Document:

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                                                                    Exhibit 10.4

                              CALIFORNIA KOREA BANK

                             2000 STOCK OPTION PLAN

                            ADOPTED FEBRUARY 24, 2000

      1. PURPOSE. The purpose of the 2000 Stock Option Plan (the "Plan") is to
strengthen CALIFORNIA KOREA BANK (the "Bank") and those corporations which are
or hereafter become subsidiary corporations of the Bank, within the meaning of
Section 424(f) of the Internal Revenue Code of 1986, as amended (the "Code"), by
providing to participating employees and directors added incentive for high
levels of performance and for unusual efforts to increase the earnings of the
Bank and its subsidiary corporations. The Plan seeks to accomplish these
purposes and results by providing a means whereby such employees and directors
may purchase shares of the common stock of the Bank pursuant to (a) options
granted pursuant to the Incentive Stock Option Plan (the "Incentive Plan")
(Division A hereof) which will qualify as incentive stock options under Section
422 of the Code ("Incentive Options"), or (b) options granted pursuant to the
Non-Qualified Stock Option Plan (the "Non-Qualified Plan") (Division B hereof)
which are intended to be non-qualified stock options described in Treas. Reg.
Section 1.83-7 to which Section 421 of the Code does not apply ("Non-Qualified
Options"). (Hereinafter, the term "Options" shall collectively refer to
Incentive Options and Non-Qualified Options.)

      2. ADMINISTRATION. This Plan shall be administered by the Board of
Directors of the Bank (the "Board of Directors"). Any action of the Board of
Directors with respect to administration of the Plan shall be taken pursuant to
a majority vote of its members; provided, however, that with respect to action
taken by the Board of Directors in granting an option to an individual director,
such action must be authorized by the required number of directors without
counting the interested director, who shall abstain as to any vote on his
option. An interested director may be counted in determining the presence of a
quorum at a meeting of the Board of Directors where such action will be taken.

      The Board of Directors may, in its sole discretion, from time to time,
establish a Stock Option Committee composed of not less than three (3) persons
who must be directors of the Bank and, by

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appropriate resolution, delegate to the Stock Option Committee such power and
authority over the administration of the Plan as the Board of Directors deems
appropriate. Nothing contained herein shall prevent the Board of Directors from
delegating to the Stock Option Committee full power and authority over the
administration of the Plan.

      Subject to the express provisions of the Plan, the Board of Directors (or
the Stock Option Committee, if authorized) shall have the authority to construe
and interpret the Plan, and to define the terms used therein, to prescribe,
amend, and rescind rules and regulations relating to administration of the Plan,
to determine the duration and purposes of leaves of absence which may be granted
to participants without constituting a termination of their employment for
purposes of the Plan, and to make all other determinations necessary or
advisable for administration of the Plan. Determinations of the Board of
Directors (or the Stock Option Committee, if authorized) on matters referred to
in this section shall be final and conclusive.

      3. PARTICIPATION. All full-time salaried employees of the Bank and its
subsidiary corporations shall be eligible for selection to receive both
Incentive Options and Non-Qualified Options. Directors of the Bank and its
subsidiary corporations who are not also full-time salaried officers or
employees of the Bank or a subsidiary corporation shall be eligible to receive
only Non-Qualified Options under the Plan. Subject to the express provisions of
the Plan, the Board of Directors (or the Stock Option Committee, if authorized)
shall select from the eligible class and determine the individuals who shall
receive Options, whether such Options shall be Incentive Options or
Non-Qualified Options, and the terms and provisions of the Options, and shall
grant such Options to such individuals. An individual who has been granted an
Option (an "Optionee") may, if such individual is otherwise eligible, be granted
additional Options if the Board of Directors (or the Stock Option Committee, if
authorized) shall so determine.

      4. STOCK SUBJECT TO THE PLAN. Subject to adjustment as provided in Section
13 hereof, the stock to be offered under the Plan shall be shares of the Bank's
authorized but unissued common stock, no par value (hereinafter called "stock"),
and the aggregate amount of stock to be delivered upon exercise of all Options
granted under the Plan, whether Incentive Options or Non-Qualified

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Options, shall not exceed Six Hundred Sixty-Five Thousand (665,000) shares. If
any Option shall expire for any reason without having been exercised in full,
the unpurchased shares subject thereto shall again be available for purposes of
the Plan.

      5. OPTION PRICE. The purchase price of stock subject to each Option shall
be determined by the Board of Directors (or the Stock Option Committee, if
authorized) but shall not be less than one hundred percent (100%) of the fair
market value of such stock at the time such Option is granted. As to any
Incentive Option granted to an Optionee who, immediately before the Option is
granted, owns beneficially more than ten percent (10%) of the outstanding stock
of the Bank, the purchase price must be at least one hundred ten percent (110%)
of the fair market value of the stock at the time when such Option is granted.
The fair market value of such stock shall be determined in accordance with any
reasonable valuation method, including the valuation methods described in Treas.
Reg. Section 20.2031-2. The purchase price of any shares purchased shall be paid
in full in cash at the time of each such purchase.

      6. OPTION PERIOD. Each Option and all rights or obligations thereunder
shall expire on such date as the Board of Directors (or the Stock Option
Committee, if authorized) may determine, but not later than ten (10) years from
the date such Option is granted, and shall be subject to earlier termination as
provided elsewhere in the Plan. As to any Incentive Option granted to an
Optionee who, immediately before the Option is granted, owns beneficially more
than ten percent (10%) of the outstanding stock of the Bank (whether acquired
upon exercise of Options or otherwise), such Option must not be exercisable by
its terms after five (5) years from the date of its grant.

      7. CONTINUATION OF EMPLOYMENT. In the case of employees, nothing contained
in the Plan (or in any Option agreement) shall obligate the Bank or its
subsidiary corporations to employ any Optionee for any period or interfere in
any way with the right of the Bank or its subsidiary corporations to reduce such
Optionee's compensation.

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      8. EXERCISE OF OPTIONS. Each Option shall be exercisable in such
installments, which need not be equal, and upon such contingencies as the Board
of Directors (or the Stock Option Committee, if authorized) shall determine;
provided, however, that if an optionee shall not in any given installment period
purchase all of the shares which such optionee is entitled to purchase in such
installment period, such optionee's right to purchase any shares not purchased
in such installment period shall continue until the expiration of such Option.
No Option or installment thereof shall be exercisable except with respect to
whole shares, and fractional share interests shall be disregarded except that
they may be accumulated in accordance with the next preceding sentence. Options
may be exercised by ten (10) days written notice delivered to the Bank stating
the number of shares with respect to which the Option is being exercised,
together with cash in the amount of the purchase price for such shares. No fewer
than ten (10) shares may be purchased at one time unless the number purchased is
the total number which may be purchased under the Option. As a condition to the
exercise of a Non-Qualified Option, in whole or in part, by an Optionee who is
an employee of the Bank (or who was an employee during the term of the option)
the Optionee shall be required to pay to the Bank, in addition to the purchase
price for the shares being exercised, an amount equal to any taxes required to
be withheld by the Bank in order to enable the Bank to claim a deduction in
connection with the exercise of the Option.

            Options may also be exercised by delivering to the Bank (i) an
exercise notice instructing the Bank to deliver the certificates for the shares
purchased to a designated brokerage firm which shall sell the stock in the
market as soon as the Option is exercised; and (ii) a copy of irrevocable
instructions delivered to the brokerage firm to sell the shares acquired upon
exercise of the Option and to deliver to the Bank from the sale proceeds
sufficient cash to pay the exercise price and applicable withholding taxes
arising as a result of the exercise, with the balance of the sales proceeds, if
any, after payment of any broker's commission, credited to the Optionee's
brokerage account.

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      9. NON-TRANSFERABILITY OF OPTIONS. Each Option shall, by its terms, be
non-transferable by the Optionee, other than by Will or the laws of descent and
distribution, and shall be exercisable during such Optionee's lifetime only by
the Optionee.

