Document:

SECOND AMENDMENT TO
RIGHTS AGREEMENT 

        This
Second Amendment (the “Amendment”), dated as of December 5, 2005, is made
and entered into between Fresh Brands, Inc., a Wisconsin corporation (the
“Company”), and American Stock Transfer & Trust Company, a New York
banking corporation (“AST”), to the Rights Agreement between the Company
and AST (as successor Rights Agent to Firstar Bank, N.A.), dated as of October 12, 2001,
and as amended by the Agreement of Substitution and Amendment of Rights Agreement, dated
as of August 19, 2002 (as so amended, the “Rights Agreement”). 

W I T N E S S E T H 

        WHEREAS,
pursuant to Section 27 of the Rights Agreement, under circumstances set forth therein, (i)
the Company may supplement or amend any provision of the Rights Agreement without the
approval of any holders of certificates representing Common Shares of the Company, and
(ii) upon the delivery of a certificate from an appropriate officer of the Company which
states that the proposed supplement or amendment is in compliance with the terms of
Section 27 of the Rights Agreement, the Rights Agent shall execute such supplement or
amendment; and 

        WHEREAS,
the Company desires to amend the Rights Agreement as set forth herein and to direct AST as
Rights Agent to execute this Amendment. 

        NOW,
THEREFORE, in consideration of the promises and the mutual agreements herein set
forth, the parties hereby agree as follows: 

        Section
1. Direction to Rights Agent. The Company hereby directs AST, in its capacity as
Rights Agent and in accordance with the terms of Section 27 of the Rights Agreement, to
execute this Amendment. 

        Section
2. Certification of Appropriate Officer. The undersigned officer of the Company,
being duly authorized on behalf of the Company, hereby certifies on behalf of the Company
to AST that (a) he is an “appropriate officer” as such term is used in Section
27 of the Rights Agreement, and (b) this Amendment is in compliance with Section 27 of the
Rights Agreement. 

        Section
3. Amendment of Rights Agreement. The Rights Agreement is hereby amended as
follows: 

        (a)                 Section
1 of the Rights Agreement is hereby amended by inserting the following
          subsections at the end of such Section 1:  

	 	        “(m)                 “Merger” shall
have the meaning set forth in the Merger Agreement.  

	 	        (n)                      “Merger
Agreement” shall mean the Agreement and Plan of Merger, dated                as of
December 5, 2005, by and among the Company and Certified Holdings, Inc.                (“Parent”),
a Delaware corporation and an Affiliate of Certified                Grocers Midwest,
Inc., and Pillow Acquisition Corp., a Wisconsin corporation and                a wholly
owned subsidiary of Parent.” 

        (b)                 Section
1(a) of the Rights Agreement is hereby amended by inserting the           following
sentences at the end of such Section 1(a):  

	 	        “Notwithstanding
anything in this Section 1(a) to the contrary, neither Certified Holdings, Inc. nor any
of its Subsidiaries, Affiliates or Associates, including but not limited to Certified
Grocers Midwest, Inc. (collectively, “Certified”) shall be, or shall be deemed
to be, an Acquiring Person by virtue of or as a result of (A) the execution of the Merger
Agreement or any agreements, arrangements or understandings entered into by Associated
contemplated by the Merger Agreement if such agreements, arrangements or understandings
are in accordance with the terms and conditions of the Merger Agreement; (B) the
announcement of the Merger Agreement or the Merger; (C) the consummation of the Merger;
or (D) the consummation of the other transactions contemplated by the Merger Agreement
upon the terms and conditions of the Merger Agreement. Each event described in subclauses
(A), (B), (C) and (D) is referred to herein as an “Exempted Transaction”.” 

	 	        (c)                 Section
1(c) of the Rights Agreement is hereby amended by inserting the           following
sentence at the end of such Section 1(c):  

	 	        “Notwithstanding
anything in this Section 1(c) to the contrary, (i) Certified shall not be deemed to be a
Beneficial Owner of, or to beneficially own, any securities solely by virtue of or as a
result of any Exempted Transaction.” 

        (d)                 Section
1(k) of the Rights Agreement is hereby amended by inserting the           following
sentence at the end of such Section 1(k):  

	 	        “Notwithstanding
anything in this Section 1(k) to the contrary, a Shares Acquisition Date shall not be
deemed to have occurred by virtue of or as a result of the public announcement of any
Exempted Transaction.” 

        (e)                 Section
3(a) of the Rights Agreement is hereby amended by inserting the           following
sentence at the end of such Section 3(a):  

	 	        “Notwithstanding
anything in this Section 3(a) to the contrary, a Distribution Date shall not be deemed to
have occurred by virtue of or as a result of any Exempted Transaction.” 

