Document:

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                                                                   EXHIBIT 10.20

                          AMENDED AND RESTATED GUARANTY

                  AMENDED AND RESTATED GUARANTY, dated as of December 27, 2001,
made by Cassco Ice & Cold Storage, Inc., a Virginia corporation, Packaged Ice
IP, Inc., a Nevada corporation, Reddy Ice Corporation, a Nevada corporation and
Southern Bottled Water Company, Inc., a Nevada corporation (each a "Guarantor"
and collectively, the "Guarantors"), in favor of each of the Lenders (as
hereinafter defined) and Ableco Finance LLC, a Delaware limited liability
company ("Ableco"), as collateral agent for the Lenders (in such capacity, the
"Collateral Agent") and as administrative agent for the Lenders (in such
capacity, the "Administrative Agent" and together with the Collateral Agent,
each an "Agent" and collectively, the "Agents") pursuant to the Credit Agreement
referred to below.

                                   WITNESSETH:

                  WHEREAS, Packaged Ice, Inc., a Texas corporation (the
"Borrower"), certain lenders (the "Prior Lenders"), Antares Capital Corporation,
as a co-agent for the Prior Lenders ("Antares"), and Bank of America, N.A., as a
co-agent and administrative agent for the Prior Lenders ("Bank of America", and
together with Antares, the "Prior Agents"), were party to an Amended and
Restated Credit Agreement, dated as of November 28, 2000 (as such agreement may
have been amended from time to time, the "Original Credit Agreement"), pursuant
to which the Prior Lenders agreed to make loans and other extensions of credit
to the Borrower in an aggregate principal amount not to exceed $88,000,000 at
any time outstanding;

                  WHEREAS, in connection with the Original Credit Agreement, the
Guarantors executed a Guaranty dated as of November 28, 2000 (the "Original
Guaranty") in favor of Bank of America, as agent for the benefit of the Prior
Lenders;

                  WHEREAS, pursuant to an Assignment and Acceptance, dated as of
the date hereof (the "Assignment and Acceptance"), from the Prior Lenders, as
assignors, to the Collateral Agent, the Administrative Agent and certain other
lenders (collectively, the "Lenders"), as assignees, the Lenders have acquired
all of the Loans and Commitments of each of the Prior Lenders and all rights and
obligations of the Prior Lenders under the Original Credit Agreement and the
other Loan Documents (as defined in the Original Credit Agreement), including,
without limitation, the Original Guaranty;

                  WHEREAS, in connection with and immediately following such
acquisition by the Lenders of all the Loans and Commitments of each of the Prior
Lenders and all rights and obligations of the Prior Lenders under the Original
Credit Agreement, the Prior Agents have resigned as agents under the Original
Credit Agreement pursuant to Section 8.9 thereof and the Lenders have
concurrently appointed Ableco as successor agent under the Original Credit
Agreement in accordance with Section 8.9 thereof and Collateral Agent and
Administrative Agent, respectively, under and pursuant to the provisions of that
certain Second Amended and Restated Credit Agreement of even date herewith (as
the same may be supplemented, modified, amended or restated from time to time,
the "Credit Agreement"), among the Borrower, the Collateral Agent, the
Administrative Agent and the Lenders, which Credit Agreement amends and restates
the Original Credit Agreement;

                  WHEREAS, each of the parties hereto desires to amend the
Original Guaranty in order to reflect the amendment and restatement of the terms
and provisions of the Original Credit Agreement as set forth in the Credit
Agreement; and

                  WHEREAS, each of the parties hereto agrees that the execution,
delivery and performance of this Amended and Restated Guaranty directly
benefits, and is in such Person' s best interest;

                  NOW, THEREFORE, in consideration of the premises and the
covenants contained herein, the Guarantors hereby agree that the Original
Guaranty shall be amended and restated as follows:

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                  SECTION 1. Definitions. Reference is hereby made to the Credit
Agreement for a statement of the terms thereof. All terms used in this Guaranty
which are defined in the Credit Agreement and not otherwise defined herein shall
have the same meanings herein as set forth therein.

                  SECTION 2. Guaranty. Each Guarantor, jointly and severally,
hereby unconditionally and irrevocably guarantees the punctual payment when due,
whether at stated maturity, by acceleration or otherwise, of all Obligations of
the Borrower now or hereafter existing under any Loan Document, including,
without limitation, all Letter of Credit Obligations under the Credit Agreement,
whether for principal, interest (including, without limitation, all interest
that accrues after the commencement of any case, proceeding or other action
relating to bankruptcy, insolvency or reorganization of any Loan Party), fees,
expenses or otherwise (such obligations being the "Guaranteed Obligations"), and
agrees to pay any and all reasonable expenses (including reasonable counsel fees
and expenses) incurred by the Collateral Agent and the Lenders in enforcing any
rights under this Guaranty. Without limiting the generality of the foregoing,
each Guarantor's liability shall extend to all amounts that constitute part of
the Guaranteed Obligations and would be owed by the Borrower to the Collateral
Agent and the Lenders under any Loan Document but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Loan Party.

                  The parties hereto intend that the liability of the Guarantor
hereunder be limited to the maximum amount that would not result in the
liability of each such Guarantor for the Guaranteed Obligations being voidable
under Section 548 of the Federal Bankruptcy Code (11 U.S.C. ss. 548; as amended,
hereinafter "Section 548") or other applicable fraudulent conveyance or transfer
law and agree that this provision shall be so construed. Accordingly, the
liability of each Guarantor hereunder is limited to an amount that is the
greater of: (a) the "reasonable equivalent value" or "fair consideration"
received by such Guarantor in exchange for the Guaranteed Obligations, within
the meaning of Section 548 or any applicable state fraudulent conveyance or
transfer law; and (b) the lesser of: (i) the maximum amount that will not render
such Guarantor insolvent; or (ii) the maximum amount that will not leave such
Guarantor with property deemed unreasonably small capital. Clauses (i) and (ii)
are and shall be determined pursuant to Section 548 or other applicable state
fraudulent conveyance or transfer law.

                  SECTION 3. Guaranty Absolute; Continuing Guaranty;
Assignments.

                  (a) Each Guarantor jointly and severally, hereby
unconditionally and irrevocably guarantees that the Guaranteed Obligations will
be paid strictly in accordance with the terms of the Loan Documents, regardless
of any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of the Collateral Agent or the Lenders
with respect thereto. The obligations of the each Guarantor under this Guaranty
are independent of the Guaranteed Obligations, and a separate action or actions
may be brought and prosecuted against such Guarantor to enforce such
obligations, irrespective of whether any action is brought against any Loan
Party or whether any Loan Party is joined in any such action or actions. The
liability of each Guarantor under this Guaranty shall be irrevocable, absolute
and unconditional irrespective of, and each Guarantor hereby irrevocably waives
any defenses it may now or hereafter have in any way relating to, any or all of
the following:

                           (i) any lack of validity or enforceability of any
Loan Document or any agreement or instrument relating thereto;

                           (ii) any change in the time, manner or place of
payment of, or in any other term of, all or any of the Guaranteed Obligations,
or any other amendment or waiver of or any consent to departure from any Loan
Document, including, without limitation, any increase in the Guaranteed
Obligations resulting from the extension of additional credit to any Loan Party
or otherwise;

                           (iii) any taking, exchange, release or non-perfection
of any Collateral, or any taking, release or amendment or waiver of or consent
to departure from any other guaranty, for all or any of the Guaranteed
Obligations;

                           (iv) any change, restructuring or termination of the
corporate, limited liability company or partnership structure or existence of
any Loan Party; or

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                           (v) any other circumstance (including any statute of
limitations) or any existence of or reliance on any representation by the
Collateral Agent or the Lenders that might otherwise constitute a defense
available to, or a discharge of, any Loan Party or any other guarantor or
surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Collateral Agent, the Lenders or any other
Person upon the insolvency, bankruptcy or reorganization of any Loan Party or
otherwise, all as though such payment had not been made.

