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<SEC-DOCUMENT>0000950124-07-005224.txt : 20071019
<SEC-HEADER>0000950124-07-005224.hdr.sgml : 20071019
<ACCEPTANCE-DATETIME>20071019144906
ACCESSION NUMBER:		0000950124-07-005224
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20071015
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071019
DATE AS OF CHANGE:		20071019

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALAVO GROWERS INC
		CENTRAL INDEX KEY:			0001133470
		STANDARD INDUSTRIAL CLASSIFICATION:	AGRICULTURE SERVICES [0700]
		IRS NUMBER:				330945304
		STATE OF INCORPORATION:			CA

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-33385
		FILM NUMBER:		071180870

	BUSINESS ADDRESS:	
		STREET 1:		2530 RED HILL AVE.
		CITY:			SANTA ANA
		STATE:			CA
		ZIP:			92705
		BUSINESS PHONE:		9098334200
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v34703e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Date of report (Date of earliest event reported): October&nbsp;15, 2007</B>

</DIV>
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CALAVO GROWERS, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>California</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-33385</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>33-0945304</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Incorporation)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>1141-A Cummings Road, Santa Paula, California 93060</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 0pt; width: 42%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Address of Principal Executive Offices)&nbsp;&nbsp;(Zip Code)</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 42%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
<DIV align="center" style="font-size: 10pt">(Former Name or Former Address, if Changed Since Last Report)</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Registrant&#146;s telephone number, including area code: <B>(805)&nbsp;525-1245</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT>&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT>&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;1.01 Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;9.01 Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="v34703exv10w1.htm">EXHIBIT 10.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion below in Item&nbsp;2.03 is hereby incorporated by reference into this Item&nbsp;1.01.
</DIV>
<!-- link1 "Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.
&nbsp;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective October&nbsp;15, 2007, Calavo Growers, Inc. (&#147;we&#148; or &#147;the Company&#148;), and Bank of America,
N.A. (&#147;BoA&#148;), entered into a Business Loan Agreement (the
&#147;Agreement&#148;), which amends our existing credit Facility with BoA. Under the terms of the Agreement,
we are advanced funds for working capital purposes. Total credit available under the borrowing
agreement is now $10&nbsp;million. The credit facility contains various financial covenants, the most
significant relating to working capital, tangible net worth (as defined), and Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA) (as defined).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preceding discussion is qualified by reference to the Agreement, which is filed as an
exhibit to this Current Report on Form 8-K and is incorporated herein.
</DIV>
<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business Loan Agreement dated as of October&nbsp;15, 2007 between Calavo
Growers, Inc. and Bank of America, N.A.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

 <DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
<TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Calavo Growers, Inc.</TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" colspan="4"><DIV style="margin-left:0px; text-indent:-0px">October 15, 2007</DIV></TD>
</TR>
<TR style="font-size: 10pt">
    <TD align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD valign="top" nowrap><DIV style="border-bottom:1px solid black; width:10%">/s/ Lecil E. Cole</DIV></TD>
</TR>
<TR style="font-size: 10pt">
    <TD align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
      <TD colspan="2">Lecil E. Cole</TD>
    <TD valign="top" nowrap  style="border-bottom:0px solid black">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt">
    <TD align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Chairman of the Board of Directors, Chief Executive Officer and</TD>
</TR>
<TR style="font-size: 10pt">
    <TD align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">President</TD>
    <TD valign="top" nowrap  style="border-bottom:0px solid black">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">(Principal Executive Officer)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v34703exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt">Exhibit 10.1</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">BUSINESS LOAN AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement dated as of October&nbsp;15, 2007 is between BANK OF AMERICA, N.A. (the &#147;Bank&#148;) and
CALAVO GROWERS, INC. (the &#147;Borrower&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1. LINE OF CREDIT AMOUNT AND TERMS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.1 <U>Line of Credit Amount</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the availability period described below, the Bank will provide a line of credit
to the Borrower. The amount of the line of credit (the &#147;Commitment&#148;) is $10,000,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This is a revolving line of credit. During the availability period, the Borrower may repay
principal amounts and reborrow them.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees not to permit the principal balance outstanding to exceed the Commitment.
If the Borrower exceeds this limit, the Borrower will immediately pay the excess to the Bank
upon the Bank&#146;s demand.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.2 <U>Availability Period</U>. The line of credit is available between the date of this Agreement
and July&nbsp;1, 2009 or such earlier date as the availability may terminate as provided in this
Agreement (the &#147;Expiration Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The availability period for this line of credit will be considered renewed if and only if the Bank
has sent to the Borrower a written notice of renewal effective as of the Expiration Date for the
line of credit (the &#147;Renewal Notice&#148;). If this line of credit is renewed, it will continue to be
subject to all the terms and conditions set forth in this Agreement except as modified by the
Renewal Notice. The Borrower specifically understands and agrees that the interest rate applicable
to this line of credit may be increased upon renewal and that the new interest rate will apply to
the entire outstanding principal balance of the line of credit. If this line of credit is renewed,
the term &#147;Expiration Date&#148; shall mean the date set forth in the Renewal Notice as the Expiration
Date and the same process for renewal will apply to any subsequent renewal of this line of credit.
