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                                 EXHIBIT 10(bb)

                            HANOVER FOODS CORPORATION

                             2002 STOCK OPTION PLAN

1.       PURPOSE OF PLAN

         The purpose of this 2002 Stock Option Plan (the "Plan") is to provide
additional incentive to officers and other key employees of Hanover Foods
Corporation, a Pennsylvania corporation (the "Corporation"), and each present or
future parent or subsidiary corporation, by encouraging them to invest in shares
of the Corporation's Class B common stock, par value $25.00 per share ("Common
Stock"), and thereby acquire a proprietary interest in the Corporation and an
increased personal interest in the Corporation's continued success and progress.

2.       AGGREGATE NUMBER OF SHARES

         34,600 shares of the Corporation's Common Stock shall be the aggregate
number of shares which may be issued under this Plan. Notwithstanding the
foregoing, in the event of any change in the outstanding shares of the Common
Stock of the Corporation by reason of a stock dividend, stock split, combination
of shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Committee (defined in Section 4(a)),
deems in its sole discretion to be similar circumstances, the aggregate number
and kind of shares which may be issued under this Plan shall be appropriately
adjusted in a manner determined in the sole discretion of the Committee.
Reacquired shares of the Corporation's Common Stock, as well as unissued shares,
may be used for the purpose of this Plan. Common Stock of the Corporation
subject to options which have terminated unexercised, either in whole or in
part, shall be available for future options granted under this Plan.

3.       CLASS OF PERSONS ELIGIBLE TO RECEIVE OPTIONS

         All officers and key employees of the Corporation and of any present or
future Corporation parent or subsidiary corporation are eligible to receive an
option or options under this Plan, excluding John A. Warehime. The individuals
who shall, in fact, receive an option or options shall be selected by the
Committee (as defined in Section 4(a) hereof), in its sole discretion, except
that no option may be issued to John A. Warehime. No individual may receive
options under this Plan for more than 15% of the total number of shares of the
Corporation's Common Stock authorized for issuance under this Plan.

4.       ADMINISTRATION OF PLAN

         (a) This Plan shall be administered by the Corporation's Board of
Directors or by an Option Committee ("Committee") appointed by the Corporation's
Board of Directors. The Committee shall consist of a minimum of two and a
maximum of five members of the Board of Directors, each of whom shall be a
"Non-Employee Director" within the meaning of Rule 16b-3(b)(3) under the
Securities Exchange Act of 1934, as amended, or any future corresponding rule,
except that the failure of the Committee for any reason to be composed solely of
Non-Employee Directors shall not prevent an option from being considered granted
under this Plan. The Committee shall, in addition to its other authority and
subject to the provisions of this Plan, determine which individuals shall in
fact be granted an option or options, whether the option shall be an Incentive
Stock Option or a Non-Qualified Stock Option (as such terms are defined in
Section 5(a)), the number of shares to be subject to each of the options, the
time or times at which the options shall be granted, the rate of option
exercisability, and, subject to Section 5 hereof, the price at which each of the
options is exercisable and the duration of the option. The term "Committee", as
used in this Plan and the options granted hereunder, refers to either the Board
of Directors or to the Committee, whichever is then administering this Plan.

         (b) The Committee shall adopt such rules for the conduct of its
business and administration of this Plan as it considers desirable. A majority
of the members of the Committee shall constitute a quorum for all purposes. The
vote or written consent of a majority of the members of the Committee on a
particular matter shall constitute the act of the Committee on such matter. The
Committee shall have the right to construe the Plan and the

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options issued pursuant to it, to correct defects and omissions and to reconcile
inconsistencies to the extent necessary to effectuate the Plan and the options
issued pursuant to it, and such action shall be final, binding and conclusive
upon all parties concerned. No member of the Committee or the Board of Directors
shall be liable for any act or omission (whether or not negligent) taken or
omitted in good faith, or for the exercise of an authority or discretion granted
in connection with the Plan to a Committee or the Board of Directors, or for the
acts or omissions of any other members of a Committee or the Board of Directors.
Subject to the numerical limitations on Committee membership set forth in
Section 4(a) hereof, the Board of Directors may at any time appoint additional
members of the Committee and may at any time remove any member of the Committee
with or without cause. Vacancies in the Committee, however caused, may be filled
by the Board of Directors, if it so desires.

5.       INCENTIVE STOCK OPTIONS AND NON-QUALIFIED STOCK OPTIONS

         (a) Options issued pursuant to this Plan may be either Incentive Stock
Options granted pursuant to Section 5(b) hereof or Non-Qualified Stock Options
granted pursuant to Section 5(c) hereof, as determined by the Committee. An
"Incentive Stock Option" is an option which satisfies all of the requirements of
Section 422(b) of the Internal Revenue Code of 1986, as amended (the "Code") and
the regulations thereunder, and a "Non-Qualified Stock Option" is an option
which either does not satisfy all of those requirements or the terms of the
option provide that it will not be treated as an Incentive Stock Option. The
Committee may grant both an Incentive Stock Option and a Non-Qualified Stock
Option to the same person, or more than one of each type of option to the same
person. The option price for options issued under this Plan shall be equal at
least to the fair market value (as defined below) of the Corporation's Common
Stock on the date of the grant of the option. The fair market value of the
Corporation's Common Stock on any particular date shall mean a price determined
in good faith by the Committee to equal the fair market value per share of the
Common Stock, and for the purpose, the Committee may conclusively reply upon
appraisals of the Corporation's Common Stock performed by independent
appraisers.

         (b) Subject to the authority of the Committee set forth in Section 4(a)
hereof, Incentive Stock Options issued pursuant to this Plan shall be issued
substantially in the form set forth in Appendix I hereof, which form is hereby
incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth therein. Incentive Stock
Options shall not be exercisable after the expiration of ten years from the date
such options are granted, unless terminated earlier under the terms of the
option, except that options granted to individuals described in Section
422(b)(6) of the Code shall conform to the provisions of Section 422(c)(5) of
the Code. At the time of the grant of an Incentive Stock Option hereunder, the
Committee may, in its discretion, amend or supplement any of the option terms
contained in Appendix I for any particular optionee, provided that the option as
amended or supplemented satisfies the requirements of Section 422(b) of the Code
and the regulations thereunder. Each of the options granted pursuant to this
Section 5(b) is intended, if possible, to be an "Incentive Stock Option" as that
term is defined in Section 422(b) of the Code and the regulations thereunder. In
the event this Plan or any option granted pursuant to this Section 5(b) is in
any way inconsistent with the applicable legal requirements of the Code or the
regulations thereunder for an Incentive Stock Option, this Plan and such option
shall be deemed automatically amended as of the date hereof to conform to such
legal requirements, if such conformity may be achieved by amendment. If
Incentive Stock Options are granted under this Plan, such options shall
automatically be deemed converted into Non-Qualified Stock Options if
shareholder approval as required by the Code is not obtained within one year
after the date of adoption of this Plan by the Board of Directors.

         (c) Subject to the authority of the Committee set forth in Section 4(a)
hereof, Non-Qualified Stock Options issued to officers and other key employees
pursuant to this Plan shall be issued substantially in the form set forth in
Appendix II hereof, which form is hereby incorporated by reference and made a
part hereof, and shall contain substantially the terms and conditions set forth
therein. Non-Qualified Stock Options shall expire ten years after the date they
are granted, unless terminated earlier under the option terms. At the time of
granting a Non-Qualified Stock Option hereunder, the Committee may, in its
discretion, amend or supplement any of the option terms contained in Appendix II
for any particular optionee.

         (d) Neither the Corporation nor any of its current or future parent,
subsidiaries or affiliates, nor their officers, directors, shareholders, stock
option plan committees, employees or agents shall have any liability to any
optionee in the event (i) an option granted pursuant to Section 5(b) hereof does
not qualify as an "Incentive Stock Option" as that term is used in Section
422(b) of the Code and the regulations thereunder; (ii) any optionee does not

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obtain the tax treatment pertaining to an Incentive Stock Option; or (iii) any
option granted pursuant to Section 5(c) hereof is an "Incentive Stock Option."

6.       AMENDMENT, SUPPLEMENT, SUSPENSION AND TERMINATION

         Options shall not be granted pursuant to this Plan after the expiration
of ten years from the date the Plan is adopted by the Board of Directors of the
Corporation. The Board of Directors reserves the right at any time, and from
time to time, to amend or supplement this Plan in any way, or to suspend or
terminate it, effective as of such date, which date may be either before or
after the taking of such action, as may be specified by the Board of Directors;
provided, however, that such action shall not, without the consent of the
optionee, affect options granted under the Plan prior to the actual date on
which such action occurred. If the Board of Directors voluntarily submits a
proposed amendment, supplement, suspension or termination for shareholder
approval, such submission shall not require any future amendments, supplements,
suspensions or terminations (whether or not relating to the same provision or
subject matter) to be similarly submitted for shareholder approval.

7.       EFFECTIVENESS OF PLAN

         This Plan shall become effective on the date of its adoption by the
Corporation's Board of Directors.

8.       GENERAL CONDITIONS

         (a) Nothing contained in this Plan or any option granted pursuant to
this Plan shall confer upon any employee the right to continue in the employ of
the Corporation or any affiliated or subsidiary corporation or interfere in any
way with the rights of the Corporation or any affiliated or subsidiary
corporation to terminate his employment in any way.

         (b) Corporate action constituting an offer of stock for sale to any
person under the terms of the options to be granted hereunder shall be deemed
complete as of the date when the Committee authorizes the grant of the option to
the such person, regardless of when the option is actually delivered to such
person or acknowledged or agreed to by him.

         (c) The terms "parent corporation" and "subsidiary corporation" as used
throughout this Plan, and the options granted pursuant to this Plan, shall
(except as otherwise provided in the option form) have the meaning that is
ascribed to that term when contained in Section 422(b) of the Code and the
regulations thereunder, and the Corporation shall be deemed to be the grantor
corporation for purposes of applying such meaning.

         (d) References in this Plan to the Code shall be deemed to also refer
to the corresponding provisions of any future United States revenue law.

         (e) The use of the masculine pronoun shall include the feminine gender
whenever appropriate.

APPROVED BY THE BOARD OF DIRECTORS OF THE CORPORATION ON JUNE 20, 2002.

