Document:

AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT  

by and among 

NORTHLAND CRANBERRIES,
INC. 

as Borrower, 

THE LENDERS THAT ARE
SIGNATORIES HERETO 

as the Lenders, 

WELLS FARGO FOOTHILL,
INC. 

as the Administrative Agent 

and 

ABLECO FINANCE LLC 

as the Collateral Agent 

Dated as of November
16, 2004 

AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT 

        THIS
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”), is
entered into as of November 16, 2004, between and among, on the one hand, Wells Fargo
Foothill, Inc. (f/k/a Foothill Capital Corporation) and Ableco Finance LLC and the other
lenders identified on the signature pages hereof (such lenders, together with their
respective successors and assigns, are referred to hereinafter each individually as a
“Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL,
INC. (f/k/a Foothill Capital Corporation), a California corporation, as the
administrative agent for the Lenders (“Administrative Agent”), ABLECO FINANCE
LLC, a Delaware limited liability company, as the collateral agent for the Lenders
(“Collateral Agent”, and together with the Administrative Agent, each an
“Agent” and collectively the “Agents”) and, on the other hand,
NORTHLAND CRANBERRIES, INC., a Wisconsin corporation (“Borrower”). 

        WHEREAS,
Ableco, Foothill and the Borrower are parties to that certain Loan and Security Agreement,
dated as of November 6, 2001 (as amended, supplemented, or otherwise modified from time to
time prior to the date hereof, the “Existing Loan and Security
Agreement”), pursuant to which the lenders thereunder provided the Borrower with
a revolving credit facility in an aggregate principal amount of $30,000,000 and term loan
facilities in an aggregate principal amount of $20,000,000; 

        WHEREAS,
the Borrower has requested that the Existing Loan and Security Agreement be amended in its
entirety to, among other things (i) amend and reduce the existing revolving credit
facility into two separate revolving credit facilities in an aggregate principal amount of
$11,000,000, (ii) permit the repayment of existing indebtedness owing to Equitable in the
amount of $5,000,000, (iii) provide for an additional term loan facility in an aggregate
principal amount of $15,000,000, (iv) have Foothill appointed as Administrative Agent for
the Lenders, and (v) have Ableco appointed as Collateral Agent for the Lenders; 

        WHEREAS,
the proceeds of the revolving loans made under the revolving credit facilities and the
term loan made under the term loan facility shall be used to (i) pay the Special Dividend
(as hereinafter defined) to the shareholders of the Borrower and certain other amounts due
them as permitted by this Agreement, (ii) to repay any amounts outstanding, if any, under
the existing revolving credit facility, (iii) for general working capital and general
corporate purposes of the Borrower, and (iv) to pay fees and expenses related to this
Agreement; and 

        WHEREAS,
subject to the foregoing, the Agents and the Lenders are willing to so amend and restate
the Existing Loan and Security Agreement in accordance with the terms and conditions
hereof; it being understood that no repayment of the outstanding amounts payable under the
Existing Loan and Security Agreement as of the effective date of this Agreement is being
effected hereby; 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree to amend and restate the Existing Loan and
Security Agreement in its entirety as follows: 

	1.  	DEFINITIONS
AND CONSTRUCTION. 

    1.1. Definitions.
As used in this Agreement, the following terms           shall have the following
definitions:  

        “A
Advances” has the meaning set forth in Section 2.1. 

        “Ableco”
shall mean Ableco Finance LLC, a Delaware limited liability company. 

        “Account
Debtor” means any Person who is or who may become obligated under, with respect
to, or on account of, an Account, chattel paper, or a General Intangible. 

        “Accounts”
means all of Borrower’s now owned or hereafter acquired right, title, and interest
with respect to “accounts” (as that term is defined in the Code), and any and
all supporting obligations in respect thereof. 

        “Additional
Documents” has the meaning set forth in Section 4.4. 

        “Adjusted
Letter of Credit Usage” means, as of the date of determination, the sum of (a)
100% of the undrawn amount of all outstanding Letters of Credit, plus (b) 100% of the
amount of outstanding time drafts accepted by an Underlying Issuer as a result of drawings
under Underlying Letters of Credit. 

        “Adjusted
Revolver A Usage” means, as of any date of determination, the sum of (a) the then
extant amount of outstanding A Advances, plus (b) the then extant amount of the Adjusted
Letter of Credit Usage. 

        “Administrative
Agent” means Foothill, solely in its capacity as administrative agent for the
Lenders hereunder, and any successor thereto. 

        “Administrative
Agent’s Account” means an account at a bank designated by Administrative
Agent from time to time as the account into which Borrower shall make all payments to
Administrative Agent for the benefit of the Lender Group and into which the Lender Group
shall make all payments to Administrative Agent under this Agreement and the other Loan
Documents; unless and until Administrative Agent notifies Borrower and the Lender Group to
the contrary, Administrative Agent’s Account shall be that certain deposit account
bearing account number 323-266193 and maintained by Administrative Agent with JPMorgan
Chase Bank, 4 New York Plaza, 15th Floor, New York, New York 10004, ABA #021000021. 

        “Advances”
means A Advances and B Advances. 

        “Affiliate”
means, as applied to any Person, any other Person who, directly or indirectly, controls,
is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” means the possession, directly or indirectly, of the power
to direct the management and policies of a Person, whether through the ownership of Stock,
by contract, or otherwise; provided, however, that, in any event: (a) any
Person which owns directly or indirectly 10% or more of the securities having ordinary
voting power for the election of directors or other members of the governing body of a
Person or 10% or more of the partnership or other ownership interests of a Person (other
than as a limited partner of such Person) shall be deemed to control such Person, (b) each
director (or comparable manager) of a Person shall be deemed to be an Affiliate of such
Person, and (c) each partnership or joint venture in which a Person is a partner or joint
venturer shall be deemed to be an Affiliate of such Person provided that, for purpose of
this Agreement, the Lenders and their Affiliates shall not be Affiliates of the Borrower. 

-2- 

        “Agent
Advances” has the meaning set forth in Section 2.3(e)(i). 

        “Agents-Related
Persons” means Agents together with their Affiliates, officers, directors,
employees, and agents. 

        “Agreement”
has the meaning set forth in the preamble hereto. 

        “Assignee”
has the meaning set forth in Section 14.1. 

        “Assignment
and Acceptance Agreement” means an Assignment and Acceptance Agreement in the
form of Exhibit A-1 or any other form acceptable to the Collateral Agent. 

        “Authorized
Person” means any officer or other employee of Borrower. 

        “Availability”
means, as of any date of determination, if such date is a Business Day, and determined at
the close of business on the immediately preceding Business Day, if such date of
determination is not a Business Day, the amount that Borrower is entitled to borrow as A
Advances under Section 2.1 (after giving effect to all then outstanding Obligations
and all sublimits and reserves applicable hereunder). 

        “B
Advances” has the meaning set forth in Section 2.1. 

        “Bankruptcy
Code” means the United States Bankruptcy Code, as in effect from time to time. 

        “Base
LIBOR Rate” means the rate per annum, determined by Administrative Agent in
accordance with its customary procedures, and utilizing such electronic or other quotation
sources as it considers appropriate (rounded upwards, if necessary, to the next 1/100%),
to be the rate at which Dollar deposits (for delivery on the first day of the requested
Interest Period) are offered to major banks in the London interbank market 2 Business Days
prior to the commencement of the requested Interest Period, for a term and in an amount
comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether
as an initial LIBOR Rate Loan or as a continuation of an extant LIBOR Rate Loan) by
Borrower in accordance with this Agreement, which determination shall be conclusive in the
absence of manifest error. 

        “Base
Rate” means, the rate of interest announced within Wells Fargo at its principal
office in San Francisco as its “prime rate”, with the understanding that the
“prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest
of such rates) and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto and is evidenced by the recording
thereof after its announcement in such internal publication or publications as Wells Fargo
may designate. 

-3- 

        “Base
Rate Loan” means the portion of the Advances or the Term Loan that bears interest
at a rate determined by reference to the Base Rate. 

        “Base
Rate Margin” means one (1%) percentage point. 

        “Benefit
Plan” means a “defined benefit plan” (as defined in Section
3(35) of ERISA) for which Borrower or any Subsidiary or ERISA Affiliate of Borrower
has been an “employer” (as defined in Section 3(5) of ERISA) within the past six
years. 

        “Board
of Directors” means the board of directors (or comparable managers) of Borrower
or any committee thereof duly authorized to act on behalf of the board. 

        “Books”
means Borrower’s now owned or hereafter acquired books and records (including all of
its Records indicating, summarizing, or evidencing its assets (including the Collateral)
or liabilities, all of its Records relating to its business operations or financial
condition, and all of its goods or General Intangibles related to such information). 

        “Borrower”
has the meaning set forth in the preamble to this Agreement. 

        “Borrower
Collateral” means all now owned or hereafter acquired assets of the Borrower,
including all of Borrower’s now owned or hereafter acquired right, title, and
interest in and to each of the following: 

        (a)                 Accounts,  

        (b)                 Books,  

        (c)                 Equipment,  

        (d)                 General
Intangibles (including Borrower’s rights under any Ocean Spray           Documents),  

        (e)                 Inventory,  

        (f)                 Investment
Property,  

        (g)                 Negotiable
Collateral,  

        (h)                 Real
Property Collateral,  

        (i)                 Farm
Products,  

        (j)                 money
or other assets of Borrower that now or hereafter come into the           possession,
custody, or control of any member of the Lender Group, and  

-4- 

        (k)                 the
proceeds and products, whether tangible or intangible, of any of the           foregoing,
including proceeds of insurance covering any or all of the foregoing,           and any
and all Accounts, Books, Equipment, General Intangibles, Inventory,           Investment
Property, Negotiable Collateral, Real Property, money, deposit           accounts, or
other tangible or intangible property resulting from the sale,           exchange,
collection, or other disposition of any of the foregoing, or any           portion
thereof or interest therein, and the proceeds thereof;  

notwithstanding anything to the
contrary set forth in this definition of Borrower Collateral, Borrower Collateral shall
not include: 

	 	        (i)    
the Excluded Collateral, or  

	 	        (ii)    
               any rights or interests in (a) any property subject to clause (e) of the
               definition of “Permitted Liens” or (b) any contract, lease,
permit,                license, charter or license agreement covering real or personal
property, as                such, if, in the case of both clause (a) and (b) above, under
the terms of such                contract, lease, permit, license, charter or license
agreement, or applicable                law with respect thereto, the valid grant of a
security interest or lien therein                to Collateral Agent is prohibited and
such prohibition has not been or is not                waived or the consent of the other
party to such contract, lease, permit,                license, charter or license
agreement has not been or is not otherwise obtained                or under applicable
law such prohibition cannot be waived; provided,that, the foregoing
exclusion shall in no way be construed (A) to apply                if any such
prohibition is unenforceable under the UCC or other applicable law                or (B)
so as to limit, impair or otherwise affect Collateral Agent’s
               unconditional continuing security interests in and liens upon any rights
or                interests of Borrower in or to the proceeds thereof, including, without
               limitation, monies due or to become due under any such contract, lease,
permit,                license, charter or license agreement (including any Accounts).  

        “Borrowing”
means a borrowing hereunder consisting of Advances (or term loan, in the case of the Term
Loan) made on the same day by the Lenders (or Administrative Agent on behalf thereof) or
by Swing Lender in the case of a Swing Loan, or by an Agent in the case of an Agent
Advance. 

        “Borrowing
Base” has the meaning set forth in Section 2.1. 

        “Borrowing Base
Certificate” means an electronic report reasonably acceptable to the
Administrative Agent, consistent with the definition of the term Borrowing Base and in a
form substantially similar (but consistent with the definition of Borrowing Base as in
effect from time to time) to the form that has been delivered by Borrower in the past to
Administrative Agent. 

        “Business
Day” means any day that is not a Saturday, Sunday, or other day on which national
banks are authorized or required to close in the state of New York, except that, if a
determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business
Day” also shall exclude any day on which banks are closed for dealings in Dollar
deposits in the London interbank market. 

-5- 

        “Capital
Lease” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP. 

        “Capitalized
Lease Obligation” means any Indebtedness represented by obligations under a
Capital Lease.  

        “Cash
Equivalents” means (a) marketable direct obligations issued or unconditionally
guaranteed by the United States   or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within 1 year from the date
of acquisition thereof, (b) marketable direct obligations issued by any state of the
United States or any political subdivision of any such state or any public
instrumentality thereof maturing within 1 year from the date of acquisition thereof and,
at the time of acquisition, having the highest rating obtainable from either S&P or
Moody’s, (c) commercial paper maturing no more than 1 year from the date of
acquisition thereof and, at the time of acquisition, having a rating of A-1 or P-1, or
better, from S&P or Moody’s, and (d) certificates of deposit or bankers’acceptances
maturing within 1 year from the date of acquisition thereof either (i) issued by any bank
organized under the laws of the United States or any state thereof which bank has a
rating of A or A2, or better, from S&P or Moody’s, or (ii) certificates of
deposit less than or equal to $100,000 in the aggregate issued by any other bank insured
by the Federal Deposit Insurance Corporation.  

        “Cash
Management Bank” has the meaning set forth in Section 2.7(a). 

        “Cash Management
Account” has the meaning set forth in Section 2.7(a). 

        “Cash
Management Agreements” means those certain cash management service agreements, in
form and substance satisfactory to Administrative Agent, each of which is among Borrower,
Administrative Agent, and one of the Cash Management Banks. 

        “Change
of Control” means (a) Sun Capital Partners II LP shall cease to be the managing
member of Sun Northland, LLC, or (b) Sun Northland, LLC shall cease to own and control,
beneficially and of record more than 50.1% or more of the Stock of the Borrower, or (c)
Borrower ceases to directly own and control 100% of the outstanding capital Stock of each
of its Subsidiaries extant as of the Closing Date, subject to the rights of Borrower under
Section 7.3(b) to cause certain mergers, dissolutions or other actions with respect to
Borrower’s Subsidiaries; provided, that the sale of the Stock of W.S.C. Water
Management Corp. in connection with the sale of the bogs pursuant to the Ocean Spray
Option Agreement shall not be deemed to be a “Change of Control”. 

        “Closing
Date” means the date of the making of the initial Advance (or other extension of
credit) hereunder. 

        “Closing
Date Business Plan” means the set of Projections of Borrower for the 3 year
period following the Closing Date (on a year by year basis, and for the 1 year period
following the Closing Date, on a month by month basis), in form and substance (including
as to scope and underlying assumptions) satisfactory to Agents. 

-6- 

        “Code”
means the New York Uniform Commercial Code, as in effect from time to time. 

        “Collateral”
means Borrower Collateral and any other collateral granted by any Loan Party pursuant to
any Loan Document. 

        “Collateral
Access Agreement” means a landlord waiver, bailee letter, or acknowledgment
agreement of any lessor, warehouseman, processor, consignee, or other Person in possession
of, having a Lien upon, or having rights or interests in the Equipment, Inventory or Books
constituting Collateral, in each case, in form and substance satisfactory to Agents and
includes, without limitation, the Consent. 

        “Collateral
Agent” means Ableco, solely in its capacity as collateral agent for the Lenders
hereunder, and any successor thereto. 

        “Collateral
Agent’s Liens” means the Liens granted by Borrower to Collateral Agent for
the benefit of the Lender Group under this Agreement or the other Loan Documents. 

        “Collections”
means all cash, checks, notes, instruments, and other items of payment (including
insurance proceeds, proceeds of cash sales, rental proceeds and tax refunds and amounts
paid to Borrower pursuant to the Ocean Spray Escrow Agreement) of Borrower. 

        “Commitment”
means, with respect to each Lender, its Revolver A Commitment, its Revolver B Commitment,
its Term Loan Commitment, or its Total Commitment, as the context requires, and, with
respect to all Lenders, their Revolver A Commitments, their Revolver B Commitments, their
Term Loan Commitments, or their Total Commitments, as the context requires, in each case
as such Dollar amounts are set forth beside such Lender’s name under the applicable
heading on Schedule C-1 or on the signature page of the Assignment and Acceptance
Agreement pursuant to which such Lender became a Lender hereunder in accordance with the
provisions of Section 14.1. 

        “Compliance
Certificate” means a certificate substantially in the form of Exhibit C-1
delivered by the chief financial officer of Borrower to Agents. 

        “Concentrate
Cash Cost” means, per gallon, (A) the sum of (i) Ocean Spray’s lowest base
pool price for raw cranberries for the immediately preceding harvest, plus (ii)
$3.00, plus (iii) Borrower’s per barrel cost (as determined by Administrative
Agent) of hauling and storage of such frozen cranberries prior to conversion to
concentrate, divided by 1.5 (or such other factor as Administrative Agent determines to be
appropriate) plus (B) the per gallon cost (as determined by Administrative Agent),
to convert frozen cranberries into such concentrate, including labor, overhead,
manufacturing costs and depreciation, and shall exclude, without limitation, all hauling
and storage after conversion into concentrate. 

        “Consent”
has the meaning set forth in Section 17.10. 

        “Consolidated
Net Income” means, with respect to Borrower for any period, the net income (loss)
of Borrower and its Subsidiaries for such period, determined on a consolidated basis and
in accordance with GAAP, but excluding from the determination of Consolidated Net Income
(without duplication): (a) non-cash gains and losses from the sale, exchange,
transfer or other disposition of property or assets not in the ordinary course of business
of Borrower and its Subsidiaries and (b) any other extraordinary or non-recurring
non-cash gains and losses of Borrower and its Subsidiaries. 

-7- 

        “Continuing
Director” means (a) any member of the Board of Directors who was a director (or
comparable manager) of Borrower on the Closing Date, and (b) any individual who becomes a
member of the Board of Directors after the Closing Date if such individual was appointed
or nominated for election to the Board of Directors by a majority of the Continuing
Directors, but excluding any such individual originally proposed for election in
opposition to the Board of Directors in office at the Closing Date in an actual or
threatened election contest relating to the election of the directors (or comparable
managers) of Borrower (as such terms are used in Rule 14a-11 under the Exchange Act) and
whose initial assumption of office resulted from such contest or the settlement thereof. 

        “Control
Agreement” means a control agreement, in form and substance satisfactory to
Agents, executed and delivered by Borrower, Agents, and the applicable securities
intermediary with respect to a Securities Account or bank with respect to a deposit
account. 

        “Cranberry
Concentrate Value” shall mean the Eligible Inventory of Borrower consisting of
gallons of cranberry concentrate that is not in the possession of Ocean Spray in
accordance with the Toll Processing Agreement, up to a maximum of (i) 275,000 gallons at
any time prior to January 31, 2005, (ii) 245,000 gallons for the period between
February 1, 2005 and February 28, 2005, (iii) 215,000 gallons for the period between March
1, 2005 and March 31, 2005, (iv) 185,000 gallons for the period between April 1, 2005 and
April 30, 2005, (v) 155,000 gallons for the period between May 1, 2005 and May 31, 2005,
(vi) 95,000 gallons for the period between June 1, 2005 and June 30, 2005, (vii) 72,000
gallons for the period between July 1, 2005 and July 31, 2005, and (viii) 40,000 gallons
at all times thereafter, multiplied, per gallon, by the lesser of (a) the lowest sales
price per gallon for Borrower’s sales of cranberry concentrate in the immediately
preceding three (3) months, and (b) the per gallon Concentrate Cash Cost of such cranberry
concentrate, in each case as determined by Administrative Agent. 

        “Daily
Balance” means, with respect to each day during the term of this Agreement, the
amount of an Obligation owed at the end of such day. 

        “DDA”
means any checking or other demand deposit account maintained by Borrower. 

        “Default”
means an event, condition, or default that, with the giving of notice, the passage of
time, or both, would be an Event of Default. 

        “Defaulting
Lender” means any Lender that fails to make any Advance (or other extension of
credit) that it is required to make hereunder on the date that it is required to do so
hereunder. 

        “Defaulting
Lender Rate” means (a) the Base Rate for the first 3 days from and after the date
the relevant payment is due, and (b) thereafter, at the interest rate then applicable to
Advances (inclusive of the Base Rate Margin applicable thereto). 

-8- 

        “Designated
Account” means account number 754771517 of Borrower maintained with
Borrower’s Designated Account Bank, or such other deposit account of Borrower
(located within the United States) that has been designated as such, in writing, by
Borrower to Administrative Agent. 

        “Designated
Account Bank” means U.S. Bank, whose office is located at Milwaukee, Wisconsin,
and whose ABA number is 075000022. 

        “Dilution”
means, as of any date of determination, a percentage, based upon the experience of the
immediately prior ninety (90) days, that is the result of dividing the Dollar amount of
(a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive
items with respect to the Accounts during such period, by (b) Borrower’s Collections
with respect to Accounts during such period (excluding extraordinary items) plus the
Dollar amount of clause (a). 

        “Dilution
Reserve” means, as of any date of determination, an amount sufficient to reduce
the advance rate against Eligible Accounts by one percentage point for each percentage
point by which Dilution is in excess of 5%. 

        “Disbursement
Letter” means an instructional letter executed and delivered by Borrower to
Agents regarding the extensions of credit to be made on the Closing Date, the form and
substance of which is satisfactory to Agents. 

        “Dollars”or
“$” means United States dollars. 

        “EBITDA”
means, with respect to any fiscal period, Borrower’s and its Subsidiaries
consolidated net earnings (or loss), minus (i) extraordinary gains and interest
income, plus (ii) interest expense, income taxes, non-cash nonrecurring, unusual or
extraordinary losses, depreciation and amortization for such period, as determined in
accordance with GAAP, bonus payments made to management of the Borrower in an aggregate
amount not to exceed $1,250,000 during the term of this Agreement, management fees paid or
accrued to Sun Capital, provided that (A) the aggregate amount of management fees
paid to Sun Capital in respect of any fiscal year shall in no event exceed the lesser of
$1,000,000 and the aggregate amount permitted to be paid pursuant to Section 7.14(iii) and
(B) the aggregate amount accruing in respect of any fiscal year shall in no event exceed
$1,000,000, and any payments on any warrants issued by Borrower, in each case set forth in
this clause (ii) to the extent that such payments were deducted in calculating
consolidated net earnings in accordance with GAAP. 

        “Eligible
Accounts” means those Accounts created by Borrower in the ordinary course of its
business, that arise out of Borrower’s sale of goods or rendition of services, that
comply with each of the representations and warranties respecting Eligible Accounts made
by Borrower in the Loan Documents, and that are not excluded as ineligible by virtue of
one or more of the criteria set forth below; provided, however, that such
criteria may be fixed and revised from time to time by Administrative Agent in
Administrative Agent’s Permitted Discretion to address the results of any audit
performed by Administrative Agent from time to time after the Closing Date. In determining
the amount to be included, Eligible Accounts shall be calculated net of customer deposits
and unapplied cash remitted to Borrower. Eligible Accounts shall not include the
following: 

-9- 

        (a)                 Accounts
that the Account Debtor has failed to pay within the lesser of (A) (i)           if such
Account Debtor is Ocean Spray, 15 days of original invoice date and (ii)           for
any other Account Debtor, 90 days of original invoice date and (B) 60 days           of
the due date.  

        (b)                 Accounts
owed by an Account Debtor (or its Affiliates) where 50% or more of all           Accounts
owed by that Account Debtor (or its Affiliates) are deemed ineligible           under
clause (a) above,  

        (c)                 Accounts
with respect to which the Account Debtor is an employee, Affiliate, or
          Administrative Agent of Borrower,  

        (d)                 Accounts
arising in a transaction wherein goods are placed on consignment or are           sold
pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill           and
hold, or any other terms by reason of which the payment by the Account           Debtor
may be conditional,  

        (e)                 Accounts
that are not payable in Dollars,  

        (f)                 Accounts
with respect to which the Account Debtor either (i) does not maintain           its chief
executive office in the United States, or (ii) is not organized under           the laws
of the United States or any state thereof, or (iii) is the government           of any
foreign country or sovereign state, or of any state, province,           municipality, or
other political subdivision thereof, or of any department,           agency, public
corporation, or other instrumentality thereof, unless (1) the           Account is
supported by an irrevocable letter of credit satisfactory to           Administrative
Agent (as to form, substance, and issuer or domestic confirming           bank) that has
been delivered to Administrative Agent and is directly drawable           by
Administrative Agent, or (B) the Account is covered by credit insurance in
          form, substance, and amount, and by an insurer, satisfactory to Administrative
          Agent,  

        (g)                 Accounts
with respect to which the Account Debtor is either (i) the United           States or any
department, agency, or instrumentality of the United States           (exclusive,
however, of Accounts with respect to which Borrower has complied, to           the
reasonable satisfaction of Administrative Agent, with the Assignment of           Claims
Act, 31 U.S.C. § 3727), or (ii) any state of the United States           (exclusive,
however, of (y) Accounts owed by any state that does not have a           statutory
counterpart to the Assignment of Claims Act, or (z) Accounts owed by           any state
that does have a statutory counterpart to the Assignment of Claims Act           as to
which Borrower has complied to Administrative Agent’s satisfaction) provided that Section
(g) shall not apply to Accounts which are otherwise           Eligible Accounts and do
not exceed $500,000 in the aggregate at any time.  

        (h)                 Accounts
with respect to which the Account Debtor is a creditor of Borrower           (other than
Accounts for which Ocean Spray is the Account Debtor), has or has           asserted a
right of setoff, has disputed its liability, or has made any claim           with respect
to its obligation to pay the Account, to the extent of such claim,           right of
setoff, or dispute,  

-10- 

        (i)                 Accounts
with respect to an Account Debtor whose total obligations owing to           Borrower
exceed 10% of all Eligible Accounts (except, in the case of Ocean Spray           and
Walmart Stores, Inc., obligations owing to Borrower which, in the case of
          Walmart Stores, Inc. and any of its affiliates in the business of retailing
          exceed 30%, in the aggregate, of all Eligible Accounts and in the case of Ocean
          Spray shall not be limited), to the extent of the obligations owing by such
          Account Debtor in excess of such percentage,  

        (j)                 Accounts
with respect to which the Account Debtor is subject to an Insolvency
          Proceeding, is not Solvent, has gone out of business, or as to which Borrower
          has received notice of an imminent Insolvency Proceeding or a material
          impairment of the financial condition of such Account Debtor,  

        (k)                 Accounts
with respect to which the Account Debtor is located in the states of           New Jersey
or Minnesota (or any other state that requires a creditor to file a           business
activity report or similar document in order to bring suit or otherwise           enforce
its remedies against such Account Debtor in the courts or through any           judicial
process of such state), unless Borrower has qualified to do business in           New
Jersey or Minnesota, or such other states, or has filed a business           activities
report with the applicable division of taxation, the department of           revenue, or
with such other state offices, as appropriate, for the then-current           year, or is
exempt from such filing requirement,  

        (l)                 Accounts,
the collection of which, Administrative Agent, in its Permitted           Discretion,
believes to be doubtful by reason of the Account Debtor’s           financial
condition,  

        (m)                 Accounts
that are not subject to a valid and perfected first priority Collateral           Agent’s
Lien except as otherwise expressly permitted under Section           (g) above,  

        (n)                 Accounts
with respect to which (i) the goods giving rise to such Account have           not been
shipped and billed to the Account Debtor, or (ii) the services giving           rise to
such Account have not been performed and billed to the Account Debtor,           or  

        (o)                 Accounts
that represent the right to receive progress payments or other advance           billings
that are due prior to the completion of performance by Borrower of the           subject
contract for goods or services.  

        “Eligible
Inventory” means Inventory consisting of first quality goods held for sale in the
ordinary course of Borrower’s business located at one of Borrower’s business
locations set forth on Schedule E-1 (or in transit between any such locations) or
in the possession or control of Ocean Spray, that complies with each of the
representations and warranties respecting Eligible Inventory made by Borrower in the Loan
Documents and that is not excluded as ineligible by virtue of the one or more of the
criteria set forth below; provided, however, that such criteria may be fixed
and revised from time to time by Administrative Agent in Administrative Agent’s
Permitted Discretion to address the results of any audit or appraisal performed by
Administrative Agent from time to time after the Closing Date. Borrower may revise
Schedule E-1, in a manner reasonably acceptable to Administrative Agent, upon not less
than twenty (20) days advance written notice to Administrative Agent. In determining the
amount to be so included, Inventory shall be valued at the lower of cost (subject to the
other terms and provisions of this Agreement with respect to calculation of cost) or
market on a basis consistent with Borrower’s historical accounting practices. An item
of Inventory shall not be included in Eligible Inventory if: 

-11- 

        (a)                 Borrower
does not have good, valid, and marketable title thereto,  

        (b)                 it
is not located at one of the locations in the United States set forth on Schedule E-1 (or
in transit between any such locations) or it is not in           the possession or
control of Ocean Spray,  

        (c)                 it
is located on real property leased by Borrower, in the possession or control           of
Ocean Spray, or in a contract warehouse, in each case, unless it is subject           to
a Collateral Access Agreement executed by the lessor, warehouseman, or other
          third party, as the case may be, and, except Inventory in the possession or
          control of Ocean Spray, unless it is segregated or otherwise separately
          identifiable from goods of others, if any, stored on the premises,  

        (d)                 it
is not subject to a valid and perfected first priority Collateral           Agent’s
Lien except Inventory that is subject to a valid and perfected Lien           in favor of
the Collateral Agent and that is in the possession or control of           Ocean Spray
located on real property leased by Ocean Spray or in a contract           warehouse that
is subject to a prior perfected Lien in favor of the lessor or           warehouseman
with respect to such Inventory under applicable law shall be           included,  

        (e)                 it
consists of goods returned or rejected by Borrower’s customers, or  

        (f)                 it
consists of goods that are obsolete or slow moving (which with respect to           goods
consisting of concentrate shall be goods held by Borrower for three (3)           years
or more, with respect to goods consisting of frozen berries shall be goods           held
by Borrower for eighteen (18) months or more, and with respect to goods
          consisting of finished goods other than concentrate shall be goods held by
          Borrower for fifteen (15) months or more), restrictive or custom items,
          work-in-process or goods that constitute spare parts, packaging and shipping
          materials, supplies used or consumed in Borrower’s business, bill and hold
          goods, defective goods, “seconds,” or Inventory acquired on
          consignment.  

        “Eligible
Transferee” means (a) a commercial bank organized under the laws of the United
States, or any state thereof, and having total assets in excess of $250,000,000, (b) a
commercial bank organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development or a political subdivision of any
such country and which has total assets in excess of $250,000,000, provided that such bank
is acting through a branch or agency located in the United States, (c) a finance company,
insurance company, or other financial institution or fund that is engaged in making,
purchasing, or otherwise investing in commercial loans in the ordinary course of its
business and having (together with its Affiliates) total assets in excess of $250,000,000,
(d) any Affiliate (other than individuals) of a Lender that was party hereto as of the
Closing Date or any fund, money market account, investment account or other account
managed by a Lender or an Affiliate of a Lender (“Related Fund”), (e) so long as
no Event of Default has occurred and is continuing, any other Person approved by
Collateral Agent and Borrower, and (f) during the continuation of an Event of Default, any
other Person approved by Collateral Agent; provided, however, that Ocean Spray shall not
be an Eligible Transferee. 

-12- 

        “Environmental
Actions” means any complaint, summons, citation, notice, directive, order, claim,
litigation, investigation, judicial or administrative proceeding, judgment, letter, or
other communication from any Governmental Authority, or any third party involving
violations of Environmental Laws or releases of Hazardous Materials from (a) any assets,
properties, or businesses of Borrower or any predecessor in interest, (b) from adjoining
properties or businesses, or (c) from or onto any facilities which received Hazardous
Materials generated by Borrower or any predecessor in interest. 

        “Environmental
Law” means any applicable federal, state, provincial, foreign or local statute,
law, rule, regulation, ordinance, code, legally binding and enforceable guideline, legally
binding and enforceable written policy, or rule of common law now or hereafter in effect
and in each case as amended, or any judicial or administrative interpretation thereof,
including any legally binding judicial or administrative order, consent decree or
judgment, to the extent binding on Borrower, relating to the environment, employee health
and safety, or Hazardous Materials, including CERCLA; RCRA; the Federal Water Pollution
Control Act, 33 U.S.C. §1251 et seq.; the Toxic Substances Control Act,
15 U.S.C., §2601 et seq.; the Clean Air Act, 42 U.S.C. §7401
et seq.; the Safe Drinking Water Act, 42 U.S.C. §3803 et
seq.; the Oil Pollution Act of 1990, 33 U.S.C. §2701 et seq.;
the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. §11001
et seq.; the Hazardous Material Transportation Act, 49 U.S.C. §1801
et seq.; and the Occupational Safety and Health Act, 29 U.S.C. §651
et seq. (to the extent it regulates occupational exposure to Hazardous
Materials); any state and local or foreign counterparts or equivalents, in each case as
amended from time to time. 

        “Environmental
Liabilities and Costs” means all liabilities, monetary obligations, Remedial
Actions, losses, damages, punitive damages, consequential damages, treble damages, costs
and expenses (including all reasonable fees, disbursements and expenses of counsel,
experts, or consultants, and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand by any
Governmental Authority or any third party, and which relate to any Environmental Action. 

        “Environmental
Lien” means any Lien in favor of any Governmental Authority for Environmental
Liabilities and Costs. 

        “Equipment”
means all of Borrower’s now owned or hereafter acquired right, title, and interest
with respect to equipment, machinery, machine tools, motors, furniture, furnishings,
fixtures, vehicles (including motor vehicles), tools, parts, goods (other than consumer
goods, farm products, or Inventory), wherever located, including all attachments,
accessories, accessions, replacements, substitutions, additions, and improvements to any
of the foregoing. 

        “Equitable
Intercreditor Agreement” means the Intercreditor Agreement dated as of November
6, 2001 by and between Administrative Agent and Equitable, as amended. 

        “Equitable”
means The Equitable Life Assurance Society of the United States and its successors and
assigns. 

-13- 

        “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and any successor
statute thereto. 

        “ERISA
Affiliate” means (a) any Person subject to ERISA whose employees are treated as
employed by the same employer as the employees of Borrower under IRC Section 414(b), (b)
any trade or business subject to ERISA whose employees are treated as employed by the same
employer as the employees of Borrower under IRC Section 414(c), (c) solely for purposes of
Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is
a member of an affiliated service group of which Borrower is a member under IRC Section
414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any
Person subject to ERISA that is a party to an arrangement with Borrower and whose
employees are aggregated with the employees of Borrower under IRC Section 414(o). 

        “Event
of Default” has the meaning set forth in Section 8. 

        “Excess
Availability” means the amount, as of the date any determination thereof is to be
made, equal to Availability minus the aggregate amount, if any, of all trade payables of
Borrower aged in excess of historical levels with respect thereto and all book overdrafts
in excess of historical practices with respect thereto, in each case as determined by
Administrative Agent in its Permitted Discretion. 

        “Excess
Cash Flow” means, for any fiscal period of Borrower, without duplication,
(i) Consolidated Net Income for such period, plus (ii) all non-cash
charges of Borrower and its Subsidiaries deducted in arriving at Consolidated Net Income
for such period, less (iii) all non-cash credits of Borrower and its
Subsidiaries included in arriving at Consolidated Net Income for such period, less
(iv) all scheduled and mandatory cash principal payments on the Advances and the Term
Loan made during such period (but, in the case of the Advances, only to the extent that
the Revolver A Commitment or the Revolver B Commitment, as applicable, is permanently
reduced by the amount of such payments), and all scheduled and mandatory cash principal
payments on other Indebtedness of Borrower and its Subsidiaries during such period to the
extent such other Indebtedness is permitted to be incurred, and such payments are
permitted to be made, under this Agreement, less (v) the cash portion of
Capital Expenditures made by Borrower and its Subsidiaries during such period to the
extent permitted to be made under this Agreement, less (vi) any cash gain included
in Consolidated Net Income which is attributable to the Ocean Spray Documents or any
related transactions and which is used to fund a portion of the Special Dividend, and
less (vii) other distributions paid in cash during such period to the extent
permitted under Section 7.11. 

        “Exchange
Act” means the Securities Exchange Act of 1934, as in effect from time to time. 

        “Excluded Collateral”
means the real and personal property of Borrower set forth on Schedule 4.1 hereto. 

        “Extraordinary
Receipts” means any cash received by Borrower or any of its Subsidiaries not in
the ordinary course of business (and not consisting of proceeds described in Section
2.4(c)(ii) hereof), including, without limitation, (i) foreign, United States,
state or local tax refunds, (ii) pension plan reversions, (iii) proceeds of
insurance, provided that such proceeds shall not include proceeds of insurance with
respect to Accounts or Inventory, (iv) judgments, proceeds of settlements or other
consideration of any kind in connection with any cause of action (in each case, other than
in connection with an account arising out of the sale of goods or rendition of services)
net of (a) any out-of-pocket costs, charges, fees and expenses that were incurred by the
Borrower or any of its Subsidiaries in the course of procuring any such judgment,
settlement or other consideration and (b) any proceeds, settlement or consideration
received by the Borrower or any Subsidiary which are in compensation for such
Borrower’s or Subsidiaries’ actual out of pocket losses and expenses, and
(v) condemnation awards (and payments in lieu thereof). 

-14- 

        “Farm
Products” means all of Borrower’s now owned or hereafter existing or
acquired farm products of every kind and nature, including without limitation, crops,
livestock and supplies used or produced in farming operations, and products of crops or
livestock, wherever located. 

        “Farm
Products Sellers” shall mean, individually and collectively, sellers or suppliers
to Borrower of any farm product (as such term is defined in both the Food Security Act and
the Code) and including any perishable agricultural commodity (as defined in PACA). 

        “FEIN”means
Federal Employer Identification Number. 

        “Food
Security Act” shall mean the Food Security Act of 1984, 7 U.S.C. Section 1631 et
seq., as the same now exists or may hereafter from time to time be amended, modified,
recodified or supplemented, together with all rules and regulations thereunder. 

        “Food
Security Act Notices” shall have the meaning set forth in Section 5.21. 

        “Foothill”
means Wells Fargo Foothill, Inc., a California corporation. 

        “Funding
Date” means the date on which a Borrowing occurs. 

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

        “General
Intangibles” means all of Borrower’s now owned or hereafter acquired right,
title, and interest with respect to general intangibles (including payment intangibles,
contract rights (including all rights of the Borrower under the Ocean Spray Documents),
rights to payment, rights arising under common law, statutes, or regulations, choses or
things in action, goodwill, patents, trade names, trademarks, servicemarks, copyrights,
blueprints, drawings, purchase orders, customer lists, monies due or recoverable from
pension funds, route lists, rights to payment and other rights under any royalty or
licensing agreements, infringement claims, computer programs, information contained on
computer disks or tapes, software, literature, reports, catalogs, money, deposit accounts,
insurance premium rebates, tax refunds, and tax refund claims), and any and all supporting
obligations in respect thereof, and any other personal property other than goods,
Accounts, Investment Property, and Negotiable Collateral. 

-15- 

        “Governing
Documents” means, with respect to any Person, the certificate or articles of
incorporation, by-laws, or other organizational documents of such Person. 

        “Governmental
Authority” means any federal, state, local, or other governmental or
administrative body, instrumentality, department, or agency or any court, tribunal,
administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body. 

        “Guarantor”
and “Guarantors” means, individually and collectively, NCI Foods, LLC,
Wildhawk, Inc., and Northland Insurance Center, Inc. 

        “Hazardous
Materials” means (a) substances that are defined or listed in, or otherwise
classified pursuant to, any applicable laws or regulations as “hazardous
substances,” “hazardous materials,” “hazardous wastes,”
“toxic substances,” or any other formulation intended to define, list, or
classify substances by reason of deleterious properties such as ignitability, corrosivity,
reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil,
petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic
gas, drilling fluids, produced waters, and other wastes associated with the exploration,
development, or production of crude oil, natural gas, or geothermal resources, (c) any
flammable substances or explosives or any radioactive materials, and (d) asbestos in any
form or electrical equipment that contains any oil or dielectric fluid containing levels
of polychlorinated biphenyls in excess of 50 parts per million. 

        “Indebtedness”
means (a) all obligations of Borrower for borrowed money, (b) all obligations of Borrower
evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement
or other obligations of Borrower in respect of letters of credit, bankers acceptances,
interest rate swaps, or other financial products, (c) all obligations of Borrower under
Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any
asset of Borrower, irrespective of whether such obligation or liability is assumed, (e)
all obligations of Borrower for the deferred purchase price of assets (other than trade
debt incurred in the ordinary course of Borrower’s business and repayable in
accordance with customary trade practices), and (f) any obligation of Borrower
guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,
endorsed, co-made, discounted, or sold with recourse to Borrower) any obligation of any
other Person. 

        “Indemnified
Liabilities” has the meaning set forth in Section 11.3. 

        “Indemnified Person”
has the meaning set forth in Section 11.3. 

        “Insolvency
Proceeding” means any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other state or federal bankruptcy or
insolvency law, assignments for the benefit of creditors, formal or informal moratoria,
compositions, extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief. 

        “Intangible
Assets” means, with respect to any Person, that portion of the book value of all
of such Person’s assets that would be treated as intangibles under GAAP. 

-16- 

        “Interest
Expense” means, for any period, the aggregate amount of the interest expense of
the Borrower and its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP. 

        “Interest
Period” means, with respect to each LIBOR Rate Loan, a period commencing on the
date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan) and
ending 1, 2, or 3 months thereafter; provided, however, that (a) if any
Interest Period would end on a day that is not a Business Day, such Interest Period shall
be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b)
interest shall accrue at the applicable rate based upon the LIBOR Rate from and including
the first day of each Interest Period to, but excluding, the day on which any Interest
Period expires, (c) any Interest Period that would end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day, (d) with respect to an Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding day in
the calendar month at the end of such Interest Period), the Interest Period shall end on
the last Business Day of the calendar month that is 1, 2, or 3 months after the date on
which the Interest Period began, as applicable, and (e) Borrower may not elect an Interest
Period which will end after the Maturity Date. 

        “Inventory”
means all Borrower’s now owned or hereafter acquired right, title, and interest with
respect to inventory, including goods held for sale or lease or to be furnished under a
contract of service, goods that are leased by Borrower as lessor, goods that are furnished
by Borrower under a contract of service, and raw materials, work in process, or materials
used or consumed in Borrower’s business. 

        “Inventory
Reserves” means reserves (determined from time to time by Administrative Agent in
its Permitted Discretion) for (a) the estimated costs relating to unpaid freight charges,
warehousing or storage charges, taxes, duties, and other similar unpaid costs associated
with the acquisition of Eligible In-Transit Inventory by Borrower, plus (b)the estimated
reclamation claims of unpaid sellers of Inventory sold to Borrower. 

        “Investment”
means, with respect to any Person, any investment by such Person in any other Person
(including Affiliates) in the form of loans, guarantees, advances, or capital
contributions (excluding (a) commission, travel, and similar advances to officers and
employees of such Person made in the ordinary course of business, and (b) bona fide
Accounts arising from the sale of goods or rendition of services in the ordinary course of
business consistent with past practice), purchases or other acquisitions for consideration
of Indebtedness or Stock, and any other items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. 

        “Investment
Property” means all of Borrower’s now owned or hereafter acquired right,
title, and interest with respect to “investment property” as that term is
defined in the Code, and any and all supporting obligations in respect thereof. 

        “IRC”
means the Internal Revenue Code of 1986, as in effect from time to time. 

-17- 

        “Issuing
Lender” means Foothill or any other Lender that, at the request of Borrower and
with the consent of Administrative Agent agrees, in such Lender’s sole discretion, to
become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings pursuant to
Section 2.12. 

        “L/C”
has the meaning set forth in Section 2.12(a). 

        “L/C
Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of
Credit. 

        “L/C
Undertaking” has the meaning set forth in Section 2.12(a). 

        “Lender”
and “Lenders” have the respective meanings set forth in the preamble to
this Agreement, and shall include any other Person made a party to this Agreement in
accordance with the provisions of Section 14.1. 

        “Lender
Group” means, individually and collectively, each of the Lenders (including the
Issuing Lender) and Agents. 

        “Lender
Group Expenses” means all (a) costs or expenses (including taxes, and insurance
premiums) required to be paid by Borrower under any of the Loan Documents that are paid or
incurred by the Lender Group, (b) fees or charges paid or incurred by Lender Group in
connection with the Lender Group’s transactions with Borrower, including, fees or
charges for photocopying, notarization, couriers and messengers, telecommunication, public
record searches (including tax lien, litigation, and UCC searches and including searches
with the patent and trademark office, the copyright office, or the department of motor
vehicles), filing, recording, publication, appraisal (including periodic Collateral
appraisals or business valuations to the extent of the fees and charges (and up to the
amount of any limitation) contained in this Agreement), real estate surveys, real estate
title policies and endorsements, and environmental audits, (c) costs and expenses incurred
by Administrative Agent in the disbursement of funds to Borrower (by wire transfer or
otherwise), (d) charges paid or incurred by Administrative Agent resulting from the
dishonor of checks, (e) reasonable costs and expenses paid or incurred by the Lender Group
to correct any default or enforce any provision of the Loan Documents, or in gaining
possession of, maintaining, handling, preserving, storing, shipping, selling, preparing
for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of
whether a sale is consummated, (f) audit fees and expenses of Lender Group related to
audit examinations of the Books to the extent of the fees and charges (and up to the
amount of any limitation) contained in this Agreement, (g) reasonable costs and expenses
of third party claims or any other suit paid or incurred by the Lender Group in enforcing
or defending the Loan Documents or in connection with the transactions contemplated by the
Loan Documents or the Lender Group’s relationship with Borrower hereunder or any
guarantor of the Obligations, (h) Agents’ and each Lender’s reasonable fees and
expenses (including attorneys fees) incurred in advising, structuring, drafting,
reviewing, administering, or amending the Loan Documents, and (i) Agents’ and each
Lender’s reasonable fees and expenses (including attorneys fees) incurred in
terminating, enforcing (including attorneys fees and expenses incurred in connection with
a “workout,” a “restructuring,” or an Insolvency Proceeding concerning
Borrower or in exercising rights or remedies under the Loan Documents), or defending the
Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action
concerning the Collateral. 

-18- 

        “Lender-Related
Person” means, with respect to any Lender, such Lender, together with such
Lender’s Affiliates, and the officers, directors, employees, and agents of such
Lender. 

        “Letter
of Credit” means an L/C or an L/C Undertaking, as the context requires. 

        “Letter of
Credit Usage” means, as of any date of determination, the aggregate undrawn
amount of all outstanding Letters of Credit plus 100% of the amount of outstanding time
drafts accepted by an Underlying Issuer as a result of drawings under Underlying Letters
of Credit. 

        “LIBOR
Deadline” has the meaning set forth in Section 2.16(b)(i). 

        “LIBOR Notice”
means a written notice in the form of Exhibit L-1. 

        “LIBOR
Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per
annum determined by Administrative Agent (rounded upwards, if necessary, to the next
1/100%) by dividing (a) the Base LIBOR Rate for such Interest Period, by (b)
100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of
the effective day of any change in the Reserve Percentage. 

        “LIBOR
Rate Loan” means each portion of the B Advances and the Term Loan that bears
interest at a rate determined by reference to the LIBOR Rate. 

        “LIBOR
Rate Term Loan Margin” means seven (7) percentage points. 

        “Lien”
means any interest in an asset securing an obligation owed to, or a claim by, any Person
other than the owner of the asset, whether such interest shall be based on the common law,
statute, or contract, whether such interest shall be recorded or perfected, and whether
such interest shall be contingent upon the occurrence of some future event or events or
the existence of some future circumstance or circumstances, including the lien or security
interest arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or
from a lease, consignment, or bailment for security purposes and also including
reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting Real Property. 

