Document:

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                                                                   EXHIBIT 10.42

         THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY
ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS
AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT
ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR
AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S
INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY
ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER
U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60,
91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING
OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR
HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

         IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL
DELIVER TO THE TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE
REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

         THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM
DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF THIS SECURITY IN DENOMINATIONS OF LESS THAN $100,000 SHALL
BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND
SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS
SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN.

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         ALL PAYMENTS OF INTEREST ON AND REPAYMENT OF PRINCIPAL AND PREMIUM, IF
ANY, OF THIS SURPLUS NOTE, TO THE EXTENT REQUIRED UNDER APPLICABLE LAW, MAY BE
MADE ONLY WITH THE PRIOR APPROVAL OF THE APPLICABLE REGULATORY AUTHORITY (AS
DEFINED IN THE INDENTURE). THERE ARE NO SPECIFIC LIMITATIONS ON THE EXTENT OF
THE APPLICABLE REGULATORY AUTHORITY'S DISCRETION IN DETERMINING WHETHER THE
FINANCIAL CONDITION OF THE COMPANY WARRANTS THE PAYMENT OF SUCH PAYMENTS.

No. 1

                           SEABRIGHT INSURANCE COMPANY
                       FLOATING RATE SURPLUS NOTE DUE 2034

$12,000,000

         SeaBright Insurance Company, a stock insurance company domiciled in
Illinois (the "Company", which term includes any successor entity under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to JPMorgan Chase Bank as Trustee for the benefit of ICONS, Ltd. or registered
assigns, the principal sum of twelve million dollars ($12,000,000) on May 24,
2034, unless redeemed by the Company prior to the Stated Maturity in accordance
with the terms specified herein and in the Indenture. Capitalized terms used
herein and not otherwise defined shall have the meanings assigned to such terms
in the Indenture. The Company further promises to pay interest on said principal
sum from May 26, 2004, or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, quarterly in
arrears on February 24, May 24, August 24 and November 24 of each year
commencing August 24, 2004 (each, an "Interest Payment Date"), at a rate per
annum with respect to such Interest Payment Period (the "Interest Rate") equal
to LIBOR as determined on the Determination Date with respect to such Interest
Payment Period, plus 4.00% (provided, that, (i) pursuant to Applicable Insurance
Laws, in no event shall the Interest Rate exceed the Interest Rate for the first
Interest Payment Period hereunder by more than 10% per annum, (ii) pursuant to
the Applicable Insurance Laws, the Interest Rate for any Interest Payment Period
may not exceed the corporate base rate determined on the first Business Day of
each month during the term of the Surplus Note plus 2% per annum, and (iii) the
Interest Rate for any Interest Payment Period shall not exceed the highest rate
permitted by New York law, as the same may be modified by United States law of
general applicability) until the principal hereof shall have become due and
payable, and on any overdue principal and (to the extent enforceable under
applicable law) on any overdue interest (other than interest that is not paid as
a result of a Payment Restriction) at the then applicable Interest Rate,
compounded quarterly. FOR THE AVOIDANCE OF DOUBT, NO INTEREST SHALL ACCRUE OR BE
PAYABLE ON ANY PAYMENT OF INTEREST THAT IS NOT MADE WHEN DUE AS A RESULT OF A
PAYMENT RESTRICTION.

         The amount of interest payable on any Interest Payment Date shall be
computed on the basis of a 360-day year and the actual number of days elapsed in
such Interest Payment Period.

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         In the event that any Interest Payment Date is not a Business Day, then
any interest payable on such date will be paid on, and such Interest Payment
Date will be moved to, the next succeeding Business Day, and additional interest
will accrue for each day that such payment is delayed as a result thereof,
except that, if such next Business Day is in the next succeeding calendar month,
such payment shall be made on the preceding Business Day, in each case with the
same force and effect as if made on the date such payment otherwise would have
been payable; provided, however, that in the event that the Stated Maturity date
or earlier redemption date is not a Business Day, then payment of principal,
premium, if any, and interest payable on such date will be made on the next
Business Day (and without any additional accrual of interest or other payment in
respect of any such delay).