      10. CESSATION OF EMPLOYMENT; DISABILITY. Except as provided in Sections 6
and 11 hereof, if an Optionee ceases to be employed by or to serve as a director
of the Bank or a subsidiary corporation for any reason other than death or
disability, such Optionee's Option shall expire thirty (30) days thereafter, and
during such period after such Optionee ceases to be an employee or director,
such Option shall be exercisable only as to those shares with respect to which
installments, if any, had accrued as of the date on which the Optionee ceased to
be employed by or ceased to serve as a director of the Bank or such subsidiary
corporation. Except as provided in Sections 6 and 11 hereof, if an Optionee
ceases to be employed by or ceases to serve as a director of the Bank or a
subsidiary corporation by reason of disability (within the meaning of Section
22(e)(3) of the Code), such Optionee's Option shall expire not later than one
(1) year thereafter, and during such period after such Optionee ceases to be an
employee or director such Option shall be exercisable only as to those shares
with respect to which installments, if any, had accrued as of the date on which
the Optionee ceased to be employed by or ceased to serve as a director of the
Bank or such subsidiary corporation.

      11. TERMINATION OF EMPLOYMENT FOR CAUSE. If an Optionee's employment by or
service as a director of the Bank or a subsidiary corporation is terminated for
cause, such Optionee's Option shall expire immediately; provided, however, that
the Board of Directors may, in its sole discretion, within thirty (30) days of
such termination, waive the expiration of the Option by giving written notice of
such waiver to the Optionee at such Optionee's last known address. In the event
of such waiver, the Optionee may exercise the Option only to such extent, for
such time, and upon such terms and conditions as if such Optionee had ceased to
be employed by or ceased to serve as a director of the Bank or such subsidiary
corporation upon the date of such termination for a reason other than cause,
disability, or death. In the case of an employee, termination for cause shall
include termination for malfeasance or gross misfeasance in the performance of
duties, conviction of illegal activity in connection therewith, any conduct
seriously detrimental to the interests of the Bank or a subsidiary corporation,
or removal pursuant to the exercise of regulatory authority by the California

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Department of Financial Institutions (the "DFI"), the Federal Deposit Insurance
Corporation (the "FDIC") or other bank supervisory agency; and, in any event,
the determination of the Board of Directors with respect thereto shall be final
and conclusive. In the case of a director, termination for cause shall include
removal pursuant to Sections 302 or 304 of the California Corporations Code or
removal pursuant to the exercise of regulatory authority by the DFI, the FDIC or
other bank supervisory agency.

      12. DEATH OF OPTIONEE. Except as provided in Section 6 hereof, if any
Optionee dies while employed by or serving as a director of the Bank or a
subsidiary corporation or during the thirty-day or one-year period referred to
in Section 10 hereof, such Optionee's Option shall expire one (1) year after the
date of such death. After such death but before such expiration, the persons to
whom the Optionee's rights under the Option shall have passed by Will or by the
applicable laws of descent and distribution shall have the right to exercise
such Option to the extent that installments, if any, had accrued as of the date
on which the Optionee ceased to be employed by or ceased to serve as a director
of the Bank or such subsidiary corporation.

      13. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. If the outstanding shares
of the stock of the Bank are increased, decreased, or changed into, or exchanged
for a different number or kind of shares or securities of the Bank, without
receipt of consideration by the Bank, through reorganization, merger,
recapitalization, reclassification, stock split-up, stock dividend, stock
consolidation, or otherwise, an appropriate and proportionate adjustment shall
be made in the number and kind of shares as to which Options may be granted. A
corresponding adjustment changing the number or kind of shares and the exercise
price per share allocated to unexercised Options, or portions thereof, which
shall have been granted prior to any such change shall likewise be made. Any
such adjustment, however, in an outstanding Option shall be made without change
in the total price applicable to the unexercised portion of the Option but with
a corresponding adjustment in the price for each share subject to the Option. No
fractional shares of stock shall be issued under the Plan on account of any such
adjustment.

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      14. TERMINATING EVENTS. Not less than thirty (30) days prior to a
"Terminating Event" as defined below, the Board of Directors (or the Stock
Option Committee, if authorized) shall notify each Optionee of the pendency of
the Terminating Event. Upon delivery of said notice, any Option granted prior to
the Terminating Event shall be, notwithstanding the provisions of Section 8
hereof, exercisable in full and not only as to those shares with respect to
which installments, if any, have then accrued, subject, however, to earlier
expiration or termination as provided elsewhere in the Plan, and further subject
to the condition that the Terminating Event in fact occurs. Optionees shall then
be entitled to exercise any Options or portions thereof commencing on the tenth
(10th) day, and ending on the third (3rd) day, prior to the Terminating Event,
or at such other times as may be specified by the Board of Directors in
connection with the Terminating Event. Upon the effective date of the
Terminating Event, the Plan and any Options granted thereunder shall terminate,
unless (i) provision is made in connection with the Terminating Event for
assumption of Options theretofore granted, or substitution for such Options of
new options covering stock of a successor employer corporation, or a parent or
subsidiary corporation thereof, with appropriate adjustments as to the number
and class of shares and prices, or (ii) in the case of a "change in control" as
defined below, the Board of Directors in its sole discretion determines prior to
the effective date of the Terminating Event that all outstanding Options and the
Plan itself should continue in full force and effect. In the case of such a
determination by the Board of Directors, or in the event that any pending
Terminating Event does not occur, the Plan and all outstanding Options
thereunder shall continue in force with all original vesting schedules in
effect.

            For purposes of this Section 14, a "Terminating Event" shall
include: (i) a reorganization, merger, or consolidation of the Bank with one or
more corporations as a result of which the Bank will not be the surviving
corporation, (ii) a sale of substantially all the assets and property of the
Bank to another person, corporation or entity, or (iii) a "change in control",
i.e., any other single transaction involving the Bank (such as a tender offer)
where there is a change in ownership of at least twenty-five percent (25%) of
the Bank's outstanding shares, unless such change in ownership results from (i)
a transfer of shares to another corporation in exchange for at least eighty
percent (80%) control of that corporation, (ii) the issuance of additional
shares of stock by the Bank in a

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secondary stock offering, private placement or similar transaction, or (iii) any
acquisition in which the Bank will be the surviving entity.

            15. ACCELERATION OF OPTIONS. Notwithstanding the provisions of
Section 8 hereof or any provision to the contrary contained in any Option
agreement, the Board of Directors (or the Stock Option Committee, if
authorized), in its sole discretion, may accelerate the vesting of all or any
Option then outstanding. The decision by the Board of Directors to accelerate an
Option or to decline to accelerate an Option shall be final. In the event of the
acceleration of the exercisability of Options as the result of a decision by the
Board of Directors pursuant to this Section 16, each outstanding Option so
accelerated shall be exercisable for a period from and after the date of such
acceleration and upon such other terms and conditions as the Board of Directors
may determine in its sole discretion, provided that such terms and conditions
(other than terms and conditions relating solely to the acceleration of
exercisability and the related termination of an Option) may not adversely
affect the rights of any Participant without the consent of the Participant so
adversely affected. Any outstanding Option which has not been exercised by the
holder at the end of such period shall terminate automatically at that time.

      16. AMENDMENT AND TERMINATION BY BOARD OF DIRECTORS. The Board of
Directors may at any time suspend, amend, or terminate the Plan and may, with
the consent of an Optionee, make such modification of the terms and conditions
of such Optionee's Option as it shall deem advisable; provided that, except as
permitted under the provisions of Section 13 hereof, any amendment or
modification of the Plan which would:

            (a)   increase the maximum number of shares which may be purchased
                  pursuant to Options granted under the Plan;

            (b)   change the minimum option price;

            (c)   increase the maximum term of Options provided for herein; or

            (d)   permit Options to be granted to anyone other than a director
                  or a full-time salaried officer or employee of the Bank or a
                  subsidiary corporation;

requires the approval of the Bank's shareholders as described below. Any
amendment or modification requiring shareholder approval shall be deemed adopted
as of the date of the action of

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the Board of Directors effecting such amendment or modification and shall be
effective immediately, unless otherwise provided therein, subject to approval
thereof within twelve (12) months before or after the effective date by
shareholders of the Bank holding not less than a majority of the voting power of
the Bank.