A renewal fee may be charged at the Bank&#146;s option. If so, the amount will be specified in the
Renewal Notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.3 <U>Repayment Terms</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will pay interest on October&nbsp;1, 2007 and then monthly thereafter until payment in
full of any principal outstanding under this line of credit.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Any interest period for an optional interest rate (as described below) shall expire no later
than the Expiration Date.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will repay in full all principal and any unpaid interest or other charges
outstanding under this line of credit no later than the Expiration Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.4 <U>Interest Rate</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest rate is a rate per year equal to the Bank&#146;s Prime Rate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Prime Rate is the rate of interest publicly announced from time to time by the Bank as
its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the
Bank&#146;s costs and desired return, general economic conditions and other factors, and is used as
a reference point for pricing some loans. The Bank may price loans to its customers at, above,
or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of
business on the day specified in the public announcement of a change in the Bank&#146;s Prime Rate.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.5 <U>Optional Interest Rates</U>. Instead of the interest rate based on the rate stated in the
paragraph entitled &#147;Interest Rate&#148; above, the Borrower may elect the optional interest rates listed
below for this Commitment during interest periods agreed to by the Bank and the Borrower. The
optional interest rates shall be subject to the terms and conditions described later in this
Agreement. Any principal amount bearing interest at an optional rate under this Agreement is
referred to as a &#147;Portion.&#148; The following optional interest rates are available:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The LIBOR Rate plus 1.00&nbsp;percentage point.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The IBOR Rate plus 1.00&nbsp;percentage point.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2. OPTIONAL INTEREST RATES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1 <U>Optional Rates</U>. Each optional interest rate is a rate per year. Interest will be paid
on the first day of each month during the interest period. At the end of any interest period, the
interest rate will revert to the rate stated in the paragraph(s) entitled &#147;Interest Rate&#148; above,
unless the Borrower has designated another optional interest rate for the Portion. No Portion will
be converted to a different interest rate during the applicable interest period. Upon the
occurrence of an event of default under this Agreement, the Bank may terminate the availability of
optional interest rates for interest periods commencing after the default occurs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.2 <U>LIBOR Rate</U>. The election of LIBOR Rates shall be subject to the following terms and
requirements:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest period during which the LIBOR Rate will be in effect will be one or two weeks,
or one, two, three, four, five, six, seven, eight, nine, ten, eleven, or twelve months. The
first day of the interest period must be a day other than a Saturday or a Sunday on which the
Bank is open for business in New York and London and dealing in offshore dollars (a &#147;LIBOR
Banking Day&#148;). The last day of the interest period and the actual number of days during the
interest period will be determined by the Bank using the practices of the London inter-bank
market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each LIBOR Rate Portion will be for an amount not less than One Hundred Thousand Dollars
($100,000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The &#147;LIBOR Rate&#148; means the interest rate determined by the following formula, rounded upward
to the nearest 1/100 of one percent. (All amounts in the calculation will be determined by the
Bank as of the first day of the interest period.)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top" colspan="3">LIBOR Rate =</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>London Inter-Bank Offered Rate</U></TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1.00 - Reserve Percentage)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where,
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;London Inter-Bank Offered Rate&#148; means the average per annum interest
rate at which U.S. dollar deposits would be offered for the applicable interest period
by major banks in the London inter-bank market, as shown on the Telerate Page 3750 (or
any successor page) at approximately 11:00&nbsp;a.m. London time two (2)&nbsp;London Banking Days
before the commencement of the interest period. If such rate does not appear on the
Telerate Page 3750 (or any successor page), the rate for that interest period will be
determined by such alternate method as reasonably selected by the Bank. A &#147;London
Banking Day&#148; is a day on which the Bank&#146;s London Banking Center is open for business
and dealing in offshore dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Reserve Percentage&#148; means the total of the maximum reserve percentages for
determining the reserves to be maintained by member banks of the Federal Reserve
System for Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation
D,</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rounded upward to the nearest 1/100 of one percent. The percentage will be
expressed as a decimal, and will include, but not be limited to, marginal,
emergency, supplemental, special, and other reserve percentages.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower shall irrevocably request a LIBOR Rate Portion no later than 12:00 noon
California time on the LIBOR Banking Day preceding the day on which the London Inter-Bank
Offered Rate will be set, as specified above. For example, if there are no Intervening
holidays&nbsp;or weekend days in any of the relevant locations, the request must be made at least
three days before the LIBOR Rate takes effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank will have no obligation to accept an election for a LIBOR Rate Portion if any
of the following described events has occurred and is continuing:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dollar deposits in the principal amount, and for periods equal to the
interest period, of a LIBOR Rate Portion are not available in the London inter-bank
market; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the LIBOR Rate does not accurately reflect the cost of a LIBOR Rate Portion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each prepayment of a LIBOR Rate Portion, whether voluntary, by reason of acceleration or
otherwise, will be accompanied by the amount of accrued interest on the amount prepaid and a
