Document:

SECOND AMENDMENT TO CREDIT AGREEMENT

          SECOND AMENDMENT TO CREDIT AGREEMENT (this "Second Amendment"),  dated
as  of  March  30,  2001,  among  PEAPOD,  INC.,  a  Delaware  corporation  (the
"Borrower"), and KONINKLIJKE AHOLD NV (the "Lender"). All capitalized terms used
herein and not otherwise defined shall have the respective  meanings assigned to
them in the Credit Agreement referred to below.

                              W I T N E S S E T H:
                              -------------------

          WHEREAS, the Borrower and the Lender are parties to a Credit Agreement
dated as of April 14,  2000,  as  amended by the First  Amendment  to the Credit
Agreement dated as of February 26, 2001 (such amendment,  the "First  Amendment"
and, together with credit agreement, the "Credit Agreement");

          WHEREAS,  the  Borrower  desires to, from the  effective  date of this
Second  Amendment  until the date of  receipt  of cash  proceeds  from a debt or
equity financing transaction including, without limitation, a public offering of
capital stock of the Company (the "Financing Transaction"),  increase the amount
of Loans it can incur in any one calendar month under the Credit  Agreement from
$3,000,000 to $6,000,000, and the Lender is willing to consent to such increase;

          WHEREAS,  the  Borrower  has  requested  that  the  Lender  waive  the
condition  under the First  Amendment  that the  Borrower  shall have  delivered
mortgages  with  respect to leasehold  interests  of the  Borrower  prior to the
Borrower making  additional  borrowings in excess of $6,000,000 in the aggregate
and  $3,000,000  in any one month,  and the Lender is willing to consent to such
waiver on the terms and conditions set forth below; and

          WHEREAS, the parties hereto wish to amend the Credit Agreement and the
First Amendment to reflect such changes;

          NOW, THEREFORE, it is agreed that:

          1. Amendments.

          (a) Section 1.01(b) of the Credit  Agreement is hereby amended to read
in its entirety as follows:

          "1.01(b)  The Borrower may not (i) (A) prior to the date of receipt of
          cash  proceeds  by  the  Borrower  from  a debt  or  equity  financing
          transaction  including,  without  limitation,  a  public  offering  of
          capital  stock of the Company  (the  "Financing  Transaction"),  incur
          Loans in excess of  $6,000,000  (exclusive  of Loans made to repay the
          Term Note or other  obligations owing to the Lender or its Affiliates)
          in principal  amount in any calendar  month (or such greater amount as
          the Lender and the Borrower shall agree),  and (B) after the Financing
          Transaction,  incur Loans in excess of $3,000,000  (exclusive of Loans
          made to repay the Term Note or other  obligations  owing to the Lender
          or its Affiliates) in principal  amount in any calendar month (or such
          greater amount as the Lender and the Borrower shall agree), (ii) incur
          Loans more than four times in any calendar month and (iii) incur Loans
          in excess of the amount of the budgeted cash flow  requirements of the
          Borrower  for its  operations  for the two week period  following  the
          Borrowing  thereof,  as set forth in a budget provided by the Borrower
          to the Lender  and  reasonably  acceptable  to the  Lender;  provided,
          however,  it being  understood that the Lender shall not object to the
          amount of the Borrowing  request on the Second  Borrowing  Date to the
          extent such request is for an amount not to exceed $1,500,000."

          (b) Section 6 of the Credit  Agreement is hereby  amended by inserting
therein the following new Section 6.12:

          "6.12  Leasehold  Mortgages.   The  Borrower  shall,  as  promptly  as
          practicable,  but in no event  later  than  the date of the  Financing
          Transaction (i) duly execute and deliver to the Lender  Mortgages with
          respect to real estate leasehold interests of the Borrower,  and shall
          use commercially reasonable efforts to obtain consent and execution of
          such Mortgages by the  owner/lessor of the leased real  proprtery,  as
          reasonably  specified  by the  Lender  in  proper  form for  filing or
          recording  in each  appropriate  public  office,  (ii)  deliver to the
          Lender an opinion of counsel to the  Borrower,  in form and  substance
          satisfactory  to the Lender,  as to the Mortgages and as to such other
          customary  matters as the Lender shall  specify,  and (iii) deliver to
          the Lender such other  documents and  instruments  as the Lender shall
          reasonably specify with respect to the Mortgages.".

          (c) The following new definition is hereby added,  in appropriate  and
alphabetical sequence, in Section 9 of the Credit Agreement:

          "'Financing  Transaction'  shall have the meaning  provided in Section
          1.01(b)."

