations relating to
the assessment or collection of any federal, state or local Tax. There are no deficiency
assessments against Calavo or any of the Calavo Subsidiaries.

     11.21 Insurance Policies. Schedule 11.21 sets forth the following information with respect
to each insurance policy (including policies providing property, casualty, liability, and workers’
compensation coverage and bond and surety arrangements) to which Calavo has been a party, a named
insured, or otherwise the beneficiary of coverage at any time from fiscal year 2003 to the date
hereof:

          (a) the name of the insurer, the name of the policyholder, and the name of each covered
insured;

          (b) the policy number and the period of coverage;

          (c) the scope (including an indication of whether the coverage was on a claims made,
occurrence, or other basis) and amount (including a description of how deductibles and ceilings are
calculated and operate) of coverage; and

          (d) a description of any retroactive premium adjustment or other loss-sharing arrangements.
With respect to each such insurance policy that has not terminated: (1) the policy is legal, valid,
binding, enforceable, and in full force

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and effect; (2) the policy will continue to be legal,
valid, enforceable, and in full force and effect on identical terms following the consummation of
the transactions contemplated hereby; (3) neither Calavo nor any other party to the policy is in
breach or default (including with respect to the payment of premiums or the giving of notices), and
no event has occurred which, with notice or the lapse of time, would constitute such a breach or
default, or permit termination, modification, or acceleration, under the policy; and (4) no party
to the policy has repudiated any provision thereof. Schedule 11.21 also describes any
self-insurance arrangements affecting any of Calavo’s properties or operations.

     11.22 Employee Benefit Plans.

          (a) Schedule 11.22 contains a true and complete list of all of the following agreements,
arrangements, practices, or plans, whether written or oral, which are presently in effect with
respect to Calavo and under which Calavo continues to have liability or obligations thereunder:
(i) “employee pension benefit plans” and “employee benefit plans” as defined respectively in
Section 3(2) and 3(3) of ERISA, including “multiemployer” plans as defined in Section 3(37) of
ERISA, or a “multiple employer” plan within the meaning of Section 4063 or 4064 of ERISA; and (ii)
any other pension, profit sharing, supplemental unemployment, retirement, deferred compensation,
stock purchase, stock option, incentive, bonus, vacation, severance, disability, hospitalization,
medical insurance or other employee benefit plans, practice, policies, arrangements, or programs
for the benefit of any employee, former employee, director, or agent of Calavo or any Calavo
Subsidiary, whether or not any of the foregoing is funded,
whether formal or informal, and whether or not subject to ERISA. (The plans or programs
described in clauses (i) and (ii) are herein collectively referred to as the “Calavo Plans.”)
Calavo has delivered or made available to Limco true and complete copies of all (a) Calavo Plans,
related trust arrangements and funding arrangement and any amendments thereto, (b) the most recent
summary plan descriptions, together with the most recent summary material modifications required
under ERISA with respect to each Calavo Plan, (c) the most recent annual reports (series 5500 and
schedules thereto) required under ERISA with respect to each Calavo Plan, (d) the two most recent
actuarial valuations, if applicable, prepared for any Calavo Plan, (e) the most recent IRS
determination letters with respect to each Calavo Plan, and (f) all material employer
communications relating to each such Calavo Plan.

          (b) Calavo and its Subsidiaries are in material compliance with the requirements prescribed by
any and all statutes, orders, governmental rules or regulations applicable to the Calavo Plans, and
all reports and disclosures relating to the Calavo Plans required to be filed with or furnished to
governmental agencies,

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participants or beneficiaries prior to the Initial Closing Date have been or
will be filed or furnished in a timely manner and in accordance with applicable law.

          (c) Except as described in Schedule 11.22, neither Calavo nor any Calavo Subsidiary has ever
contributed or been required to contribute to any multiemployer plan as defined in Section 3(37) of
ERISA.

          (d) Neither Calavo, any Calavo Subsidiary nor any other “disqualified person” or “party in
interest” (as defined in Section 4975 of the Code and Section 3 of ERISA), has engaged in any
“prohibited transaction” as such term is defined in Section 4975 of the Code or Section 406 of
ERISA, which could subject any of the Calavo Plans (or their related trusts), Calavo, any
Calavo Subsidiary or any trustee, administrator or any other fiduciary of any of the Calavo
Plans to tax or penalty imposed under Section 4975 of the Code or Section 502 of ERISA.

          (e) Except as set forth in Schedule 11.22, there are no material actions, audits, suits or
claims pending (other than routine claims for benefits) or, to the knowledge of Calavo ,
threatened, against any of the Calavo Plans or any fiduciary of any of the Calavo Plans or against
the assets of any of the Calavo Plans.

          (f) Except as set forth in Schedule 11.22, Calavo and its Subsidiaries have no obligation or
liability to any retired or former employee under any disability (long or short term),
hospitalization, medical, dental or life insurance plans (whether insured or self-insured) or other
employee welfare plan as defined in ERISA Section 3(1) maintained by the Calavo Group, other than
as required by COBRA.