        “Liquidating
Assets” shall mean the assets of Borrower listed on the attached Schedule 1.1, as
in effect on the Closing Date. 

        “Loan
Account” has the meaning set forth in Section 2.10. 

        “Loan Documents”
means this Agreement, the Cash Management Agreements, the Control Agreements, the
Disbursement Letter, the WFF Fee Note, the Letters of Credit, the Mortgages, the
Officers’ Certificate, the Stock Pledge Agreement, the Subsidiary Documents, the
Trademark Security Agreement, any note or notes executed by Borrower in connection with
this Agreement and payable to a member of the Lender Group, and any other agreement
entered into, now or in the future, by Borrower, any Guarantor and the Lender Group in
connection with this Agreement or the Existing Loan and Security Agreement. 

-19- 

        “Material
Adverse Change” means (a) a material adverse change in the business, operations,
results of operations, assets, liabilities or condition (financial or otherwise) of
Borrower, (b) a material impairment of Borrower’s ability to perform its obligations
under the Loan Documents to which it is a party or of the Lender Group’s ability to
enforce the Obligations or realize upon Collateral with an aggregate fair market value of
more than $1,000,000, or (c) a material impairment of the enforceability or priority of
the Collateral Agent’s Liens with respect to Collateral (except for Inventory subject
to a valid and perfected Lien in favor of the Collateral Agent in the possession or
control of Ocean Spray that is located on real property leased by Ocean Spray or in a
contract warehouse that is subject to a prior perfected Lien in favor of the lessor or
warehouseman with respect to such Inventory under applicable law), with an aggregate fair
market value of more than $1,000,000, as a result of an action or failure to act on the
part of Borrower. 

        “Material
Subsidiary” shall mean any Subsidiary of Borrower, excluding W.S.C. Water
Management Corp., which owns assets with a value equal to 5% or more of the value of the
Borrower’s assets, or which owns General Intangibles or other property necessary or
material to the Borrower’s conduct of its business. 

        “Maturity
Date” has the meaning set forth in Section 3.4. 

        “Maximum
Credit Line” means $26,000,000. 

        “Maximum
Revolver A Amount” means $6,000,000; provided that while the WFF Fee Note remains
outstanding, the Maximum Revolver A Amount shall be reduced by the outstanding principal
amount of the WFF Fee Note. 

        “Maximum
Revolver B Amount” means $5,000,000 

        “Mitigation
Bank” means the property owned by the Borrower in Wood County, Wisconsin and
recognized as a wetlands mitigation banking site. 

        “Mortgages”
means, individually and collectively, one or more mortgages, deeds of trust, or deeds to
secure debt, executed and delivered by Borrower in favor of Collateral Agent, for the
benefit of the Lender Group, in form and substance reasonably satisfactory to Collateral
Agent, that encumber the Real Property Collateral and the related improvements thereto. 

        “Motor
Vehicles” means motor vehicles for which the title to such motor vehicles is
governed by a certificate of title or ownership. 

        “Negotiable
Collateral” means all of Borrower’s now owned and hereafter acquired right,
title, and interest with respect to letters of credit, letter of credit rights,
instruments, promissory notes, drafts, documents, and chattel paper (including electronic
chattel paper and tangible chattel paper), and any and all supporting obligations in
respect thereof. 

-20- 

        “Net
Cash Proceeds” means, (i) with respect to any Permitted Disposition by any Person
or any of its Subsidiaries, the amount of cash received (directly or indirectly) from time
to time (whether as initial consideration or through the payment or disposition of
deferred consideration) by or on behalf of such Person or such Subsidiary, in connection
therewith after deducting therefrom only (A) the amount of any Indebtedness secured
by any Lien permitted by Section 5.2 on any asset (other than Indebtedness assumed by the
purchaser of such asset) which is required to be, and is, repaid in connection with such
Permitted Disposition (other than Indebtedness under this Agreement), (B) reasonable
fees, costs and expenses related thereto incurred by such Person or such Subsidiary in
connection therewith, (C) transfer taxes paid to any taxing authorities by such
Person or such Subsidiary in connection therewith, and (D) net income taxes and real
estate taxes to be paid in connection with such Permitted Disposition (after taking into
account any tax credits or deductions) and (ii) with respect to the sale or issuance
by any Person or any of its Subsidiaries of any shares of its capital Stock, the aggregate
amount of cash received (directly or indirectly) from time to time (whether as initial
consideration or through the payment or disposition of deferred consideration) by or on
behalf of such Person or such Subsidiary in connection therewith, after deducting
therefrom only (A) reasonable fees, costs and expenses related thereto incurred by
such Person or such Subsidiary in connection therewith, (B) transfer taxes paid by such
Person or such Subsidiary in connection therewith and (C) net income taxes to be paid in
connection therewith (after taking into account any tax credits or deductions); in each
case of clause (i) and (ii) to the extent, but only to the extent, that the amounts so
deducted are (x) actually paid to a Person that, except in the case of reasonable
out-of-pocket expenses, is not an Affiliate of such Person or any of its Subsidiaries and
(y) properly attributable to such transaction or to the asset that is the subject thereof. 

        “Net
Liquidation Percentage” means the percentage of the book value of Borrower’s
Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory,
such percentage to be as determined from time to time by a qualified appraisal company
selected by Administrative Agent. 

        “Obligations”
means all loans (including the Term Loan), Advances, debts, principal, interest (including
any interest that, but for the provisions of the Bankruptcy Code, would have accrued),
contingent reimbursement obligations with respect to outstanding Letters of Credit,
premiums, liabilities (including all amounts charged to Borrower’s Loan Account
pursuant hereto), obligations, fees, charges, costs, Lender Group Expenses (including any
fees or expenses that, but for the provisions of the Bankruptcy Code, would have accrued),
lease payments, guaranties, covenants, and duties of any kind and description owing by
Borrower to the Lender Group pursuant to or evidenced by the Loan Documents and
irrespective of whether for the payment of money, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, and including all
interest not paid when due and all Lender Group Expenses that Borrower is required to pay
or reimburse by the Loan Documents, by law, or otherwise. Any reference in this Agreement
or in the Loan Documents to the Obligations shall include all amendments, changes,
extensions, modifications, renewals replacements, substitutions, and supplements, thereto
and thereof, as applicable, both prior and subsequent to any Insolvency Proceeding. 

-21- 

        “Ocean
Spray” means Ocean Spray Cranberries, Inc., a Delaware corporation, and its
successors. 

        “Ocean
Spray Documents” means the Ocean Spray Escrow Agreement, Ocean Spray Option
Agreement, Ocean Spray Purchase Agreement and the Ocean Spray Toll Processing Agreement,
each as may be amended, restated, supplemented or otherwise modified from time to time to
the extent permitted under Section 7.8(c). 

        “Ocean
Spray Escrow Agreement” means the escrow agreement entered into as of
September 23, 2004, by and among Ocean Spray, Borrower and Wells Fargo. 

        “Ocean
Spray Option Agreement” means the option agreement entered into as of
September 23, 2004, by and between Ocean Spray and Borrower. 

        “Ocean
Spray Purchase Agreement” means the asset purchase agreement made and
entered into as of September 23, 2004, by and between Ocean Spray and Borrower. 

        “Ocean
Spray Toll Processing Agreement” means the toll processing agreement entered into
as of September 23, 2004, by and between Ocean Spray and Borrower. 

        “Officers’
Certificate” means the representations and warranties of officers form submitted
by Collateral Agent to Borrower, together with Borrower’s completed responses to the
inquiries set forth therein, the form and substance of such responses to be satisfactory
to Collateral Agent. 

        “Originating
Lender” has the meaning set forth in Section 14.1(d). 

        “Overadvance”
has the meaning set forth in Section 2.5. 

        “PACA”
shall mean the Perishable Agricultural Commodities Act of 1930, as amended, 7 U.S.C.
Section 499a et seq., as the same now exists or may from time to time hereafter be
amended, modified, recodified or supplemented, together with all rules, regulations and
interpretations thereunder or related thereto. 

        “Participant”
has the meaning set forth in Section 14.1(d). 

        “Permitted
Discretion” means a determination made in good faith and in the exercise of
reasonable (from the perspective of a secured asset-based lender) business judgment. 

        “Permitted
Dispositions” means (a) sales or other dispositions, including trade-ins in the
ordinary course of business, by Borrower of Equipment that is no longer used or useful in
the conduct of Borrower’s business, with a fair market value not to exceed $250,000
in each year, or substantially worn, damaged, or obsolete in the ordinary course of
Borrower’s business, (b) sales by Borrower of Inventory to buyers in the ordinary
course of business, (c) the use or transfer of money or Cash Equivalents by Borrower in a
manner that is not prohibited by the terms of this Agreement or the other Loan Documents,
(d) the licensing by Borrower, on a non-exclusive basis, of patents, trademarks,
copyrights, and other intellectual property rights in the ordinary course of
Borrower’s business, (e) the sale or other disposition by Borrower of the Liquidating
Assets, (f) sales or dispositions of property pursuant to the Ocean Spray Option
Agreement, provided that the purchase price for all property sold thereunder shall be the
purchase price provided for in the Ocean Spray Option Agreement as in effect on the date
hereof and (g) sales or dispositions of wetland credits from the Mitigation Bank. 

-22- 

        “Permitted
Investments” means (a) investments in Cash Equivalents, (b) investments in
negotiable instruments for collection, (c) advances made in connection with purchases of
goods or services in the ordinary course of business, (d) Stock of Subsidiaries, (e) Stock
of Beaver Creek Cranberry Growers Assoc., Inc., and (f) a loan in the original principal
amount of $800,000 to Teske Rayala Cranberry Co., a Wisconsin Limited Partnership. 

        “Permitted
Liens” means (a) Liens held by Collateral Agent for the benefit of Agents and the
Lenders, (b) Liens for unpaid taxes that either (i) are not yet delinquent, or (ii) do not
constitute an Event of Default hereunder and are the subject of Permitted Protests, (c)
Liens set forth on Schedule P-1, (d) the interests of lessors under operating
leases, (e) purchase money Liens or the interests of lessors under Capital Leases to the
extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so
long as such Lien attaches only to the asset purchased or acquired and the proceeds
thereof, (f) Liens arising by operation of law in favor of warehousemen, landlords,
processors, carriers, mechanics, materialmen, laborers, wage claimants, or suppliers,
incurred in the ordinary course of business of Borrower and not in connection with the
borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii)
are the subject of Permitted Protests, (g) Liens arising from deposits made in connection
with obtaining worker’s compensation or other unemployment insurance, (h) Liens or
deposits to secure performance of bids, tenders, or leases incurred in the ordinary course
of business of Borrower and not in connection with the borrowing of money, (i) Liens
granted as security for surety or appeal bonds in connection with obtaining such bonds in
the ordinary course of business of Borrower, (j) Liens resulting from any judgment or
award that is not an Event of Default hereunder, (k) with respect to Real Property
Collateral, other than Liens for unpaid and delinquent taxes or Liens securing
Indebtedness for borrowed money, any Liens, easements, rights of way, and zoning
restrictions that do not materially interfere with or impair the use or operation thereof
by Borrower, (l) with respect to any Real Property that is not part of the Real Property
Collateral, Liens, easements, rights of way, and zoning restrictions that do not
materially interfere with or impair the use or operation thereof by Borrower, (m) Liens or
Trust Claims on Borrower’s Inventory or other assets, in favor of any Farm Product
Seller, whether or not such Liens or claims are inchoate or are fully perfected (with
respect to perfected liens, to the extent Administrative Agent has established and
maintains a Reserve with respect thereto) and payable, arising from any federal or state
statute, including, without limitation, PACA, the Food Security Act, the Oregon
Agricultural Produce Lien or Agricultural Services Lien statutes, (O.R.S. §87.700, et
seq.), the Wisconsin Agricultural Lien statute (W.S.A. §409.109, et seq.), or
otherwise arising by operation of law, and (n) Liens arising by operation of law in favor
of Ocean Spray, incurred in the ordinary course of business of Borrower in connection with
processing of Inventory performed by Ocean Spray, so long as such Liens (i) are not in
connection with the borrowing of money, (ii) are for sums not yet delinquent, or are being
promptly and diligently contested with an appropriate reserve established on
Borrower’s books and, with no impairment of the enforceability, validity or priority
of any of the Collateral Agent’s Liens, and (iii) are subject of a Collateral Access
Agreement or of an assignment of rights and remedies and processor acknowledgment, in form
and substance satisfactory to Collateral Agent and Lenders. 

-23- 

        “Permitted
Protest” means the right of Borrower to protest any Lien (other than any such
Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the
subject of a United States federal tax lien), or rental payment, provided that (a) a
reserve with respect to such obligation is established on the Books in such amount as is
required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently
by Borrower in good faith, and (c) Collateral Agent is satisfied that, while any such
protest is pending, there will be no impairment of the enforceability, validity, or
priority of any of the Collateral Agent’s Liens. 

        “Permitted
Purchase Money Indebtedness” means, as of any date of determination, Purchase
Money Indebtedness incurred after the Closing Date in an aggregate principal amount
outstanding at any one time not in excess of $1,000,000. 

        “Person”
means natural persons, corporations, limited liability companies, limited partnerships,
general partnerships, limited liability partnerships, joint ventures, trusts, land trusts,
business trusts, or other organizations, irrespective of whether they are legal entities,
and governments and agencies and political subdivisions thereof. 

        “Personal
Property Collateral” means all Collateral other than Real Property. 

        “Projections”
means Borrower’s forecasted (a) balance sheets, (b) profit and loss statements, and
(c) cash flow statements, all prepared on a basis consistent with Borrower’s
historical financial statements, together with appropriate supporting details and a
statement of underlying assumptions. 

        “Pro
Rata Share” means: 

        (a)                 with
respect to a Lender’s obligation to make A Advances and receive           payments
of principal, interest, fees, costs, and expenses with respect thereto,           the
percentage obtained by dividing (i) such Lender’s Revolver A           Commitment,
by (ii) the aggregate Revolver A Commitments of all Lenders,  

        (b)                 with
respect to a Lender’s obligation to participate in Letters of Credit,           to
reimburse the Issuing Lender, and to receive payments of fees with respect
          thereto, the percentage obtained by dividing (i) such Lender’s Revolver A
          Commitment, by (ii) the aggregate Revolver A Commitments of all Lenders,  

        (c)                 with
respect to a Lender’s obligation to make B Advances and receive           payments
of principal, interest, fees, costs, and expenses with respect thereto,           the
percentage obtained by dividing (i) such Lender’s Revolver B           Commitment,
by (ii) the aggregate Revolver B Commitments of all Lenders,  

        (d)                 with
respect to a Lender’s obligation to make the Term Loan and receive
          payments of interest, fees, and principal with respect thereto, the percentage
          obtained by dividing (i) such Lender’s Term Loan Commitment, by (ii) the
          aggregate amount of all Lenders’ Term Loan Commitments, and  

-24- 

        (e)                 with
respect to all other matters (including the indemnification obligations           arising
under Section 16.7), the percentage obtained by dividing (i) such           Lender’s
Total Commitment, by (ii) the aggregate amount of Total           Commitments of all
Lenders; provided, however, that, in each case,           in the event all
Commitments have been terminated, Pro Rata Share shall be           determined according
to the Commitments in effect immediately prior to such           termination.  

        “PSA”
shall mean the Packers and Stockyard Act of 1921, 7 U.S.C. Section 181 et seq., as the
same now exists or may from time to time hereafter be amended, modified, recodified or
supplemented, together with all rules, regulations and interpretations thereunder or
related thereto. 

        “Purchase
Money Indebtedness” means Indebtedness (other than the Obligations, but including
Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the
acquisition of any fixed assets for the purpose of financing all or any part of the
acquisition cost thereof. 

        “Real
Property” means any estates or interests in real property now owned or hereafter
acquired by Borrower and the improvements thereto. 

        “Real
Property Collateral” means the parcel or parcels of Real Property identified on
Schedule R-1 and any Real Property hereafter acquired by Borrower. 

        “Record”
means information that is inscribed on a tangible medium or which is stored in an
electronic or other medium and is retrievable in perceivable form. 

        “Register”
has the meaning set forth in Section 14.1(g). 

        “Registered
Loan” has the meaning set forth in Section 2.14. 

        “Registered Note”
has the meaning set forth in Section 2.14. 

        “Remedial
Action” means all actions taken to (a) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate, or in any way address a release or threatened release of
Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a
release or threatened release of Hazardous Materials so they do not migrate or endanger or
threaten to endanger public health or welfare or the indoor or outdoor environment, (c)
perform any pre-remedial studies, investigations, or post-remedial operation and
maintenance activities, or (d) conduct any other actions authorized by 42 U.S.C.
§9601. 

        “Report”
has the meaning set forth in Section 16.17. 

        “Required
Availability” means Excess Availability and unrestricted cash and Cash
Equivalents in an aggregate amount of not less than $5,000,000. 

        “Required
Lenders” means, at any time, Lenders whose Pro Rata Shares (calculated under
clauses (c) and (d) of the definition thereof) aggregate 66-2/3% of the sum of (i) the
Term Loan Commitment (or, if the Term Loan Commitment has been terminated irrevocably, the
Term Loan Commitment in effect immediately prior to such termination) and (ii) the
Revolver B Commitment (or, if the Revolver B Commitment has been terminated irrevocably,
the Revolver B Commitment in effect immediately prior to such termination), provided that,
notwithstanding anything to the contrary (x) solely for purpose of determining Required
Lenders, the Term Loan Commitment and Revolver B Commitment, if any, held by Sun Capital
and its Affiliates shall be excluded and (y) if at any time Sun Capital and its Affiliates
hold all of the Term Loan Commitment and Revolver B Commitment, the Required Revolver A
Lenders shall constitute Required Lenders. 

-25- 

        “Required
Revolver A Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares
(calculated under clause (a) of the definition of Pro Rata Shares) equal or exceed
66-2/3%. 

        “Reserves”
means, with respect to the Borrowing Base (a) the Inventory Reserves, (b) the Supplemental
Reserve, and (c) such other reserves against Eligible Accounts, Eligible Inventory or
Availability that Administrative Agent may, in its reasonable credit judgment, establish
from time to time. Without limiting the generality of the foregoing, (i) Reserves
established to ensure the payment of accrued Indebtedness or other charges Borrower is
obligated to pay and discharge pursuant to this Agreement, shall be deemed to be a
reasonable exercise of Administrative Agent’s credit judgment and (ii) Administrative
Agent shall have the right at all times to establish a reserve, and to increase and
decrease such reserve from time to time, in respect of any or all amounts owed, or which
may under any contingency be owed, by Borrower to any Farm Products Sellers, any wage
claimants or other Person, including, without limitation, 65% of any amounts owed to a
third party grower, which amounts are or may be secured by any of the Collateral, or if
Administrative Agent believes in good faith such reserve is or may be necessary to protect
it against statutory or common law Liens or trust fund claims or other Liens in favor of
any Farm Products Sellers or any agent to any Farm Product Sellers or any other Person
with a security interest in the assets of such supplier or seller or any category of
Indebtedness or other obligation or liability owed to a third party, the payment of which
is or may be secured by a statutory or common law Lien or entitled to the benefit of a
trust or other Lien upon any of the assets and properties of Borrower. 

        “Reserve
Percentage” means, on any day, for any Lender, the maximum percentage prescribed
by the Board of Governors of the Federal Reserve System (or any successor Governmental
Authority) for determining the reserve requirements (including any basic, supplemental,
marginal, or emergency reserves) that are in effect on such date with respect to
eurocurrency funding (currently referred to as “eurocurrency liabilities”) of
that Lender, but so long as such Lender is not required or directed under applicable
regulations to maintain such reserves, the Reserve Percentage shall be zero. 

        “Revolver
A Commitment” means, with respect to each Lender, its Revolver A Commitment, and,
with respect to all Lenders, their Revolver A Commitments, in each case as such Dollar
amounts are set forth beside such Lender’s name under the applicable heading on
Schedule C-1 or on the signature page of the Assignment and Acceptance Agreement pursuant
to which such Lender became a Lender hereunder in accordance with the provisions of
Section 14.1. 

-26- 

        “Revolver
A Usage” means, as of any date of determination, the sum of (a) the then extant
amount of outstanding A Advances, plus (b) the then extant amount of the Letter of Credit
Usage. 

        “Revolver
B Commitment” means, with respect to each Lender, its Revolver B Commitment, and,
with respect to all Lenders, their Revolver B Commitments, in each case as such Dollar
amounts are set forth beside such Lender’s name under the applicable heading on
Schedule C-1 or on the signature page of the Assignment and Acceptance Agreement pursuant
to which such Lender became a Lender hereunder in accordance with the provisions of
Section 14.1. 

        “Risk
Participation Liability” means, as to each Letter of Credit, all reimbursement
obligations of Borrower to the Issuing Lender with respect to an L/C Undertaking,
consisting of (a) the amount available to be drawn or which may become available to be
drawn, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer
to the extent not reimbursed by Borrower, whether by the making of an Advance or
otherwise, and (c) all accrued and unpaid interest, fees, and expenses payable with
respect thereto. 

        “SEC”
means the United States Securities and Exchange Commission and any successor thereto. 

        “Securities
Account” means a “securities account” as that term is defined in the
Code. 

        “Settlement”
has the meaning set forth in Section 2.3(e)(i). 

        “Settlement
Date” has the meaning set forth in Section 2.3(e)(i). 

        “Solvent”
means, with respect to any Person on a particular date, that such Person is not insolvent
(as such term is defined in the Uniform Fraudulent Transfer Act). 

        “Special
Dividend” means (a) the one-time dividend to shareholders, (b) bonus payments
made to management, and (c) payments on any warrant issued by Borrower, all in an
aggregate amount not to exceed $33 million and made within 20 days of the Closing Date,
using the proceeds of the B Advances made on the Closing Date, the Term Loan and cash of
Borrower in the amount of approximately $13 million. 

        “Special
Asset-Sale Dividend” has the meaning set forth in Section 7.11. 

        “Stock”
means all shares, options, warrants, interests, participations, or other equivalents
(regardless of how designated) of or in a Person, whether voting or nonvoting, including
common stock, preferred stock, or any other “equity security” (as such term is
defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under
the Exchange Act). 

        “Stock
Pledge Agreement” means a stock pledge agreement, in form and substance
satisfactory to each Agent, executed and delivered by Borrower to Collateral Agent with
respect to the pledge of the Stock owned by Borrower. 

-27- 

        “Subsidiary”
of a Person means a corporation, partnership, limited liability company, or other entity
in which that Person directly or indirectly owns or controls the shares of Stock having
ordinary voting power to elect a majority of the board of directors (or appoint other
comparable managers) of such corporation, partnership, limited liability company, or other
entity. 

        “Subsidiary
Documents” means the Guarantee, Trademark Security Agreement and General Security
Agreement by each Guarantor with or in favor of Collateral Agent and any other agreement
entered into, now or in the future, by any Guarantor and the Lender Group in connection
with this Agreement or the Existing Loan and Security Agreement. 

        “Sun
Capital” shall mean Sun Capital Partners Management, LLC. 

        “Sun Capital
Management Agreement” shall mean the Management Services Agreement dated as of
November 5, 2001 between Sun Capital and Borrower, as in effect on the Closing Date. 

        “Supplemental
Reserve” means the reserve established on the Closing Date in the amount of
$2,500,000, provided that, after the Closing Date, the Supplemental Reserve shall be
reduced to the outstanding principal amount of the WFF Fee Note in the event of any
reduction of such principal amount. 

        “Swing
Lender” means Foothill or any other Lender that, at the request of Borrower and
with the consent of Administrative Agent agrees, in such Lender’s sole discretion, to
become the Swing Lender hereunder. 

        “Swing
Loan” has the meaning set forth in Section 2.3(d)(i). 

        “Taxes”
has the meaning set forth in Section 16.11. 

        “Term
Loan” has the meaning set forth in Section 2.2. 

        “Term
Loan Amount” means $15,000,000. 

        “Term
Loan Commitment” means, with respect to each Lender, its Term Loan Commitment,
and, with respect to all Lenders, their Term Loan Commitments, in each case as such Dollar
amounts are set forth beside such Lender’s name under the applicable heading on
Schedule C-1 or on the signature page of the Assignment and Acceptance Agreement
pursuant to which such Lender became a Lender hereunder in accordance with the provisions
of Section 14.1. 

        “Toll
Processing Concentrate Value” shall mean for any period (a) (i) the Eligible
Inventory of the Borrower in the possession or control of Ocean Spray pursuant to the
Ocean Spray Toll Processing Agreement (the sum of the number of paid weight barrels of
frozen cranberries as reported by Ocean Spray on a monthly basis multiplied by 1.66
pursuant to paragraph 3 of the Toll Processing Agreement), multiplied, per gallon, by (ii)
the average price per gallon (adjusted for international sales to not include freight and
duty expenses) at which Ocean Spray or its Affiliates sold cranberry concentrate to
third-party buyers (excluding sales for that concentrate which is used for the manufacture
of Ocean Spray branded products) in arms length transactions of 50 Brix cranberry
concentrate during the most recent six-month period, minus (b) the aggregate fees payable
by the Borrower for Ocean Spray’s processing services as set forth in Exhibit 4 to
the Ocean Spray Toll Processing Agreement for such period. 

-28- 

        “Total
Commitment” means, with respect to each Lender, its Total Commitment, and, with
respect to all Lenders, their Total Commitments, in each case as such Dollar amounts are
set forth beside such Lender’s name under the applicable heading on Schedule
C-1 attached hereto or on the signature page of the Assignment and Acceptance
Agreement pursuant to which such Lender became a Lender hereunder in accordance with the
provisions of Section 14.1. 

        “Trademark
Security Agreement” means a Trademark Security Agreement executed and delivered
by Borrower and Collateral Agent, the form and substance of which is satisfactory to
Collateral Agent. 

        “Underlying
Issuer” means a third Person which is the beneficiary of an L/C Undertaking and
which has issued a letter of credit at the request of the Issuing Lender for the benefit
of Borrower. 

        “Underlying
Letter of Credit” means a letter of credit that has been issued by an Underlying
Issuer. 

        “Voidable
Transfer” has the meaning set forth in Section 17.7. 

        “Wells
Fargo” means Wells Fargo Bank, National Association, a national banking
association. 

        “WFF
Fee Note” means the Fee Note in the original principal amount of $2,500,000,
payable by Borrower to Foothill. 

    1.2.     Accounting
Terms. All accounting terms not specifically                defined herein
shall be construed in accordance with GAAP. When used herein, the                term
“financial statements” shall include the notes and schedules
               thereto. Whenever the term “Borrower” is used in respect of a
               financial covenant or a related definition, it shall be understood to mean
               Borrower and its Subsidiaries on a consolidated basis unless the context
clearly                requires otherwise.  

    1.3.     Code.
Any terms used in this Agreement that are defined in                the Code shall be
construed and defined as set forth in the Code unless                otherwise defined
herein.  

    1.4.     Construction.
Unless the context of this Agreement or any                other Loan Document clearly
requires otherwise, references to the plural include                the singular,
references to the singular include the plural, the term                “including” is
not limiting, and the term “or” has, except                where otherwise
indicated, the inclusive meaning represented by the phrase                “and/or.” The
words “hereof,” “herein,”               “hereby,” “hereunder,” and
similar terms in this Agreement                or any other Loan Document refer to this
Agreement or such other Loan Document,                as the case may be, as a whole and
not to any particular provision of this                Agreement or such other Loan
Document, as the case may be. Section, subsection,                clause, schedule, and
exhibit references herein are to this Agreement unless                otherwise
specified. Any reference in this Agreement or in the other Loan                Documents
to any agreement, instrument, or document shall include all                alterations,
amendments, changes, extensions, modifications, renewals,                replacements,
substitutions, joinders, and supplements, thereto and thereof, as
               applicable (subject to any restrictions on such alterations, amendments,
               changes, extensions, modifications, renewals, replacements, substitutions,
               joinders, and supplements set forth herein). Any reference herein to any
Person                shall be construed to include such Person’s successors and
assigns. Any                requirement of a writing contained herein or in the other
Loan Documents shall                be satisfied by the transmission of a Record and any
Record transmitted shall                constitute a representation and warranty as to
the accuracy and completeness of                the information contained therein.  

-29- 

    1.5.     Schedules
and Exhibits. All of the schedules and exhibits                attached to
this Agreement shall be deemed incorporated herein by reference.  

	2.  	LOAN
AND TERMS OF PAYMENT.

    2.1.     Revolver
Advances.  

        (a)       
               Subject to the terms and conditions of this Agreement, and during the term
of                this Agreement, each Lender with a Revolver A Commitment agrees
(severally, not                jointly or jointly and severally) to make advances (“A
Advances”) to                Borrower in an amount at any one time outstanding not
to exceed such                Lender’s Pro Rata Share of an amount equal to the
lesser of:  

	 	        (i)    
               the Maximum Revolver A Amount less the Letter of Credit Usage or  

	 	        (ii)    
               the Borrowing Base, less the Letter of Credit Usage, less the
               aggregate amount of the Reserves. For purposes of this Agreement,
               “Borrowing Base,” as of any date of determination, shall mean
the                result of:  

                 (A) 
               the lesser of:  

	 	        (1)    
               85% of the Dollar amount of Eligible Accounts, less the amount, if any, of
the                Dilution Reserve, and  

	 	        (2)    
               a Dollar amount equal to Borrower’s Collections with respect to
Accounts                for the immediately preceding 60 day period, plus 

                 (B) 
               the lesser of (x) sixty-five percent (65%) of the Cranberry Concentrate
Value,                (y) $1,000,000, and (z) eighty percent (80%) of the net
recovery                liquidation value of Eligible Inventory consisting of such
cranberry concentrate plus 

                 (C) 
               sixty-five percent (65%) of the Toll Processing Concentrate Value, plus 

                 (D) 
               the lesser of (x) sixty-five percent (65%) of the cost of Eligible
               Inventory consisting of other finished goods and other raw materials and
               (y) eighty percent (80%) of the net recovery liquidation value of
Eligible                Inventory consisting of such other finished goods and other raw
materials as                determined by appraisers acceptable to Administrative Agent,
provided that raw                materials shall only be included if the Administrative
Agent has received on or                after the Closing Date an appraisal in form and
substance satisfactory to the                Administrative Agent of such raw materials
by an appraiser acceptable to the                Administrative Agent, less 

-30- 

                 (E) 
               the aggregate amount of the Reserves, if any, including those established
by                Administrative Agent under Section 2.1(c).  

Notwithstanding anything to the
contrary, A Advances will only be made if at the time of such A Advances no B Advances are
available to be made under paragraph (b) of this Section 2.1. 

        (b)       
               Subject to the terms and conditions of this Agreement, each Lender with a
               Revolver B Commitment agrees (severally, not jointly or jointly and
severally)                to make advances (“B Advances”) to Borrower in an
amount at any one                time outstanding not to exceed such Lender’s Pro
Rata Share of the Maximum                Revolver B Amount.  

        (c)       
               Anything to the contrary in this Section 2.1 notwithstanding, in
addition                to the Reserves, Administrative Agent shall have the right to
establish reserves                in such amounts, and with respect to such matters, as
Administrative Agent in                its Permitted Discretion shall deem necessary or
appropriate, against the                Borrowing Base, including reserves with respect
to (i) sums that Borrower is                required to pay (such as taxes, assessments,
insurance premiums, or, in the case                of leased assets, rents or other
amounts payable under such leases) and has                failed to pay under any Section
of this Agreement or any other Loan Document,                and (ii) amounts owing by
Borrower to any Person to the extent secured by a Lien                on, or trust over,
any of the Collateral (other than any Lien of Ocean Spray                described in
clause (n) of the definition of the term Permitted Liens or any                other
existing Permitted Lien set forth on Schedule P-1 which is
               specifically identified thereon as entitled to have priority over the
Collateral                Agent’s Liens), which Lien or trust, in the Permitted
Discretion of                Administrative Agent likely would have a priority superior
to the Collateral                Agent’s Liens (such as Liens or trusts in favor of
landlords, warehousemen,                carriers, mechanics, materialmen, laborers, or
suppliers, or Liens or trusts for                ad valorem, excise, sales, or other
taxes where given priority under applicable                law) in and to such item of
the Collateral. In addition to the foregoing,                Administrative Agent shall
have the right to have the Inventory reappraised by a                qualified appraisal
company selected by Administrative Agent from time to time                after the
Closing Date for the purpose of redetermining the Net Liquidation
               Percentage of the Eligible Inventory portion of the Collateral and, as a
result,                redetermining the Borrowing Base.  

        (d)       
               The Lenders with Revolver A Commitments shall have no obligation to make
               additional A Advances hereunder to the extent such additional A Advances
would                cause the Revolver A Usage to exceed the Maximum Revolver A Amount.
The Lenders                with Revolver B Commitments shall have no obligation to make
additional B                Advances hereunder to the extent such additional B Advances
would cause the                aggregate outstanding B Advances to exceed the Maximum
Revolver B Amount.  

        (e)       
               Amounts borrowed pursuant to this Section may be repaid and, subject to
the                terms and conditions of this Agreement, including the last sentence of
paragraph                (a) of this Section 2.1, reborrowed at any time during the term
of this                Agreement, provided that, except as otherwise provided in Section
2.4(d), all A                Advances must be repaid in full before any B Advances are
repaid.  

-31- 

    2.2.     Term
Loan. Subject to the terms and conditions of this
               Agreement, on the Closing Date each Lender with a Term Loan Commitment
agrees                (severally, not jointly or jointly and severally) to make a term
loan (the                “Term Loan”) to Borrower in an amount equal to
such                Lender’s Pro Rata Share of the Term Loan Amount. The Term Loan
shall be                repaid in an amount of (i) $2,000,000 on March 1, 2005, (ii)
$2,000,000 on June                1, 2005, and (iii) $1,000,000 on the first day of each
subsequent fiscal                quarter, commencing on September 1, 2005. The
outstanding unpaid principal                balance and all accrued and unpaid interest
under the Term Loan shall be due and                payable on the date of termination of
this Agreement, whether by its terms, by                prepayment, or by acceleration.
Optional prepayments of principal of the Term                Loan shall not be permitted
at any time that B Advances are outstanding. Any                optional prepayments
shall be apportioned (i) while no Event of Default has                occurred and is
continuing, to the remaining scheduled Term Loan payments in the                inverse
order of maturity and (ii) if a Default or Event of Default has occurred
               and is continuing, in accordance with Section 2.4(b). All amounts
outstanding                under the Term Loan shall constitute Obligations. Any
principal amount of the                Term Loan repaid may not be reborrowed.  

    2.3.     Borrowing
Procedures and Settlements.  

        (a)       
Procedure for Borrowing. Each Borrowing shall be made by an irrevocable
               written request by an Authorized Person delivered to Administrative Agent
(which                notice must be received by Administrative Agent no later than (i)
10:00 a.m.                (California time) on the Business Day prior to the date that is
the requested                Funding Date in the case of a request for an A Advance and
(ii) 10:00 a.m.                (California time) on 2 Business Days prior to the date
that is the requested                Funding Date in the case of a request for a B
Advance or the Term Loan                specifying the amount of such Borrowing and
whether such Borrowing is an A                Advance, B Advance or Term Loan, and the
requested Funding Date, which shall be                a Business Day; provided, however,
that in the case of a request                for a Swing Loan in an amount of $3,000,000,
or less, such notice will be timely                received if it is received by
Administrative Agent no later than 10:00 a.m.                (California time) on the
Business Day that is the requested Funding Date)                specifying (i) the amount
of such Borrowing, and (ii) the requested Funding                Date, which shall be a
Business Day. At Administrative Agent’s election, in                lieu of
delivering the above-described written request, any Authorized Person                may
give Administrative Agent telephonic notice of such request by the required
               time, with such telephonic notice to be confirmed in writing within 24
hours of                the giving of such notice.  

        (b)       
Administrative Agent’s Election. Promptly after receipt of a
               request for a Borrowing pursuant to Section 2.3(a), Administrative
Agent                shall elect, in its discretion, (i) to have the terms of Section
2.3(c)               apply to such requested Borrowing, or (ii) if the Borrowing is
for an Advance,                to request Swing Lender to make a Swing Loan pursuant to
the terms of Section                2.3(d) in the amount of the requested
Borrowing; provided, however, that if                Swing Lender declines in its sole
discretion to make a Swing Loan pursuant to Section 2.3(d), Administrative Agent
shall elect to have the terms of Section 2.3(c) apply to such requested Borrowing.  

-32- 

        (c)       
Making of Advances. 

	 	        (i)    
               In the event that Administrative Agent shall elect to have the terms of
this Section 2.3(c) apply to a requested Borrowing as described in Section
               2.3(b), then promptly after receipt of a request for a Borrowing
pursuant to Section 2.3(a), Administrative Agent shall notify, in the case of an A
               Advance, the Revolving A Lenders, not later than 1:00 p.m. (California
time) on                the Business Day immediately preceding the Funding Date
applicable thereto or,                in the case of a B Advance, the Revolving B
Lenders, two Business Days                immediately preceding the Funding Date
applicable thereto, by telecopy,                telephone, or other similar form of
transmission, of the requested Borrowing.                Each Lender shall make the
amount of such Lender’s Pro Rata Share of the                requested Borrowing
available to Administrative Agent in immediately available                funds, to
Administrative Agent’s Account, not later than 10:00 a.m.                (California
time) on the Funding Date applicable thereto. After Administrative                Agent’s
receipt of the proceeds of such Advances (or the Term Loan, as
               applicable), upon satisfaction of the applicable conditions precedent set
forth                in Section 3 hereof, Administrative Agent shall make the
proceeds thereof                available to Borrower on the applicable Funding Date by
transferring immediately                available funds equal to such proceeds received
by Administrative Agent to                Borrower’s Designated Account; provided,
however, that                subject to the provisions of Section 2.3(i),
Administrative Agent shall                not request any Lender to make, and no Lender
shall have the obligation to make,                any Advance (or its portion of the Term
Loan) if Administrative Agent shall have                actual knowledge or shall have
received written notice from the Collateral Agent                on the Business Day
prior to the proposed Advance that (1) one or more of the                applicable
conditions precedent set forth in Section 3 will not be                satisfied
on the requested Funding Date for the applicable Borrowing unless such
               condition has been waived, or (2) in the case of an A Advance, the
requested                Borrowing would exceed the Availability on such Funding Date.  

	 	        (ii)    
               Unless Administrative Agent receives notice from a Lender on or prior to
the                Closing Date or, with respect to any Borrowing after the Closing Date,
at least                one (1) Business Day prior to the date of such Borrowing, that
such Lender will                not make available as and when required hereunder to
Administrative Agent for                the account of Borrower the amount of that Lender’s
Pro Rata Share of the                Borrowing, Administrative Agent may assume that each
Lender has made or will                make such amount available to Administrative Agent
in immediately available                funds on the Funding Date and Administrative
Agent may (but shall not be so                required), in reliance upon such
assumption, make available to Borrower on such                date a corresponding
amount. If and to the extent any Lender shall not have made                its full
amount available to Administrative Agent in immediately available funds
               and Administrative Agent in such circumstances has made available to
Borrower                such amount, that Lender shall on the Business Day following such
Funding Date                make such amount available to Administrative Agent, together
with interest at                the Defaulting Lender Rate for each day during such
period. A notice submitted                by Administrative Agent to any Lender with
respect to amounts owing under this                subsection shall be conclusive, absent
manifest error. If such amount is so made                available, such payment to
Administrative Agent shall constitute such                Lender’s Advance on the
date of Borrowing for all purposes of this                Agreement. If such amount is
not made available to Administrative Agent on the                Business Day following
the Funding Date, Administrative Agent will notify                Borrower of such
failure to fund and, upon demand by Administrative Agent,                Borrower shall
pay such amount to Administrative Agent for Administrative                Agent’s
account, together with interest thereon for each day elapsed since                the
date of such Borrowing, at a rate per annum equal to the interest rate
               applicable at the time to the Advances composing such Borrowing. The
failure of                any Lender to make any Advance on any Funding Date shall not
relieve any other                Lender of any obligation hereunder to make an Advance on
such Funding Date, but                no Lender shall be responsible for the failure of
any other Lender to make the                Advance to be made by such other Lender on
any Funding Date.  

-34- 

	 	        (iii)       
               Administrative Agent shall not be obligated to transfer to a Defaulting
Lender                any payments made by Borrower to Administrative Agent for the
Defaulting                Lender’s benefit, and, in the absence of such transfer to
the Defaulting                Lender, Administrative Agent shall transfer any such
payments to each other                non-Defaulting Lender member of the Lender Group
ratably in accordance with                their Commitments (but only to the extent that
such Defaulting Lender’s                Advance was funded by the other members of
the Lender Group) or, if so directed                by Borrower and if no Default or
Event of Default had occurred and is continuing                (and to the extent such
Defaulting Lender’s Advance was not funded by the                Lender Group),
retain same to be re-advanced to Borrower as if such Defaulting                Lender had
made Advances to Borrower. Subject to the foregoing, Administrative                Agent
may hold and, in its Permitted Discretion, re-lend to Borrower for the
               account of such Defaulting Lender the amount of all such payments received
and                retained by it for the account of such Defaulting Lender. Solely for
the                purposes of voting or consenting to matters with respect to the Loan
Documents,                such Defaulting Lender shall be deemed not to be a “Lender” and
such                Lender’s Commitment shall be deemed to be zero. This Section
shall remain                effective with respect to such Lender until (x) the
Obligations under this                Agreement shall have been declared or shall have
become immediately due and                payable, (y) the non-Defaulting Lenders,
Agents, and Borrower shall have waived                such Defaulting Lender’s
default in writing, or (z) the Defaulting Lender                makes its Pro Rata Share
of the applicable Advance and pays to Administrative                Agent all amounts
owing by Defaulting Lender in respect thereof. The operation                of this
Section shall not be construed to increase or otherwise affect the
               Commitment of any Lender, to relieve or excuse the performance by such
               Defaulting Lender or any other Lender of its duties and obligations
hereunder,                or to relieve or excuse the performance by Borrower of its
duties and                obligations hereunder to Agents or to the Lenders other than
such Defaulting                Lender. Any such failure to fund by any Defaulting Lender
shall constitute a                material breach by such Defaulting Lender of this
Agreement and shall entitle                Borrower at its option, upon written notice to
Administrative Agent, to arrange                for a substitute Lender to assume the
Commitment of such Defaulting Lender, such                substitute Lender to be
acceptable to each Agent. In connection with the                arrangement of such a
substitute Lender, the Defaulting Lender shall have no                right to refuse to
be replaced hereunder, and agrees to execute and deliver a                completed form
of Assignment and Acceptance Agreement in favor of the substitute                Lender
(and agrees that it shall be deemed to have executed and delivered such
               document if it fails to do so) subject only to being repaid its share of
the                outstanding Obligations (including an assumption of its Pro Rata Share
of the                Risk Participation Liability) without any premium or penalty of any
kind                whatsoever; providedfurther, however, that any
such                assumption of the Commitment of such Defaulting Lender shall not be
deemed to                constitute a waiver of any of the Lender Groups’ or Borrower’s
rights                or remedies against any such Defaulting Lender arising out of or in
relation to                such failure to fund.  

-35- 

        (d)       
Making of Swing Loans.  

	 	        (i)    
               In the event Administrative Agent shall elect, with the consent of Swing
Lender,                as a Lender, to have the terms of this Section 2.3(d) apply
to a                requested Borrowing of as described in Section 2.3(b), Swing
Lender as a                Lender shall make such Advance in the amount of such Borrowing
(any such Advance                made solely by Swing Lender as a Lender pursuant to this
Section 2.3(d) being referred to as a “Swing Loan” and
such                Advances being referred to collectively as “Swing Loans”)
               available to Borrower on the Funding Date applicable thereto by
transferring                immediately available funds to Borrower’s Designated
Account. Each Swing                Loan is an Advance hereunder and shall be subject to
all the terms and                conditions applicable to other A Advances or B Advances,
as applicable, and all                payments on any Swing Loan shall be payable to
Swing Lender as a Lender solely                for its own account (and for the account
of the holder of any participation                interest with respect to such Swing
Loan). Subject to the provisions of Section 2.3(i), Administrative Agent shall not
request Swing Lender as a                Lender to make, and Swing Lender as a Lender
shall not make, any Swing Loan if                Administrative Agent has actual
knowledge or shall have received written notice                from the Collateral Agent
on the Business Day prior to the proposed Advance that                (i) one or more of
the applicable conditions precedent set forth in Section                3 will not
be satisfied on the requested Funding Date for the applicable                Borrowing
unless such condition has been waived, or (ii) in the case of an A                Advance
the requested Borrowing would exceed the Availability on such Funding
               Date. Swing Lender as a Lender shall not otherwise be required to
determine                whether the applicable conditions precedent set forth in Section
3 have                been satisfied on the Funding Date applicable thereto prior to
making, in its                sole discretion, any Swing Loan. Notwithstanding anything
to the contrary, Swing                Loans representing A Advances will only be made if
at the time of such Swing                Loans no B Advances are available to be made
under paragraph (b) of Section                2.1. Notwithstanding the foregoing,
without the consent of the                Administrative Agent, which consent may be
withheld by the Administrative Agent                in its sole discretion, no Swing
Loans shall be made under this Agreement.  

	 	        (ii)    
               The Swing Loans shall be secured by the Collateral Agent’s Liens,
shall                constitute Advances and Obligations hereunder, and shall bear
interest at the                rate applicable from time to time to other A Advances or B
Advances, as                applicable.  

        (e)       
Agent Advances. 

-35- 

	 	        (i)    
               Each Agent hereby is authorized by Borrower and the Lenders, from time to
time                in such Agent’s sole discretion, (1) after the occurrence and
during the                continuance of a Default or an Event of Default, or (2) at any
time that any of                the other applicable conditions precedent set forth in Section
3 have not                been satisfied, to make Advances to Borrower on behalf of
the Lenders that such                Agent, in its Permitted Discretion deems necessary
or desirable (A) to preserve                or protect the Collateral, or any portion
thereof, (B) to enhance the likelihood                of repayment of the Obligations, or
(C) to pay any other amount chargeable to                Borrower pursuant to the terms
of this Agreement, including Lender Group                Expenses and the costs, fees,
and expenses described in Section 10 (any                of the Advances described
in this Section 2.3(e) shall be referred to as                “Agent Advances”);
provided, that                notwithstanding anything to the contrary contained
in this Section                2.3(e), (x) the aggregate principal amount of Agent
Advances outstanding at                any one time, shall not exceed an amount equal to
$3,000,000 and (y) the                aggregate principal amount of Agent Advances made
pursuant to this Section                2.3(e) by Administrative Agent shall not
exceed at any time an amount equal                to the lesser of (AA) 10% of the
Borrowing Base then in effect and (BB)                $600,000. Each Agent Advance is an
Advance hereunder and shall be subject to all                the terms and conditions
applicable to other Advances, except that all payments                thereon shall be
payable to the applicable Agent solely for its own account (and                for the
account of the holder of any participation interest with respect to such
               Agent Advance).  

	 	        (ii)    
               The Agent Advances shall be repayable on demand and secured by the
Collateral                Agent’s Liens granted to Collateral Agent under the Loan
Documents, shall                constitute Advances (an A Advance in the case of an Agent
Advance made by the                Administrative Agent and a B Advance in the case of an
Agent Advance made by the                Collateral Agent) and Obligations hereunder, and
shall bear interest at the rate                applicable from time to time to Advances.  