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                                   APPENDIX I

                             INCENTIVE STOCK OPTION

To:      _______________________________
         Name

         _______________________________
         Address

Date of Grant: _________________________

         You are hereby granted an option, effective as of the date hereof, to
purchase __________ shares of Class B common stock, par value $25.00 per share
("Common Stock"), of Hanover Foods Corporation, a Pennsylvania corporation (the
"Company"), at a price of $    per share pursuant to the Company's 2002 Stock
Option Plan (the "Plan").

         This option shall terminate and is not exercisable after ten years from
the date of its grant (the "Scheduled Termination Date"), except if terminated
earlier as hereafter provided.

         Your option may first be exercised on and after two years from the date
of grant, but not before that time. On and after two year and prior to three
years from the date of grant, your option may be exercised for up to 12.5% of
the total number of shares subject to the option minus the number of shares
previously purchased by exercise of the option (as adjusted for any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Each
succeeding year thereafter your option may be exercised for up to an additional
12.5% of the total number of shares subject to the option minus the number of
shares previously purchased by exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Thus, this
option is fully exercisable on and after nine years after the date of grant,
except if terminated earlier as provided herein.

         In the event of a "Change of Control" (as defined below) of the
Company, your option may, from and after the date of the Change of Control, and
notwithstanding the immediately preceding paragraph, be exercised for up to 100%
of the total number of shares then subject to the option minus the number of
shares previously purchased upon exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances) and your
vesting date will accelerate accordingly. A "Change of Control" shall be deemed
to have occurred upon the happening of any of the following events:

         1. A change within a twelve-month period in the holders of more than
50% of the outstanding voting stock of the Company; or

         2. A change within a thirty-six month period in a majority of the
members of the Board of Directors of the Company or a proxy contest which
threatens such a change; or

         3. Any other event deemed to constitute a "Change of Control" by the
Committee.

         You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms: (a) cash, which may be evidenced by a check and includes cash
received from a stock brokerage firm in a so-called

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"cashless exercise"; (b) (unless prohibited by the Committee) certificates
representing shares of Common Stock of the Company, which will be valued by the
Secretary of the Company at the fair market value per share of the Company's
Common Stock (as determined in accordance with the Plan) on the date of delivery
of such certificates to the Company, accompanied by an assignment of the stock
to the Company; (c) (unless prohibited by the Committee) any combination of cash
and Common Stock of the Company valued as provided in clause (b) or (d) if
permitted by the Committee, a promissory note containing such terms and
conditions and collateral (if any) as the Committee shall determine in its sole
discretion. The use of the so-called "attestation procedure") to exercise a
stock option may be permitted by the Committee. Any assignment of stock shall be
in a form and substance satisfactory to the Secretary of the Company, including
guarantees of signature(s) and payment of all transfer taxes if the Secretary
deems such guarantees necessary or desirable.

         Your option will, to the extent not previously exercised by you,
terminate three months after the date on which your employment by the Company or
a Company subsidiary corporation is terminated (whether such termination be
voluntary or involuntary) other than by reason of disability as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
and the regulations thereunder, or death, in which case your option will
terminate one year from the date of termination of employment due to disability
or death (but in no event later than the Scheduled Termination Date). After the
date your employment is terminated, as aforesaid, you may exercise this option
only for the number of shares which you had a right to purchase and did not
purchase on the date your employment terminated. If you are employed by a
Company subsidiary corporation, your employment shall be deemed to have
terminated on the date your employer ceases to be a Company subsidiary
corporation, unless you are on that date transferred to the Company or another
Company subsidiary corporation. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a Company subsidiary
corporation, or vice versa, or from one Company subsidiary corporation to
another Company subsidiary corporation.

         If you die while employed by the Company or a Company subsidiary
corporation, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than
the Scheduled Termination Date), exercise the option as to any shares which you
had a right to purchase and did not purchase during your lifetime. If your
employment with the Company or a Company parent or subsidiary corporation is
terminated by reason of your becoming disabled (within the meaning of Section
22(e)(3) of the Code and the regulations thereunder), you or your legal guardian
or custodian may at any time within one year after the date of such termination
(but in no event later than the Scheduled Termination Date), exercise the option
as to any shares which you had a right to purchase and did not purchase prior to
such termination. Your executor, administrator, guardian or custodian must
present proof of his authority satisfactory to the Company prior to being
allowed to exercise this option.

         In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Committee deems in its sole discretion to
be similar circumstances, the number and kind of shares subject to this option
and the option price of such shares shall be appropriately adjusted in a manner
to be determined in the sole discretion of the Committee.

         IN THE EVENT OF A LIQUIDATION OR PROPOSED LIQUIDATION OF THE COMPANY,
INCLUDING (BUT NOT LIMITED TO) A TRANSFER OF ASSETS FOLLOWED BY A LIQUIDATION OF
THE COMPANY, OR IN THE EVENT OF A CHANGE OF CONTROL (AS PREVIOUSLY DEFINED) OR
PROPOSED CHANGE OF CONTROL, THE COMMITTEE SHALL HAVE THE RIGHT TO REQUIRE YOU TO
EXERCISE THIS OPTION UPON THIRTY (30) DAYS PRIOR WRITTEN NOTICE TO YOU. IF AT
THE TIME SUCH WRITTEN NOTICE IS GIVEN THIS OPTION IS NOT OTHERWISE EXERCISABLE,
THE WRITTEN NOTICE WILL SET FORTH YOUR RIGHT TO EXERCISE THIS OPTION EVEN THOUGH
IT IS NOT OTHERWISE EXERCISABLE. IN THE EVENT THIS OPTION IS NOT EXERCISED BY
YOU WITHIN THE THIRTY (30) DAY PERIOD SET FORTH IN SUCH WRITTEN NOTICE, THIS
OPTION SHALL TERMINATE ON THE LAST DAY OF SUCH THIRTY (30) DAY PERIOD,
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS OPTION.

         This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the event of
disability. Until the option price has been paid in full pursuant to due
exercise of this option and the purchased shares are delivered to you, you do
not have any rights as a shareholder of the Company, except for voting right to
the extent provided in the Company's Employee Stock Trust. The Company reserves
the right not to

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deliver to you the shares purchased by virtue of the exercise of this option
during any period of time in which the Company deems, in its sole discretion,
that such delivery would violate a federal, state, local or securities exchange
rule, regulation or law.

         Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:

                  (a) Until this option and the optioned shares are approved
and/or registered with such federal, state and local regulatory bodies or
agencies and securities exchanges as the Company may deem necessary or
desirable; or

                  (b) During any period of time in which the Company deems that
the exercisability of this option, the offer to sell the shares optioned
hereunder, or the sale thereof, may violate a federal, state, local or
securities exchange rule, regulation or law, or may cause the Company to be
legally obligated to issue or sell more shares than the Company is legally
entitled to issue or sell.

                  (c) Until you have paid or made suitable arrangements to pay
(which may include payment through the surrender of Common Stock, unless
prohibited by the Committee) (i) all federal, state and local income tax
withholding required to be withheld by the Company in connection with the option
exercise and (ii) the employee's portion of other federal, state and local
payroll and other taxes due in connection with the option exercise.

         The following two paragraphs shall be applicable if, on the date of
exercise of this option, the Common Stock to be purchased pursuant to such
exercise has not been registered under the Securities Act of 1933, as amended,
and under applicable state securities laws, and shall continue to be applicable
for so long as such registration has not occurred:

                  (a) The optionee hereby agrees, warrants and represents that
he will acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable to the Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations, acknowledgments and agreements as the
Company may, in its sole discretion, deem advisable to avoid any violation of
federal, state, local or securities exchange rule, regulation or law.

                  (b) The certificates for Common Stock to be issued to the
optionee hereunder shall bear the following legend:

                  "The shares represented by this certificate have not been
         registered under the Securities Act of 1933, as amended, or under
         applicable state securities laws. The shares have been acquired for
         investment and may not be offered, sold, transferred, pledged or
         otherwise disposed of without an effective registration statement under
         the Securities Act of 1933, as amended, and under any applicable state
         securities laws or an opinion of counsel acceptable to the Company that
         the proposed transaction will be exempt from such registration."

         The foregoing legend shall be removed upon registration of the legended
shares under the Securities Act of 1933, as amended, and under any applicable
state laws or upon receipt of any opinion of counsel acceptable to the Company
that said registration is no longer required.

         The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.

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         It is the intention of the Company and you that this option shall, if
possible, be an "Incentive Stock Option" as that term is used in Section 422(b)
of the Code and the regulations thereunder. In the event this option is in any
way inconsistent with the legal requirements of the Code or the regulations
thereunder for an "Incentive Stock Option," this option shall be deemed
automatically amended as of the date hereof to conform to such legal
requirements, if such conformity may be achieved by amendment. To the extent
that the number of shares subject to this option which are exercisable for the
first time exceed the $100,000 limitation contained in Section 422(d) of the
Code, this option will not be considered an Incentive Stock Option. IN THE EVENT
THAT APPROVAL OF THE PLAN BY THE SHAREHOLDERS OF THE COMPANY IS NOT OBTAINED
WITHIN TWELVE MONTHS AFTER THE ADOPTION OF THE PLAN BY THE COMPANY'S BOARD OF
DIRECTORS, THIS OPTION SHALL AUTOMATICALLY BE DEEMED CONVERTED INTO AN OPTION
WHICH IS NOT AN INCENTIVE STOCK OPTION AS THAT TERM IS USED IN SECTION 422(B) OF
THE CODE AND THE REGULATIONS THEREUNDER. NOTHING CONTAINED HEREIN SHALL REQUIRE
THE COMPANY TO SUBMIT THE PLAN FOR SUCH SHAREHOLDER APPROVAL.

         Nothing herein shall modify your status as an at-will employee of the
Company. Further, nothing herein guarantees you employment for any specified
period of time. This means that either you or the Company may terminate your
employment at any time for any reason, with or without cause, or for no reason.
You recognize that, for instance, you may terminate your employment or the
Company may terminate your employment prior to the date on which your option
becomes vested or exercisable.