      Notwithstanding the above, the Board of Directors (or the Stock Option
Committee, if authorized to do so) may grant to an Optionee, if such Optionee is
otherwise eligible, additional Options or, with the consent of the Optionee,
grant a new Option in lieu of an outstanding Option for a number of shares, at a
purchase price and for a term which in any respect is greater or less than that
of the earlier Option, subject to the limitations of Sections 5, 6 and A-2
hereof.

      No Option may be granted during any suspension of the Plan or after
termination of the Plan. Amendment, suspension, or termination of the Plan shall
not, without the consent of the Optionee, alter or impair any rights or
obligations under any Option outstanding prior to such amendment, suspension or
termination of the Plan.

      17. TIME OF GRANTING OPTIONS. The time an Option is granted, sometimes
referred to as the date of grant, shall be the day of the action of the Board of
Directors (or action of the Stock Option Committee, if authorized to take such
action) described in the second sentence of Section 2 hereof; provided, however,
that if appropriate resolutions of the Board of Directors (or the Stock Option
Committee, if authorized to grant options) indicate that an Option is to be
granted as of and on some future date, the time such Option is granted shall be
such future date. If action by the Board of Directors (or the Stock Option
Committee, if authorized to take such action) is taken by the unanimous written
consent of its members, the action of the Board of Directors (or the Stock
Option Committee) shall be deemed to be at the time the last Board (or Stock
Option Committee) member signs the consent.

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      18. PRIVILEGES OF STOCK OWNERSHIP; SECURITIES LAWS COMPLIANCE; NOTICE OF
SALE. No Optionee shall be entitled to the privileges of stock ownership as to
any shares of stock not actually issued and delivered. No shares shall be issued
upon the exercise of any Option unless and until any then applicable
requirements of any regulatory agencies having jurisdiction, and of any
exchanges upon which stock of the Bank may be listed, shall have been complied
with fully. The Bank will diligently endeavor to comply with all applicable
securities laws before any Options are granted under the Plan and before any
stock is issued pursuant to Options. The Optionee shall give the Bank notice of
any sale or other disposition of any such shares not more than five (5) days
after such sale or other disposition.

      19. EFFECTIVE DATE OF THE PLAN. The Plan shall be deemed adopted as of the
date first shown herein and shall be effective immediately, subject to approval
hereof within twelve (12) months before or after said date by shareholders
holding not less than a majority of the voting power of the Bank.

      20. TERMINATION. Unless previously terminated by the Board of Directors or
as provided in Section 14 hereof, the Plan shall terminate at the close of
business on February 24, 2010, and no Options shall be granted under it
thereafter, but such termination shall not affect any Option theretofore
granted.

      21. OPTION AGREEMENT. Each Option shall be evidenced by a written Stock
Option Agreement executed by the Bank and the Optionee and shall contain each of
the provisions and agreements herein specifically required to be contained
therein, including whether the Option is an Incentive Option or Non-Qualified
Option, and such other terms and conditions as are deemed desirable and are not
inconsistent with the Plan.

      22. EXCULPATION AND INDEMNIFICATION. The Bank shall indemnify and hold
harmless a member or members of the Board of Directors (or the Stock Option
Committee), in any action brought against such member or members to the maximum
extent permitted by then applicable law and the Articles of Incorporation and
Bylaws of the Bank and any amendments thereto.

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                                   DIVISION A

                                    INCENTIVE STOCK OPTION PLAN

      A-1. ELIGIBLE PERSONS. All full-time salaried officers and employees of
the Bank and its subsidiary corporations shall be eligible for selection to
participate in the Incentive Plan. Notwithstanding any other provisions of the
Plan to the contrary, no director of the Bank or a subsidiary corporation who is
not a full-time salaried employee of the Bank or a subsidiary corporation and no
member of the Stock Option Committee may be granted options under the Incentive
Plan.

      A-2. LIMIT ON EXERCISABILITY. The aggregate fair market value (determined
as of the time the Option is granted) of the stock for which any full-time
salaried officer or employee may be granted Incentive Options which are first
exercisable during any one calendar year (under all Incentive Stock Option Plans
of such employee's employer corporation and its parent and subsidiary
corporations) shall not exceed One Hundred Thousand Dollars ($100,000).

      A-3. INCORPORATION BY REFERENCE. The provisions of Sections 5, 6, 9, 10,
15 and 19 of the Plan are hereby incorporated by this reference into this
Incentive Stock Option Plan.

      A-4. INTERPRETATION OF PLAN. Options granted pursuant to the Incentive
Plan are intended to be "incentive stock options" within the meaning of Section
422 of the Code, and the Incentive Plan shall be construed to implement that
intent. If all or any part of an Incentive Option shall not be deemed an
"incentive stock option" within the meaning of Section 422 of the Code, said
Option shall nevertheless be valid and carried into effect as a Non-Qualified
Option.

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DIVISION B

                         NON-QUALIFIED STOCK OPTION PLAN

      B-1. ELIGIBLE PERSONS. All full-time salaried officers and employees and
all directors of the Bank and its subsidiary corporations, except members of the
Stock Option Committee, shall be eligible for selection to participate in the
Non-Qualified Plan.

      B-2. INTERPRETATION OF PLAN. Options granted pursuant to the Non-Qualified
Plan are intended to be non-qualified stock options described in Treas.
Reg. Section 1.83-7 to which Section 421 of the Code does not apply, and the
Non-Qualified Plan shall be construed to implement that intent.

                                       12Exhibit 10.1

 

EXHIBIT 10.1

[EXECUTION COPY]

AMENDMENT AND WAIVER NO. 3 TO THE

CREDIT AGREEMENT AND AMENDMENT

NO. 1 TO THE DMFC GUARANTY

Dated as of January 30, 2004

          AMENDMENT AND WAIVER NO. 3 TO THE CREDIT AGREEMENT among DEL MONTE
CORPORATION, a Delaware corporation (the “Company”), the Lenders party thereto,
BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Agent”),
Collateral Agent, Swingline Lender and Issuing Lender, JPMORGAN CHASE BANK, as
Syndication Agent, HARRIS TRUST AND SAVINGS BANK, MORGAN STANLEY & CO.
INCORPORATED and UBS WARBURG LLC, as Co-Documentation Agents, BANC OF AMERICA
SECURITIES LLC and J.P. MORGAN SECURITIES INC., as Joint Bookrunners and Joint
Lead Arrangers, COBANK, ACB, GREENSTONE CAPITAL, FLEET NATIONAL BANK, FORTIS
CAPITAL CORP, SUNTRUST BANK and UNITED OVERSEAS BANK LTD., NEW YORK AGENCY, as
Managing Agents, THE BANK OF NEW YORK, CAPITAL FUNDING, UNIT OF GENERAL
ELECTRIC CAPITAL CORPORATION and UNION BANK OF CALIFORNIA, as Co-Agents, and
BANC OF AMERICA SECURITIES LLC, J.P. MORGAN SECURITIES INC., MORGAN STANLEY &
CO. INCORPORATED and UBS WARBURG LLC, as Arrangers and AMENDMENT NO. 1 TO THE
GUARANTY by DEL MONTE FOODS COMPANY (“DMFC”) in favor of the Secured Parties
(as defined in the Credit Agreement referred to below) (this “Amendment”).

          PRELIMINARY STATEMENTS:

          (1) The Company, the Lenders and the Agents have entered into a Credit
Agreement dated as of December 20, 2002, and letter amendments and waivers with
respect thereto dated as of March 19, 2003 and April 23, 2003 (such Credit
Agreement, as so amended, the “Credit Agreement”). Capitalized terms not
otherwise defined in this Amendment have the same meanings as specified in the
Credit Agreement.

          (2) DMFC has entered into a Guaranty, dated as of December 20, 2002, in
favor of the Secured Parties.

          (3) The Company, DMFC and the Lenders have agreed to further amend the
Credit Agreement and the DMFC Guaranty and the Lenders have agreed to waive
certain provisions of the Credit Agreement as hereinafter set forth.