          (g) Each “group health plan” (within the meaning of Section 5000(b)(1) of the Code) maintained
by Calavo or any of its affiliates has, as of the first day of each group health plan’s first plan
year beginning on or after July 1, 1986, been administered in compliance with the continuation
coverage requirements contained in and as provided under Section 4980B of the Code and any
regulations promulgated or proposed thereunder.

          (h) Except as set forth in Schedule 11.22, no payment which will be or may be made by Calavo
to any employee, former employee, director or agent thereof will or could be characterized as an
“excess parachute payment: within the meaning of Section 280G(b)(1) of the Code and by reason of
the transactions contemplated herein.

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          (i) Calavo, to its knowledge, (i) is in compliance with all applicable federal and state laws,
rules and regulations respecting employment,
employment practices, terms and conditions of employment and wages and hours, in each case,
with respect to employees and former employees of Calavo, (ii) has withheld all amounts required by
law to be withheld from the wages, salaries and other payments to employees and former employees of
Calavo, and (iii) is not liable for any arrears of wages or any taxes or any penalty to comply with
any of the foregoing, except for such noncompliance, failure to withhold or liability which would
not individually or in the aggregate have a material adverse effect on Calavo and its Subsidiaries
taken as a whole.

          (j) Except as set forth in Schedule 11.22, neither the execution of this Agreement nor the
performance of the transactions contemplated herein will (either alone or upon the occurrence of an
additional event) constitute an event under any Calavo Plan that will or may result in any payment,
acceleration, vesting or increase in benefits with respect to any employee, former employee, or
director of Calavo.

          (k) Calavo has made, and makes, no representations or warranties respecting the adequacy of
estimates of or reserves (if any) for post-retirement medical benefits for employees.

     11.23 Exchange Act Reports. As of their respective dates, all reports filed by Calavo with
the Securities and Exchange Commission, after October 31, 2003 under the Securities Exchange Act
conformed in all material respects with the requirements of the Securities Exchange Act, the
Sarbanes-Oxley Act and the rules and regulations of the Commission thereunder.

     11.24 Foreign Corrupt Practices Act. Neither Calavo nor any Calavo Subsidiary has made or
offered or agreed to offer anything of value to any foreign government official, political party or
candidate for governmental office, nor have they taken any action which would
cause Calavo or any Calavo Subsidiary to be in violation of Sections 103b or 104 of the Foreign
Corrupt Practices Act of 1977, as amended.

ARTICLE 12

COVENANTS OF LIMCO

     12.1 Conduct of Business Prior to Initial Closing. Except as set forth in Schedule 12.1,
between the date of this Agreement and the Initial Closing Date, Limco and each Limco Subsidiary
will do the following, unless Calavo shall otherwise consent in writing:

          (a) Conduct Limco’s business only in the ordinary and usual course and refrain from changing
or introducing any method of management or operations except in the ordinary course of business and
consistent with prior practices;

          (b) Except for the possible sale of the Mission Shares to Mission and the repurchase of 6,906
shares of Limco common stock from Mission as described in Article 4 above, refrain from making any
purchase, sale or disposition of any asset or property other than in the ordinary course of
business, from purchasing

25

 

any capital asset costing more than Five Hundred Thousand Dollar
($500,000) and from mortgaging, pledging, subjecting to a lien or otherwise encumbering any of
Limco’s properties or assets;

          (c) Refrain from amending, modifying, extending or terminating any real property or equipment
lease, except as otherwise provided in this Agreement;

          (d) Refrain from incurring any contingent liability as a guarantor or otherwise with respect
to the obligations of others, and from incurring any other contingent or fixed obligation or
liabilities except those that are usual and normal in the ordinary course of business;

          (e) Except in accordance with past practice refrain from declaring, setting aside or paying
any dividend, making any other distribution in respect of its capital stock or making any direct or
indirect redemption, purchase or other acquisition of its stock;

          (f) Refrain from taking any action which would accelerate payment or other obligations of
Limco to its employees, and from making any change in the compensation payable or to become payable
to any of its officers, directors, employees or agents, except as contemplated by this Agreement;

          (g) Refrain from paying any loans from its officers or directors or making any other payments
to any of them, except normal salary payments in amount not exceeding those theretofore paid;

          (h) Use reasonable efforts to prevent any change with respect to its management and
supervisory personnel and banking arrangements except as contemplated by this Agreement;

          (i) Not amend, change or terminate any Material Contract;

          (j) Not change the Certificate of Incorporation or Bylaws of Limco or any Limco Subsidiary;
and

          (k) Not issue any capital stock at less than the fair market value of such stock on the date
of its issuance, except pursuant to a stock option or warrant that is outstanding as of the date of
this Agreement or except for an option that is subsequently granted pursuant to an employee stock
plan with an exercise price of at least the fair market value of such capital stock as of the grant
date; and

          (l) Not take any action which would cause the acceleration of any payments or other
obligations of Limco under any of such contracts without the prior consent of Calavo.