         THE COMPANY HAS NO OBLIGATION TO REPURCHASE ANY STOCK WHICH YOU MAY
ACQUIRE UPON EXERCISE OF THIS OPTION. TO THE EXTENT NECESSARY TO SATISFY THE
COMPANY'S LEGAL REPORTING OBLIGATIONS, THE OPTIONEE SHALL ADVISE THE COMPANY OF
ANY DISPOSITION OF THE STOCK ACQUIRED UPON EXERCISE OF THIS OPTION.

         Any dispute or disagreement between you and the Company with respect to
any portion of this option (excluding Attachment A hereto) or its validity,
construction, meaning, performance or your rights hereunder shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association or its successor, as amended from time to time. However,
prior to submission to arbitration you will attempt to resolve any disputes or
disagreements with the Company over this option amicably and informally, in good
faith, for a period not to exceed two weeks. Thereafter, the dispute or
disagreement will be submitted to arbitration. At any time prior to a decision
from the arbitrator(s) being rendered, you and the Company may resolve the
dispute by settlement. You and the Company shall equally share the costs charged
by the American Arbitration Association or its successor, but you and the
Company shall otherwise be solely responsible for your own respective counsel
fees and expenses. The decision of the arbitrator(s) shall be made in writing,
setting forth the award, the reasons for the decision and award and shall be
binding and conclusive on you and the Company. Further, neither you nor the
Company shall appeal any such award. Judgment of a court of competent
jurisdiction may be entered upon the award and may be enforced as such in
accordance with the provisions of the award.

         This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, supplement or waiver of this option, in whole or in
part, shall be binding upon the Company unless in writing and signed by the
President of the Company. This option and the performances of the parties
hereunder shall be construed in accordance with and governed by the laws of the
State of Pennsylvania.

         In consideration of the grant to you of this option, you hereby agree
to the confidentiality and non-interference provisions set forth in Attachment A
hereto.

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         Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions, INCLUDING ATTACHMENT A HERETO.

                                      Hanover Foods Corporation

                                      By:
                                          --------------------------------------
         I hereby acknowledge receipt of a copy of the foregoing stock option
and the Plan, and having read them hereby signify my understanding of, and my
agreement with, their terms and conditions, INCLUDING ATTACHMENT A HERETO. I
accept this option in full satisfaction of any previous written or verbal
promises made to me by the Company with respect to option grants.

--------------------------------                  ------------------------------
(Signature)                                       (Date)

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                          ATTACHMENT A TO STOCK OPTION

                      Confidentiality and Non-Interference.

         (a) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, during your employment with the Company or
at any time thereafter, except with the express prior written consent of the
Company or pursuant to the lawful order of any judicial or administrative agency
of government, directly or indirectly, disclose, communicate or divulge to any
individual or entity, or use for the benefit of any individual or entity, any
knowledge or information with respect to the conduct or details of the Company's
business which you, acting reasonably, believe or should believe to be of a
confidential nature and the disclosure of which not to be in the Company's
interest.

         (b) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, during your employment with the Company and
for a period of two years thereafter, except with the express prior written
consent of the Company, directly or indirectly, whether as employee, owner,
partner, member, consultant, agent, director, officer, shareholder or in any
other capacity, engage in or assist any individual or entity to engage in any
act or action which you, acting reasonably, believe or should believe would be
harmful or inimical to the interests of the Company.

         (c) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, for a period of two years after your
employment with the Company ceases for any reason whatsoever (whether voluntary
or not), except with the express prior written consent of the Company, directly
or indirectly, whether as employee, owner, partner, member, consultant, agent,
director, officer, shareholder or in any other capacity, for your own account or
for the benefit of any individual or entity, (i) solicit any customer of the
Company for business which would result in such customer terminating their
relationship with the Company; or (ii) solicit or induce any individual or
entity which is an employee of the Company to leave the Company or to otherwise
terminate their relationship with the Company.

         (d) The parties agree that any breach by you of any of the covenants or
agreements contained in this Attachment A will result in irreparable injury to
the Company for which money damages could not adequately compensate the Company
and therefore, in the event of any such breach, the Company shall be entitled
(in addition to any other rights and remedies which it may have at law or in
equity) to have an injunction issued by any competent court enjoining and
restraining you and/or any other individual or entity involved therein from
continuing such breach. The existence of any claim or cause of action which you
may have against the Company or any other individual or entity shall not
constitute a defense or bar to the enforcement of such covenants. If the Company
is obliged to resort to the courts for the enforcement of any of the covenants
or agreements contained in this Attachment A, or if such covenants or agreements
are otherwise the subject of litigation between the parties, and the Company
prevails in such enforcement or litigation, then the term of such covenants and
agreements shall be extended for a period of time equal to the period of such
breach, which extension shall commence on the later of (a) the date on which the
original (unextended) term of such covenants and agreements is scheduled to
terminate or (b) the date of the final court order (without further right of
appeal) enforcing such covenant or agreement.

         (e) If any portion of the covenants or agreements contained in this
Attachment A, or the application hereof, is construed to be invalid or
unenforceable, the other portions of such covenant(s) or agreement(s) or the
application thereof shall not be affected and shall be given full force and
effect without regard to the invalid or enforceable portions to the fullest
extent possible. If any covenant or agreement in this Attachment A is held
unenforceable because of the area covered, the duration thereof, or the scope
thereof, then the court making such determination shall have the power to reduce
the area and/or duration and/or limit the scope thereof, and the covenant or
agreement shall then be enforceable in its reduced form.

         (f) For purposes of this Attachment A, the term "the Company" shall
include the Company, any successor to the Company and all present and future
direct and indirect subsidiaries and affiliates of the Company.

                                       I-6
<PAGE>
                                   APPENDIX II

                NON-QUALIFIED STOCK OPTION FOR OFFICERS AND OTHER

                                  KEY EMPLOYEES

To:
       Name
                ---------------------

       Address
                ---------------------
Date of Grant:
                ---------------------

         You are hereby granted an option, effective as of the date hereof, to
purchase         shares of Class B common stock, par value $25.00 per share
("Common Stock"), of Hanover Foods Corporation, a Pennsylvania corporation (the
"Company"), at a price of $     per share pursuant to the Company's 2002 Stock
Option Plan (the "Plan").

         This option shall terminate and is not exercisable after ten years from
the date of its grant (the "Scheduled Termination Date"), except if terminated
earlier as hereafter provided.

         Your option may first be exercised on and after two years from the date
of grant, but not before that time. On and after two year and prior to three
years from the date of grant, your option may be exercised for up to 12.5% of
the total number of shares subject to the option minus the number of shares
previously purchased by exercise of the option (as adjusted for any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Each
succeeding year thereafter your option may be exercised for up to an additional
12.5% of the total number of shares subject to the option minus the number of
shares previously purchased by exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Thus, this
option is fully exercisable on and after nine years after the date of grant,
except if terminated earlier as provided herein.

         In the event of a "Change of Control" (as defined below) of the
Company, your option may, from and after the date of the Change of Control, and
notwithstanding the immediately preceding paragraph, be exercised for up to 100%
of the total number of shares then subject to the option minus the number of
shares previously purchased upon exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances) and your
vesting date will accelerate accordingly. A "Change of Control" shall be deemed
to have occurred upon the happening of any of the following events:

         1. A change within a twelve-month period in the holders of more than
50% of the outstanding voting stock of the Company; or

         2. A change within a thirty-six month period in a majority of the
members of the Board of Directors of the Company or a proxy contest which
threatens such a change; or

         3. Any other event deemed to constitute a "Change of Control" by the
Committee.

         You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms:

                                      II-1
<PAGE>
(a) cash, which may be evidenced by a check and includes cash received from a
stock brokerage firm in a so-called "cashless exercise"; (b) (unless prohibited
by the Committee) certificates representing shares of Common Stock of the
Company, which will be valued by the Secretary of the Company at the fair market
value per share of the Company's Common Stock (as determined in accordance with
the Plan) on the date of delivery of such certificates to the Company,
accompanied by an assignment of the stock to the Company; (c) (unless prohibited
by the Committee) any combination of cash and Common Stock of the Company valued
as provided in clause (b) or (d) if permitted by the Committee, a promissory
note containing such terms and conditions and collateral (if any) as the
Committee shall determine in its sole discretion. The use of the so-called
"attestation procedure") to exercise a stock option may be permitted by the
Committee. Any assignment of stock shall be in a form and substance satisfactory
to the Secretary of the Company, including guarantees of signature(s) and
payment of all transfer taxes if the Secretary deems such guarantees necessary
or desirable.

         Your option will, to the extent not previously exercised by you,
terminate three months after the date on which your employment by the Company or
a Company subsidiary corporation is terminated (whether such termination be
voluntary or involuntary) other than by reason of disability as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
and the regulations thereunder, or death, in which case your option will
terminate one year from the date of termination of employment due to disability
or death (but in no event later than the Scheduled Termination Date). After the
date your employment is terminated, as aforesaid, you may exercise this option
only for the number of shares which you had a right to purchase and did not
purchase on the date your employment terminated. If you are employed by a
Company subsidiary corporation, your employment shall be deemed to have
terminated on the date your employer ceases to be a Company subsidiary
corporation, unless you are on that date transferred to the Company or another
Company subsidiary corporation. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a Company subsidiary
corporation, or vice versa, or from one Company subsidiary corporation to
another Company subsidiary corporation.

         If you die while employed by the Company or a Company subsidiary
corporation, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than
the Scheduled Termination Date), exercise the option as to any shares which you
had a right to purchase and did not purchase during your lifetime. If your
employment with the Company or a Company parent or subsidiary corporation is
terminated by reason of your becoming disabled (within the meaning of Section
22(e)(3) of the Code and the regulations thereunder), you or your legal guardian
or custodian may at any time within one year after the date of such termination
(but in no event later than the Scheduled Termination Date), exercise the option
as to any shares which you had a right to purchase and did not purchase prior to
such termination. Your executor, administrator, guardian or custodian must
present proof of his authority satisfactory to the Company prior to being
allowed to exercise this option.

         In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Committee deems in its sole discretion to
be similar circumstances, the number and kind of shares subject to this option
and the option price of such shares shall be appropriately adjusted in a manner
to be determined in the sole discretion of the Committee.