          SECTION 1. Amendments to Credit Agreement. The Credit Agreement is,
effective as of the date hereof and subject to the satisfaction of the
conditions precedent set forth in Section 5 of this Amendment, hereby amended
as follows:

          (a) Schedule I to the Credit Agreement is deleted in its entirety
and replaced with Schedule I to this Amendment.

 

2

          (b) The definition of “Applicable Percentage” in Section 1.1 of the
Credit Agreement is amended in full to read as follows:

          “ “Applicable Percentage” means the following percentages per annum,
based upon Total Debt Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section
7.2(b):

	 	 	 	 	 	 	 	 	 
	 	 	Applicable	 	Applicable
	 	 	Percentage for	 	Percentage for
	 	 	Commercial Letter	 	Standby Letters of
	Total Debt Ratio	 	of Credit	 	Credit
	
	 	
	 	

	>3.50:1.00
	 	 	2.00	%	 	 	2.50	%
	£3.50:1 but > 3.00:1.00
	 	 	1.75	%	 	 	2.25	%
	£3.00:1.00 but >2.5:1.00
	 	 	1.25	%	 	 	1.75	%
	£2.50:1.00
	 	 	1.00	%	 	 	1.50	%

The “Applicable Percentage” shall be adjusted, to the extent applicable,
not later than 45 days (or, in the case of the last fiscal quarter of any
year, not later than 90 days) after the end of each fiscal quarter based
on the Total Debt Ratio as of the last day of such fiscal quarter;
provided that (i) any such adjustment shall be effective only upon the
earlier of (A) delivery of a certificate signed by a Responsible Officer
calculating the Total Debt Ratio and (B) delivery of the financial
statements required by Section 7.1(a) or 7.1(b), as applicable, with
respect to such fiscal quarter, and the related Compliance Certificate;
(ii) if any adjustment becomes effective pursuant to the preceding clause
(i)(A), the Total Debt Ratio shall be recalculated upon the first
delivery of financial statements pursuant to Section 7.1(a) or 7.1(b)
after the delivery of the officer’s certificate referred to in such
clause, and if such recalculation indicates that the Total Debt Ratio on
the last day of such fiscal quarter was different from that reported in
such officer’s certificate, (I) the “Applicable Percentage” shall be
readjusted based on the recalculated Total Debt Ratio and (II) if the
recalculated Total Debt Ratio is higher than that reported on the
officer’s certificate and results in a higher Applicable Percentage, the
Company shall immediately pay an amount equal to the additional letter of
credit fees that would have accrued thereto if the adjustment based on
such officer’s certificate had not occurred, which amounts shall be paid
(y) immediately, to the extent that any date of payment of such letter of
credit fees to which such amounts related have occurred and (z)
otherwise, on the dates scheduled for payment of letter of credit fees to
which such amounts relate, and (III) if the Company fails to deliver the
financial statements required by Section 7.1(a) or 7.1(b), as applicable,
and the related Compliance Certificate required by Section 7.2(b) by the
45th day (or, if applicable, the 90th day) after any fiscal quarter, the
highest fee rates set forth above shall apply until such financial
statements and Compliance Certificate are delivered.”

     (c) The definition of “Applicable Rate” in Section 1.1 of the Credit
Agreement is amended in full to read as follows:

          “ “Applicable Rate” means (a) with respect to Eurodollar Rate Term B
Loans, 2.25% per annum, (b) with respect to Base Rate Term B Loans, 1.25%
per annum

 

3

and (c) with respect to Term A Loans and Revolving Credit Loans, the
following percentages per annum, based upon the Total Debt Ratio as set
forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 7.2(b):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Debt Ratio	 	>3.50:1.00	 	£3.50:1 but >3.00:1.00	 	£3.00:1 but >2.50:1.00	 	£2.50:1.00
	
	 	
	 	
	 	
	 	

	Base Rate Revolving
Credit Loans
	 	 	1.50	%	 	 	1.25	%	 	 	0.75	%	 	 	0.50	%
	Base Rate Term A
Loans
	 	 	1.50	%	 	 	1.25	%	 	 	0.75	%	 	 	0.50	%
	Eurodollar Rate
Revolving Credit
Loans
	 	 	2.50	%	 	 	2.25	%	 	 	1.75	%	 	 	1.50	%
	Eurodollar Rate
Term A Loans
	 	 	2.50	%	 	 	2.25	%	 	 	1.75	%	 	 	1.50	%

          The “Applicable Rate” shall be adjusted, to the extent applicable,
not later than 45 days (or, in the case of the last fiscal quarter of any
year, not later than 90 days) after the end of each fiscal quarter based
on the Total Debt Ratio as of the last day of such fiscal quarter;
provided that (i) any such adjustment shall be effective only upon the
earlier of (A) delivery of a certificate signed by a Responsible Officer
calculating the Total Debt Ratio and (B) delivery of the financial
statements required by Section 7.1(a) or 7.1(b), as applicable, with
respect to such fiscal quarter, and the related Compliance Certificate;
(ii) if any adjustment becomes effective pursuant to the preceding clause
(i)(A), the Total Debt Ratio shall be recalculated upon the first
delivery of financial statements pursuant to Section 7.1 (a) or 7.1(b)
after the delivery of the officer’s certificate referred to in such
clause, and if such recalculation indicates that the Total Debt Ratio on
the last day of such fiscal quarter was different from that reported in
such officer’s certificate, (I) the “Applicable Rate” shall be readjusted
based on the recalculated Total Debt Ratio and (II) if the recalculated
Total Debt Ratio is higher than that reported on the officer’s
certificate and results in a higher Applicable Rate, the Company shall
immediately pay an amount equal to the additional interest on the Loans
that would have accrued thereto if the adjustment based on such officer’s
certificate had not occurred, which amounts shall be paid (y)
immediately, to the extent that any date of payment of the Interest
Payment Date to which such amounts related have occurred and (z)
otherwise, on the Interest Payment Dates to which such amounts relate,
and (III) if the Company fails to deliver the financial statements
required by Section 7.1(a) or 7.1(b), as applicable, and the related
Compliance Certificate required by Section 7.2(b) by the 45th day (or, if
applicable, the 90th day) after any fiscal quarter, the highest fee rates
set forth above shall apply until such financial statements and
Compliance Certificate are delivered.”

     (d) The definition of “Responsible Officer” in Section 1.1 of the
Credit Agreement is amended by adding after the phrase “chief financial
officer,” where it appears therein the phrase “chief accounting
officer,”.

 

4

     (e) The definition of “Subordinated Debt” in Section 1.1 of the
Credit Agreement shall be amended by (i) replacing the word “and” at the
end of clause (b) with a “,”, (ii) adding to such definition a new clause
(c) to read as follows: “(c) any Indebtedness of any Loan Party or any
Subsidiary thereof permitted to be incurred pursuant to Section 8.5(n),
and” and (iii) redesignating clause (c) of such definition clause (d).

     (f) The definition of “Transaction Costs” is amended in full to read
as follows:

     “ “Transaction Costs” means any fees, costs or expenses incurred by
the Company (a) in connection with the consummation of the Transactions,
(b) in connection with the exchange offer relating to the New
Subordinated Notes, (c) in connection with the (i) the Techni-Cal Sale
and (ii) Project Fast and (d) in connection with the consummation of the
transactions contemplated by this Agreement (including without limitation
any amendment to this Agreement or waiver with respect to this Agreement)
and (e) in connection with the consummation of transactions permitted
under Sections 2.14, 8.2(e), 8.2(k), 8.3, 8.4(i), 8.5(e), 8.5(l) or
8.5(n) of this Agreement, to the extent such fees, costs or expenses are
reasonable and customary in nature.”

     (g) The following defined terms are added to Section 1.1 of the
Credit Agreement in the appropriate alphabetical position:

     “ “DMFC Guaranty” has the meaning specified in Section 5.2(a)(i).”