         The interest installment so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in whose name this Surplus Note (or one or more
Predecessor Surplus Notes) is registered at the close of business on the
relevant record dates, which will be the fifteenth calendar day preceding the
relevant Interest Payment Date. Any such interest installment not punctually
paid or duly provided for shall forthwith cease to be payable to the Holders on
such regular record date and may be paid to the Person in whose name this
Surplus Note (or one or more Predecessor Surplus Notes) is registered at the
close of business on a special record date to be fixed by the Trustee for the
payment of such unpaid interest, notice whereof shall be given to the Holders of
Surplus Notes not less than 10 days prior to such special record date, or may be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Surplus Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture.

         The principal of and the interest on this Surplus Note shall be payable
at the office or agency of the Trustee maintained for that purpose in
Wilmington, Delaware in any coin or currency of the United States of America
that at the time of payment is legal tender for payment of public and private
debts; provided, however, that payment of interest on an Interest Payment Date
may be made at the option of the Company by check mailed to the Holder at such
address as shall appear in the Surplus Note Register or by wire transfer to an
account appropriately designated by the Holder entitled thereto, while payments
due at Stated Maturity or earlier redemption will be made by the Company in
same-day funds against presentation and surrender of this Surplus Note.
Notwithstanding the foregoing, so long as the Holder of this Surplus Note is
ICONS or a trustee of ICONS, the payment of the principal of, premium, if any,
and interest on this Surplus Note will be made by the Company in same-day funds
at such place and to such account as may be designated by ICONS or a trustee of
ICONS.

         The indebtedness evidenced by this Surplus Note is, to the extent
provided in the Indenture, subordinate and junior in right of payment to the
prior payment in full of all Senior Claims and Senior Indebtedness and this
Surplus Note is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of this Surplus Note, by accepting the same, (a) agrees to
and shall be bound by such provisions, (b) authorizes and directs the Trustee on
his or her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination so provided and (c) appoints the
Trustee his or her attorney-in-fact for any and all such purposes. Each Holder
hereof, by his or her acceptance hereof, hereby waives all notice of the
acceptance of the subordination provisions contained herein and in the Indenture
by each

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holder of Senior Claims or Senior Indebtedness, whether now outstanding or
hereafter incurred, and waives reliance by each such holder upon said
provisions.

         Each Holder hereof, by his or her acceptance hereof, hereby agrees to
treat this Surplus Note as indebtedness for all United States federal income tax
purposes.

         Payments under this Surplus Note shall be subject to the following
terms and conditions:

                  (i)      If and to the extent required under Applicable
                           Insurance Laws for the Company to be permitted to
                           report in its financial statements filed with the
                           Applicable Regulatory Authority the outstanding
                           amounts under the Surplus Notes as constituting part
                           of the Company's policyholders' surplus, any payment
                           of interest on and/or principal and premium, if any,
                           of this Surplus Note, may be made only from the
                           Available Amount of the Company (i) with the prior
                           approval of the Applicable Regulatory Authority or
                           (ii) to the extent that such payment is otherwise
                           permitted under the Applicable Insurance Laws (the
                           foregoing conditions are referred to herein as the
                           "Payment Restrictions"). The obligation of the
                           Company under this Surplus Note shall not be offset
                           or be subject to recoupment with respect to any
                           liability or obligation owed to the Company and no
                           agreement or interest securing this Surplus Note,
                           whether existing on the date of authentication of the
                           Surplus Note or subsequently entered into, shall
                           apply to the obligation of the Company under this
                           Surplus Note. The Company covenants that it shall use
                           its best efforts to obtain the approval of the
                           Applicable Regulatory Authority to make payments
                           under this Surplus Note on or prior to the date on
                           which any such payment shall otherwise become due and
                           payable.