         IN THE EVENT OF A LIQUIDATION OR PROPOSED LIQUIDATION OF THE COMPANY,
INCLUDING (BUT NOT LIMITED TO) A TRANSFER OF ASSETS FOLLOWED BY A LIQUIDATION OF
THE COMPANY, OR IN THE EVENT OF A CHANGE OF CONTROL (AS PREVIOUSLY DEFINED) OR
PROPOSED CHANGE OF CONTROL, THE COMMITTEE SHALL HAVE THE RIGHT TO REQUIRE YOU TO
EXERCISE THIS OPTION UPON THIRTY (30) DAYS PRIOR WRITTEN NOTICE TO YOU. IF AT
THE TIME SUCH WRITTEN NOTICE IS GIVEN THIS OPTION IS NOT OTHERWISE EXERCISABLE,
THE WRITTEN NOTICE WILL SET FORTH YOUR RIGHT TO EXERCISE THIS OPTION EVEN THOUGH
IT IS NOT OTHERWISE EXERCISABLE. IN THE EVENT THIS OPTION IS NOT EXERCISED BY
YOU WITHIN THE THIRTY (30) DAY PERIOD SET FORTH IN SUCH WRITTEN NOTICE, THIS
OPTION SHALL TERMINATE ON THE LAST DAY OF SUCH THIRTY (30) DAY PERIOD,
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS OPTION.

         This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the

                                      II-2
<PAGE>
event of disability. Until the option price has been paid in full pursuant to
due exercise of this option and the purchased shares are delivered to you, you
do not have any rights as a shareholder of the Company, except for voting right
to the extent provided in the Company's Employee Stock Trust. The Company
reserves the right not to deliver to you the shares purchased by virtue of the
exercise of this option during any period of time in which the Company deems, in
its sole discretion, that such delivery would violate a federal, state, local or
securities exchange rule, regulation or law.

         Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:

         (a) Until this option and the optioned shares are approved and/or
registered with such federal, state and local regulatory bodies or agencies and
securities exchanges as the Company may deem necessary or desirable; or

         (b) During any period of time in which the Company deems that the
exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or securities exchange
rule, regulation or law, or may cause the Company to be legally obligated to
issue or sell more shares than the Company is legally entitled to issue or sell.

         (c) Until you have paid or made suitable arrangements to pay (which may
include payment through the surrender of Common Stock, unless prohibited by the
Committee) (i) all federal, state and local income tax withholding required to
be withheld by the Company in connection with the option exercise and (ii) the
employee's portion of other federal, state and local payroll and other taxes due
in connection with the option exercise.

         The following two paragraphs shall be applicable if, on the date of
exercise of this option, the Common Stock to be purchased pursuant to such
exercise has not been registered under the Securities Act of 1933, as amended,
and under applicable state securities laws, and shall continue to be applicable
for so long as such registration has not occurred:

         (a) The optionee hereby agrees, warrants and represents that he will
acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable to the Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations, acknowledgments and agreements as the
Company may, in its sole discretion, deem advisable to avoid any violation of
federal, state, local or securities exchange rule, regulation or law.

         (b) The certificates for Common Stock to be issued to the optionee
hereunder shall bear the following legend:

                  "The shares represented by this certificate have not been
         registered under the Securities Act of 1933, as amended, or under
         applicable state securities laws. The shares have been acquired for
         investment and may not be offered, sold, transferred, pledged or
         otherwise disposed of without an effective registration statement under
         the Securities Act of 1933, as amended, and under any applicable state
         securities laws or an opinion of counsel acceptable to the Company that
         the proposed transaction will be exempt from such registration."

         The foregoing legend shall be removed upon registration of the legended
shares under the Securities Act of 1933, as amended, and under any applicable
state laws or upon receipt of any opinion of counsel acceptable to the Company
that said registration is no longer required.

                                      II-3
<PAGE>
         The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.

         It is the intention of the Company and you that this option shall not
be an "Incentive Stock Option" as that term is used in Section 422(b) of the
Code and the regulations thereunder.

         Nothing herein shall modify your status as an at-will employee of the
Company. Further, nothing herein guarantees you employment for any specified
period of time. This means that either you or the Company may terminate your
employment at any time for any reason, with or without cause, or for no reason.
You recognize that, for instance, you may terminate your employment or the
Company may terminate your employment prior to the date on which your option
becomes vested or exercisable.

         The Company has no obligation to repurchase any stock which you may
acquire upon exercise of this option. To the extent necessary to satisfy the
Company's legal reporting obligations, the optionee shall advise the Company of
any disposition of the stock acquired upon exercise of this option.

         Any dispute or disagreement between you and the Company with respect to
any portion of this option (excluding Attachment A hereto) or its validity,
construction, meaning, performance or your rights hereunder shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association or its successor, as amended from time to time. However,
prior to submission to arbitration you will attempt to resolve any disputes or
disagreements with the Company over this option amicably and informally, in good
faith, for a period not to exceed two weeks. Thereafter, the dispute or
disagreement will be submitted to arbitration. At any time prior to a decision
from the arbitrator(s) being rendered, you and the Company may resolve the
dispute by settlement. You and the Company shall equally share the costs charged
by the American Arbitration Association or its successor, but you and the
Company shall otherwise be solely responsible for your own respective counsel
fees and expenses. The decision of the arbitrator(s) shall be made in writing,
setting forth the award, the reasons for the decision and award and shall be
binding and conclusive on you and the Company. Further, neither you nor the
Company shall appeal any such award. Judgment of a court of competent
jurisdiction may be entered upon the award and may be enforced as such in
accordance with the provisions of the award.

         This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, supplement or waiver of this option, in whole or in
part, shall be binding upon the Company unless in writing and signed by the
President of the Company. This option and the performances of the parties
hereunder shall be construed in accordance with and governed by the laws of the
State of Pennsylvania.

         In consideration of the grant to you of this option, you hereby agree
to the confidentiality and non-interference provisions set forth in Attachment A
hereto.

         Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions, INCLUDING ATTACHMENT A HERETO.

                                      Hanover Foods Corporation

                                      By:
                                          --------------------------------------

                                      II-4
<PAGE>
         I hereby acknowledge receipt of a copy of the foregoing stock option
and the Plan, and having read them hereby signify my understanding of, and my
agreement with, their terms and conditions, INCLUDING ATTACHMENT A HERETO. I
accept this option in full satisfaction of any previous written or verbal
promises made to me by the Company with respect to option grants.

--------------------------------                  ------------------------------
(Signature)                                       (Date)

                                      II-5
<PAGE>
                          ATTACHMENT A TO STOCK OPTION

                      Confidentiality and Non-Interference.

         (a) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, during your employment with the Company or
at any time thereafter, except with the express prior written consent of the
Company or pursuant to the lawful order of any judicial or administrative agency
of government, directly or indirectly, disclose, communicate or divulge to any
individual or entity, or use for the benefit of any individual or entity, any
knowledge or information with respect to the conduct or details of the Company's
business which you, acting reasonably, believe or should believe to be of a
confidential nature and the disclosure of which not to be in the Company's
interest.

         (b) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, during your employment with the Company and
for a period of two years thereafter, except with the express prior written
consent of the Company, directly or indirectly, whether as employee, owner,
partner, member, consultant, agent, director, officer, shareholder or in any
other capacity, engage in or assist any individual or entity to engage in any
act or action which you, acting reasonably, believe or should believe would be
harmful or inimical to the interests of the Company.

         (c) You covenant and agree that, in consideration of the grant to you
of this stock option, you will not, for a period of two years after your
employment with the Company ceases for any reason whatsoever (whether voluntary
or not), except with the express prior written consent of the Company, directly
or indirectly, whether as employee, owner, partner, member, consultant, agent,
director, officer, shareholder or in any other capacity, for your own account or
for the benefit of any individual or entity, (i) solicit any customer of the
Company for business which would result in such customer terminating their
relationship with the Company; or (ii) solicit or induce any individual or
entity which is an employee of the Company to leave the Company or to otherwise
terminate their relationship with the Company.

         (d) The parties agree that any breach by you of any of the covenants or
agreements contained in this Attachment A will result in irreparable injury to
the Company for which money damages could not adequately compensate the Company
and therefore, in the event of any such breach, the Company shall be entitled
(in addition to any other rights and remedies which it may have at law or in
equity) to have an injunction issued by any competent court enjoining and
restraining you and/or any other individual or entity involved therein from
continuing such breach. The existence of any claim or cause of action which you
may have against the Company or any other individual or entity shall not
constitute a defense or bar to the enforcement of such covenants. If the Company
is obliged to resort to the courts for the enforcement of any of the covenants
or agreements contained in this Attachment A, or if such covenants or agreements
are otherwise the subject of litigation between the parties, and the Company
prevails in such enforcement or litigation, then the term of such covenants and
agreements shall be extended for a period of time equal to the period of such
breach, which extension shall commence on the later of (a) the date on which the
original (unextended) term of such covenants and agreements is scheduled to
terminate or (b) the date of the final court order (without further right of
appeal) enforcing such covenant or agreement.

         (e) If any portion of the covenants or agreements contained in this
Attachment A, or the application hereof, is construed to be invalid or
unenforceable, the other portions of such covenant(s) or agreement(s) or the
application thereof shall not be affected and shall be given full force and
effect without regard to the invalid or enforceable portions to the fullest
extent possible. If any covenant or agreement in this Attachment A is held
unenforceable because of the area covered, the duration thereof, or the scope
thereof, then the court making such determination shall have the power to reduce
the area and/or duration and/or limit the scope thereof, and the covenant or
agreement shall then be enforceable in its reduced form.

         (f) For purposes of this Attachment A, the term "the Company" shall
include the Company, any successor to the Company and all present and future
direct and indirect subsidiaries and affiliates of the Company.

                                      II-6<PAGE>

                                 EXHIBIT 10(cc)

                            HANOVER FOODS CORPORATION

                              EMPLOYEE STOCK TRUST

                 (REVISED AND RESTATED EFFECTIVE JUNE 20, 2002)

         THIS TRUST AGREEMENT (the "Agreement"), effective as of January 2, 2001
("Effective Date"), is revised and restated effective June 20, 2002
("Restatement Date") between Hanover Foods Corporation, a Pennsylvania
corporation (the "Company"), and Cyril T. Noel as Trustee.