                  (b) This Guaranty is a continuing guaranty and shall (i)
remain in full force and effect until the later of (1) the cash payment in full
of the Guaranteed Obligations (other than indemnification obligations as to
which no claim has been made) and all other amounts payable under this Guaranty
and the cancellation or cash collateralization of all Letters of Credit and (2)
the Final Maturity Date, (ii) be binding upon each Guarantor, its successors and
assigns and (iii) inure to the benefit of and be enforceable by the Collateral
Agent, the Lenders and their successors, pledgees, transferees and assigns.
Without limiting the generality of the foregoing clause (iii), any Lender may
pledge, assign or otherwise transfer all or any portion of its rights and
obligations under any Loan Document to any other Person, and such other Person
shall thereupon become vested with all the benefits in respect thereof granted
to such Lender herein or otherwise, in each case as provided in Section 11.07 of
the Credit Agreement.

                  SECTION 4. Waivers. Each Guarantor hereby waives promptness,
diligence, notice of acceptance, notice of acceleration, notice of intent to
accelerate and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that the Collateral Agent or
the Lenders exhaust any right or take any action against any Loan Party or any
other Person or any Collateral. Each Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated herein
and that the waiver set forth in this Section 4 is knowingly made in
contemplation of such benefits. Each Guarantor hereby waives any right to revoke
this Guaranty, and acknowledges that this Guaranty is continuing in nature and
applies to all Guaranteed Obligations, whether existing now or in the future.

                  SECTION 5. Subrogation. Each Guarantor may not exercise any
rights that it may now or hereafter acquire against any Loan Party or any other
guarantor that arise from the existence, payment, performance or enforcement of
such Guarantor's obligations under this Guaranty, including, without limitation,
any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of the
Collateral Agent and the Lenders against any Loan Party or any other guarantor
or any Collateral, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, including, without limitation, the
right to take or receive from any Loan Party or any other guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security solely on account of such claim, remedy or right, unless and
until all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash and the Final Maturity Date shall
have occurred. If any amount shall be paid to any Guarantor in violation of the
immediately preceding sentence at any time prior to the later of the payment in
full in cash of the Guaranteed Obligations and all other amounts payable under
this Guaranty and the Final Maturity Date, such amount shall be held in trust
for the benefit of the Collateral Agent and the Lenders and shall forthwith be
paid to the Collateral Agent and the Lenders to be credited and applied to the
Guaranteed Obligations and all other amounts payable under this Guaranty,
whether matured or unmatured, in accordance with the terms of the Credit
Agreement, or to be held as Collateral for any Guaranteed Obligations or other
amounts payable under this Guaranty thereafter arising. If (a) any Guarantor
shall make payment to the Collateral Agent and the Lenders of all or any part of
the Guaranteed Obligations, (b) all of the Guaranteed Obligations and all other
amounts payable under this Guaranty shall be paid in full in cash and (c) the
Final Maturity Date shall have occurred, the Collateral Agent and the Lenders
will, at such Guarantor's request and expense, execute and deliver to such
Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor of
an interest in the Guaranteed Obligations resulting from such payment by such
Guarantor.

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                  SECTION 6. Representations, Warranties and Covenants. Each
Guarantor hereby represents and warrants as follows:

                  (a) Each Guarantor (i) is a corporation, duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization as set forth on the first page hereof; and (ii) has all requisite
power and authority to execute, deliver and perform this Guaranty and each other
Loan Document to which such Guarantor is a party.

                  (b) The execution, delivery and performance by each Guarantor
of this Guaranty and each other Loan Document to which such Guarantor is a party
(i) have been duly authorized by all necessary action, (ii) do not contravene
its organizational documents or any applicable law, (iii) do not violate any
contractual restriction binding on or otherwise affecting such Guarantor, and
(iv) do not result in or require the creation of any Lien, security interest or
other charge or encumbrance upon or with respect to any of its properties other
than pursuant to any such Loan Document.

                  (c) No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection
with the due execution, delivery and performance by any Guarantor of this
Guaranty or any of the other Loan Documents to which such Guarantor is a party,
except (i) for recordings and filings in connection with the Liens granted to
the Collateral Agent under the Loan Documents, (ii) those obtained or made on or
prior to the Effective Date and (iii) for the filing of any financing statements
on Form UCC-1 necessary to perfect the security interests purported to be
created by any Loan Documents to which such Guarantor is a party.

                  (d) Each of this Guaranty and the other Loan Documents to
which each Guarantor is a party is a legal, valid and binding obligation of such
Guarantor, enforceable against such Guarantor in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws or by general equitable principles.

                  (e) There is no pending or, to the best knowledge of any
Guarantor, threatened action, suit or proceeding against such Guarantor or to
which any of the properties of such Guarantor is subject, before any court or
other Governmental Authority or any arbitrator (i) which challenges the validity
or enforceability of this Guaranty or any of the other Loan Documents to which
such Guarantor is a party, or (ii) which could reasonably be expected to have a
Material Adverse Effect.

                  (f) Each Guarantor (i) has read and understands the terms and
conditions of the Credit Agreement and the other Loan Documents, and (ii) now
has and will continue to have independent means of obtaining information
concerning the affairs, financial condition and business of the Borrower and the
other Loan Parties, and has no need of, or right to obtain from the Collateral
Agent or any Lender, any credit or other information concerning the affairs,
financial condition or business of the Borrower or the other Loan Parties that
may come under the control of the Collateral Agent or any Lender.

                  (g) Each Guarantor covenants and agrees that until the later
of (1) the cash payment in full of the Guaranteed Obligations (other than
indemnification obligations as to which no claim has been made) and all other
amounts payable under this Guaranty and the cancellation or cash
collateralization of all Letters of Credit, it will comply with each of the
covenants which are set forth in Section 7.01 and Section 7.02 of the Credit
Agreement as if such Guarantor were a party thereto.

                  SECTION 7. Right of Set-off. Upon the occurrence and during
the continuance of any Event of Default, the Collateral Agent or any Lender may,
and is hereby authorized to, at any time and from time to time, without notice
to any Guarantor (any such notice being expressly waived by each Guarantor) and
to the fullest extent permitted by law, set-off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Collateral Agent or any Lender to or
for the credit or the account of such Guarantor against any and all obligations
of such Guarantor now or hereafter existing under this Guaranty, irrespective of
whether or not the Collateral Agent or any Lender shall have made any demand

                                      -4-
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under this Guaranty and although such obligations may be contingent or
unmatured. The Collateral Agent and each Lender agree to notify each Guarantor
promptly after any such set-off and application made by the Collateral Agent or
such Lender, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Collateral Agent and
the Lenders under this Section 7 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which the Collateral
Agent and the Lenders may have.