        (f)                 Section
7(a) of the Rights Agreement is hereby amended to read in its entirety           as
follows:  

	 	        “(a)                      The
registered holder of any Right Certificate may exercise the Rights evidenced
               thereby (except as otherwise provided herein) in whole or in part at any
time                after the Distribution Date upon surrender of the Right Certificate,
with the                form of election to purchase on the reverse side thereof duly
executed, to the                Rights Agent at the principal office of the Rights Agent,
together with payment                of the Purchase Price for each Common Share as to
which the Rights are                exercised, at or prior to the earliest of (i) the
close of business on November                9, 2011, subject to extension (the “Final
Expiration Date”), (ii)                immediately prior to the effective time of
the Merger as provided in the Merger                Agreement (the “Effective Time”),
but only if such Effective Time                shall occur, (iii) the time at which the
Rights are redeemed as provided in                Section 23 hereof (the “Redemption
Date”), and (iv) the time at which                such Rights are exchanged as
provided in Section 24 hereof.” 

-2- 

        (g)                 The
Rights Agreement is hereby amended by adding a new Section 35 to the end of           the
Rights Agreement, which new Section 35 shall read in its entirety as           follows:  

	 	        “Section
35. Termination. Immediately prior to the Effective Time, but only if such Effective Time
shall occur, (a) the Rights Agreement shall be terminated and be without any further
force or effect, (b) none of the parties to the Rights Agreement will have any rights,
obligations or liabilities thereunder and (c) the holders of the Rights shall not be
entitled to any benefits, rights or other interests under the Rights Agreement,
including, without limitation, the right to purchase or otherwise acquire Common Share or
any other securities of the Company. Notwithstanding the foregoing, Section 18 hereof
shall survive the termination of the Rights Agreement. The Company will notify in writing
the Rights Agent of the Effective Time. The Rights Agent will not be deemed to have
knowledge of the Effective Time unless and until it has received such written notice.” 

        Section
4. Effectiveness and Continued Effectiveness. In accordance with the resolutions of
the Company’s Board of Directors adopted on December 5, 2005, the amendments to the
Rights Agreement set forth in Section 3 above are effective as of the time at which such
resolutions were adopted. The parties hereto hereby acknowledge and agree that, except as
specifically supplemented and amended, changed or modified in Section 3 above, the Rights
Agreement, as previously amended to the date hereof, shall be unaffected by this Amendment
and remain in full force and effect in accordance with its terms. 

        Section
5. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute one and the same instrument. 

        Section
6. Defined Terms. Except as otherwise expressly provided herein, or unless the
context otherwise requires, all terms used but not defined herein shall have the meanings
assigned to them in the Rights Agreement. 

        Section
7. Governing Law. This Amendment shall be deemed to be a contract made under the
laws of the State of Wisconsin and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and performed
entirely within such State. 

-3- 

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

		FRESH BRANDS, INC.
	

 	By:  /s/ Louis E. Stinebaugh
		        Name: Louis E. Stinebaugh
		        Title: President and Chief Operating Officer
	

 	AMERICAN STOCK TRANSFER & TRUST COMPANY
	

 	By:  /s/ Herbert J. Lemmer
		       Name: Herbert J. Lemmer
		        Title: Vice President

-4-FRESH BRANDS, INC.
OPTION CANCELLATION
AGREEMENT 

THIS OPTION CANCELLATION
AGREEMENT, made this _____day of December, 2005, by and between FRESH BRANDS,
INC., a Wisconsin corporation (the “Company”), and [NAME OF OPTIONEE]
(“Optionee”). 

        WHEREAS,
the Company has established the Fresh Brands, Inc. 1995 Equity Incentive Plan (also known
as the Schultz Sav-O Stores, Inc. 1995 Equity Incentive Plan) (the “1995 Plan”)
and the Fresh Brands, Inc. 2001 Nonemployee Director Option Plan (also known as the
Schultz Sav-O Stores, Inc. 2001 Nonemployee Director Option Plan) (the “2001
Plan”) for the purpose of providing an additional incentive to key employees and
directors through stock ownership and a corresponding proprietary interest in the Company
through the award of options. 

        WHEREAS,
the Company granted to the Optionee the options specified on Exhibit A (the
“Option(s)”) under the 1995 Plan and/or the 2001 Plan. 