                  (ii)     To the extent that a payment of all or a portion of
                           the principal and premium, if any, of this Surplus
                           Note or interest thereon is prohibited by any Payment
                           Restriction, interest shall continue to be accrued on
                           such unpaid principal amount and premium, if any, and
                           shall be paid at the rate provided in this Surplus
                           Note.

                  (iii)    Except as provided in (a) and (b) above, no provision
                           of this Surplus Note shall impair the obligations of
                           the Company, which are absolute and unconditional, to
                           pay the principal and premium, if any, of and
                           interest on this Surplus Note at the times, place and
                           rate, and in the coin or currency, prescribed in this
                           Surplus Note. No provision of this Surplus Note or
                           the Indenture shall extinguish the Company's
                           liability for the payment of principal and interest.

                  (iv)     If the Applicable Regulatory Authority approves a
                           payment of principal and premium, if any, or interest
                           in any amount that is less than the full amount of
                           the principal and premium, if any, or interest, as
                           applicable, then scheduled to be paid in respect of
                           the Surplus Notes, payment of such partial amount
                           shall be made pro rata among Securityholders based on
                           the

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                           relative outstanding principal amount of Surplus
                           Notes held by each Securityholder.

                  (v)      Until such time as the Company shall receive the
                           approval of the Applicable Regulatory Authority for a
                           payment under this Surplus Note, the obligation of
                           the Company to make such payment shall not form a
                           part of the Company's legal liabilities and shall not
                           be a basis of any set off. Until repaid, all
                           statements published or filed with the Applicable
                           Regulatory Authority by the Company shall show all
                           outstanding principal amounts under the Surplus Notes
                           in accordance with the Applicable Insurance Laws.

                  (vi)     Notwithstanding any other provision contained herein,
                           the Company shall not be required to make any payment
                           of interest on the Surplus Note for any Interest
                           Payment Period that is in excess of the Regulatory
                           Interest Limitation, if any, applicable to such
                           Interest Payment Period. In calculating the Interest
                           Rate for any Interest Payment Period, in the event
                           that there is any Excess Interest as of such Interest
                           Payment Period, the Interest Rate shall be increased,
                           to the extent necessary, but subject to any
                           Regulatory Interest Limitation applicable to such
                           Interest Payment Period, such that the amount of
                           interest payable for such Interest Payment Period is
                           increased by the amount of Excess Interest.

         "Excess Interest" means the cumulative amount of interest on the
Surplus Note, if any, that is not paid as a result of any Regulatory Interest
Limitations, minus the amount of interest paid on the Surplus Note as a result
of adjustments to the Interest Rate to account for Excess Interest.

         "Regulatory Interest Limitation" means any cap or other limitation on
the rate or amount of interest that may be paid on the Surplus Notes pursuant to
Applicable Insurance Laws, including but not limited to 215 ILCS 5/34.1, or any
order or approval letter relating to the initial issuance by the Company of a
Surplus Note hereunder.

                  (vii)    In the event of the rehabilitation, liquidation,
                           conservation or dissolution of the Company, the
                           claims under this Surplus Note shall be paid out of
                           any assets remaining after the payment of all Senior
                           Claims and all Senior Indebtedness.

                  (viii)   In the event that the Company undergoes a Conversion,
                           consolidates or merges into another entity or
                           transfers substantially all of its assets or capital
                           stock to another entity, the entity into which the
                           Company converts, merges or consolidates or into
                           which the assets of the Company are transferred shall
                           assume the liability of the Company hereunder.

         The Company waives diligence, presentment (other than presentment upon
Stated Maturity), demand for payment, notice of nonpayment, notice of protest,
and all other demands and notices.

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<PAGE>

         This Surplus Note shall not be entitled to any benefit under the
Indenture or be valid or become obligatory for any purpose until the Certificate
of Authentication hereon shall have been signed by or on behalf of the Trustee.