        (f)       
Settlement. It is agreed that each Lender’s funded portion of the
               Advances is intended by the Lenders to equal, at all times, such Lender’s
               Pro Rata Share of the outstanding Advances. Such agreement
notwithstanding,                Agents, Swing Lender and the other Lenders agree (which
agreement shall not be                for the benefit of or enforceable by Borrower) that
in order to facilitate the                administration of this Agreement and the other
Loan Documents, settlement among                them as to the Advances and the Agent
Advances shall take place on a periodic                basis in accordance with the
following provisions:  

-36- 

	 	        (i)    
               Administrative Agent shall request settlement (“Settlement”)
               with the Lenders on a weekly basis, or on a more frequent basis if so
determined                by any Agent, (1) on behalf of Swing Lender, with respect to
each outstanding                Swing Loan, (2) for itself and the Collateral Agent, with
respect to each Agent                Advance, and (3) with respect to Collections
received, as to each by notifying                the Lenders by telecopy, telephone, or
other similar form of transmission, of                such requested Settlement, no later
than 2:00 p.m. (California time) on the                Business Day immediately prior to
the date of such requested Settlement (the                date of such requested
Settlement being the “Settlement Date”).                Such notice of a
Settlement Date shall include a summary statement of the amount                of
outstanding A Advances, B Advances, Swing Loans, and Agent Advances for the
               period since the prior Settlement Date. Subject to the terms and
conditions                contained herein (including Section 2.3(c)(iii)): (y) if
a Lender’s                balance of the A Advances, B Advances, Swing Loans, and
Agent Advances exceeds                such Lender’s Pro Rata Share of the A
Advances, B Advances, Swing Loans,                and Agent Advances as of a Settlement
Date, then Administrative Agent shall, by                no later than 12:00 p.m.
(California time) on the Settlement Date, transfer in                immediately
available funds to the account of such Lender as such Lender may
               designate, an amount such that each such Lender shall, upon receipt of
such                amount, have as of the Settlement Date, its Pro Rata Share of the A
Advances, B                Advances, Swing Loans, and Agent Advances, and (z) if a Lender’s
balance of                the A Advances, B Advances, Swing Loans, and Agent Advances is
less than such                Lender’s Pro Rata Share of the Advances, Swing Loans,
and Agent Advances as                of a Settlement Date, such Lender shall no later
than 12:00 p.m. (California                time) on the Settlement Date transfer in
immediately available funds to the                Administrative Agent’s Account, an
amount such that each such Lender shall,                upon transfer of such amount,
have as of the Settlement Date, its Pro Rata Share                of the A Advances, B
Advances, Swing Loans, and Agent Advances. Such amounts                made available to
Administrative Agent under clause (z) of the immediately                preceding
sentence shall be applied against the amounts of the applicable Swing                Loan
or Agent Advance and, together with the portion of such Swing Loan or Agent
               Advance representing Swing Lender’s Pro Rata Share thereof, shall
               constitute A Advances or B Advances, as applicable, of such Lenders. If
any such                amount is not made available to Administrative Agent by any
Lender on the                Settlement Date applicable thereto to the extent required by
the terms hereof,                Administrative Agent shall be entitled to recover for
its account such amount on                demand from such Lender together with interest
thereon at the Defaulting Lender                Rate.  

	 	        (ii)    
               In determining whether a Lender’s balance of the Advances, Swing
Loans, and                Agent Advances is less than, equal to, or greater than such
Lender’s Pro                Rata Share of the A Advances, B Advances, Swing Loans,
and Agent Advances as of                a Settlement Date, Administrative Agent shall, as
part of the relevant                Settlement, apply to such balance the portion of
payments actually received in                good funds by Administrative Agent with
respect to principal, interest, fees                payable by Borrower and allocable to
the Lenders hereunder, and proceeds of                Collateral. To the extent that a
net amount is owed to any such Lender after                such application, such net
amount shall be distributed by Administrative Agent                to that Lender as part
of such next Settlement.  

	 	        (iii)    
               Between Settlement Dates, Administrative Agent, to the extent no Agent
Advances                or Swing Loans are outstanding, may pay over to Swing Lender any
payments                received by Administrative Agent, that in accordance with the
terms of this                Agreement would be applied to the reduction of the Advances,
for application to                Swing Lender’s Pro Rata Share of the Advances. If,
as of any Settlement                Date, Collections received since the then immediately
preceding Settlement Date                have been applied to Swing Lender’s Pro
Rata Share of the Advances other                than to Swing Loans, as provided for in
the previous sentence, Swing Lender                shall pay to Administrative Agent for
the accounts of the Lenders, and                Administrative Agent shall pay to the
Lenders, to be applied to the outstanding                Advances of such Lenders, an
amount such that each Lender shall, upon receipt of                such amount, have, as
of such Settlement Date, its Pro Rata Share of the                Advances. During the
period between Settlement Dates, Swing Lender with respect                to Swing Loans,
any Agent with respect to Agent Advances, and each Lender                (subject to the
effect of letter agreements between any Agent and individual                Lenders) with
respect to the Advances other than Swing Loans and Agent Advances,                shall
be entitled to interest at the applicable rate or rates payable under this
               Agreement on the daily amount of funds employed by Swing Lender, Agents,
or the                Lenders, as applicable.  

-37- 

        (g)       
Notation. Administrative Agent shall record on its books the principal
               amount of the Advances owing to each Lender, including the Swing Loans
owing to                Swing Lender and Agent Advances owing to such Agent, and the
interests therein                of each Lender, from time to time. In addition, each
Lender is authorized, at                such Lender’s option, to note the date and
amount of each payment or                prepayment of principal of such Lender’s
Advances in its books and records,                including computer records, such books
and records constituting conclusive                evidence, absent manifest error, of
the accuracy of the information contained                therein.  

        (h)       
Lenders’ Failure to Perform. All Advances (other than Swing
               Loans and Agent Advances) shall be made by the Lenders contemporaneously
and in                accordance with their Pro Rata Shares. It is understood that (i) no
Lender shall                be responsible for any failure by any other Lender to perform
its obligation to                make any Advance (or other extension of credit)
hereunder, nor shall any                Commitment of any Lender be increased or
decreased as a result of any failure by                any other Lender to perform its
obligations hereunder, and (ii) no failure by                any Lender to perform its
obligations hereunder shall excuse any other Lender                from its obligations
hereunder.  

    2.4.     Payments.  

        (a)       
               Payments by Borrower.  

	 	        (i)    
               Except as otherwise expressly provided herein, all payments by Borrower
shall be                made to Administrative Agent’s Account for the account of
the Lender Group                and shall be made in immediately available funds, no
later than 11:00 a.m.                (California time) on the date specified herein. Any
payment received by                Administrative Agent later than 11:00 a.m. (California
time) shall be deemed to                have been received on the following Business Day
and any applicable interest or                fee shall continue to accrue until such
following Business Day.  

	 	        (ii)    
               Unless Administrative Agent receives notice from Borrower prior to the
date on                which any payment is due to the Lenders that Borrower will not
make such payment                in full as and when required, Administrative Agent may
assume that Borrower has                made (or will make) such payment in full to
Administrative Agent on such date in                immediately available funds and
Administrative Agent may (but shall not be so                required), in reliance upon
such assumption, distribute to each Lender on such                due date an amount
equal to the amount then due such Lender. If and to the                extent Borrower
does not make such payment in full to Administrative Agent on                the date
when due, each Lender severally shall repay to Administrative Agent on
               demand such amount distributed to such Lender, together with interest
thereon at                the Defaulting Lender Rate for each day from the date such
amount is distributed                to such Lender until the date repaid.  

        (b)       
Apportionment and Application of Payments. 

	 	        (i)    
               Except as otherwise provided with respect to Defaulting Lenders and except
as                otherwise provided in the Loan Documents (including letter agreements
between                any Agent and individual Lenders), aggregate principal and
interest payments                shall be apportioned ratably among the Lenders
(according to the unpaid                principal balance of the Obligations to which
such payments relate held by each                Lender) and payments of fees and
expenses (other than fees or expenses that are                for any Agent’s
separate account, after giving effect to any letter                agreements between any
Agent and individual Lenders) shall be apportioned                ratably among the
Lenders having a Pro Rata Share of the type of Commitment or                Obligation to
which a particular fee relates. All payments shall be remitted to
               Administrative Agent and all such payments (other than payments received
while                no Default or Event of Default has occurred and is continuing and
which relate                to the payment of principal or interest of specific
Obligations or which relate                to the payment of specific fees), and all
proceeds of Accounts or other                Collateral received by Administrative Agent,
shall be applied as follows:  

-38- 

	 	        (A) 
first, to pay any Lender Group Expenses then due to any Agent under the
               Loan Documents, until paid in full,  

	 	        (B) 
second, to pay any Lender Group Expenses then due to the Lenders under
               the Loan Documents, on a ratable basis, until paid in full,  

	 	        (C) 
third, to pay any fees then due to Agents (for their separate accounts,
               after giving effect to any letter agreements between any Agent and
individual                Lenders) under the Loan Documents, until paid in full,  

	 	        (D) 
fourth, to pay any fees then due to any or all of the Lenders (after
               giving effect to any letter agreements between any Agent and individual
Lenders)                under the Loan Documents, on a ratable basis, until paid in full,               provided that,
if an Event of Default has occurred and is continuing, the                priority of the
payment of any fee payable to any Lender in respect of its                Revolver B
Commitment or Term Loan shall, unless the Required Revolver A Lenders
               agree in their sole discretion to forgo deferring such payment, be
deferred to                item “fourteenth” below,  

	 	        (E) 
fifth, to pay interest due in respect of all Agent Advances, until paid
               in full,  

	 	        (F) 
sixth, ratably to pay interest due in respect of the A Advances (other
               than Agent Advances) and the Swing Loans, until paid in full,  

	 	        (G) 
seventh, so long as no Event of Default has occurred and is continuing
               or, if an Event of Default has occurred and is continuing and the Required
               Revolver A Lenders agree in their sole discretion, to pay interest due in
               respect of the B Advances and Term Loan, until paid in full (if an Event
of                Default has occurred and is continuing and the Required Revolver A
Lenders do                not agree to permit payment of interest on the Term Loan, the
priority of the                payment of interest on (i) the B Advances and Term Loan is
deferred to item                “fifteenth” below),  

	 	        (H) 
eighth, to pay the principal of all Agent Advances, until paid in full,  

-39- 

	 	        (I) 
ninth, so long as no Event of Default has occurred and is continuing or,
               if an Event of Default has occurred and is continuing and the Required
Revolver                A Lenders agree in their sole discretion, to pay all principal
amounts then due                and payable (other than as a result of an acceleration
thereof) with respect to                the Term Loan, until paid in full (if an Event of
Default has occurred and is                continuing, and the Required Revolver A
Lenders do not agree to permit payment                of principal amounts then due and
payable on the Term Loan the priority of the                payment of principal then due
and payable with respect to the Term Loan is                deferred to item “sixteenth” below),  

	 	        (J) 
tenth, to pay the principal of all Swing Loans, until paid in full,  

	 	        (K) 
eleventh, so long as no Event of Default has occurred and is continuing,
               to pay the principal of all A Advances, until paid in full,  

	 	        (L) 
twelfth, so long as no Event of Default has occurred and is continuing
               or, if an Event of Default has occurred and is continuing and the Required
               Revolver A Lenders agree in their sole discretion, to pay the principal of
all B                Advances, until paid in full (if an Event of Default has occurred
and is                continuing and the Required Revolver A Lenders do not agree to
permit payment of                principal on the B Advances, priority of the payment of
principal with respect                to the B Advances is deferred to item “sixteenth” below)  

	 	        (M) 
thirteenth, if an Event of Default has occurred and is continuing,
               ratably (i) to pay the principal of all A Advances, until paid in full,
(ii) to                Administrative Agent, to be held by Administrative Agent, for the
ratable                benefit of Issuing Lender and those Lenders having a Revolver A
Commitment, as                cash collateral in an amount up to 105% of the then extant
Letter of Credit                Usage until paid in full,  

	 	        (N) 
fourteenth, if an Event of Default has occurred and is continuing, to pay
               fees due in respect of the Revolver B Commitments and Term Loan, until
paid in                full,  

	 	        (O) 
fifteenth, if an Event of Default has occurred and is continuing, to pay
               interest due in respect of the B Advances and Term Loan, until paid in
full,  

	 	        (P) 
sixteenth, if an Event of Default has occurred and is continuing, to pay
               the outstanding principal balance of the B Advances and Term Loan, until
paid in                full,  

	 	        (Q) 
seventeenth, to pay any other Obligations until paid in full, and  

	 	        (R) 
eighteenth, to Borrower (to be wired to the Designated Account) or such
               other Person entitled thereto under applicable law.  

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	 	        (ii)    
               Administrative Agent promptly shall distribute to each Lender, pursuant to
the                applicable wire instructions received from each Lender in writing,
such funds as                it may be entitled to receive, subject to a Settlement delay
as provided in Section 2.3(e).  

	 	        (iii)    
               In each instance, so long as no Default or Event of Default has occurred
and is                continuing, Section 2.4(b) shall not be deemed to apply to
any payment by                Borrower specified by Borrower to be for the payment of
specific Obligations                then due and payable (or prepayable) under any
provision of this Agreement.  

	 	        (iv)    
               For purposes of Section 2.4(b) (i) (other than clause (Q)),
               “paid in full” means payment of all amounts owing under the Loan
               Documents according to the terms thereof, including loan fees, service
fees,                professional fees, interest (and specifically including interest
accrued after                the commencement of any Insolvency Proceeding), default
interest, interest on                interest, and expense reimbursements, except to the
extent that default or                overdue interest (but not any other interest) and
loan fees, each arising from                or related to a default, are disallowed in
any Insolvency Proceeding; provided, however, that for the purposes of clause
(Q),                “paid in full” means payment of all amounts owing under
the Loan                Documents according to the terms thereof, including loan fees,
service fees,                professional fees, interest (and specifically including
interest accrued after                the commencement of any Insolvency Proceeding),
default interest, interest on                interest, and expense reimbursements,
whether or not the same would be or is                allowed or disallowed in whole or
in part in any Insolvency Proceeding.  

	 	        (v)    
               In the event of a direct conflict between the priority provisions of this
Section 2.4 and other provisions contained in any other Loan Document, it
               is the intention of the parties hereto that such priority provisions in
such                documents shall be read together and construed, to the fullest extent
possible,                to be in concert with each other. In the event of any actual,
irreconcilable                conflict that cannot be resolved as aforesaid, the terms
and provisions of this Section 2.4 shall control and govern.  

        (c)       
Mandatory Prepayments. 

	 	        (i)    
               Within ten (10) days of delivery to Agents of the audited financial
statements                pursuant to Section 6.3(b), commencing with the delivery
to Agents of the                financial statements for the Fiscal Year ended August 31,
2005 or, if such                financial statements are not delivered to Agents on the
date such financial                statements are required to be delivered pursuant to Section
6.3(b), ten                (10) days after the date such statements are required to
be delivered to Agents                pursuant to Section 6.3(b), Borrower
shall prepay the outstanding                principal amount of the Term Loan in
accordance with Section 2.4(d) below                in an amount equal to 50% of
the Excess Cash Flow of Borrower and its                Subsidiaries for the Fiscal Year
covered by such financial statements.  

	 	        (ii)    
               Immediately upon any sale or other disposition by Borrower or any of its
               Subsidiaries of property or assets after the date hereof, including sales
or                dispositions pursuant to Ocean Spray Option Agreement (other than sales
or                dispositions described in clause (a), (b), (c) and (d) of the
definition of                the term “Permitted Disposition”), Borrowers shall
prepay, the                outstanding principal amount of the Advances and the Term Loan
and/or cash                collateralize the Letters of Credit in accordance with Section
2.4(d)               below in an amount equal to the difference between (A) 100% of
the Net Cash                Proceeds received by such Person in connection with such sale
or other                disposition and (B) the amount of any distribution made and
permitted to be made                pursuant to Section 7.11(ii) hereof. Nothing
contained in this subsection                (ii) shall permit Borrower or any of its
Subsidiaries to sell or otherwise                dispose of any property or assets other
than in accordance with Section                7.4.  

-41- 

	 	        (iii)    
               Upon the sale or issuance by Borrower or any of its Subsidiaries of any
shares                of its Stock (other than (A) the sale or issuance of shares of
capital Stock of                the Borrower to Sun Northland, LLC and (B) the issuance
of Stock to management                of the Borrower), Borrowers shall prepay, without
duplication, the outstanding                principal amount of the Advances and the Term
Loan and/or cash collateralize the                Letters of Credit in accordance with Section
2.4(d) below in an amount                equal to 100% of the Net Cash Proceeds of
such issuance of such Stock received                by such Person in connection
therewith. The provisions of this subsection (iii)                shall not be deemed to
be implied consent to any such issuance, incurrence or                sale otherwise
prohibited by the terms and conditions of this Agreement.  

	 	        (iv)    
               Upon the receipt by Borrower or any of its Subsidiaries of any
Extraordinary                Receipts, Borrowers shall prepay, without duplication, the
outstanding principal                amount of the Advances and the Term Loan and/or cash
collateralize the Letters                of Credit in accordance with Section 2.4(d) below
in an amount equal to                100% of such Extraordinary Receipts, net of any
reasonable expenses incurred in                collecting such Extraordinary Receipts.  

	 	        (v)    
               Upon the receipt by Borrower or any of its Subsidiaries of any payments
under                the Ocean Spray Escrow Agreement, Borrowers shall prepay, without
duplication,                the outstanding principal amount of the Advances and the Term
Loan and/or cash                collateralize the Letters of Credit in accordance with Section
2.4(d)               below in an amount equal to 100% of such amounts.  

	 	        (vi)    
               In the event that the aggregate amount of the cash and Permitted
Investments                (not including investments described in clauses (c), (d), (e)
or (f) of such                definition) of the Loan Parties and their Subsidiaries
exceeds at any time                $500,000, the Borrower shall prepay, without,
duplication the outstanding                principal amount of the Advances in accordance
with Section 2.4(d) below in an amount equal to such excess.  

        (d)       
Application of Mandatory Prepayments. Each prepayment pursuant to
               subsections (c)(i), (ii), (iii), (iv), (v) and (vi) above shall in
the                absence of a continuing Event of Default be applied as follows:  

	 	        (i)    
               if the proceeds are from any event set forth in Section 2.4(c)(i),
such                proceeds shall be applied to the outstanding principal amount of the
Term Loan                until paid in full to be applied to the scheduled payments
thereof in the                inverse order of maturity;  

-42- 

	 	        (ii)    
               subject to clause (iv) below, if the proceeds are from any sale or other
               disposition of any Accounts or Inventory or any insurance policy or
condemnation                award with respect to Accounts or Inventory, such proceeds
shall be applied                first, to the outstanding principal amount of the A
Advances, until paid in                full, second, to cash collateralize the Letters of
Credit in an amount equal to                105% of the then extant Letter of Credit
Usage, third, to the outstanding                principal amount of the B Advances until
paid in full, fourth, after giving                effect to any application permitted
under Section 6.7 and clause (X) below, to                the outstanding principal
amount of the Term Loan until paid in full, provided                that, in the case of
the payments to the Term Loan, such payments shall be                applied to the
scheduled payments thereof in the inverse order of maturity;  

	 	        (iii)    
               subject to clause (iv) below, if the proceeds (other than proceeds subject
to a                perfected Permitted Lien in favor of Equitable, which first shall be
applied in                accordance with the Equitable Intercreditor Agreement, or Wood
County Bank, in                either case, limited to the amount of proceeds that are
required to be paid by                Borrower to Equitable or Wood County Bank,
respectively, or the amount required                to be invested and invested) are from
(A) the sale or other disposition of                any other assets or any
insurance policy or condemnation award of Borrower or                any of their
Subsidiaries, not described in clause (ii) above or (B) any event                set
forth in Section 2.4(c)(iii) or (c)(iv), such proceeds shall be
               applied, first, to the outstanding principal amount of the B Advances, and
               simultaneously with any such prepayment, the Revolver B Commitment shall
be                reduced on a dollar for dollar basis, second, to the outstanding
principal                amount of the Term Loan until paid in full, in the case of
payments to the Term                Loan, such payments to be applied to the scheduled
payments thereof in the                inverse order of maturity, third, to the
outstanding principal amount of the A                Advances, until paid in full, and
fourth, to cash collateralize the Letters of                Credit in an amount equal to
105% of the then extant Letter of Credit Usage,                until paid in full;  

	 	        (iv)    
               if the proceeds are from a sale or other disposition of all or
substantially all                of the assets or Stock of any Person or any insurance
policy, which sale or                other disposition or proceeds of insurance includes
both (A) Accounts and                Inventory, and (B) other assets, except as otherwise
provided in Section                6.7 and clause (X) below, such proceeds shall
be applied first, to the                outstanding principal amount of the A Advances in
an amount equal to the                Revolver A Usage supported by such Accounts and
Inventory determined using the                advance rate under the Borrowing Base
against such Accounts and Inventory                (determined at the time of such sale
or other disposition or event resulting in                such insurance proceeds),
second, to the outstanding principal amount of the B                Advances, and
simultaneously with any such prepayment, the Revolver B Commitment                shall
be reduced on a dollar for dollar basis, third, to the outstanding
               principal amount of the Term Loan until paid in full, in the case of
payments to                the Term Loan, such payments to be applied to the scheduled
payments thereof in                the inverse order of maturity, fourth to the
outstanding principal amount of the                A Advances, until paid in full, and
fifth, to cash collateralize the Letters of                Credit in an amount equal to
105% of the then extant Letter of Credit Usage,                until paid in full;  

-43- 

	 	        (v)    
               if the proceeds are from any event set forth in Section 2.4(c)(v),
such                proceeds shall be applied, first, to the outstanding principal amount
of the A                Advances, until paid in full, second, to the outstanding
principal amount of the                B Advances until paid in full, and third, to
outstanding principal amount of the                Term Loan until paid in full, provided
that, in the case of the payments to the                Term Loan, such payments shall be
applied to the scheduled payments thereof in                the inverse order of
maturity; and  

	 	        (vi)    
               if the proceeds are from any event set forth in Section 2.4(c)(vi),
such                proceeds shall be applied, first, to the outstanding principal amount
of the A                Advances, until paid in full, and second, to the outstanding
principal amount of                the B Advances until paid in full.  

        Notwithstanding
anything to the contrary contained herein: 

        (X)                 in
connection with the receipt of Extraordinary Receipts from insurance or
          condemnation proceeds (other than proceeds subject to a perfected Permitted
Lien           in favor of Equitable, which first shall be applied in accordance with the
          Equitable Intercreditor Agreement, or Wood County Bank, in either case, limited
          to the amount of proceeds that are required to be paid by Borrower to Equitable
          or Wood County Bank, respectively or the amount required to be invested and
          invested), up to $500,000 in the aggregate in any fiscal year of the
          Extraordinary Receipts from such insurance or condemnation proceeds, received
by           Borrower or its Subsidiaries in connection therewith shall not be required
to be           applied to the prepayment of the Advances and the Term Loan on such date
to the           extent such proceeds are used to replace, repair or restore fixed assets
used in           Borrower’s or any of its Subsidiary’s business, provided that
          (A) no Default or Event of Default has occurred and is continuing on the date
          such Person receives such proceeds of Extraordinary Receipts or the date such
          proceeds are to be released to Borrower or its Subsidiaries pursuant to this
          paragraph, (B) Borrower delivers a certificate to Agents within 30 days
          after the date of such loss, destruction or taking stating that such proceeds
          shall be used to replace, repair or restore any such properties or assets to be
          used in the Borrower’s or such Subsidiary’s business within a period
          specified in such certificate not to exceed 180 days after the receipt of such
          proceeds (which certificate shall set forth estimates of the proceeds to be so
          expended), and (C) such proceeds are deposited in an account subject to
the           sole dominion and control of the Collateral Agent and released by the
Collateral           Agent upon the written request of the Borrower to be used in
accordance with the           terms of this paragraph. If all or any portion of such
proceeds not so applied           to the prepayment of the Advances and the Term Loan is
not used or contracted to           be used in accordance with the preceding sentence
within the period specified in           the relevant certificate furnished pursuant
hereto, such remaining portion shall           be applied to the Advances and the Term
Loan pursuant to the applicable           subsection of Section 2.4(d) above on the last
day of such specified period.  

        (Y)                 upon
the occurrence and during the continuance of an Event of Default, each
          prepayment pursuant to Section 2.4(c) shall be applied in accordance
with Section 2.4(b).  

    2.5.     Overadvances.
If, at any time or for any reason, the amount           of Obligations owed by Borrower
to the Lender Group pursuant to Sections 2.1           and 2.12 is greater than
either the Dollar or percentage limitations set           forth in Sections 2.1 or 2.12,
(an “Overadvance”), Borrower           immediately shall pay to Administrative
Agent, in cash, the amount of such           excess, which amount shall be used by
Administrative Agent to reduce the           Obligations in accordance with the
priorities set forth in Section           2.4(b). In addition, Borrower hereby
promises to pay the Obligations           (including principal, interest, fees, costs,
and expenses) in Dollars in full to           the Lender Group as and when due and
payable under the terms of this Agreement           and the other Loan Documents.  

-44- 

    2.6.     Interest
Rates and Letter of Credit Fee: Rates, Payments, and           Calculations.  

        (a)       Interest
Rates. Except as provided in clause (c) below, (i) all           Obligations (except
for undrawn Letters of Credit, the outstanding principal           amount of the B
Advances, and the outstanding principal amount of the Term Loan           and all
obligations with respect thereof) that have been charged to the Loan           Account
pursuant to the terms hereof shall bear interest on the Daily Balance           thereof
at a per annum rate equal to the Base Rate plus the Base Rate Margin and           (ii)
the outstanding principal amount of the B Advances and Term Loan, and all
          Obligations with respect thereof, shall bear interest on the amount thereof
          outstanding from time to time at a per annum rate equal to (x) if the
          relevant principal amount or Obligation is a portion of the B Advances or Term
          Loan that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate
plus           the LIBOR Rate Term Loan Margin, and (y) if the relevant principal amount
or           Obligation is a portion of the B Advances or Term Loan that is a Base Rate
Loan,           at a per annum rate equal to the Base Rate plus 4.25%.  

        The
foregoing notwithstanding, at no time shall any portion of the non-contingent Obligations
bear interest on the Daily Balance thereof at a per annum rate less than 7%. To the extent
that interest accrued hereunder at the rate set forth herein would be less than the
foregoing minimum daily rate, the interest rate chargeable hereunder for such day
automatically shall be deemed increased to the minimum rate. 

        (b)       
Letter of Credit Fee. Borrower shall pay Administrative Agent (for the
               ratable benefit of the Lenders with a Revolver A Commitment, subject to
any                letter agreement between Administrative Agent and individual Lenders),
a Letter                of Credit fee (in addition to the charges, commissions, fees, and
costs set                forth in Section 2.12(e)) which shall accrue at a rate
equal to 2.5% per                annum times the Daily Balance of the undrawn amount of
all outstanding Letters                of Credit.  

        (c)       
Default Rate. Upon the occurrence and during the continuation of an Event
               of Default (and at the election of any Agent or the Required Lenders),  

	 	        (i)    
               all Obligations (except for undrawn Letters of Credit ) whether or not
charged                to the Loan Account pursuant to the terms hereof shall bear
interest on the                Daily Balance thereof at a per annum rate equal to two (2)
percentage points                above the per annum rate otherwise applicable hereunder,
and  

	 	        (ii)    
               the Letter of Credit fee provided for above shall be increased to two (2)
               percentage points above the per annum rate otherwise applicable hereunder.  

-45- 

        (d)       
Payment. Interest, Letter of Credit fees, and all other fees payable
               hereunder shall be due and payable, in arrears, on the first day of each
month                at any time that Obligations or Commitments are outstanding, except
as otherwise                provided for LIBOR Rate Loans in Section 2.16(a). Borrower
hereby authorizes                Administrative Agent, from time to time without prior
notice to Borrower, to                charge such interest and fees, all Lender Group
Expenses (as and when incurred),                the charges, commissions, fees, and costs
provided for in Section 2.12(e)               (as and when accrued or incurred),
the fees and costs provided for in Section                2.11 (as and when
accrued or incurred), and all other payments as and when                due and payable
under any Loan Document (including the installments due and                payable with
respect to the Term Loan) to Borrower’s Loan Account, which                amounts
thereafter constitute Advances (B Advances and if no B Advances are
               available under this Agreement, A Advances) hereunder and shall accrue
interest                at the rate then applicable to the appropriate Advances
hereunder, provided                that, (i) so long as (A) no Event of Default has
occurred and is continuing or                would result therefrom and (B) no proceeding
shall have been instituted against                any Loan Party seeking to adjudicate it
a bankrupt or insolvent, or seeking                dissolution, liquidation, winding up,
reorganization, arrangement, adjustment,                protection, relief of debtors, or
seeking the entry of an order for relief or                the appointment of a receiver,
trustee, custodian or other similar official for                any such Person or for
any substantial part of its property (including, without                limitation, the
entry of an order for relief against any such Person or the                appointment of
a receiver, trustee, custodian or other similar official for it                or for any
substantial part of its property) and (ii) to the extent that such                charge
does not exceed the then current Availability, the Administrative Agent
               shall from time to time upon the request of the Collateral Agent, charge
the                Loan Account of the Borrowers with any amount due and payable under
any Loan                Document; and provided, that if, at the time that any amounts due
in respect of                interest on the Term Loan are charged to the Loan Account,
an Event of Default                or Overadvance exists or would result from such charge
to the Loan Account, such                amounts shall not constitute Advances but
instead shall continue to remain                outstanding as amounts due in respect of
the B Advances or Term Loan and such                amounts shall be compounded and added
to the outstanding principal balance of                the B Advances or Term Loan, as
applicable; and provided that the failure to                make any such payment and the
compounding of such interest shall nonetheless                constitute an Event of
Default under Section 8.1.Any interest not                paid when due
shall be compounded by being charged to Borrower’s Loan                Account and
shall thereafter constitute Advances (B Advances and if no B                Advances are
available under this Agreement, A Advances) hereunder and shall                accrue
interest at the rate then applicable to the appropriate Advances;
               provided, that if, at the time that any amounts due in respect of interest
on                the B Advances or Term Loan, as applicable, are charged to the Loan
Account an                Event of Default or Overadvance exists or would result from
such charge to the                Loan Account, such amounts shall not constitute A
Advances but instead shall                continue to remain outstanding as amounts due
in respect of the B Advances or                Term Loan, as applicable, and such amounts
shall be compounded and added to the                outstanding principal balance of the
B Advances or Term Loan, as applicable,;                and provided that the failure to
make any such payment and the compounding of                such interest shall
nonetheless constitute an Event of Default under Section                8.1.  

        (e)       
Computation. All interest and fees chargeable under the Loan Documents
               shall be computed on the basis of a 360 day year for the actual number of
days                elapsed. In the event the Base Rate is changed from time to time
hereafter, the                rates of interest hereunder based upon the Base Rate
automatically and                immediately shall be increased or decreased by an amount
equal to such change in                the Base Rate.  

        (f)       
Intent to Limit Charges to Maximum Lawful Rate. In no event shall the
               interest rate or rates payable under this Agreement, plus any other
amounts paid                in connection herewith, exceed the highest rate permissible
under any law that a                court of competent jurisdiction shall, in a final
determination, deem                applicable. Borrower and the Lender Group, in
executing and delivering this                Agreement, intend legally to agree upon the
rate or rates of interest and manner                of payment stated within it; provided,
however, that, anything                contained herein to the contrary
notwithstanding, if said rate or rates of                interest or manner of payment
exceeds the maximum allowable under applicable                law, then, ipso facto,
as of the date of this Agreement, Borrower is and                shall be liable only for
the payment of such maximum as allowed by law, and                payment received from
Borrower in excess of such legal maximum, whenever                received, shall be
applied to reduce the principal balance of the Obligations to                the extent
of such excess.  

-46- 

    2.7.     Cash
Management.  

        (a)       
               Borrower shall (i) establish and maintain cash management services of a
type and                on terms satisfactory to each Agent at one or more of the banks
set forth on Schedule 2.7(a) (each, a “Cash Management Bank”),
and                shall request in writing and otherwise take such reasonable steps to
ensure that                all of its Account Debtors forward payment of the amounts owed
by them directly                to such Cash Management Bank, and (ii) deposit or cause
to be deposited                promptly, and in any event no later than the first
Business Day after the date                of receipt thereof, all Collections (including
those sent directly by Account                Debtors to a Cash Management Bank) into a
bank account in Administrative                Agent’s name (a “Cash
Management Account”) at one of the                Cash Management Banks.  

        (b)       
               Each Cash Management Bank shall establish and maintain Cash Management
               Agreements with respect to the Cash Management Accounts with
Administrative                Agent and Borrower, in form and substance acceptable to
each Agent. Each such                Cash Management Agreement shall provide, among other
things, that (i) all items                of payment deposited in such Cash Management
Account and proceeds thereof are                held by such Cash Management Bank as
agent or bailee-in-possession for                Collateral Agent, (ii) the Cash
Management Bank has no rights of setoff or                recoupment or any other claim
against the applicable Cash Management Account                other than for payment of
its service fees and other charges directly related to                the administration
of such Cash Management Account and for returned checks or                other items of
payment, and (iii) it immediately will forward by daily sweep all                amounts
in the applicable Cash Management Account to the Administrative                Agent’s
Account.  

        (c)       
               So long as no Default or Event of Default has occurred and is continuing,
               Borrower may amend Schedule 2.7(a) to add or replace a Cash
Management                Bank or Cash Management Account; provided, however,
that (i) such                prospective Cash Management Bank shall be satisfactory to
each Agent and                Administrative Agent shall have consented in writing in
advance to the opening                of such Cash Management Account with the
prospective Cash Management Bank, and                (ii) prior to the time of the
opening of such Cash Management Account, Borrower                and such prospective
Cash Management Bank shall have executed and delivered to                Agents a Cash
Management Agreement. Borrower shall close any of its Cash                Management
Accounts (and establish replacement cash management accounts in                accordance
with the foregoing sentence) promptly and in any event within 30 days                of
notice from any Agent that the creditworthiness of any Cash Management Bank
               is no longer acceptable in such Agent’s reasonable judgment, or as
promptly                as practicable and in any event within 60 days of notice from
Lender Group that                the operating performance, funds transfer, or
availability procedures or                performance of the Cash Management Bank with
respect to Cash Management Accounts                or such Agent’s liability under
any Cash Management Agreement with such                Cash Management Bank is no longer
acceptable in such Agent’s reasonable                judgment.  

-47- 

        (d)       
               The Cash Management Accounts shall be cash collateral accounts, with all
cash,                checks and similar items of payment in such accounts securing
payment of the                Obligations, and in which Borrower is hereby deemed to have
granted a Lien to                Collateral Agent.  

    2.8.     Crediting
Payments; Float Charge. The receipt of any                payment item by
Administrative Agent (whether from transfers to Administrative                Agent by
the Cash Management Banks pursuant to the Cash Management Agreements or
               otherwise) shall not be considered a payment on account unless such
payment item                is a wire transfer of immediately available federal funds
made to the                Administrative Agent’s Account or unless and until such
payment item is                honored when presented for payment. Should any payment
item not be honored when                presented for payment, then Borrower shall be
deemed not to have made such                payment and interest shall be calculated
accordingly. Anything to the contrary                contained herein notwithstanding,
any payment item shall be deemed received by                Administrative Agent only if
it is received into the Administrative Agent’s                Account on a Business
Day on or before 11:00 a.m. (California time). If any                payment item is
received into the Administrative Agent’s Account on a                non-Business
Day or after 11:00 a.m. (California time) on a Business Day, it                shall be
deemed to have been received by Administrative Agent as of the opening                of
business on the immediately following Business Day. From and after the
               Closing Date, Administrative Agent shall be entitled to charge Borrower
for one                (1) Business Day of ‘clearance’ or ‘float’ at
the rate                applicable to Advances under Section 2.6 on all
Collections that are                received by Borrower (regardless of whether forwarded
by the Cash Management                Banks to Administrative Agent). This
across-the-board one (1) Business Day                clearance or float charge on all
Collections is acknowledged by the parties to                constitute an integral
aspect of the pricing of the financing of Borrower and                shall apply
irrespective of whether or not there are any outstanding monetary
               Obligations; the effect of such clearance or float charge being the
equivalent                of charging one (1) Business Day of interest on such
Collections. The parties                acknowledge and agree that the economic benefit
of the foregoing provisions of                this Section 2.8 shall be for the
exclusive benefit of Administrative                Agent.  

    2.9.     Designated
Account. Agents and the Lenders are authorized                to make the
Advances and the Term Loan, and Issuing Lender is authorized to                issue the
Letters of Credit, under this Agreement based upon telephonic or other
               instructions received from anyone purporting to be an Authorized Person,
or                without instructions if pursuant to Section 2.6(d). Borrower
agrees to                establish and maintain the Designated Account with the
Designated Account Bank                for the purpose of receiving the proceeds of the
Advances requested by Borrower                and made by Administrative Agent or the
Lenders hereunder. Unless otherwise                agreed by Agents and Borrower, any
Advance, Agent Advance, or Swing Loan                requested by Borrower and made by
Agents or the Lenders hereunder shall be made                to the Designated Account.  

    2.10.     Maintenance
of Loan Account; Statements of Obligations.                Administrative
Agent shall maintain an account on its books in the name of                Borrower (the
“Loan Account”) on which Borrower will be charged                with
the Term Loan, all Advances (including Agent Advances and Swing Loans) made
               by any Agent, Swing Lender, or the Lenders to Borrower or for Borrower’s
               account, the Letters of Credit issued by Issuing Lender for Borrower’s
               account, and with all other payment Obligations hereunder or under the
other                Loan Documents, including, accrued interest, fees and expenses, and
Lender Group                Expenses. In accordance with Section 2.8, the Loan
Account will be                credited with all payments received by Administrative
Agent from Borrower or for                Borrower’s account, including all amounts
received in the Administrative                Agent’s Account from any Cash
Management Bank. Administrative Agent shall                render statements regarding
the Loan Account to Borrower, including principal,                interest, fees, and
including an itemization of all charges and expenses                constituting Lender
Group Expenses owing, and such statements shall be                conclusively presumed
to be correct and accurate and constitute an account                stated between
Borrower and the Lender Group unless, within 30 days after                receipt thereof
by Borrower, Borrower shall deliver to Administrative Agent                written
objection thereto describing the error or errors contained in any such
               statements.  

-48- 

    2.11.     Fees.
Borrower shall pay to Agents the following fees and                charges, which fees
and charges shall be non-refundable when paid (irrespective                of whether
this Agreement is terminated thereafter) and shall be apportioned                among
the Lenders in accordance with the terms of letter agreements between
               Agents and individual Lenders:  

        (a)       
Unused Line Fee. On the first day of each month during the term of this
               Agreement, Borrower shall pay to the Administrative Agent:  

	 	        (i)    
               an unused line fee in an amount equal to .50% per annum times the result
of (a)                the Maximum A Revolver Amount, less (b) the sum of (x) the average
Daily Balance                of A Advances that were outstanding during the immediately
preceding month, plus                (y) the average Daily Balance of the Letter of
Credit Usage during the                immediately preceding month, and  

	 	        (ii)    
               an unused line fee in an amount equal to .50% per annum times the result
of (a)                the Maximum B Revolver Amount, less (b) the sum of the average
Daily Balance of                B Advances that were outstanding during the immediately
preceding month,  

        (b)       
Servicing Fee. On the first day of each month during the term of this
               Agreement, Borrower shall pay to the Administrative Agent a servicing fee
               (the “Servicing Fee”) in an amount equal to $2,000,  

        (c)       
Closing Fee. On or prior to the Closing Date, Borrower shall pay to the
               Administrative Agent (to be distributed subject to the effect of a letter
               agreement between Administrative Agent and Collateral Agent) a
non-refundable                closing fee (the “Closing Fee”) equal
to $230,000, which                shall be deemed fully earned when paid, and  

        (d)       
Audit, Appraisal, and Valuation Charges. For the separate account of the
               applicable Agent, audit, appraisal, and valuation fees and charges as
follows                (i) a fee of $850 per day, per auditor, plus out-of-pocket
expenses for each                financial audit of Borrower performed by personnel
employed by any Agent, (ii) a                fee of $1,500 per day per appraiser, plus
out-of-pocket expenses, for each                appraisal of the Collateral performed by
personnel employed by any Agent, and                (iii) the actual charges paid or
incurred by any Agent if it elects to employ                the services of one or more
third Persons to perform financial audits of                Borrower, to appraise the
Collateral, or any portion thereof, or to assess                Borrower’s business
valuation. If no Event of Default shall have occurred                and be continuing,
then the Borrower shall only be required to pay for (x) three                (3) visits
described in this Section 2.11(d),and (y) two (2) desk-top
               appraisals, per fiscal year.  

-49- 

    2.12.     Letters
of Credit.  

        (a)       
               Subject to the terms and conditions of this Agreement, the Issuing Lender
agrees                to issue letters of credit for the account of Borrower (each, an
               “L/C”) or to purchase participations or execute
indemnities or                reimbursement obligations (each such undertaking, an “L/C
               Undertaking”) with respect to letters of credit issued by an
Underlying                Issuer (as of the Closing Date, the prospective Underlying
Issuer is to be Wells                Fargo) for the account of Borrower. To request the
issuance of an L/C or an L/C                Undertaking (or the amendment, renewal, or
extension of an outstanding L/C or                L/C Undertaking), Borrower shall hand
deliver or telecopy (or transmit by                electronic communication, if
arrangements for doing so have been approved by the                Issuing Lender) to the
Issuing Lender and Administrative Agent (reasonably in                advance of the
requested date of issuance, amendment, renewal, or extension) a                notice
requesting the issuance of an L/C or L/C Undertaking, or identifying the
               L/C or L/C Undertaking to be amended, renewed, or extended, the date of
               issuance, amendment, renewal, or extension, the date on which such L/C or
L/C                Undertaking is to expire, the amount of such L/C or L/C Undertaking,
the name                and address of the beneficiary thereof (or the beneficiary of the
Underlying                Letter of Credit, as applicable), and such other information as
shall be                necessary to prepare, amend, renew, or extend such L/C or L/C
Undertaking. If                requested by the Issuing Lender, Borrower also shall be an
applicant under the                application with respect to any Underlying Letter of
Credit that is to be the                subject of an L/C Undertaking. The Issuing Lender
shall have no obligation to                issue a Letter of Credit if any of the
following would result after giving                effect to the requested Letter of
Credit:  

	 	        (i)    
               the Adjusted Letter of Credit Usage would exceed the Borrowing Base less
the                amount of outstanding A Advances,  

	 	        (ii)    
               the Letter of Credit Usage would exceed $1,000,000, or  

	 	        (iii)    
               the Letter of Credit Usage would exceed the Maximum A Revolver Amount less
the                then extant amount of outstanding A Advances.  

        Borrower
and the Lender Group acknowledge and agree that certain Underlying Letters of Credit may
be issued to support letters of credit that already are outstanding as of the Closing
Date. Each Letter of Credit (and corresponding Underlying Letter of Credit) shall have an
expiry date no later than 30 days prior to the Maturity Date and all such Letters of
Credit (and corresponding Underlying Letter of Credit) shall be in form and substance
acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including
the requirement that the amounts payable thereunder must be payable in Dollars. If Issuing
Lender is obligated to advance funds under a Letter of Credit, Borrower immediately shall
reimburse such L/C Disbursement to Issuing Lender by paying to Administrative Agent an
amount equal to such L/C Disbursement not later than 11:00 a.m., California time, on the
date that such L/C Disbursement is made, if Borrower shall have received written or
telephonic notice of such L/C Disbursement prior to 10:00 a.m., California time, on such
date, or, if such notice has not been received by Borrower prior to such time on such
date, then not later than 11:00 a.m., California time, on the Business Day that Borrower
receives such notice, if such notice is received prior to 10:00 a.m., California time, on
the date of receipt, and, in the absence of such reimbursement, the L/C Disbursement
immediately and automatically shall be deemed to be an A Advance hereunder and,
thereafter, shall bear interest at the rate then applicable to A Advances under Section
2.6. To the extent an L/C Disbursement is deemed to be an A Advance hereunder,
Borrower’s obligation to reimburse such L/C Disbursement shall be discharged and
replaced by the resulting A Advance. Promptly following receipt by Administrative Agent of
any payment from Borrower pursuant to this paragraph, Administrative Agent shall
distribute such payment to the Issuing Lender or, to the extent that Lenders have made
payments pursuant to Section 2.12(c) to reimburse the Issuing Lender, then to such
Lenders and the Issuing Lender as their interest may appear. 

-50- 

        (b)       
               Promptly following receipt of a notice of L/C Disbursement pursuant to Section
2.12(a), each Lender with a Revolver A Commitment agrees to fund                its
Pro Rata Share of any A Advance deemed made pursuant to the foregoing
               subsection on the same terms and conditions as if Borrower had requested
such A                Advance and Administrative Agent shall promptly pay to Issuing
Lender the                amounts so received by it from the Lenders. By the issuance of
a Letter of                Credit (or an amendment to a Letter of Credit increasing the
amount thereof) and                without any further action on the part of the Issuing
Lender or the Lenders with                Revolver A Commitment, the Issuing Lender shall
be deemed to have granted to                each Lender with a Revolver A Commitment, and
each Lender with a Revolver A                Commitment shall be deemed to have
purchased, a participation in each Letter of                Credit, in an amount equal to
its Pro Rata Share of the Risk Participation                Liability of such Letter of
Credit, and each such Lender agrees to pay to                Administrative Agent, for
the account of the Issuing Lender, such Lender’s                Pro Rata Share of
any payments made by the Issuing Lender under such Letter of                Credit. In
consideration and in furtherance of the foregoing, each Lender with a
               Revolver A Commitment hereby absolutely and unconditionally agrees to pay
to                Administrative Agent, for the account of the Issuing Lender, such Lender’s
               Pro Rata Share of each L/C Disbursement made by the Issuing Lender and not
               reimbursed by Borrower on the date due as provided in clause (a) of this
               Section, or of any reimbursement payment required to be refunded to
Borrower for                any reason. Each Lender with a Revolver A Commitment
acknowledges and agrees                that its obligation to deliver to Administrative
Agent, for the account of the                Issuing Lender, an amount equal to its
respective Pro Rata Share pursuant to                this Section 2.12(b) shall be
absolute and unconditional and such                remittance shall be made
notwithstanding the occurrence or continuation of an                Event of Default or
Default or the failure to satisfy any condition set forth in Section 3 hereof. If
any such Lender fails to make available to                Administrative Agent the amount
of such Lender’s Pro Rata Share of any                payments made by the Issuing
Lender in respect of such Letter of Credit as                provided in this Section,
Administrative Agent (for the account of the Issuing                Lender) shall be
entitled to recover such amount on demand from such Lender                together with
interest thereon at the Defaulting Lender Rate until paid in full.  

        (c)       
               Borrower hereby agrees to indemnify, save, defend, and hold the Lender
Group                harmless from any loss, cost, expense, or liability, and reasonable
attorneys                fees incurred by the Lender Group arising out of or in
connection with any                Letter of Credit; provided, however,
that Borrower shall not be                obligated hereunder to indemnify for any loss,
cost, expense, or liability that                is caused by the gross negligence or
willful misconduct of the Issuing Lender or                any other member of the Lender
Group. Borrower agrees to be bound by the                Underlying Issuer’s
regulations and interpretations of any Underlying                Letter of Credit or by
Issuing Lender’s interpretations of any L/C issued                by Issuing Lender
to or for Borrower’s account, even though this                interpretation may be
different from Borrower’s own, and Borrower                understands and agrees
that the Lender Group shall not be liable for any error,                negligence, or
mistake, whether of omission or commission, in following                Borrower’s
instructions or those contained in the Letter of Credit or any
               modifications, amendments, or supplements thereto. Borrower understands
that the                L/C Undertakings may require Issuing Lender to indemnify the
Underlying Issuer                for certain costs or liabilities arising out of claims
by Borrower against such                Underlying Issuer. Borrower hereby agrees to
indemnify, save, defend, and hold                the Lender Group harmless with respect
to any loss, cost, expense (including                reasonable attorneys fees), or
liability incurred by the Lender Group under any                L/C Undertaking as a
result of the Lender Group’s indemnification of any                Underlying
Issuer; provided, however, that Borrower shall not be obligated                hereunder
to indemnify for any loss, cost, expense, or liability that is caused                by
the gross negligence or willful misconduct of the Issuing Lender or any other
               member of the Lender Group.  