prepayment fee as described below. A &#147;prepayment&#148; is a payment of an amount on a date earlier
than the scheduled payment date for such amount as required by this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The prepayment fee shall be in an amount sufficient to compensate the Bank for any loss, cost
or expense incurred by it as a result of the prepayment, including any loss of anticipated
profits and any loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Portion or from fees payable to terminate the deposits from which such
funds were obtained. The Borrower shall also pay any customary administrative fees charged by
the Bank in connection with the foregoing. For purposes of this paragraph, the Bank shall be
deemed to have funded each Portion by a matching deposit or other borrowing in the applicable
interbank market, whether or not such Portion was in fact so funded.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.3 <U>IBOR Rate</U>. The election of IBOR Rates shall be subject to the following terms and
requirements:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest period during which the IBOR Rate will be in effect will be no shorter than one
(1)&nbsp;day and no longer than one year. The last day of the interest period will be determined by
the Bank using the practices of the offshore dollar inter-bank market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each IBOR Rate Portion will be for an amount not less than One Hundred Thousand and 00/100
Dollars ($100,000.00).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The &#147;IBOR Rate&#148; means the interest rate determined by the following formula, rounded upward
to the nearest 1/100 of one percent. (All amounts in the calculation will be determined by
the Bank as of the first day of the interest period.)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top" colspan="3">IBOR Rate =</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>IBOR Base Rate</U></TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1.00 - Reserve Percentage)</TD>
</TR>

<TR valign="bottom">
<TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top" colspan="3">Where,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;IBOR Base Rate&#148; means the interest rate at which the Bank of America&#146;s
Grand Cayman Banking Center, Grand Cayman, British West Indies, would offer U.S. dollar
deposits for the applicable interest period to other major banks in the offshore dollar
inter-bank market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Reserve Percentage&#148; means the total of the maximum reserve percentages for</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determining the reserves to be maintained by member banks of the Federal Reserved
System for Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation&nbsp;D,
rounded upward to the nearest 1/100 of one percent. The percentage will be expressed
as a decimal, and will include, but not be limited to, marginal, emergency, supplemental,
special, and other reserve percentages.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank will have no obligation to accept an election for an IBOR Rate Portion if any of the following described events has occurred and is continuing:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dollar deposits in the principal amount, and for periods equal to the interest period, of an IBOR Rate Portion are not available in the offshore dollar inter-bank market; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the IBOR Rate does not accurately reflect the cost of an IBOR Rate Portion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each prepayment of a IBOR Rate Portion, whether voluntary, by reason of acceleration or
otherwise, will be accompanied by the amount of accrued interest on the amount prepaid and a
prepayment fee as described below. A &#147;prepayment&#148; is a payment of an amount on a date earlier
than the scheduled payment date for such amount as required by this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The prepayment fee shall be in an amount sufficient to compensate the Bank for any loss, cost
or expense incurred by it as a result of the prepayment, including any loss of anticipated
profits and any loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Portion or from fees payable to terminate the deposits from which such
funds were obtained. The Borrower shall also pay any customary administrative fees charged by
the Bank in connection with the foregoing. For purposes of this paragraph, the Bank shall be
deemed to have funded each Portion by a matching deposit or other borrowing in the applicable
interbank market, whether or not such Portion was in fact so funded.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3. FEES AND EXPENSES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.1 <U>Fees</U>.

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Unused Commitment Fee</U>. The Borrower agrees to pay a fee on any difference between the
Commitment and the amount of credit it actually uses, determined by the average of the daily
amount of credit outstanding during the specified period. The fee will be calculated at 0.15%
per year.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">This fee is due on the first day of the second month following each calendar quarter
commencing on October&nbsp;1, 2007 and continuing until the Expiration Date and on the Expiration
Date.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Waiver Fee</U>. If the Bank, at its discretion, agrees to waive or amend any terms of
this Agreement, the Borrower will, at the Bank&#146;s option, pay the Bank a fee for each waiver or
amendment in an amount advised by the Bank at the time the Borrower requests the waiver or
amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any
waiver or amendment requested by the Borrower. The Bank may impose additional requirements as
a condition to any waiver or amendment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Late Fee</U>. To the extent permitted by law, the Borrower agrees to pay a late
fee in an amount not to exceed four percent (4%) of any payment that is more than fifteen (15)
days late. The imposition and payment of a late fee shall not constitute a waiver of the
Bank&#146;s rights with respect to the default.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2 <U>Expenses</U>. The Borrower agrees to immediately repay the Bank for expenses that include,
but are not limited to, filing, recording and search fees, appraisal fees, title report fees, and
documentation fees.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3 <U>Reimbursement Costs</U>. The Borrower agrees to reimburse the Bank for any expenses it
incurs in the preparation of this Agreement and any agreement or instrument required by this
Agreement. Expenses include, but are not limited to, reasonable attorneys&#146; fees, including any
allocated costs of the Bank&#146;s in-house counsel to the extent permitted by applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4. DISBURSEMENTS, PAYMENTS AND COSTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 <U>Disbursements and Payments</U>.