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     12.2 Access. Limco shall afford to Calavo and to the authorized officers, employees and agents of Calavo,
complete access at all reasonable times, from the date hereof to the Initial Closing Date, to their
officers, employees, agents, properties, books, records and contracts, and shall furnish Calavo all
financial, operating and other data and information as Calavo, through its officers, employees or
agents, may reasonably request, provided such requests for access and information do not
unreasonably interfere with the operations of Limco or any of the Limco Subsidiaries.

     12.3 Reasonable Efforts Regarding Mission Shares. After providing notice to Calavo
pursuant to Section 9.4 hereof designating the Misison Closing Date, Limco shall deliver to Mission
a letter signed by Limco setting forth the purchase price and all relevant terms for the purchase
of the Mission Shares by Calavo, and notifying Mission that the option periods with respect to the
rights of first refusal for the Mission Share have commenced. Calavo and Limco shall agree upon
the date that such letter shall be delivered to Mission, but such date shall not be so late as to
cause the Mission Closing Date to be more than 180 days following the Initial Closing Date.

12.4 Reasonable Efforts. Limco shall use its reasonable efforts to cause all of the
representations and warranties set forth in Article 9 to be true and correct on and as of the
Initial Closing Date; to perform all of the covenants set forth in this Article 11; and to cause
all of the conditions set forth in Article 15 to occur on or before the Closing Date.

ARTICLE 13

COVENANTS OF CALAVO

     13.1 Conduct of Business Prior to Initial Closing.
Except as set forth in Schedule 13.1, between the date of this Agreement and the Closing Date,
Calavo and each Calavo Subsidiary will do the following, unless Limco shall otherwise consent in
writing:

          (a) Conduct Calavo’s business only in the ordinary and usual course and refrain from changing
or introducing any method of management or operations except in the ordinary course of business and
consistent with prior practices;

          (b) Refrain from making any purchase, sale or disposition of any asset or property other than
in the ordinary course of business, from purchasing any capital asset costing more than Five
Hundred Thousand Dollars ($500,000) and from mortgaging, pledging, subjecting to a lien or
otherwise encumbering any of Calavo’s properties or assets; provided, however, that no provision of
this Agreement shall be construed as requiring Limco’s consent to a merger between Calavo and
Mission or other transaction between Calavo and Mission or as prohibiting Calavo from engaging in
such merger or other transaction;

          (c) Refrain from amending, modifying, extending or terminating any real property or equipment
lease, except as otherwise provided in this Agreement;

          (d) Refrain from incurring any contingent liability as a guarantor or otherwise with respect
to the obligations of others, and from incurring any other contingent or fixed obligation or
liabilities except those that are usual and normal in the ordinary course of business and except
for indebtedness incurred for the purpose of purchasing the Limco Shares and the Mission Shares;

27

 

          (e) Except in accordance with past practice, refrain from declaring, setting and or paying any
dividend, making any other distribution in respect of its capital stock or making any direct or
indirect redemption, purchase or other acquisition of its stock;

          (f) Refrain from taking any action which would accelerate payment or other obligations of
Calavo to its employees, and from making any change in the compensation payable or to become
payable to any of its officers, directors, employees or agents, except as contemplated by this
Agreement;

          (g) Refrain from paying any loans from its officers or directors or making any other payments
to any of them, except normal salary payments in amount not exceeding those theretofore paid;

          (h) Use reasonable efforts to prevent any change with respect to its management and
supervisory personnel and banking arrangements except as contemplated by this Agreement;

          (i) Not amend, change or terminate any Material Contract;

          (j) Not change the Articles of Incorporation or Bylaws of Calavo or any Calavo Subsidiary;

          (k) Not issue any capital stock as less than the fair market value of such stock on the date
of its issuance, except pursuant to a stock option or warrant that is outstanding as of the date of
this Agreement or except for an option that is subsequently granted pursuant to an employee stock
plan with an exercise price of at least the fair market value of such capital stock as of the grant
date; and

          (l) Not take any action which would cause the acceleration of any payments or other
obligations of Calavo under any of such contracts without the prior consent of Limco.

     13.2 Access. Calavo shall afford to Limco and to the authorized officers, employees and
agents of Limco, complete access at all reasonable times, from the date hereof to the Initial
Closing Date, to their officers, employees, agents, properties, books, records and contracts, and
shall furnish Limco all financial, operating and other
data and information as Limco, through its officers, employees or agents, may reasonably request,
provided such requests for access and information do not unreasonably interfere with the operations
of Calavo or any of the Subsidiaries.

     13.3 Reasonable Efforts. Calavo shall use its reasonable efforts to cause all of the
representations and warranties set forth in Article 11 to be true and correct on and as of the
Initial Closing Date; to perform all of the covenants set forth in this Article 13; and to cause
all of the conditions set forth in Article 14 to occur on or before the Initial Closing Date.