                  SECTION 8. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing and shall be mailed (by certified
mail, postage prepaid and return receipt requested), telecopied or delivered, if
to any Guarantor, to it in care of the Borrower at its address set forth in the
Credit Agreement, or if to the Collateral Agent, to it at its address set forth
in the Credit Agreement; or as to either such Person at such other address as
shall be designated by such Person in a written notice to such other Person
complying as to delivery with the terms of this Section 8. All such notices and
other communications shall be effective (i) if sent by certified mail, return
receipt requested, when received or 3 Business Days after mailing, whichever
first occurs, (ii) if telecopied, when transmitted and confirmation is received,
provided same is on a Business Day and, if not, on the next Business Day or
(iii) if delivered, upon delivery, provided same is on a Business Day and, if
not, on the next Business Day.

                  SECTION 9. Consent to Jurisdiction; Waiver of Immunities.

                  (a) Each Guarantor hereby irrevocably and unconditionally
submits for itself and its property to the jurisdiction of any New York State or
federal court sitting in New York City in any action or proceeding arising out
of or relating to this Guaranty or any other Loan Document to which such
Guarantor is a party, and such Guarantor hereby irrevocably agrees that all
claims in respect of such action or proceeding may be heard and determined in
such New York State or federal court. Each Guarantor hereby irrevocably appoints
the Borrower as its agent to receive on behalf of such Guarantor and its
property service of copies of the summons and complaint and any other process
which may be served in any such action or proceeding. Such service may be made
by mailing (by certified or registered mail, postage prepaid and return receipt
requested) or delivering a copy of such process to such Guarantor in care of the
Borrower at the Borrower's address specified in the Credit Agreement, and such
Guarantor hereby irrevocably authorizes and directs the Borrower to accept such
service on its behalf. Each Guarantor agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

                  (b) Nothing in this Section 9 shall affect the right of the
Collateral Agent or the Lenders to serve legal process in any other manner
permitted by law or affect the right of the Collateral Agent or the Lenders to
bring any action or proceeding against any Guarantor or its property in the
courts of any other jurisdiction.

                  (c) Each Guarantor hereby expressly and irrevocably waives, to
the fullest extent permitted by law, (i) any objection which it may now or
hereafter have to the laying of venue of any such litigation brought in any such
court referred to above and any claim that any such litigation has been brought
in an inconvenient forum, and (ii) any right it may have to claim or recover in
any legal action or proceeding referred to in this Section any special
exemplary, punitive or consequential damages. To the extent that any Guarantor
has or hereafter may acquire any immunity from jurisdiction of any court or from
any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution or otherwise) with respect to itself or
its property, such Guarantor hereby irrevocably waives such immunity in respect
of its obligations under this Guaranty and the other Loan Documents.

                  SECTION 10. Taxes.

                  (a) All payments made by any Guarantor hereunder or under any
other Loan Document shall be made in accordance with the terms of the Credit
Agreement and shall be made without set-off, counterclaim, deduction or other
defense. All such payments shall be made free and clear of and without deduction
for any present or future Taxes. If any Guarantor shall be required by law,
rule, regulation or any interpretation by any relevant Governmental Authority to
deduct or to withhold any Taxes from or in respect of any amount payable
hereunder or under any other Loan Document,

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                           (i) the amount so payable shall be increased to the
         extent necessary so that after making all required deductions and
         withholdings (including Taxes on amounts payable to the Lenders or the
         Collateral Agent pursuant to this sentence) the Lenders or the
         Collateral Agent receive an amount equal to the sum they would have
         received had no such deduction or withholding been made,

                           (ii) such Guarantor shall make such deduction or
         withholding, and

                           (iii) such Guarantor shall pay the full amount
         deducted or withheld to the relevant taxation authority in accordance
         with applicable law. Whenever any Taxes are payable by any Guarantor,
         as promptly as possible thereafter, such Guarantor shall send the
         Lenders and the Collateral Agent an official receipt (or, if an
         official receipt is not available, such other documentation as shall be
         reasonably satisfactory to the Lenders or the Collateral Agent, as the
         case may be) showing payment. In addition, such Guarantor agrees to pay
         any present or future taxes, charges or similar levies which arise from
         any payment made hereunder or from the execution, delivery,
         performance, recordation or filing of, or otherwise with respect to,
         this Agreement or any other Loan Document other than Other Taxes.

                  (b) Each Guarantor will indemnify the Lenders and the
Collateral Agent for the amount of Taxes or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts
payable under this Section 10) paid by any Lender or the Collateral Agent and
any liability (including penalties, interest and expenses for nonpayment, late
payment or otherwise) arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted. This
indemnification shall be paid within 30 days from the date on which any such
Lender or the Collateral Agent makes written demand therefor, which demand shall
identify the nature and amount of Taxes or Other Taxes for which indemnification
is being sought and the basis of the claim.

                  (c) If any Guarantor fails to perform any of its obligations
under this Section 10, such Guarantor shall indemnify the Lenders and the
Collateral Agent for any taxes, interest or penalties that may become payable as
a result of any such failure. The obligations of the Borrower under this Section
10 shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

                  SECTION 11. WAIVER OF JURY TRIAL. EACH GUARANTOR AND, BY ITS
ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT HEREOF, THE COLLATERAL AGENT AND
EACH LENDER WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING
OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS GUARANTY, THE OTHER LOAN
DOCUMENTS OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER
AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION
THEREWITH, OR ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS
GUARANTY, AND AGREES THAT ANY SUCH ACTION, SUIT, PROCEEDING OR COUNTERCLAIM
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

                  SECTION 12. Contribution with Respect to Guaranteed
Obligations.

                  (a) To the extent that any Guarantor shall make a payment
under this Guaranty of all or any of the Obligations (a "Guarantor Payment")
which, taking into account all other Guarantor Payments then previously or
concurrently made by the other Guarantors, exceeds the amount which such
Guarantor would otherwise have paid if each Guarantor had paid the aggregate
Obligations satisfied by such Guarantor Payment in the same proportion that such
Guarantor's Allocable Amount (as defined below) (in effect immediately prior to
such Guarantor Payment) bore to the aggregate Allocable Amounts of all
Guarantors in effect immediately prior to the making of such Guarantor Payment,
then, following irrevocable payment in full of the Obligations, the cancellation
or cash collateralization of all Letters of Credit and termination of the
Commitments, such Guarantor shall be entitled to receive contribution and
indemnification payments from, and be reimbursed by, each of the other
Guarantors for the amount of such excess, pro rata based upon their respective
Allocable Amounts in effect immediately prior to such Guarantor Payment.

                                      -6-
<PAGE>

                  (b) As of the date of determination, the "Allocable Amount" of
any Guarantor shall be equal to the maximum amount of the claim which could then
be recovered from such Guarantor under this Guaranty without rendering such
claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy
Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or law.

                  (c) This Section 12 is intended only to define the relative
rights of Guarantors and nothing set forth in this Section 12 is intended to or
shall impair the obligations of Guarantors, jointly or severally, to pay any
amounts as and when the same shall become due and payable in accordance with the
terms of this Guaranty.