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each payment by the Borrower will be made in immediately available funds by direct debit to a
deposit account as specified below or by mail to the address shown on the Borrower&#146;s statement
or at one of the Bank&#146;s banking centers in the United States.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each disbursement by the Bank and each payment by the Borrower will be evidenced by records
kept by the Bank. In addition, the Bank may, at its discretion, require the Borrower to sign
one or more promissory notes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4.2 <U>Telephone and Telefax Authorization</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank may honor telephone or telefax instructions for advances or repayments given, or
purported to be given, by any one of the individuals authorized to sign loan agreements on
behalf of the Borrower, or any other individual designated by any one of such authorized
signers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advances will be deposited in and repayments will be withdrawn from account number 03724-02990 owned by the Borrower or such other of the Borrower&#146;s accounts with the Bank as
designated in writing by the Borrower.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in
connection with any act resulting from telephone or telefax instructions the Bank reasonably
believes are made by any individual authorized by the Borrower to give such instructions. This
paragraph will survive this Agreement&#146;s termination, and will benefit the Bank and its
officers, employees, and agents.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4.3 <U>Direct Debit</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees that interest and principal payments and any fees will be deducted
automatically on the due date from account number 03724-02990 owned by Borrower, or such other
of the Borrower&#146;s accounts with the Bank as designated in writing by the Borrower.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will maintain sufficient funds in the account on the dates the Bank enters
debits authorized by this Agreement. If there are insufficient funds in the account on the
date the Bank enters any debit authorized by this Agreement, the Bank may reverse the debit.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.4 <U>Banking Days</U>. Unless otherwise provided in this Agreement, a banking day is a day other
than a Saturday, Sunday or other day on which commercial banks are authorized to close, or are in
fact closed, in the state where the Bank&#146;s lending office is located, and, if such day relates to
amounts bearing interest at an offshore rate (if any), means any such day on which dealings in
dollar deposits are conducted among banks in the offshore dollar interbank market. All payments and
disbursements which would be due on a day which is not a banking day will be due on the next
banking day. All payments received on a day which is not a banking day will be applied to the
credit on the next banking day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.5 <U>Interest Calculation</U>. Except as otherwise stated in this Agreement, all interest and
fees, if any, will be computed on the basis of a 360-day year and the actual number of days
elapsed. This results in more interest or a higher fee than if a 365-day year is used. Installments
of principal which are not paid when due under this Agreement shall continue to bear interest until
paid.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.6 <U>Default Rate</U>. Upon the occurrence of any default under this Agreement, all amounts
outstanding under this Agreement, including any interest, fees, or costs which are not paid when
due, will at the option of the Bank bear interest at a rate which is 2.0&nbsp;percentage point(s) higher
than the rate of interest otherwise provided under this Agreement. This may result in compounding
of interest. This will not constitute a waiver of any default.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5. CONDITIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank must receive the following items, in form and content acceptable to the Bank, before
it is required to extend any credit to the Borrower under this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.1 <U>Conditions to First Extension of Credit</U>. Before the first extension of credit:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a) <U>Authorizations</U>. If the Borrower or any guarantor is anything other than a natural
person, evidence that the execution, delivery and performance by such Borrower and/or such
guarantor of this Agreement and any instrument or agreement required under this Agreement have been
duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b) <U>Governing Documents</U>. If required by the Bank, a copy of the Borrower&#146;s and any
guarantor&#146;s organizational documents; <U>provided</U> that the Borrower shall have 60&nbsp;days from
the date of this Agreement to submit organization documents for the guarantor Calavo Foods, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c) <U>Payment of Fees</U>. Payment of all accrued and unpaid expenses incurred by the Bank as
required by the paragraph entitled &#147;Reimbursement Costs.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6. REPRESENTATIONS AND WARRANTIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes
the following representations and warranties. Each request for an extension of credit constitutes a
renewal of these representations and warranties as of the date of the request:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.1 <U>Formation</U>. Borrower and each of its subsidiaries is duly formed and existing under the
laws of the state where organized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.2 <U>Authorization</U>. This Agreement, and any instrument or agreement required hereunder, are
within the Borrower&#146;s (and its subsidiaries&#146; as the case may be) powers, have been duly authorized,
and do not conflict with any of its organizational papers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.3 <U>Enforceable Agreement</U>. This Agreement is a legal, valid and binding agreement of the
Borrower, enforceable against the Borrower in accordance with its terms, and any instrument or
agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding
and enforceable (against Borrower or its subsidiaries, as the case may be).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.4 <U>Good Standing</U>. Each of Borrower and its subsidiaries, with respect to each state in
which it does business, it is properly licensed, in good standing, and, where required, in
compliance with fictitious name statutes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.5 <U>No Conflicts</U>. This Agreement does not conflict with any law, agreement, or obligation
by which the Borrower or any of its subsidiaries is bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.6 <U>Financial Information</U>. All financial and other information that has been or will be
supplied to the Bank is sufficiently complete to give the Bank accurate knowledge of the Borrower&#146;s
and its subsidiaries (and any guarantor&#146;s) financial condition, including all material contingent
liabilities. Since the date of the most recent financial statement provided to the Bank, there has
been no material adverse change in the business condition (financial or otherwise), operations,
properties or prospects of the Borrower or its subsidiaries (or any guarantor).