ARTICLE 14

CONDITIONS PRECEDENT TO LIMCO’S OBLIGATION TO CLOSE

     14.1 General. The obligation of Limco to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction, on or before the Initial Closing Date, of each and
every one of the following conditions all or any of which may be waived, in whole or in part, by
Limco for the purpose of consummating such transaction, but without prejudice to any other right or
remedy which Limco may have hereunder as a result of any

28

 

misrepresentation by, or breach of any
covenant or warranty of, Calavo contained in this Agreement or any certificate, Schedule, document
or instrument furnished by Calavo hereunder.

     14.2 Representations and Warranties. The representations and warranties made by Calavo in
this Agreement and in any certificate, schedule, document or instrument furnished to Limco at or
prior to the Initial Closing shall be true and correct in all respects on the Initial Closing Date
with the same force and effect as though such representations and warranties had been made on and
as of such date, (i) except for changes
contemplated by this Agreement, (ii) except that any representation or warranty that, by its
express terms, speaks only as of a specified earlier date need only be accurate as of such earlier
date, and (iii) except where the failure of such representations and warranties to be accurate,
individually or in the aggregate, has not had a Material Adverse Change or Condition with respect
to Calavo and would not be reasonably expected to have a Material Adverse Change or Conditions with
respect to Calavo..

     14.3 Investigations Fail to Disclose Material Adverse Change or Condition. Investigations
by Limco and its representatives shall not have disclosed any Material Adverse Change or Condition
with respect to Calavo.

     14.4 Covenants and Agreements. Calavo shall have duly performed in all material respects
all of the material covenants and agreements to be performed by it hereunder on or prior to the
Initial Closing Date.

     14.5 No Adverse Changes. Since the date of this Agreement, Calavo shall not have suffered
any Material Adverse Change or Condition including any delisting of Calavo’s common stock on the
NASDAQ Securities Market.

     14.6 No Proceedings. No preliminary or permanent injunction or other order, decree or
ruling issued by a court of competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, nor any statute, rule, regulation or executive order
promulgated or enacted by and governmental authority, shall be in effect which would prevent or
hinder the consummation of the transactions contemplated under this Agreement or which challenges
the validity or enforceability of this Agreement or any term or provision hereof.

     14.7 Certificates. Limco shall have received a Certificate of Calavo, dated the Initial
Closing Date, signed by its Chief Executive Officer, to the effect that, Sections 14.2, 14.4 and
14.5 have been fulfilled and such other certificates and documents as Limco may reasonably request
and as provided in Article 9 hereof.

ARTICLE 15

CONDITIONS PRECEDENT TO CALAVO’S OBLIGATION TO CLOSE

     15.1 General. The obligation of Calavo to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction, on or before the Initial Closing Date, of each and
every one of the following conditions all or any of which may be waived, in whole or in part, by
Calavo for the purpose of consummating such transaction, but without prejudice to any other right
or remedy which Calavo may have hereunder as a result of any misrepresentation by, or breach of any
covenant or warranty of, Limco contained in this Agreement or any certificate, Schedule, document
or instrument furnished by Limco hereunder.

     15.2 Investigations Fail to Disclose Material Adverse Change or Condition. Investigations
by Calavo and its representatives shall not have disclosed any Material Adverse Change or Condition
with respect to Limco.

     15.3 Representations and Warranties. The representations and warranties made by Limco in
this Agreement and in any certificate, schedule, document or instrument furnished to Calavo at or
prior to the Initial Closing shall be true and correct in all respects on the Initial Closing Date
with the same force and effect as though such representations and warranties had been made on and
as of such date, (i) except for changes
contemplated by this Agreement, (ii) except that any representation or warranty that, by its
express terms, speaks only as of a specified earlier date need only be accurate as of such earlier
date, and (iii) except where the failure of such representations and warranties to be accurate,
individually or in the aggregate, has not had a Material Adverse Change or Conditions with respect
to Limco and would not be reasonably expected to have a Material Adverse Change or Conditions with
respect to Limco.

     15.4 Covenants and Agreements. Limco shall have duly performed in all material respects
all of the material covenants and agreements to be performed by it hereunder on or prior to the
Initial Closing Date.

29

 

     15.5 No Adverse Changes. Since the date of this Agreement, Limco shall not have suffered
any Material Adverse Change or Conditions, including, without limitation, the cessation of trading
of Limco’s Common Stock on the Pink Sheets.

     15.6 No Proceedings. No preliminary or permanent injunction or other order, decree or
ruling issued by a court of competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, nor any statute, rule, regulation or executive order
promulgated or enacted by any governmental authority, shall be in effect which would prevent or
hinder the consummation of the transactions contemplated under this Agreement or which challenges
the validity or enforceability of this Agreement or any term or provision hereof.

     15.7 Certificates. Calavo shall have received a Certificate of Limco, dated the Initial
Closing Date, signed by its Chief Executive Officer, to the effect that, the conditions specified
in this Sections 15.3, 15.4 and 15.5 have been fulfilled and such other certificates
and documents as Calavo may reasonably request and as provided in Article 9 hereof.