                              W I T N E S S E T H :

         WHEREAS, the Company desires to establish a trust (the "Trust") in
accordance with the laws of the Commonwealth of Pennsylvania and for the
purposes stated in this Agreement;

         WHEREAS, the Trustee desires to act as trustee of the Trust, and to
hold legal title to the assets of the Trust, in trust, for the purposes
hereinafter stated and in accordance with the terms hereof;

         WHEREAS, the Company desires to provide for the availability of shares
of its Class B common stock to satisfy certain of its obligations or those of
its subsidiaries under the ESOP (as herein defined) and other employee benefit
plans (including, but not limited to, the Stock Option Plan, as herein defined)
and intends to contribute to the Trust such assets that shall be held therein,
subject to the claims of the Company's general creditors in the event of the
Company's Insolvency (as defined herein) until made available to the ESOP and/or
such other employee benefit plans (including the Stock Option Plan, as herein
defined) in such manner and at such times as specified herein;

         WHEREAS, the Company desires that the assets to be held in the Trust
Fund (as herein defined) should be principally or exclusively securities of the
Company except as where specifically otherwise provided and, therefore expressly
waives any diversification of investments that might otherwise be necessary,
appropriate or required pursuant to applicable provisions of law; and

         WHEREAS, the Trustee has been appointed and has accepted such
appointment as of the date first set forth above.

         NOW, THEREFORE, the parties hereto hereby establish the Trust and agree
that the Trust will be comprised, held and disposed of as follows:

                                    ARTICLE 1

                          TRUST, TRUSTEE AND TRUST FUND

         1.1 Trust. This Agreement and the Trust Fund shall be known as Hanover
Foods Corporation Employee Stock Trust. The parties intend that the Trust will
be an independent legal entity with title to and power to convey all of its
assets in accordance with the terms of the Trust. The parties hereto further
intend that the Trust not be subject to the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), and that the assets held in the Trust Fund
shall not be "plan assets," as such term is described in ERISA and Department of
Labor regulations thereunder. The Trust is not a part of the ESOP and does not
provide pension, welfare or any other benefits to any Plan Participant (as
herein defined). The assets of the Trust will be held, invested and disposed of
by the Trustee, in accordance with the terms of the Trust. No Plan Participant
nor any employee benefit plan maintained by the Company shall have any preferred
claim on, or any beneficial ownership interest in, any assets of the Trust.

         1.2 Trustee. The trustee named above, and any successor or successors,
are hereby designated as the trustee hereunder, to receive, hold, invest,
administer and distribute the Trust Fund in accordance with this Agreement, the
provisions of which shall govern the powers, duties and responsibilities of the
Trustee.

                                       1
<PAGE>
         1.3 Irrevocable Trust. The Trust shall be irrevocable, except as
provided in the following sentence. In the event of a transaction with an
unaffiliated third party which involves a sale of all or substantially all of
the assets or stock of the Company (including, but not limited to, a merger,
consolidation, division or other transaction which involves a sale of all or
substantially all of the assets or stock of the Company), the Trust shall
thereupon be revocable by the Company and any Company Stock and/or other assets
then remaining in the Trust shall be distributed as directed by the Company.

         1.4 Trust Fund. The assets held at any time and from time to time under
the Trust collectively are herein referred to as the "Trust Fund" and shall
consist of Common Stock contributions received by the Trustee, proceeds of any
loans, investments and reinvestment thereof, the earnings and income thereon,
less disbursements therefrom. Except as herein otherwise provided, title to the
assets of the Trust Fund shall at all times be vested in the Trustee and
securities that are part of the Trust Fund shall be held in such manner that the
Trustee's name and the fiduciary capacity in which the securities are held are
fully disclosed, subject to the right of the Trustee to hold title in bearer
form or in the name of a nominee, and the interests of others in the Trust Fund
shall be only the right to have such assets received, held, invested,
administered and distributed in accordance with the provisions of the Trust.
Company Stock held in the ESOP Plan Subaccount (as herein defined) of the Trust
shall be used exclusively for the purpose of funding Company contributions to
the ESOP and other employee benefit plans maintained by the Company as provided
for in Article 3; Company Stock held in the Option Plan Subaccount (as herein
defined) of the Trust shall be used exclusively for the purpose of satisfying
the Company's obligations under Options (as herein defined) which are exercised
by Option Plan Participants (as herein defined) as provided for in Article 3.
The principal and income of this Trust shall be used exclusively to fund the
ESOP and other employee benefit plans (including, but not limited to, the Stock
Option Plan) for Plan Participants.

         1.5 Trust Fund Subject to Claims of Creditors. Notwithstanding any
provision of this Agreement to the contrary, the Trust Fund shall at all times
remain subject to the claims of the Company's general creditors under Federal
and state law in the event of the Company's Insolvency (as herein defined). In
addition, the Board of Directors and Chief Executive Officer of the Company
shall have the duty to inform the Trustee in writing of the Company's
Insolvency. If a person claiming to be a creditor of the Company alleges in
writing to the Trustee that the Company has become Insolvent, the Trustee shall
discontinue transfers of the Transferred Shares (as provided in Article 3).

         Unless the Trustee has actual knowledge of the Company's Insolvency, or
has received notice from the Company or a person claiming to be a Company
creditor alleging that the Company is Insolvent, the Trustee shall have no duty
to inquire whether the Company is Insolvent. The Trustee may in all events
conclusively rely on a copy of a bankruptcy petition filed with a court of
competent jurisdiction.

         If at any time the Trustee has determined that the Company is
Insolvent, the Trustee shall discontinue transfers pursuant to Article 4 and
shall hold the Trust Fund for the benefit of the Company's general creditors.
The Trustee shall resume transfers pursuant to Article 4 only after it receives
a copy of the court order dismissing such bankruptcy petition.

         Notwithstanding anything herein to the contrary, in the event that the
Company is Insolvent, the Committee may, in its discretion and to the extent
permitted by applicable law, direct the Trustee to apply the Trust Fund to
satisfy the claims of the Company's creditors.

         1.6 No Board of Directors' Control. Company Stock held pursuant to this
Agreement shall be governed solely by the terms of such Agreement. Such Company
Stock shall not be controlled directly or indirectly by the Board of Directors,
as such.

         1.7 Definitions. In addition to the terms defined in the preceding
portions of this Agreement, certain capitalized terms have the meanings set
forth below:

         "Board of Directors" means the Board of Directors of the Company.

         "Code" means the Internal Revenue Code of 1986, as amended.

                                       2
<PAGE>
         "Committee" means the person or group of persons charged by the Board
of Directors with the powers provided to the Committee in this Trust Agreement,
such person or group of persons to be subject to appointment or removal at the
discretion of the Board of Directors, with or without cause.

         "Company Stock" means Class B common stock of the Company.

         "ESOP" means the Hanover Foods Corporation Employee Stock Ownership
Plan established effective January 1, 2001.

         "ESOP Participant" means any individual who is a participant in the
ESOP.

         "ESOP Plan Shares" means the shares of Company Stock which are to be
used for the sole purpose of being transferred to the ESOP pursuant to the
direction of the Committee.

         "ESOP Plan Subaccount" means a notational account within the Trust for
the purpose of recording the number of ESOP Plan Shares.

         "Fair Market Value" means as of any date the closing price on such date
(or if such date is not a trading day, then on the most recent prior date which
is a trading day) of a share of Company Stock as reported on the composite tape,
or similar reporting system, for issues listed on the New York Stock Exchange
(or, if the Company Stock is no longer traded on the New York Stock Exchange, on
such other national securities exchange on which the Company Stock is listed or
national securities or central market system upon which transactions in Company
Stock are reported, as either shall be designated by the Committee for the
purposes hereof) or if sales of Company Stock are not reported in any manner
specified above, the closing price on such date (or if such date is not a
trading day, then on the most recent prior date which is a trading day) in the
over-the-counter market as reported by the National Association of Securities
Dealers Automated Quotation System or, if not so reported, by the National
Quotation Bureau, Incorporated or similar organization selected by the
Committee. In the event that the Company Stock is not traded in any manner
specified above, the Fair Market Value shall be determined by an independent
appraiser.

         "Insolvency" or being "Insolvent" means (i) inability of the Company to
pay its debts as they become due, or (ii) the Company being subject to a pending
proceeding as a debtor under the provisions of Title 11 of the United States
Code (Bankruptcy Code).

         "1933 Act" means the Securities Act of 1933, as amended.

         "Option" means the right to purchase Company Stock at a stated or
formula price for a specified period of time.

         "Option Plan Participant" means any individual who holds an unexercised
Option to purchase Company Stock granted pursuant to the Stock Option Plan.

         "Option Plan Shares" means the shares of Company Stock which are to be
used for the sole purpose of satisfying the Company's obligations pursuant to
the exercise of Options granted under the Stock Option Plan.

         "Option Plan Subaccount" means a notational account within the Trust
for the purpose of recording the number of Option Plan Shares.

         "Plan Participant" means any individual who is a participant in any
employee benefit plan (including the ESOP) maintained by the Company, for
non-union employees of the Company, and includes Option Plan Participants.

         "Stock Option Plan" means the Hanover Foods Corporation 2002 Stock
Option Plan, as amended and supplemented from time to time, and any successor
plans.

         "Transferred Shares" means shares of Company Stock held in the Trust
which are Transferred to the ESOP pursuant to the direction of the Committee.

         "Trust Year" or "Fiscal Year" means the fiscal year of the Trust
ending.

                                       3
<PAGE>
         "Trustee" means the entity or individuals or any successor trustee.

         Any other capitalized term herein shall have the meaning as set forth
in the Plan to which it relates.

                                    ARTICLE 2

                           CONTRIBUTIONS AND DIVIDENDS

         2.1 Contributions.

                  (a) On the Effective Date of this Agreement, the Company
contributed to the Trust 142,449 shares of Common Stock, which are allocated to
ESOP Plan Subaccount of the Trust. The Company in its sole discretion may at any
time, or from time to time, make additional deposits or contributions of cash or
other property to be held under the ESOP Plan Subaccount of the Trust to augment
the principal to be held, administered and disposed of by the Trustee as
provided in this Agreement. Neither the Trustees nor any Plan administrator,
Plan Participant or other third party shall have any right to compel such
additional deposits or contributions.