         The provisions of this Surplus Note are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

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         IN WITNESS WHEREOF, the Company has caused this instrument to be
executed.

                                      SEABRIGHT INSURANCE COMPANY

                                      By:   /s/ Richard J. Gergasko
                                            ------------------------------------
                                      Name:  Richard J. Gergasko
                                      Title: Executive Vice President

Attest:

By:  /s/ Joseph De Vita
     --------------------------------
Name:  Joseph De Vita
Title: Secretary

                                       7
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

Dated: May 26, 2004

         This is one of the Surplus Notes referred to in the within-mentioned
Indenture.

WILMINGTON TRUST COMPANY,
as Trustee

By:  /s/ W. Chris Sponenberger
     -----------------------------
         Authorized Signatory

<PAGE>

         This Surplus Note is issued under and pursuant to an indenture, dated
as of May 26, 2004, duly executed and delivered between the Company and
Wilmington Trust Company, as trustee (the "Trustee") (such indenture as amended
or supplemented from time to time, the "Indenture"). The Surplus Notes of which
this Surplus Note is a part are entitled the "Floating Rate Surplus Notes due
2034" (the "Surplus Notes"). These Surplus Notes are limited in aggregate
principal amount to $12,000,000, as specified in said Indenture. Reference is
hereby made to the Indenture and all indentures supplemental thereto for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Surplus
Notes.

         This Surplus Note is redeemable prior to its Stated Maturity by the
Company (i) in whole or in part, from time to time, on or after May 24, 2009 on
an Interest Payment Date or (ii) at any time prior to May 24, 2009, in whole but
not in part, upon the occurrence and continuation of a Tax Event. Any redemption
pursuant to this paragraph will be made, upon not less than 30 days nor more
than 60 days' prior written notice, at a redemption price (the "Redemption
Price") equal to 100% of the principal amount thereof, plus any interest thereon
accrued to the date of redemption (including any Unpaid Interest); provided (A)
that any Payment Restrictions applicable to any such redemption under (i) or
(ii) above have been satisfied, (B) that the Company may not exercise its option
to redeem with respect to a Tax Event unless it fixes, not later than 90 days
after the occurrence of such Tax Event, a date for such redemption and mails a
notice thereof to Holders, and (C) that the Company may not exercise its option
to redeem with respect to a Tax Event unless it pays a premium, in addition to
the Redemption Price, in cash equal to the product of (y) 100% of the
outstanding principal amount of such Surplus Note, and (z) the percentage
specified below for the applicable date of redemption:

        Redemption During the 12-Month          Percentage of Principal Amount
           Period Beginning May 24,

                  2004                                       5%

                  2005                                       4%

                  2006                                       3%

                  2007                                       2%

                  2008                                       1%

           2009 and thereafter                               0%

         The Redemption Price and premium, if any, shall be paid prior to 10:00
a.m., New York City time, on the date of such redemption or at such earlier time
as the Company determines. If the Surplus Notes are only partially redeemed by
the Company, the Surplus Notes will be

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redeemed pro rata or by lot or by any other method utilized by the Trustee (in
integral multiples of $1,000).

         In the event of redemption of this Surplus Note in part only, a new
Surplus Note or Surplus Notes for the unredeemed portion hereof will be issued
in the name of the Holder hereof upon the cancellation hereof.