ARTICLE 16

RIGHTS OF FIRST REFUSAL

     16.1 Limco Shares. Calavo shall not sell, transfer, assign, encumber or in any way dispose
of any of the Limco Shares or any right or interest therein without first giving written notice to
Limco in the manner provided in Article 20 hereof of Calavo’s intent to dispose of the Limco
Shares. Unless Calavo proposed to sell the Limco Shares on the Pink Sheets or other public market
on which Limco’s Common Stock is then traded, such notice shall specifically set forth the identity
of the proposed transferee, the number of Limco Shares to be transferred, the price per share or
other consideration for the Limco Shares and all terms and conditions of the proposed transaction,
including the terms of payment. For a period of sixty (60) days, following receipt of Calavo’s
notice, Limco shall have the option to purchase all, but not less than all, the Limco Shares
identified, at the same price and on the same terms as set forth in Calavo’s written notice. If
Limco elects to exercise its option, it shall notify Calavo in writing within such period and shall
pay the purchase price in the same manner as designated in Calavo’s notice. Any sale of all or
substantially all of the assets of Calavo or a “change in control” of Calavo by the acquisition of
a majority of its voting stock by any third party or group shall be deemed a “sale” of the Limco
Shares for purposes of triggering the right of refusal provided herein. Upon the occurrence of
such any event, Calavo shall so notify Limco in writing. For a period of 60 days following receipt
of such notice, Limco shall have the right to repurchase all, but not less than all, the Limco
Shares at a price per share, payable in cash, equal to the average
price per share over the 60-day period preceding Calavo’s notice at which Limco’s shares traded in
the “pink sheets” or other public market. If Calavo proposes to sell a specified number of the
Limco Shares on the Pink Sheets or other public market on which Limco’s Common Stock is then
traded, for a period of 30 days following receipts of such notice Limco shall have the right to
repurchase all or some of the specified Limco shares at a price per share, payable in cash, equal
to the average price per share over the 60-day period preceding Calavo’s notice at which Limco’s
shares traded in the “pink sheets” or other public market. Limco’s option is subject to any and
all legal restrictions on the ability of a corporation to repurchase its own shares. In order to
facilitate Limco’s right of first refusal, Calavo agrees that it will not assign any of the Limco
Shares to a nominee title holder. Calavo shall be entitled to sell or otherwise transfer any and
all Limco Shares that Limco does not purchase under the right of first refusal granted by this
Section 16.1, and any such sold or transferred shares shall cease to be subject to the right of
first refusal contained in this Section 16.1

     16.2 Calavo Shares. Limco shall not sell, transfer, assign, encumber or dispose of any of
the Calavo Shares or any right or interest therein without first giving written notice to Calavo in
the manner provided in Article 20 hereof of Limco’s intent to dispose of the Calavo Shares. Unless
Limco proposes to sell the Calavo Shares on the Nasdaq market or other public market on which
Calavo’s Common Stock is then traded, such notice shall specifically set forth the identity of the
proposed transferee, the number of Calavo Shares to be transferred, the price per share or other
consideration for the Calavo Shares and all terms and conditions of the proposed transaction,
including the terms of payment. For a period of sixty (60) days, following receipt of Limco’s
notice, Calavo shall have the option to purchase all,
but not less than all, the Calavo Shares identified, at the same price and on the same terms as set
forth in Limco’s written notice. If Calavo elects to exercise its option, it shall notify Limco in
writing within such period and shall pay the purchase price in the same manner as designated in
Limco’s notice. Any sale of all or substantially all of the assets of Limco or a “change in
control” of Limco by the acquisition of a majority of its voting stock by any third party or group
shall be deemed a “sale” of the Calavo Shares for purposes of triggering the right of refusal
provided herein. Upon the occurrence of such any event, Limco so shall notify Calavo in writing.

30

 

For a period of 60 days following receipt of such notice, Calavo shall have the right to repurchase
all, but not less than all, the Calavo Shares at a price per share, payable in cash, equal to the
average price per share over the 60-day period preceding Limco’s notice at which Calavo’s shares
traded on the Nasdaq market or other public market. If Limco proposes to sell a specified number
of the Calavo Shares on the Nasdaq market or other public market on which Calavo’s Common Stock is
then traded, for a period of 30 days following receipts of such notice Calavo shall have the right
to repurchase all or some of the specified Calavo Shares at a price per share, payable in cash,
equal to the average price per share over the 60-day period preceding Limco’s notice at which
Calavo’s shares traded on the Nasdaq market or other public market. Calavo’s option is subject to
any and all legal restrictions on the ability of a corporation to repurchase its own shares. In
order to facilitate Calavo’s right of first refusal, Limco agrees that it will not assign any of
the Calavo Shares to a nominee title holder. Limco shall entitled to sell or otherwise transfer
any and all Calavo Shares that Calavo does not purchase under the right of first refusal granted by
this Section 16.2, and any such sold or transferred shares shall cease to be subject to the right
of first refusal contained in this Section 16.2

ARTICLE 17

PUBLIC DISCLOSURE

     Limco and Calavo shall consult with each other, and to the extent practicable, agree before
issuing any press release or otherwise making any public statement with respect to the transactions
contemplated by this Agreement and will not issue any such press release or make any such public
statement prior to such consultation, except as may be required by law or any listing agreement
with the NASDAQ Stock Market. Calavo agrees to report the execution of this Agreement on a Form
8-K by the date prescribed by the Securities Exchange Act and to report the closing of the
transactions contemplated by the Initial Closing on a Form 8-K by the date prescribed by the
Securities Exchange Act.