                  (d) The rights of the parties under this Section 12 shall be
exercisable upon the full and irrevocable payment of the Obligations, the
cancellation or cash collateralization of all Letters of Credit and the
termination of the Credit Agreement and the other Loan Documents.

                  (e) The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of any
Guarantor to which such contribution and indemnification is owing.

                  SECTION 13. Usury Savings Clause. It is the intention of the
parties hereto that the Agents and each Lender shall conform strictly to usury
laws applicable to it. Accordingly, if the transactions contemplated hereby or
by any other Loan Document would be usurious as to any Agent or any Lender under
laws applicable to it (including the laws of the United States of America and
the State of New York or any other jurisdiction whose laws may be mandatorily
applicable to such Agent or such Lender notwithstanding the other provisions of
this Guaranty), then, in that event, notwithstanding anything to the contrary in
this Guaranty or any other Loan Document or any agreement entered into in
connection with or as security for the Obligations, it is agreed as follows: (i)
the aggregate of all consideration which constitutes interest under law
applicable to any Agent or any Lender that is contracted for, taken, reserved,
charged or received by such Agent or such Lender under this Guaranty or any
other Loan Document or agreements or otherwise in connection with the
Obligations shall under no circumstances exceed the maximum amount allowed by
such applicable law, any excess shall be canceled automatically and if
theretofore paid shall be credited by such Agent or such Lender on the principal
amount of the Obligations (or, to the extent that the principal amount of the
Obligations shall have been or would thereby be paid in full, refunded by such
Agent or such Lender, as applicable, to the Guarantors); and (ii) in the event
that the maturity of the Obligations is accelerated by reason of any Event of
Default under this Guaranty or otherwise, or in the event of any required or
permitted prepayment, then such consideration that constitutes interest under
law applicable to any Agent or any Lender may never include more than the
maximum amount allowed by such applicable law, and excess interest, if any,
provided for in this Guaranty or otherwise shall be canceled automatically by
such Agent or such Lender, as applicable, as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited by such Agent or such
Lender, as applicable, on the principal amount of the Obligations (or, to the
extent that the principal amount of the Obligations shall have been or would
thereby be paid in full, refunded by such Agent or such Lender to the
Guarantors). All sums paid or agreed to be paid to any Agent or any Lender for
the use, forbearance or detention of sums due hereunder shall, to the extent
permitted by law applicable to such Agent or such Lender, be amortized,
prorated, allocated and spread throughout the full term of the Loans until
payment in full so that the rate or amount of interest on account of any Loans
hereunder does not exceed the maximum amount allowed by such applicable law. If
at any time and from time to time (i) the amount of interest payable to any
Agent or any Lender on any date shall be computed at the Highest Lawful Rate
applicable to such Agent or such Lender pursuant to this Section 13 and (ii) in
respect of any subsequent interest computation period the amount of interest
otherwise payable to such Agent or such Lender would be less than the amount of
interest payable to such Agent or such Lender computed at the Highest Lawful
Rate applicable to such Agent or such Lender, then the amount of interest
payable to such Agent or such Lender in respect of such subsequent interest
computation period shall continue to be computed at the Highest Lawful Rate
applicable to such Agent or such Lender until the total amount of interest
payable to such Agent or such Lender shall equal the total amount of interest
which would have been payable to such Agent or such Lender if the total amount
of interest had been computed without giving effect to this Section 13.

                  For purposes of this Section 13, the term "applicable law"
shall mean that law in effect from time to time and applicable to this Guaranty
or any other Loan Document that lawfully permits the charging and collection of
the highest permissible, lawful non-usurious rate of interest on this Guaranty
or any other Loan

                                      -7-
<PAGE>
Document, including laws of the State of New York and, to the extent
controlling, laws of the United States of America.

                  The right to accelerate the maturity of the Obligations does
not include the right to accelerate any interest that has not accrued as of the
date of acceleration.

                  SECTION 14. Effect of Restatement.

                  This Guaranty amends, restates and supersedes the Original
Guaranty and does not extinguish any Obligations for the payment of money under
the Original Guaranty, which Obligations shall remain in full force and effect
except as modified by this Guaranty.

                  SECTION 15. Miscellaneous.

                  (a) Each Guarantor will make each payment hereunder in lawful
money of the United States of America and in immediately available funds to the
Collateral Agent, for the benefit of the Lenders, at such address specified by
the Collateral Agent from time to time by notice to such Guarantor.

                  (b) No amendment of any provision of this Guaranty shall be
effective unless it is in writing and signed by each Guarantor and the
Collateral Agent, and no waiver of any provision of this Guaranty, and no
consent to any departure by any Guarantor therefrom, shall be effective unless
it is in writing and signed by the Collateral Agent, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

                  (c) No failure on the part of the Collateral Agent or any
Lender to exercise, and no delay in exercising, any right hereunder or under any
other Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any right preclude any other or further exercise thereof or
the exercise of any other right. The rights and remedies of the Collateral Agent
and the Lenders provided herein and in the other Loan Documents are cumulative
and are in addition to, and not exclusive of, any rights or remedies provided by
law. The rights of the Collateral Agent and the Lenders under any Loan Document
against any party thereto are not conditional or contingent on any attempt by
the Collateral Agent and the Lenders to exercise any of their rights under any
other Loan Document against such party or against any other Person.

                  (d) All of the obligations of the Guarantors hereunder are
joint and several. The Collateral Agent may, in its sole and absolute
discretion, enforce the provisions hereof against any of the Guarantors and
shall not be required to proceed against all Guarantors jointly or seek payment
from the Guarantors ratably. The release or discharge of any Guarantor by the
Collateral Agent shall not release or discharge any other Guarantor from the
obligations of such Person hereunder.

                  (e) Any provision of this Guaranty which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining portions hereof or thereof or affecting the validity or enforceability
of such provision in any other jurisdiction.

                  (f) This Guaranty shall (i) be binding on the each Guarantor
and its successors and assigns, and (ii) inure, together with all rights and
remedies of the Collateral Agent and the Lenders hereunder, to the benefit of
the Collateral Agent and the Lenders and their respective successors,
transferees and assigns. Without limiting the generality of clause (ii) of the
immediately preceding sentence, to the extent permitted by Section 11.07 of the
Credit Agreement, any Lender may assign or otherwise transfer its rights and
obligations under the Credit Agreement or any other Loan Document to any other
Person, and such other Person shall thereupon become vested with all of the
benefits in respect thereof granted to the Lenders herein or otherwise. Each
Guarantor agrees that each participant shall be entitled to the benefits of
Section 10 with respect to its participation in any portion of the Loans as if
it was a Lender. None of the rights or obligations of any Guarantor hereunder
may be assigned or otherwise transferred without the prior written consent of
the Collateral Agent.

                                      -8-
<PAGE>

                  (g) This Guaranty and the other Loan Documents represent the
entire agreement of the Guarantors, the Collateral Agent and the Lenders with
respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Collateral Agent or any Lender relative to
the subject matter thereof not expressly set forth or referred to herein or in
the other Loan Documents.

                  (h) Section headings herein are included for convenience of
reference only and shall not constitute a part of this Agreement for any other
purpose.