         In case an Event of Default shall have occurred and be continuing, the
principal of all of the Surplus Notes may be declared, and upon such declaration
shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the Holders of a majority in aggregate principal
amount of the Surplus Notes at the time outstanding, to execute supplemental
indentures for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders; provided,
however, that no such supplemental indenture shall, without the consent of the
Holders of each Surplus Note, (i) change the Stated Maturity of any such Surplus
Note, or reduce the rate (or change the manner of calculation of the rate) or
change any date on which interest thereon is payable, or reduce the principal
amount thereof or any premium thereon, or change any redemption or repayment
date or period or price, or make the principal thereof or any interest or
premium thereon payable in any coin or currency other than that provided in the
Surplus Notes, or impair or affect the right of any Securityholder to institute
suit for payment thereof, (ii) reduce the aforesaid percentage of Surplus Notes
the Holders of which are required to consent to any such supplemental indenture
or (iii) otherwise materially and adversely affect the interests of the Holders
of any such Surplus Note. The Indenture also contains provisions permitting the
Holders of a majority in aggregate principal amount of the Surplus Notes at the
time outstanding affected thereby, on behalf of all of the Holders of the
Surplus Notes, to waive any past default in the performance of any of the
covenants contained in the Indenture, or established pursuant to the Indenture,
and its consequences, except a default in the payment of the principal of or
premium, if any, or interest on any of the Surplus Notes. Any such consent or
waiver by the Holder of this Surplus Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future
Holders and owners of this Surplus Note and of any Surplus Note issued in
exchange herefor or in place hereof (whether by registration of transfer or
otherwise), irrespective of whether or not any notation of such consent or
waiver is made upon this Surplus Note.

         No reference herein to the Indenture and no provision of this Surplus
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, premium, if any,
and interest on this Surplus Note at the time and place and at the rate and in
the money herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, this Surplus Note is transferable by the Holder hereof on the Surplus
Note Register, upon surrender of this Surplus Note for registration of transfer
at the office or agency of the Trustee, accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company or the Trustee duly
executed by the Holder hereof or such Holder's attorney duly

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<PAGE>

authorized in writing, and thereupon one or more new Surplus Notes of authorized
denominations and for the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge will be made for any
such transfer, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in relation thereto.

         The Surplus Notes are issuable only in fully registered form without
interest coupons in denominations of $100,000 and any integral multiple of
$1,000 in excess thereof. As provided in the Indenture and subject to certain
limitations herein and therein set forth, Surplus Notes so issued are
exchangeable for a like aggregate principal amount of Surplus Notes of a
different authorized denomination, as requested by the Holder surrendering the
same.

         Prior to due presentment for registration of transfer of this Surplus
Note, the Company, the Trustee, any paying agent, any transfer agent and any
Surplus Note registrar may deem and treat the Holder hereof as the absolute
owner hereof (whether or not this Surplus Note shall be overdue and
notwithstanding any notice of ownership or writing hereon made by anyone other
than a Surplus Note registrar) for the purpose of receiving payment of or on
account of the principal hereof and interest hereon and for all other purposes,
and none of the Company, the Trustee, any paying agent, any transfer agent or
any Surplus Note registrar shall be affected by any notice to the contrary.

         THIS SURPLUS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW); PROVIDED, HOWEVER, THAT THE APPLICABLE REGULATORY AUTHORITY'S
EXERCISE OF REGULATORY AUTHORITY WITH RESPECT TO THE COMPANY AND THE SURPLUS
NOTES, INCLUDING APPROVAL OF THE FORM OF AND PAYMENTS UNDER THE SURPLUS NOTES,
SHALL BE GOVERNED BY AND IN ACCORDANCE WITH THE LAWS OF THE JURISDICTION OF THE
APPLICABLE REGULATORY AUTHORITY, AND THE PARTIES SHALL SUBMIT ANY DISPUTES
RELATED TO THE EXERCISE OF SUCH REGULATORY AUTHORITY TO A COURT OF COMPETENT
JURISDICTION IN SUCH JURISDICTION.

                                       4<PAGE>
                                                                    EXHIBIT 10.1

                                 FIRST AMENDMENT

         This First Amendment, dated as of September 15, 2004 among PERFORMANCE
FOOD GROUP COMPANY, a Tennessee corporation, (the "Borrower"), the Lenders party
to the Credit Agreement referenced below (the "Lenders") and WACHOVIA BANK,
NATIONAL ASSOCIATION, as administrative agent (the "Administrative Agent"), for
the Lenders. All capitalized terms used but not otherwise defined herein shall
have the meanings assigned to them in the Credit Agreement.