ARTICLE 18

TERMINATION

     18.1 Termination. This Agreement may be terminated at any time prior to the Initial
Closing Date:

          (a) By mutual agreement of Limco and Calavo; or

          (b) By Calavo, at any time after August 1, 2005, if the Initial Closing has not occurred by
such date and the failure of the Initial Closing to occur is not caused by a breach of this
Agreement by Calavo; or

          (c) By Limco, at any time after August 1, 2005, if the Initial Closing has not occurred by
such date and the failure of the Initial Closing to occur is not caused by a breach of this
Agreement by Limco.

31

 

     18.2 Effect of Termination. In the event of the termination of this Agreement pursuant to
clause (a), (b) or (c) of Section 18.1, this Agreement shall forthwith become void and have no
effect, without any further liability or obligation on the part of either party to the other party.
However, if the Initial Closing does not occur because of the intentional breach of this Agreement
by either Calavo or Limco, (i) the breaching party shall reimburse the non-breaching party for its
legal fees, accounting fees and other out-of-pocket expenses that have been incurred by the
non-breaching party in connection with this Agreement, payable within ten days after receipt from
the non-breaching party of documentation of such expenses in reasonable detail, and (ii) the
breaching party shall be liable to the non-breaching party for damages incurred by the
non-breaching party as a result of the breaching party’s intentional breach of this Agreement. The
non-breaching party shall not, however, be entitled to obtain an award of punitive damages.

ARTICLE 19

SURVIVAL OF REPRESENTATIONS; INDEMNIFICATIONS

     19.1 Survival. All representations and warranties contained in or made pursuant to this
Agreement (including Exhibits and Schedules hereto) or in any certificate, document or statement
delivered pursuant hereto (the “Ancillary Documents”) shall be deemed made by the parties on the
respective dates of their execution of this Agreement (except for representations and warranties
that specifically speak as of an earlier date) and shall be deemed remade on the Initial Closing
Date, and all representations and warranties (as they may be supplemented) and all covenants,
indemnities and agreements shall survive the Initial Closing and any investigation conducted by any
party for a period of two (2) years (unless a claims for indemnity has been timely made within such
period as set forth below). Except as provided in Section 19.2.4, Calavo’s investigation of Limco
and its Subsidiaries and their business, assets and liabilities shall in no manner be
construed as relieving Limco from liability under this Agreement for a breach of any representation
or warranty made in this Agreement, and Limco’s investigation of Calavo and its subsidiaries and
their business, assets and liabilities shall in no manner be construed as relieving Calavo from
liability under this Agreement for a breach of any representation or warranty of Calavo made in
this Agreement.

     19.2 Indemnification.

          19.2.1 Limco.

After the Initial Closing and subject to Sections 19.2.3, and 19.2.4, Limco shall indemnify,
defend and hold Calavo, its shareholders, directors, officers, employees and agents harmless from,
and reimburse Calavo for, any damage, loss, fee, liability, cost or expense (including, without
limitation, the reasonable fees and expenses of counsel and others) resulting or arising from, or
incurred in connection with or based upon: (i) the inaccuracy as of the Initial Closing Date of any
representation or warranty of Limco which is contained in or made pursuant to this Agreement or any
Ancillary Documents and, (ii) Limco’s breach of or failure to perform any of its covenants or
agreements contained in or made pursuant to this Agreement or any Ancillary Document.

          19.2.2 Calavo. After the Initial Closing and subject to Sections 19.2.3 and 19.2.4, Calavo
shall indemnify and hold Limco, and its directors, officers, employees and affiliates harmless
from, and reimburse for any damage, loss, fee liability, cost or expense (including, without
limitation, the reasonable fees and expenses of counsel and others) resulting or arising from, or
incurred in connection with or based upon, (i) the inaccuracy as of the Initial Closing Date of any
representation or warranty of Calavo which is contained in or made pursuant to this Agreement or
any Ancillary Document; and (ii) Calavo’s breach of or failure to perform, comply with or fulfill
any covenant or agreement of Calavo contained in or made pursuant to this agreement or any
Ancillary Document.