     “ “Fleming Receivable” means all or a portion of the Company’s
receivable owing from Fleming Companies, Inc. and/or its affiliates for,
among other items, open invoices, refunded checks and disallowed
deductions in an aggregate amount not to exceed $10,000,000.”

     “ “Increase Effective Date” has the meaning specified in Section
2.14(b).”

     “ “New Lender” has the meaning specified in Section 2.14(a).”

     “ “Prepayment Date” means the Business Day on or prior to January
30, 2004 on which the Company elects to prepay in full the aggregate
outstanding principal amount of the Term Loans pursuant to Section
2.7(a).”

     “ “Project FAST” means the sale of certain of the assets of the
Company and its applicable Subsidiaries, the assumption by the applicable
buyers of certain related liabilities and the license of certain assets
of the Company and its applicable Subsidiaries, in a transaction or
series of related transactions, in each case as more fully described in
the letter from the Company to the Administrative Agent (with a copy to
J.P. Morgan Securities Inc., in its capacity as Joint Lead Arranger)
dated January 30, 2004.”

     “ “Techni-Cal Sale” means the sale by the Company’s Subsidiary DLM
Foods Canada Corp. of substantially all of the assets used in connection
with the business of manufacturing, producing, distributing and marketing
premium dog and cat food products sold in territories other than the
United States and Canada and sold under the Techni-Cal brand.”

 

5

     (h) Section 2.1(b) of the Credit Agreement is amended in its
entirety to read as follows:

          “(b) Subject to the terms and conditions set forth herein, (i) each
Dollar Term B Lender severally agrees to make (A) a single loan to the
Company on the Initial Distribution Date in Dollars and in an aggregate
amount not to exceed such Lender’s Total Term Percentage of the Initial
Distribution Borrowing Amount, (B) a single loan to the Company at the
Time of the Merger in Dollars and in an amount not to exceed such
Lender’s Total Term Percentage of the Merger Borrowing Amount and (C) a
single loan to the Company on the Prepayment Date in an amount equal to
such Term B Lender’s Term B Commitment set forth on Schedule I hereto
(each loan advanced by any Dollar Term B Lender being a “Dollar Term B
Loan”) and (ii) each Euro Term B Lender severally agrees to make (A) a
single loan to the Company on the Initial Distribution Date in Euros and
in an aggregate amount not to exceed such Lender’s Total Term Percentage
of the Initial Distribution Borrowing Amount and (B) a single loan to the
Company at the Time of Merger in Euros and in an amount not to exceed
such Lender’s Total Term Percentage of the Merger Borrowing Amount (each
loan advanced by any Euro Term B Lender being a “Euro Term B Loan” and
together with the “Dollar Term B Loans”, the “Term B Loans”); provided
that in no event shall the aggregate amount of loans advanced pursuant to
this Section 2.1(b) exceed the aggregate amount of the Term B Commitments
as of the date such loans are made. Each Term B Borrowing shall be in
Dollars or in Euros and shall consist of Term B Loans made simultaneously
by the Term B Lenders ratably according to their Term B Commitments.
Amounts prepaid on the Prepayment Date may be reborrowed pursuant to
clause (i)(C) of this Section 2.1(b). Thereafter, amounts borrowed under
this Section 2.1(b) and repaid or prepaid may not be reborrowed.

     (i) Section 2.5(a) of the Credit Agreement is amended by replacing
the figure “$25,000,000” where it appears in clause (iii) thereof with
the figure “$35,000,000”.

     (j) Section 2.6(a) of the Credit Agreement is amended in its
entirety to read as follows:

     “(a) The Term Commitments will automatically terminate in full on
the Prepayment Date after giving effect to the Borrowing to occur on such
date pursuant to Section 2.1(b)(i)(C).”

     (k) Section 2.7(a) of the Credit Agreement is amended in full to
read as follows:

     “(a) The Company may, upon at least one Business Day’s notice in the
case of Base Rate Loans and three Business Day’s notice in the case of
Eurodollar Rate Loans, in each case to the Administrative Agent stating
the proposed date and aggregate principal amount of the prepayment, and
if such notice is given the Company shall, prepay the outstanding
aggregate principal amount of the Loans comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the aggregate amount prepaid; provided,
however, that (1) each partial prepayment shall be in an aggregate
principal amount of $5,000,000 or an integral

 

6

multiple of $100,000 in excess thereof and if any prepayment of a
Eurodollar Rate Loan is made on a date other than the last day of an
Interest Period for such Loan, the Company shall also pay amounts owing
pursuant to Section 4.5.”

     (l) Section 2.7(b)(i)(2) of the Credit Agreement is amended in full
to read as follows:

     “to the extent that the Net Cash Proceeds of all such Asset Sales
(I) in any fiscal year are less than the lesser of $15,000,000 and 10% of
Consolidated Net Tangible Assets (as defined in the New Subordinated
Notes Indenture), determined as of the last day of the most recent fiscal
quarter for which a consolidated balance sheet for the Company and its
Subsidiaries has been prepared and (II) since January 30, 2004 do not
exceed the sum of (x) $75,000,000 and (y) the Net Cash Proceeds of the
Project Fast transaction;”.

     (m) Section 2.7(b)(iii) of the Credit Agreement is amended in full
to read as follows:

     “Promptly, and (A) in any event within 15 days of the incurrence or
issuance of any Other Debt of the Company or any of its Subsidiaries and
(B) in any event on or prior to the first anniversary of the incurrence
or issuance of any Indebtedness pursuant to Section 8.5(n), in either
case, in an amount equal to 100% of such Net Cash Proceeds received in
connection with such incurrence or issuance; provided that the foregoing
clause (B) shall not apply to the Net Cash Proceeds from any such
Indebtedness to the extent that such Net Cash Proceeds are used or
committed to be used by the Company (I) for the financing of fixed or
capital assets to be used in the business of the Company and its
Subsidiaries prior to or within 12 months after the incurrence or
issuance of such Indebtedness, (II) for the repayment of any Surviving
Debt or the New Subordinated Notes pursuant to Section 8.5(e), (III) for
the making of Restricted Payments permitted under Sections 8.15(v), (vi)
or (x) prior to or within 12 months after the incurrence or issuance of
such Indebtedness or (IV) in connection with any investment permitted
under Sections 8.4(f), 8.4(h), or 8.4(j) or any Acquisition permitted
under Section 8.4(i) prior to or within 12 months after the incurrence or
issuance of such Indebtedness.”

     (n) Section 2.8(b) of the Credit Agreement is amended in full to
read as follows:

     “(b) The Company shall repay to the Administrative Agent for the
ratable account of the Term B Lenders the aggregate outstanding principal
amount of the Term B Loans on the following dates in the amounts
represented by the percentages set forth below, as the respective
percentages of the aggregate outstanding principal amount principal
amount of the Term B Loans outstanding as of the Prepayment Date, (after
giving effect to any Term B Borrowing to be made on the Prepayment Date
in accordance with Section 2.1(b)(i)(C)) (which amounts shall be reduced
as a result of the application of prepayments in accordance with Section
2.7).

	 	 	 
	Date	 	Percentage
	
	 	

	4/30/2004

7/30/2004
	 	

	
0.25

0.25

	%

%

 

7

	 	 	 
	Date	 	Percentage
	
	 	

	10/29/2004

1/28/2005

4/29/2005

7/29/2005

10/28/2005

1/27/2006

4/28/2006

7/28/2006

10/27/2006

1/26/2007

4/27/2007

7/27/2007

10/26/2007

1/25/2008

4/25/2008

7/25/2008

10/24/2008

1/23/2009

5/1/2009

7/31/2009

10/30/2009

1/29/2010

4/30/2010

7/30/2010

10/29/2010

Term B Loan Maturity Date
	 	

	
0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

0.25

23.50

23.50

23.50

23.50

	%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

provided, however, that the final principal installment shall be repaid
on the Term B Loan Maturity Date in respect of the Term B Loans and in
any event shall be in an amount equal to the aggregate principal amount
of the Term B Loans outstanding on the Term B Loan Maturity Date. Term B
Loans advanced after the Prepayment Date pursuant to Section 2.14 shall
be repaid on the terms described in Section 2.14(c).”