                              STATEMENT OF PURPOSE:

         The Lenders agreed to extend certain credit facilities to the Borrower
pursuant to an Amended and Restated Credit Agreement dated as of April 28, 2003
by and among the Borrower, the Lenders and the Administrative Agent (as amended,
restated, supplemented, or otherwise modified from time to time, the "Credit
Agreement").

         The Borrower desires to prepay and redeem in full, in cash, the
Convertible Subordinated Notes by payment of the amount of approximately
$207,575,086.25, (which amount includes a call premium in the amount of
approximately $6,325,086.25) (the "Redemption Amount") to Bank One Trust
Company, N.A., as trustee under the Indenture dated October 16, 2001 under which
the Convertible Subordinated Notes were issued (such prepayment and redemption,
the "Redemption"), such Redemption Amount to be paid by means of a Revolving
Credit Loan under the Credit Agreement.

         Section 10.11 of the Credit Agreement permits redemption of the
Convertible Subordinated Notes only under limited circumstances and restricts
cash redemption of the Convertible Subordinated Notes to the amount of
$12,500,000.

         The Borrower has requested that the Administrative Agent and the
Lenders (i) amend certain provisions of the Credit Agreement to permit the
Redemption and (ii) amend certain other provisions of the Credit Agreement.

         The Administrative Agent and the Required Lenders are willing, solely
upon the terms and conditions set forth below, to so amend the terms of the
Credit Agreement to the extent set forth herein.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Borrower, the Administrative
Agent and the Required Lenders hereby agree as follows:

         1.       Amendments.

                  (a)      Section 9.1 of the Credit Agreement is hereby amended
                           by deleting the existing text of such Section and by
                           substituting the following text in lieu thereof:

                  "SECTION 9.1 Senior Leverage Ratio As of any fiscal quarter
           end, permit the ratio of (a) Senior Debt on such date to (b) EBITDAR
           for the period of four (4) consecutive fiscal quarters ending on or
           immediately prior to such date to be greater than 3.25 to 1.00."

                                       1
<PAGE>

                  (b)      Section 4.1(c) of the Credit Agreement is hereby
                           amended by deleting the existing pricing grid of such
                           Section in its entirety and by substituting the
                           following pricing grid in lieu thereof:

       <TABLE>
       <CAPTION>
                                                                    Applicable Margin Per Annum
                                                                    ----------------------------
       Level         Senior Leverage Ratio                          Base Rate         LIBOR Rate
       -----         ---------------------                          ---------         ----------
<S>                  <C>                                            <C>               <C>
       1             Greater than 3.0 to 1.00                       0.00%             1.50%
       2             Greater than 2.5 to 1.00                       0.00%             1.25%
                     but less than or equal to 3.0 to 1.00
       3             Greater than 2.0 to 1.00                       0.00%             1.00%
                     but less than or equal to 2.5 to 1.00

       4             Greater than 1.5 to 1.00                       0.00%             0.75%
                     but less than or equal to 2.0 to 1.00

       5             Less than or equal to 1.5 to 1.00              0.00%             0.50%
       </TABLE>

                  (c)      Section 10.11 of the Credit Agreement is hereby
                           amended by (i) deleting the word "and" at the end of
                           clause "(b)" and by substituting a comma in its place
                           and stead and (ii) adding the following clause "(c)"
                           immediately after the end of existing clause "(b)":

         ", and (c) notwithstanding any term or provision of this Section 10.11
         or Section 2.9 of this Agreement to the contrary, at any time during
         the period commencing on September 15, 2004 and ending on December 31,
         2004, call the Convertible Subordinated Notes for redemption and redeem
         the Convertible Subordinated Notes in full, in cash, for an amount not
         to exceed $215,000,000.00 in the aggregate (including any call premium
         or prepayment premium), provided no Event of Default shall exist at the
         time of such redemption or shall result therefrom."