          19.2.3 Notice/Defense. Upon discovery of any breach or claim hereunder or upon receipt of
any notice of any claim or suit subject to indemnification under Section 19.2.1 or 19.2.2 above,
the party seeking indemnification (“Indemnified Party”) shall promptly give notice thereof (and in
no event later than thirty days after receipt of actual notice thereof) to the party or parties
from whom indemnification is sought (“Indemnifying Party”) at the notice address pursuant to
Article 20 stating in reasonable detail the representation, warranty or other claims with respect
to which indemnity is demanded, the facts or alleged facts giving rise thereto, and the amount of
liability or asserted liability with respect to which indemnity is sought, and in the case of a
claim asserted against the party seeking indemnity, the Indemnified Party shall thereafter tender
to the Indemnifying Party the defense of such claims at the sole cost and expense of the
Indemnifying Party. Despite such a tender of defense, the party seeking indemnification shall in
any

32

 

case have a right to participate in the defense of any such tendered claim or suit; provided
that such participation shall be at such party’s sole cost and expense after the Indemnifying Party
has accepted such tender of defense, and that the Indemnifying Party shall have control of the
defense. In the event that the Indemnifying Party does not promptly and affirmatively accept such
tender of defense of any claim or suit, then the Indemnifying Party shall thereafter additionally
become liable for all costs incurred by the party seeking indemnification (including reasonable
attorneys’ fees) in enforcing such indemnification claim and/or defending against such claim or
suit which is subject to indemnification. No party which is entitled to indemnification under
Section 19.2.1 or 19.2.2 shall settle or compromise any such third party claim without the
prior written consent of the party from which it seeks or may seek indemnification, which consent
shall not be unreasonably withheld. The Indemnifying Party shall not settle the claim or suit
without the written consent of the Indemnified Party, which shall not be unreasonably withheld;
provided, however, that the Indemnified Party shall not be required to give its consent unless the
third-party claimant delivers to the Indemnified Party an unconditional release of all liability
with respect to the claim or legal proceeding. Any party seeking indemnification under Section
19.2.1 or 19.2.2 shall take all reasonable actions in the defense of third party claims for which
indemnification is sought. If notice is not given to the Indemnifying Party as specified, or if
any claim or suit be compromised or settled in any manner without the prior written consent (which
consent shall not be unreasonably withheld) of the Indemnifying Party, then no liability shall be
imposed upon the Indemnifying Party hereunder with respect to such claim.

          19.2.4 Waiver of Breach; Indemnification Limitations.

                    (a)Notwithstanding anything to the contrary in this Agreement, the completion of the Initial
Closing shall conclusively evidence the waiver by each party, for all purposes, of any occurring
prior to the Initial Closing by the other party of any representation, warranty, covenant or
agreement and of any right to indemnification with respect to such breach, if (but only if ) such
breach was expressly disclosed by the breaching party in writing to the non-breaching party prior
to the Initial Closing and if the non-breaching party nevertheless elected to complete the Initial
Closing.

          (b) Notwithstanding anything to the contrary in this Agreement, no claim shall be made by
Calavo or Limco for indemnification unless and until the
aggregate indemnified damages, losses, fees, liabilities, costs and expenses incurred by the
indemnified party exceed Five Hundred Thousand Dollars ($500,000), in which event the indemnified
party shall be entitled to full indemnification for its aggregate indemnified damages, losses,
fees, liabilities, costs and expenses in excess of Five Hundred Thousand Dollars ($500,000). The
indemnified damages, losses, fees, liabilities, cots and expenses of an indemnified party pursuant
to this Article 19 shall be net of any insurance proceeds actually received by the indemnified
party with respect to the indemnified amounts and shall be net of any tax benefits actually
realized by the indemnified party as a result of payments made by the indemnified party in
connection with the indemnified losses.

          (c) This Article 19 sets forth the sole and exclusive remedies of Calavo and Limco to obtain
monetary damages and reimbursement form the other party after the Initial Closing for a breach of
any representation, warranty or covenant that is contained in this Agreement or in an exhibit,
schedule or other document that is delivered at or prior to the Initial Closing pursuant to this
Agreement.

ARTICLE 20

MISCELLANEOUS

     20.1 Notices. Any notice or other communication required or which may be given hereunder
shall be in writing and shall be delivered personally, sent by facsimile, or sent by certified,
registered or express mail, postage prepaid, and shall be deemed given when so delivered
personally, telegraphed or sent by facsimile, or if mailed, three
(3) days after the date of deposit with the U.S. Postal Service, postage and applicable charges
prepaid, addressed as follows:

	 	 	 	 	 
	

	 	If to Limco:
	 	 
	 
	 	 	 	 
	

	 	Limoneira Company	 	 
	 
	 	 	 	 
	

	 	1141 Cummings Road	 	 

33

 

	 	 	 	 	 
	

	 	Santa Paula, CA 93060	 	 
	 
	 	 	 	 
	

	 	Attn: Harold S. Edwards	 	 
	 
	 	 	 	 
	

	 	      President & CEO	 	 
	 
	 	 	 	 
	

	 	Facsimile: (805)525-8211	 	 
	 
	 	 	 	 
	

	 	With a copy to:	 	 
	 
	 	 	 	 
	

	 	Lawrence E. Stickney, Esq.	 	 
	

	 	Walker, Wright, Tyler & Ward	 	 
	

	 	626 Wilshire Blvd., Suite 900	 	 
	

	 	Los Angeles, CA 90017	 	 
	

	 	Facsimile: (213) 623-5160	 	 
	 
	 	 	 	 
	

	 	If to Calavo:	 	 
	 
	 	 	 	 
	

	 	Calavo Growers, Inc.	 	 
	