          (d) Section 2(a) of the First  Amendment is hereby  amended to read in
its entirety as follows:

          "(a) the Borrower has full power and authority to execute, deliver and
     perform this Amendment and each Mortgage  (collectively,  together with the
     UCC financing  statements  referred to in Section 3 below,  the  'Amendment
     Documents')".

          (e) Section 3 of the First  Amendment is hereby amended to read in its
entirety as follows:

          "3.  Conditions to  Effectiveness  and to Additional  Borrowings.  (a)
          Section 1 hereof,  and the  amendments  to the Credit  Agreement  made
          pursuant  thereto,  shall  become  effective  upon the  execution  and
          delivery of  counterparts  of this  Amendment  by the Borrower and the
          Lender;  provided,  however,  that until the delivery to the Lender of
          all documents and instruments specified in paragraphs (i) through (vi)
          below, in form and substance  satisfactory  to the Lender,  the Lender
          shall not  hereafter be  obligated  to lend to the Borrower  more than
          $6,000,000 in aggregate  principal  amount or more than  $3,000,000 in
          any one month (and the  obligation to make any such Loans shall in any
          event be subject to the  satisfaction of the conditions  precedent set
          forth in Section 4B of the Credit  Agreement  before  giving effect to
          the amendments to the Credit Agreement provided for herein):

               (i)   UCC-11 search results for the Borrower and its subsidiaries
               in each jurisdiction specified by the Lender;

               (ii)  UCC  financing statements  with respect to the  Collateral,
               listing the Borrower and/or its subsidiaries, as specified by the
               Lender,  as debtor and the Lender as secured  party and in proper
               form for filing in each jurisdiction specified by the Lender;

               (iii) Patent, trademark and copyright collateral assignments with
               respect to any registered  patents,  trademarks and copyrights of
               the Borrower and its subsidiaries specified by the Lender;

               (iv)  Resolutions of  the  Board  of  Directors  of the  Borrower
               authorizing  the  execution,  delivery  and  performance  of each
               Amendment Document;

               (v)  Opinion of Sidley & Austin, counsel to the Borrower, in form
               and  substance  satisfactory  to the Lender,  as to the Amendment
               Documents,  the transaction  contemplated  thereby and as to such
               other customary matters as the Lender shall specify; and

               (vi)  Such other documents  and  instruments  as the Lender shall
               reasonably specify.".

          3. Representations and Warranties.  The Borrower repeats and reaffirms
the  representations  and  warranties  made  by it in  Section  5 of the  Credit
Agreement  with the same effect as though such  representations  and  warranties
were made on and as of the date hereof (and for such purpose all  references  in
said  representations  and  warranties  to "this  Agreement"  shall refer to the
Credit Agreement as amended hereby),  and the Borrower hereby further represents
and warrants to the Lender that (a) the Borrower has full power and authority to
execute,  deliver and perform this Second  Amendment;  (b) this Second Amendment
has been duly executed and delivered by the Borrower and  constitutes its legal,
valid and binding  obligation,  enforceable  against it in  accordance  with its
terms;  (c) the  execution,  delivery  and  performance  by the Borrower of this
Second  Amendment does not violate,  conflict with or constitute a breach of the
Borrower's   articles  or  certificate  of  incorporation  or  By-law,  any  law
applicable  to it or any court  order,  contract or agreement by which it or its
properties  are bound;  and (d) no  consent,  approval or  authorization  of, or
filing with, any governmental authority,  and no consent of any other Person, is
required in connection with the Borrower's execution,  delivery, and performance
of this Second Amendment, except for those already duly obtained.

          4. Conditions to Effectiveness and to Additional Borrowings. Section 1
hereof, and the amendments to the Credit Agreement made pursuant thereto,  shall
become  effective upon the execution and delivery of counterparts of this Second
Amendment  by the  Borrower  and the  Lender and  delivery  to the Lender of all
documents and instruments specified in paragraphs (a) through (c) below, in form
and substance satisfactory to the Lender:

          (a) Resolutions of the Board of Directors of the Borrower  authorizing
the execution, delivery and performance of this Second Amendment;

          (b) Opinion of Sidley & Austin,  counsel to the Borrower,  in form and
substance satisfactory to the Lender, as to this Second Amendment and as to such
other customary matters as the Lender shall specify; and

          (c)  Such  other   documents  and  instruments  as  the  Lender  shall
reasonably specify.