                  (b) On the Restatement Date of this Agreement, the Company
shall contribute to the Trust 13,500 shares of Common Stock which shall be
designated as Option Plan Shares. Such Option Plan Shares, any subsequent
contribution of Common Stock designated as Option Plan Shares, and any other
Company Stock designated as Option Plan Shares, shall be allocated to the Option
Plan Subaccount of the Trust.

         2.2 Delivery of Shares.

                  (a) On the Effective Date of this Agreement, the Company
delivered to the Trustee a certificate representing the Company Stock to be
contributed to the Trust pursuant to Section 2.1(a), which certificate is
registered in the name of the Trustee. The Company will pay all transfer taxes,
if any, that may be payable in respect of the delivery of such Company Stock.

                  (b) On the Restatement Date, the Company shall deliver to the
Trustee a certificate representing the Company Stock to be contributed to the
Trust pursuant to Section 2.1(b), which certificate shall be registered in the
name of the Trustee, or the name of their nominee. The Company will pay all
transfer taxes, if any, that may be payable in respect of the delivery of such
Company Stock.

         2.3 Cash Dividends and Other Cash Distributions. Dividends and other
distributions paid in cash in any Trust year on Company Stock held in the ESOP
Plan Subaccount shall be allocated to the ESOP Plan Subaccount and dividends and
other distributions paid in cash in any Trust Year on Company Stock held in the
Option Plan Subaccount shall be allocated to the Option Plan Subaccount. Such
cash dividends and other cash distributions, whether held in the ESOP Plan
Subaccount or the Option Plan Subaccount, may be transferred to the ESOP or to
any other employee benefit plan of the Company or, alternatively, such cash
dividends and other cash distributions (whether held in the ESOP Plan Subaccount
or the Option Plan Subaccount) may be used to redeem shares of Company Stock
which are subject to put options pursuant to Article VI of ESOP. Under no
circumstances shall cash dividends and other cash distributions allocated to the
Option Plan Subaccount be paid to Option Plan Participants in their capacity as
such.

         2.4 Non-Cash Dividends and Other Non-Cash Distributions. Non-cash
dividends and other non-cash distributions paid in any Trust year on Company
Stock held in the ESOP Plan Subaccount shall be allocated to the ESOP Plan
Subaccount and non-cash dividends and other non-cash distributions paid in any
Trust Year on Company Stock held in the Option Plan Subaccount shall be
allocated to the Option Plan Subaccount. Such non-cash dividends and other
non-cash distributions, whether held in the ESOP Plan Subaccount or the Option
Plan Subaccount, may be transferred to the ESOP or to any other employee benefit
plan of the Company. Under no circumstances shall non-cash dividends and other
non-cash distributions allocated to the Option Plan Subaccount be paid to Option
Plan Participants in their capacity as such, except that capital stock of the
Company paid as a non-cash dividend or other non-cash distribution may be used
to satisfy Company obligations under an Option granted under the Stock Option
Plan.

                                       4
<PAGE>
                                    ARTICLE 3

                     TRANSFER AND WITHDRAWAL OF TRUST ASSETS

         3.1 Company Stock Made Available for Transfer from Trust. Immediately
upon written directive from the Committee, a number of shares of Company Stock
shall be made available for transfer from the Trust to the appropriate employee
benefit plan in the manner set forth in Section 3.2 and 3.3. The number of
Transferred Shares, determined as aforesaid, shall be certified to the Trustee
by the Committee. At no time on or before the fifth anniversary of the Effective
Date shall Company Stock be transferred to any employee benefit plan other than
the ESOP or to satisfy obligations upon exercise of Options.

         3.2 Transfers from Trust to ESOP Trust. Immediately upon the written
direction of the Committee, Company Stock and/or other assets held in the ESOP
Plan Subaccount shall be transferred by the Trustee to the trust maintained with
respect to the ESOP. The above notwithstanding, the aggregate Fair Market Value
of Company Stock and other assets transferred to the ESOP in the Plan Year of
the ESOP shall not exceed the limitation on deductible employer contributions as
set forth in Section 404 of the Code. Any assets other than Company Stock held
in the ESOP Plan Subaccount shall be transferred by the Trustee as directed by
the Committee in writing in such amounts and at such times to or for the benefit
of the ESOP.

         3.3 Other Transfers from Trust. Except as provided in the last sentence
of Section 3.1, immediately upon the written direction of the Committee, Company
Stock and/or other assets held in the Trust shall be transferred by the Trustee
to fund benefits provided under other employee benefit plans other than the ESOP
maintained by the Company for Plan Participants. Immediately upon the written
direction of the Committee, Company Stock and/or other assets held in the Trust
shall be sold and the proceeds used to fund benefits provided under other
employee benefit plans maintained by the Company for Plan Participants, provided
that no Company Stock shall be sold prior to the fifth anniversary of the
Effective Date except to the extent necessary to permit the ESOP to satisfy the
stock ownership requirements of Section 1042 of the Code. The above
notwithstanding, in no event shall the Trustee transfer to any plan an amount in
excess of the limitations on contributions set forth in such plan. The Company's
obligations under Options which are exercised by Option Plan Participants shall
be satisfied by transfers of Option Plan Shares allocated to the Option Plan
Subaccount.

         3.4 Withdrawal of Company Stock. The provisions of Section 1.3
notwithstanding, in the event that (a) the trustee of the ESOP acquires shares
of Company Stock from a source other than this Trust (including, but not limited
to, Company Stock acquired by contribution from the Company, through purchase by
the ESOP or otherwise) or (b) shares of Company Stock are acquired by any other
employee benefit plan of the Company from a source other than this Trust
(including, but not limited to, Company Stock acquired by contribution from the
Company, through purchase or otherwise), then the Company may at any time
thereafter withdraw a corresponding number of shares of Company Stock from the
ESOP Plan Subaccount of this Trust. At no time shall the aggregate number of
shares withdrawn from the Trust exceed the aggregate number of shares acquired
under the previous sentence.

                                    ARTICLE 4

                   COMPENSATION, EXPENSES AND TAX WITHHOLDING

         4.1 Compensation and Expenses. The Trustee shall be entitled to such
reasonable compensation for its services and to be reimbursed for its reasonable
legal, accounting and appraisal fees, expenses and other charges reasonably
incurred in connection with the administration, management, investment and
distribution of the Trust Fund all as may be agreed upon from time to time by
the Company and the Trustee. Such compensation shall be paid, and such
reimbursement shall be made, out of the Trust Fund unless paid directly by the
Company. In the event the Company fails to make the contributions necessary to
pay compensation and expenses owing to the Trustee, as contemplated by this
Section 4.1, the Trustees shall be entitled to seek payment of such compensation
and expenses directly from the Company.

         4.2 Withholding of Taxes. The Trustee shall report and withhold any
Federal, state or local taxes that it is required by law or is instructed by the
Company to withhold from any payments, transfer or distributions it makes
pursuant to this Agreement and shall pay over amounts withheld to the
appropriate taxing authorities.

                                       5
<PAGE>
                                    ARTICLE 5

                          ADMINISTRATION OF TRUST FUND

         5.1 Management and Control of Trust Fund. Subject to the terms of this
Agreement, the Trustee shall have exclusive authority and responsibility to
control the assets of the Trust Fund unless the Trustee is otherwise directed by
the Committee.

         5.2 Investment of Funds. Except as otherwise provided in this Section
5.2, the Trustee shall invest and reinvest the Trust Fund exclusively in Company
Stock, including any accretions thereto resulting from the proceeds of a tender
offer, recapitalization or similar transaction which, if not in Company Stock,
shall be reduced to cash as soon as practicable. Upon expressed written
direction of the Committee, the Trustee may invest any portion of the Trust Fund
temporarily pending investment in Company Stock, distribution or payment of
expenses in (a) investments in United States Government obligations with
maturities of less than one year, (b) interest-bearing accounts including but
not limited to certificates of deposit, time deposits, saving accounts and money
market accounts with maturities of less than one year in any bank, including the
Trustee, with aggregate capital at the time of such investment in excess of
$1,000,000,000 and a Moody's Investors Service Rating at the time of such
investment of at least P1, or an equivalent rating from a nationally recognized
rating agency, which accounts are insured by the Federal Deposit Insurance
Corporation or other similar federal agency, (c) obligations issued or
guaranteed by any agency or instrumentality of the United States of America with
maturities of less than one year, (d) short-term discount obligations of the
Federal National Mortgage Association or (e) a common, collective, or pooled
trust fund maintained by any corporate Trustee hereunder whose investments are
limited to those described in (a), (b), (c) and/or (d) of this paragraph, in
which event such part of the Trust Fund so transferred shall be subject to all
the terms and provisions of the common, collective, or pooled trust fund which
contemplate the commingling of such trust assets for investment purposes with
trust assets of other trusts.

         5.3 Trustee's Administrative Powers. Except as otherwise provided
herein, and subject to the Trustee's duties hereunder, the Trustee shall have
the following powers and rights, in addition to those provided elsewhere in this
Agreement or by law:

                  (a) to retain any asset of the Trust Fund for the purposes set
forth herein;

                  (b) with the consent of the Committee, to settle, submit to
arbitration, compromise, contest, prosecute or abandon claims and demands in
favor of or against the Trust Fund;

                  (c) to vote or to give any consent with respect to any
securities, including any Company Stock, held by the Trust either in person or
by proxy for any purpose, provided that the Trustee shall vote, tender or
exchange all shares of Company Stock as provided in Section 5.4;

                  (d) to employ such accountants, actuaries, attorneys,
investment bankers, appraisers, other advisors and agents as may be reasonably
necessary in collecting, managing, administering, investing, valuing,
distributing and protecting the Trust Fund or the assets thereof and to pay
their reasonable fees and expenses, which shall be deemed to be expenses of the
Trust and for which the Trustee shall be reimbursed in accordance with Section
4.1;

                  (e) to cause any asset of the Trust Fund to be issued, held or
registered in the Trustee's name or in the name of its nominee, or in such form
that title will pass by delivery, provided that the records of the Trustee shall
indicate the true ownership of such asset;

                  (f) to utilize another entity as custodian to hold, but not
invest or otherwise manage or control, some or all of the assets of the Trust
Fund; and

                  (g) to consult with legal counsel (who may also be counsel for
the Trustee or the Company generally) with respect to any of its duties or
obligations hereunder; to be fully protected in relying upon the written opinion
of such legal counsel; and to pay the reasonable fees and expenses of such
counsel, which shall be deemed to be expenses of the Trust and for which the
Trustee shall be reimbursed in accordance with Section 4.1.