     (o) Section 2.10(b) of the Credit Agreement is amended in its
entirety to read as follows: “[Intentionally omitted.]”.

     (p) A new Section 2.14 is added to the Credit Agreement, to read as
follows:

     “2.14 Increase in Commitments.

     (a) Provided there exists no Default, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the
Company may make one or more requests that the amount of the Term
Commitments be increased in an aggregate amount (for all such increases)
not exceeding $150,000,000 (with each such requested increase to be in a
minimum amount of $50,000,000 and, if greater than such amount, in one or
more
increments of $25,000,000 above such amount). At the time of
sending such notice, the Company (in consultation with the Administrative
Agent) shall specify the time period

 

8

within which each Lender is
requested to respond (which shall in no event be less than ten Business
Days from the date of delivery of such notice to the Lenders) and whether
the requested increase shall take the form of Term A Commitments or Term
B Commitments. Each Lender shall notify the Administrative Agent within
such time period whether or not it agrees to increase its Term Commitment
and, if so, the amount by which it is willing to participate in such Term
Commitment increase. Any Lender not responding within such time period
shall be deemed to have declined to increase its Term Commitment. The
Administrative Agent shall notify the Company and each Lender of the
Lenders’ responses to each request made hereunder. To achieve the full
amount of a requested increase, the Company may also invite additional
Eligible Assignees to become Lenders pursuant to a joinder agreement in
form and substance satisfactory to the Administrative Agent and its
counsel (each such new Lender, a “New Lender”).

     (b) If the Term Commitments are increased in accordance with this
Section, the Administrative Agent and the Company shall determine the
effective date (the “Increase Effective Date”) and the final allocation
of such increase. The Administrative Agent shall promptly notify the
Company and the Lenders of the final allocation of such increase and the
Increase Effective Date. As a condition precedent to such increase, the
Company shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Increase Effective Date (in sufficient copies
for each Lender) signed by a Responsible Officer of such Loan Party (i)
certifying and attaching the resolutions adopted by such Loan Party
approving or consenting to such increase, and (ii) in the case of the
Company, (x) certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article VI
and the other Loan Documents are true and correct on and as of the
Increase Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they
are true and correct as of such earlier date, and (B) no Default exists
and (y) demonstrating pro forma compliance with the covenants set forth
in Sections 8.11, 8.12 and 8.13 for the period of four consecutive fiscal
quarters ending on the last date of the last completed fiscal quarter
immediately preceding the proposed date of incurrence of Indebtedness
pursuant to this provision (on the assumption that such incurrence of
Indebtedness under this provision occurred on the first day of such four
fiscal quarter period and using historical results of the Company and its
Subsidiaries for such period, and including any pro forma expense and
cost reductions calculated on a basis consistent with Regulation S-X
under the Securities Act).

     (c) On each Increase Effective Date, upon fulfillment of the
conditions set forth in subsection (b) above, the Administrative Agent
shall notify the Lenders and the Company, on or before 12:00 p.m. on the
Business Day immediately preceding the proposed Increase Effective Date
by facsimile of the occurrence of the Term Commitment increase to be
effected on such Increase Effective Date and the amount and final
allocation of such increase as determined above, to be reflected on a new
Schedule I to the Agreement circulated at such time by facsimile by the
Administrative Agent to the Company and each Lender. At such time the
Administrative Agent shall also circulate an amortization schedule for
such new Loan, which shall reflect (x) if such new Loan is a
Term A Loan, an amortization schedule to be agreed upon at such time
by the Administrative Agent and the Company but in no event with a
maturity later than the date

 

9

which is one year prior to the Term B Loan
Maturity Date and (y) if such new Loan is a Term B Loan, amortization of
0.25% for every quarter from the date such Loan is advanced through the
fiscal quarter ended January 29, 2009, and four equal quarterly
installments of the remaining principal amount for the four fiscal
quarters from January 29, 2009 through the Term B Loan Maturity Date.
Each existing Lender increasing its Term Commitment as set forth above,
and each New Lender, shall, before 2:00 p.m. on the applicable Increase
Effective Date, make available to the Administrative Agent in immediately
available funds (i) in the case of any New Lender, an amount equal to
such New Lender’s Term Commitment and (ii) in the case of any existing
Lender increasing its Term B Commitment, an amount equal to such
increase. The Administrative Agent shall promptly make such funds
available to the Company.

     (d) Each Term Loan advanced by a Lender as a result of an increase
in its Term Commitment pursuant to this Section, and each Term Loan
advanced by any New Lender, shall be a “Term A Loan” or a “Term B Loan”,
as the case may be, and a “Loan” for all purposes hereunder. Each New
Lender shall be deemed to be a “Term A Lender” or a “Dollar Term B
Lender”, as the case may be, and a “Lender” for all purposes hereunder.”

     (q) Section 5.2 of the Credit Agreement is amended by inserting
after the words “Issue any Letter of Credit” where they appear in the
third line thereof the following: “, in each case, on the Initial
Distribution Date”.

     (r) Section 7.2 of the Credit Agreement is amended by (i) inserting
the following immediately before the semi-colon at the end of clause (c)
thereof: “; provided, that materials required to be delivered pursuant to
this clause (c) shall be deemed delivered when the Company notifies the
Administrative Agent (which shall promptly notify the Lenders) that
copies of such materials have been posted on the SEC’s website,
www.sec.gov/edaux/searches/htm; provided, further, that the Company
agrees to furnish upon request by the Administrative Agent a paper copy
of such materials to the Administrative Agent for delivery to any Lender
that requests a paper copy”; and (ii) by inserting the following
immediately after the words “Subordinated Notes,” on the third line of
clause (e) thereof: “or any Indebtedness permitted under Section
8.5(n),”.

     (s) Section 8.2 of the Credit Agreement is amended by (i) deleting
the word “and” from the end of clause (j) of such Section, (ii) adding to
such Section a new clause (k) to read as follows:

     ”(k) (i) the consummation of Project FAST; provided that the Net
Cash Proceeds from such disposition shall be applied in accordance with
Section 2.7(b); and (ii) the disposition, in whole or in part, of the
Fleming Receivable;” and

     (iii) redesignating clause (k) of such Section clause (l) and
amending such clause in its entirety to read as follows:

 

10

     ”(l) dispositions not otherwise permitted under this Section 8.2
(including the disposition of all of the Equity Interests in any
operating Subsidiary of the Company by sale of such Equity Interests or
by merger of such Subsidiary with or into another Person, but excluding
any Sale/Leaseback transaction) which are made for fair market value;
provided that (i) at the time of such disposition no Default or Event of
Default shall exist or would result from such disposition; (ii) the
aggregate fair market value of all property disposed of in reliance on
this clause (l) in any (A) fiscal year shall not exceed $15,000,000 or
(B) since the date of this Agreement shall not exceed $75,000,000; (iii)
all of the purchase price for such asset is paid to the Company or such
Subsidiary, as the case may be, in cash or Cash Equivalent Investments;
provided, that up to $10,000,000 per Fiscal Year in fair market value of
property disposed of in reliance on this clause (l) may be disposed of
for less than fair market value or for consideration other than cash or
Cash Equivalents; provided, further, that the fair market value of any
property disposed of in reliance on this clause (l) for which no portion
of the consideration is paid in cash or Cash Equivalents shall not exceed
$2,000,000 for any single transaction or series of related transactions;
and (iv) the proceeds from any such disposition shall be applied in
accordance with Section 2.7(b).”

     (t) Section 8.4 of the Credit Agreement is amended by inserting in
the first paragraph of such Section, after the words “or any other
investment in, any other Person,” where they appear in the fifth line
thereof, the following: “it being understood that contributions made to
any “plan,” as defined in Section 3(3) of ERISA, shall not be deemed to
be prohibited by this Section 8.4,”.