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.7 <U>Permits, Franchises</U>. The Borrower and each of its subsidiaries possesses all permits,
memberships, franchises, contracts and licenses required and all trademark rights, trade name
rights, patent rights and fictitious name rights necessary to enable it to conduct the business in
which it is now engaged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.8 <U>Other Obligations</U>. Neither the Borrower nor any of its subsidiaries is in default on
any obligation for borrowed money, any purchase money obligation or any other material lease,
commitment, contract, instrument or obligation, except as have been disclosed in writing to the
Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.9 <U>Tax Matters</U>. The Borrower has no knowledge of any pending assessments or adjustments of
its income tax for any year and all taxes due have been paid, except as have been disclosed in
writing to the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.10 <U>No Event of Default</U>. There is no event which is, or with notice or lapse of time or
both would be, a default under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.11 <U>Insurance</U>. The Borrower and each of its subsidiaries has obtained, and maintained in
effect, the insurance coverage required in the &#147;Covenants&#148; section of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.12 <U>Location of Borrower</U>. The Borrower&#146;s place of business (or, if the Borrower has more
than one place of business, its chief executive office) is located at the address listed under the
Borrower&#146;s signature on this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7. COVENANTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower agrees, so long as credit is available under this Agreement and until the Bank is
repaid in full:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.1 <U>Use of Proceeds</U>. To use the proceeds of the Commitment only for working capital
purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.2 <U>Financial Information</U>. To provide the following financial information and statements
in form and content acceptable to the Bank, and such additional information as requested by the
Bank from time to time:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within 90&nbsp;days of the fiscal year end, the annual financial statements of the Borrower and
its subsidiaries, certified and dated by an authorized financial officer. These financial
statements must be audited (with an opinion satisfactory to the Bank) by a Certified Public
Accountant acceptable to the Bank. The statements shall be prepared on a consolidated basis
and shall be accompanied by Borrower prepared consolidating statements, certified and dated by
an authorized financial officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within 45&nbsp;days of the period&#146;s end (excluding the last period in each fiscal year), quarterly
financial statements of the Borrower and its subsidiaries, certified and dated by an
authorized financial officer. These financial statements may be company-prepared. The
statements shall be prepared on a consolidated basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By January 1 of each year, commencing January&nbsp;1, 2007, Borrower&#146;s annual forecast of
crop and projected processing expenses for such year.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.3 <U>Other Debts</U>. Not, and not permit its subsidiaries, to have outstanding or incur any
direct or contingent liabilities or capital lease obligations (other than those to the Bank), or
become liable for the liabilities of others, without the Bank&#146;s written consent. This does not
prohibit:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquiring goods, supplies, or merchandise on normal trade credit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Endorsing negotiable instruments received in the usual course of business.<BR></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Obtaining surety bonds in the usual course of business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liabilities, lines of credit and leases in existence on the date of this Agreement disclosed
in writing to the Bank, including that certain $20,000,000 line of credit with Cooperative
Bank, which line of credit shall be on terms no more restrictive than the terms of this
Agreement,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional debts for the acquisition of assets, to the extent permitted elsewhere in this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Funded debt not to exceed $14,000,000 incurred for the purpose of acquiring approximately 15%
of the equity interests in Limoneira Company, a Delaware corporation (&#147;Limoneira&#148;).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.4 <U>Other Liens</U>. Not, and not permit its subsidiaries, to create, assume, or allow any
security interest or lien (including judicial liens) on property the Borrower now or later owns,
except:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens and security interests in favor of the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens for taxes not yet due.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens outstanding on the date of this Agreement disclosed in writing to the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional purchase money security interests in assets acquired after the date of this
Agreement, if the total principal amount of debts secured by such liens does not exceed Five
Hundred Thousand Dollars ($500,000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens arising by operation of law and in the ordinary course of the Borrower&#146;s business
securing amounts the Borrower owes to growers of agricultural products purchased by the
Borrower for resale, processing, or use in producing the Borrower&#146;s inventory, provided such
obligations are not past due.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.5 <U>Maintenance of Assets</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not, and not permit its subsidiaries, to sell, assign, lease, transfer or otherwise dispose
of any part of the Borrower&#146;s (or such subsidiary&#146;s) business or the Borrower&#146;s assets except
in the ordinary course of the Borrower&#146;s business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not, and not permit its subsidiaries, to sell, assign, lease, transfer or otherwise dispose
of any assets for less than fair market value, or enter into any agreement to do so.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not, and not permit its subsidiaries, to enter into any sale and leaseback agreement covering
any of its fixed assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To, and cause each subsidiary to, maintain and preserve all rights, privileges, and
franchises the Borrower or such subsidiary now has.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To, and cause each subsidiary to, make any repairs, renewals, or replacements to keep