                                       6
<PAGE>
         Notwithstanding any power granted to the Trustee pursuant to the
foregoing or under applicable law, neither the Trust nor the Trustee shall have
any power to, and shall not, engage in any trade or business (solely in its
capacity as Trustee of the Trust) and, in particular, the Trustee shall not have
any power that could give the Trust the objective of carrying on a business and
dividing the gains therefrom, within the meaning of Treas. Reg. 301.7701-2.

         5.4 Rights Regarding Company Stock.

                  (a) The Trustee shall retain voting powers attendant to the
Company Stock held by the Trust, whether such Company Stock is held in the ESOP
Plan Subaccount or the Option Plan Subaccount. Except as provided in Section
5.4(b) and Section 5.4(d), the Trustee shall vote Company Stock held by the ESOP
Plan Subaccount in the same proportions as ESOP Active Participants (as that
term is used in Section 1.42 of the ESOP) have directed the voting of Company
Stock allocated to their Company Stock Accounts pursuant to Section 6.07 of the
ESOP. Company Stock held in the Option Plan Subaccount shall be voted as
provided in Section 5.4(c) and 5.4(d) hereof.

                  (b) The Trustee shall retain voting powers attendant to the
Company Stock held by the ESOP Plan Subaccount with respect to any vote that
occurs prior to the date upon which Company Stock is initially allocated to ESOP
Active Participants' Company Stock Accounts. The Trustee shall vote such stock
in the same proportions as instructed by the ESOP Active Participants. Each
Active Participant's voting instructions shall be accorded a value equal to the
ratio of the Active Participant's Compensation to the aggregate Compensation of
all ESOP Active Participants who tender voting instructions. The Trustee would
then vote the Company Stock in accordance with the aggregate voting
instructions. With respect to Company Stock as to which no voting instruction
has been received, such Company Stock shall be voted by the Trustee in the same
proportion to the aggregate voting instructions actually received from all ESOP
Active Participants who provide voting instructions.

                  (c) The Trustee shall retain voting powers attendant to the
Option Plan Shares held in the Option Plan Subaccount. The Trustee shall vote
the Option Plan Shares in the same proportions as instructed by the Option Plan
Participants. Each Option Plan Participant's voting instructions will be
accorded a value equal to the ratio of the Option Plan Participant's unexercised
Options to the total unexercised Options held by all Option Plan Participants
who tender voting instructions. The Trustee shall then vote the Option Plan
Shares in accordance with the aggregate voting instructions. With respect to
Option Plan Shares as to which no voting instruction has been received, such
Option Plan Shares shall be voted by the Trustee in the same proportion to the
aggregate voting instructions actually received from all Option Plan
Participants who provide voting instructions.

                  (d) Notwithstanding any other provision in this Section 5.4,
with respect to any vote that the Trustee determines to be procedural or
ministerial in nature (including, but not limited to, adjournment, postponement
other similar motions at shareholders meetings and other procedural matters to
come before such meetings), the Trustee shall exercise his/her/its independent
judgment in voting the Company Stock held in the Trust. The previous sentence
notwithstanding, in no event shall this Section 5.4(d) apply to any vote of
Company Stock on a corporate matter which relates to the election or removal of
directors, any amendment to the Articles of Incorporation or Bylaws of the
Company, the approval or disapproval of any corporate merger or consolidation,
recapitalization, reclassification, liquidation, dissolution, sale of
substantially all assets of a trade or business, or any other similar
transaction described in Code Section 409(c)(3) or any regulations or rulings
issued thereunder. With respect to such matters, the Trustee shall vote Company
Stock in accordance with Section 5.4(a) (or if applicable Section 5.4(b)) and
Section 5.4(c).

                  (e) The Trustee shall employ an independent firm to determine
the voting instructions of each ESOP Active Participant and each Option Plan
Participant and to advise the Trustee of the aggregate voting instructions of
such individuals. The communication of the voting instructions by any individual
ESOP Active Participant and any individual Option Plan Participant shall be
confidential and shall not be divulged to the Trustee or to anyone including the
Company or any director, officer, employee or agent of the Company. The Trustee
shall take all appropriate action to assure confidentiality as to the voting
instructions of ESOP Active Participants and Option Plan Participants.

         5.5 Indemnification.

                  To the extent lawfully allowable, the Company shall and hereby
does indemnify and hold harmless the Trustee from and against any claims,
demands, actions, administrative or other proceedings, causes of action,
liability, loss, costs, damage or expense (including reasonable attorneys'
fees), which may be asserted against it, in any way arising out of or incurred
as a result of its action or failure to act in connection with the operation and

                                       7
<PAGE>
administration of the Trust; provided that such indemnification shall not apply
to the extent that the Trustee has acted in willful violation of applicable law
or willful violation of its duties under this Trust or in bad faith. The Trustee
shall be under no liability to any person for any loss of any kind which may
result (i) by reason of any action taken by it in accordance with any direction
of the Committee or pursuant to Section 5.4, (ii) by reason of its failure to
exercise any power or authority or to take any action hereunder because of the
failure of the Committee to give directions to the Trustee, as provided for in
this Agreement or (iii) by reason of any act or omission of the Committee with
respect to its duties under this Trust. The Trustee shall be fully protected in
acting upon any instrument, certificate or paper delivered by the Committee or
the trustee or administrator of any Plan and believed in good faith by the
Trustee to be genuine and to be signed or presented by the proper person or
persons, and the Trustee shall be under no duty to make any investigation or
inquiry as to any statement contained in any such writing, but may accept the
same as conclusive evidence of the truth and accuracy of the statements therein
contained. This section shall survive termination of this Agreement.

                  The Company may, but shall not be required to, maintain
liability insurance to insure its obligations hereunder. If any payments made by
the Company or the Trust pursuant to this indemnity are covered by insurance,
the Company or the Trust (as applicable) shall be subrogated to the rights of
the indemnified party against the insurance company.

         5.6 General Duty to Communicate to Committee. The Trustee shall
promptly notify the Committee of all communications with or from any
governmental agency or with respect to any legal proceeding with regard to the
Trust and with or from any Plan Participants concerning their alleged
entitlements under the Trust.

                                    ARTICLE 6

                                DUTIES OF TRUSTEE

         6.1 Records and Accounts of Trustee. The Trustees shall maintain
accurate and detailed records and accounts of all transactions of the Trust,
which shall be available at all reasonable times for inspection or audit by any
person designated by the Company and which shall be retained.

         6.2 Reports of Trustee. Within thirty (30) days following the close of
each Fiscal Year and each quarter of each Fiscal Year, the Trustee shall deliver
to the Committee a statement for the period ending on the last day of such
Fiscal Year and/or quarter of such Fiscal Year, as the case may be, listing all
securities and other property acquired or disposed of and all receipts,
disbursements and other transactions effected by the Trust during such period,
and further listing all cash, securities, and other property held by the Trust,
together with the Fair Market Value thereof, as of the end of such period. In
addition to the foregoing, the report shall contain such information regarding
the Trust Fund's assets and transactions as the Committee in its discretion may
reasonably request. The Trustee shall also deliver to the Committee such
statements for other periods as the Committee may reasonably request. Except as
otherwise provided in the next sentence, all tax returns and other regulatory
filings, if any, required by the Trust shall be prepared by the Trustee and
submitted to the Committee for the Company's review at least thirty (30) days
before the due date (including any extension thereof) for filing such tax return
or other regulatory filing. The Company may, upon written notice to the Trustee,
assume the responsibility for preparing any tax return or other regulatory
filing required by the Trust.

         6.3 Final Statement. In the event of the resignation or removal of a
Trustee hereunder, the Committee may request and the Trustee shall with
reasonable promptness submit, for the period ending on the effective date of
such resignation or removal, a statement similar in form and purpose to that
described in Section 6.2.

                                    ARTICLE 7

                              SUCCESSION OF TRUSTEE

         7.1 Resignation of Trustee. The Trustee or any successor thereto may
resign as Trustee hereunder at any time upon delivering a written notice of such
resignation, to take effect 60 days after the delivery thereof to the Committee,
unless the Committee accepts shorter notice; provided, however, that no such
resignation shall be effective until a successor Trustee has assumed the office
of Trustee hereunder.

                                       8
<PAGE>
         7.2 Removal of Trustee. The Trustee or any successor thereto may be
removed by the Company by delivering to the Trustee so removed an instrument
executed by the Committee. Such removal shall take effect at the date specified
in such instrument, which shall not be less than 60 days after delivery of the
instrument, unless the Trustee accepts shorter notice; provided, however, that
no such removal shall be effective until a successor Trustee has assumed the
office of Trustee hereunder.

         7.3 Appointment of Successor Trustee. Whenever the Trustee or any
successor thereto shall resign or be removed or a vacancy in the position shall
otherwise occur, the Committee shall use its best efforts to appoint a successor
Trustee as soon as practicable after receipt by the Committee of a notice
described in Section 8.1, or the delivery to the Trustee of a notice described
in Section 7.2, as the case may be, but in no event more than 60 days after
receipt or delivery, as the case may be, of such notice. A successor Trustee's
appointment shall not become effective until such successor shall accept such
appointment by delivering its acceptance in writing to the Company. If a
successor is not appointed within such 60-day period, the Trustee, at the
Company's expense, may petition a court of competent jurisdiction for
appointment of a successor.

         7.4 Succession to Trust Fund Assets. The title to all property held
hereunder shall vest in any successor Trustee acting pursuant to the provisions
hereof without the execution or filing of any further instrument, but a
resigning or removed Trustee shall, at the expense of the Company, execute all
instruments and do all acts necessary to vest title in the successor Trustee.
Each successor Trustee shall have, exercise and enjoy all of the powers, both
discretionary and ministerial, herein conferred upon its predecessors. A
successor Trustee shall not be obliged to examine or review the accounts,
records, or acts of, or property delivered by, any previous Trustee and shall
not be responsible for any action or any failure to act on the part of any
previous Trustee.