     (u) Section 8.5 of the Credit Agreement is amended by (i) deleting
the word “and” where it appears at the end of clause (m) thereof, (ii)
adding to such Section a new clause (n), to read as follows:

     ”(n) additional subordinated Indebtedness, senior subordinated
Indebtedness or senior unsecured Indebtedness in an aggregate principal
amount not to exceed $150,000,000 with a scheduled maturity date falling
no earlier than June 20, 2011 and with no amortization or mandatory
prepayments thereof (other than pursuant to contingent mandatory
prepayment provisions substantially the same as and not materially more
adverse to the Lenders than those contained in the New Subordinated Notes
Documents) prior to such date; provided that prior to the entry by the
Company or such Subsidiary into any agreement or contract relating
thereto, the Company shall have delivered to the Administrative Agent a
certificate demonstrating pro forma compliance with the covenants set
forth in Sections 8.11, 8.12 and 8.13 for the period of four consecutive
fiscal quarters ending on the last date of the last completed fiscal
quarter immediately preceding the proposed date of incurrence of such
Indebtedness (on the assumption that such incurrence of Indebtedness
under this clause occurred on the first day of such four fiscal quarter
period and using historical results of the Company and its Subsidiaries
for such period, and including any pro forma expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Securities
Act); and
provided further that the Net Cash Proceeds from the incurrence or
issuance of any such Indebtedness shall be applied in accordance with
Section 2.7(b)(iii); and”

 

11

and (iii) redesignating clause (n) of such Section clause (o).

     (v) Section 8.8 of the Credit Agreement is amended by (i) deleting
the word “and” from the end of clause (e) of such Section, (ii) adding to
such Section a new clause (f) to read as follows:

     ”(f) Guaranty Obligations of the Company in respect of Capital
Leases, operating leases, Sale /Leaseback Transactions, vendor supply
contracts or any other Indebtedness, liabilities or other obligations
entered into by any Subsidiary of the Company which is otherwise
permitted by the limitations set forth in this Article VIII and the
limitations set forth in any Subordinated Debt Documents; and”; and

(iii) redesignating clauses (f) and (g) of such Section clauses (g) and
(h), respectively.

     (w) Section 8.10 of the Credit Agreement is amended by adding to the
end of clause (b) of such Section, immediately before the semi-colon, the
following additional language: “, including, without limitation and for
the avoidance of doubt, (i) any lease of real or personal property
consisting of or relating to any warehouse, product distribution center
or office space, (ii) any equipment lease and (iii) any other individual
lease pursuant to which the total amount payable by the Company and its
Subsidiaries is not reasonably anticipated to exceed $5,000,000 per
fiscal year”.

     (x) Section 8.13 of the Credit Agreement is amended by substituting
for the table contained therein the following table:

	 	 	 	 	 
	Period	 	Ratio
	
	 	

	December 20, 2002 through the fiscal year ending closest to
April 30, 2004
	 	 	4.00:1.00	 
	July 31, 2004 through the fiscal year ending closest to April
30, 2005
	 	 	3.50:1.00	 
	July 31, 2005 and thereafter
	 	 	3.00:1.00	 

     (y) Section 8.14 of the Credit Agreement is amended by replacing
clauses (ii) and (iii) of the definition of “Base Amount” contained
therein with the following: “(ii) April 30, 2004, $105,000,000 and (iii)
April 30, 2005 and thereafter, $125,000,000”.

     (z) Section 8.15(b)(v) of the Credit Agreement is amended in full to
read as follows:

     ”(v) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the Company may pay dividends to
DMFC in an amount per fiscal year not to exceed 30% of Consolidated Net
Income of the Company for the immediately preceding fiscal year;
provided, that the Company may only make the first

 

12

payment of dividends
pursuant to this clause (v) if, after giving effect thereto, the
Company’s pro forma Total Debt Ratio for the last four fiscal quarters
immediately preceding the date of such first dividend (determined as if
such dividend had been made on the first day of such period), would be
less than 2.75 to 1:0; provided, further, that once the Company has paid
any dividend in accordance with this Section 8.15(b)(v), no other
dividend payment of the Company shall be subject to the Company’s
satisfaction of the pro forma Total Debt Ratio test set forth in the
immediately preceding clause;”.

     (aa) Section 8.15(b) of the Credit Agreement is further amended by
(i) deleting from the end of clause (viii) of such Section the word
“and”; (ii) replacing the period at the end of clause (ix) of such
Section with the following; “; and” and (iii) adding to such Section a
new clause (x), to read as follows:

     ”(x) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the Company may pay dividends to
DMFC in an aggregate amount not to exceed the amount of proceeds received
from the incurrence or issuance of Indebtedness permitted under Section
8.5(n), so long as such dividend is paid prior to or within 12 months
after the incurrence or issuance of such Indebtedness.”

          SECTION 2. Waiver of Certain Provisions of the Credit Agreement. Each
Term Lender hereby waives, effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 5 of this
Amendment, and solely in connection with the prepayment and reborrowing of Term
Loans contemplated by Section 4 of this Amendment, the requirements of Sections
2.3(a), 2.3(b), 2.3(c), 2.6(e), 2.13 and 5.3(c) of the Credit Agreement, the
notice requirements for prepayments set forth in Section 2.7(a) of the Credit
Agreement and any rights such Lender may have under Section 2.7(g) of the
Credit Agreement.

          SECTION 3. Amendment to DMFC Guaranty. The DMFC Guaranty is, effective as
of the date hereof and subject to the satisfaction of the conditions precedent
set forth in Section 5 of the Amendment, hereby amended as follows:

     (a) Section 7(c) of the DMFC Guaranty is amended in full to read as
follows:

     ”(c) perform and observe all of the terms, covenants and agreements
that the Loan Documents state that the Guarantor is to perform or
observe, and cause the Borrower and each of the Borrower’s Subsidiaries
to perform and observe all of the terms, covenants and agreements that
the Loan Documents state that the Borrower or applicable Subsidiary of
the Borrower is to perform or observe;”;

     (b) Section 7(l)(ix) of the DMFC Guaranty is amended by adding to
such Section immediately after the words “pursuant to Section 8.15(b)(v)”
the following: “or Section 8.15(b)(x)”.

     (c) Section 7(l)(xiii) of the DMFC Guaranty is amended to delete the
words “in the ordinary course of business, provided that the aggregate
outstanding amount of any such Contingent Obligations shall not exceed
$25,000,000”.

 

13

          SECTION 4. Repayment and Reborrowing. (a) Subject to the satisfaction of
the conditions precedent set forth in Section 5 of this Amendment, effective as
of the date hereof, the Term Loans owed to each Term Lender shall be deemed to
be prepaid pursuant to Section 2.7(a) of the Credit Agreement and the Company
shall be deemed to have reborrowed, pursuant to Section 2.1(b)(i)(C) of the
Credit Agreement, a new Dollar Term B Loan from each Term Lender in the amount
set forth in Schedule I hereto for such Term Lender.

               (b) After giving effect to the prepayment and reborrowing contemplated by
Section 4(a) of this Amendment, but subject to any subsequent Borrowing under
the Credit Agreement pursuant to Section 2.14, (i) the aggregate outstanding
principal amount of the Term A Loans and the Euro Term B Loans will be zero,
the Term A Commitments will be reduced to zero and each Term Lender shall be
deemed to be a Dollar Term Lender and (ii) each Dollar Term Lender agrees and
acknowledges that the principal amount of Term B Loans owing to it and its Term
B Commitment are equal to the amounts set forth opposite such Term Lender’s
name on Schedule I to this Amendment.