-51- 

        (d)       
               Borrower hereby authorizes and directs any Underlying Issuer to deliver to
the                Issuing Lender all instruments, documents, and other writings and
property                received by such Underlying Issuer pursuant to such Underlying
Letter of Credit                and to accept and rely upon the Issuing Lender’s
instructions with respect                to all matters arising in connection with such
Underlying Letter of Credit and                the related application.  

        (e)       
               Any and all charges, commissions, fees, and costs incurred by the Issuing
Lender                relating to Underlying Letters of Credit shall be Lender Group
Expenses for                purposes of this Agreement and immediately shall be
reimbursable by Borrower to                Administrative Agent for the account of the
Issuing Lender; it being                acknowledged and agreed by Borrower that, as of
the Closing Date, the issuance                charge imposed by the prospective
Underlying Issuer is .825% per annum times the                face amount of each
Underlying Letter of Credit, that such issuance charge may                be changed from
time to time, and that the Underlying Issuer also imposes a                schedule of
charges for amendments, extensions, drawings, and renewals.  

        (f)       
               If by reason of (i) any change in any applicable law, treaty, rule, or
               regulation or any change in the interpretation or application thereof by
any                Governmental Authority, or (ii) compliance by the Underlying Issuer or
the                Lender Group with any direction, request, or requirement (irrespective
of                whether having the force of law) of any Governmental Authority or
monetary                authority including, Regulation D of the Federal Reserve Board as
from time to                time in effect (and any successor thereto):  

	 	        (i)    
               any reserve, deposit, or similar requirement is or shall be imposed or
modified                in respect of any Letter of Credit issued hereunder, or  

	 	        (ii)    
               there shall be imposed on the Underlying Issuer or the Lender Group any
other                condition regarding any Underlying Letter of Credit or any Letter of
Credit                issued pursuant hereto,  

and the result of the foregoing is to
increase, directly or indirectly, the cost to the Lender Group of issuing, making,
guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in
respect thereof by the Lender Group, then, and in any such case, Administrative Agent may,
at any time within a reasonable period after the additional cost is incurred or the amount
received is reduced, notify Borrower, and Borrower shall pay on demand such amounts as
Administrative Agent may specify to be necessary to compensate the Lender Group for such
additional cost or reduced receipt, together with interest on such amount from the date of
such demand until payment in full thereof at the rate then applicable to A Advances
hereunder. The determination by Administrative Agent of any amount due pursuant to this
Section, as set forth in a certificate setting forth the calculation thereof in reasonable
detail, shall, in the absence of manifest or demonstrable error, be final and conclusive
and binding on all of the parties hereto. 

-52- 

    2.13.     Capital
Requirements. If, after the date hereof, any Lender
               determines that (1) the adoption of or change in any law, rule, regulation
or                guideline regarding capital requirements for banks or bank holding
companies, or                any change in the interpretation or application thereof by
any Governmental                Authority charged with the administration thereof, or (2)
compliance by such                Lender or its parent bank holding company with any
guideline, request, or                directive of any such entity regarding capital
adequacy (whether or not having                the force of law), will have the effect of
reducing the return on such                Lender’s or such holding company’s
capital as a consequence of such                Lender’s Commitments hereunder to a
level below that which such Lender or                such holding company could have
achieved but for such adoption, change, or                compliance (taking into
consideration such Lender’s or such holding                company’s then
existing policies with respect to capital adequacy and                assuming the full
utilization of such entity’s capital) by any amount                deemed by such
Lender to be material, then such Lender may notify Borrower and                Agents
thereof. Following receipt of such notice, Borrower agrees to pay such
               Lender on demand the amount of such reduction of return of capital as and
when                such reduction is determined, payable within 90 days after
presentation by such                Lender of a statement in the amount and setting forth
in reasonable detail such                Lender’s calculation thereof and the
assumptions upon which such                calculation was based (which statement shall
be deemed true and correct absent                manifest error). In determining such
amount, such Lender may use any reasonable                averaging and attribution
methods.  

    2.14.     Registered
Notes. Borrower agrees to record each Term Loan                on the
Register referred to in Section 14.1(g). Each B Advance and Term
               Loan recorded on the Register (the “Registered Loan”) may
not                be evidenced by promissory notes other than Registered Notes (as
defined below).                Upon the registration of each B Advance and Term Loan,
Borrower agrees, at the                request of any Lender, to execute and deliver to
such Lender a promissory note,                in conformity with the terms of this
Agreement, in registered form to evidence                such Registered Loan, in form
and substance reasonably satisfactory to such                Lender, and registered as
provided in Section 14.1(g) (a “Registered Note”), payable to the
order of such Lender and                otherwise duly completed. Once recorded on the
Register, each B Advance and Term                Loan may not be removed from the
Register so long as it or they remain                outstanding, and a Registered Note
may not be exchanged for a promissory note                that is not a Registered Note.  

-53- 

    2.15.     Securitization.
The Borrower and Guarantors hereby                acknowledge that the Lenders and their
Affiliates may sell or securitize the                Term Loan or the Advances (a “Securitization”)
through the                pledge of the Term Loan or the Advances as collateral security
for loans to the                Lenders or their Affiliates or through the sale of the
Term Loan or the Advances                or the issuance of direct or indirect interests
in the Term Loan or the                Advances, which loans to the Lenders or their
Affiliates or direct or indirect                interests will be rated by Moody’s,
Standard & Poor’s or one or                more other rating agencies (the “Rating
Agencies”). The                Borrower and Guarantors shall cooperate with the
Lenders and their Affiliates to                effect the Securitization including,
without limitation, by (a) amending                this Agreement and the other Loan
Documents, and executing such additional                documents, as reasonably
requested by the Lenders in connection with the                Securitization, providedthat (i) any
such amendment or                additional documentation does not impose material
additional costs on the                Borrower and Guarantors and (ii) any such
amendment or additional                documentation does not materially adversely affect
the rights, or materially                increase the obligations, of the Borrower and
Guarantors under the Loan                Documents or change or affect in a manner
adverse to the Borrower and Guarantors                the financial terms of the Term
Loan or the Advances, (b) providing such                information as may be
reasonably requested by the Lenders in connection with the                rating of the
Term Loan, the Advances or the Securitization, and                (c) providing in
connection with any rating of the Term Loan or the                Advances a certificate
(i) agreeing to indemnify the Lenders and their                Affiliates, any of
the Rating Agencies, or any party providing credit support or                otherwise
participating in the Securitization (collectively, the                “Securitization
Parties”) for any losses, claims, damages or                liabilities (the “Liabilities”)
to which the Lenders,                their Affiliates or such Securitization Parties may
become subject insofar as                the Liabilities arise out of or are based upon
any untrue statement or alleged                untrue statement of any material fact
contained in any Loan Document or in any                writing delivered by or on behalf
of any Borrower and Guarantors to the Lenders                in connection with any Loan
Document or arise out of or are based upon the                omission or alleged
omission to state therein a material fact required to be                stated therein,
or necessary in order to make the statements therein, in light                of the
circumstances under which they were made, not misleading, and such
               indemnity shall survive any transfer by the Lenders or their successors or
               assigns of the Term Loan or the Advances and (ii) agreeing to
reimburse the                Lenders and their Affiliates for any legal or other expenses
reasonably incurred                by such Persons in connection with defending the
Liabilities.  

    2.16.     LIBOR
Rate.  

        (a)       
Interest and Interest Payment Dates. In lieu of having interest
               charged at the rate based upon the Base Rate, Borrower shall have the
option                (the “LIBOR Option”) to have interest on all or a
portion of                the B Advances and the Term Loan be charged at a rate of
interest based upon the                LIBOR Rate. Interest on LIBOR Rate Loans shall be
payable on the earliest of (i)                the last day of the Interest Period
applicable thereto, (ii) the occurrence of                an Event of Default in
consequence of which the Required Lenders or Collateral                Agent on behalf
thereof elect to accelerate the maturity of all or any portion                of the
Obligations, or (iii) termination of this Agreement pursuant to the terms
               hereof. On the last day of each applicable Interest Period, unless
Borrower                properly has exercised the LIBOR Option with respect thereto, the
interest rate                applicable to such LIBOR Rate Loan automatically shall
convert to the rate of                interest then applicable to the Base Rate used in
Section 2.6(a)(ii)(y).                At the election of the Collateral Agent,
that may be made at any time that an                Event of Default has occurred and is
continuing, Borrower no longer shall have                the option to request that B
Advances or the Term Loan bear interest at a rate                based upon the LIBOR
Rate.  

-54- 

        (b)       
LIBOR Election.  

	 	        (i)    
               Borrower may, at any time and from time to time, so long as no Event of
Default                has occurred and is continuing, elect to exercise the LIBOR Option
by notifying                each Agent prior to 11:00 a.m. (California time) at least 3
Business Days prior                to the commencement of the proposed Interest Period
(the “LIBOR                Deadline”). Notice of Borrower’s
election of the LIBOR Option for                a permitted portion of the B Advances or
the Term Loan and an Interest Period                pursuant to this Section shall be
made by delivery to each Agent of a LIBOR                Notice received by each Agent
before the LIBOR Deadline, or by telephonic notice                received by each Agent
before the LIBOR Deadline (to be confirmed by delivery to                each Agent of a
LIBOR Notice received by each Agent prior to 5:00 p.m.                (California
time) on the same day). Immediately upon its receipt of each such                LIBOR
Notice, Administrative Agent shall provide a copy thereof to each of the
               Lenders having a Revolver B Commitment or a Term Loan Commitment.  

	 	        (ii)    
               Each LIBOR Notice shall be irrevocable and binding on Borrower. In
connection                with each LIBOR Rate Loan, Borrower shall indemnify, defend,
and hold Agents and                the Lenders harmless against any loss, cost, or
expense incurred by Agents or                any Lender as a result of (a) the payment of
any principal of any LIBOR Rate                Loan other than on the last day of an
Interest Period applicable thereto                (including as a result of an Event of
Default), (b) the conversion of any LIBOR                Rate Loan other than on the last
day of the Interest Period applicable thereto,                or (c) the failure to
borrow, convert, continue or prepay any LIBOR Rate Loan on                the date
specified in any LIBOR Notice delivered pursuant hereto (such losses,
               costs, and expenses, collectively, “Funding Losses”).
Funding                Losses shall, with respect to any Agent or any Lender, be deemed
to equal the                amount determined by such Agent or such Lender to be the
excess, if any, of (i)                the amount of interest that would have accrued on
the principal amount of such                LIBOR Rate Loan had such event not occurred,
at the LIBOR Rate that would have                been applicable thereto, for the period
from the date of such event to the last                day of the then current Interest
Period therefor (or, in the case of a failure                to borrow, convert, or
continue, for the period that would have been the                Interest Period
therefor), minus (ii) the amount of interest that would                accrue on
such principal amount for such period at the interest rate which such
               Agent or such Lender would be offered were it to be offered, at the
commencement                of such period, Dollar deposits of a comparable amount and
period in the London                interbank market. A certificate of such Agent or a
Lender delivered to Borrower                setting forth any amount or amounts that such
Agent or such Lender is entitled                to receive pursuant to this Section
2.16 shall be conclusive                absent manifest error.  

	 	        (iii)    
               Borrower shall have not more than six (6) LIBOR Rate Loans in effect at
any                given time. Borrower only may exercise the LIBOR Option for LIBOR Rate
Loans of                at least $500,000 and integral multiples of $250,000 in excess
thereof.  

        (c)       
Prepayments. Borrower may prepay LIBOR Rate Loans at any time; provided,
however, that in the event that LIBOR Rate Loans are                prepaid on any
date that is not the last day of the Interest Period applicable                thereto,
including as a result of any automatic prepayment through the required
               application by Administrative Agent of proceeds of Borrower’s and its
               Subsidiaries’ Collections in accordance with Section 2.4(b) or
for                any other reason, including early termination of the term of this
Agreement or                acceleration of all or any portion of the Obligations
pursuant to the terms                hereof, Borrower shall indemnify, defend, and hold
each Agent and the Lenders                and their Participants harmless against any and
all Funding Losses in accordance                with clause (b)(ii) above.  

-55- 

        (d)       
Special Provisions Applicable to LIBOR Rate.  

	 	        (i)    
               The LIBOR Rate may be adjusted by Administrative Agent with respect to any
               Lender on a prospective basis to take into account any additional or
increased                costs to such Lender of maintaining or obtaining any eurodollar
deposits or                increased costs due to changes in applicable law occurring
subsequent to the                commencement of the then applicable Interest Period,
including changes in tax                laws (except changes of general applicability in
corporate income tax laws) and                changes in the reserve requirements imposed
by the Board of Governors of the                Federal Reserve System (or any
successor), excluding the Reserve Percentage,                which additional or
increased costs would increase the cost of funding loans                bearing interest
at the LIBOR Rate. In any such event, the affected Lender shall                give
Borrower and Administrative Agent notice of such a determination and
               adjustment and Administrative Agent promptly shall transmit the notice to
each                other Lender and, upon its receipt of the notice from the affected
Lender,                Borrower may, by notice to such affected Lender (y) require such
Lender to                furnish to Borrower a statement setting forth the basis for
adjusting such LIBOR                Rate and the method for determining the amount of
such adjustment, or (z) repay                the LIBOR Rate Loans with respect to which
such adjustment is made (together                with any amounts due under clause
(b)(ii) above).  

	 	        (ii)    
               In the event that any change in market conditions or any law, regulation,
               treaty, or directive, or any change therein or in the interpretation of
               application thereof, shall at any time after the date hereof, in the
reasonable                opinion of any Lender, make it unlawful or impractical for such
Lender to fund                or maintain LIBOR Advances or to continue such funding or
maintaining, or to                determine or charge interest rates at the LIBOR Rate,
such Lender shall give                notice of such changed circumstances to Agents and
Borrower and Agents promptly                shall transmit the notice to each other
Lender, (y) in the case of any LIBOR                Rate Loans of such Lender that are
outstanding, the date specified in such                Lender’s notice shall be
deemed to be the last day of the Interest Period                of such LIBOR Rate Loans,
and interest upon the LIBOR Rate Loans of such Lender                thereafter shall
accrue interest at the rate then applicable to the Base Rate                used in Section
2.6(a)(ii)(y), and (z) Borrower shall not be entitled to                elect the
LIBOR Option until such Lender determines that it would no longer be
               unlawful or impractical to do so.  

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        (e)       
No Requirement of Matched Funding. Anything to the contrary
               contained herein notwithstanding, neither Agents, nor any Lender, nor any
of                their Participants, is required actually to acquire eurodollar deposits
to fund                or otherwise match fund any Obligation as to which interest
accrues at the LIBOR                Rate. The provisions of this Section shall apply as
if each Lender or its                Participants had match funded any Obligation as to
which interest is accruing at                the LIBOR Rate by acquiring eurodollar
deposits for each Interest Period in the                amount of the LIBOR Rate Loan.  

	3.  	CONDITIONS;
TERM OF AGREEMENT.

    3.1.     Conditions
Precedent to the Initial Extension of Credit.                The
obligation of the Lender Group (or any member thereof) to make the initial
               Advances (or otherwise to extend any credit provided for hereunder), is
subject                to the fulfillment, to the satisfaction of each Agent, of each of
the conditions                precedent set forth below:  

        (a)       
               the Closing Date shall occur on or before November 16, 2004;  

        (b)       
               Collateral Agent shall have received all financing statements required by
each                Agent, duly authorized by Borrower and the Guarantors and evidence
acceptable to                the Collateral Agent of such filing;  

        (c)       
               Agents shall have received each of the following documents, in form and
               substance satisfactory to each Agent, duly executed, and each such
document                shall be in full force and effect:  

	 	        (i)    
               the Disbursement Letter;  

	 	        (ii)    
               the Officers’ Certificate;  

	 	        (iii)    
               the Subsidiary Documents; and  

	 	        (iv)    
               a consent from Equitable approving the Special Dividend.  

        (d)       
               Agents shall have received a certificate from the Secretary of Borrower
               attesting to the resolutions of Borrower’s Board of Directors
authorizing                its execution, delivery, and performance of this Agreement and
the other Loan                Documents to which Borrower is a party and authorizing
specific officers of                Borrower to execute the same;  

        (e)       
               Agents shall have received copies of Borrower’s Governing Documents,
as                amended, modified, or supplemented to the Closing Date, certified by
the                Secretary of Borrower;  

        (f)       
               Agents shall have received a certificate of status with respect to
Borrower,                dated within 10 days of the Closing Date, such certificate to be
issued by the                appropriate officer of the jurisdiction of organization of
Borrower, which                certificate shall indicate that Borrower is in good
standing in such                jurisdiction;  

        (g)       
               Agents shall have received certificates of status with respect to
Borrower, each                dated within 30 days of the Closing Date, such certificates
to be issued by the                appropriate officer of the jurisdictions (other than
the jurisdiction of                organization of Borrower) in which its failure to be
duly qualified or licensed                would constitute a Material Adverse Change,
which certificates shall indicate                that Borrower is in good standing in
such jurisdictions;  

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        (h)       
               Agents shall have received a certificate from the Secretary of Guarantor
               attesting to the resolutions of Guarantor’s Board of Directors
authorizing                its execution, delivery, and performance of the Loan Documents
to which                Guarantor is a party and authorizing specific officers of
Guarantor to execute                the same;  

        (i)       
               Agents shall have received copies of Guarantor’s Governing Documents,
as                amended, modified, or supplemented to the Closing Date, certified by
the                Secretary of Guarantor;  

        (j)       
               Agents shall have received a certificate of status with respect to
Guarantor,                dated within 10 days of the Closing Date, such certificate to
be issued by the                appropriate officer of the jurisdiction of organization
of Guarantor, which                certificate shall indicate that Guarantor is in good
standing in such                jurisdiction;  

        (k)       
               Agents shall have received certificates of status with respect to
Guarantor,                each dated within 30 days of the Closing Date, such
certificates to be issued by                the appropriate officer of the jurisdictions
(other than the jurisdiction of                organization of Guarantor) in which its
failure to be duly qualified or licensed                would constitute a Material
Adverse Change, which certificates shall indicate                that Guarantor is in
good standing in such jurisdictions;  

        (l)       
               Collateral Agent shall have received, with respect to all Real Property
owned by                the Borrower or any of its Subsidiaries and identified on Schedule
R-1,                (i) Mortgages with respect to each parcel composing such Real
Property and (ii)                a legal opinion from counsel, in form and substance
satisfactory to Collateral                Agent, with respect to such Mortgages.  

        (m)       
               Agents shall have received from Borrower copies of the Ocean Spray
Documents;  

        (n)       
               No Default or Event of Default exists as of the Closing Date;  

        (o)       
               Agents shall have received a certificate of insurance, together with the
               endorsements thereto, as are required by Section 6.7, the form and
               substance of which shall be satisfactory to each Agent;  

        (p)       
               Agents shall have received satisfactory evidence (including a certificate
of the                chief financial officer or treasurer of Borrower) that, except as
listed on                Schedule 3.1(p), all tax returns required to be filed by
Borrower have been                timely filed and all taxes upon Borrower or its
properties, assets, income, and                franchises (including Real Property taxes
and payroll taxes) have been paid                prior to delinquency, except such taxes
that are the subject of a Permitted                Protest;  

        (q)       
               Borrower shall have the Required Availability after giving effect to the
initial                extensions of credit hereunder and there shall be no outstanding A
Advances;  

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        (r)       
               Agents shall have completed their business, legal, and collateral due
diligence,                including (i) a collateral audit and review of Borrower’s
books and records                and verification of Borrower’s representations and
warranties to the Lender                Group, the results of which shall be satisfactory
to each Agent, and (ii) an                inspection of each of the locations where
Inventory is located, the results of                which shall be satisfactory to each
Agent;  

        (s)       
               Agents shall have received Borrower’s Closing Date Business Plan
together                with a certificate of the chief executive officer of Borrower
stating that the                Closing Date Business Plan has been prepared on a
reasonable basis and in good                faith and is based on assumptions believed by
Borrower to be reasonable at the                time made and from the best information
then available to Borrower;  

        (t)       
               Borrower shall pay all Lender Group Expenses incurred in connection with
the                transactions evidenced by this Agreement;  

        (u)       
Borrower shall have received all licenses, approvals or evidence of other
               actions required by any Governmental Authority in connection with the
execution                and delivery by Borrower of this Agreement or any other Loan
Document or with                the consummation of the transactions contemplated hereby
and thereby;  

        (v)       
               Agents shall have received opinions of legal counsel to Borrower and
Guarantors                in form and substance satisfactory to Agents;  

        (w)       
               proceeds of the Term Loan and the B Advances made on the Closing Date
shall be                deposited in a blocked account, which shall be under the dominion
and control of                the Collateral Agent and subject to a control agreement
satisfactory to the                Collateral Agent; and  

        (x)       
               all other documents and legal matters in connection with the transactions
               contemplated by this Agreement shall have been delivered, executed, or
recorded                and shall be in form and substance satisfactory to each Agent.  

    3.2.     Conditions
Subsequent to the Initial Extension of Credit.                The
obligation of the Lender (or any member thereof) to continue to make
               Advances (or otherwise extent credit hereunder) is subject to the
fulfillment,                on or before the date applicable thereto, of each of the
conditions subsequent                set forth below (the failure by the Borrower to so
perform or cause to be                performed constituting an Event of Default):  

        (a)       
               Prior to April 22, 2005, with respect to all Real Property owned by the
Borrower                or any of its Subsidiaries on such date and identified on Schedule
R-1,                deliver to Collateral Agent mortgagee title insurance policies
(or marked                commitments to issue the same) for such Real Property issued by
a title                insurance company satisfactory to Collateral Agent in amounts
satisfactory to                Collateral Agent assuring Collateral Agent that the
Mortgages on such Real                Property are valid and enforceable first priority
mortgage Liens on such Real                Property free and clear of all Liens except
Permitted Liens, and the mortgage                policies otherwise shall be in form and
substance satisfactory to Collateral                Agent.  

        (b)       
               (i) On any date following April 22, 2005, if requested by the Collateral
Agent,                Borrower shall deliver to the Collateral Agent originals of the
certificates of                title or ownership for all Motor Vehicles owned by it that
(x) are licensed or                registered for on-road use, or (y) have a value, as
reasonably determined by                Borrower, in excess of $10,000, with the
Collateral Agent listed as lienholder,                for the benefit of the Collateral
Agent on behalf of the Lenders; provided that the Collateral Agent shall not be
required to be listed as                the lienholder if a Motor Vehicle is subject to a
Permitted Lien.  

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	 	        (ii)              On
and after the date of any request by the Collateral Agent under subparagraph
          (i) of this paragraph (b), Borrower hereby appoints the Collateral Agent as its
          attorney-in-fact, effective the date hereof and terminating upon the
termination           of this Agreement, for the purpose of (A) executing on behalf of
Borrower title           or ownership applications for filing with appropriate state
agencies to enable           Motor Vehicles now owned or hereafter acquired by Borrower
to be retitled and           the Collateral Agent listed as lienholder thereof, (B)
filing such applications           with such state agencies, and (C) executing such other
documents and instruments           on behalf of, and taking such other action in the
name of, Borrower as the           Collateral Agent may deem necessary or advisable to
accomplish the purposes           hereof (including, without limitation, for the purpose
of creating in favor of           the Collateral Agent a perfected Lien on the Motor
Vehicles and exercising the           rights and remedies of the Collateral Agent
hereunder). This appointment as           attorney-in-fact is coupled with an interest
and is irrevocable until the           termination of all Commitments and the payment in
full of all of the Obligations           other than contingent Obligations.  

	 	        (iii)              Any
certificates of title or ownership delivered pursuant to the terms hereof           shall
be accompanied by odometer statements for each Motor Vehicle covered           thereby.  

    3.3.     Conditions
Precedent to all Extensions of Credit. The           obligation of the
Lender Group (or any member thereof) to make all Advances (or           to extend any
other credit hereunder) shall be subject to the following           conditions precedent:  

        (a)                 the
representations and warranties contained in this Agreement and the other           Loan
Documents shall be true and correct in all material respects on and as of           the
date of such extension of credit, as though made on and as of such date           (except
to the extent that such representations and warranties relate solely to           an
earlier date),  

        (b)                 no
Default or Event of Default shall have occurred and be continuing on the date
          of such extension of credit, nor shall either result from the making thereof,  

        (c)                 no
injunction, writ, restraining order, or other order of any nature           prohibiting,
directly or indirectly, the extending of such credit shall have           been issued and
remain in force by any Governmental Authority against Borrower,           Agents, any
Lender, or any of their Affiliates.  

        (d)                 no
Material Adverse Change shall have occurred, except as set forth on Schedule
          3.3(d) as in effect on the Closing Date.  

    3.4.     Term.
This Agreement shall become effective upon the           execution and delivery hereof by
Borrower, Agents, and the Lenders and shall           continue in full force and effect
for a term ending on November 5, 2007 (the           “Maturity Date”).
The foregoing notwithstanding, the Lender           Group, upon the election of the
Required Lenders, shall have the right to           terminate its obligations under this
Agreement immediately and without notice           upon the occurrence and during the
continuation of an Event of Default.  

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    3.5.     Effect
of Termination. On the date of termination of this           Agreement,
all Obligations (including contingent reimbursement obligations of           Borrower
with respect to outstanding Letters of Credit) immediately shall become           due and
payable without notice or demand. No termination of this Agreement,           however,
shall relieve or discharge Borrower of its duties, Obligations, or           covenants
hereunder and the Collateral Agent’s Liens in the Collateral           shall remain
in effect until all Obligations have been fully and finally           discharged and the
Lender Group’s obligations to provide additional credit           hereunder have
been terminated. When this Agreement has been terminated and all           of the
Obligations have been fully and finally discharged and the Lender           Group’s
obligations to provide additional credit under the Loan Documents           have been
terminated irrevocably, Collateral Agent will, at Borrower’s sole           expense,
execute and deliver any UCC termination statements, lien releases,           mortgage
releases, re-assignments of trademarks, discharges of security           interests, and
other similar discharge or release documents (and, if applicable,           in recordable
form) as are reasonably necessary to release, as of record, the           Collateral Agent’s
Liens and all notices of security interests and liens           previously filed by
Collateral Agent with respect to the Obligations.  

    3.6.     Early
Termination by Borrower. Borrower has the option, at           any time
upon 20 days prior written notice to each Agent, to terminate this           Agreement by
paying to Administrative Agent, for the benefit of the Lender           Group, in cash,
the Obligations (including either (i) providing cash collateral           to be held by
Administrative Agent for the benefit of those Lenders with a           Revolver A
Commitment in an amount equal to 105% of the then extant Letter of           Credit
Usage, or (ii) causing the original Letters of Credit to be returned to           the
Issuing Lender), in full. If Borrower has sent a notice of termination           pursuant
to the provisions of this Section, then the Commitments shall terminate           and
Borrower shall be obligated to repay the Obligations (including either (i)
          providing cash collateral to be held by Administrative Agent for the benefit of
          those Lenders with a Revolver A Commitment in an amount equal to 105% of the
          then extant Letter of Credit Usage, or (ii) causing the original Letters of
          Credit to be returned to the Issuing Lender), in full.  

	4. 	CREATION
OF SECURITY INTEREST.

    4.1.     Grant
of Security Interest. Borrower hereby grants to           Collateral
Agent, for the benefit of the Lender Group, a continuing security           interest in
all of its right, title, and interest in all currently existing and           hereafter
acquired or arising Borrower Collateral in order to secure prompt           repayment of
any and all of the Obligations in accordance with the terms and           conditions of
the Loan Documents and in order to secure prompt performance by           Borrower of
each of its covenants and duties under the Loan Documents. The           Collateral Agent’s
Liens in and to the Borrower Collateral shall attach to           all Borrower Collateral
without further act on the part of Collateral Agent or           Borrower. Anything
contained in this Agreement or any other Loan Document to the           contrary
notwithstanding, except for Permitted Dispositions, Borrower has no           authority,
express or implied, to dispose of any item or portion of the Borrower
          Collateral.  

    4.2.     Negotiable
Collateral. In the event that any Borrower           Collateral, including
proceeds, is evidenced by or consists of Negotiable           Collateral, and if and to
the extent that perfection or priority of Collateral           Agent’s security
interest is dependent on or enhanced by possession,           Borrower, immediately upon
the request of Collateral Agent, shall endorse and           deliver physical possession
of such Negotiable Collateral to Collateral Agent.  

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    4.3.     Collection
of Accounts, General Intangibles, and Negotiable           Collateral. At
any time after the occurrence and during the           continuation of an Event of
Default, Collateral Agent or Collateral Agent’s           designee may (a) notify
Account Debtors of Borrower that the Accounts, chattel           paper, or General
Intangibles have been assigned to Collateral Agent or that           Collateral Agent has
a security interest therein, or (b) collect the Accounts,           chattel paper, or
General Intangibles directly and charge the collection costs           and expenses to
the Loan Account. Borrower agrees that it will hold in trust for           the Lender
Group, as the Lender Group’s trustee, any Collections on account           of
Borrower Collateral that it receives and immediately will deliver said
          Collections to Collateral Agent or a Cash Management Bank in their original
form           as received by Borrower.  

    4.4.     Delivery
of Additional Documentation Required. At any time           upon the
request of Collateral Agent, Borrower shall execute and deliver to           Collateral
Agent, any and all financing statements, original financing           statements in lieu
of continuation statements, fixture filings, security           agreements, pledges,
assignments, endorsements of certificates of title, and all           other documents
(the “Additional Documents”) that Collateral           Agent may request
in its Permitted Discretion, in form and substance           satisfactory to Collateral
Agent, to perfect and continue perfected or better           perfect the Collateral Agent’s
Liens in the Borrower Collateral (whether           now owned or hereafter arising or
acquired), to create and perfect Liens in           favor of Collateral Agent in any Real
Property acquired after the Closing Date,           and in order to fully consummate all
of the transactions contemplated hereby and           under the other Loan Documents. To
the maximum extent permitted by applicable           law, Borrower authorizes Collateral
Agent to execute any such Additional           Documents in Borrower’s name and
authorizes Collateral Agent to file such           executed Additional Documents in any
appropriate filing office. In addition, on           such periodic basis as Collateral
Agent shall require, Borrower shall (a)           provide Collateral Agent with a report
of all new patentable, copyrightable, or           trademarkable materials acquired or
generated by Borrower during the prior           period, (b) cause all patents,
copyrights, and trademarks acquired or generated           by Borrower that are not
already the subject of a registration with the           appropriate filing office (or an
application therefor diligently prosecuted) to           be registered with such
appropriate filing office in a manner sufficient to           impart constructive notice
of Borrower’s ownership thereof, and (c) cause           to be prepared, executed,
and delivered to Collateral Agent supplemental           schedules to the applicable Loan
Documents to identify such patents, copyrights,           and trademarks as being subject
to the security interests created thereunder.  

    4.5.     Power
of Attorney. Borrower hereby irrevocably makes,           constitutes, and
appoints Collateral Agent (and any of Collateral Agent’s           officers,
employees, or agents designated by Collateral Agent) as           Borrower’s true
and lawful attorney, with power to (a) if Borrower refuses           to, or fails timely
to execute and deliver any of the documents described in Section 4.4, sign the
name of Borrower on any of the documents described           in Section 4.4, (b)
at any time that an Event of Default has occurred and           is continuing, sign
Borrower’s name on any invoice or bill of lading           relating to the Borrower
Collateral, drafts against Account Debtors, or notices           to Account Debtors, (c)
send requests for verification of Accounts, (d) endorse           Borrower’s name on
any Collection item that may come into the Lender           Group’s possession and
which is Borrower Collateral or proceeds of Borrower           Collateral, (e) at any
time that an Event of Default has occurred and is           continuing, make, settle, and
adjust all claims under Borrower’s policies           of insurance and make all
determinations and decisions with respect to such           policies of insurance, except
to the extent that property covered by such           insurance does not constitute
Borrower Collateral and (f) at any time that an           Event of Default has occurred
and is continuing, settle and adjust disputes and           claims respecting the
Accounts, chattel paper, or General Intangibles directly           with Account Debtors,
for amounts and upon terms that Collateral Agent           determines to be reasonable,
and Collateral Agent may cause to be executed and           delivered any documents and
releases that Collateral Agent determines to be           necessary. The appointment of
Collateral Agent as Borrower’s attorney, and           each and every one of its
rights and powers, being coupled with an interest, is           irrevocable until all of
the Obligations have been fully and finally repaid and           performed and the Lender
Group’s obligations to extend credit hereunder are           terminated.  

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    4.6.     Right
to Inspect. Agents and each Lender (through any of           their
respective officers, employees, or agents) shall have the right during           regular
business hours prior to the occurrence of any Event of Default (subject           to
Section 2.11(d)) and at any time after the occurrence of an Event of Default,
          from time to time hereafter to inspect the Books and to check, test, and
          appraise the Borrower Collateral in order to verify Borrower’s financial
          condition or the amount, quality, value, condition of, or any other matter
          relating to, the Borrower Collateral.  

    4.7.     Control
Agreements. Borrower agrees that it will not           transfer assets out
of any Securities Accounts other than as permitted under Section 7.19 and, if to
another securities intermediary, unless each of           Borrower, Collateral Agent, and
the substitute securities intermediary have           entered into a Control Agreement.
No arrangement contemplated hereby or by any           Control Agreement in respect of
any Securities Accounts or other Investment           Property shall be modified by
Borrower without the prior written consent of           Collateral Agent. Upon the
occurrence and during the continuance of a Default or           Event of Default,
Collateral Agent may notify any securities intermediary to           liquidate the
applicable Securities Account or any related Investment Property           maintained or
held thereby and remit the proceeds thereof to the Collateral           Agent’s
Account.  

	5. 	REPRESENTATIONS
AND WARRANTIES.

        In
order to induce the Lender Group to enter into this Agreement, Borrower makes the
following representations and warranties to the Lender Group which shall be true, correct,
and complete, in all material respects, as of the date hereof, and shall be true, correct,
and complete, in all material respects, as of the Closing Date, and at and as of the date
of the making of each Advance (or other extension of credit) made thereafter, as though
made on and as of the date of such Advance (or other extension of credit) (except to the
extent that such representations and warranties relate solely to an earlier date) and such
representations and warranties shall survive the execution and delivery of this Agreement: 

    5.1.     No
Encumbrances. Borrower has good and marketable title to           the
Borrower Collateral and the Real Property constituting Borrower Collateral,
          free and clear of Liens except for Permitted Liens.  

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    5.2.     Eligible
Accounts. The Eligible Accounts are bona           fide existing
payment obligations of Account Debtors created by the sale and           delivery of
Inventory or the rendition of services to such Account Debtors in           the ordinary
course of Borrower’s business, owed to Borrower without           defenses,
disputes, offsets (except Accounts where Ocean Spray is the Account           Debtor to
the extent offsets are permitted under the Toll Processing Agreement),
          counterclaims, or rights of return or cancellation. As to each Eligible
Account,           such Account is not:  

        (a)                 owed
by an employee, Affiliate, or agent of Borrower,  

        (b)                 on
account of a transaction wherein goods were placed on consignment or were           sold
pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill           and
hold, or on any other terms by reason of which the payment by the Account
          Debtor may be conditional,  

        (c)                 payable
in a currency other than Dollars,  

        (d)                 owed
by an Account Debtor that has or has asserted a right of setoff (in the           case of
Ocean Spray, only to the extent that such right of setoff has been           asserted),
has disputed its liability, or has made any claim with respect to its
          obligation to pay the Account, except that to the extent such setoff has been
          disclosed to the Agents in writing, such Account shall not be an Eligible
          Account only to the extent of such setoff,  

        (e)                 owed
by an Account Debtor that is subject to any Insolvency Proceeding or is not
          Solvent or as to which Borrower has received notice of an imminent Insolvency
          Proceeding or a material impairment of the financial condition of such Account
          Debtor,  

        (f)                 except
Accounts where Ocean Spray is the Account Debtor, on account of a           transaction
as to which the goods giving rise to such Account have not been           shipped and
billed to the Account Debtor or the services giving rise to such           Account have
not been performed and accepted by the Account Debtor,  

        (g)                 a
right to receive progress payments or other advance billings that are due           prior
to the completion of performance by Borrower of the subject contract for           goods
or services, and  

        (h)                 an
Account that has not been billed to the customer.  

    5.3.     Eligible
Inventory. All Eligible Inventory is of good and           merchantable
quality, free from defects. As to each item of Eligible Inventory,           such
Inventory is:  

        (a)                 owned
by Borrower free and clear of all Liens other than Liens in favor of           Collateral
Agent or a Permitted Lien in favor of Ocean Spray,  

        (b)                 either
located at one of the locations set forth on Schedule E-1 or in           transit
from one such location to another such location, or in possession or           control of
Ocean Spray,  

        (c)                 not
located on real property leased by Borrower or in a contract warehouse, in           each
case, unless subject to a Collateral Access Agreement executed by the           lessor,
the warehouseman, or other third party, as the case may be, and unless
          segregated or otherwise separately identifiable from goods of others, if any,
          stored on the premises (unless such Inventory shall have been delivered by
Ocean           Spray to such warehouses),  

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        (d)                 not
goods that have been returned or rejected by Borrower’s customers, and  

        (e)                 not
goods that are obsolete or slow moving, restrictive or custom items,
          work-in-process, or that constitute spare parts, packaging and shipping
          materials, supplies used or consumed in Borrower’s business, bill and hold
          goods, defective goods, “seconds,” or Inventory acquired on
          consignment.  

    5.4.     Equipment.
All of the Equipment is used or held for use in           Borrower’s business other
than Equipment that is damaged, obsolete or           otherwise no longer used or useful
in the conduct of Borrower’s business.  

    5.5.     Location
of Inventory and Equipment. The Inventory and           Equipment
constituting Borrower Collateral are not stored with a bailee,           warehouseman, or
similar party and are located only at the locations identified           on Schedule
5.5 or in transit from one such location to another such           location, or in
the possession or control of Ocean Spray or in transit from or           to Ocean Spray,
except for Equipment that is absent from such location for a           period not
exceeding a commercially reasonable time for repair or refurbishment.           Borrower
may from time to time update Schedule 5.5 so long as (i) Borrower gives           Agents
not less than thirty (30) days advance written notice and (ii) Borrower
          delivers to Collateral Agent a Collateral Access Agreement with respect to each
          additional location listed on any revised Schedule 5.5.  

    5.6.     Inventory
Records. Borrower keeps correct and accurate           records itemizing
and describing the type, quality, and quantity of its           Inventory and the book
value thereof.  

    5.7.     Location
of Chief Executive Office; FEIN. The chief           executive office of
Borrower is located at the address indicated in Schedule           5.7 and Borrower’s
FEIN is identified in Schedule 5.7. Borrower           may from time to time
update Schedule 5.7 so long as (i) Borrower gives Agents           not less than thirty
(30) days advance written notice and (ii) Borrower delivers           to Lender a
Collateral Access Agreement with respect to each additional location           listed on
any revised Schedule 5.7.  

    5.8.     Due
Organization and Qualification; Subsidiaries.  

        (a)                 Borrower
is duly organized and existing and in good standing under the laws of           the
jurisdiction of its organization and qualified to do business in any state
          where the failure to be so qualified reasonably could be expected to have a
          Material Adverse Change.  

        (b)                 Set
forth on Schedule 5.8(b) is a complete and accurate description as of
          the Closing Date of the authorized capital Stock of Borrower, by class, and, as
          of the Closing Date, a description of the number of shares of each such class
          that are issued and outstanding. Other than as described on Schedule
          5.8(b), there are no subscriptions, options, warrants, or calls relating to
          any shares of Borrower’s capital Stock, including any right of conversion
          or exchange under any outstanding security or other instrument. Other than as
          set forth in Schedule 5.8(b) or other than the contingent obligations of
          the Borrower pursuant to its articles of incorporation to make payments
required           to be made to the holders of the Borrower’s series B preferred
Stock,           Borrower is not subject to any obligation (contingent or otherwise) to
          repurchase or otherwise acquire or retire any shares of its capital Stock or
any           security convertible into or exchangeable for any of its capital Stock.  

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        (c)                 Set
forth on Schedule 5.8(c), is a complete and accurate list of           Borrower’s
direct and indirect Subsidiaries, showing: (i) the jurisdiction           of their
organization, (ii) the number of shares of each class of common and           preferred
Stock authorized for each of such Subsidiaries, and (iii) the number           and the
percentage of the outstanding shares of each such class owned directly           or
indirectly by Borrower. All of the outstanding capital Stock of each such
          Subsidiary has been validly issued and is fully paid and non-assessable, except as
otherwise expressly provided under Wisconsin Stat.           §180.0622(2)(b).  

        (d)                 Except
as set forth on Schedule 5.8(c), there are no subscriptions,           options,
warrants, or calls relating to any shares of Borrower’s           Subsidiaries’ capital
Stock, including any right of conversion or exchange           under any outstanding
security or other instrument. Neither Borrower nor any of           its Subsidiaries is
subject to any obligation (contingent or otherwise) to           repurchase or otherwise
acquire or retire any shares of Borrower’s           Subsidiaries’ capital
Stock or any security convertible into or           exchangeable for any such capital
Stock.  

        (e)                 Borrower
is in compliance with all applicable provisions of law, including,           without
limitation, the Food Security Act, PACA and Borrower, and each of its
          subsidiaries and affiliates possess all necessary authorizations, permits and
          licenses to lawfully conduct business operations. Borrower, and each of
          Borrower’s subsidiaries, affiliates, divisions and branches possess all
          necessary dealer’s license(s) under PACA, and such licenses are current
and           valid.  

    5.9.     Due
Authorization; No Conflict.  

        (a)                 The
execution, delivery, and performance by Borrower of this Agreement and the           Loan
Documents to which it is a party have been duly authorized by all necessary
          action on the part of Borrower.  

        (b)                 The
execution, delivery, and performance by Borrower of this Agreement and the           Loan
Documents to which it is a party do not and will not (i) violate any           provision
of federal, state, or local law or regulation applicable to Borrower,           the
Governing Documents of Borrower, or any order, judgment, or decree of any           court
or other Governmental Authority binding on Borrower, (ii) conflict with,           result
in a breach of, or constitute (with due notice or lapse of time or both)           a
default under any material contractual obligation of Borrower, (iii) result in
          or require the creation or imposition of any Lien of any nature whatsoever upon
          any properties or assets of Borrower, other than Permitted Liens, or (iv)
          require any approval of Borrower’s interestholders or any approval or
          consent of any Person under any material contractual obligation of Borrower,
          except to the extent any such approval or consent has been obtained.  

        (c)                 Other
than the filing of financing statements, fixture filings, and Mortgages           and
Form 8-K reports, the execution, delivery, and performance by Borrower of           this
Agreement and the Loan Documents to which Borrower is a party do not and           will
not require any registration with, consent, or approval of, or notice to,           or
other action with or by, any Governmental Authority or other Person.  

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        (d)                 This
Agreement and the other Loan Documents to which Borrower is a party, and           all
other documents contemplated hereby and thereby, when executed and delivered           by
Borrower will be the legally valid and binding obligations of Borrower,
          enforceable against Borrower in accordance with their respective terms, except
          as enforcement may be limited by equitable principles or by bankruptcy,
          insolvency, reorganization, moratorium, or similar laws relating to or limiting
          creditors’ rights generally.  

        (e)                 The
Collateral Agent’s Liens on Collateral are validly created, perfected,           and
first priority Liens, subject only to Permitted Liens.  

        (f)                 The
execution, delivery, and performance by each Guarantor of the Loan Documents           to
which it is a party have been duly authorized by all necessary action on the
          part of Guarantor.  

        (g)                 The
execution, delivery, and performance by Guarantor of the Loan Documents to
          which it is a party do not and will not (i) violate any provision of federal,
          state, or local law or regulation applicable to Guarantor, the Governing
          Documents of Guarantor, or any order, judgment, or decree of any court or other
          Governmental Authority binding on Guarantor, (ii) conflict with, result in a
          breach of, or constitute (with due notice or lapse of time or both) a default
          under any material contractual obligation of Guarantor, (iii) result in or
          require the creation or imposition of any Lien of any nature whatsoever upon
any           properties or assets of Guarantor, other than Permitted Liens, or (iv)
require           any approval of Guarantor’s interestholders or any approval or
consent of           any Person under any material contractual obligation of Guarantor.  

        (h)                 The
execution, delivery, and performance by Guarantor of the Loan Documents to
          which Guarantor is a party do not and will not require any registration with,
          consent, or approval of, or notice to, or other action with or by, any
          Governmental Authority or other Person.  

        (i)                 The
Loan Documents to which Guarantor is a party, and all other documents
          contemplated hereby and thereby, when executed and delivered by Guarantor will
          be the legally valid and binding obligations of Guarantor, enforceable against
          Guarantor in accordance with their respective terms, except as enforcement may
          be limited by equitable principles or by bankruptcy, insolvency,
reorganization,           moratorium, or similar laws relating to or limiting creditors’ rights
          generally.  

    5.10.     Litigation.
Other than those matters disclosed on Schedule 5.10, there are no actions, suits,
or proceedings pending or, to           the best knowledge of Borrower, threatened
against Borrower, or any of its           Subsidiaries, as applicable, except for (a)
matters that are fully covered by           insurance (subject to customary deductibles),
and (b) matters arising after the           Closing Date that, if decided adversely to
Borrower, or any of its Subsidiaries,           as applicable, reasonably could not be
expected to result in a Material Adverse           Change.  

    5.11.     No
Material Adverse Change. All financial statements           relating to
Borrower or Guarantors that have been delivered by Borrower to the           Lender Group
have been prepared in accordance with GAAP (except, in the case of           unaudited
financial statements, for the lack of footnotes and being subject to           year-end
audit adjustments) and present fairly in all material respects,           Borrower’s
(or Guarantors, as applicable) financial condition as of the           date thereof and
results of operations for the period then ended. There has not           been a Material
Adverse Change with respect to Borrower and Guarantors taken as           a whole, since
the date of the latest financial statements submitted to the           Lender Group on or
before the Closing Date.  

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    5.12.     Fraudulent
Transfer.  

        (a)                 Borrower
is Solvent after giving effect to transactions contemplated on the           Closing Date
by Borrower with Agents and Lenders.  

        (b)                 No
transfer of property is being made by Borrower and no obligation is being
          incurred by Borrower in connection with the transactions contemplated by this
          Agreement or the other Loan Documents with the intent to hinder, delay, or
          defraud either present or future creditors of Borrower.  

    5.13.     Employee
Benefits. Except as set forth on Schedule 5.13,           none of
Borrower, any of its Subsidiaries, or any of their ERISA Affiliates           maintains
or contributes to any Benefit Plan.  