                  (i) This Guaranty shall be governed by and construed in
accordance with the law of the State of New York applicable to contracts made
and to be performed therein without regard to conflict of law principles.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -9-
<PAGE>

                  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to
be executed by an officer thereunto duly authorized, as of the date first above
written.

                               GUARANTORS

                               CASSCO ICE & COLD STORAGE, INC.

                               By:        /s/ Steven J. Janusek
                                     -----------------------------------------
                                     Name:  Steven J. Janusek
                                     Title:    Chief Financial Officer

                               PACKAGED ICE IP, INC.

                               By:        /s/ Steven J. Janusek
                                     -----------------------------------------
                                     Name:  Steven J. Janusek
                                     Title:    Chief Financial Officer

                               REDDY ICE CORPORATION

                               By:        /s/ Steven J. Janusek
                                     -----------------------------------------
                                     Name:  Steven J. Janusek
                                     Title:    Chief Financial Officer

                               SOUTHERN BOTTLED WATER COMPANY, INC.

                               By:        /s/ Steven J. Janusek
                                     -----------------------------------------
                                     Name:  Steven J. Janusek
                                     Title:    Chief Financial Officer<PAGE>

                                                                   EXHIBIT 10.21

                       FIRST AMENDMENT TO SECOND AMENDED
                         AND RESTATED CREDIT AGREEMENT

         FIRST AMENDMENT, dated as of January 30, 2002 (this "Amendment"), to
the Second Amended and Restated Credit Agreement, dated as of December 27, 2001
(the "Credit Agreement"), by and among Packaged Ice, Inc., a Texas corporation
(the "Borrower"), the lenders listed on Schedule I hereto under the captions
"Continuing Lenders" (the "Continuing Lenders") and "Additional Lender" (the
"Additional Lender" and together with the Continuing Lenders, each a "Lender"
and collectively the "Lenders"), and Ableco Finance LLC, a Delaware limited
liability company ("Ableco"), as collateral agent for the Lenders (in such
capacity, the "Collateral Agent") and as the administrative agent for the
Lenders (in such capacity, the "Administrative Agent" and together with the
Collateral Agent, each an "Agent" and collectively, the "Agents").

                                    RECITALS

         The Borrower, the Continuing Lenders and the Agents have agreed to
amend the Credit Agreement to: (i) evidence the resignation of Ableco as
Administrative Agent and the appointment of The CIT Group/Business Credit, Inc.,
a New York corporation ("CIT"), as the new Administrative Agent, (ii) add the
Additional Lender as a party to the Credit Agreement and evidence the assignment
by Ableco of the Total Revolving Credit Commitment to the Additional Lender, and
(iii) make certain other changes to the Credit Agreement.

         In consideration of good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto hereby agree as follows:

         1. Definitions.

         All capitalized terms used herein and not otherwise defined herein are
used herein as defined in the Credit Agreement.

         2. Preamble. The preamble to the Credit Agreement is hereby amended in
its entirety to read as follows:

         "Second Amended and Restated Credit Agreement, dated as of December 27,
         2001, by and among Packaged Ice, Inc., a Texas corporation (the
         "Borrower"), the lenders from time to time party hereto (each a
         "Lender" and collectively, the "Lenders"), Ableco Finance LLC, a
         Delaware limited liability company ("Ableco"), as collateral agent for
         the Lenders (in such capacity, the "Collateral Agent") and The CIT
         Group/Business Credit, Inc., a New York corporation ("CIT"), as
         successor in interest to Ableco as administrative agent for the Lenders
         (in such capacity, the "Administrative Agent" and together with the
         Collateral Agent, each an "Agent" and collectively, the "Agents")."

         3. Existing Definitions.

             (a) The definition of the term "Administrative Agent's Account" in
Section 1.01 of the Credit Agreement is hereby amended in its entirety to read
as follows:

         ""Administrative Agent's Account" means (i) initially Chase Manhattan
         Bank (New York, New York), Account Name: The CIT Group/Business Credit,
         Inc., ABA #: 021000021, Account #: 144016503, Ref: Packaged Ice, Inc.,
         and (ii) upon the election of the Administrative Agent another account
         at a bank designated by the Administrative Agent from time to time as
         the account into which the Borrower shall make all payments to

<PAGE>

         the Administrative Agent for the benefit of the Agents and the Lenders
         under this Agreement and the other Loan Documents."

             (b) The definition of the term "Fixed Charge Coverage Ratio" in
Section 1.01 of the Credit Agreement is hereby amended by deleting clause
(ii)(A) thereof and substituting in lieu thereof the following:

         "(A) all principal of Indebtedness of such Person and its Subsidiaries
         scheduled to be paid or prepaid during such period to the extent there
         is an equivalent permanent reduction in the commitments thereunder,
         plus"

             (c) The definition of the term "Guaranty" in Section 1.01 of the
Credit Agreement is hereby amended in its entirety to read as follows:

         ""Guaranty" means each Amended and Restated Guaranty or a Guaranty
         substantially in the form of Exhibit A, made by any Guarantor in favor
         of the Agents and the Lenders pursuant to Section 7.01(b) or
         otherwise."

             (d) The definition of the term "Mortgage" in Section 1.01 of the
Credit Agreement is hereby amended by deleting the reference to "Section
7.01(o)" contained therein and substituting in lieu thereof "Section 7.01(n)".

             (e) The definition of the term "Obligations" in Section 1.01 of the
Credit Agreement is hereby amended by inserting the words "under the Loan
Documents" after the words "all present and future indebtedness, obligations,
and liabilities of each Loan Party to the Agents and the Lenders" in the first
and second lines of such definition.

             (f) The definition of the term "Payment Office" in Section 1.01 of
the Credit Agreement is hereby amended by deleting the words "450 Park Avenue,
29th Floor, New York, New York 10022" and substituting in lieu thereof "5420 LBJ
Freeway, Suite 200, Dallas, Texas 75240".

         4. Making the Loans.

             (a) The proviso in the first sentence of Section 2.02(c)(ii) of the
Credit Agreement is hereby amended in its entirety to read as follows:

         "provided, however, that (a) the Administrative Agent shall in no event
         fund any such Revolving Loans if the Administrative Agent shall have
         received written notice from the Collateral Agent or the Required
         Lenders on the Business Day prior to the date of the proposed Revolving
         Loan that one or more of the conditions precedent contained in Section
         5.02 will not be satisfied at the time of the proposed Revolving Loan,
         and (b) the Administrative Agent may, but shall not otherwise be
         required to determine that, or take notice whether, the conditions
         precedent in Section 5.02 have been satisfied."

             (b) The third sentence of Section 2.02(c)(ii) of the Credit
Agreement is hereby amended by inserting the parenthetical "(subject to the
satisfaction of the conditions precedent contained in Section 5.02)" after the
words "each Revolving Lender shall" in such sentence.

         5. Fees. Clause (ii) of Section 2.06(d) of the Credit Agreement is
hereby amended by deleting the words "the date on which all Obligations are paid
in full" and substituting in lieu thereof "the date on which all Obligations are
paid in full and the Commitments are terminated".

                                      -2-
<PAGE>

         6. Apportionment of Payments.

             (a) Section 4.04(b) of the Credit Agreement is hereby amended by
(i) deleting the words "subject to the provisions of this Agreement" immediately
prior to clause (i) of that Section and substituting in lieu thereof
"notwithstanding any other provisions of this Agreement" and (ii) adding the
words ", expense reimbursements" after the words "in respect of any fees" in
clauses (ii) and (v) of that Section.