          5. Miscellaneous.

          (a)  Expenses.  Without  limiting  the  Borrower's  obligations  under
Section 10.01 of the Credit Agreement,  the Borrower agrees to pay all costs and
expenses incurred by the Lender (including, without limitation,  reasonable fees
and  disbursements  of counsel to the Agent) in connection with the preparation,
filing and recordation of this Second Amendment.

          (b) WAIVER OF JURY TRIAL. THE BORROWER  WAIVES,  TO THE FULLEST EXTENT
PERMITTED  BY LAW,  ANY  RIGHT  IT MAY  HAVE TO A  TRIAL  BY JURY OF ANY  CLAIM,
COUNTERCLAIM,  ACTION OR OTHER  PROCEEDING  ARISING  UNDER OR  RELATING  TO THIS
SECOND AMENDMENT AND THE CREDIT AGREEMENT AS AMENDED HEREBY.

          (c) WAIVER OF CERTAIN CLAIMS.  THE BORROWER HEREBY  IRREVOCABLY WAIVES
AND RELEASES ANY CLAIMS FOR  PUNITIVE,  EXEMPLARY OR  CONSEQUENTIAL  DAMAGES (OR
SIMILAR  CLAIMS)  WHICH IT MAY NOW OR AT ANY TIME  HEREAFTER  HAVE  AGAINST  THE
LENDER  HEREUNDER,   UNDER  ANY  CREDIT  DOCUMENT  OR  IN  CONNECTION  WITH  ANY
TRANSACTION CONTEMPLATED HEREIN OR THEREIN.

          (d)  Governing  Law.  This Second  Amendment  shall be governed by and
construed in accordance  with the laws of the State of New York,  without regard
to the  conflict  of laws rules  thereof  which would make the laws of any other
jurisdiction applicable to this Second Amendment.

          (e) Continuing Effectiveness of Credit Agreement.  Except as expressly
amended hereby, all terms, conditions, covenants, representations and warranties
contained in the Credit Agreement or any other Credit  Document,  and all rights
of the Lender and obligations of the Borrower  thereunder,  shall remain in full
force and effect.  The Borrower confirms that the Credit Agreement and all other
Credit  Documents  are in full  force and effect  and that the  Borrower  has no
defenses, setoffs or counterclaims whatsoever to its obligations thereunder.

          (f) No Third  Party  Beneficiaries.  No Person  other than the parties
hereto  shall have any rights  hereunder  or be  entitled to rely on this Second
Amendment,   and  all  third-party   beneficiary  rights  are  hereby  expressly
disclaimed.

          (g) Reference in Credit Documents. From and after the date this Second
Amendment becomes effective,  all references to "Credit Agreement" in any Credit
Document  shall be to the Credit  Agreement  as amended  hereby and as it may be
further amended, modified, supplemented or restated hereafter.

          (h)  Effectiveness.  This Second Amendment shall become effective when
counterparts  of this  Second  Amendment  are  signed and  delivered  (including
delivery by facsimile transmission) by each party hereto.

          (i) Counterparts.  This Second Amendment may be executed in any number
of  separate  counterparts,  all of which  taken  together  shall be  deemed  to
constitute one and the same  instrument,  and all signatures  need not appear on
any one  counterpart.  Any party hereto may execute and deliver a counterpart of
this  Second   Amendment  by  delivering  to  the  other  party,   by  facsimile
transmission,  the signature page of this Second Amendment signed by such party.
Any party so delivering by facsimile  transmission  a counterpart of this Second
Amendment signed by it shall promptly  thereafter also deliver a manually signed
counterpart of this Second Amendment to the other party.

                                    * * * * *

<PAGE>

          IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  their  duly
authorized  officers to execute and deliver this Second Amendment as of the date
first above written.

                                     Borrower

                                     PEAPOD, INC.

                                     By: /s/ M. van Gelder
                                        --------------------
                                        Name:  M. van Gelder
                                        Title: President & Chief Executive
                                               Officer

<PAGE>

          IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  their  duly
authorized  officers to execute and deliver this Second Amendment as of the date
first above written.