    5.14.     Environmental
Condition. Except as set forth on Schedule           5.14, (a) to
Borrower’s knowledge, none of Borrower’s assets has           ever been used by
Borrower or by previous owners or operators in the disposal           of, or to produce,
store, handle, treat, release, or transport, any Hazardous           Materials, where
such production, storage, handling, treatment, release or           transport was in
violation, in any material respect, of applicable Environmental           Law, (b) to
Borrower’s knowledge, none of Borrower’s properties or           assets has
ever been designated or identified in any manner pursuant to any           environmental
protection statute as a Hazardous Materials disposal site, (c)           Borrower has not
received notice that a Lien arising under any Environmental Law           has attached to
any revenues or to any Real Property owned or operated by           Borrower, and (d)
Borrower has not received a summons, citation, notice, or           directive from the
Environmental Protection Agency or any other federal or state           governmental
agency concerning any action or omission by Borrower resulting in           the releasing
or disposing of Hazardous Materials into the environment.  

    5.15.     Brokerage
Fees. Except as set forth on Schedule 5.15,           Borrower has not
utilized the services of any broker or finder in connection           with Borrower’s
obtaining financing from the Lender Group under this           Agreement and no brokerage
commission or finders fee is payable by Borrower in           connection herewith.  

    5.16.     Intellectual
Property. Borrower owns, has rights to use or           holds licenses in,
all trademarks, trade names, copyrights, patents, patent           rights, and licenses
that are necessary to the conduct of its business as           currently conducted.
Attached hereto as Schedule 5.16 is a true, correct,           and complete
listing of all material patents, patent applications, trademarks,           trademark
applications, copyrights, and copyright registrations as to which           Borrower is
the owner or is an exclusive licensee. Borrower may from time to           time update
Schedule 5.16 on not less than thirty (30) days advance written           notice to
Collateral Agent.  

    5.17.     Leases.
Except as expressly set forth on Schedule 5.17,           Borrower enjoys peaceful and
undisturbed possession under all leases material to           the business of Borrower
and to which it is a party or under which it is           operating. All of such leases
are valid and subsisting and no material default           by Borrower exists under any
of them.  

-68- 

    5.18.     DDAs.
Set forth on Schedule 5.18 are all of           Borrower’s DDAs, including,
with respect to each depository (i) the name           and address of such depository,
and (ii) the account numbers of the accounts           maintained with such depository.
Borrower may from time to time update Schedule           5.18 on not less than thirty
(30) days advance written notice to Collateral           Agent.  

    5.19.     Complete
Disclosure. All factual information (taken as a           whole) furnished
by or on behalf of Borrower in writing to any Agent or any           Lender (including
all information contained in the Schedules hereto or in the           other Loan
Documents) for purposes of or in connection with this Agreement, the           other Loan
Documents, or any transaction contemplated herein or therein is, and           all other
such factual information (taken as a whole) hereafter furnished by or           on behalf
of Borrower in writing to any Agent or any Lender will be, true and           accurate,
in all material respects, on the date as of which such information is           dated or
certified and not incomplete by omitting to state any fact necessary to           make
such information (taken as a whole) not misleading in any material respect           at
such time in light of the circumstances under which such information was
          provided. On the Closing Date, the Closing Date Projections represent, and as
of           the date on which any other Projections are delivered to Agents, such
additional           Projections represent Borrower’s good faith best estimate of
its future           performance for the periods covered thereby.  

    5.20.     Indebtedness.
Set forth on Schedule 5.20 is a true           and complete list of all
Indebtedness of Borrower outstanding immediately prior           to the Closing Date that
is to remain outstanding after the Closing Date and           such Schedule accurately
reflects the aggregate principal amount of such           Indebtedness as of the Closing
Date and the principal terms thereof.  

    5.21.     Notices
from Farm Products Sellers, etc.  

        (a)                 Except
as set forth in Schedule 5.21(a) hereto, Borrower has not, within           the
one (1) year period prior to the date hereof, received any written notice
          pursuant to the applicable provisions of the Food Security Act, or pursuant to
          the Code or any state statutory agricultural or producers’ lien laws or
any           other applicable local laws from (i) any Farm Products Seller or (ii) any
lender           to any Farm Products Seller or any other Person with a security interest
in the           assets of any Farm Products Seller or (iii) the Secretary of State (or
          equivalent official) or other Governmental Authority of any State, Commonwealth
          or political subdivision thereof in which any Farm Products purchased by
          Borrower are produced, in any case advising or notifying Borrower of the
          intention of such Farm Products Seller or other Person to preserve the benefits
          of any trust, lien or other interest applicable to any assets of Borrower
          established in favor of such Farm Products Seller or other Person under any
          other law other than PACA or claiming a Lien or security interest in and to any
          perishable agricultural commodity or any other Farm Products which may be or
          have been purchased by Borrower or any related or other assets of Borrower (all
          of the foregoing, together with any such notices as Borrower may at any time
          hereafter receive, collectively, the “Food Security Act Notices”).  

        (b)                 Borrower
is not engaged in, and shall not engage in, raising, cultivating,           propagating,
fattening or grazing, livestock operations, or other farming           operations.  

-69- 

        (c)                 Borrower
is not and shall not function as a meat packer, “livestock           dealer”,
or “live poultry dealer” as those terms are defined           under the PSA nor
does or shall Borrower purchase or deal in any type of           livestock, live poultry,
or the slaughtered carcasses thereof whatsoever.  

    5.22.    Nestle
USA, Inc. At all times prior to removing the           financing statement
filed with the Wisconsin Department of Financial           Institutions on January 16,
2001, listing Nestle USA, Inc., as secured party,           and Borrower, as debtor,
Borrower does not conduct any business with Nestle USA,           Inc. and there are no
outstanding obligations or Indebtedness owed to Nestle           USA, Inc.  

	6. 	AFFIRMATIVE
COVENANTS.

        Borrower
covenants and agrees that, so long as any credit hereunder shall be available and until
full and final payment of the Obligations, Borrower shall and shall cause each of its
Subsidiaries to do all of the following: 

    6.1.    Accounting
System. Maintain a system of accounting that           enables Borrower to
produce financial statements in accordance with GAAP and           maintain records
pertaining to the Borrower Collateral that contain information           as from time to
time reasonably may be requested by Collateral Agent. Borrower           also shall keep
an inventory reporting system that shows all additions, sales,           claims, returns,
and allowances with respect to the Inventory.  

    6.2.    Collateral
Reporting. Provide Administrative Agent (and if           so requested by
any Agent, with copies for each Lender) with the following           documents at the
following times in form satisfactory to each Agent:  

	

	Daily	(a)	a sales journal, collection journal, and credit register
	 	 	since the last such schedule and a calculation of the
	 	 	Borrowing Base as of such date;
	 	(b)	notice of all returns, disputes, or claims in excess of
	 	 	$5,000;
	

	Weekly	(c)	Inventory reports specifying Borrower's cost and the
	 	 	wholesale market value of its Inventory, by category,
	 	 	including without limitation a breakout of cranberry
	 	 	concentrate and frozen cranberries by gallons and pounds,
	 	 	respectively, with additional detail showing additions to
	 	 	and deletions from the Inventory;
	

	Monthly (not later than the	(d)	a detailed calculation of the Borrowing Base (including
	15th day of each month)	 	detail regarding those Accounts that are not Eligible
	 	 	Accounts);
	 	(e)	a detailed aging, by total, of the Accounts, together with a

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	 	 	reconciliation to the detailed calculation of the Borrowing
	 	 	Base previously provided to Administrative Agent;
	 	(f)	a summary aging, by vendor, of Borrower's accounts payable
	 	 	and any book overdraft;
	 	(g)	a calculation of Dilution for the prior month;
	 	(h)	a listing of Farm Products Sellers and amounts owed to each
	 	 	such Person;
	 	(i)	a monthly purchase price statement and a monthly perpetual
	 	 	inventory report, in each case, as received by Borrower
	 	 	pursuant to the Ocean Spray Toll Processing Agreement;
	

	Quarterly	(j)	a detailed list of Borrower's customers;
	 	(k)	a report regarding Borrower's accrued, but unpaid, ad
	 	 	valorem taxes;
	

	Upon request by any Agent	(l)	copies of invoices in connection with the Accounts, credit
	 	 	memos, remittance advices, deposit slips, shipping and
	 	 	delivery documents in connection with the Accounts and, for
	 	 	Inventory and Equipment acquired by Borrower, purchase
	 	 	orders and invoices;
	 	(m)	copies of written agreements with Borrower's Farm Product
	 	 	Sellers, and with its other material vendors and material
	 	 	customers, as well as Borrower's written description of any
	 	 	arrangements with such vendors or customers, which may not
	 	 	be memorialized in writing;
	 	(n)	such other reports as to the Borrower Collateral, or the
	 	 	financial condition of Borrower, as any Agent may request;
	

	Upon occurrence	(o)	immediate notice of any default or notice of default
	 	 	received with respect to the federal multi-peril crop
	 	 	insurance policy including a copy of any written notice
	 	 	received by Borrower.
	

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    6.3.    Financial
Statements, Reports, Certificates. Deliver to                Agents, with
copies to each Lender:  

        (a)       
               as soon as available, but in any event within 30 days (45 days in the case
of a                month that is the end of one of the first 3 fiscal quarters in a
fiscal year or                that is the month immediately following the Closing Date)
after the end of each                month during each of Borrower’s fiscal years,  

	 	        (i)    
               a company prepared consolidated balance sheet, income statement, and
statement                of cash flow covering Borrower’s and its Subsidiaries’ operations
               during such period,  

	 	        (ii)    
               a certificate signed by the chief financial officer of Borrower to the
effect                that:  

                (A) 
               the financial statements delivered hereunder have been prepared in
accordance                with GAAP (except for the lack of footnotes and being subject
to year-end audit                adjustments) and fairly present in all material respects
the financial condition                of Borrower and its Subsidiaries,  

                (B) 
               the representations and warranties of Borrower contained in this Agreement
and                the other Loan Documents are true and correct in all material respects
on and as                of the date of such certificate, as though made on and as of
such date (except                to the extent that such representations and warranties
relate solely to an                earlier date), and  

                (C) 
               there does not exist any condition or event that constitutes a Default or
Event                of Default (or, to the extent of any non-compliance, describing such
               non-compliance as to which he or she may have knowledge and what action
Borrower                has taken, is taking, or proposes to take with respect thereto),
and  

	 	        (iii)    
               for each month that is the date on which a financial covenant in Section
               7.20 is to be tested, a Compliance Certificate demonstrating, in
reasonable                detail, compliance at the end of such period with the
applicable financial                covenants contained in Section 7.20, and  

        (b)       
               as soon as available, but in any event within 120 days after the end of
each of                Borrower’s fiscal years,  

	 	        (i)    
               financial statements of Borrower and its Subsidiaries for each such fiscal
year,                audited by independent certified public accountants reasonably
acceptable to                Agents and certified, without any qualifications (including,
without limitation,                (i) any going concern or like qualification or
exception or (ii) any                qualification as to the scope of such audit), by
such accountants to have been                prepared in accordance with GAAP (such
audited financial statements to include a                balance sheet, income statement,
and statement of cash flow and, if prepared,                such accountants’ letter
to management),  

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	 	        (ii)    
               a certificate of such accountants addressed to Agents and the Lenders
stating                that such accountants do not have knowledge of the existence of
any Default or                Event of Default under Section 7.20,  

        (c)       
               as soon as available, but in any event within 30 days prior to the start
of each                of Borrower’s fiscal years,  

	 	        (i)    
               copies of Borrower’s Projections, in form and substance (including as
to                scope and underlying assumptions) satisfactory to Agents, each in its
sole                discretion, for the forthcoming 3 years, year by year, and for the
forthcoming                fiscal year, month by month, certified by the chief financial
officer of                Borrower as being such officer’s good faith best estimate
of the financial                performance of Borrower during the period covered
thereby,  

        (d)       
               if and when filed by Borrower,  

	 	        (i)    
               Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K
current                reports,  

	 	        (ii)    
               any other filings made by Borrower with the SEC,  

	 	        (iii)    
               copies of Borrower’s federal income tax returns, and any amendments
               thereto, filed with the Internal Revenue Service, and  

	 	        (iv)    
               any other information that is provided by Borrower to its shareholders
               generally,  

        (e)       
               if and when filed by Borrower and as requested by any Agent, satisfactory
               evidence of payment of applicable excise taxes in each jurisdictions in
which                (i) Borrower conducts business or is required to pay any such excise
tax, (ii)                where Borrower’s failure to pay any such applicable excise
tax would result                in a Lien on the properties or assets of Borrower, or
(iii) where                Borrower’s failure to pay any such applicable excise tax
reasonably could                be expected to result in a Material Adverse Change,  

        (f)       
               as soon as Borrower has knowledge of any event or condition that
constitutes a                Default or an Event of Default, notice thereof and a
statement of the curative                action that Borrower proposes to take with
respect thereto,  

        (g)       
               upon the request of any Agent, any other report reasonably requested
relating to                the financial condition of Borrower, and  

        (h)       
               (i) promptly after receipt or delivery thereof, copies of any material
notices                that any Loan Party receives from or sends to any Person in
connection with the                Ocean Spray Documents, (ii) at least 3 Business
Days prior to the effective                date thereof, the most recent version (which
shall be in substantially final                form) of any material amendments,
modifications, waivers or other changes to any                of the Ocean Spray
Documents, and (iii) promptly after the execution thereof,                any amendments,
modifications, waivers or other changes to any of the Ocean                Spray
Documents.  

-73- 

        In
addition to the financial statements referred to above, Borrower agrees to deliver
financial statements prepared on both a consolidated and consolidating basis and agrees
that no Subsidiary of Borrower will have a fiscal year different from that of Borrower.
Borrower agrees that its independent certified public accountants are authorized to
communicate with Agents and to release to Agents whatever financial information concerning
Borrower any Agent reasonably may request. Borrower waives the right to assert a
confidential relationship, if any, it may have with any accounting firm or service bureau
in connection with any information requested by any Agent pursuant to or in accordance
with this Agreement, and agrees that any Agent may contact directly any such accounting
firm or service bureau in order to obtain such information. 

    6.4.    Return.
Cause returns and allowances, as between Borrower           and its Account Debtors, to
be on the same basis and in accordance with the           usual customary practices of
Borrower, as they exist at the time of the           execution and delivery of this
Agreement. If, at a time when no Event of Default           has occurred and is
continuing, any Account Debtor returns any Inventory with a           sale price in
excess of $25,000, or any Account Debtors return inventory in any           fiscal
quarter with a sale price in excess of $50,000 in the aggregate, to           Borrower,
Borrower promptly shall determine the reason for such return and, if           Borrower
accepts such return, issue a credit memorandum (with a copy to be sent           to each
Agent) in the appropriate amount to such Account Debtor. If, at a time           when an
Event of Default has occurred and is continuing, any Account Debtor           returns any
Inventory to Borrower, Borrower promptly shall determine the reason           for such
return and, if each Agent consents (which consents shall not be           unreasonably
withheld), issue a credit memorandum (with a copy to be sent to           each Agent) in
the appropriate amount to such Account Debtor.  

    6.5.    Maintenance
of Properties. Except as expressly set forth on           Schedule 5.17,
maintain and preserve all of its properties which are necessary           or useful in
the proper conduct to its business in good working order and           condition,
ordinary wear and tear and casualty excepted, and comply at all times           with the
provisions of all leases to which it is a party as lessee so as to           prevent any
material loss or forfeiture thereof or thereunder; provided,           however, that
Borrower is permitted to sell and dispose of property pursuant to           Section 7.4
hereto.  

    6.6.    Taxes.
Cause all assessments and taxes, whether real,           personal, or otherwise, due or
payable by, or imposed, levied, or assessed           against Borrower or any of its
assets to be paid in full, before delinquency or           before the expiration of any
extension period, except to the extent that the           validity of such assessment or
tax shall be the subject of a Permitted Protest.           Borrower will make timely
payment or deposit of all tax payments and withholding           taxes required of it by
applicable laws, including those laws concerning           F.I.C.A., F.U.T.A., state
disability, and local, state, and federal income           taxes, and will, upon request,
furnish Collateral Agent with proof satisfactory           to Collateral Agent indicating
that Borrower has made such payments or deposits.           Borrower shall deliver
satisfactory evidence of payment of applicable excise           taxes in each
jurisdictions in which Borrower is required to pay any such excise           tax.  

    6.7.    Insurance.  

-74- 

        (a)                 At
Borrower’s expense, maintain insurance respecting its assets wherever
          located, covering loss or damage by fire, theft, explosion, and all other
          hazards and risks as ordinarily are insured against by other Persons engaged in
          the same or similar businesses. Borrower also shall maintain business
          interruption, public liability, multi-peril crop and product liability
          insurance, as well as insurance against larceny, embezzlement, and criminal
          misappropriation. All such policies of insurance shall be in such amounts and
          with such insurance companies as are reasonably satisfactory to Agents.
Borrower           shall deliver copies of all such policies to Collateral Agent with a
          satisfactory lender’s loss payable endorsement naming Collateral Agent as
          sole loss payee (with respect to Collateral) or additional insured, as
          appropriate. Each policy of insurance or endorsement shall contain a clause
          requiring the insurer to give not less than 30 days prior written notice to
          Collateral Agent in the event of cancellation of the policy for any reason
          whatsoever.  

        (b)                 Borrower
shall give Collateral Agent prompt notice of any loss covered by such
          insurance. Collateral Agent shall have the exclusive right to adjust any losses
          payable under any such insurance policies (other than losses payable subject to
          a perfected Permitted Lien in favor of Equitable or Wood County Bank) in excess
          of $500,000, without any liability to Borrower whatsoever in respect of such
          adjustments. Subject to the Borrower’s right to reinvest proceeds of
          insurance under Section 2.4(d), any monies received as payment for any loss
with           respect to Collateral under any insurance policy mentioned above (other
than           liability insurance policies) or as payment of any award or compensation
for           condemnation or taking by eminent domain, shall be paid over to Collateral
Agent           to be applied at the option of the Required Lenders either to the
prepayment of           the Obligations or shall be disbursed to Borrower under staged
payment terms           reasonably satisfactory to the Required Lenders for application
to the cost of           repairs, replacements, or restorations. Any such repairs,
replacements, or           restorations shall be effected with reasonable promptness and
shall be of a           value at least equal to the value of the items of property
destroyed prior to           such damage or destruction.  

        (c)                 Borrower
will not take out separate insurance concurrent in form or contributing           in the
event of loss with that required to be maintained under this Section           6.7 with
respect to Collateral, unless Collateral Agent is included thereon           as named
insured with the loss payable to Collateral Agent under a lender’s           loss
payable endorsement or its equivalent. Borrower immediately shall notify
          Collateral Agent whenever such separate insurance is taken out, specifying the
          insurer thereunder and full particulars as to the policies evidencing the same,
          and copies of such policies promptly shall be provided to Collateral Agent.  

    6.8.    Location
of Inventory and Equipment. Keep the Inventory and           Equipment
only at the locations identified on Schedule 5.5 (other than           (i)
Inventory and Equipment that is in transit to or among such locations, (ii)
          Inventory that is in the possession or control of Ocean Spray or Inventory in
          the possession of processors with an aggregate fair market value not to exceed
          $250,000, or (iii) Equipment that is absent from such locations for a period
not           exceeding a commercially reasonable time for repair or refurbishment); provided,
however, that Borrower may amend Schedule 5.5 so           long as such
amendment occurs by written notice to Agents not less than 30 days           prior to the
date on which Inventory or Equipment constituting Borrower           Collateral is moved
to such new location, so long as such new location is within           the continental
United States, and so long as, at the time of such written           notification,
Borrower provides any financing statements or fixture filings           necessary to
perfect and continue perfected the Collateral Agent’s Liens on           such assets
and also provides to Collateral Agent a Collateral Access Agreement.  

-75- 

    6.9.    Compliance
with Laws. Comply with the requirements of all           applicable laws,
rules, regulations, and orders of any Governmental Authority,           including the
Fair Labor Standards Act, the Americans With Disabilities Act,           PACA, the Food
Security Act, other than laws, rules, regulations, and orders the
          non-compliance with which, individually or in the aggregate, would not result
in           and reasonably could not be expected to result in a Material Adverse Change.  

    6.10.    Leases.
Except as expressly set forth on Schedule 5.17, pay           when due all rents and
other amounts payable under any leases to which Borrower           is a party or by which
Borrower’s properties and assets are bound, unless           such payments are the
subject of a Permitted Protest.  

    6.11.    Brokerage
Commissions. Pay any and all brokerage commission           or finders
fees incurred in connection with or as a result of Borrower’s           obtaining
financing from the Lender Group under this Agreement. Borrower agrees           and
acknowledges that payment of all such brokerage commissions or finders fees
          shall be the sole responsibility of Borrower, and Borrower agrees to indemnify,
          defend, and hold each Agent and the Lender Group harmless from and against any
          claim of any broker or finder arising out of Borrower’s obtaining
financing           from the Lender Group under this Agreement.  

    6.12.    Existence.
At all times preserve and keep in full force and           effect Borrower’s valid
existence and good standing and any rights and           franchises material to Borrower’s
businesses.  

    6.13.    Environmental.  

        (a)                 Keep
any property either owned or operated by Borrower free of any Environmental
          Liens or post bonds or other financial assurances sufficient to satisfy the
          obligations or liability evidenced by such Environmental Liens, (b) comply, in
          all material respects, with Environmental Laws and provide to Collateral Agent
          documentation of such compliance which Collateral Agent reasonably requests,
(c)           promptly notify each Agent of any release of a Hazardous Material in any
          reportable quantity from or onto property owned or operated by Borrower and
take           any Remedial Actions required to abate said release or otherwise to come
into           compliance with applicable Environmental Law, and (d) promptly provide
each           Agent with written notice within 10 days of the receipt of any of the
following:           (i) notice that an Environmental Lien has been filed against any of
the real or           personal property of Borrower, (ii) commencement of any
Environmental Action or           notice that an Environmental Action will be filed
against Borrower, and (iii)           notice of a violation, citation, or other
administrative order which reasonably           could be expected to result in a Material
Adverse Change.  

    6.14.    Agricultural
Products.  

-76- 

        (a)                 Borrower
shall pay, not later than seven (7) Business Days prior to the date           required
for payment therein, the amount of any outstanding invoices for the           purchase of
perishable agricultural commodities (as defined in PACA) which is           required to
be paid within thirty (30) days of Borrower’s acceptance of           such
commodities unless Borrower has obtained from the Farm Products Seller of           such
commodities a waiver of its rights under PACA in form and substance           acceptable
to each Agent; provided, however, that in the event that any such           invoice
requires payment upon delivery, payment shall be made on such date of           delivery.
Borrower acknowledges that Administrative Agent shall establish a           reserve
against the Borrowing Base in the amount of, at any given time, all           accounts
payable to sellers of perishable agricultural commodities with terms of           thirty
(30) days (after Borrower’s receipt and acceptance of such           commodities) or
less, unless Borrower has obtained from any such seller a waiver           of its rights
under PACA, in form and substance acceptable to each Agent.           Borrower shall at
all times comply with all existing and future Food Security           Act Notices during
their periods of effectiveness under the Food Security Act,           including, without
limitation, directions to make payments to the Farm Products           Seller by issuing
payment instruments directly to the secured party with respect           to any assets of
the Farm Products Seller or jointly payable to the Farm           Products Seller and any
secured party with respect to the assets of such Farm           Products Seller, as
specified in the Food Security Act Notice, so as to           terminate or release the
security interest in any farm products maintained by           such Farm Products Seller
or any secured party with respect to the assets of           such Farm Products Seller
under the Food Security Act.  

        (b)                 Borrower
shall take all other actions as may be reasonably required, if any, to           ensure
that any perishable agricultural commodity (in whatever form) or other           Farm
Products are purchased free and clear of any security interest, Lien, trust           or
other claim in favor of any Farm Products Seller or any secured party with
          respect to the assets of any Farm Products Seller, including, without
          limitation, registration with all states which have established central filing
          systems as contemplated under the Food Security Act.  

        (c)                 Borrower
shall notify each Agent in writing within three (3) Business Days after           receipt
by Borrower of any Food Security Act Notice or amendment to a previous           Food
Security Act Notice and including any notice from any Farm Products Seller           of
the intention of such Farm Products Seller to preserve the benefits of any
          trust applicable to any assets of Borrower established in favor of such Farm
          Products Seller or other Person under the provisions of PACA or any local law,
          and within such three (3) Business Days, Borrower shall provide each Agent with
          a true, correct and complete copy of such Food Security Act Notice or amendment
          or other notice, as the case may be, and including any master lists of
effective           financing statements delivered to Borrower pursuant to the Food
Security Act.           Borrower shall, upon any Agent’s request, at any time and
from time to           time, furnish such Agent with a true, correct and complete list of
Persons from           whom Borrower or any Subsidiary purchases any perishable
agricultural commodity           or other Farm Products and the outstanding amounts owed
by Borrower or any other           Subsidiary to such Person.  

In the event Borrower receives a Food
Security Act Notice, Borrower shall pay the related invoice within one (1) Business Day of
receipt of such Food Security Act Notice and notify each Agent of such receipt; provided,
however, that such invoice may remain unpaid if, and only so long as (i) appropriate legal
or administrative action has been commenced in good faith and is being diligently pursued
or defended by Borrower, (ii) adequate reserves with respect to such contest are
maintained on the books of Borrower, in accordance with GAAP, (iii) the ability of the
vendor to pursue any fights or enforce any Liens or trusts provided under PACA has been
stayed or otherwise legally prohibited during the pendency of such action, (iv)
Administrative Agent shall have established a Reserve against the Borrowing Base in an
amount at least equal to the amount claimed to be due by such vendor under the relevant
invoice (but without duplication of any Reserve established under Section 6.14(a)) and (v)
Borrower shall promptly pay or discharge such contested invoice and all additional
charges, interest, penalties and expenses, if any, and shall deliver to each Agent
evidence reasonably acceptable to each Agent of such payment, if such contest is
terminated or discontinued adversely to Borrower or the conditions set forth in this
Section 6.14(c) are no longer met, and (vi) neither Agent has advised Borrower in writing
that such Agent reasonably believes that nonpayment thereof could have or result in a
Material Adverse Change. 

-77- 

    6.15.    Disclosure
Updates. Promptly and in no event later than           three (3) Business
Days after obtaining knowledge thereof, (a) notify each Agent           if any written
information, exhibit, or report furnished to the Lender Group           contained any
untrue statement of a material fact or omitted to state any           material fact
necessary to make the statements contained therein not misleading           in light of
the circumstances in which made, and (b) correct any defect or error           that may
be discovered therein or in any Loan Document or in the execution,
          acknowledgement, filing, or recordation thereof.  

    6.16.    Additional
Mortgages. With respect to all Real Property           owned by the
Borrower or any of its Subsidiaries that are subject to a Lien in           favor of
either Equitable or Wood County Bank and identified on Schedule R-2,           after such
Lien is released or terminated, promptly and in any event no later           than 30 days
after such release or termination, deliver to Collateral Agent (i)           Mortgages
with respect to each parcel composing such Real Property, (ii)           mortgagee title
insurance policies (or marked commitments to issue the same) for           such Real
Property issued by a title insurance company satisfactory to           Collateral Agent
in amounts satisfactory to Collateral Agent assuring Collateral           Agent that the
Mortgages on such Real Property are valid and enforceable first           priority
mortgage Liens on such Real Property free and clear of all Liens except
          Permitted Liens, and the mortgage policies otherwise shall be in form and
          substance reasonably satisfactory to Collateral Agent, and (iii) a legal
opinion           from counsel, in form and substance satisfactory to Collateral Agent,
with           respect to the Mortgages on such Real Property.  

    6.17.    Special
Dividend. Proceeds of the Term Loan and the B           Advance made on
the Closing Date shall be deposited in a blocked account, which           shall be under
the dominion and control of the Collateral Agent and subject to a           control
agreement satisfactory to the Collateral Agent, and shall not be made           available
to Borrower unless Collateral Agent receives a certificate by an           Authorized
Person of Borrower, certifying that (i) such amounts are being used           for the
Special Dividend and Borrower will be paying the Special Dividend within           one
(1) Business Day of receiving such amounts and (ii) Borrower has repaid
          $5,000,000 to Equitable for application to any Indebtedness owed to Equitable.
          Collateral Agent agrees and acknowledges that following the receipt of such
          certificate, irrespective of any conflicts clause in such control agreement, it
          shall cause the securities intermediary to make available to Borrower all such
          amounts deposited in the blocked account described in the preceding sentence.
          Borrower agrees and acknowledges that the proceeds of the Term Loan and the B
          Advance made available to Borrower pursuant to this Section 6.17 shall
be           used by Borrower for the Special Dividend.  

    6.18.    Nestle
USA, Inc. Promptly and in any event no later than 45           days
following the Closing Date, take all commercially available actions to           remove
the financing statement filed with the Wisconsin Department of Financial
          Institutions on January 16, 2001, listing Nestle USA, Inc., as secured party,
          and Borrower, as debtor.  

-78- 

    6.19.    Equitable. Prior
to the payment of the Special Dividend,           Borrower shall pay $5,000,000 to
Equitable for application to any Indebtedness           owed to Equitable.  

	7. 	NEGATIVE
COVENANTS.

        Borrower
covenants and agrees that, so long as any credit hereunder shall be available and until
full and final payment of the Obligations, Borrower will not and will not permit any of
its Subsidiaries to do any of the following: 

    7.1.    Indebtedness.
Create, incur, assume, permit, guarantee, or           otherwise become or remain,
directly or indirectly, liable with respect to any           Indebtedness, except:  

        (a)                 Indebtedness
evidenced by this Agreement and the other Loan Documents, together           with
Indebtedness owed to Underlying Issuers with respect to Underlying Letters           of
Credit,  

        (b)                 Indebtedness
set forth on Schedule 5.20,  

        (c)                 Permitted
Purchase Money Indebtedness, and  

        (d)                 refinancings,
renewals, or extensions of Indebtedness permitted under clauses           (b) and (c) of
this Section 7.1 (and continuance or renewal of any           Permitted Liens
associated therewith) so long as: (i) the terms and conditions           of such
refinancings, renewals, or extensions do not, in Collateral Agent’s
          judgment, materially impair the prospects of repayment of the Obligations by
          Borrower or materially impair Borrower’s creditworthiness, (ii) such
          refinancings, renewals, or extensions do not result in an increase in the
          principal amount of, or interest rate with respect to, the Indebtedness so
          refinanced, renewed, or extended, (iii) such refinancings, renewals, or
          extensions do not result in a shortening of the average weighted maturity of
the           Indebtedness so refinanced, renewed, or extended, nor are they on terms or
          conditions that, taken as a whole, are materially more burdensome or
restrictive           to Borrower, and (iv) if the Indebtedness that is refinanced,
renewed, or           extended was subordinated in right of payment to the Obligations,
then the terms           and conditions of the refinancing, renewal, or extension
Indebtedness must           include subordination terms and conditions that are at least
as favorable to the           Lender Group as those that were applicable to the
refinanced, renewed, or           extended Indebtedness.  

    7.2.    Liens.
Create, incur, assume, or permit to exist, directly           or indirectly, any Lien on
or with respect to any of its assets, of any kind,           whether now owned or
hereafter acquired, or any income or profits therefrom,           except for Permitted
Liens (including Liens that are replacements of Permitted           Liens to the extent
that the original Indebtedness is refinanced, renewed, or           extended under Section
7.1(d) and so long as the replacement Liens only           encumber those assets that
secured the refinanced, renewed, or extended           Indebtedness).  

    7.3.    Restrictions
on Fundamental Changes.  

        (a)                 Enter
into any merger, consolidation, reorganization, or recapitalization, or
          reclassify its Stock.  

-79- 

        (b)                 Other
than the sale of W.S.C. Water Management Corp. in connection with the sale           of
the bogs pursuant to the Ocean Spray Option Agreement, liquidate, wind up, or
          dissolve itself (or suffer any liquidation or dissolution providedthat Borrower
may, so long as (i) no Event of Default has occurred or           would directly result,
(ii) each Agent has received not less than thirty (30)           days advance written
notice and (iii) no Material Adverse Change would result,           cause one or more of
its wholly-owned Subsidiaries to enter into any merger or           consolidation with
any other wholly-owned Subsidiary of Borrower, or to           liquidate, windup or
dissolve.  

        (c)                 Except
for sales of property pursuant to the Ocean Spray Option Agreement,           convey,
sell, lease, license, assign, transfer, or otherwise dispose of, in one
          transaction or a series of transactions, all or any substantial part of its
          assets, including any of the brand names Northland, Seneca, and Tree Sweet,
          other than sales of Inventory in the ordinary course of business or as
otherwise           expressly permitted under this Agreement.  

    7.4.    Disposal
of Assets. Other than Permitted Dispositions,           convey, sell,
lease, license, assign, transfer, or otherwise dispose of any           Collateral,
including, without limitation, any of the brand names Northland,           Seneca, or
Tree Sweet or the business conducted or operated under any such name,           or any
other assets constituting Collateral or any other assets of Borrower or           its
Subsidiaries if, with respect to other assets of Borrower or its           Subsidiaries
not constituting Collateral, such action would result in a Material           Adverse
Change.  

    7.5.    Change
Name. Change Borrower’s legal name, FEIN,           corporate
structure, or identity; provided, however, that Borrower           may
change its name upon at least 30 days prior written notice to each Agent of
          such change and so long as, at the time of such written notification, Borrower
          provides any financing statements or fixture filings necessary to perfect and
          continue perfected the Collateral Agent’s Liens.  

    7.6.    Guarantee.
Except as expressly set forth on Schedule 5.20,           guarantee or otherwise become
in any way liable with respect to the obligations           of any third Person except by
endorsement of instruments or items of payment for           deposit to the account of
Borrower or which are transmitted or turned over to           Collateral Agent.  

    7.7.    Nature
of Business. Make any change in the principal nature           of its
business, except as contemplated by the Toll Processing Agreement and the           Ocean
Spray Option Agreement.  

    7.8.    Prepayments
and Amendments.  

        (a)                 Except
in connection with a refinancing permitted by Section 7.1(d),           prepay,
redeem, defease, purchase, or otherwise acquire any Indebtedness of           Borrower,
other than the Obligations in accordance with this Agreement, except           for
mandatory prepayments of Indebtedness owed by Borrower to Equitable or to           Wood
County Bank in connection with the sale or disposition of property upon           which
Equitable or Wood County Bank, respectively, has a perfected Lien as of           the
date hereof,  

        (b)                 Except
in connection with a refinancing permitted by Section 7.1(d),           directly
or indirectly, amend, modify, alter, increase, or change any of the           terms or
conditions of any agreement, instrument, document, indenture, or other           writing
evidencing or concerning Indebtedness permitted under Sections           7.1(b) or
(c), except for amendments to the loan agreement between           Borrower and
Equitable or Borrower and Wood County Bank, to permit the           disposition or sale
of property upon which Equitable or Wood County Bank,           respectively, has a
perfected Lien as of the date hereof, and  

-80- 

        (c)                 Directly
or indirectly, amend, modify, alter, or change any of the terms or           conditions
of the Ocean Spray Toll Processing Agreement or the Ocean Spray           Option
Agreement in a manner adversely affecting the rights of Lender or any           Agent.  

    7.9.    Change
of Control. Cause, permit, or suffer, directly or           indirectly,
any Change of Control.  

    7.10.    Consignments.
Consign any Inventory constituting Collateral           or sell any Inventory
constituting Collateral on bill and hold, sale or return,           sale on approval, or
other conditional terms of sale.  

    7.11.    Distributions.
Make any distribution or declare or pay any           dividends (in cash or other
property, other than common Stock) on, or purchase,           acquire, redeem, or retire
any of Borrower’s Stock, of any class, whether           now or hereafter
outstanding, provided that (i) the Borrower may declare           and pay the
Special Dividend, (ii) following a sale or disposition of property           or assets
pursuant to the Ocean Spray Option Agreement, so long as (A) no Event           of
Default has occurred and is continuing both immediately before and after           giving
effect to such payment, (B) Borrower has Excess Availability of not less           than
$5,000,000 immediately after giving effect to such payment, after the           payment
of any amounts required to be paid to Equitable and Wood County Bank           from the
proceeds of the sale of property or assets that was subject to a           perfected
Permitted Lien in favor of Equitable or Wood County Bank as the case           may be,
and (C) the Borrower has delivered projections, in form and substance
          substantially the same as the projections required by Section 6.3 (c)          hereof,
showing compliance, on a pro-forma basis after giving effect to both the           sale
and disposition and the payment, with the financial covenants in Section           7.20 hereof
for the following twelve months, the Borrower may declare and           pay a dividend
(the “Special Asset-Sale Dividend”), the total           amount of such
Special Asset-Sale Dividends made not to exceed an aggregate           amount of
$5,000,000), (iii) so long as (A) no Event of Default has occurred and           is
continuing both immediately before and after giving effect to such payment,           (B)
Borrower has Excess Availability of not less than $3,000,000 immediately           after
giving effect to such payment, and (C) the outstanding unpaid principal           amount
of the A Advances, B Advances, and Term Loan is less than $10,000,000,           the
Borrower may pay an aggregate amount not to exceed $1,000,000 to the           Borrower’s
series B preferred Stock to the extent required by the           Borrower’s articles
of incorporation, and (iv) so long as (A) no Event of           Default exists or has
occurred and is continuing both immediately before and           after giving effect to
such payment, (B) Borrower has Excess Availability of not           less than $350,000
immediately after giving effect to such payment, and (C) each           Agent receives
not less than twenty (20) days advance written notice, Borrower           may redeem
employee-owned Stock of the Borrower, in an aggregate amount not to           exceed
$350,000 in any Fiscal Year, upon such employee’s termination of
          employment or death.  

    7.12.    Accounting
Methods. Modify or change its method of           accounting (other than
as may be required to conform to GAAP) or enter into,           modify, or terminate any
agreement currently existing, or at any time hereafter           entered into with any
third party accounting firm or service bureau for the           preparation or storage of
Borrower’s accounting records without said           accounting firm or service
bureau agreeing to provide each Agent information           regarding the Collateral or
Borrower’s financial condition.  

-81- 

    7.13.    Investments.
Except for Permitted Investments, directly or           indirectly, make or acquire any
Investment or incur any liabilities (including           contingent obligations) for or
in connection with any Investment; provided, however, that Borrower shall
not have Permitted           Investments (other than in the Cash Management Accounts,
advances made in           connection with purchase of goods and services in the ordinary
course of           business, Stock of Subsidiaries and Stock of Beaver Creek Cranberry
Grower           Assoc. Inc.) in excess of $100,000 outstanding at any one time unless
Borrower           and the applicable securities intermediary or bank have entered into
Control           Agreements governing such Permitted Investments, as Collateral Agent
shall           determine in its Permitted Discretion, to perfect (and further establish)
the           Collateral Agent’s Liens in such Permitted Investments.  

    7.14.    Transactions
with Affiliates. Directly or indirectly enter           into or permit to
exist any transaction with any Affiliate of Borrower, except           for transactions
that are in the ordinary course of Borrower’s business,           upon fair and
reasonable terms, that are fully disclosed to each Agent, and that           are no less
favorable to Borrower than would be obtained in an arm’s length
          transaction with a non-Affiliate, providedthat, (i) the Borrower
          may declare and pay the Special Dividend, (ii) subject to Section 7.11,
          the Borrower may declare and pay the Special Asset-Sale Dividend, (iii) so long
          as (A) no Event of Default exists or has occurred and is continuing both
          immediately before and after giving effect to such payment, (B) Borrower has
          Excess Availability of not less than $3,000,000 immediately after giving effect
          to such payment, and (C the outstanding unpaid principal amount of the A
          Advances, B Advances, and Term Loan is less than $10,000,000, the Borrower may
          pay an aggregate amount not to exceed $1,000,000, to the Borrower’s series
          B preferred Stock to the extent required by the Borrower’s articles of
          incorporation, and (iv) so long as (A) no Event of Default under Section 7.20
of           this Agreement has occurred or would result from such payment, and (B)
Borrower           has Excess Availability of not less than $500,000 immediately after
giving           effect to such payment, Borrower may pay regularly scheduled fees and
out of           pocket expenses payable under the Sun Management Agreement as in effect
on the           Closing Date.  

    7.15.    Suspension.
Other than as contemplated by the Toll           Processing Agreement and the Ocean Spray
Option Agreement, suspend or go out of           a substantial portion of its business.  

    7.16.    [Intentionally
Omitted] 

    7.17.    Use
of Proceeds. Use the proceeds of the Advances and the           Term Loan
for any purpose other than (i) repay the WFF Fee Note in the original           principal
amount of $2,500,000, (ii) repay Equitable in the amount of           $5,000,000, (iii)
to pay the Special Dividend to the shareholders of the           Borrower, (iv) for
general working capital purposes of the Borrower, and (v) to           pay fees and
expenses related to this Agreement.  

    7.18.    Change
in Location of Chief Executive Office; Inventory and Equipment with           Bailees.
Other than to 2321 W. Grand Avenue, Wisconsin Rapids,           Wisconsin, relocate its
chief executive office to a new location without           providing 30 days prior
written notification thereof to Agents and so long as,           at the time of such
written notification, Borrower provides any financing           statements or fixture
filings necessary to perfect and continue perfected the           Collateral Agent’s
Liens and also provides to Collateral Agent a Collateral           Access Agreement with
respect to such new location. The Inventory and Equipment           constituting
Collateral shall not at any time now or hereafter be stored with a           bailee,
warehouseman, or similar party without Collateral Agent’s prior           written
consent.  

-82- 

    7.19.    Securities
Accounts. Establish or maintain any Securities           Account unless
Collateral Agent shall have received a Control Agreement in           respect of such
Securities Account. Borrower shall not transfer assets out of           any Securities
Account; provided, however, that, so long as no Event of           Default has
occurred and is continuing or would result therefrom, Borrower may           use such
assets (and the proceeds thereof) to the extent not prohibited by this
          Agreement.  

    7.20.    Financial
Covenants.  

        (a)       Minimum
EBITDA. Fail to maintain EBITDA, measured on a fiscal month-end           basis, of
not less than the required amount set forth in the following table for           the
applicable period set forth opposite thereto;  

	

	Applicable Amount	          Applicable Period
	

	$                        11,352,102	Twelve consecutive month period ending
	 	November 30, 2004
	

	 	Twelve consecutive month period ending
	$                         9,292,275	December 31, 2004
	

	 	Twelve consecutive month period ending
	$                        10,657,798	January 31, 2005
	

	$                         9,867,856	Twelve consecutive month period ending
	 	February 28, 2005
	

	$                         9,718,324	Twelve consecutive month period ending March
	 	31, 2005
	

	$                         9,160,202	Twelve consecutive month period ending April
	 	30, 2005
	

	$                         8,695,895	Twelve consecutive month period ending May
	 	31, 2005
	

	$                         6,788,703	Twelve consecutive month period ending June
	 	30, 2005
	

	$                         6,814,500	Twelve consecutive month period ending July
	 	31, 2005
	

	$                         6,520,156	Twelve consecutive month period ending August
	 	31, 2005
	

	$                         6,303,093	Twelve consecutive month period ending
	 	September 30, 2005
	

	$                         6,531,201	Twelve consecutive month period ending
	 	October 31, 2005
	

-83- 

	

	Applicable Amount	          Applicable Period
	

	$                         6,334,203	Twelve consecutive month period ending
	 	November 30, 2005
	

	$                         6,570,038	Twelve consecutive month period ending
	 	December 31, 2005
	

	$                         6,683,469	Twelve consecutive month period ending
	 	January 31, 2006
	

	$                         7,443,686	Twelve consecutive month period ending
	 	February 28, 2006
	

	$                         7,629,486	Twelve consecutive month period ending March
	 	31, 2006
	

	$                         7,753,169	Twelve consecutive month period ending April
	 	30, 2006
	

	$                         8,069,196	Twelve consecutive month period ending May
	 	31, 2006
	

	$                         8,203,381	Twelve consecutive month period ending June
	 	30, 2006
	

	$                         8,736,283	Twelve consecutive month period ending July
	 	31, 2006
	

	$                         9,270,816	Twelve consecutive month period ending August
	 	31, 2006
	

	$                         9,497,668	Twelve consecutive month period ending
	 	September 30, 2006
	

	$                         8,350,899	Twelve consecutive month period ending
	 	October 31, 2006
	

	$                         7,085,963	Twelve consecutive month period ending
	 	November 30, 2006
	

	$                         7,255,503	Twelve consecutive month period ending
	 	December 31, 2006
	

	$                         7,607,352	Twelve consecutive month period ending
	 	January 31, 2007
	

	$                         7,621,949	Twelve consecutive month period ending
	 	February 28, 2007
	

	$                         8,148,873	Twelve consecutive month period ending March
	 	31, 2007
	

	$                         8,399,444	Twelve consecutive month period ending April
	 	30, 2007
	

	$                         9,536,920	Twelve consecutive month period ending May
	 	31, 2007
	

	$                        10,648,652	Twelve consecutive month period ending June
	 	30, 2007
	

	$                        10,867,552	Twelve consecutive month period ending July
	 	31, 2007
	

	$                        11,353,712	Twelve consecutive month period ending August
	 	31, 2007
	

-84- 

        (b)       
Leverage Ratio.  

	 	        (i)    
               Permit the ratio of Indebtedness less cash of Borrower (as of the
dates                set forth below) not subject to any Lien (other than any Lien in
favor of the                Collateral Agent or a customary bankers’ lien or similar
security interest)                to EBITDA of Borrower as of the end of a period of
twelve (12) consecutive                fiscal months of Borrower for which the last month
ends on such date set forth                below to be greater than the applicable ratio
set forth below:  

	

	Leverage Ratio	          Applicable Period
	

	3.00:1	Twelve consecutive month period ending
	 	November 30, 2004
	

	 	Twelve consecutive month period ending
	3.00:1	December 31, 2004
	

	 	Twelve consecutive month period ending
	3.00:1	January 31, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	February 28, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	March 31, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	April 30, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	May 31, 2005
	

	3.75:1	Twelve consecutive month period ending
	 	June 30, 2005
	

	3.75:1	Twelve consecutive month period ending
	 	July 31, 2005
	

	3.50:1	Twelve consecutive month period ending
	 	August 31, 2005
	

	3.50:1	Twelve consecutive month period ending
	 	September 30, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	October 31, 2005
	

	3.00:1	Twelve consecutive month period ending
	 	November 30, 2005
	

	2.50:1	Twelve consecutive month period ending
	 	December 31, 2005
	

-85- 

	

	Leverage Ratio	          Applicable Period
	

	2.50:1	Twelve consecutive month period ending
	 	January 31, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	February 28, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	March 31, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	April 30, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	May 31, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	June 30, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	July 31, 2006
	

	2.50:1	Twelve consecutive month period ending
	 	August 31, 2006
	

	2.00:1	Twelve consecutive month period ending
	 	September 30, 2006
	

	2.00:1	Twelve consecutive month period ending
	 	October 31, 2006
	

	2.00:1	Twelve consecutive month period ending
	 	November 30, 2006
	

	2.00:1	Twelve consecutive month period ending
	 	December 31, 2006
	

	2.00:1	Twelve consecutive month period ending
	 	January 31, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	February 28, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	March 31, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	April 30, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	May 31, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	June 30, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	July 31, 2007
	

	2.00:1	Twelve consecutive month period ending
	 	August 31, 2007
	

        (c)       Capital
Expenditures. Make Capital Expenditures in any           fiscal year in
excess of the amount of $1,000,000 for each Fiscal Year. So long           as, as of the
end of any Fiscal Year, no Event of Default then exists or has           occurred and is
continuing, the amount of Capital Expenditures permitted in such           Fiscal Year
which remains unused may be added to the permitted amount of Capital
          Expenditures in the immediately following Fiscal Year. In the event that
          Borrower requests an increase to the amount of Capital Expenditures permitted
          under this Section, and so long as no Event of Default has then occurred the
          Agents and Required Lenders shall not charge an amendment or similar fee in
          connection with any increase in such amount agreed to by the Required Lenders,
providedthat each Agent and Required Lenders shall have no
          commitment or obligation whatsoever, of any kind or nature, to agree to any
such           increase.  