          SECTION 5. Conditions of Effectiveness. This Amendment shall become effective
when the Administrative Agent shall have received counterparts of this
Amendment executed by the Company and the Required Lenders and counterparts of
the Consent attached hereto (the “Consent”) executed by each Guarantor;
provided that Sections 1(a), 1(b), 1(c), 1(k), 2 and 4 of this Amendment shall
become effective as of the date first above written when, and only when, the
following conditions shall have been satisfied:

     (a) the Administrative Agent shall have received :

          (i) counterparts of this Amendment executed by the Company and all
of the Lenders or, as to any of the Lenders, advice satisfactory to the
Administrative Agent that such Lender has executed this Amendment;

          (ii) certified copies of (A) the resolutions of the Board of
Directors of (1) the Company approving this Amendment and the matters
contemplated hereby and (2) each Guarantor evidencing approval of the
Consent and (B) all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Amendment and
the Consent and the matters contemplated hereby and thereby;

          (iii) a certificate signed by a duly authorized officer of the
Company stating that (A) the representations and warranties contained in
Section 6 of this Amendment are true and correct on and as of the date of
such certificate and after giving effect to this Amendment (including the
Borrowing deemed to be made pursuant to Section 4 of this Amendment) as
though made on and as of such date (except to the extent that any such
representations and warranties specifically refer to an earlier date, in
which case, as of such earlier date); and (b) no Default or Event of
Default exists or
would result from the effectiveness of this Amendment (or the
consummation of the transaction contemplated by this Amendment, including
the Borrowing deemed to be made pursuant to Section 4 of this Amendment);

 

14

     (b) the Company shall have paid to the Administrative Agent (i) all
fees that are due and payable at such time pursuant to any written
agreement of the Company and (ii) for the account of each Term B Lender,
the prepayment premium payable to such Lender pursuant to Section
2.7(a)(ii)(B) of the Credit Agreement (as in effect prior to giving
effect to Section 1(k) hereof) as a result of the prepayment contemplated
by Section 4(a) of this Amendment; and

     (c) the Company shall have paid all accrued and unpaid Attorney
Costs of the Administrative Agent which have been invoiced at least 2
days prior to the date hereof.

     This Amendment is subject to the provisions of Section 11.3 of the Credit
Agreement.

          SECTION
6. Representations and Warranties of the Company. The Company
represents and warrants as follows:

     (a) The representations and warranties of each Loan Party contained
in Article VI of the Credit Agreement or any other Loan Document, or
which are contained in any document furnished at any time under or in
connection herewith or therewith, are true and correct in all material
respects on and as of the date hereof and after giving effect to this
Amendment (including the Borrowing deemed to be made pursuant to Section
4 of this Amendment) (and all references in any such representation and
warranty to the Credit Agreement shall be deemed to be references to the
Credit Agreement as amended by this Amendment) (except to the extent that
any such representations and warranties specifically refer to an earlier
date, in which case, as of such earlier date);

     (b) No Default or Event of Default exists or would result from the
effectiveness of this Amendment (including the Borrowing deemed to be
made pursuant to Section 4 of this Amendment); and

     (c) The aggregate value of, and the revenues and EBITDA attributable
to, the assets to be disposed of pursuant to Project Fast comprise less
than 5% of each of tangible assets, revenue and EBITDA, respectively, of
the Company and its Subsidiaries on a consolidated basis.

          SECTION 7. Reference to and Effect on the Loan Documents. (a) On and
after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Credit Agreement, and each reference in the Notes and each of
the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement, as amended by this Amendment. On and after
the effectiveness of Section 3 of this Amendment, each reference in the DMFC
Guaranty to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the DMFC Guaranty, and each reference in the Notes and each
of the other Loan Documents to “the DMFC Guaranty”, “thereunder”, “thereof” or
words of like import referring to the DMFC Guaranty, shall mean and be a
reference to the DMFC Guaranty, as amended by this Amendment.

          (b) The Credit Agreement, the Notes and each of the other Loan Documents,
as specifically amended by this Amendment, are and shall continue to be in
full force and effect

 

15

and are hereby in all respects ratified and confirmed.
Without limiting the generality of the foregoing, the Collateral Documents and
all of the Collateral described therein do and shall continue to secure the
payment of all Obligations of the Loan Parties under the Loan Documents, in
each case as amended by this Amendment.

          (b) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.

          (c) The amendments to the definitions of “Applicable Percentage” and
"Applicable Rate” will become effective immediately with respect to any
outstanding Loans and Letters of Credit upon the satisfaction of the conditions
set forth in Section 5.

          SECTION 8. Costs, Expenses. The Company agrees to pay on demand all costs
and expenses of the Agent in connection with the preparation, execution,
delivery and administration, modification and amendment of this Amendment and
the other instruments and documents to be delivered hereunder (including,
without limitation, the reasonable fees and expenses of counsel for the Agent)
in accordance with the terms of Section 11.4 of the Credit Agreement.

          SECTION 9. Execution in Counterparts. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

16

          SECTION 10. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

	 	 	 	 	 
	 	 	DEL MONTE CORPORATION
	 	 	 	 	 
	 	 	
By
	 	/s/ Thomas E. Gibbons
	 	 	 	 	

	 	 	 	 	Name: Thomas E. Gibbons
	 	 	 	 	Title: Senior Vice President and Treasurer
	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
	 	 	as Administrative Agent, Collateral
	 	 	 	Agent, Swingline Lender and Issuing
	 	 	 	Lender, and as Lender
	 	 	 	 	 
	 	 	
By
	 	/s/ W. Thomas Barnett
	 	 	 	 	

	 	 	 	 	Name: W. Thomas Barnett
	 	 	 	 	Title: Managing Director

 

17

	 	 	 	 	 
	 	 	

	 	 	JPMorgan Chase Bank
	 	 	 	 	 
	 	 	
By
	 	/s/ William Rindfuss
	 	 	 	 	

	 	 	 	 	Name: William Rindfuss
	 	 	 	 	Title: Vice President

 

 

CONSENT

Dated as of January 30, 2004

     Each of the undersigned, (i) as Guarantor under (x) in the case of each of
the undersigned other than DMFC, the Subsidiary Guaranty dated December 20,
2002 (the “Subsidiary Guaranty”) and (y) in the case of DMFC, the Guaranty
dated December 20, 2002 (the “DMFC Guaranty”), in each case, in favor of the
Secured Parties referred to in the Credit Agreement referred to in the
foregoing Amendment (the “Credit Agreement”) and (ii) as Grantor under the
Security Agreement dated December 20, 2002 (as amended through the date hereof,
the “Security Agreement”) to Bank of America, N.A. as Collateral Agent for such
Secured Parties, hereby consents to such Amendment and hereby confirms and
agrees that (a) notwithstanding the effectiveness of such Amendment, each of
(x) in the case of each of the undersigned other than DMFC, the Subsidiary
Guaranty and (y) in the case of DMFC, the DMFC Guaranty is, and shall continue
to be, in full force and effect and is hereby ratified and confirmed in all
respects, except that, (I) on and after the effectiveness of Section 2 of the
Amendment, the DMFC Guaranty shall be in effect as amended thereby, and each
reference in the Subsidiary Guaranty, the DMFC Guaranty or the Security
Agreement to the “DMFC Guaranty” or words of like import shall mean and be a
reference to the DMFC Guaranty, as amended by such Amendment and (II) on and
after the effectiveness of such Amendment, in whole or in part, each reference
in the Subsidiary Guaranty, the DMFC Guaranty or the Security Agreement to the
"Credit Agreement”, “thereunder”, “thereof” or words of like import shall mean
and be a reference to the Credit Agreement, as amended by such Amendment and
(b) the Collateral Documents to which each of the undersigned is a party and
all of the Collateral described therein do, and shall continue to, secure the
payment of all of the Secured Obligations. Capitalized terms used herein and
not otherwise defined shall have the meanings assigned to such terms in the
Credit Agreement.

	 	 	 	 	 
	 	 	DEL MONTE FOODS COMPANY
	 	 	 	 	 
	 	 	
By
	 	/s/ Thomas E. Gibbons
	 	 	 	 	

	 	 	 	 	Name: Thomas E. Gibbons
	 	 	 	 	Title: Senior Vice President and Treasurer

 

 

	 	 	 	 	 
	 	 	MIKE MAC IHC, INC.
	 	 	STAR-KIST SAMOA, INC.
	 	 	MARINE TRADING PACIFIC, INC.
	 	 	STAR-KIST MAURITIUS, INC.
	 	 	 	 	 
	 	 	
By
	 	/s/ Thomas E. Gibbons
	 	 	 	 	

	 	 	 	 	Name: Thomas E. Gibbons
	 	 	 	 	Title: Vice President, Chief Financial Officer
and Treasurer

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