the Borrower&#146;s or such subsidiary&#146;s properties in good working condition.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.6 <U>Investments</U>. Not, and not permit its subsidiaries, to have any existing, or make any
new, investments in any individual or entity, or make any capital contributions or other transfers
of assets to any individual or entity, except for:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Existing investments disclosed to the Bank in writing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in the Borrower&#146;s current subsidiaries.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in any of the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certificates of deposit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. treasury bills and other obligations of the federal government; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>readily marketable securities (Including commercial paper, but
excluding restricted stock and stock subject to the provisions of Rule&nbsp;144 of the
Securities and Exchange Commission).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investment in equity interests of Limoneira in an amount not exceeding $14,000,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investment by the Borrower in Maui Fresh International LLC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional investments not exceeding $500,000 in total amount.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.7 <U>Loans</U>. Not, and not permit its subsidiaries, to make any loans, advances or other
extensions of credit to any individual or entity, except for:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Existing extensions of credit disclosed to the Bank in writing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extensions of credit to the Borrower&#146;s current subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extensions of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business to non-affiliated
entities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extensions of credit to the Borrower&#146;s officers, employees and directors under the terms and
conditions of the Borrower&#146;s Stock Purchase Award Plan and Director&#146;s Stock Option Plan, as
each is in effect as of the date of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Extensions of credit to growers of agricultural products in an aggregate amount not to exceed
$10,000,000.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.8 <U>Guaranties</U>. Will deliver to Bank a guaranty of Borrower&#146;s indebtedness under this
Agreement by Calavo Foods, Inc. within 60&nbsp;days of the date of this Agreement, which guaranty shall
be in form and substance acceptable to Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.9 &#091;Intentionally left blank.&#093;
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Additional Negative Covenants</U>. Not, and not permit its subsidiaries, to, without the
Bank&#146;s written consent:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Enter into any consolidation, merger, or other combination, or (ii)&nbsp;become a partner in a
partnership, a member of a joint venture, or a member of a limited liability company where the
aggregate amount invested exceeds One Million Dollars ($1,000,000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquire or purchase a business or its assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Engage in any business activities substantially different from the Borrower&#146;s or such
subsidiary&#146;s present business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liquidate or dissolve the Borrower&#146;s or such subsidiary&#146;s business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Notices to Bank</U>. To promptly notify the Bank in writing of:</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any lawsuit over One Million Dollars ($1,000,000) against the Borrower or any subsidiary (or
any guarantor).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any substantial dispute between any governmental authority and the Borrower or any subsidiary
(or any guarantor).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any event of default under this Agreement, or any event which, with notice or lapse of time
or both, would constitute an event of default.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any material adverse change in the Borrower&#146;s or any subsidiary&#146;s (or any guarantor&#146;s)
business condition (financial or otherwise), operations, properties or prospects, or ability
to repay the credit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any change in the Borrower&#146;s or any subsidiary&#146;s name, legal structure, place of business, or
chief executive office if the Borrower or such subsidiary has more than one place of business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any actual contingent liabilities of the Borrower or any subsidiary (or any guarantor), and
any such contingent liabilities which are reasonably foreseeable, in excess of One Million
Dollars ($1,000,000).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.12 <U>Insurance</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>General Business Insurance</U>. To, and to cause each subsidiary to, maintain insurance
as is usual for the business it is in.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Evidence of Insurance</U>. Upon the request of the Bank, to, and to cause each subsidiary
to, deliver to the Bank a copy of each insurance policy, or, if permitted by the Bank, a
certificate of insurance listing all insurance in force.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.13 <U>Compliance with Laws</U>. To, and to cause each subsidiary to, comply with the laws
(including any fictitious name statute), regulations, and orders of any government body with
authority over the Borrower&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.14 <U>ERISA Plans</U>. Promptly during each year, to pay and cause any subsidiaries to pay
contributions adequate to meet at least the minimum funding standards under ERISA with respect to
each and every Plan; file each annual report required to be filed pursuant to ERISA in connection
with each Plan for each year; and notify the Bank within ten (10)&nbsp;days of the occurrence of any
Reportable Event that might constitute grounds for termination of any capital Plan by the Pension
Benefit Guaranty Corporation or for the appointment by the appropriate United States District Court
of a trustee to administer any Plan. &#147;ERISA&#148; means the Employee Retirement Income Security Act of
1974, as amended from time to time. Capitalized terms in this paragraph shall have the meanings
defined within ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.15 <U>Books and Records</U>. To, and to cause each subsidiary to, maintain adequate books and
records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.16 <U>Audits</U>. To, and to cause each subsidiary to, allow the Bank and its agents to inspect
the Borrower&#146;s and its subsidiaries&#146; properties and examine, audit, and make copies of books and