-86- 

	8. 	EVENTS
OF DEFAULT.

        Any
one or more of the following events shall constitute an event of default (each, an
“Event of Default”) under this Agreement: 

         8.1.    
          If Borrower or any Guarantor which is a Material Subsidiary fails to pay when
          due and payable, or when declared due and payable, all or any portion of the
          Obligations (whether of principal, interest (including any interest which, but
          for the provisions of the Bankruptcy Code, would have accrued on such amounts),
          fees and charges due the Lender Group, reimbursement of Lender Group Expenses,
          or other amounts constituting Obligations); 

         8.2.    
          If Borrower or any Guarantor which is a Material Subsidiary fails to perform,
          keep, or observe: (a) any term, provision, condition, covenant, or agreement
          contained in Section 6.2 or Section 6.3 and such failure continues for a period
          of five (5) days after the date of such failure; provided that a
          single failure, for up to five (5) days, in any fiscal quarter to perform, keep
          or observe any one of the daily and weekly reporting requirements contained in
          Section 6.2 shall not, so long as no other Event of Default then exists or has
          occurred and is continuing, constitute an Event of Default; (b) any term,
          provision, condition, covenant or agreement contained in Sections 6.4, 6.5, 6.6,
          6.8 or 6.10 and such failure continues for a period of fifteen (15) days after
          the date of such failure or (c) any other term, provision, condition, covenant
          or agreement contained in this Agreement or in any of the other Loan Documents; 

         8.3.    
          If any material portion of Borrower’s or any of its material
          Subsidiaries’ assets is attached, seized, subjected to a writ or distress
          warrant, levied upon, or comes into the possession of any third Person (other
          than in the possession or control of Ocean Spray pursuant to the Ocean Spray
          Toll Processing Agreement); 

         8.4.    
          If an Insolvency Proceeding is commenced by Borrower or any of its Material
          Subsidiaries; 

         8.5.    
          If an Insolvency Proceeding is commenced against Borrower, or any of its
          Material Subsidiaries, and any of the following events occur: (a) Borrower or
          the Subsidiary consents to the institution of such Insolvency Proceeding against
          it, (b) the petition commencing the Insolvency Proceeding is not timely
          controverted, (c) the petition commencing the Insolvency Proceeding is not
          dismissed within 45 calendar days of the date of the filing thereof;
          provided, however, that, during the pendency of such period, each
          Agent (including any successor agent) and each other member of the Lender Group
          shall be relieved of their obligations to extend credit hereunder, (d) an
          interim trustee is appointed to take possession of all or any substantial
          portion of the properties or assets of, or to operate all or any substantial
          portion of the business of, Borrower or any of its Subsidiaries, or (e) an order
          for relief shall have been entered therein; 

-87- 

         8.6.    
          If Borrower or any of its Material Subsidiaries is enjoined, restrained, or in
          any way prevented by court order from continuing to conduct all or any material
          part of its business affairs; 

         8.7.    
          If a notice of Lien, levy, or assessment is filed of record with respect to any
          of Borrower’s or any of its Material Subsidiaries’ assets by the
          United States, or any department, agency, or instrumentality thereof, or by any
          state, county, municipal, or governmental agency, or if any taxes or debts owing
          at any time hereafter to any one or more of such entities becomes a Lien,
          whether choate or otherwise, upon any of Borrower’s or any of its
          Subsidiaries’ assets and the same is not paid before such payment is
          delinquent; 

         8.8.    
          If a judgment or other claim in excess of $50,000 becomes a Lien or encumbrance
          upon any material portion of Borrower’s or any of its Subsidiaries’
          assets; 

         8.9.    
          If there is a default in any material agreement, other than the Ocean Spray
          Documents, to which Borrower or any of its Subsidiaries is a party and such
          default (a) occurs at the final maturity of the obligations thereunder, or (b)
          results in a right by the other party thereto, irrespective of whether
          exercised, to accelerate the maturity of Borrower’s or its
          Subsidiaries’ obligations thereunder, to terminate such agreement, or to
          refuse to renew such agreement pursuant to an automatic renewal right therein; 

         8.10.    
          If Borrower or any of its Subsidiaries makes any payment on account of
          Indebtedness that has been contractually subordinated in right of payment to the
          payment of the Obligations, except to the extent such payment is permitted by
          the terms of the subordination provisions applicable to such Indebtedness; 

         8.11.    
          If any misstatement or misrepresentation exists now or hereafter in any
          warranty, representation, statement, or Record made to the Lender Group by
          Borrower, its Subsidiaries, or any officer, employee, agent, or director of
          Borrower or any of its Subsidiaries; 

         8.12.    
          The occurrence of (a) with respect to the Ocean Spray Toll Processing Agreement
          (i) the termination of such agreement, (ii) any assignment by Borrower of such
          agreement, (iii) any assignment by Ocean Spray of such agreement, which
          assignment could reasonably be expected to result in a Material Adverse Change,
          (iv) a breach of any representation or warranty or failure to perform any
          obligation under such agreement by Northland, and Ocean Spray provides Northland
          with a written notice to cure such breach or such failure and such breach or
          failure is not cured within 50 days or with respect to any nonpayment is not
          cured within 20 days (unless such nonpayment is disputed in good faith by
          Northland), or (v) a breach of any representation or warranty or failure to
          perform any obligation under such agreement by Ocean Spray, and such breach or
          failure could reasonably be expected to result in a Material Adverse Change, or
          (b) with respect to any Ocean Spray Document other than the Ocean Spray Toll
          Processing Agreement, a default, breach or failure by any party thereto to
          perform any obligation under such agreement, and such default, breach or failure
          could reasonably be expected to result in a Material Adverse Change. 

-88- 

         8.13.    
          If the obligation of a Guarantor under any Guaranty is limited or terminated by
          operation of law or by Guarantor thereunder, except to the extent such
          obligation is limited or terminated by operation of law upon a merger,
          liquidation or dissolution expressly permitted under this Agreement; 

         8.14.    
          If this Agreement or any other Loan Document that purports to create a Lien,
          shall, for any reason, fail or cease to create a valid and perfected and, except
          to the extent permitted by the terms hereof or thereof, first priority Lien on
          or security interest in the Collateral covered hereby or thereby; or 

         8.15.    
          Any provision of any Loan Document shall at any time for any reason be declared
          to be null and void, or the validity or enforceability thereof shall be
          contested by Borrower, or a proceeding shall be commenced by Borrower or any
          Guarantor which is a Material Subsidiary, or by any Governmental Authority
          having jurisdiction over Borrower, seeking to establish the invalidity or
          unenforceability thereof, or Borrower or any Guarantor which is a Material
          Subsidiary shall deny that Borrower or such Guarantor has any liability or
          obligation purported to be created under any Loan Document. 

	9.  	THE
LENDER GROUP’S RIGHTS AND REMEDIES. 

    9.1.    Rights
and Remedies. Upon the occurrence, and during the
               continuation, of an Event of Default, the Required Lenders (at their
election                but without notice of their election and without demand) may
authorize and                instruct Collateral Agent to do any one or more of the
following on behalf of                the Lender Group (and Collateral Agent, acting upon
the instructions of the                Required Lenders, shall do the same on behalf of
the Lender Group), all of which                are authorized by Borrower:  

        (a)    
               Declare all Obligations, whether evidenced by this Agreement, by any of
the                other Loan Documents, or otherwise, immediately due and payable;  

        (b)    
               Cease advancing money or extending credit to or for the benefit of
Borrower                under this Agreement, under any of the Loan Documents, or under
any other                agreement between Borrower and the Lender Group;  

        (c)    
               Terminate this Agreement and any of the other Loan Documents as to any
future                liability or obligation of the Lender Group, but without affecting
any of the                Collateral Agent’s Liens in the Collateral and without
affecting the                Obligations;  

        (d)    
               Settle or adjust disputes and claims directly with Account Debtors for
amounts                and upon terms which Collateral Agent considers advisable, and in
such cases,                Administrative Agent will credit Borrower’s Loan Account
with only the net                amounts received by Administrative Agent in payment of
such disputed Accounts                after deducting all Lender Group Expenses incurred
or expended in connection                therewith;  

-89- 

        (e)    
               Cause Borrower to hold all returned Inventory in trust for the Lender
Group,                segregate all returned Inventory from all other assets of Borrower
or in                Borrower’s possession and conspicuously label said returned
Inventory as                the property of the Lender Group;  

        (f)    
               Without notice to or demand upon Borrower, make such payments and do such
acts                as Collateral Agent considers necessary or reasonable to protect its
security                interests in the Collateral. Borrower agrees to assemble Borrower’s
               Personal Property Collateral if Collateral Agent so requires, and to make
               Borrower’s Personal Property Collateral available to Collateral Agent
at a                place that Collateral Agent may designate which is reasonably
convenient to both                parties. Borrower authorizes Collateral Agent to enter
the premises where                Borrower’s Personal Property Collateral is
located, to take and maintain                possession of Borrower’s Personal
Property Collateral, or any part of it,                and to pay, purchase, contest, or
compromise any Lien that in Collateral                Agent’s determination appears
to conflict with the Collateral Agent’s                Liens and to pay all expenses
incurred in connection therewith and to charge                Borrower’s Loan
Account therefor. With respect to any of Borrower’s                owned or leased
premises, Borrower hereby grants Collateral Agent a license to                enter into
possession of such premises and to occupy the same, without charge,                in
order to exercise any of the Lender Group’s rights or remedies provided
               herein, at law, in equity, or otherwise;  

        (g)    
               Without notice to Borrower (such notice being expressly waived), and
without                constituting a retention of any collateral in satisfaction of an
obligation                (within the meaning of the Code), set off and apply to the
Obligations any and                all (i) balances and deposits of Borrower held by the
Lender Group (including                any amounts received in the Cash Management
Accounts), or (ii) Indebtedness at                any time owing to or for the credit or
the account of Borrower held by the                Lender Group;  

        (h)    
               Hold, as cash collateral, any and all balances and deposits of Borrower
held by                the Lender Group, and any amounts received in the Cash Management
Accounts, to                secure the full and final repayment of all of the
Obligations;  

        (i)    
               Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
               advertise for sale, and sell (in the manner provided for herein) Borrower’s
               Personal Property Collateral. Borrower hereby grants to Collateral Agent a
               license or other right to use, without charge, Borrower’s labels,
patents,                copyrights, trade secrets, trade names, trademarks, service
marks, and                advertising matter, or any property of a similar nature, as it
pertains to                Borrower’s Personal Property Collateral, in completing
production of,                advertising for sale, and selling any of Borrower’s
Personal Property                Collateral and Borrower’s rights under all licenses
and all franchise                agreements shall inure to the Lender Group’s
benefit;  

        (j)    
               Sell Borrower’s Personal Property Collateral at either a public or
private                sale, or both, by way of one or more contracts or transactions,
for cash or on                terms, in such manner and at such places (including Borrower’s
premises) as                Collateral Agent determines is commercially reasonable. It is
not necessary that                Borrower’s Personal Property Collateral be present
at any such sale;  

        (k)    
               Collateral Agent shall give notice of the disposition of Borrower’s
               Personal Property Collateral as follows:  

-90- 

	 	        (i)    
               Collateral Agent shall give Borrower a notice in writing of the time and
place                of public sale, or, if the sale is a private sale or some other
disposition                other than a public sale is to be made of Borrower’s
Personal Property                Collateral, the time on or after which the private sale
or other disposition is                to be made; and  

	 	        (ii)    
               The notice shall be personally delivered or mailed, postage prepaid, to
Borrower                as provided in Section 12, at least 10 days before the
earliest time of                disposition set forth in the notice; no notice needs to
be given prior to the                disposition of any portion of Borrower’s
Personal Property Collateral that                is perishable or threatens to decline
speedily in value or that is of a type                customarily sold on a recognized
market;  

        (l)       
               Collateral Agent, on behalf of the Lender Group, may credit bid and
purchase at                any public sale; and  

        (m)       
               Collateral Agent may seek the appointment of a receiver or keeper to take
               possession of all or any portion of the Borrower Collateral or to operate
same                and, to the maximum extent permitted by law, may seek the appointment
of such a                receiver without the requirement of prior notice or a hearing;  

        (n)       
               The Lender Group shall have all other rights and remedies available at law
or in                equity or pursuant to any other Loan Document; and  

        (o)       
               Any deficiency that exists after disposition of Borrower’s Personal
               Property Collateral as provided above will be paid immediately by
Borrower. Any                excess will be returned, without interest and subject to the
rights of third                Persons, by Collateral Agent to Borrower.  

    9.2.    Remedies
Cumulative. The rights and remedies of the Lender                Group
under this Agreement, the other Loan Documents, and all other agreements
               shall be cumulative. The Lender Group shall have all other rights and
remedies                not inconsistent herewith as provided under the Code, by law, or
in equity. No                exercise by the Lender Group of one right or remedy shall be
deemed an election,                and no waiver by the Lender Group of any Event of
Default shall be deemed a                continuing waiver. No delay by the Lender Group
shall constitute a waiver,                election, or acquiescence by it.  

	10.  	TAXES
AND EXPENSES.

        If
Borrower fails to pay any monies (whether taxes, assessments, insurance premiums, or, in
the case of leased properties or assets, rents or other amounts payable under such leases)
due to third Persons, or fails to make any deposits or furnish any required proof of
payment or deposit, all as required under the terms of this Agreement, then, Collateral
Agent, in its sole discretion and without prior notice to Borrower, may do any or all of
the following: (a) make payment of the same or any part thereof, (b) set up such reserves
in Borrower’s Loan Account as Collateral Agent deems necessary to protect the Lender
Group from the exposure created by such failure, or (c) in the case of the failure to
comply with Section 6.8 hereof, obtain and maintain insurance policies of the type
described in Section 6.8 and take any action with respect to such policies as
Collateral Agent deems prudent. Any such amounts paid by Collateral Agent shall constitute
Lender Group Expenses and any such payments shall not constitute an agreement by the
Lender Group to make similar payments in the future or a waiver by the Lender Group of any
Event of Default under this Agreement. Collateral Agent need not inquire as to, or contest
the validity of, any such expense, tax, or Lien and the receipt of the usual official
notice for the payment thereof shall be conclusive evidence that the same was validly due
and owing. 

-91- 

	11. 	WAIVERS;
INDEMNIFICATION.

    11.1.    Demand;
Protest. Borrower waives demand, protest, notice of           protest,
notice of default or dishonor, notice of payment and nonpayment,           nonpayment at
maturity, release, compromise, settlement, extension, or renewal           of documents,
instruments, chattel paper, and guarantees at any time held by the           Lender Group
on which Borrower may in any way be liable.  

    11.2.    The
Lender Group’s Liability for Collateral.           Borrower
hereby agrees that: (a) so long as Collateral Agent complies with its
          obligations, if any, under the Code, the Lender Group shall not in any way or
          manner be liable or responsible for: (i) the safekeeping of the Collateral,
(ii)           any loss or damage thereto occurring or arising in any manner or fashion
from           any cause, (iii) any diminution in the value thereof, or (iv) any act or
default           of any carrier, warehouseman, bailee, forwarding agency, or other
Person, and           (b) all risk of loss, damage, or destruction of the Collateral
shall be borne by           Borrower.  

    11.3.    Indemnification.
Borrower shall pay, indemnify, defend, and           hold the Agents-Related Persons, the
Lender-Related Persons with respect to each           Lender, each Participant, and each
of their respective officers, directors,           employees, agents, and
attorneys-in-fact (each, an “Indemnified           Person”) harmless (to
the fullest extent permitted by law) from and           against any and all claims,
demands, suits, actions, investigations,           proceedings, and damages, and all
reasonable attorneys fees and disbursements           and other costs and expenses
actually incurred in connection therewith (as and           when they are incurred and
irrespective of whether suit is brought), at any time           asserted against, imposed
upon, or incurred by any of them (a) in connection           with or as a result of or
related to the execution, delivery, enforcement,           performance, or administration
of this Agreement, any of the other Loan           Documents, or the transactions
contemplated hereby or thereby, and (b) with           respect to any investigation,
litigation, or proceeding related to this           Agreement, any other Loan Document,
or the use of the proceeds of the credit           provided hereunder (irrespective of
whether any Indemnified Person is a party           thereto), or any act, omission,
event, or circumstance in any manner related           thereto (all the foregoing,
collectively, the “Indemnified           Liabilities”). The foregoing to
the contrary notwithstanding, Borrower           shall have no obligation to any
Indemnified Person under this Section           11.3 with respect to any
Indemnified Liability that a court of competent           jurisdiction finally determines
to have resulted from the gross negligence or           willful misconduct of such
Indemnified Person. This provision shall survive the           termination of this
Agreement and the repayment of the Obligations. If any           Indemnified Person makes
any payment to any other Indemnified Person with           respect to an Indemnified
Liability as to which Borrower was required to           indemnify the Indemnified Person
receiving such payment, the Indemnified Person           making such payment is entitled
to be indemnified and reimbursed by Borrower           with respect thereto. WITHOUT
LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY           TO EACH INDEMNIFIED PERSON WITH
RESPECT TO INDEMNIFIED LIABILITIES WHICH IN           WHOLE OR IN PART CAUSED BY OR ARISE
OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH           INDEMNIFIED PERSON OR OF ANY OTHER
PERSON.  

-92- 

	12. 	NOTICES.

        Unless
otherwise provided in this Agreement, all notices or demands by Borrower or Agents to the
other relating to this Agreement or any other Loan Document shall be in writing and
(except for financial statements and other informational documents which may be sent by
first-class mail, postage prepaid) shall be personally delivered or sent by registered or
certified mail (postage prepaid, return receipt requested), overnight courier, electronic
mail (at such email addresses as Borrower or Agents, as applicable, may designate to each
other in accordance herewith), or telefacsimile to Borrower or Agents, as the case may be,
at its address set forth below: 

	If to Borrower:	NORTHLAND CRANBERRIES, INC.
	 	2321 W. Grand Avenue
	 	Wisconsin Rapids, Wisconsin 54495
	 	Attn: Mr. John Swendrowski
	 	Fax No. 715-422-6800
	
with copies to:	Foley & Lardner
	 	777 E. Wisconsin Avenue
	 	Milwaukee, Wisconsin 53202
	 	Attn: Patricia Lane, Esq.
	 	Fax No. 414-297-4900
	
with copies to:	Kirkland & Ellis LLP
	 	200 E. Randolph Drive
	 	Chicago, Illinois 60601
	 	Attn: Douglas Gessner, Esq.
	 	Fax No. 312-861-2200
	
 	-and-
	
 	Sun Capital Partners
	 	5200 Town Center Circle
	 	Suite 470
	 	Boca Raton, Florida 33486
	 	Attn: C. Deryl Couch
	 	General Counsel
	 	Fax No. 561-394-0540

-93- 

		
	
If to Administrative Agent:	WELLS FARGO FOOTHILL, INC.
	 	2450 Colorado Avenue
	 	Suite 3000 West
	 	Santa Monica, California 90404
	 	Attn: Business Finance Division Manager
	 	Fax No. 310-453-7413
	
  	WELLS FARGO FOOTHILL, INC.
	 	400 Northpark Town Center
	 	1000 Abernathy Road, N.E.
	 	Suite 1450
	 	Atlanta, Georgia 30328
	 	Attn: Business Finance Division Manager
	 	Fax No. 770-508-1374
	
with copies to:	OTTERBOURG, STEINDLER, HOUSTON & ROSEN, P.C.
	 	230 Park Avenue
	 	New York, New York 10169
	 	Attn: Mitchell M. Brand, Esq.
	 	Fax No. 212-682-6104
	
If to Collateral Agent:	ABLECO FINANCE LLC
	 	299 Park Avenue, Floors 21-23
	 	New York, New York 10171
	 	Attn. Eric F. Miller
	 	Fax No. 212-891-1541
	
with copies to:	SCHULTE ROTH & ZABEL LLP
	 	919 Third Avenue
	 	New York, New York 10022
	 	Attn. Frederic L. Ragucci, Esq.
	 	Fax No. 212-593-5955

        Agents
and Borrower may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other party. All notices or demands
sent in accordance with this Section 12, other than notices by Collateral Agent in
connection with enforcement rights against the Borrower Collateral under the provisions of
the Code, shall be deemed received on the earlier of the date of actual receipt or five
(5) Business Days after the deposit thereof in the mail. Borrower acknowledges and agrees
that notices sent by the Lender Group in connection with the exercise of enforcement
rights against Borrower Collateral under the provisions of the Code shall be deemed sent
when deposited in the mail or personally delivered, or, where permitted by law,
transmitted by telefacsimile or any other method set forth above. 

-94- 

	13. 	CHOICE
OF LAW AND VENUE; JURY TRIAL WAIVER.

        (a)       THE
VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY
          PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN
          DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND
THEREOF,           AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL
MATTERS           ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE
DETERMINED           UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF           NEW YORK. 

        (b)       THE
PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH           THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN           THE
STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW           YORK,
PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST           ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT COLLATERAL AGENT’S           OPTION,
IN THE COURTS OF ANY JURISDICTION WHERE COLLATERAL AGENT ELECTS TO BRING           SUCH
ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER           AND
THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY           RIGHT
EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUMNONCONVENIENS OR TO
OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT           IN ACCORDANCE WITH THIS
SECTION 13(b). 

        (c)       BORROWER
AND THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY           TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE           LOAN
DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING           CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
          STATUTORY CLAIMS. BORROWER AND THE LENDER GROUP REPRESENT THAT EACH HAS
REVIEWED           THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS           FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A
COPY OF           THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT. 

	14. 	ASSIGNMENTS
AND PARTICIPATIONS; SUCCESSORS.

    14.1.    Assignments
and Participations.  

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        (a)                 Any
Lender may assign to one or more assignees (each an           “Assignee”)
that are Eligible Transferees all, or any ratable           part of all, of the
Obligations, the Commitments and the other rights and           obligations of such
Lender hereunder and under the other Loan Documents, in a           minimum amount of
$5,000,000 (except such minimum amount shall not apply to (x)           an assignment by
any Lender to any other Lender or an Affiliate of any Lender or           any Related
Fund or (y) a group of new Lenders, each of whom is an Affiliate of           each other
or a fund or account managed by any such new Lender or an Affiliate           of such new
Lender to the extent that the aggregate amount to be assigned to all           such new
Lenders is at least $5,000,000); provided, however, that           subject
to the last sentence of Section 14.1(b), Borrower and Agents may           continue to
deal solely and directly with such Lender in connection with the           interest so
assigned to an Assignee until (i) written notice of such assignment,           together
with payment instructions, addresses, and related information with           respect to
the Assignee, have been given to each Agent by such Lender and the           Assignee,
(ii) such Lender and its Assignee have delivered to each Agent an           Assignment
and Acceptance Agreement, and (iii) the assigning Lender or Assignee           has paid
to Administrative Agent for Administrative Agent’s separate           account a
processing fee in the amount of $5,000. Anything contained herein to           the
contrary notwithstanding, the payment of any fees shall not be required and           the
Assignee need not be an Eligible Transferee if (x) such assignment is in
          connection with any merger, consolidation, sale, transfer, or other disposition
          of all or any substantial portion of the business or loan portfolio of the
          assigning Lender or (y) the assignee is a Lender or an Affiliate of a Lender or
          a Related Fund.  

        (b)                 Subject
to the last sentence of this Section 14.1(b), from and after the date           that each
Agent notifies the assigning Lender that it has received an executed           Assignment
and Acceptance Agreement and payment of the above-referenced           processing fee (if
required), (i) the Assignee thereunder shall be a party           hereto and, to the
extent that rights and obligations hereunder have been           assigned to it pursuant
to such Assignment and Acceptance Agreement, shall have           the rights and
obligations of a Lender under the Loan Documents, and (ii) the           assigning Lender
shall, to the extent that rights and obligations hereunder and           under the other
Loan Documents have been assigned by it pursuant to such           Assignment and
Acceptance Agreement, relinquish its rights (except with respect           to Section
11.3 hereof) and be released from any future obligations under           this
Agreement (and in the case of an Assignment and Acceptance Agreement           covering
all or the remaining portion of an assigning Lender’s rights and
          obligations under this Agreement and the other Loan Documents, such Lender
shall           cease to be a party hereto and thereto), and such assignment shall effect
a           novation between Borrower and the Assignee; provided, however,
          that nothing contained herein shall release any assigning Lender from such
          assigning Lender’s obligations that survive the termination of this
          Agreement, including such assigning Lender’s obligations under Article
          16 and Section 17.7 of this Agreement. Notwithstanding anything to
          the contrary contained in this Section 14.1, a Lender may assign
any           or all of its rights hereunder to an Affiliate of such Lender or a Related
Fund           without written notice of such assignment to any Agent or delivering an
executed           Assignment and Acceptance Agreement to any Agent, and without the
payment of the           above-referenced processing fee; provided, however,
that (x)           Borrower and Agents may continue to deal solely and directly with the
assigning           Lender until such Assignment and Acceptance Agreement has been
delivered to each           Agent, (y) the failure of such assigning Lender to deliver
such notice or to           deliver the Assignment and Acceptance Agreement to either
Agent or any other           Person shall not affect the legality, validity, or binding
effect of such           assignment and (z) an Assignment and Acceptance from a Lender to
an Affiliate of           such Lender or a Related Fund shall be effective as of the date
specified           therein.  

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        (c)                 By
executing and delivering an Assignment and Acceptance Agreement, the           assigning
Lender thereunder and the Assignee thereunder confirm to and agree           with each
other and the other parties hereto as follows: (1) other than as           provided in
such Assignment and Acceptance Agreement, such assigning Lender           makes no
representation or warranty and assumes no responsibility with respect           to any
statements, warranties or representations made in or in connection with           this
Agreement or the execution, legality, validity, enforceability,           genuineness,
sufficiency or value of this Agreement or any other Loan Document           furnished
pursuant hereto, (2) such assigning Lender makes no representation or           warranty
and assumes no responsibility with respect to the financial condition           of
Borrower or the performance or observance by Borrower of any of its           obligations
under this Agreement or any other Loan Document furnished pursuant           hereto, (3)
such Assignee confirms that it has received a copy of this           Agreement, together
with such other documents and information as it has deemed           appropriate to make
its own credit analysis and decision to enter into such           Assignment and
Acceptance Agreement, (4) such Assignee will, independently and           without
reliance upon any Agent, such assigning Lender or any other Lender, and           based
on such documents and information as it shall deem appropriate at the           time,
continue to make its own credit decisions in taking or not taking action           under
this Agreement, (5) such Assignee appoints and authorizes Agents to take           such
actions and to exercise such powers under this Agreement as are delegated           to
Agents, by the terms hereof, together with such powers as are reasonably
          incidental thereto, and (6) such Assignee agrees that it will perform all of
the           obligations which by the terms of this Agreement are required to be
performed by           it as a Lender.  

        (d)                 Any
Lender may at any time sell to one or more commercial banks, financial
          institutions, or any other Persons (other than Ocean Spray) (a           “Participant”)
participating interests in all or any portion of           its Obligations, the
Commitment, and the other rights and interests of that           Lender (the “Originating
Lender”) hereunder and under the other           Loan Documents; provided,
however, that (i) the Originating Lender           shall remain a “Lender” for
all purposes of this Agreement and the           other Loan Documents and the Participant
receiving the participating interest in           the Obligations, the Commitments, and
the other rights and interests of the           Originating Lender hereunder shall not
constitute a “Lender” hereunder           or under the other Loan Documents and
the Originating Lender’s obligations           under this Agreement shall remain
unchanged, (ii) the Originating Lender shall           remain solely responsible for the
performance of such obligations, (iii)           Borrower, Agents, and the Lenders shall
continue to deal solely and directly           with the Originating Lender in connection
with the Originating Lender’s           rights and obligations under this Agreement
and the other Loan Documents, (iv)           no Originating Lender shall transfer or
grant any participating interest under           which the Participant has the right to
approve any amendment to, or any consent           or waiver with respect to, this
Agreement or any other Loan Document, except to           the extent such amendment to,
or consent or waiver with respect to this           Agreement or of any other Loan
Document would (A) extend the final maturity date           of the Obligations hereunder
in which such Participant is participating, (B)           reduce the interest rate
applicable to the Obligations hereunder in which such           Participant is
participating, (C) release all or substantially all of the           Collateral or
guaranties (except to the extent expressly provided herein or in           any of the
Loan Documents) supporting the Obligations hereunder in which such           Participant
is participating, (D) postpone the payment of, or reduce the amount           of, the
interest or fees payable to such Participant through such Lender, or (E)           change
the amount or due dates of scheduled principal repayments or prepayments           or
premiums, and (v) all amounts payable by Borrower hereunder shall be           determined
as if such Lender had not sold such participation, except that, if           amounts
outstanding under this Agreement are due and unpaid, or shall have been
          declared or shall have become due and payable upon the occurrence of an Event
of           Default, each Participant shall be deemed to have the right of setoff in
respect           of its participating interest in amounts owing under this Agreement to
the same           extent as if the amount of its participating interest were owing
directly to it           as a Lender under this Agreement. The rights of any Participant
only shall be           derivative through the Originating Lender with whom such
Participant           participates and no Participant shall have any rights under this
Agreement or           the other Loan Documents or any direct rights as to the other
Lenders, Agents,           Borrower, the Collections, the Collateral, or otherwise in
respect of the           Obligations. No Participant shall have the right to participate
directly in the           making of decisions by the Lenders among themselves. The
provisions of this Section 14.1(d) are solely for the benefit of the Lender Group,
and           Borrower shall not have any rights as third party beneficiaries of any such
          provisions.  

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        (e)                 In
connection with any such assignment or participation or proposed assignment           or
participation, a Lender may disclose all documents and information which it           now
or hereafter may have relating to Borrower, the Guarantors and their           respective
businesses.  

        (f)                 Any
other provision in this Agreement notwithstanding, any Lender may at any           time
create a security interest in, or pledge, all or any portion of its rights
          under and interest in this Agreement as set forth in Section 2.15, to
any           Person in connection with a securitization transaction, or in favor of any
          Federal Reserve Bank in accordance with Regulation A of the Federal Reserve
Bank           or United States Treasury Regulation 31 CFR §203.24, and such Person
or           Federal Reserve Bank may enforce such pledge or security interest in any
manner           permitted under applicable law.  

        (g)                 The
Administrative Agent, on behalf of the Borrower, shall maintain, or cause to           be
maintained, a register (the “Register”) on which it enters           the
name of a Lender as the registered owner of each B Advance and Term Loan           held
by such Lender. Other than in connection with an assignment by a Lender of           all
or any portion of its B Advance or Term Loan to an Affiliate of such Lender           or
a Related Fund of such Lender pursuant to the last sentence of Section           14.1(b)
that is not delivered to the Agents (i) a Registered Loan (and the           Registered
Note, if any, evidencing the same) may be assigned or sold in whole           or in part
only by registration of such assignment or sale on the Register (and           each
Registered Note shall expressly so provide) and (ii) any assignment or sale           of
all or part of such Registered Loan (and the Registered Note, if any,
          evidencing the same) may be effected only by registration of such assignment or
          sale on the Register, together with the surrender of the Registered Note, if
          any, evidencing the same duly endorsed by (or accompanied by a written
          instrument of assignment or sale duly executed by) the holder of such
Registered           Note, whereupon, at the request of the designated assignee(s) or
transferee(s),           one or more new Registered Notes in the same aggregate principal
amount shall be           issued to the designated assignee(s) or transferee(s). Prior to
the registration           of assignment or sale of any Registered Loan (and the
Registered Note, if any           evidencing the same), the Administrative Agent, on
behalf of the Borrower, shall           treat the Person in whose name such Loan (and the
Registered Note, if any,           evidencing the same) is registered as the owner
thereof for the purpose of           receiving all payments thereon and for all other
purposes, notwithstanding           notice to the contrary. In the case of any assignment
by a Lender of all or any           portion of its B Advance or Term Loan to an Affiliate
of such Lender or a           Related Fund of such Lender pursuant to the last sentence
of Section 14.1(b),           and which assignment is not delivered to the Agents and
recorded in the           Register, the assigning Lender, on behalf of Borrower, shall
maintain a           comparable register.  

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        (h)                 In
the event that a Lender sells participations in the Registered Loan, such
          Lender, on behalf of borrower, shall maintain a register on which it enters the
          name of all participants in the Registered Loans held by it (the
          “Participant Register”). A Registered Loan (and the Registered
          Note, if any, evidencing the same) may be participated in whole or in part only
          by registration of such participation on the Participant Register (and each
          Registered Note shall expressly so provide). Any further participation of such
          Registered Loan (and the Registered Note, if any, evidencing the same) may be
          effected only by the registration of such participation on the Participant
          Register.  

    14.2.    Successors.
This Agreement shall bind and inure to the           benefit of the respective successors
and assigns of each of the parties hereto; provided, however, that Borrower
may not assign this Agreement or           any rights or duties hereunder without the
Lenders’ prior written consent           and any prohibited assignment shall be
absolutely void ab initio. No           consent to assignment by the Lenders shall
release any Borrower from its           Obligations. A Lender may assign this Agreement
and the other Loan Documents and           its rights and duties hereunder and thereunder
pursuant to Section 14.1          hereof and, except as expressly required
pursuant to Section 14.1 hereof,           no consent or approval by Borrower is
required in connection with any such           assignment.  

	15. 	AMENDMENTS;
WAIVERS.

    15.1.    Amendments
and Waivers. No amendment or waiver of any           provision of this
Agreement or any other Loan Document, and no consent with           respect to any
departure by Borrower therefrom, shall be effective unless the           same shall be in
writing and signed by the Required Lenders (or by Collateral           Agent at the
written request of the Required Lenders) and Borrower and then any           such waiver
or consent shall be effective only in the specific instance and for           the
specific purpose for which given; provided, however, that no           such
waiver, amendment, or consent shall, unless in writing and signed by all of           the
Lenders affected thereby and Borrower, do any of the following:  

        (a)                 increase
or extend any Commitment of any Lender,  

        (b)                 postpone
or delay any date fixed by this Agreement or any other Loan Document           for any
payment of principal, interest, fees, or other amounts due hereunder or           under
any other Loan Document,  

        (c)                 reduce
the principal of, or the rate of interest on, any loan or other extension           of
credit hereunder, or reduce any fees or other amounts payable hereunder or
          under any other Loan Document,  

        (d)                 change
the percentage of the Commitments that is required to take any action
          hereunder,  

        (e)                 amend,
modify or waive this Section or any provision of the Agreement providing           for
consent or other action by all Lenders,  

        (f)                 release
Collateral other than as permitted by Section 16.12,  

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        (g)                 change
the definition of “Required Lenders” or “Pro Rata           Share”,  

        (h)                 contractually
subordinate any of the Collateral Agent’s Liens,  

        (i)                 release
Borrower or any Guarantor from any obligation for the payment of money,           or  

        (j)                 increase
the advance rate with respect to A Advances (except for the restoration           of an
advance rate after the prior reduction thereof),  

        (k)                 amend,
modify or waive any of the provisions of the Intercreditor Agreements,  

        (l)                 change
the definition of Borrowing Base or the definitions of Eligible Accounts,
          Eligible Inventory, Reserves, Inventory Reserves, Maximum Revolver A Amount, or
          Term Loan Amount, or change Section 2.1(a) or Section 2.1(b) or any definition
          or term used in any of the foregoing definitions or Sections,  

        (m)                 amend,
modify or waive any of the provisions of Section 2.1(d), 2.2, 2.3(e)(i),
          2.3(i), 2.4(b), 2,4(d), 15.1 or 16 or change the definitions used in any such
          Sections.  

and, provided further, however, that
no amendment, waiver or consent shall, unless in writing and signed by Collateral Agent,
Administrative Agent, Issuing Lender, or Swing Lender, as applicable, affect the rights or
duties of Collateral Agent, Administrative Agent, Issuing Lender, or Swing Lender, as
applicable, under this Agreement or any other Loan Document. The foregoing
notwithstanding, any amendment, modification, waiver, consent, termination, or release of,
or with respect to, any provision of this Agreement or any other Loan Document that
relates only to the relationship of the Lender Group among themselves, and that does not
affect the rights or obligations of Borrower, shall not require consent by or the
agreement of Borrower. 

        The
Agents and the Lenders have executed a side letter agreement on the Closing Date pursuant
to which the Agents and the Lenders have agreed to certain intercreditor arrangements,
including but not limited to, certain arrangements regarding allocation of payments of the
Obligations. The rights and duties of the Agents and the Lenders with respect to such
matters, are subject to such agreement. 

    15.2.    Replacement
of Holdout Lender.  

        (a)       
               If any action to be taken by the Lender Group or any Agent hereunder
requires                the unanimous consent, authorization, or agreement of all
Lenders, and a Lender                (“Holdout Lender”) fails to give its
consent, authorization, or                agreement, then Collateral Agent, upon at least
5 Business Days prior                irrevocable notice to the Holdout Lender, may
permanently replace the Holdout                Lender with one or more substitute Lenders
(each, a “Replacement                Lender”), and the Holdout Lender shall
have no right to refuse to be                replaced hereunder. Such notice to replace
the Holdout Lender shall specify an                effective date for such replacement,
which date shall not be later than 15                Business Days after the date such
notice is given.  

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        (b)       
               Prior to the effective date of such replacement, the Holdout Lender and
each                Replacement Lender shall execute and deliver an Assignment and
Acceptance                Agreement, subject only to the Holdout Lender being repaid its
share of the                outstanding Obligations (including an assumption of its Pro
Rata Share of the                Risk Participation Liability and the payment of all fees
by or otherwise due to                such Holdout Lender as of the date of such
replacement) without any premium or                penalty of any kind whatsoever. If the
Holdout Lender shall refuse or fail to                execute and deliver any such
Assignment and Acceptance Agreement prior to the                effective date of such
replacement, the Holdout Lender shall be deemed to have                executed and
delivered such Assignment and Acceptance Agreement. The replacement                of any
Holdout Lender shall be made in accordance with the terms of Section                14.1,
provided, that, in no event shall any Lender be required to become a
               Replacement Lender. Until such time as the Replacement Lenders shall have
               acquired all of the Obligations, the Commitments, and the other rights and
               obligations of the Holdout Lender hereunder and under the other Loan
Documents,                the Holdout Lender shall remain obligated to make the Holdout
Lender’s Pro                Rata Share of Advances and to purchased a participation
in each Letter of                Credit, in an amount equal to its Pro Rata Share of the
Risk Participation                Liability of such Letter of Credit.  

    15.3.    No
Waivers; Cumulative Remedies. No failure by any Agent or
               any Lender to exercise any right, remedy, or option under this Agreement
or any                other Loan Document, or delay by any Agent or any Lender in
exercising the same,                will operate as a waiver thereof. No waiver by any
Agent or any Lender will be                effective unless it is in writing, and then
only to the extent specifically                stated. No waiver by any Agent or any
Lender on any occasion shall affect or                diminish Agents’ and each
Lender’s rights thereafter to require strict                performance by Borrower
of any provision of this Agreement. Agents’ and                each Lender’s
rights under this Agreement and the other Loan Documents will                be
cumulative and not exclusive of any other right or remedy that Agents or any
               Lender may have.  

	16.  	AGENTS;
THE LENDER GROUP.

    16.1.    Appointment
and Authorization of Agent. Each Lender hereby                designates
and appoints Collateral Agent and Administrative Agent as its
               representative under this Agreement and the other Loan Documents and each
Lender                hereby irrevocably authorizes each such Agent, to take such action
on its behalf                under the provisions of this Agreement and each other Loan
Document and to                exercise such powers and perform such duties as are
expressly delegated to each                such Agent by the terms of this Agreement or
any other Loan Document, together                with such powers as are reasonably
incidental thereto. Each Agent agrees to act                as such on the express
conditions contained in this Section 16. The                provisions of this
Section 16 are solely for the benefit of Agents and the                Lenders, and
Borrower shall have no rights as a third party beneficiary of any                of the
provisions contained herein. Any provision to the contrary contained
               elsewhere in this Agreement or in any other Loan Document notwithstanding,
               Agents shall not have any duties or responsibilities, except those
expressly set                forth herein, nor shall Agents have or be deemed to have any
fiduciary                relationship with any Lender, and no implied covenants,
functions,                responsibilities, duties, obligations or liabilities shall be
read into this                Agreement or any other Loan Document or otherwise exist
against either Agent; it                being expressly understood and agreed that the
use of the word                “Agents” is for convenience only, that
Collateral Agent and                Administrative Agent are merely the representative of
the Lenders, and only have                the contractual duties set forth herein. Except
as expressly otherwise provided                in this Agreement, Agents shall have and
may use their sole discretion with                respect to exercising or refraining
from exercising any discretionary rights or                taking or refraining from
taking any actions that such Agent expressly is                entitled to take or assert
under or pursuant to this Agreement and the other                Loan Documents. Without
limiting the generality of the foregoing, or of any                other provision of the
Loan Documents that provides rights or powers to Agents,                Lenders agree
that Collateral Agent shall have the right to exercise the                following
powers as long as this Agreement remains in effect: (a) maintain, in
               accordance with its customary business practices, ledgers and records
reflecting                the status of the Obligations, the Collateral, the Collections,
and related                matters, (b) execute or file any and all financing or similar
statements or                notices, amendments, renewals, supplements, documents,
instruments, proofs of                claim, notices and other written agreements with
respect to the Loan Documents,                (c) make Advances, for itself or on behalf
of Lenders as provided in the Loan                Documents, (d) exclusively receive,
apply, and distribute the Collections as                provided in the Loan Documents,
(e) open and maintain such bank accounts and                cash management arrangements
as Collateral Agent deems necessary and appropriate                in accordance with the
Loan Documents for the foregoing purposes with respect to                the Collateral
and the Collections, (f) perform, exercise, and enforce any and                all other
rights and remedies of the Lender Group with respect to Borrower, the
               Obligations, the Collateral, the Collections, or otherwise related to any
of                same as provided in the Loan Documents, and (g) incur and pay such
Lender Group                Expenses as Collateral Agent may deem necessary or
appropriate for the                performance and fulfillment of its functions and
powers pursuant to the Loan                Documents.  

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    16.2.    Delegation
of Duties. Agents may execute any of their                duties under
this Agreement or any other Loan Document by or through agents,                employees
or attorneys-in-fact and shall be entitled to advice of counsel                concerning
all matters pertaining to such duties. Agents shall not be                responsible for
the negligence or misconduct of any agent or attorney-in-fact                that it
selects as long as such selection was made without gross negligence or
               willful misconduct.  

    16.3.    Liability
of Agents. None of the Agents-Related Persons                shall (i) be
liable for any action taken or omitted to be taken by any of them                under or
in connection with this Agreement or any other Loan Document or the
               transactions contemplated hereby (except for its own gross negligence or
willful                misconduct), or (ii) be responsible in any manner to any of the
Lenders for any                recital, statement, representation or warranty made by
Borrower or any                Subsidiary or Affiliate of Borrower, or any officer or
director thereof,                contained in this Agreement or in any other Loan
Document, or in any                certificate, report, statement or other document
referred to or provided for in,                or received by any Agent under or in
connection with, this Agreement or any                other Loan Document, or the
validity, effectiveness, genuineness, enforceability                or sufficiency of
this Agreement or any other Loan Document, or for any failure                of Borrower
or any other party to any Loan Document to perform its obligations
               hereunder or thereunder. No Agents-Related Person shall be under any
obligation                to any Lender to ascertain or to inquire as to the observance
or performance of                any of the agreements contained in, or conditions of,
this Agreement or any                other Loan Document, or to inspect the Books or
properties of Borrower or the                books or records or properties of any of
Borrower’s Subsidiaries or                Affiliates.  

    16.4.    Reliance
by Agents. Agents shall be entitled to rely, and                shall be
fully protected in relying, upon any writing, resolution, notice,                consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
               message, statement or other document or conversation believed by them to
be                genuine and correct and to have been signed, sent, or made by the
proper Person                or Persons, and upon advice and statements of legal counsel
(including counsel                to Borrower or counsel to any Lender), independent
accountants and other experts                selected by such Agent. Any Agent shall be
fully justified in failing or                refusing to take any action under this
Agreement or any other Loan Document                unless such Agent shall first receive
such advice or concurrence of the Lenders                as it deems appropriate and
until such instructions are received, such Agent                shall act, or refrain
from acting, as it deems advisable. If such Agent so                requests, it shall
first be indemnified to its reasonable satisfaction by                Lenders against any
and all liability and expense that may be incurred by it by                reason of
taking or continuing to take any such action. Agents shall in all                cases be
fully protected in acting, or in refraining from acting, under this
               Agreement or any other Loan Document in accordance with a request or
consent of                the Lenders and such request and any action taken or failure to
act pursuant                thereto shall be binding upon all of the Lenders.  

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    16.5.    Notice
of Default or Event of Default. Agents shall not be                deemed
to have knowledge or notice of the occurrence of any Default or Event of
               Default, except with respect to defaults in the payment of principal,
interest,                fees, and expenses required to be paid to Administrative Agent
for the account                of the Lenders, except with respect to the existence of
Overadvances as to which                the Administrative Agent has actual knowledge and
to Events of Default of which                any Agent has actual knowledge, unless such
Agent shall have received written                notice from a Lender or Borrower
referring to this Agreement, describing such                Default or Event of Default,
and stating that such notice is a “notice of                default.” Such
Agent promptly will notify the Lenders of its receipt of any                such notice
or of any Event of Default of which such Agent has actual knowledge.                If
any Lender obtains actual knowledge of any Event of Default, such Lender
               promptly shall notify the other Lenders and Agents of such Event of
Default.                Each Lender shall be solely responsible for giving any notices to
its                Participants, if any. Subject to Section 16.4, Collateral Agent shall
take such                action with respect to such Default or Event of Default as may
be requested by                the Required Lenders in accordance with Section 9;
provided, however, that                unless and until Collateral Agent has received any
such request, Collateral                Agent may (but shall not be obligated to) take
such action, or refrain from                taking such action, with respect to such
Default or Event of Default as it shall                deem advisable.  

    16.6.    Credit
Decision. Each Lender acknowledges that none of the
               Agents-Related Persons has made any representation or warranty to it, and
that                no act by either Agent hereinafter taken, including any review of the
affairs of                Borrower and its Subsidiaries or Affiliates, shall be deemed to
constitute any                representation or warranty by any Agents-Related Person to
any Lender. Each                Lender represents to Agents that it has, independently
and without reliance upon                any Agents-Related Person and based on such
documents and information as it has                deemed appropriate, made its own
appraisal of and investigation into the                business, prospects, operations,
property, financial and other condition and                creditworthiness of Borrower
and any other Person (other than the Lender Group)                party to a Loan
Document, and all applicable bank regulatory laws relating to                the
transactions contemplated hereby, and made its own decision to enter into
               this Agreement and to extend credit to Borrower. Each Lender also
represents                that it will, independently and without reliance upon any
Agents-Related Person                and based on such documents and information as it
shall deem appropriate at the                time, continue to make its own credit
analysis, appraisals and decisions in                taking or not taking action under
this Agreement and the other Loan Documents,                and to make such
investigations as it deems necessary to inform itself as to the                business,
prospects, operations, property, financial and other condition and
               creditworthiness of Borrower and any other Person (other than the Lender
Group)                party to a Loan Document. Except for notices, reports, and other
documents                expressly herein required to be furnished to the Lenders by such
Agent, neither                Agent shall have any duty or responsibility to provide any
Lender with any                credit or other information concerning the business,
prospects, operations,                property, financial and other condition or
creditworthiness of Borrower and any                other Person party to a Loan Document
that may come into the possession of any                of the Agents-Related Persons.  