             (b) Section 4.04(d) of the Credit Agreement is hereby deleted it in
its entirety and new Section 4.04(d) is inserted to read as follows:

         "(d) For the purposes of Section 4.04(b), "paid in full" with respect
         to fees, expense reimbursements and interest, shall include any fees
         and expenses incurred during any Insolvency Proceeding of a Loan Party,
         and interest which accrued or would have accrued after the commencement
         of any Insolvency Proceeding, irrespective of whether a claim for such
         fees, expense reimbursements and interest is allowable in such
         Insolvency Proceeding."

             (c) Section 4.04 of the Credit Agreement is hereby amended by
inserting a new clause (f) after Section 4.04(e) to read in its entirety as
follows:

         "(f) For the avoidance of doubt, subject to Section 8.01, all proceeds
         of Accounts Receivable and Eligible Equipment shall be deposited into
         the Lockboxes or Collection Accounts, and sent to the Payment Office to
         be credited to the Administrative Agent's Account for application to
         the Revolving Loans pursuant to Sections 2.05(c)(iii) and 8.01."

         7. Reporting Requirements. Section 7.01(a)(vi) of the Credit Agreement
is hereby amended by adding the following proviso to the end of such Section:

         "provided that, notwithstanding anything to the contrary herein, the
         Borrower shall provide each Agent and each Lender a Borrowing Base
         Certificate any time the Borrower makes a Disposition of Accounts
         Receivable and/or Equipment that are included in the calculation of the
         Borrowing Base and that results in Net Cash Proceeds of $100,000 or
         more".

         8. Inspection Rights. Section 7.01(f) of the Credit Agreement is hereby
amended by adding the following sentence to the end of such Section:

         "Notwithstanding anything to the contrary contained herein, in the
         absence of an Event of Default, any Agent shall have the right to
         conduct, during normal business hours, appraisals or valuations of the
         Ice Factories or other Eligible Equipment and to conduct Phase I
         Environmental Site Assessments for each parcel of Real Property, in
         each case in addition to those permitted in the immediately preceding
         sentence, provided that the expense of such additional appraisals,
         valuations or site assessments shall not be reimbursable by the
         Borrower or any Guarantor and shall be paid by the Agent conducting
         such additional appraisals, valuations or site assessments."

                                      -3-
<PAGE>

         9. Change in Collateral: Collateral Records. Section 7.01(l) of the
Credit Agreement is hereby amended by deleting all references in such Section to
"the Collateral Agent" and in each instance substituting in lieu thereof "the
Agents" and deleting all references to "the Collateral Agent's" and in each
instance substituting in lieu thereof "the Agents'".

         10. Negative Covenants: Certain Agreements. Section 7.02(r) of the
Credit Agreement is hereby amended in its entirety to read as follows:

         "(r) Certain Agreements. Agree, or permit any Subsidiary to agree, to
         any material amendment or other material change to or material waiver
         of any of its rights under any Material Contract."

         11. Collection of Accounts Receivable.

             (a) Section 8.01(a) of the Credit Agreement is hereby amended by
(i) deleting the words "45 days from the Effective Date" from the first sentence
of that Section and substituting in lieu thereof "March 15, 2002", (ii) deleting
the seventh sentence of that Section, which begins "All funds received in the
Collection Accounts shall be processed . . ." and (iii) deleting the ninth
sentence of that Section, which begins "During the continuance of an Event of
Default, the Administrative Agent shall charge. . . ".

             (b) Section 8.01(b) of the Credit Agreement is hereby amended by
(i) deleting the words "on or prior to the Effective Date" from the first
sentence of that Section and substituting in lieu thereof "on or prior to the
Lockbox Effective Date", (ii) deleting the words "On or prior to the Effective
Date" from the beginning of the second sentence of that Section and substituting
in lieu thereof "On or prior to the Lockbox Effective Date", and (iii) deleting
the words "within 30 days of the Effective Date" from the third sentence of that
Section (which sentence begins with the words, "The Borrower and the other Loan
Parties . . .") and substituting in lieu thereof "on or prior to the Lockbox
Effective Date".

             (c) Section 8.01(d) of the Credit Agreement is hereby amended in
its entirety to read as follows:

         "(d) Application of Funds in Cash Concentration Account. Prior to the
         Lockbox Effective Date, all funds received in the Cash Concentration
         Account shall be processed by the Cash Concentration Account Bank in
         accordance with the instructions of the officers and agents of the
         Borrower and the other Loan Parties in accordance with prior practice.
         On and after the Lockbox Effective Date, all funds received in the Cash
         Concentration Account shall be sent by wire transfer or Automated
         Clearing House, Inc. payment to the Administrative Agent's Account for
         application at the end of each Business Day to reduce the then
         principal balance of the Obligations, conditional upon final payment to
         the Administrative Agent. The Administrative Agent shall charge the
         Loan Account on the last day of each month with two (2) collection days
         for all such collections. No checks, drafts or other instruments
         received by the Administrative Agent shall constitute final payment to
         the Administrative Agent unless and until such checks, drafts or
         instruments have actually been collected."

             (d) Section 8.01(e) of the Credit Agreement is hereby amended by
deleting all references in that Section to "the Collateral Agent" and in each
instance substituting in lieu thereof "the Agents".

                                      -4-
<PAGE>

         12. Status of Accounts Receivable and Other Collateral. Clause (e) of
Section 8.03 of the Credit Agreement is hereby amended by deleting the words
"the Collateral Agent" and substituting in lieu thereof "the Agents".

         13. Rights, Exculpation, Etc. Clause (i) in the second sentence of
Section 10.03 of the Credit Agreement is hereby amended by deleting each
reference in such clause to "the Collateral Agent" and in each instance
substituting in lieu thereof "the Agents".

         14. Collateral Matters. Section 10.08(a) of the Credit Agreement is
hereby amended by inserting a proviso at the end of the fifth sentence (which
sentence begins with the words, "Without limitation to its obligations pursuant
to Section 10.05, each Lender agrees . . .") of Section 10.08(a) to read as
follows:

         ", provided that (i) nothing contained in this Section 10.08 shall
         require any Revolving Loan Lender to fund its Pro Rata Share of
         Collateral Agent Advances if such funding would cause the aggregate
         amount of Revolving Credit Loans and Letter of Credit Obligations of
         such Revolving Loan Lender and such Revolving Loan Lender's Pro Rata
         Share of all Collateral Agent Advances to exceed the Revolving Credit
         Commitment of such Revolving Loan Lender and (ii) notwithstanding
         anything to the contrary, the reimbursement and indemnification
         obligations of each Revolving Loan Lender under Section 10.05, other
         than with respect to reimbursement and indemnification obligations with
         respect to Collateral Agent Advances under this Section 10.08, which
         are subject to the limitations contained in clause (i) above, shall not
         be subject to the limitations contained in clause (i) above."

         15. Amendments, Etc. Section 11.02(b) of the Credit Agreement is hereby
amended by deleting the words "approval of the Lenders" and substituting in lieu
thereof the words "approval of the Agents and/or the Lenders".