records at any reasonable time. If any of the Borrower&#146;s properties, books or records are in the
possession of a third party, the Borrower authorizes that third party to permit the Bank or its
agents to have access to perform inspections or audits and to respond to the Bank&#146;s requests for
information concerning such properties, books and records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.17 <U>Cooperation</U>. To, and to cause each subsidiary to, take any action reasonably requested
by the Bank to carry out the intent of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.18 <U>Working Capital</U>. To maintain on a consolidated basis current assets in excess of
current liabilities by at least $15,000,000, measured on a quarterly basis. For purposes of
calculating current
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">liabilities all advances outstanding under this Agreement shall be included.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.19 <U>Tangible Net Worth</U>. To maintain on a consolidated basis Tangible Net Worth equal to at
least Fifty Million Dollars ($50,000,000), measured on a quarterly basis.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;Tangible Net Worth&#148; means the value of total assets (including leaseholds and leasehold
improvements and reserves against assets but excluding goodwill, patents, trademarks, trade
names, organization expense, unamortized debt discount and expense, capitalized or deferred
research and development costs, deferred marketing expenses, and other like intangibles, and
monies due from affiliates, officers, directors, employees, shareholders, members or
managers) less total liabilities, including but not limited to accrued and deferred income
taxes, but excluding the non-current portion of Subordinated Liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;Subordinated Liabilities&#148; means liabilities subordinated to the Borrower&#146;s obligations to
the Bank in a manner acceptable to the Bank in its sole discretion.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.20 <U>Out of Debt Period</U>. To reduce the amount of advances outstanding under this any and
all revolving lines of credit between Borrower and Bank to not more than Five Million Dollars
($5,000,000) for a period of at least thirty (30)&nbsp;consecutive days in each Line-Year. &#147;Line-Year&#148;
means the period between the date of this Agreement and July&nbsp;1, 2008, and each subsequent one-year
period (if any).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.21 <U>EBITDA</U>. To maintain EBITDA of at least Seven Million Five Hundred Thousand Dollars
($7,500,000), &#147;EBITDA&#148; means net income, less income or plus loss from discontinued operations and
extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, and
amortization. This covenant will be calculated at the end of each reporting period for which the
Bank requires financial statements, using the results of the twelve-month period ending with that
reporting period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.22 <U>Other Agreements</U>. Borrower shall not enter into any agreement (other than this
Agreement) that contains terms more restrictive than those contained herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8. DEFAULT AND REMEDIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any of the following events of default occurs, the Bank may do one or more of the following:
declare the Borrower in default, stop making any additional credit available to the Borrower, and
require the Borrower to repay its entire debt immediately and without prior notice. In addition, if
any event of default occurs, the Bank shall have all rights, powers and remedies available under
any instruments and agreements required by or executed in connection with this Agreement, as well
as all rights and remedies available at law or in equity. If an event of default occurs under the
paragraph entitled &#147;Bankruptcy,&#148; below, with respect to the Borrower, then the entire debt
outstanding under this Agreement will automatically be due immediately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1 <U>Failure to Pay</U>. The Borrower fails to make a payment under this Agreement when due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2 <U>Other Bank Agreements</U>. The Borrower (or any Obligor) or any of the Borrower&#146;s related
entities or affiliates fails to meet the conditions of, or fails to perform any obligation under
any other agreement the Borrower (or any Obligor) or any of the Borrower&#146;s related entities or
affiliates has with the Bank or any affiliate of the Bank. For purposes of this Agreement,
&#147;Obligor&#148; shall mean any guarantor, any party pledging collateral to the Bank, and any subsidiary
of the Borrower (whether or not such subsidiary is obligated in respect of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.3 <U>Cross-default</U>. Any default occurs under any agreement in connection with any credit the
Borrower (or any Obligor) or any of the Borrower&#146;s related entities or affiliates has obtained from
anyone else or which the Borrower (or any Obligor) or any of the Borrower&#146;s related entities or
affiliates has guaranteed.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4 <U>False Information</U>. The Borrower or any Obligor has given the Bank false or misleading
information or representations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.5 <U>Bankruptcy</U>. The Borrower, any Obligor, or any general partner of the Borrower or of any
Obligor files a bankruptcy petition, a bankruptcy petition is filed against any of the foregoing
parties, or the Borrower, any Obligor, or any general partner of the Borrower or of any Obligor
makes a general assignment for the benefit of creditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.6 <U>Receivers</U>. A receiver or similar official is appointed for a substantial portion of the
Borrower&#146;s or any Obligor&#146;s business, or the business is terminated, or, if any Obligor is anything
other than a natural person, such Obligor is liquidated or dissolved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.7 <U>Lawsuits</U>. Any lawsuit or lawsuits are filed on behalf of one or more trade creditors
against the Borrower or any Obligor in an aggregate amount of One Million Dollars ($1,000,000) or
more in excess of any insurance coverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.8 <U>Judgments</U>. Any judgments or arbitration awards are entered against the Borrower or any
Obligor, or the Borrower or any Obligor enters into any settlement agreements with respect to any
litigation or arbitration, in an aggregate amount of One Million Dollars ($1,000,000) or more in
excess of any insurance coverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.9 <U>Material Adverse Change</U>. A material adverse change occurs, or is reasonably likely to
occur, in the Borrower&#146;s (or any Obligor&#146;s) business condition (financial or otherwise),