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    16.7.    Costs
and Expenses; Indemnification. Each Agent may incur                and pay
Lender Group Expenses to the extent each Agent reasonably deems                necessary
or appropriate for the performance and fulfillment of its functions,
               powers, and obligations pursuant to the Loan Documents, including court
costs,                reasonable attorneys fees and expenses, costs of collection by
outside                collection agencies and auctioneer fees and costs of security
guards or                insurance premiums paid to maintain the Collateral, whether or
not Borrower is                obligated to reimburse such Agent or Lenders for such
expenses pursuant to the                Loan Agreement or otherwise. Each Agent is
authorized and directed to deduct and                retain sufficient amounts from
Collections received by Administrative Agent or                Collateral Agent to
reimburse such Agent for such out-of-pocket costs and                expenses prior to
the distribution of any amounts to Lenders. In the event any                Agent is not
reimbursed for such costs and expenses from Collections received by
               Administrative Agent or Collateral Agent, each Lender hereby agrees that
it is                and shall be obligated to pay to or reimburse such Agent for the
amount of such                Lender’s Pro Rata Share thereof. Whether or not the
transactions                contemplated hereby are consummated, the Lenders shall
indemnify upon demand the                Agents-Related Persons (to the extent not
reimbursed by or on behalf of Borrower                and without limiting the obligation
of Borrower to do so), according to their                Pro Rata Shares, from and
against any and all Indemnified Liabilities; provided,                however, that no
Lender shall be liable for the payment to any Agents-Related                Person of any
portion of such Indemnified Liabilities resulting solely from such                Person’s
gross negligence or willful misconduct nor shall any Lender be                liable for
the obligations of any Defaulting Lender in failing to make an                Advance or
other extension of credit hereunder. Without limitation of the                foregoing,
each Lender shall reimburse each Agent upon demand for such                Lender’s
ratable share of any costs or out-of-pocket expenses (including                attorneys
fees and expenses) incurred by such Agent in connection with the
               preparation, execution, delivery, administration, modification, amendment,
or                enforcement (whether through negotiations, legal proceedings or
otherwise) of,                or legal advice in respect of rights or responsibilities
under, this Agreement,                any other Loan Document, or any document
contemplated by or referred to herein,                to the extent that such Agent is
not reimbursed for such expenses by or on                behalf of Borrower. The
undertaking in this Section shall survive the payment of                all Obligations
hereunder and the resignation or replacement of any Agent.  

    16.8.    Agents
in Individual Capacity. Foothill, Ableco and their
               Affiliates may make loans to, issue letters of credit for the account of,
accept                deposits from, acquire equity interests in, and generally engage in
any kind of                banking, trust, financial advisory, underwriting, or other
business with                Borrower and its Subsidiaries and Affiliates and any other
Person (other than                the Lender Group) party to any Loan Documents as though
Foothill and Ableco were                not Agents hereunder, and, in each case, without
notice to or consent of the                other members of the Lender Group. The other
members of the Lender Group                acknowledge that, pursuant to such activities,
Foothill, Ableco or their                Affiliates may receive information regarding
Borrower or its Affiliates and any                other Person (other than the Lender
Group) party to any Loan Documents that is                subject to confidentiality
obligations in favor of Borrower or such other Person                and that prohibit
the disclosure of such information to the Lenders, and the                Lenders
acknowledge that, in such circumstances (and in the absence of a waiver                of
such confidentiality obligations, which waiver Agents will use their
               reasonable best efforts to obtain), Agents shall not be under any
obligation to                provide such information to them. The terms “Lender” and
               “Lenders” include Foothill and Ableco in their individual
capacity.  

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    16.9.    Successor
Agents. Collateral Agent or Administrative Agent                may resign
as Collateral Agent or Administrative Agent, respectively, upon 45                days
notice to the Lenders. If either Agent resigns under this Agreement, the
               Required Lenders shall appoint a successor Agent in its place for the
Lenders.                If no successor Agent is appointed prior to the effective date of
the                resignation of Agent, such Agent may appoint, after consulting with
the Lenders,                a successor Agent. If Collateral Agent or Administrative
Agent has materially                breached or failed to perform any material provision
of this Agreement or of                applicable law, the Required Lenders may agree in
writing to remove and replace                such Agent with a successor Agent from among
the Lenders. In any such event,                upon the acceptance of its appointment as
successor Agent hereunder, such                successor Agent shall succeed to all the
rights, powers, and duties of the                retiring Agent and the term “Collateral
Agent” or “Administrative                Agent” (depending upon which
Agent is being replaced) shall mean such                successor Agent and the retiring
Collateral Agent’s or Administrative                Agent’s appointment,
powers, and duties as Collateral Agent or                Administrative Agent,
respectively, shall be terminated. After any retiring                Agent’s
resignation hereunder as Agent, the provisions of this Section 16                shall
inure to its benefit as to any actions taken or omitted to be taken by it
               while it was Agent under this Agreement. If no successor Agent has
accepted                appointment as Agent by the date which is 45 days following a
retiring                Agent’s notice of resignation, the retiring Agent’s
resignation shall                nevertheless thereupon become effective and the Lenders
shall perform all of the                duties of such Agent hereunder until such time,
if any, as the Lenders appoint a                successor Agent as provided for above.
Pursuant to this Section 16.9,                Foothill hereby gives notice to the
Lenders of its resignation as collateral                agent as of the Closing Date. The
Lenders hereby agree that as of the Closing                Date, Ableco Finance, LLC is
appointed as Collateral Agent and shall succeed to                and become vested with
all the rights, powers, privileges and duties that                Foothill had as
collateral agent and (ii) Foothill shall be discharged from its                duties and
obligations under the Loan Documents as collateral agent. The Lenders                also
agree that the forty-five (45) day prior notice required in connection with
               the resignation of Foothill as collateral agent under this Section 16.9               is
hereby waived.  

    16.10.    Lender
in Individual Capacity. Any Lender and its                respective
Affiliates may make loans to, issue letters of credit for the account                of,
accept deposits from, acquire equity interests in and generally engage in
               any kind of banking, trust, financial advisory, underwriting or other
business                with Borrower and its Subsidiaries and Affiliates and any other
Person (other                than the Lender Group) party to any Loan Documents as though
such Lender were                not a Lender hereunder without notice to or consent of
the other members of the                Lender Group. The other members of the Lender
Group acknowledge that, pursuant                to such activities, such Lender and its
respective Affiliates may receive                information regarding Borrower or its
Affiliates and any other Person (other                than the Lender Group) party to any
Loan Documents that is subject to                confidentiality obligations in favor of
Borrower or such other Person and that                prohibit the disclosure of such
information to the Lenders, and the Lenders                acknowledge that, in such
circumstances (and in the absence of a waiver of such                confidentiality
obligations, which waiver such Lender will use its reasonable                best efforts
to obtain), such Lender shall not be under any obligation to                provide such
information to them. With respect to the Swing Loans and Agent                Advances,
Swing Lender shall have the same rights and powers under this                Agreement as
any other Lender and may exercise the same as though it were not                the
sub-agent of Administrative Agent.  

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    16.11.    Withholding
Taxes.  

        (a)       
               If any Lender is a “foreign corporation, partnership or trust” within
               the meaning of the IRC and such Lender claims exemption from, or a
reduction of,                U.S. withholding tax under Sections 1441 or 1442 of the IRC,
such Lender agrees                with and in favor of Collateral Agent and Borrower, to
deliver to each Agent                (or, in the case of a Lender party to an Assignment
and Acceptance to an                Affiliate of such Lender or a Related Fund that is
not delivered to the Agents                in accordance with the last sentence of
Section 14.1(b), to the assigning                Lender) promptly upon becoming a Lender:  

	 	        (i)    
               if such Lender claims an exemption from, or a reduction of, withholding
tax                under a United States tax treaty, properly completed IRS Form W-8BEN
before the                first payment of any interest under this Agreement and at any
other time                reasonably requested by any Agent or the assigning Lender, as
applicable;  

	 	        (ii)    
               if such Lender claims that interest paid under this Agreement is exempt
from                United States withholding tax because it is effectively connected
with a United                States trade or business of such Lender, two properly
completed and executed                copies of IRS Form W-8ECI before the first payment
of any interest is due under                this Agreement and at any other time
reasonably requested by any Agent or the                assigning Lender, as applicable;  

	 	        (iii)    
               such other form or forms, including IRS Form W-9, as may be required under
the                IRC or other laws of the United States as a condition to exemption
from, or                reduction of, United States withholding tax.  

        Notwithstanding
the foregoing, such Lender may instead provide a Form W-8IMY, where applicable, with
appropriate forms attached thereto. 

        Such
Lender agrees promptly to notify each Agent or the assigning Lender, as applicable, of any
change in circumstances which would modify or render invalid any claimed exemption or
reduction. 

        (b)                 If
a Lender claims an exemption from witholding tax in a jurisdiction other than
          the United States, such Lender shall deliver to Agents (or in the case of a
          Lender party to an Assignment and Acceptance to an Affiliate or Related Fund
          that is not delivered to the Agents pursuant to the last sentence of Section
          14.1(b), to the assigning Lender) any such form or forms as may be required
          under the laws of such jurisdiction as a condition to exemption from, or
          reduction of, foreign witholding or backup witholding tax before receiving its
          first payment under this Agreement and at any other time reasonably requested
by           Agents or the assigning Lender, as applicable.  

-106- 

        (c)                 If
any Lender is entitled to a reduction in the applicable withholding tax,
          Administrative Agent (or in the case of a Lender party to an Assignment and
          Acceptance to an Affiliate or Related Fund that is not delivered to the Agents
          pursuant to the last sentence of Section 14.1(b), the assigning Lender) may
          withhold from any interest payment to such Lender an amount equivalent to the
          applicable withholding tax after taking into account such reduction. If the
          forms or other documentation required by subsection (a) of this Section are not
          delivered to Administrative Agent or the assigning Lender, as applicable, then
          Administrative Agent or the assigning Lender may withhold from any interest
          payment to such Lender not providing such forms or other documentation an
amount           equivalent to the applicable withholding tax.  

        (d)                 If
the IRS or any other Governmental Authority of the United States or other
          jurisdiction asserts a claim that Administrative Agent did not properly
withhold           tax from amounts paid to or for the account of any Lender (because the
          appropriate form was not delivered, was not properly executed, or because such
          Lender failed to notify Administrative Agent of a change in circumstances which
          rendered the exemption from, or reduction of, withholding tax ineffective, or
          for any other reason) such Lender shall indemnify and hold Administrative Agent
          harmless for all amounts paid, directly or indirectly, by Administrative Agent
          as tax or otherwise, including penalties and interest, and including any taxes
          imposed by any jurisdiction on the amounts payable to Administrative Agent
under           this Section, together with all costs and expenses (including attorneys
fees and           expenses). The obligation of the Lenders under this subsection shall
survive the           payment of all Obligations and the resignation or replacement of
Administrative           Agent.  

        (e)                 If
a Lender claims an exemption from United States witholding tax pursuant to           the
portfolio interest exception, such Lender represents and warrants that it is
          not (A) a “bank” as described in Section 881(c)(3)(A) of the IRC, (B)
          a 10% shareholder of any Borrower (within the meaning of Section 871(h)(3)(B)
of           the IRC, or (C) a controlled foreign corporation related to any Borrower
within           the meaning of 864(d)(4) of the IRC.  

All payments made by Borrower
hereunder or under any note or under any other Loan Document will be made without setoff,
counterclaim, or other defense, except as required by applicable law and other than for
Taxes (as defined below). All such payments will be made free and clear of, and without
deduction or withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction (other than the United States) or by any political subdivision or taxing
authority thereof or therein (other than of the United States) with respect to such
payments (but excluding, any tax imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein (i) measured by or based on the net
income or net profits of a Lender, or (ii) to the extent that such tax results from a
change in the circumstances of the Lender, including a change in the residence, place of
organization, or principal place of business of the Lender, or a change in the branch or
lending office of the Lender participating in the transactions set forth herein) and all
interest, penalties or similar liabilities with respect thereto (all such non-excluded
taxes, levies, imposts, duties, fees, assessments or other charges being referred to
collectively as “Taxes”). If any Taxes are so levied or imposed, Borrower agrees
to pay the full amount of such Taxes, and such additional amounts as may be necessary so
that every payment of all amounts due under this Agreement or under any note, including
any amount paid pursuant to this Section 16.11(f) after withholding or deduction for or on
account of any Taxes, will not be less than the amount provided for herein; provided,
however, that Borrower shall not be required to increase any such amounts payable to
Agents or any Lender (i) that is not organized under the laws of the United States, if
such Person fails to comply with the other requirements of this Section 16.11, or (ii) if
the increase in such amount payable results from Agents’ or such Lender’s own
willful misconduct or gross negligence. Borrower will furnish to Agents as promptly as
possible after the date the payment of any Taxes are due pursuant to applicable law
certified copies of tax receipts, if any, or other certificates or documents, such other
certificates or documents to be reasonably acceptable to Agents, evidencing such payment
by Borrower. 

-107- 

    16.12.    Collateral
Matters.  

        (a)                 The
Lenders hereby irrevocably authorize Collateral Agent, at its option and in           its
sole discretion, to release any Lien on any Collateral (i) upon the           termination
of the Commitments and payment and satisfaction in full by Borrower           of all
Obligations, (ii)constituting property being sold or disposed of if a           release
is required or desirable in connection therewith and if Borrower           certifies to
Collateral Agent that the sale or disposition is permitted under Section 7.4 of
this Agreement or the other Loan Documents (and Collateral           Agent may rely
conclusively on any such certificate, without further inquiry),           (iii)
constituting property in which Borrower owned no interest at the time the
          security interest was granted or at any time thereafter or (iv) constituting
          property leased to Borrower under a lease that has expired or is terminated in
a           transaction permitted under this Agreement. Except as provided above,
Collateral           Agent will not execute and deliver a release of any Lien on any
Collateral           without the prior written authorization of (y) if the release is of
any           substantial portion of the Collateral, all of the Lenders, or (z)
otherwise, the           Required Lenders. Upon request by Collateral Agent or Borrower
at any time, the           Lenders will confirm in writing Collateral Agent’s
authority to release any           such Liens on particular types or items of Collateral
pursuant to this Section           16.12; provided, however, that (1) Collateral Agent
shall not be required to           execute any document necessary to evidence such
release on terms that, in           Collateral Agent’s opinion, would expose
Collateral Agent to liability or           create any obligation or entail any
consequence other than the release of such           Lien without recourse,
representation, or warranty, and (2) such release shall           not in any manner
discharge, affect, or impair the Obligations or any Liens           (other than those
expressly being released) upon (or obligations of Borrower in           respect of) all
interests retained by Borrower, including, the proceeds of any           sale, all of
which shall continue to constitute part of the Collateral.  

        (b)                 Collateral
Agent shall have no obligation whatsoever to any of the Lenders to           assure that
the Collateral exists or is owned by Borrower or its Subsidiaries,           or is cared
for, protected, or insured or has been encumbered, or that the           Collateral Agent’s
Liens have been properly or sufficiently or lawfully           created, perfected,
protected, or enforced or are entitled to any particular           priority, or to
exercise at all or in any particular manner or under any duty of           care,
disclosure or fidelity, or to continue exercising, any of the rights,
          authorities and powers granted or available to Collateral Agent pursuant to any
          of the Loan Documents, it being understood and agreed that in respect of the
          Collateral, or any act, omission, or event related thereto, subject to the
terms           and conditions contained herein, Collateral Agent may act in any manner
it may           deem appropriate, in its sole discretion given Collateral Agent’s
own           interest in the Collateral in its capacity as one of the Lenders and that
          Collateral Agent shall have no other duty or liability whatsoever to any Lender
          as to any of the foregoing, except as otherwise provided herein.  

-108- 

    16.13.    Restrictions
on Actions by Lenders; Sharing of Payments.  

        (a)                 Each
of the Lenders agrees that it shall not, without the express consent of           each
Agent, and that it shall, to the extent it is lawfully entitled to do so,           upon
the request of each Agent, set off against the Obligations, any amounts           owing
by such Lender to Borrower or any deposit accounts of Borrower now or           hereafter
maintained with such Lender. Each of the Lenders further agrees that           it shall
not, unless specifically requested to do so by Collateral Agent, take           or cause
to be taken any action, including, the commencement of any legal or           equitable
proceedings, to foreclose any Lien on, or otherwise enforce any           security
interest in, any of the Collateral the purpose of which is, or could           be, to
give such Lender any preference or priority against the other Lenders           with
respect to the Collateral.  

        (b)                 If,
at any time or times any Lender shall receive (i) by payment, foreclosure,
          setoff, or otherwise, any proceeds of Collateral or any payments with respect
to           the Obligations arising under, or relating to, this Agreement or the other
Loan           Documents, except for any such proceeds or payments received by such
Lender from           any Agent pursuant to the terms of this Agreement, or (ii) payments
from any           Agent in excess of such Lender’s ratable portion of all such
distributions           by such Agent, such Lender promptly shall (1) turn the same over
to such Agent,           in kind, and with such endorsements as may be required to
negotiate the same to           such Agent, or in immediately available funds, as
applicable, for the account of           all of the Lenders and for application to the
Obligations in accordance with the           applicable provisions of this Agreement, or
(2) purchase, without recourse or           warranty, an undivided interest and
participation in the Obligations owed to the           other Lenders so that such excess
payment received shall be applied ratably as           among the Lenders in accordance
with their Pro Rata Shares; provided, however,           that if all or part of such
excess payment received by the purchasing party is           thereafter recovered from
it, those purchases of participations shall be           rescinded in whole or in part,
as applicable, and the applicable portion of the           purchase price paid therefor
shall be returned to such purchasing party, but           without interest except to the
extent that such purchasing party is required to           pay interest in connection
with the recovery of the excess payment.  

    16.14.    Agency
for Perfection. Collateral Agent hereby appoints           each other
Lender as its agent (and each Lender hereby accepts such appointment)           for the
purpose of perfecting the Collateral Agent’s Liens in assets which,           in
accordance with Article 9 of the Code can be perfected only by possession.
          Should any Lender obtain possession of any such Collateral, such Lender shall
          notify Collateral Agent thereof, and, promptly upon Collateral Agent’s
          request therefor shall deliver such Collateral to Collateral Agent or in
          accordance with Collateral Agent’s instructions.  

    16.15.    Payments
by Agents to the Lenders. All payments to be made           by any Agent
to the Lenders shall be made by bank wire transfer or internal           transfer of
immediately available funds pursuant to such wire transfer           instructions as each
party may designate for itself by written notice to such           Agent. Concurrently
with each such payment, such Agent shall identify whether           such payment (or any
portion thereof) represents principal, premium, or interest           of the Obligations.  

    16.16.    Concerning
the Collateral and Related Loan Documents. Each           member of the
Lender Group authorizes and directs Agents to enter into this           Agreement and the
other Loan Documents relating to the Collateral, for the           benefit of the Lender
Group. Each member of the Lender Group agrees that any           action taken by any
Agent in accordance with the terms of this Agreement or the           other Loan
Documents relating to the Collateral and the exercise by each Agent           of its
powers set forth therein or herein, together with such other powers that           are
reasonably incidental thereto, shall be binding upon all of the Lenders.  

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    16.17.    Field
Audits and Examination Reports; Confidentiality; Disclaimers by           Lenders; Other
Reports and Information. By becoming a party to           this Agreement,
each Lender:  

        (a)                 is
deemed to have requested that Agents furnish such Lender, promptly after it
          becomes available, a copy of each field audit or examination report (each a
          “Report” and collectively, “Reports”)
prepared           by any Agent, and such Agent shall so furnish each Lender with such
Reports,  

        (b)                 expressly
agrees and acknowledges that Agents do not (i) make any representation           or
warranty as to the accuracy of any Report, and (ii) shall not be liable for           any
information contained in any Report,  

        (c)                 expressly
agrees and acknowledges that the Reports are not comprehensive audits           or
examinations, that such Agent or other party performing any audit or
          examination will inspect only specific information regarding Borrower and will
          rely significantly upon the Books, as well as on representations of
          Borrower’s personnel,  

        (d)                 agrees
to keep all Reports and other material, non-public information regarding
          Borrower and its Subsidiaries and their operations, assets, and existing and
          contemplated business plans in a confidential manner; it being understood and
          agreed by Borrower that in any event such Lender may make disclosures (a) to
          counsel for and other advisors, accountants, and auditors to such Lender, (b)
          reasonably required by any bona fide potential or actual Assignee or
Participant           in connection with any contemplated or actual assignment or
transfer by such           Lender of an interest herein or any participation interest in
such Lender’s           rights hereunder, (c) of information that has become public
by disclosures made           by Persons other than such Lender, its Affiliates,
assignees, transferees, or           Participants, or (d) as required or requested by any
court, governmental or           administrative agency, pursuant to any subpoena or other
legal process, or by           any law, statute, regulation, or court order; provided,
however, that,           unless prohibited by applicable law, statute, regulation, or
court order, such           Lender shall notify Borrower of any request by any court,
governmental or           administrative agency, or pursuant to any subpoena or other
legal process for           disclosure of any such non-public material information
concurrent with, or where           practicable, prior to the disclosure thereof, and  

        (e)                 without
limiting the generality of any other indemnification provision contained           in
this Agreement, agrees: (i) to hold any Agent and any other Lender preparing           a
Report harmless from any action the indemnifying Lender may take or conclusion
          the indemnifying Lender may reach or draw from any Report in connection with
any           loans or other credit accommodations that the indemnifying Lender has made
or           may make to Borrower, or the indemnifying Lender’s participation in, or
the           indemnifying Lender’s purchase of, a loan or loans of Borrower, and
(ii) to           pay and protect, and indemnify, defend and hold Agents, and any such
other           Lender preparing a Report harmless from and against, the claims, actions,
          proceedings, damages, costs, expenses, and other amounts (including, attorneys
          fees and costs) incurred by each Agent and any such other Lender preparing a
          Report as the direct or indirect result of any third parties who might obtain
          all or part of any Report through the indemnifying Lender.  

-110- 

In addition to the foregoing: (x) any
Lender may from time to time request of any Agent in writing that such Agent provide to
such Lender a copy of any report or document provided by Borrower to such Agent that has
not been contemporaneously provided by Borrower to such Lender, and, upon receipt of such
request, such Agent promptly shall provide a copy of same to such Lender, (y) to the
extent that any Agent is entitled, under any provision of the Loan Documents, to request
additional reports or information from Borrower, any Lender may, from time to time,
reasonably request such Agent to exercise such right as specified in such Lender’s
notice to such Agent, whereupon such Agent promptly shall request of Borrower the
additional reports or information reasonably specified by such Lender, and, upon receipt
thereof from Borrower, Agent promptly shall provide a copy of same to such Lender, and (z)
any time that any Agent renders to Borrower a statement regarding the Loan Account, such
Agent shall send a copy of such statement to each Lender. 

    16.18.    Several
Obligations; No Liability. Notwithstanding that           certain of the
Loan Documents now or hereafter may have been or will be executed           only by or in
favor of Collateral Agent or Administrative Agent in its capacity           as such, and
not by or in favor of the Lenders, any and all obligations on the           part of such
Agent (if any) to make any credit available hereunder shall           constitute the
several (and not joint) obligations of the respective Lenders on           a ratable
basis, according to their respective Commitments, to make an amount of           such
credit not to exceed, in principal amount, at any one time outstanding, the
          amount of their respective Commitments. Nothing contained herein shall confer
          upon any Lender any interest in, or subject any Lender to any liability for, or
          in respect of, the business, assets, profits, losses, or liabilities of any
          other Lender. Each Lender shall be solely responsible for notifying its
          Participants of any matters relating to the Loan Documents to the extent any
          such notice may be required, and no Lender shall have any obligation, duty, or
          liability to any Participant of any other Lender. Except as provided in Section
          16.7, no member of the Lender Group shall have any liability for the acts or
any           other member of the Lender Group. No Lender shall be responsible to
Borrower or           any other Person for any failure by any other Lender to fulfill its
obligations           to make credit available hereunder, nor to advance for it or on its
behalf in           connection with its Commitment, nor to take any other action on its
behalf           hereunder or in connection with the financing contemplated herein.  

	17. 	GENERAL
PROVISIONS.

    17.1.    Effectiveness.
This Agreement shall be binding and deemed           effective when executed by Borrower,
Agents, and each Lender whose signature is           provided for on the signature pages
hereof.  

    17.2.    Section
Headings. Headings and numbers have been set forth           herein for
convenience only. Unless the contrary is compelled by the context,           everything
contained in each Section applies equally to this entire Agreement.  

-111- 

    17.3.    Interpretation.
Neither this Agreement nor any uncertainty           or ambiguity herein shall be
construed against the Lender Group or Borrower,           whether under any rule of
construction or otherwise. On the contrary, this           Agreement has been reviewed by
all parties and shall be construed and           interpreted according to the ordinary
meaning of the words used so as to           accomplish fairly the purposes and
intentions of all parties hereto.  

    17.4.    Severability
of Provisions. Each provision of this           Agreement shall be
severable from every other provision of this Agreement for           the purpose of
determining the legal enforceability of any specific provision.  

    17.5.    Amendments
in Writing. This Agreement only can be amended           by a writing
signed by Collateral Agent (on behalf of the requisite Lenders) and           Borrower.  

    17.6.    Counterparts;
Telefacsimile Execution. This Agreement may           be executed in any
number of counterparts and by different parties on separate           counterparts, each
of which, when executed and delivered, shall be deemed to be           an original, and
all of which, when taken together, shall constitute but one and           the same
Agreement. Delivery of an executed counterpart of this Agreement by
          telefacsimile shall be equally as effective as delivery of an original executed
          counterpart of this Agreement. Any party delivering an executed counterpart of
          this Agreement by telefacsimile also shall deliver an original executed
          counterpart of this Agreement but the failure to deliver an original executed
          counterpart shall not affect the validity, enforceability, and binding effect
of           this Agreement. The foregoing shall apply to each other Loan Document
mutatis           mutandis.  

    17.7.    Revival
and Reinstatement of Obligations. If the incurrence           or payment
of the Obligations by Borrower or the transfer to the Lender Group of           any
property should for any reason subsequently be declared to be void or           voidable
under any state or federal law relating to creditors’ rights,           including
provisions of the Bankruptcy Code relating to fraudulent conveyances,
          preferences, or other voidable or recoverable payments of money or transfers of
          property (collectively, a “Voidable Transfer”), and if the
          Lender Group is required to repay or restore, in whole or in part, any such
          Voidable Transfer, or elects to do so upon the reasonable advice of its
counsel,           then, as to any such Voidable Transfer, or the amount thereof that the
Lender           Group is required or elects to repay or restore, and as to all
reasonable costs,           expenses, and attorneys fees of the Lender Group related
thereto, the liability           of Borrower automatically shall be revived, reinstated,
and restored and shall           exist as though such Voidable Transfer had never been
made.  

    17.8.    Integration.
This Agreement, together with the other Loan           Documents, reflects the entire
understanding of the parties with respect to the           transactions contemplated
hereby and shall not be contradicted or qualified by           any other agreement, oral
or written, before the date hereof.  

-112- 

    17.9.    No
Novation. This Agreement does not extinguish the           obligations for
the payment of money outstanding under the Existing Loan           Agreement or discharge
or release the obligations under the Existing Loan           Agreement or the lien or
priority of any mortgage, pledge, security agreement or           any other security
therefor. Nothing herein contained shall be construed as a           substitution or
novation of the obligations outstanding under the Existing Loan           Agreement or
instruments securing the same, which shall remain in full force and           effect,
except as modified hereby or by instruments executed concurrently           herewith.
Nothing expressed or implied in this Agreement shall be construed as a           release
or other discharge of the Borrower or any Guarantor under the Existing           Loan
Agreement from any of their obligations and liabilities as a           “Borrower” or
“Guarantor” thereunder; provided, however that any Default or
Event of Default existing under the Existing           Loan Agreement is hereby waived as
of the Closing Date, except to the extent           such Default or Event of Default
constitutes a Default or Event of Default as of           the Closing Date under this
Agreement, as amended and restated on the Closing           Date. The Borrower and each
Guarantor hereby (i) confirms and agrees that,           except as modified hereby or by
instruments executed concurrently herewith, each           Loan Document to which it is a
party is, and shall continue to be, in full force           and effect and is hereby
ratified and confirmed in all respects except that on           and after the Closing
Date of this Agreement all references in any such Loan           Document to “the
Loan Agreement,” “thereto,”          “thereof,” “thereunder” or
words of like import referring to           the Existing Loan Agreement shall mean the
Existing Loan Agreement as amended           and restated by this Agreement and (ii)
confirms and agrees that to the extent           that any such Loan Document purports to
assign or pledge to the Agent (as           defined in the Existing Loan Agreement) or
the Collateral Agent a security           interest in or lien on, any collateral as
security for the obligations of the           Borrower and Guarantors from time to time
existing in respect of the Existing           Loan Agreement and the Loan Documents, such
pledge, assignment and/or grant of           the security interest or lien is hereby
ratified and confirmed in all respects.  

    17.10.    Consent.
Each of the Agents and the Lenders hereby ratify           and reaffirm that certain
Consent to Sale of Real Property and Equipment dated           September 23, 2004 (the
“Consent”) and acknowledge that the           Consent remains in full
force and effect.  

-113- 

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

		NORTHLAND CRANBERRIES, INC.,
		a Wisconsin corporation, as Borrower
	

 	By: /s/ John Swendrowski
		    Name:  John Swendrowski
		    Title:  Chairman and Chief Executive Officer
	

 	NCI FOODS, LLC
		Wisconsin limited liability company, as a Guarantor
	

 	By: /s/ John Swendrowski
		    Name:  John Swendrowski
		    Title:  President
	

 	WILDHAWK, INC.
		a Wisconsin corporation, as a Guarantor
	

 	By: /s/ John Swendrowski
		    Name:  John Swendrowski
		    Title:  Vice President
	

 	NORTHLAND INSURANCE CENTER, INC.
		a Wisconsin corporation, as a Guarantor
	

 	By:  /s/ John Swendrowski
		    Name:  John Swendrowski
		    Title:  Vice President

		WELLS FARGO FOOTHILL, INC.,
		a California corporation, as Administrative Agent and as a
		Lender
	

 	By:  /s/ Dennis J. Rebman
		    Name:  Dennis J. Rebman
		    Title:  Vice President
	

 	ABLECO FINANCE LLC
		a Delaware limited liability company, as Collateral Agent and
		as a Lender
	

 	By: /s/ Kevin Genda
		    Name:  Kevin Genda
		    Title:  Senior Vice President

TABLE OF CONTENTS 

	
  		Page
	1.	DEFINITIONS AND CONSTRUCTION	2
	
  	1.1. Definitions	2
	 	1.2. Accounting Terms	29
	 	1.3. Code	29
	 	1.4. Construction	29
	 	1.5. Schedules and Exhibits	30
	
2.	LOAN AND TERMS OF PAYMENT	30
	 
 	2.1. Revolver Advances	30
	 	2.2. Term Loan	32
	 	2.3. Borrowing Procedures and Settlements	32
	 	2.4. Payments	38
	 	2.5. Overadvances	44
	 	2.6. Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations	45
	 	2.7. Cash Management	47
	 	2.8. Crediting Payments; Float Charge	48
	 	2.9. Designated Account	48
	 	2.10. Maintenance of Loan Account; Statements of Obligations	48
	 	2.11. Fees	49
	 	2.12. Letters of Credit	50
	 	2.13. Capital Requirements	53
	 	2.14. Registered Notes	53
	 	2.15. Securitization	53
	 	2.16. LIBOR Rate	54
	
3.	CONDITIONS; TERM OF AGREEMENT	57
	
  	3.1. Conditions Precedent to the Initial Extension of Credit	57
	 	3.2. Conditions Subsequent to the Initial Extension of Credit	59
	 	3.3. Conditions Precedent to all Extensions of Credit	60
	 	3.4. Term	60
	 	3.5. Effect of Termination	61
	 	3.6. Early Termination by Borrower	61
	
4.	CREATION OF SECURITY INTEREST	61
	 
 	4.1. Grant of Security Interest	61
	 	4.2. Negotiable Collateral	61
	 	4.3. Collection of Accounts, General Intangibles, and Negotiable Collateral	62

-i- 

			
	 	4.4. Delivery of Additional Documentation Required	62
	 	4.5. Power of Attorney	62
	 	4.6. Right to Inspect	63
	 	4.7. Control Agreement	63
	
5.	REPRESENTATIONS AND WARRANTIES	63
	
  	5.1. No Encumbrances	63
	 	5.2. Eligible Accounts	64
	 	5.3. Eligible Inventory	64
	 	5.4. Equipment	65
	 	5.5. Location of Inventory and Equipment	65
	 	5.6. Inventory Records	65
	 	5.7. Location of Chief Executive Office; FEIN	65
	 	5.8. Due Organization and Qualification; Subsidiaries	65
		5.9. Due Authorization; No Conflict	66
		5.10. Litigation	67
		5.11. No Material Adverse Change 	67
		5.12. Fraudulent Transfer 	68
		5.13. Employee Benefits 	68
		5.14. Environmental Condition 	68
	         	5.15. Brokerage Fees 	68
	         	5.16. Intellectual Property 	68
	         	5.17. Leases 	68
	         	5.18. DDAs 	69
	         	5.19. Complete Disclosure 	69
	         	5.20. Indebtedness 	69
	         	5.21. Notices from Farm Products Sellers, etc. 	69
	         	5.22. Nestle USA, Inc. 	70
	 
6.	AFFIRMATIVE COVENANTS	70
	
  	6.1. Accounting System	70
	 	6.2. Collateral Reporting	70
	 	6.3. Financial Statements, Reports, Certificates	72
	 	6.4. Return	74
	 	6.5. Maintenance of Properties	74
	 	6.6. Taxes	74
	 	6.7. Insurance	74
	 	6.8. Location of Inventory and Equipment	75
	 	6.9. Compliance with Laws	76
	 	6.10. Leases	76
	 	6.11. Brokerage Commissions	76
	 	6.12. Existence	76
	 	6.13. Environmental	76
	 	6.14. Agricultural Products	76
	 	6.15. Disclosure Updates	78

-ii- 

			
	 	6.16. Additional Mortgages	78
	 	6.17. Special Dividend	78
	 	6.18. Nestle USA, Inc.	78
	 	6.19. Equitable	79
	
7.	NEGATIVE COVENANTS	79
	
  	7.1. Indebtedness	79
	 	7.2. Liens	79
	 	7.3. Restrictions on Fundamental Changes	79
	 	7.4. Disposal of Assets	80
	 	7.5. Change Name	80
	 	7.6. Guarantee	80
	 	7.7. Nature of Business	80
	 	7.8. Prepayments and Amendments	80
	 	7.9. Change of Control	81
	 	7.10. Consignments	81
	 	7.11. Distributions	81
	 	7.12. Accounting Methods	81
	 	7.13. Investments	82
	 	7.14. Transactions with Affiliates	82
	 	7.15. Suspension	82
	 	7.16. [Intentionally Omitted]	82
	 	7.17. Use of Proceeds	82
	 	7.18. Change in Location of Chief Executive Office; Inventory and Equipment with Bailees	82
	 	7.19. Securities Accounts	83
	 	7.20. Financial Covenants	83
	
8.	EVENTS OF DEFAULT	87
	
9.	THE LENDER GROUP'S RIGHTS AND REMEDIES	89
	 
 	9.1. Rights and Remedies	89
	 	9.2. Remedies Cumulative	91
	
1.0	TAXES AND EXPENSES	91
	
1.1	WAIVERS; INDEMNIFICATION	92
	
  	11.1. Demand; Protest	92
	 	11.2. The Lender Group's Liability for Collateral	92
	 	11.3. Indemnification	92

-iii- 

			
	12.	NOTICES	93
	
1.3	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER	95
	
14.	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	95
	
  	14.1. Assignments and Participations	95
	 	14.2. Successors	99
	
15.	AMENDMENTS; WAIVERS	99
	 
 	15.1. Amendments and Waivers	99
	 	15.2. Replacement of Holdout Lender	100
	 	15.3. No Waivers; Cumulative Remedies	101
	
16.	AGENTS; THE LENDER GROUP	101
	 
 	16.1. Appointment and Authorization of Agent	101
	 	16.2. Delegation of Duties	102
	 	16.3. Liability of Agents	102
	 	16.4. Reliance by Agents	102
	 	16.5. Notice of Default or Event of Default	103
	 	16.6. Credit Decision	103
	 	16.7. Costs and Expenses; Indemnification	104
	 	16.8. Agents in Individual Capacity	104
	 	16.9. Successor Agents	105
	 	16.10. Lender in Individual Capacity	105
	 	16.11. Withholding Taxes	106
	 	16.12. Collateral Matters	108
	 	16.13. Restrictions on Actions by Lenders; Sharing of Payments	109
	 	16.14. Agency for Perfection	109
	 	16.15. Payments by Agents to the Lenders	109
	 	16.16. Concerning the Collateral and Related Loan Documents	109
	 	16.17. Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and
	 	Information	110
	 	16.18. Several Obligations; No Liability	111
	
17.	GENERAL PROVISIONS	111
	
  	17.1. Effectiveness	111
	 	17.2. Section Headings	111
	 	17.3. Interpretation	112
	 	17.4. Severability of Provisions	112
	 	17.5. Amendments in Writing	112
	 	17.6. Counterparts; Telefacsimile Execution	112
	 	17.7. Revival and Reinstatement of Obligations	112
	 	17.8. Integration	112
	 	17.9. No Novation	112
	 	17.10. Consent	113

-iv- 

EXHIBITS AND SCHEDULES 

	Exhibit A-1	Form of Assignment and Acceptance Agreement
	Exhibit C-1	Form of Compliance Certificate
	Exhibit L-1	Form of LIBOR Notice
	Schedule C-1	Commitments
	Schedule E-1	Eligible Inventory Locations
	Schedule P-1	Permitted Liens
	Schedule R-1	Real Property Collateral
	Schedule R-2	Post-closing Real Property Collateral
	Schedule 1.1	Liquidating Assets
	Schedule 2.7(a)	Cash Management Banks
	Schedule 3.1(p)	Tax Returns
	Schedule 3.2(d)	Closing Date Material Changes
	Schedule 4.1	Excluded Collateral
	Schedule 5.5	Locations of Inventory and Equipment
	Schedule 5.7	Chief Executive Office; FEIN
	Schedule 5.8(b)	Capitalization of Borrower
	Schedule 5.8(c)	Capitalization of Borrower's Subsidiaries
	Schedule 5.10	Litigation
	Schedule 5.13	ERISA
	Schedule 5.14	Environmental Matters
	Schedule 5.15	Brokerage Fees
	Schedule 5.16	Intellectual Property
	Schedule 5.17	Leases
	Schedule 5.18	Demand Deposit Accounts
	Schedule 5.20	Permitted Indebtedness
	Schedule 5.21(a)	Disclosure Notices regarding PACA

-v-FORM OF FIXED RATE NOTE

REGISTERED                                                REGISTERED
No. FXR                                                   U.S. $
                                                          CUSIP:

               Unless this certificate is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New
York) to the issuer or its agent for registration of transfer, exchange or
payment, and any certificate issued is registered in the name of Cede & Co. or
such other name as requested by an authorized representative of The Depository
Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since
the registered owner hereof, Cede & Co., has an interest herein.

                                 MORGAN STANLEY
                    SENIOR GLOBAL MEDIUM-TERM NOTE, SERIES F

                        STRATEGIC TOTAL RETURN SECURITIES

                              DUE DECEMBER 17, 2009
               EXCHANGEABLE FOR AN AMOUNT PAYABLE IN U.S. DOLLARS
                   BASED ON THE VALUE OF THE CBOE S&P 500 BUYWRITE INDEX

<TABLE>
<CAPTION>

===============================================================================================
<S>                       <C>                   <C>                    <C>
ORIGINAL ISSUE           INITIAL REDEMPTION     INTEREST RATE: None     MATURITY DATE:   See
  DATE:                    DATE:  N/A                                   "Maturity Date" below.

-----------------------------------------------------------------------------------------------
INTEREST ACCRUAL         INITIAL REDEMPTION     INTEREST PAYMENT        OPTIONAL REPAYMENT
  DATE:  N/A               PERCENTAGE:  N/A       DATE(S):  N/A           DATE(S):  N/A
-----------------------------------------------------------------------------------------------
SPECIFIED CURRENCY:      ANNUAL REDEMPTION      INTEREST PAYMENT        APPLICABILITY OF
  U.S. dollars             PERCENTAGE             PERIOD: A See           MODIFIED PAYMENT
                           REDUCTION: See "Net    "Exchange Right"        UPON ACCELERATION
                           Entitlement Value      below.                  OR REDEMPTION:
                           Payable at Maturity,                           See "Discontinuance
                           upon Redemption or                             of the BXM Index;
                           upon Exchange" below.                          Successor Index;
                                                                          Alteration of
                                                                          Method of
                                                                          Calculation"
                                                                          below.
 -----------------------------------------------------------------------------------------------
IF SPECIFIED CURRENCY    REDEMPTION NOTICE      APPLICABILITY OF        If yes, state Issue
  OTHER THAN U.S.          PERIOD: See "Issuer    ANNUAL INTEREST         Price: N/A
  DOLLARS, OPTION TO       Redemption Right"      PAYMENTS:  N/A
  ELECT PAYMENT IN         below.
  U.S. DOLLARS: N/A
-----------------------------------------------------------------------------------------------
EXCHANGE RATE AGENT:     TAX REDEMPTION AND     PRICE APPLICABLE        ORIGINAL YIELD TO
  N/A                      PAYMENT OF             UPON OPTIONAL           MATURITY: N/A
                           ADDITIONAL             REPAYMENT: See "Net
                           AMOUNTS: N/A           Entitlement Value
                                                  Payable at Maturity,
                                                  upon Redemption or
                                                  upon Exchange" below.
-----------------------------------------------------------------------------------------------
OTHER PROVISIONS:        IF YES, STATE
  See below.               INITIAL OFFERING
                           DATE: N/A
===============================================================================================
</TABLE>

For the purposes of the Strategic Total Return Securities (the "Securities") of
Morgan Stanley (the "Issuer"), the tenth paragraph of Section 2.08 of the Senior
Indenture, dated as of November 1, 2004 between the Issuer and JPMorgan Chase
Bank, N.A. as Trustee shall not apply.

Maturity Date.......................... December 17, 2009

Net  Entitlement  Value Payable at
Maturity,  upon Redemption or upon
Exchange............................... Each Security is exchangeable on the
                                        Maturity Date or any Exchange Date, as
                                        applicable, or redeemable on certain
                                        Exchange Dates, for the Net Entitlement
                                        Value determined on the Maturity
                                        Valuation Date (as defined below) or any
                                        Exchange Valuation Date (as defined
                                        below), as applicable. The Net
                                        Entitlement Value on any Trading Day (as
                                        defined below) other than the day we
                                        price the Securities for initial sale to
                                        the public equals (i) the product of (x)
                                        the Initial Net Entitlement Value (as
                                        defined below) times (y) the BXM Index
                                        Performance (as defined below) as of
                                        that Trading Day (ii) minus the
                                        Adjustment Amount (as defined below)
                                        determined as of such Trading Day.

BXM Index Performance.................. On any Trading Day, the Index Value (as
                                        defined below) on that Trading Day
                                        divided by the Initial Index Value (as
                                        defined below).

Index Value............................ On any Trading Day, the closing value of
                                        the BXM Index or any Successor Index (as
                                        defined below) on that Trading Day.
                                        Under certain circumstances, the Index
                                        Value will be based on the alternate
                                        calculation of the BXM Index.

Initial Index Value.................... The Index Value on the day we price the
                                        Securities for initial sale to the
                                        public.

Adjustment Amount...................... On any Trading Day, the sum of each of
                                        the Monthly Adjustments prior to and
                                        including that Trading Day.

Monthly Adjustment..................... For each month, an amount times the Net
                                        Entitlement Value on the Trading Day
                                        immediately preceding the BXM Index Roll
                                        Date for that month. The Monthly
                                        Adjustment will be applied on the BXM
                                        Index Roll Date for that month. The
                                        Monthly Adjustment will be reduced if
                                        the maximum amount of applicable
                                        brokerage commissions is paid during the
                                        term of the Securities.

BXM Index Roll Date.................... The date in each month on which the
                                        monthly call option on the S&P 500 Index
                                        included in the BXM Index is valued upon
                                        expiration, which is generally the third
                                        Friday of that month.

Maturity Valuation Date and
Exchange Valuation Date................ For purposes of calculating the Net
                                        Entitlement Value payable on the
                                        Maturity Date, the Maturity Valuation
                                        Date will be the fifth scheduled Trading
                                        Day immediately prior to the Maturity
                                        Date, unless there is a Market
                                        Disruption Event on that date. For
                                        purposes of calculating the Net
                                        Entitlement Value payable on any
                                        Exchange Date, the Exchange Valuation
                                        Date will be the last day of the
                                        relevant Exchange Period, unless there
                                        is a Market Disruption Event on that
                                        date.

                                        If a Market Disruption Event occurs on
                                        the scheduled Maturity Valuation Date or
                                        the Exchange Valuation Date, then the
                                        Maturity Valuation Date or the Exchange
                                        Valuation Date, as the case may be, will
                                        be the immediately succeeding Trading
                                        Day on which no Market Disruption Event
                                        has occurred. Notwithstanding the
                                        foregoing, the Maturity Valuation Date
                                        will be no later than the second
                                        scheduled Trading Day preceding the
                                        Maturity Date and the Exchange Valuation
                                        Date will be no later than the third
                                        Trading Day following the last day of
                                        the relevant Exchange Period, as the
                                        case may be. If a Market Disruption
                                        Event occurs on the date specified in
                                        the preceding sentence, then the Index
                                        Value for that date will be calculated
                                        on that date by the Calculation Agent in
                                        accordance with the formula for
                                        calculating the value of the BXM Index
                                        last in effect prior to the commencement
                                        of the Market Disruption Event, using
                                        (x) in respect of the S&P 500 Index, the
                                        closing price (or, if trading in the
                                        relevant securities has been materially
                                        suspended or materially limited, its
                                        good faith estimate of the closing price
                                        that would have prevailed but for such
                                        suspension or limitation) on such
                                        Trading Day of each stock most recently
                                        comprising the S&P 500 Index; and (y) in
                                        respect of the call option included in
                                        the BXM Index, the arithmetic average of
                                        the last bid and ask prices (or, if
                                        trading in call options has been
                                        materially suspended or materially
                                        limited, its good faith estimate of the
                                        arithmetic average of the last bid and
                                        ask prices that would have prevailed but
                                        for such suspension or limitation) of
                                        the call option reported before 4:00
                                        p.m. (New York City time) on that date.

Relevant Exchange...................... The primary U.S. organized exchange or
                                        market of trading for any security then
                                        included in the BXM Index, the S&P 500
                                        Index or any Successor Index.

Exchange Right......................... You may, subject to the Minimum Exchange
                                        Amount (as defined below), exchange your
                                        Securities on any Trading Day during any
                                        Exchange Period for the Net Entitlement
                                        Value by instructing your broker or
                                        other person through whom you hold your
                                        Securities to take the following steps
                                        through normal clearing system channels:

                                        o       fill out an Official Notice of
                                                Exchange, attached as Annex A
                                                hereto;

                                        o       deliver your Official Notice of
                                                Exchange to us (which must be
                                                acknowledged by us) on any
                                                Trading Day falling in an
                                                Exchange Period but prior to
                                                12:00 p.m. (New York City time)
                                                on the last Trading Day in that
                                                Exchange Period; and

                                        o       transfer your book-entry
                                                interest in the Securities to
                                                the Trustee on our behalf at or
                                                prior to 10:00 a.m. (New York
                                                City time) on the Exchange Date.