         2.       Conditions to Effectiveness. This First Amendment shall only
                  be effective on the date that each of the following conditions
                  has been satisfied:

                  (a)      The Administrative Agent shall have received
                           counterparts of this First Amendment executed by the
                           Borrower and the Required Lenders;

                  (b)      The Administrative Agent shall have received payment
                           from the Borrower of (i) an amendment fee (for the
                           benefit of itself and each of the Lenders who approve
                           this First Amendment by delivery to the
                           Administrative Agent of their respective executed
                           signature page to this First Amendment before 5:00
                           P.M. on September 15, 2004) equal to (a) 0.125% times
                           (b) the Commitment, as of the date hereof, of each
                           such approving Lender, and (ii) the fees and expenses
                           described in Paragraph 4.

                                       2
<PAGE>

                  (c)      The Administrative Agent shall have received and
                           approved such other instruments, documents and
                           certificates as the Administrative Agent shall
                           reasonably request in connection with the
                           transactions described herein.

                  (d)      By its execution hereof, the Borrower hereby
                           certifies that each of the representations and
                           warranties set forth in the Credit Agreement and the
                           other Loan Documents is true and correct as of the
                           date hereof (other than representations and
                           warranties which speak as of a specific date pursuant
                           to the Credit Agreement, which representations and
                           warranties shall have been true and correct as of
                           such specific dates) as if fully set forth herein and
                           that as of the date hereof no Default or Event of
                           Default has occurred and is continuing.

         3.       Effect of First Amendment.  The amendments granted herein are
                  specific and limited only to the sections of the Credit
                  Agreement referred to in Paragraph 1 above and shall not be
                  construed as (i) a waiver of the Borrower's compliance with
                  any provision of the Credit Agreement or a waiver of any
                  Default or Event of Default under the Credit Agreement, the
                  Loan Documents or any other document or instrument entered
                  into in connection therewith or (ii) an amendment of the
                  Credit Agreement or any of the Loan Documents or a
                  modification, acceptance or waiver or a future modification,
                  acceptance or waiver of the provisions set forth therein,
                  except to the extent specifically set forth in Paragraph 1.

         4.       Fees and Expenses. The Borrower shall pay all reasonable
                  out-of-pocket fees and expenses of the Administrative Agent in
                  connection with the preparation, execution and delivery of
                  this First Amendment, including, without limitation, the
                  reasonable fees and disbursements of counsel for the
                  Administrative Agent.

         5.       Governing Law. This First Amendment shall be governed by and
                  construed in accordance with the laws of the State of North
                  Carolina, without reference to the conflicts or choice of law
                  provisions thereof.

         6.       Counterparts. This First Amendment may be executed in separate
                  counterparts, each of which when executed and delivered is an
                  original but all of which taken together constitute one and
                  the same instrument.

         7.       Facsimile Transmission. A facsimile, telecopy or other
                  reproduction of this First Amendment may be executed by one or
                  more parties hereto, and an executed copy of this First
                  Amendment may be delivered by one or more parties hereto by
                  facsimile or similar instantaneous electronic transmission
                  device pursuant to which the signature of or on behalf of such
                  party can be seen, and such execution and delivery shall be
                  considered valid, binding and effective for all purposes. At
                  the request of any party hereto, all parties hereto agree to
                  execute an original of this First Amendment as well as any
                  facsimile, telecopy or other reproduction hereof.

                            [Signature Pages Follow]

                                       3
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed as of the date and year first above written.

                                         BORROWER:

                                         PERFORMANCE FOOD GROUP COMPANY,
                                         as Borrower

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

<PAGE>

                                         WACHOVIA BANK, NATIONAL ASSOCIATION,
                                         as Administrative Agent and Lender

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

<PAGE>

                                         -----------------------------------,
                                         as Lender

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

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