         16. Resignation of Ableco as Administrative Agent.

             (a) Confirmation of Resignation. Ableco hereby gives notice of and
confirms its resignation as Administrative Agent pursuant to Section 10.07 of
the Credit Agreement, effective as of the Amendment Effective Date (as such term
is hereinafter defined).

             (b) Appointment of Successor. The Lenders hereby appoint CIT,
effective as of the Amendment Effective Date, to be the successor Administrative
Agent pursuant to Section 10.07 of the Credit Agreement.

             (c) Acceptance by Successor. CIT hereby accepts its appointment as
Administrative Agent effective as of the Amendment Effective Date.

         17. Administrative Agent's Assignment and Acceptance.

             (a) Assignment. Ableco hereby assigns, without recourse and, except
as specifically provided herein, without representation or warranty, as of the
Amendment Effective Date to CIT, all of Ableco's right, title and interest, in
its capacity as Administrative Agent, in, to and under (a) the Credit Agreement
and (b) the other Loan Documents (collectively, the "Assigned Items").

             (b) Acceptance. CIT hereby accepts, as of the Amendment Effective
Date, all of Ableco's right, title and interest, in its capacity as
Administrative Agent, in, to and under the Assigned Items.

                                      -5-
<PAGE>

             (c) Effect on Loan Documents. Effective as of the Amendment
Effective Date, all references in the Credit Agreement and the Loan Documents to
the Administrative Agent shall be deemed, where appropriate, to be references to
CIT, in its capacity as Administrative Agent.

             (d) Further Assurances. Ableco shall promptly execute and deliver,
from time to time, upon the written request of the Administrative Agent, and at
the expense of the Borrower, any and all such further instruments and documents
and take such further action as the Administrative Agent may reasonably deem
necessary in obtaining the full benefits of this Amendment, the Credit Agreement
and the other Loan Documents, and of the rights and powers herein and therein
granted. In the event that, on or after the Amendment Effective Date, Ableco
receives any moneys which are delivered to it, in its capacity as predecessor
Administrative Agent under the Credit Agreement, the Borrower, and CIT, as
Administrative Agent, and the Lenders hereby agree that the only obligation of
Ableco shall be to forward, at the expense of the Borrower, such moneys to CIT,
in its capacity as the Administrative Agent, in accordance with the written
instructions given by CIT to Ableco on the date hereof, and that Ableco shall
incur no liability in connection therewith.

         18. Additional Lender; Total Revolving Credit Commitment. (a) On and as
of the Amendment Effective Date, Ableco shall sell and assign and the Additional
Lender shall purchase and assume, at the principal amount thereof, such
interests in the Revolving Loans outstanding on such date and Ableco shall
assign and the Additional Lender shall assume the Revolving Credit Commitment of
Ableco, in each case as shall be necessary in order that, after giving effect to
all such assignments and purchases, the Commitments will be as set forth in
Annex I to this Amendment, and the Commitments will be held by the Lenders
ratably in accordance with their Pro Rata Shares in the Commitments as set forth
in Annex I to this Amendment. Such sales, assignments and purchases shall be
without recourse, representation or warranty, except that (i) Ableco represents
that it is the legal and beneficial owner of the interests assigned by it free
and clear of any adverse claim and (ii) paragraph 2 of Exhibit H to the Credit
Agreement is hereby incorporated by reference as if set forth herein and Ableco
shall be deemed to have made the representations, warranties and statements of
Assignor in such paragraph and the Additional Lender shall be deemed to have
made the representations, warranties and statements of Assignee in such
paragraph. Notwithstanding the terms of Section 11.07 of the Credit Agreement,
no processing fee shall be charged by the Agents in connection with the sales,
assignments and purchases described in this subparagraph (a).

             (a) On the Amendment Effective Date, (i) the Additional Lender
shall pay the purchase price for the Revolving Loans purchased by it pursuant to
subparagraph (a) of this paragraph 18 by wire transfer of immediately available
funds to the Collateral Agent, not later than 11:00 a.m. (New York City time) on
such date, and (ii) the Collateral Agent shall promptly pay to Ableco the
purchase price for the Revolving Loans sold by it pursuant to subparagraph (a)
of this paragraph 18, out of the amounts received by it pursuant to clause (i)
of this subparagraph (b), by wire transfer of immediately available funds to an
account designated by Ableco. If either Ableco or the Additional Lender
erroneously receives funds that are in fact owed to another Lender, it hereby
agrees to transfer such funds to the correct recipient of such funds.

             (b) The Borrower hereby consents to the addition of the Additional
Lender and to the sales, assignments and purchases provided for in subparagraphs
(a) and (b) of this paragraph 18 and agrees that the Additional Lender shall
have all of the rights of a Lender under the Credit Agreement with respect to
the interests purchased by it pursuant to such subparagraphs. Commencing on the
Amendment Effective Date, the Additional Lender hereby agrees that it will be a
party to the Credit Agreement, will be bound by the terms and conditions of the
Credit Agreement and the Loan Documents and will have all of the rights and
obligations of a Lender under the Credit Agreement and the Loan Documents.

         19. Schedule 1.01(A). Schedule 1.01(A) to the Credit Agreement is
hereby amended in its entirety to read as set forth in Annex I to this
Amendment.

                                      -6-
<PAGE>

         20. Conditions to Effectiveness. This Amendment shall become effective
(the "Amendment Effective Date") upon satisfaction in full of the following
conditions precedent:

             (a) The representations and warranties contained in this Amendment,
Article VI of the Credit Agreement and the other Loan Documents shall be correct
on and as of the date of this Amendment as though made on and as of such date
(except where such representations and warranties relate to an earlier date in
which case such representations and warranties shall be true and correct as of
such earlier date); no Default or Event of Default shall have occurred and be
continuing on the date of this Amendment, or result from this Amendment becoming
effective in accordance with its terms.

             (b) The Collateral Agent shall have received (i) counterparts of
this Amendment that bear the signatures of each of the Borrower and the Lenders,
including the Additional Lender and (ii) counterparts of an Acknowledgement and
Consent, in the form of Annex II to this Amendment, that bear the signature of
each Guarantor.

             (c) All legal matters incident to this Amendment shall be
satisfactory to the Agents and their counsel.

         21. Borrower Representations and Warranties. The Borrower represents
and warrants to the Lenders as follows:

             (a) The Borrower (i) is duly organized, validly existing and in
good standing under the laws of the state of its organization and (ii) has all
requisite power, authority and legal right to execute, deliver and perform this
Amendment and to perform the Credit Agreement, as amended hereby.

             (b) The execution, delivery and performance by the Borrower of this
Amendment and the performance by the Borrower of the Credit Agreement, as
amended hereby (i) have been duly authorized by all necessary action, (ii) do
not and will not violate or create a default under such Borrower's
organizational documents, any applicable law or any contractual restriction
binding on or otherwise affecting the Borrower or any of the Borrower's
properties, and (iii) except as provided in the Loan Documents, do not and will
not result in or require the creation of any Lien, upon or with respect to the
Borrower's property.

             (c) No authorization or approval or other action by, and no notice
to or filing with, any Governmental Authority is required in connection with the
due execution, delivery and performance by the Borrower of this Amendment or the
performance by the Borrower of the Credit Agreement, as amended hereby.