                                        Different brokerage firms may have
                                        different deadlines for accepting
                                        instructions from their customers.
                                        Accordingly, as a beneficial owner of
                                        the Securities, you should consult the
                                        brokerage firm through which you own
                                        your interest for the relevant deadline.
                                        If you give us your Official Notice of
                                        Exchange after 12:00 p.m. (New York City
                                        time) on the last Trading Day in that
                                        Exchange Period, your notice will not be
                                        effective, you will not be able to
                                        exchange your Securities until the
                                        following Exchange Period and you will
                                        need to complete all the required steps
                                        if you should wish to exchange your
                                        Securities during any subsequent
                                        Exchange Period.

                                        Since the Securities will be held only
                                        in book-entry form, only DTC may
                                        exercise the Exchange Right with respect
                                        to the Securities. Accordingly,
                                        beneficial owners of Securities that
                                        desire to have all or any portion of
                                        their Securities exchanged must instruct
                                        the participant through which they own
                                        their interest to direct DTC to exercise
                                        the Exchange Right on their behalf by
                                        forwarding the Official Notice of
                                        Exchange to us as discussed above. In
                                        order to ensure that we receive the
                                        instructions on a particular day, the
                                        applicable beneficial owner must so
                                        instruct the participant through which
                                        it owns its interest before that
                                        participant's deadline for accepting
                                        instructions from their customers. All
                                        instructions given to participants from
                                        beneficial owners of Securities relating
                                        to the right to exchange their
                                        Securities will be irrevocable.

                                        In addition, at the time instructions
                                        are given, each beneficial owner must
                                        direct the participant through which it
                                        owns its interest to transfer its
                                        book-entry interest in the related
                                        Securities, on DTC's records, to the
                                        Trustee on our behalf.

                                        We may request that MS & Co. purchase
                                        the Securities you exchange for the Net
                                        Entitlement Value that would otherwise
                                        have been payable by us. MS & Co.'s
                                        agreement to purchase the exchanged
                                        Securities will be without prejudice to
                                        your right to proceed against us upon
                                        any failure of MS & Co. to settle the
                                        purchase when due. Any Securities
                                        purchased by MS & Co. will remain
                                        outstanding.

Minimum Exchange Amount................ In order to exercise your Exchange
                                        Right, you must exchange at least 10,000
                                        Securities, or multiples of 100 in
                                        excess of 10,000. The Minimum Exchange
                                        Amount will not apply so long as a
                                        Credit Exchange Event has occurred and
                                        is continuing.

Exchange Period........................ The first ten calendar days of March,
                                        June, September and December in each
                                        year, beginning in March 2005.

Exchange Date.......................... The fifth Trading Day following the
                                        Exchange Valuation Date.

Issuer Redemption Right ............... Beginning in June 2007, we may redeem
                                        the Securities for mandatory exchange in
                                        whole, but not in part, on any Exchange
                                        Date upon at least 10 but not more than
                                        30 calendar days' notice prior to that
                                        Exchange Date to holders of the
                                        Securities. If we redeem the Securities,
                                        we will pay to the Trustee for delivery
                                        to you on the Exchange Date, the Net
                                        Entitlement Value determined on the
                                        related Exchange Valuation Date.

Trading Day............................ A day, as determined by the Calculation
                                        Agent, on which trading is generally
                                        conducted on the New York Stock
                                        Exchange, which we refer to as the NYSE,
                                        the American Stock Exchange, the Nasdaq
                                        National Market, the Chicago Mercantile
                                        Exchange and the CBOE and in the
                                        over-the-counter market for equity
                                        securities in the United States.

<PAGE>

Discontinuance of the BXM Index;
Successor Index; Alteration of
Method of                               If the CBOE announces the discontinuance
Calculation..................           or suspension of publication of the BXM
                                        Index and, prior to the roll date
                                        preceding such discontinuance or
                                        suspension (the "Discontinuance Roll
                                        Date"), the CBOE or another entity
                                        publishes a successor or substitute
                                        index that MS & Co., as the Calculation
                                        Agent, determines, in its sole
                                        discretion, to be substantially
                                        identical to the discontinued or
                                        suspended BXM Index (such index being
                                        referred to in this pricing supplement
                                        as a "Successor Index"), then any Index
                                        Value beginning on and subsequent to the
                                        Discontinuance Roll Date will be
                                        determined by reference to the value of
                                        such Successor Index. If the Calculation
                                        Agent is unable to identify a Successor
                                        Index prior to the Discontinuance Roll
                                        Date, then beginning on the
                                        Discontinuance Roll Date, the
                                        Calculation Agent or one of its
                                        affiliates (as selected by the
                                        Calculation Agent) will determine the
                                        Index Value on a daily basis and the
                                        Calculation Agent will undertake to
                                        identify and designate, in its sole
                                        discretion, a Successor Index prior to
                                        the roll date immediately following the
                                        Discontinuance Roll Date (the
                                        "Subsequent Roll Date"). Upon the
                                        designation of such Successor Index by
                                        the Calculation Agent, any Index Value
                                        will be determined by reference to the
                                        value of such Successor Index upon such
                                        designation. If, however, the
                                        Calculation Agent is unable to identify
                                        a Successor Index prior to the fifth
                                        scheduled Trading Day preceding the
                                        Subsequent Roll Date, then the Maturity
                                        Valuation Date will be deemed
                                        accelerated to the Trading Day
                                        immediately prior to the Subsequent Roll
                                        Date, and the Calculation Agent will
                                        determine the Net Entitlement Value on
                                        that date.

                                        If the CBOE discontinues or suspends
                                        publication of the BXM Index without
                                        prior notice, then upon such
                                        discontinuance or suspension the
                                        Calculation Agent or one of its
                                        affiliates will determine the Index
                                        Value on a daily basis and the
                                        Calculation Agent will undertake to
                                        identify and designate, in its sole
                                        discretion, a Successor Index prior to
                                        the roll date following such
                                        discontinuance or suspension. Upon the
                                        designation of such Successor Index by
                                        the Calculation Agent, any Index Value
                                        will be determined by reference to the
                                        value of such Successor Index upon such
                                        designation. If the Calculation Agent is
                                        unable to identify a Successor Index
                                        prior to the fifth Trading Day preceding
                                        the roll date following such
                                        discontinuance or suspension, then the
                                        Maturity Valuation Date will be deemed
                                        accelerated to the Trading Day
                                        immediately prior to the roll date
                                        following such discontinuance or
                                        suspension, and the Calculation Agent
                                        will determine the Net Entitlement Value
                                        on that date.

                                        In the event that the Calculation Agent
                                        or one of its affiliates is required to
                                        determine the Index Value pursuant to
                                        the preceding two paragraphs, the Index
                                        Value will be computed by the
                                        Calculation Agent or one of its
                                        affiliates in accordance with the
                                        formula for and method of calculating
                                        the BXM Index last in effect prior to
                                        the discontinuance or suspension, using
                                        the closing level (in the case of the
                                        S&P 500 Index) and closing price (in the
                                        case of the S&P 500 Index call option)
                                        (or, if trading in the relevant
                                        securities has been materially suspended
                                        or materially limited, its good faith
                                        estimate of the closing price that would
                                        have prevailed but for that suspension
                                        or limitation) at the close of the
                                        principal trading session of the
                                        Relevant Exchange on that date of the
                                        securities most recently comprising the
                                        BXM Index. Notwithstanding these
                                        alternative arrangements, discontinuance
                                        of the publication of the BXM Index may
                                        adversely affect the value of the
                                        Securities.

                                        If at any time the method of calculating
                                        the BXM Index or a Successor Index, or
                                        the value thereof, is changed in a
                                        material respect, or if the BXM Index or
                                        a Successor Index is in any other way
                                        modified so that such index does not, in
                                        the opinion of the Calculation Agent,
                                        fairly represent the value of the BXM
                                        Index or that Successor Index had such
                                        changes or modifications not been made,
                                        then, from and after such time, the
                                        Calculation Agent will, at the close of
                                        business in New York City on each date
                                        on which the Index Value is to be
                                        determined, make such calculations and
                                        adjustments as, in the good faith
                                        judgment of the Calculation Agent, may
                                        be necessary in order to arrive at a
                                        value of an index comparable to the BXM
                                        Index or such Successor Index, as the
                                        case may be, as if such changes or
                                        modifications had not been made, and the
                                        Calculation Agent will calculate the
                                        Index Value with reference to the BXM
                                        Index or such Successor Index, as
                                        adjusted. Accordingly, if the method of
                                        calculating the BXM Index or a Successor
                                        Index is modified so that the value of
                                        such index is a fraction of what it
                                        would have been if it had not been
                                        modified (e.g., due to a split in the
                                        index), then the Calculation Agent will
                                        adjust such index in order to arrive at
                                        a value of the BXM Index or such
                                        Successor Index as if it had not been
                                        modified (e.g., as if such split had not
                                        occurred).

Credit Exchange Event.................. If our senior debt rating is downgraded
                                        below A- by Standard & Poor's or below
                                        A3 by Moody's (or below the equivalent
                                        ratings of any successor to Standard &
                                        Poor's or Moody's), a Credit Exchange
                                        Event will occur. So long as a Credit
                                        Exchange Event has occurred and is
                                        continuing, the Minimum Exchange Amount
                                        will not apply. We will instruct the
                                        Trustee to notify you upon the
                                        occurrence of a Credit Exchange Event.

Events of Default...................... Events of default under the Securities
                                        will include, among other things,
                                        default in payment of any principal
                                        (i.e., payment of the Net Entitlement
                                        Value at maturity or upon exchange or
                                        redemption) and events of bankruptcy,
                                        insolvency or reorganization with
                                        respect to us. Upon acceleration of the
                                        Securities following the occurrence of
                                        an event of default, holders will be
                                        entitled to receive their Net
                                        Entitlement Value calculated by the
                                        Calculation Agent as of the date of the
                                        acceleration, provided that if prior to
                                        the date of acceleration you have
                                        submitted an Official Notice of Exchange
                                        in accordance with your Exchange Right,
                                        the amount you will be entitled to
                                        receive will equal the Net Entitlement
                                        Value calculated as of the Exchange
                                        Valuation Date.

Calculation Agent...................... MS & Co.

                                        All calculations with respect to the Net
                                        Entitlement Value will be rounded to the
                                        nearest one hundred-thousandth, with
                                        five one-millionths rounded upward
                                        (e.g., .876545 would be rounded to
                                        .87655); all dollar amounts related to
                                        determination of the amount of cash
                                        payable per Security will be rounded to
                                        the nearest ten-thousandth, with five
                                        one hundred-thousandths rounded upward
                                        (e.g., .76545 would be rounded up to
                                        .7655); and all dollar amounts paid on
                                        the aggregate number of Securities will
                                        be rounded to the nearest cent, with
                                        one-half cent rounded upward.

                                        The Calculation Agent is solely
                                        responsible for determining the Net
                                        Entitlement Value. All determinations
                                        made by the Calculation Agent will be at
                                        the sole discretion of the Calculation
                                        Agent and will, in the absence of
                                        manifest error, be conclusive for all
                                        purposes and binding on us and holders
                                        of the Securities.

                                        Because the Calculation Agent is our
                                        affiliate, the economic interests of the
                                        Calculation Agent may be adverse to your
                                        interests as an investor in the
                                        Securities, including with respect to
                                        certain determinations and judgments
                                        that the Calculation Agent must make in
                                        determining the Initial Index Value, any
                                        Index Value or whether a Market
                                        Disruption Event has occurred.

<PAGE>

Market Disruption Event................ "Market Disruption Event" means, (i) the
                                        occurrence or existence of a suspension,
                                        absence or material limitation of
                                        trading of stocks then constituting 20%
                                        or more of the value of the S&P 500
                                        Index (or the relevant Successor Index)
                                        on the Relevant Exchanges for such
                                        securities for the same period of
                                        trading longer than two hours or during
                                        the one-half hour period preceding the
                                        close of the principal trading session
                                        on such Relevant Exchange; (ii) a
                                        breakdown or failure in the price and
                                        trade reporting systems of any Relevant
                                        Exchange as a result of which the
                                        reported trading prices for stocks then
                                        constituting 20% or more of the value of
                                        the S&P 500 Index (or the relevant
                                        Successor Index) during the last
                                        one-half hour preceding the close of the
                                        principal trading session on such
                                        Relevant Exchange are materially
                                        inaccurate; or (iii) the suspension,
                                        material limitation or absence of
                                        trading on any major U.S. securities
                                        market for trading in futures or options
                                        contracts or exchange traded funds
                                        related to the BXM Index or the S&P 500
                                        Index (or the relevant Successor Index)
                                        for more than two hours of trading or
                                        during the one-half hour period
                                        preceding the close of the principal
                                        trading session on such market. If
                                        trading in a security included in the
                                        S&P 500 Index or the BXM Index is
                                        materially suspended or materially
                                        limited at that time, then the relevant
                                        percentage contribution of that security
                                        to the value of the S&P 500 Index or the
                                        BXM Index, as the case may be, shall be
                                        based on a comparison of (x) the portion
                                        of the value of that index attributable
                                        to that security relative to (y) the
                                        overall value of that index, in each
                                        case immediately before that suspension
                                        or limitation.

                                        For purposes of determining whether a
                                        Market Disruption Event has occurred:
                                        (1) a limitation on the hours or number
                                        of days of trading will not constitute a
                                        Market Disruption Event if it results
                                        from an announced change in the regular
                                        business hours of the Relevant Exchange
                                        or market; (2) a decision to permanently
                                        discontinue trading in the relevant
                                        futures or options contract or exchange
                                        traded fund will not constitute a Market
                                        Disruption Event; (3) limitations
                                        pursuant to the rules of any Relevant
                                        Exchange similar to NYSE Rule 80A (or
                                        any applicable rule or regulation
                                        enacted or promulgated by any other
                                        self-regulatory organization or any
                                        government agency of scope similar to
                                        NYSE Rule 80A as determined by the
                                        Calculation Agent) on trading during
                                        significant market fluctuations will
                                        constitute a suspension, absence or
                                        material limitation of trading; (4) a
                                        suspension of trading in futures or
                                        options contracts on the BXM Index or
                                        the S&P 500 Index by the primary
                                        securities market trading in such
                                        contracts by reason of (a) a price
                                        change exceeding limits set by such
                                        exchange or market, (b) an imbalance of
                                        orders relating to such contracts or (c)
                                        a disparity in bid and ask quotes
                                        relating to such contracts will
                                        constitute a suspension, absence or
                                        material limitation of trading in
                                        futures or options contracts related to
                                        the BXM Index or the S&P 500 Index and
                                        (5) a "suspension, absence or material
                                        limitation of trading" on any Relevant
                                        Exchange or on the primary market on
                                        which futures or options contracts
                                        related to the BXM Index or the S&P 500
                                        Index are traded will not include any
                                        time when such market is itself closed
                                        for trading under ordinary
                                        circumstances.

United States Federal Income
Taxation............................... The Issuer, by its sale of the
                                        Securities, and the holder of the
                                        Securities (and any successor holder of,
                                        or holder of a beneficial interest in,
                                        the Securities), by its respective
                                        purchase hereof, agree (in the absence
                                        of an administrative determination or
                                        judicial ruling to the contrary) to
                                        characterize the Securities as prepaid
                                        cash settlement forward contracts with
                                        respect to the BXM Index that (i) at the
                                        time of issuance of the Securities you
                                        pay us an amount equal to $10 per
                                        Security in consideration for our
                                        obligation to deliver to you at
                                        maturity, or upon exchange or redemption
                                        a cash amount equal to the Net
                                        Entitlement Value based on the
                                        applicable Index Value and (ii) at
                                        maturity, or upon exchange or redemption
                                        we will deliver to you a cash amount
                                        equal to the Net Entitlement Value based
                                        on the applicable Index Value in full
                                        satisfaction of our obligation under the
                                        prepaid cash settlement forward
                                        contract.

        Morgan Stanley, a Delaware corporation (together with its successors and
assigns, the "Issuer"), for value received, hereby promises to pay to CEDE &
Co., or registered assignees, the principal sum of U.S.$ (UNITED STATES DOLLARS
), on the Maturity Date specified above (except to the extent redeemed or repaid
prior to maturity) and to pay interest thereon at the Interest Rate per annum
specified above, from and including the Interest Accrual Date specified above
until the principal hereof is paid or duly made available for payment weekly,
monthly, quarterly, semiannually or annually in arrears as specified above as
the Interest Payment Period on each Interest Payment Date (as specified above),
commencing on the Interest Payment Date next succeeding the Interest Accrual
Date specified above, and at maturity (or on any redemption or repayment date);
provided, however, that if the Interest Accrual Date occurs between a Record
Date, as defined below, and the next succeeding Interest Payment Date, interest
payments will commence on the second Interest Payment Date succeeding the
Interest Accrual Date to the registered holder of this Note on the Record Date
with respect to such second Interest Payment Date; and provided, further, that
if this Note is subject to "Annual Interest Payments," interest payments shall
be made annually in arrears and the term "Interest Payment Date" shall be deemed
to mean the first day of March in each year.

        Interest on this Note will accrue from and including the most recent
date to which interest has been paid or duly provided for, or, if no interest
has been paid or duly provided for, from and including the Interest Accrual
Date, until but excluding the date the principal hereof has been paid or duly
made available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, subject to certain exceptions
described herein, be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the date 15
calendar days prior to such Interest Payment Date (whether or not a Business Day
(as defined below)) (each such date, a "Record Date"); provided, however, that
interest payable at maturity (or any redemption or repayment date) will be
payable to the person to whom the principal hereof shall be payable. As used
herein, "Business Day" means any day, other than a Saturday or Sunday, (a) that
is neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulation to close (x) in The City of New York
or (y) if this Note is denominated in a Specified Currency other than U.S.
dollars, euro or Australian dollars, in the principal financial center of the
country of the Specified Currency, or (z) if this Note is denominated in
Australian dollars, in Sydney and (b) if this Note is denominated in euro, that
is also a day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer System ("TARGET") is operating (a "TARGET Settlement Day").

        Payment of the principal of this Note, any premium and the interest due
at maturity (or any redemption or repayment date), unless this Note is
denominated in a Specified Currency other than U.S. dollars and is to be paid in
whole or in part in such Specified Currency, will be made in immediately
available funds upon surrender of this Note at the office or agency of the
Paying Agent, as defined on the reverse hereof, maintained for that purpose in
the Borough of Manhattan, The City of New York, or at such other paying agency
as the Issuer may determine, in U.S. dollars. U.S. dollar payments of interest,
other than interest due at maturity or on any date of redemption or repayment,
will be made by U.S. dollar check mailed to the address of the person entitled
thereto as such address shall appear in the Note register. A holder of U.S.
$10,000,000 (or the equivalent in a Specified Currency) or more in aggregate
principal amount of Notes having the same Interest Payment Date, the interest on
which is payable in U.S. dollars, shall be entitled to receive payments of
interest, other than interest due at maturity or on any date of redemption or
repayment, by wire transfer of immediately available funds if appropriate wire
transfer instructions have been received by the Paying Agent in writing not less
than 15 calendar days prior to the applicable Interest Payment Date.

        If this Note is denominated in a Specified Currency other than U.S.
dollars, and the holder does not elect (in whole or in part) to receive payment
in U.S. dollars pursuant to the next succeeding paragraph, payments of interest,
principal or any premium with regard to this Note will be made by wire transfer
of immediately available funds to an account maintained by the holder hereof
with a bank located outside the United States if appropriate wire transfer
instructions have been received by the Paying Agent in writing, with respect to
payments of interest, on or prior to the fifth Business Day after the applicable
Record Date and, with respect to payments of principal or any premium, at least
ten Business Days prior to the Maturity Date or any redemption or repayment
date, as the case may be; provided that, if payment of interest, principal or
any premium with regard to this Note is payable in euro, the account must be a
euro account in a country for which the euro is the lawful currency, provided,
further, that if such wire transfer instructions are not received, such payments
will be made by check payable in such Specified Currency mailed to the address
of the person entitled thereto as such address shall appear in the Note
register; and provided, further, that payment of the principal of this Note, any
premium and the interest due at maturity (or on any redemption or repayment
date) will be made upon surrender of this Note at the office or agency referred
to in the preceding paragraph.

        If so indicated on the face hereof, the holder of this Note, if
denominated in a Specified Currency other than U.S. dollars, may elect to
receive all or a portion of payments on this Note in U.S. dollars by
transmitting a written request to the Paying Agent, on or prior to the fifth
Business Day after such Record Date or at least ten Business Days prior to the
Maturity Date or any redemption or repayment date, as the case may be. Such
election shall remain in effect unless such request is revoked by written notice
to the Paying Agent as to all or a portion of payments on this Note at least
five Business Days prior to such Record Date, for payments of interest, or at
least ten calendar days prior to the Maturity Date or any redemption or
repayment date, for payments of principal, as the case may be.

        If the holder elects to receive all or a portion of payments of
principal of, premium, if any, and interest on this Note, if denominated in a
Specified Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate
Agent (as defined on the reverse hereof) will convert such payments into U.S.
dollars. In the event of such an election, payment in respect of this Note will
be based upon the exchange rate as determined by the Exchange Rate Agent based
on the highest bid quotation in The City of New York received by such Exchange
Rate Agent at approximately 11:00 a.m., New York City time, on the second
Business Day preceding the applicable payment date from three recognized foreign
exchange dealers (one of which may be the Exchange Rate Agent unless such
Exchange Rate Agent is an affiliate of the Issuer) for the purchase by the
quoting dealer of the Specified Currency for U.S. dollars for settlement on such
payment date in the amount of the Specified Currency payable in the absence of
such an election to such holder and at which the applicable dealer commits to
execute a contract. If such bid quotations are not available, such payment will
be made in the Specified Currency. All currency exchange costs will be borne by
the holder of this Note by deductions from such payments.

        Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall
not be entitled to any benefit under the Senior Indenture, as defined on the
reverse hereof, or be valid or obligatory for any purpose.

<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

DATED:
                                           MORGAN STANLEY

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

TRUSTEE'S CERTIFICATE OF
    AUTHENTICATION

This is one of the Notes referred
    to in the within-mentioned
    Senior Indenture.

JPMORGAN CHASE BANK, N.A.,
    as Trustee

By:
         ---------------------------
         Authorized Officer

<PAGE>

                           FORM OF REVERSE OF SECURITY

        This Note is one of a duly authorized issue of Senior Global Medium-Term
Notes, Series F, having maturities more than nine months from the date of issue
(the "Notes") of the Issuer. The Notes are issuable under a Senior Indenture,
dated as of November 1, 2004, between the Issuer and JPMorgan Chase Bank, N.A.,
as Trustee (the "Trustee," which term includes any successor trustee under the
Senior Indenture) (as may be amended or supplemented from time to time, the
"Senior Indenture"), to which Senior Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities of the Issuer, the Trustee and
holders of the Notes and the terms upon which the Notes are, and are to be,
authenticated and delivered. The Issuer has appointed JPMorgan Chase Bank, N.A.
at its corporate trust office in The City of New York as the paying agent (the
"Paying Agent," which term includes any additional or successor Paying Agent
appointed by the Issuer) with respect to the Notes. The terms of individual
Notes may vary with respect to interest rates, interest rate formulas, issue
dates, maturity dates, or otherwise, all as provided in the Senior Indenture. To
the extent not inconsistent herewith, the terms of the Senior Indenture are
hereby incorporated by reference herein.

        Unless otherwise indicated on the face hereof, this Note will not be
subject to any sinking fund and, unless otherwise provided on the face hereof in
accordance with the provisions of the following two paragraphs, will not be
redeemable or subject to repayment at the option of the holder prior to
maturity.

        If so indicated on the face hereof, this Note may be redeemed in whole
or in part at the option of the Issuer on or after the Initial Redemption Date
specified on the face hereof on the terms set forth on the face hereof, together
with interest accrued and unpaid hereon to the date of redemption. If this Note
is subject to "Annual Redemption Percentage Reduction," the Initial Redemption
Percentage indicated on the face hereof will be reduced on each anniversary of
the Initial Redemption Date by the Annual Redemption Percentage Reduction
specified on the face hereof until the redemption price of this Note is 100% of
the principal amount hereof, together with interest accrued and unpaid hereon to
the date of redemption. Notice of redemption shall be mailed to the registered
holders of the Notes designated for redemption at their addresses as the same
shall appear on the Note register not less than 30 nor more than 60 calendar
days prior to the date fixed for redemption or within the Redemption Notice
Period specified on the face hereof, subject to all the conditions and
provisions of the Senior Indenture. In the event of redemption of this Note in
part only, a new Note or Notes for the amount of the unredeemed portion hereof
shall be issued in the name of the holder hereof upon the cancellation hereof.

        If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments of
$1,000 or, if this Note is denominated in a Specified Currency other than U.S.
dollars, in increments of 1,000 units of such Specified Currency (provided that
any remaining principal amount hereof shall not be less than the minimum
authorized denomination hereof) at the option of the holder hereof at a price
equal to 100% of the principal amount to be repaid, together with interest
accrued and unpaid hereon to the date of repayment, provided that if this Note
is issued with original issue discount, this Note will be repayable on the
applicable Optional Repayment Date or Dates at the price(s) specified on the
face hereof. For this Note to be repaid at the option of the holder hereof, the
Paying Agent must receive at its corporate trust office in the Borough of
Manhattan, The City of New York, at least 15 but not more than 30 calendar days
prior to the date of repayment, (i) this Note with the form entitled "Option to
Elect Repayment" below duly completed or (ii) a telegram, telex, facsimile
transmission or a letter from a member of a national securities exchange or the
National Association of Securities Dealers, Inc. or a commercial bank or a trust
company in the United States setting forth the name of the holder of this Note,
the principal amount hereof, the certificate number of this Note or a
description of this Note's tenor and terms, the principal amount hereof to be
repaid, a statement that the option to elect repayment is being exercised
thereby and a guarantee that this Note, together with the form entitled "Option
to Elect Repayment" duly completed, will be received by the Paying Agent not
later than the fifth Business Day after the date of such telegram, telex,
facsimile transmission or letter; provided, that such telegram, telex, facsimile
transmission or letter shall only be effective if this Note and form duly
completed are received by the Paying Agent by such fifth Business Day. Exercise
of such repayment option by the holder hereof shall be irrevocable. In the event
of repayment of this Note in part only, a new Note or Notes for the amount of
the unpaid portion hereof shall be issued in the name of the holder hereof upon
the cancellation hereof.

        Interest payments on this Note will include interest accrued to but
excluding the Interest Payment Dates or the Maturity Date (or any earlier
redemption or repayment date), as the case may be. Unless otherwise provided on
the face hereof, interest payments for this Note will be computed and paid on
the basis of a 360-day year of twelve 30-day months.

        In the case where the Interest Payment Date or the Maturity Date (or any
redemption or repayment date) does not fall on a Business Day, payment of
interest, premium, if any, or principal otherwise payable on such date need not
be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on the Interest Payment Date or on the
Maturity Date (or any redemption or repayment date), and no interest on such
payment shall accrue for the period from and after the Interest Payment Date or
the Maturity Date (or any redemption or repayment date) to such next succeeding
Business Day.

        This Note and all the obligations of the Issuer hereunder are direct,
unsecured obligations of the Issuer and rank without preference or priority
among themselves and pari passu with all other existing and future unsecured and
unsubordinated indebtedness of the Issuer, subject to certain statutory
exceptions in the event of liquidation upon insolvency.

        This Note, and any Note or Notes issued upon transfer or exchange
hereof, is issuable only in fully registered form, without coupons, and, if
denominated in U.S. dollars, unless otherwise stated above, is issuable only in
denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess
thereof. If this Note is denominated in a Specified Currency other than U.S.
dollars, then, unless a higher minimum denomination is required by applicable
law, it is issuable only in denominations of the equivalent of U.S. $1,000
(rounded to an integral multiple of 1,000 units of such Specified Currency), or
any amount in excess thereof which is an integral multiple of 1,000 units of
such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency
published by the Federal Reserve Bank of New York (the "Market Exchange Rate")
on the Business Day immediately preceding the date of issuance.

        The Trustee has been appointed registrar for the Notes, and the Trustee
will maintain at its office in The City of New York a register for the
registration and transfer of Notes. This Note may be transferred at the
aforesaid office of the Trustee by surrendering this Note for cancellation,
accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee and duly executed by the registered holder hereof in
person or by the holder's attorney duly authorized in writing, and thereupon the
Trustee shall issue in the name of the transferee or transferees, in exchange
herefor, a new Note or Notes having identical terms and provisions and having a
like aggregate principal amount in authorized denominations, subject to the
terms and conditions set forth herein; provided, however, that the Trustee will
not be required (i) to register the transfer of or exchange any Note that has
been called for redemption in whole or in part, except the unredeemed portion of
Notes being redeemed in part, (ii) to register the transfer of or exchange any
Note if the holder thereof has exercised his right, if any, to require the
Issuer to repurchase such Note in whole or in part, except the portion of such
Note not required to be repurchased, or (iii) to register the transfer of or
exchange Notes to the extent and during the period so provided in the Senior
Indenture with respect to the redemption of Notes. Notes are exchangeable at
said office for other Notes of other authorized denominations of equal aggregate
principal amount having identical terms and provisions. All such exchanges and
transfers of Notes will be free of charge, but the Issuer may require payment of
a sum sufficient to cover any tax or other governmental charge in connection
therewith. All Notes surrendered for exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Trustee and
executed by the registered holder in person or by the holder's attorney duly
authorized in writing. The date of registration of any Note delivered upon any
exchange or transfer of Notes shall be such that no gain or loss of interest
results from such exchange or transfer.

        In case this Note shall at any time become mutilated, defaced or be
destroyed, lost or stolen and this Note or evidence of the loss, theft or
destruction thereof (together with the indemnity hereinafter referred to and
such other documents or proof as may be required in the premises) shall be
delivered to the Trustee, the Issuer in its discretion may execute a new Note of
like tenor in exchange for this Note, but, if this Note is destroyed, lost or
stolen, only upon receipt of evidence satisfactory to the Trustee and the Issuer
that this Note was destroyed or lost or stolen and, if required, upon receipt
also of indemnity satisfactory to each of them. All expenses and reasonable
charges associated with procuring such indemnity and with the preparation,
authentication and delivery of a new Note shall be borne by the owner of the
Note mutilated, defaced, destroyed, lost or stolen.

        The Senior Indenture provides that (a) if an Event of Default (as
defined in the Senior Indenture) due to the default in payment of principal of,
premium, if any, or interest on, any series of debt securities issued under the
Senior Indenture, including the series of Senior Medium-Term Notes of which this
Note forms a part, or due to the default in the performance or breach of any
other covenant or warranty of the Issuer applicable to the debt securities of
such series but not applicable to all outstanding debt securities issued under
the Senior Indenture shall have occurred and be continuing, either the Trustee
or the holders of not less than 25% in aggregate principal amount of the
outstanding debt securities of each affected series, voting as one class, by
notice in writing to the Issuer and to the Trustee, if given by the
securityholders, may then declare the principal of all debt securities of all
such series and interest accrued thereon to be due and payable immediately and
(b) if an Event of Default due to a default in the performance of any other of
the covenants or agreements in the Senior Indenture applicable to all
outstanding debt securities issued thereunder, including this Note, or due to
certain events of bankruptcy, insolvency or reorganization of the Issuer, shall
have occurred and be continuing, either the Trustee or the holders of not less
than 25% in aggregate principal amount of all outstanding debt securities issued
under the Senior Indenture, voting as one class, by notice in writing to the
Issuer and to the Trustee, if given by the securityholders, may declare the
principal of all such debt securities and interest accrued thereon to be due and
payable immediately, but upon certain conditions such declarations may be
annulled and past defaults may be waived (except a continuing default in payment
of principal or premium, if any, or interest on such debt securities) by the
holders of a majority in aggregate principal amount of the debt securities of
all affected series then outstanding.

        If the face hereof indicates that this Note is subject to "Modified
Payment upon Acceleration or Redemption," then (i) if the principal hereof is
declared to be due and payable as described in the preceding paragraph, the
amount of principal due and payable with respect to this Note shall be limited
to the aggregate principal amount hereof multiplied by the sum of the Issue
Price specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of declaration, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of declaration), (ii) for the
purpose of any vote of securityholders taken pursuant to the Senior Indenture
prior to the acceleration of payment of this Note, the principal amount hereof
shall equal the amount that would be due and payable hereon, calculated as set
forth in clause (i) above, if this Note were declared to be due and payable on
the date of any such vote and (iii) for the purpose of any vote of
securityholders taken pursuant to the Senior Indenture following the
acceleration of payment of this Note, the principal amount hereof shall equal
the amount of principal due and payable with respect to this Note, calculated as
set forth in clause (i) above.

        If the face hereof indicates that this Note is subject to "Tax
Redemption and Payment of Additional Amounts," this Note may be redeemed, as a
whole, at the option of the Issuer at any time prior to maturity, upon the
giving of a notice of redemption as described below, at a redemption price equal
to 100% of the principal amount hereof, together with accrued interest to the
date fixed for redemption (except that if this Note is subject to "Modified
Payment upon Acceleration or Redemption," such redemption price would be limited
to the aggregate principal amount hereof multiplied by the sum of the Issue
Price specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of redemption, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of redemption) (the "Amortized
Amount")), if the Issuer determines that, as a result of any change in or
amendment to the laws, or any regulations or rulings promulgated thereunder, of
the United States or of any political subdivision or taxing authority thereof or
therein affecting taxation, or any change in official position regarding the
application or interpretation of such laws, regulations or rulings, which change
or amendment becomes effective on or after the Initial Offering Date hereof, the
Issuer has or will become obligated to pay Additional Amounts, as defined below,
with respect to this Note as described below. Prior to the giving of any notice
of redemption pursuant to this paragraph, the Issuer shall deliver to the
Trustee (i) a certificate stating that the Issuer is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions
precedent to the right of the Issuer to so redeem have occurred, and (ii) an
opinion of independent legal counsel satisfactory to the Trustee to such effect
based on such statement of facts; provided that no such notice of redemption
shall be given earlier than 60 calendar days prior to the earliest date on which
the Issuer would be obligated to pay such Additional Amounts if a payment in
respect of this Note were then due.

        Notice of redemption will be given not less than 30 nor more than 60
calendar days prior to the date fixed for redemption or within the Redemption
Notice Period specified on the face hereof, which date and the applicable
redemption price will be specified in the notice.

        If the face hereof indicates that this Note is subject to "Tax
Redemption and Payment of Additional Amounts," the Issuer will, subject to
certain exceptions and limitations set forth below, pay such additional amounts
(the "Additional Amounts") to the holder of this Note who is a United States
Alien as may be necessary in order that every net payment of the principal of
and interest on this Note and any other amounts payable on this Note, after
withholding or deduction for or on account of any present or future tax,
assessment or governmental charge imposed upon or as a result of such payment by
the United States, or any political subdivision or taxing authority thereof or
therein, will not be less than the amount provided for in this Note to be then
due and payable. The Issuer will not, however, make any payment of Additional
Amounts to any such holder who is a United States Alien for or on account of:

               (a) any present or future tax, assessment or other governmental
        charge that would not have been so imposed but for (i) the existence of
        any present or former connection between such holder, or between a
        fiduciary, settlor, beneficiary, member or shareholder of such holder,
        if such holder is an estate, a trust, a partnership or a corporation for
        United States federal income tax purposes, and the United States,
        including, without limitation, such holder, or such fiduciary, settlor,
        beneficiary, member or shareholder, being or having been a citizen or
        resident thereof or being or having been engaged in a trade or business
        or present therein or having, or having had, a permanent establishment
        therein or (ii) the presentation by or on behalf of the holder of this
        Note for payment on a date more than 15 calendar days after the date on
        which such payment became due and payable or the date on which payment
        thereof is duly provided for, whichever occurs later;

               (b) any estate, inheritance, gift, sales, transfer, excise or
        personal property tax or any similar tax, assessment or governmental
        charge;

               (c) any tax, assessment or other governmental charge imposed by
        reason of such holder's past or present status as a personal holding
        company or foreign personal holding company or controlled foreign
        corporation or passive foreign investment company with respect to the
        United States or as a corporation which accumulates earnings to avoid
        United States federal income tax or as a private foundation or other
        tax-exempt organization or a bank receiving interest under Section
        881(c)(3)(A) of the Internal Revenue Code of 1986, as amended;

               (d) any tax, assessment or other governmental charge that is
        payable otherwise than by withholding or deduction from payments on or
        in respect of this Note;

               (e) any tax, assessment or other governmental charge required to
        be withheld by any Paying Agent from any payment of principal of, or
        interest on, this Note, if such payment can be made without such
        withholding by any other Paying Agent in a city in Western Europe;

               (f) any tax, assessment or other governmental charge that would
        not have been imposed but for the failure to comply with certification,
        information or other reporting requirements concerning the nationality,
        residence or identity of the holder or beneficial owner of this Note, if
        such compliance is required by statute or by regulation of the United
        States or of any political subdivision or taxing authority thereof or
        therein as a precondition to relief or exemption from such tax,
        assessment or other governmental charge;

               (g) any tax, assessment or other governmental charge imposed by
        reason of such holder's past or present status as the actual or
        constructive owner of 10% or more of the total combined voting power of
        all classes of stock entitled to vote of the Issuer or as a direct or
        indirect subsidiary of the Issuer; or

               (h) any combination of items (a), (b), (c), (d), (e), (f) or (g).

        In addition, the Issuer shall not be required to make any payment of
Additional Amounts (i) to any such holder where such withholding or deduction is
imposed on a payment to an individual and is required to be made pursuant to any
law implementing or complying with, or introduced in order to conform to, any
European Union Directive on the taxation of savings; or (ii) by or on behalf of
a holder who would have been able to avoid such withholding or deduction by
presenting this Note or the relevant coupon to another Paying Agent in a member
state of the European Union. Nor shall the Issuer pay Additional Amounts with
respect to any payment on this Note to a United States Alien who is a fiduciary
or partnership or other than the sole beneficial owner of such payment to the
extent such payment would be required by the laws of the United States (or any
political subdivision thereof) to be included in the income, for tax purposes,
of a beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been entitled to the
Additional Amounts had such beneficiary, settlor, member or beneficial owner
been the holder of this Note.

        The Senior Indenture permits the Issuer and the Trustee, with the
consent of the holders of not less than a majority in aggregate principal amount
of the debt securities of all series issued under the Senior Indenture then
outstanding and affected (voting as one class), to execute supplemental
indentures adding any provisions to or changing in any manner the rights of the
holders of each series so affected; provided that the Issuer and the Trustee may
not, without the consent of the holder of each outstanding debt security
affected thereby, (a) extend the final maturity of any such debt security, or
reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption thereof,
or change the currency of payment thereof, or modify or amend the provisions for
conversion of any currency into any other currency, or modify or amend the
provisions for conversion or exchange of the debt security for securities of the
Issuer or other entities or for other property or the cash value of the property
(other than as provided in the antidilution provisions or other similar
adjustment provisions of the debt securities or otherwise in accordance with the
terms thereof), or impair or affect the rights of any holder to institute suit
for the payment thereof or (b) reduce the aforesaid percentage in principal
amount of debt securities the consent of the holders of which is required for
any such supplemental indenture.

        Except as set forth below, if the principal of, premium, if any, or
interest on this Note is payable in a Specified Currency other than U.S. dollars
and such Specified Currency is not available to the Issuer for making payments
hereon due to the imposition of exchange controls or other circumstances beyond
the control of the Issuer or is no longer used by the government of the country
issuing such currency or for the settlement of transactions by public
institutions within the international banking community, then the Issuer will be
entitled to satisfy its obligations to the holder of this Note by making such
payments in U.S. dollars on the basis of the Market Exchange Rate on the date of
such payment or, if the Market Exchange Rate is not available on such date, as
of the most recent practicable date; provided, however, that if the euro has
been substituted for such Specified Currency, the Issuer may at its option (or
shall, if so required by applicable law) without the consent of the holder of
this Note effect the payment of principal of, premium, if any, or interest on
any Note denominated in such Specified Currency in euro in lieu of such
Specified Currency in conformity with legally applicable measures taken pursuant
to, or by virtue of, the Treaty establishing the European Community, as amended.
Any payment made under such circumstances in U.S. dollars or euro where the
required payment is in an unavailable Specified Currency will not constitute an
Event of Default. If such Market Exchange Rate is not then available to the
Issuer or is not published for a particular Specified Currency, the Market
Exchange Rate will be based on the highest bid quotation in The City of New York
received by the Exchange Rate Agent at approximately 11:00 a.m., New York City
time, on the second Business Day preceding the date of such payment from three
recognized foreign exchange dealers (the "Exchange Dealers") for the purchase by
the quoting Exchange Dealer of the Specified Currency for U.S. dollars for
settlement on the payment date, in the aggregate amount of the Specified
Currency payable to those holders or beneficial owners of Notes and at which the
applicable Exchange Dealer commits to execute a contract. One of the Exchange
Dealers providing quotations may be the Exchange Rate Agent unless the Exchange
Rate Agent is an affiliate of the Issuer. If those bid quotations are not
available, the Exchange Rate Agent shall determine the market exchange rate at
its sole discretion.

        The "Exchange Rate Agent" shall be Morgan Stanley & Co. Incorporated,
unless otherwise indicated on the face hereof.

        All determinations referred to above made by, or on behalf of, the
Issuer or by, or on behalf of, the Exchange Rate Agent shall be at such entity's
sole discretion and shall, in the absence of manifest error, be conclusive for
all purposes and binding on holders of Notes and coupons.

        So long as this Note shall be outstanding, the Issuer will cause to be
maintained an office or agency for the payment of the principal of and premium,
if any, and interest on this Note as herein provided in the Borough of
Manhattan, The City of New York, and an office or agency in said Borough of
Manhattan for the registration, transfer and exchange as aforesaid of the Notes.

        The Issuer may designate other agencies for the payment of said
principal, premium and interest at such place or places (subject to applicable
laws and regulations) as the Issuer may decide. So long as there shall be such
an agency, the Issuer shall keep the Trustee advised of the names and locations
of such agencies, if any are so designated. If any European Union Directive on
the taxation of savings comes into force, the Issuer will, to the extent
possible as a matter of law, maintain a Paying Agent in a member state of the
European Union that will not be obligated to withhold or deduct tax pursuant to
any such Directive or any law implementing or complying with, or introduced in
order to conform to, such Directive.

        With respect to moneys paid by the Issuer and held by the Trustee or any
Paying Agent for payment of the principal of or interest or premium, if any, on
any Notes that remain unclaimed at the end of two years after such principal,
interest or premium shall have become due and payable (whether at maturity or
upon call for redemption or otherwise), (i) the Trustee or such Paying Agent
shall notify the holders of such Notes that such moneys shall be repaid to the
Issuer and any person claiming such moneys shall thereafter look only to the
Issuer for payment thereof and (ii) such moneys shall be so repaid to the
Issuer. Upon such repayment all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease, without, however, limiting in
any way any obligation that the Issuer may have to pay the principal of or
interest or premium, if any, on this Note as the same shall become due.

        No provision of this Note or of the Senior Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay
the principal of, premium, if any, and interest on this Note at the time, place,
and rate, and in the coin or currency, herein prescribed unless otherwise agreed
between the Issuer and the registered holder of this Note.

        Prior to due presentment of this Note for registration of transfer, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
holder in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and none of the Issuer, the
Trustee or any such agent shall be affected by notice to the contrary. No
recourse shall be had for the payment of the principal of, premium, if any, or
the interest on this Note, for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Senior Indenture or any indenture
supplemental thereto, against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Issuer or of any successor
corporation, either directly or through the Issuer or any successor corporation,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability being,
by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

        This Note shall for all purposes be governed by, and construed in
accordance with, the laws of the State of New York.

        As used herein, the term "United States Alien" means any person who is,
for United States federal income tax purposes, (i) a nonresident alien
individual, (ii) a foreign corporation, (iii) a nonresident alien fiduciary of a
foreign estate or trust or (iv) a foreign partnership one or more of the members
of which is, for United States federal income tax purposes, a nonresident alien
individual, a foreign corporation or a nonresident alien fiduciary of a foreign
estate or trust.

        All terms used in this Note which are defined in the Senior Indenture
and not otherwise defined herein shall have the meanings assigned to them in the
Senior Indenture.

<PAGE>

                                  ABBREVIATIONS

        The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

               TEN COM   -   as tenants in common
               TEN ENT   -   as tenants by the entireties
               JT TEN    -   as joint tenants with right of survivorship and not
                             as tenants in common

UNIF GIFT MIN ACT -                         Custodian
                        -------------------             -------------------
                             (Minor)                          (Cust)
Under Uniform Gifts to Minors Act
                                        ---------------------------------
                                                    (State)

Additional abbreviations may also be used though not in the above list.

        FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

--------------------------------------------------
[PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE]

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
    [PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing such person attorney to transfer such note on the books of the
Issuer, with full power of substitution in the premises.

Dated:
       --------------------------

NOTICE:    The signature to this assignment must correspond with the name as
           written upon the face of the within Note in every particular without
           alteration or enlargement or any change whatsoever.

<PAGE>

                                                                         ANNEX A

                           OFFICIAL NOTICE OF EXCHANGE

Dated:

Morgan Stanley
1585 Broadway
New York, New York 10036

Morgan Stanley & Co. Incorporated, as Calculation Agent
1585 Broadway
New York, New York 10036
Fax No.: (212) 507-5742

Dear Sirs:

        The undersigned holder of the Strategic Total Return Securities due
December 17, 2009, exchangeable for a cash amount based on the CBOE's BXM Index
of Morgan Stanley (CUSIP No. ) (the "Securities") hereby irrevocably elects to
exercise with respect to the number of Securities indicated below, as of the
date hereof, the Exchange Right as described in the pricing supplement dated
November 22, 2004 (the "Pricing Supplement") to the Prospectus Supplement and
Prospectus dated November 10, 2004 related to Registration Statement No.
333-117752. Terms not defined herein have the meanings given to such terms in
the Pricing Supplement. Please date and acknowledge receipt of this notice in
the place provided below on the date of receipt, and fax a copy to the fax
number indicated.

        The undersigned certifies to you that (i) it is, or is duly authorized
to act for, the beneficial owner of the principal amount of the Securities
indicated below its signature (and attaches evidence of such ownership as
provided by the undersigned's position services department or the position
services department of the entity through which the undersigned holds its
Securities); and (ii) it will cause the Securities to be exchanged to be
transferred to the Trustee on the Exchange Date.

                                            Very truly yours,

                                            ------------------------------------

                                            [Name of Holder]

                                            By:
                                               ---------------------------------
                                               [Title]

                                               ---------------------------------
                                               [Tel. No.]

                                               ---------------------------------
                                               [Fax No.]

Number of Securities surrendered for exchange(1):
                                                 ------------------------------
Receipt of the above Official
Notice of Exchange is hereby acknowledged

MORGAN STANLEY, as Issuer
MORGAN STANLEY & CO. INCORPORATED, as Calculation Agent

By: MORGAN STANLEY & CO. INCORPORATED, as Calculation Agent

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

Section 1.01
             ----------------------

Date and time of acknowledgment:
                                ----------------------

--------
1  Minimum 10,000 Securities unless a Credit Exchange Event has occurred and is
   continuing.

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