                                     Lender

                                     KONINKLIJKE AHOLD NV

                                     By: /s/ A. M. Meurs
                                        ------------------------
                                        Name:  A. M. Meurs
                                        Title: Executive Vice PresidentMarch 30, 2001

Peapod, Inc.
9933 Wood Drive
Skokie, IL  60077

Attn.:  Marc van Gelder

Dear Sirs:

         We refer to (a) Section  3(b) of the  Certificate  of  Designations  of
Series B Convertible  Preferred Stock of Peapod, Inc. (the "Series B Certificate
of  Designations")  designating the Series B Convertible  Stock, par value $0.01
per share  (the  "Series  B  Preferred  Stock")  of  Peapod,  Inc.,  a  Delaware
corporation ("Peapod"), which was filed with the Secretary of State of the State
of Delaware on June 29, 2000,  (b) the waiver  letter to Peapod dated  September
30, 2000 (the "September Waiver Letter"), whereby we waived our right to receive
payment on  September  30, 2000 of any  accumulated  and unpaid  dividends  (the
"September  Dividend") on the Series B Preferred  Stock that would  otherwise be
due and payable on September 30, 2000, on the condition that such dividend shall
accumulate  and be  compounded  in  accordance  with the  terms of the  Series B
Certificate  of  Designations  and that we shall  have the  right at any time to
demand payment of such accumulated but unpaid  dividend,  and (c) Section 6.1 of
the Exchange  Agreement and First Amendment to Purchase Agreement (the "Exchange
Agreement")  dated as of  October  12,  2000,  whereby  Peapod  agreed  that the
September Dividend was due and owing to us and, notwithstanding the Exchange (as
defined in the Exchange Agreement), that it shall be accumulated, compounded and
paid in accordance with the terms of the Series B Certificate of Designations.

         We also refer to (a) Section 3(b) of the Certificate of Designations of
Series C Convertible  Preferred Stock of Peapod, Inc. (the "Series C Certificate
of  Designations")  designating the Series C Convertible  Stock, par value $0.01
per share (the "Series C Preferred Stock") of Peapod, dated October 11, 2000, as
amended, and (b) the waiver letter to Peapod dated on or about December 31, 2000
(the "December Waiver  Letter"),  whereby we waived our right to receive payment
on December 31, 2000 of any  accumulated  and unpaid  dividends  (the  "December
Dividend")  on the Series C  Preferred  Stock that  would  otherwise  be due and
payable  on  December  31,  2000,  on the  condition  that such  dividend  shall
accumulate  and be  compounded  in  accordance  with the  terms of the  Series C
Certificate of Designations and that the holder of Series C Preferred Stock (the
"Series C Holder")  shall  have the right at any time to demand  payment of such
accumulated but unpaid dividend.

         We hereby (a)  continue  to waive our right to  receive  payment of the
September  Dividend and the December Dividend on the due date of such dividends,
and (b) waive our right to receive (i) future dividend  payments on the Series C
Preferred  Stock on the due date for such dividend,  and (ii) interest  payments
under the Credit  Agreement  dated as April 14, 2000,  as amended,  (the "Credit
Agreement") on the due date for such interest payments, provided, that, upon the
receipt by Peapod of cash proceeds from a debt or equity  financing  transaction
including,  without limitation,  a public offering of capital stock of Peapod (a
"Financing  Transaction"),  Peapod shall pay to (i) us the September Dividend as
accumulated  and  compounded  in  accordance  with  the  terms  of the  Series B
Certificate of Designations,  (ii) the Series C Holder the December Dividend and
all other  accumulated but unpaid  dividends under the Series C Preferred Stock,
as  accumulated  and  compounded  in  accordance  with the terms of the Series C
Certificate of  Designations,  and (iii) the Lender under the Credit  Agreement,
all overdue  interest  under the Credit  Agreement  in  accordance  with Section
1.04(c) of the Credit Agreement.

         We hereby  agree that  until the date of a  Financing  Transaction,  we
shall not (i) demand  payment  of the  September  Dividend  as  accumulated  and
compounded  in  accordance  with  the  terms  of the  Series  B  Certificate  of
Designations,  (ii)  demand  payment  of the  December  Dividend  and all  other
accumulated  but  unpaid  dividends  under  the  Series C  Preferred  Stock,  as
accumulated  and  compounded  in  accordance  with  the  terms  of the  Series C
Certificate  of  Designations,  (iii)  demand  payment  of  interest  or overdue
interest  under the Credit  Agreement,  and (iv) transfer the Series C Preferred
Stock to any third party unless we shall have caused the  transferee  to provide
Peapod with a written waiver  regarding the payment of dividends on the Series C
Preferred Stock on the same terms and conditions as this letter.

         Nothing  in this  letter  shall be deemed a waiver of any other term of
the Certificate of Designations.

                                     KONINKLIJKE AHOLD, N.V.

                                     By: /s/ A. M. Meurs
                                        ------------------------
                                        Name:  A. M. Meurs
                                        Title: Executive Vice President

         AGREED AND ACCEPTED:

         PEAPOD, INC.

         By: /s/ M. van Gelder
            ----------------------
            Name:   M. van Gelder
            Title:  President & Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]