             (d) This Amendment and the Credit Agreement, as amended hereby,
constitute the legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with their terms except to the extent the
enforceability thereof may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect affecting
generally the enforcement of creditors' rights and remedies and by general
principles of equity.

             (e) The representations and warranties contained in Article VI of
the Credit Agreement are correct on and as of the date hereof as though made on
and as of the date hereof (except to the extent such representations and
warranties expressly relate to an earlier date), and no Default or Event of
Default has occurred and is continuing on and as of the date hereof.

         22. Continued Effectiveness of Credit Agreement. The Borrower hereby
(a) confirms and agrees that each Loan Document to which it is a party is, and
shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects except that on and after the Amendment Effective Date
all references in any such Loan Document to "the Credit Agreement", the
"Agreement", "hereto", "hereof", "hereunder", "thereto", "thereof", "thereunder"
or words of like import referring to the Credit Agreement shall mean the Credit
Agreement as amended by this Amendment, and (b) confirms and agrees that to the
extent that any such Loan Document purports to assign or pledge to the
Collateral Agent for the ratable benefit of the Lenders, or to grant to the
Collateral

                                      -7-
<PAGE>

Agent for the ratable benefit of the Lenders a security interest in or Lien on,
any collateral as security for the Obligations of the Borrower, or any of its
Subsidiaries or any Guarantor from time to time existing in respect of the
Credit Agreement and the Loan Documents, such pledge, assignment and/or grant of
the security interest or Lien is hereby ratified and confirmed in all respects.

         23. Miscellaneous.

             (a) This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of this Amendment by
telefacsimile shall be equally as effective as delivery of an original executed
counterpart of this Amendment.

             (b) Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

             (c) This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

             (d) Borrower will pay on demand all reasonable fees, costs and
expenses of the Agents and the Lenders in connection with the preparation,
execution and delivery of this Amendment or otherwise payable under the Credit
Agreement, including, without limitation, reasonable fees disbursements and
other charges of counsel to the Agents.

                                      -8-
<PAGE>

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

                          BORROWER:

                          PACKAGED ICE, INC.

                          By: /s/ Steven J. Janusek
                             ----------------------------------------------
                              Name:   Steven J. Janusek
                              Title:  Chief Financial Officer

                          COLLATERAL AGENT AND LENDER:
                          ABLECO FINANCE LLC

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

                          ADMINISTRATIVE AGENT AND LENDER:

                          THE CIT GROUP/BUSINESS CREDIT, INC.

                          By: /s/ Mark Porter
                             ----------------------------------------------
                              Name:   Mark Porter
                              Title:  Vice President

                          LENDER:

                          MADELEINE L.L.C.

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

                                      -9-
<PAGE>

                                   SCHEDULE I

CONTINUING LENDERS:

Ableco Finance LLC
Madeleine L.L.C.

ADDITIONAL LENDER:

The CIT Group/Business Credit, Inc.

<PAGE>

                                     ANNEX I

                                SCHEDULE 1.01(A)

                              LENDERS' COMMITMENTS

<Table>
<Caption>

                                                                         Revolving Credit
                           Lender                                           Commitment                   Percentage
-------------------------------------------------------------    ----------------------------------    ---------------
<S>                                                               <C>                                  <C>
Ableco Finance LLC                                                       $             -0-                    0%

Madeleine L.L.C.                                                         $             -0-                    0%

The CIT Group/Business Credit, Inc.                                      $      38,000,000                  100%

         Total Revolving Credit Commitment                               $      38,000,000                  100%
</Table>

<Table>
<Caption>

                                                                             Term Loan
                           Lender                                           Commitment                   Percentage
-------------------------------------------------------------    ----------------------------------    ---------------
<S>                                                               <C>                                  <C>
Ableco Finance LLC                                                       $      20,000,000                   40%

Madeleine L.L.C.                                                         $      30,000,000                   60%

The CIT Group/Business Credit, Inc.                                      $             -0-                    0%

         Total Term Loan Commitment                                      $      50,000,000                  100%

</Table>

<Table>
<Caption>

                                                                               Total
                           Lender                                           Commitment                   Percentage
-------------------------------------------------------------    ----------------------------------    ---------------

<S>                                                               <C>                                  <C>
Ableco Finance LLC:                                                      $      20,000,000                22.7273%

Madeleine L.L.C.                                                         $      30,000,000                34.0909%

The CIT Group/Business Credit Inc.:                                      $      38,000,000                43.1818%

         Total Commitment                                                $      88,000,000                    100%

</Table>

<PAGE>

                                    ANNEX II

                       FORM OF ACKNOWLEDGEMENT AND CONSENT

         Reference is hereby made to the Second Amended and Restated Credit
Agreement, dated as of December 27, 2001 (the "Credit Agreement"), by and among
Packaged Ice, Inc., a Texas corporation (the "Borrower"), the financial
institutions from time to time party thereto (the "Lenders"), Ableco Finance
LLC, as collateral agent for the Lenders (in such capacity, the "Collateral
Agent"), and The CIT Group/Business Credit, Inc., as successor in interest to
Ableco as administrative agent for the Lenders (in such capacity, the
"Administrative Agent") and the First Amendment thereto, dated as of January 30,
2002 (the "First Amendment"). All terms used herein which are defined in the
Credit Agreement, as amended by the First Amendment, have the same meanings
herein as set forth in the Credit Agreement as so amended.

         Each of the undersigned (each, a "Guarantor") is a party to a Guaranty
in which such Guarantor unconditionally guarantees the prompt payment, as and
when due, whether at maturity, by acceleration or otherwise, of all liabilities
(primary, secondary, direct, contingent, sole, joint and/or several) of the
Borrower to the Agents and the Lenders, at any time arising under the Credit
Agreement or any other Loan Document.

         Each of the undersigned hereby (a) confirms and agrees that each Loan
Document to which it is a party is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects except that on and
after the Amendment Effective Date (as defined in the First Amendment) all
references in any such Loan Document to "the Credit Agreement", the "Agreement",
"thereto", "thereof", "thereunder" or words of like import referring to the
Credit Agreement shall mean the Credit Agreement, as amended by the First
Amendment, and (b) confirms and agrees that to the extent that any such Loan
Document purports to assign or pledge to the Collateral Agent for the ratable
benefit of the Lenders, or to grant to the Collateral Agent for the ratable
benefit of the Lenders a security interest in or Lien on, any collateral as
security for the Obligations of the Borrower or any Guarantor from time to time
existing in respect of the Credit Agreement and the Loan Documents, such pledge,
assignment and/or grant of the security interest or Lien is hereby ratified and
confirmed in all respects.

<PAGE>

         IN WITNESS WHEREOF, each Guarantor has caused this Acknowledgement and
Consent to be executed by an officer thereunto duly authorized, as of the date
first above written.

                            GUARANTORS

                            CASSCO ICE & COLD STORAGE, INC.

                            By:
                                  --------------------------------------------
                                  Name:
                                  Title:

                            PACKAGED ICE IP, INC.

                            By:
                                  --------------------------------------------
                                  Name:
                                  Title:

                            REDDY ICE CORPORATION

                            By:
                                  --------------------------------------------
                                  Name:
                                  Title:

                            SOUTHERN BOTTLED WATER COMPANY, INC.

                            By:
                                  --------------------------------------------
                                  Name:
                                  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]