        WHEREAS,
the Company has entered into that certain Agreement and Plan of Merger among Certified
Holdings, Inc., Pillow Acquisition Corp. and the Company, dated as of December 5 2005 (the
“Merger Agreement”) that provides for the merger of Pillow Acquisition Corp. and
the Company (the “Merger”) for a cash payment per share of Company common stock
of $7.05; 

        WHEREAS,
pursuant to the Merger Agreement and in order to effectuate the Merger, the Company is
required to cancel the Option(s); and 

        WHEREAS,
the Company and the Optionee desire to cancel the Option(s) in exchange for a cash
payment. 

        NOW,
THEREFORE, in consideration of the premises, the Company and the Optionee agree as
follows: 

1.       Cancellation
of the Option(s). The Company and the Optionee acknowledge           and irrevocably
agree that the Option(s) is hereby automatically surrendered,           canceled and
shall cease to exist immediately prior to the Effective Time of the           Merger, as
that term is defined in the Merger Agreement. In addition, from the           date of
execution of this Agreement to the Effective Time of the Merger, the           Optionee
irrevocably agrees not to exercise any of the Option(s).  

2.       Payment
to the Optionee. In consideration for the surrender and           cancellation of the
Option(s) and the Optionee’s irrevocable agreement to           refrain from
exercising the Option(s), the Company is hereby providing to the           Optionee a
cash payment of One Hundred dollars ($100.00). The payment, or any           other
payment to which the Optionee is entitled from the Company, shall be           reduced
for any required withholding taxes due as a result of the payment           hereunder.  

3.       Release.
Effective immediately, but subject to paragraph 1 and the           Effective Time of the
Merger, the Optionee, on behalf of himself/herself and           his/her heirs, assigns,
executors, administrators, personal representatives and           other successors, and
in any and all capacities hereby unconditionally releases           and forever
discharges the Company, Certified Holdings, Inc.,Pillow           Acquisition
Corp., and their respective affiliates, divisions, subsidiaries,           employees,
officers, directors, agents, accountants, attorneys, shareholders,           successors,
trustees, beneficiaries, heirs and assigns from, without limitation,           any and
all claims, awards, damages, obligations, promises, complaints, demands,
          liabilities and charges, or any other compensation whatsoever, whether known or
          unknown, now or hereafter accrued, arising or in any way related to the
          Option(s), including but not limited to the Optionee’s right to receive a
          cash payment following a change in control as provided in the option agreement.  

4.       Representations
and Warranties of Optionee. Optionee hereby represents,           warrants and
covenants that: (a) Optionee is the sole beneficial and record           owner and holder
of the Option(s), which Option(s) are free and clear of any           liens, claims,
options, charges, third party rights or other encumbrances           (including, without
limitation, restrictions on rights of disposition other than           those imposed by
applicable laws); (b) Optionee has fully power and authority to           make, enter
into and carry out the terms of this Agreement; (c) Optionee has           duly executed
and delivered this Agreement; and (d) this Agreement constitutes a           valid and
binding obligation of Optionee.  

5.       Further
Assurances. Optionee hereby covenants and agrees to execute and           deliver any
additional documents and take any other actions necessary or           desirable to carry
out the purpose and intent of this Agreement, including,           without limitations,
any actions required to cancel the Option(s).  

6.       Law
Governing. This Agreement may not be modified or terminated orally,           and
shall be construed and interpreted according to the internal laws of the           State
of Wisconsin, excluding any choice of law rules that may direct the           application
of the laws of another jurisdiction.  

7.       Binding
Effect. The provisions of this Agreement shall be binding upon           and shall
inure to the benefit of the parties and their respective heirs,           personal
representatives, successors and assigns.  

8.       Entire
Agreement. This Agreement constitutes the final, complete and           exclusive
agreement between the parties with respect to the matters set forth           herein, and
supersedes all prior agreements, promises, covenants, arrangements,
          communications, representations or warranties, whether oral or written, by an
          officer, employee or representative of any party hereto.  

9.       Amendment.
This Agreement may be amended, modified and supplemented only           by a written
agreement between the parties hereto which states that it is           intended to be a
modification of this Agreement.  

10.       Counterparts.
This Agreement may be executed in one or more counterparts,           each of which shall
be deemed an original, but all of which together shall           constitute one and the
same instrument.  

11.       Headings.
The headings in this Agreement are inserted for convenience           only and shall not
constitute a part hereof.  

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above. 

	OPTIONEE	FRESH BRANDS, INC.
	

_______________________________	By:  ________________________________________
	[Name of Optionee]	        Louis E. Stinebaugh, President and
		        Chief Operating Officer

2 

EXHIBIT A 

LIST OF OPTION(S) 

	

	Grant Date	Number of Options	Exercise price
	

	

3

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