	 	1141 A Cummings Road	 	 
	

	 	Santa Paula, CA 93060	 	 
	

	 	Attn: Lecil E. Cole, Chairman & CEO	 	 
	

	 	Facsimile: (805) 921-3245	 	 
	 
	 	 	 	 
	

	 	With a Copy to:	 	 
	 
	 	 	 	 
	

	 	Marc L. Brown, Esq.	 	 
	

	 	Troy & Gould, APC	 	 
	

	 	1801 Century Park East	 	 
	

	 	Suite 1600	 	 
	

	 	Los Angeles, CA 90067	 	 
	

	 	Facsimile: (310) 789-1469	 	 

     20.2 Entire Agreement. Except for the obligations of the parties under a Confidentiality
Agreement dated March 29, 2005 between Limco and Calavo (the “Confidentiality Agreement”), this
Agreement, including the Exhibits and Schedules hereto, sets
forth the entire agreement and understanding between the parties as to the subject matter hereof
and merges and supersedes all prior discussions, agreements and understandings of every kind and
nature between them, and no party hereto shall be bound by any covenant, condition, definition,
warranty or representation other than as expressly provided for in this Agreement or as may be on a
date subsequent to the date hereof duly set forth in writing signed by the party hereto which is to
be bound thereby.

     20.3 Waivers and Amendments. This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms and conditions hereof may be waived only by a written
instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No
delay on the part of any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege
hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude
any other or further exercise thereof or the exercise of any other right, power or privilege
hereunder. Except as otherwise expressly set forth in Article 19 or elsewhere in this Agreement,
the rights and remedies herein

34

 

provided are cumulative and are not exclusive of any rights or
remedies which any party may have in equity. The rights and remedies of any party arising out of
or otherwise in respect of any inaccuracy in or breach of any representation, warranty, covenant or
agreement contained in this Agreement shall in no way be limited by the fact that the act,
omission, occurrence or other sate of facts upon which any claim of any such inaccuracy or breach
is based may also be the subject matter of any other representation, warranty, covenant or
agreement contained in this Agreement (or
in any other agreement between the parties) as to which there is no inaccuracy or breach.

     20.4 Governing Law. This Agreement shall be governed and construed in accordance with the
laws of the State of California applicable to agreements made and to be performed entirely within
such State.

     20.5 No Assignment. Neither party to this Agreement may assign any right hereunder, nor
delegate any obligation, without the prior written consent of the other party.

     20.6 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     20.7 Headings. The headings in the Agreement are intended solely for convenience of
reference and shall be given no effect in the interpretation of this Agreement.

     20.8 Benefit to Parties. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. Except as provided in
Article 19 with respect to indemnification, this Agreement is intended solely for the benefit of
Calavo and Limco and their respective permitted successors and assigns and it is not the intention
of the parties to confer third-party beneficiary rights upon any other person.

     20.9 Validity. In the event that any provision of this Agreement shall be held invalid, the same shall not
affect in any respect whatsoever the validity of the remainder of this Agreement.

     20.10 Exhibits and Schedules. The Exhibits and Schedules attached hereto are part of this
Agreement as if set forth in full herein. Any material or information disclosed or set forth in
this Agreement or in any Exhibit or Schedule delivered in connection herewith shall be deemed set
forth at each relevant portion of this Agreement without the necessity of repetition thereof if the
other portion of this Agreement to which such disclosed material or information applies are
reasonably apparent from the disclosed material or information.

     20.11 Further Assurances. If, at any time, either of the parties hereto shall consider or
be advised that any further assignments or assurances in law are necessary or desirable to assure
itself the benefit of this Agreement according to the terms hereof or the title to any property or
rights transferable hereunder, the other party shall execute and make all such reasonable, proper
assurances and assignments and do all things reasonably necessary and proper to vest title in such
property or right in such party and otherwise carry out the terms of this Agreement.

     20.12 Transaction Expenses.

Subject to the provisions of Articles 18 and 19, whether or not the transactions contemplated
herein are consummated and, regardless of whether this Agreement is terminated, each party hereto
shall pay all of the costs and expenses incurred by it in connection with this Agreement or in
consummating the transactions contemplated hereby, including, without limitation, disbursements and
expenses of its attorneys, accountant and advisors.

35

 

     IN WITNESS WHEREOF, the parties hereto have executed this Stock Purchase Agreement as of the
date first above written.

	 	 	 	 	 
	 	 	LIMONEIRA COMPANY
	 
	 	 	 	 
	

	 	By:
	 	/s/ Harold Edwards
	

	 	 	 	 
	

	 	Its:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	By:
	 	/s/ Don Delmatoff
	

	 	 	 	 
	

	 	Its:
	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	CALAVO GROWERS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lecil Cole
	

	 	 	 	 
	

	 	Its:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	By:
	 	/s/ Arthur Bruno
	

	 	 	 	 
	

	 	Its:
	 	Chief Financial Officer

36

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