         7.5 Continuation of Trust. In no event shall the legal disability,
resignation or removal of a Trustee terminate the Trust, but the Committee shall
forthwith appoint a successor Trustee in accordance with Section 7.3 to carry
out the terms of the Trust.

         7.6 Changes in Organization of Trustee. In the event that any corporate
Trustee hereunder shall be converted into, shall merge or consolidate with, or
shall sell or transfer substantially all of its assets and business to another
corporation, the corporation resulting from such conversion, merger or
consolidation, or the corporation to which such sale or transfer shall be made,
shall thereafter become and be the Trustee under the Trust with the same effect
as though originally so named but only if such corporation is qualified to be a
successor trustee hereunder.

         7.7 Continuance of Trustee's Powers in Event of Termination of the
Trust. In the event of the termination of the Trust, as provided herein, the
Trustee shall dispose of the Trust Fund in accordance with the provisions
hereof. Until the final distribution of the Trust Fund, the Trustee shall
continue to have all powers provided hereunder as necessary or expedient for the
orderly liquidation and distribution of the Trust Fund.

                                    ARTICLE 8

                            AMENDMENT OR TERMINATION

         8.1 Amendments. Except as otherwise provided herein, the Company may
amend the Trust at any time and from time to time in any manner, which it deems
desirable, provided, however:

                  (a) no amendment may change the duties of the Trustee without
the Trustee's consent, which consent shall not be unreasonably withheld;

                  (b) no amendment may alter the terms of Section 1.3 to make
the Trust revocable or to withdraw Company Stock from the Trust, except as
provided in Section 3.4; and

                  (c) no amendment shall permit the Board of Directors, as such,
to directly or indirectly control the Company Stock.

         Notwithstanding the foregoing, the Company, acting in good faith taking
into account the best interests of a broadly-based population of individuals
employed by the Company or broadly-based employee benefit plans in which

                                       9
<PAGE>
such persons participate, shall retain the power under all circumstances to
amend the Trust to add or delete employee benefit plans and to clarify any
ambiguities or similar issues of interpretation in this Agreement.

         8.2 Termination. The Trust shall terminate upon the date on which the
Trust no longer holds any assets.

         8.3 Merger. Subject to the provisions of Section 1.3, if the Company is
merged into another corporation or another corporation is merged into the
Company then (a) the surviving corporation shall become the grantor of the
Trust, (b) the assets of the Trust shall be subject to the claims of the
creditors of the surviving corporation in accordance with Article 1, above, and
(c) the provisions of this Agreement which apply to Company Stock (including
without limitation the provisions of Article 4, above) shall apply to the stock
of the surviving corporation held hereunder or transferred to the Trust.

         8.4 Form of Amendment or Termination. Any amendment or termination of
the Trust shall be evidenced by an instrument in writing signed by an authorized
officer of the Company, certifying that said amendment or termination has been
authorized and directed by the Company or the Board of Directors, as applicable.

                                    ARTICLE 9

                                  MISCELLANEOUS

         9.1 Controlling Law. The laws of the Commonwealth of Pennsylvania shall
be the controlling law in all matters relating to the Trust, without regard to
conflicts of law.

         9.2 Committee Action. Any action required or permitted to be taken by
the Committee may be taken on behalf of the Committee by any individual so
authorized. The Company shall furnish to the Trustee the name and specimen
signature of each member of the Committee upon whose statement of a decision or
direction the Trustee is authorized to conclusively rely. Until notified of a
change in the identity of such person or persons, the Trustee shall act upon the
assumption that there has been no change.

         9.3 Notices. All notices, requests, or other communications required or
permitted to be delivered hereunder shall be in writing, delivered by registered
or certified mail, return receipt requested, telecopier or hand delivery as
follows:

To the Company:

         Gary T. Knisely, Esquire
         Hanover Foods Corporation
         P. O. Box 334
         Hanover, PA  17331

with a copy to:

         Frederick D. Lipman, Esquire
         Blank Rome Comisky & McCauley LLP
         One Logan Square
         Philadelphia, PA  19103-6998

To the Trustee:

         Cyril T. Noel
         344 1/2 North Street
         McSherrystown, PA  17344

         Any party hereto may from time to time, by written notice given as
aforesaid, designate any other address to which notices, requests or other
communications addressed to it shall be sent.

                                       10
<PAGE>
         9.4 Severability. If any provision of the Trust shall be held illegal,
invalid or unenforceable for any reason, such provision shall not affect the
remaining parts hereof, but the Trust shall be construed and enforced as if said
provision had never been inserted herein.

         9.5 Protection of Persons Dealing with the Trust. No person dealing
with the Trustee shall be required or entitled to monitor the application of any
money paid or property delivered to the Trustee, or determine whether or not the
Trustee is acting pursuant to authorities granted to it hereunder or to
authorizations or directions herein required.

         9.6 Tax Status of Trust. The trust is intended to be a grantor trust,
of which the Company is the grantor, within the meaning of subpart E, part 1,
subchapter J, chapter 1, subtitle A of the Code, and shall be construed
accordingly. Until advised otherwise, the Trustee and the Company may presume
that the Trust is so characterized for Federal income tax purposes and the
Trustee shall make all filings of tax returns on that presumption.

         9.7 No Third Party Rights; Plan Participants to Have No Interest in the
Company by Reason of the Trust. Neither this Agreement nor the Trust shall
confer upon any person other than the parties hereto any rights, remedy or claim
with respect to the assets of the Trust or otherwise. Neither the creation of
the Trust nor anything contained in the Trust shall be construed as giving any
person, including any individual employed by the Company or any subsidiary of
the Company, any equity or interest in the assets, business or affairs of the
Company or any Plan Participant a right to any benefit available under the ESOP
or any other employee benefit plan maintained by the Company.

         9.8 Nonassignability. No right or interest, if any, of any person to
receive distributions from the Trust shall be assignable or transferable, in
whole or in part, either directly or by operation of law or otherwise,
including, but not by way of limitation, by execution, levy, garnishment,
attachment, pledge, or bankruptcy, but excluding death or mental incompetency,
and, to the fullest extent permitted by applicable law, no right or interest, if
any, of any person to receive distributions from the Trust shall be subject to
any obligation or liability of any such person, including claims for alimony or
the support of any spouse or child.

         9.9 Gender and Plurals. Whenever the context requires or permits, the
masculine general shall include the feminine gender and the singular form shall
include the plural form and shall be interchangeable.

         9.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original.

                                       11
<PAGE>
         IN WITNESS WHEREOF, the Company and the Trustee have caused this
revised and restated Agreement to be signed, and their seals affixed hereto, by
their authorized officers all as of the day, month and year first above written.

ATTEST:                                     HANOVER FOODS CORPORATION

                                            By:
--------------------------------               --------------------------------

Secretary                                             President

WITNESS

--------------------------------               --------------------------------
                                               Cyril T. Noel, Trustee

                                       12
<PAGE>
                              EMPLOYEE STOCK TRUST

                 (Revised and Restated Effective June 20, 2002)

                            HANOVER FOODS CORPORATION

                              EMPLOYEE STOCK TRUST

                 (Revised and Restated Effective June 20, 2002)

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE
<S>                                                                                        <C>
ARTICLE 1 - Trust, Trustee and Trust Fund

1.1   Trust...............................................................................  1
1.2   Trustee.............................................................................  1
1.3   Irrevocable Trust...................................................................  2
1.4   Trust Fund .........................................................................  2
1.5   Trust Fund Subject to Claims of Creditors...........................................  2
1.6   No Board of Directors' Control......................................................  2
1.7   Definitions.........................................................................  2

ARTICLE 2 - Contributions and Dividends

2.1   Contributions.......................................................................  4
2.2   Delivery of Shares .................................................................  4
2.3   Cash Dividends and Other Cash Distributions.........................................  4
2.4   Non-Cash Dividends and Other Non-Cash Distributions.................................  4

ARTICLE 3 - Transfer and Withdrawal of Company Stock

3.1   Company Stock Made Available for Transfer from Trust................................  5
3.2   Transfers from Trust to ESOP Trust..................................................  5
3.3   Other Transfers from Trust..........................................................  5
3.4   Withdrawal of Company Stock.........................................................  5

ARTICLE 4 - Compensation, Expenses and Tax Withholding

4.1   Compensation and Expenses...........................................................  5
4.2   Withholding of Taxes................................................................  6

ARTICLE 5 - Administration of Trust Fund

5.1   Management and Control of Trust Fund................................................  6
5.2   Investment of Funds.................................................................  6
5.3   Trustee's Administrative Powers.....................................................  6
5.4   Rights Regarding Company Stock......................................................  7
5.5   Indemnification.....................................................................  8
5.6   General Duty to Communicate to Committee............................................  8

ARTICLE 6 - Duties of Trustee

6.1   Records and Accounts of Trustee.....................................................  8
6.2   Reports of Trustee..................................................................  8
6.3   Final Statement.....................................................................  9

ARTICLE 7 - Succession of Trustee

7.1   Resignation of Trustee..............................................................  9
7.2   Removal of Trustee..................................................................  9
7.3   Appointment of Successor Trustee....................................................  9
7.4   Succession to Trust Fund Assets.....................................................  9
7.5   Continuation of Trust...............................................................  9
7.6   Changes in Organization of Trustee..................................................  9
</TABLE>

                                       i
<PAGE>
<TABLE>
<S>                                                                                        <C>
7.7   Continuance of Trustee's Powers in Event of Termination of the Trust................  9

ARTICLE 8 - Amendment or Termination

8.1   Amendments..........................................................................  10
8.2   Termination.........................................................................  10
8.3   Merger..............................................................................  10
8.4   Form of Amendment or Termination....................................................  10

ARTICLE 9 - Miscellaneous

9.1   Controlling Law.....................................................................  10
9.2   Committee Action....................................................................  10
9.3   Notices.............................................................................  10
9.4   Severability........................................................................  11
9.5   Protection of Persons Dealing with the Trust........................................  11
9.6   Tax Status of Trust.................................................................  11
9.7   No third Party Rights; Plan Participants to Have No Interest in the Company
      by Reason of the Trust..............................................................  11
9.8   Nonassignability....................................................................  11
9.9   Gender and Plurals..................................................................  11
9.10  Counterparts........................................................................  11
</TABLE>

                                       ii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]