operations, properties or prospects, or ability to repay the credit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.10 <U>Government Action</U>. Any government authority takes action that the Bank believes
materially adversely affects the Borrower&#146;s or any Obligor&#146;s financial condition or ability to
repay.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.11 <U>Default under Related Documents</U>. Any default occurs under any guaranty, subordination
agreement, security agreement, deed of trust, mortgage, or other document required by or delivered
in connection with this Agreement or any such document is no longer in effect, or any guarantor
purports to revoke or disavow the guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.12 <U>ERISA Plans</U>. Any one or more of the following events occurs with respect to a Plan of
the Borrower subject to Title IV of ERISA, provided such event or events could reasonably be
expected, in the judgment of the Bank, to subject the Borrower to any tax, penalty or liability (or
any combination of the foregoing) which, in the aggregate, could have a material adverse effect on
the financial condition of the Borrower:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or
partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.13 <U>Other Breach Under Agreement</U>. The Borrower fails to meet the conditions of, or fails
to perform any obligation under, any term of this Agreement not specifically referred to in this
Article. This includes any failure or anticipated failure by the Borrower to comply with any
financial covenants set forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is otherwise known to the Borrower or the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.14 <U>Breach Under Other Agreements</U>. The Borrower fails to meet the conditions of, or fails
to perform any obligation under, any terms of any agreement between the Borrower and any third
party.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9. ENFORCING THIS AGREEMENT; MISCELLANEOUS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.1 <U>GAAP</U>. Except as otherwise stated in this Agreement, all financial information provided
to the Bank and all financial covenants will be made under generally accepted accounting
principles, consistently applied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.2 <U>California Law</U>. This Agreement is governed by California law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.3 <U>Successors and Assigns</U>. This Agreement is binding on the Borrower&#146;s and the Bank&#146;s
successors and assignees. The Borrower agrees that it may not assign this Agreement without the
Bank&#146;s prior consent. The Bank may sell participations in or assign this loan, and may exchange
financial information about the Borrower with actual or potential participants or assignees. If a
participation is sold or the loan is assigned, the purchaser will have the right of set-off against
the Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.4 <U>Dispute Resolution Provision</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This paragraph, including the subparagraphs below, is referred to as the &#147;Dispute Resolution
Provision.&#148; This Dispute Resolution Provision is a material inducement for the parties entering
into this agreement.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Dispute Resolution Provision concerns the resolution of any controversies or claims
between the parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i)&nbsp;this agreement
(including any renewals, extensions or modifications); or (ii)&nbsp;any document related to this
agreement (collectively a &#147;Claim&#148;). For the purposes of this Dispute Resolution Provision
only, the term &#147;parties&#148; shall include any parent corporation, subsidiary or affiliate of the
Bank involved in the servicing, management or administration of any obligation described or
evidenced by this agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the &#147;Act&#148;).
The Act will apply even though this agreement provides that it is governed by the law of a
specified state.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (&#147;AAA&#148;), and the terms of this Dispute Resolution
Provision. In the event of any inconsistency, the terms of this Dispute Resolution Provision
shall control. If AAA is unwilling or unable to (i)&nbsp;serve as the provider of arbitration or
(ii)&nbsp;enforce any provision of this arbitration clause, the Bank may designate another
arbitration organization with similar procedures to serve as the provider of arbitration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in any U.S. state where real or tangible personal property collateral for this credit is
located or if there is no such collateral, in the state specified in the governing law section
of this agreement. All Claims shall be determined by one arbitrator; however, if Claims exceed
Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be decided
by three arbitrators. All arbitration hearings shall commence within ninety (90)&nbsp;days of the
demand for arbitration and close within ninety (90)&nbsp;days of commencement and the award of the
arbitrator(s) shall be issued within thirty (30)&nbsp;days of the close of the hearing. However,
the arbitrator(s), upon a showing of good cause, may extend the commencement of the hearing
for up to an additional sixty (60)&nbsp;days. The arbitrator(s) shall provide a concise written
statement of reasons for the award. The arbitration award may be submitted to any court having
jurisdiction to be confirmed and have judgment entered and enforced,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The arbitrator(s) will give effect to statutes of limitation in determining any Claim and may
dismiss the arbitration on the basis that the Claim is barred. For purposes of the application
of any statutes of limitation, the service on AAA under applicable AAA rules of a notice of
Claim is the</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or
whether a Claim is arbitrable shall be determined by the arbitrator(s), except as set forth
at subparagraph (j)&nbsp;of this Dispute Resolution Provision. The arbitrator(s) shall have the
power to award legal fees pursuant to the terms of this agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The procedure described above will not apply if the Claim, at the time of the proposed
submission to arbitration, arises from or relates to an obligation to the Bank secured by real
property. In this case, all of the parties to this agreement must consent to submission of the
Claim to arbitration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent any Claims are not arbitrated, to the extent permitted by law the Claims shall
be resolved in court by a judge without a jury, except any Claims which are brought in
California state court shall be determined by judicial reference as described below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Claim which is not arbitrated and which is brought in California state court will
be resolved by a general reference to a referee (or a panel of referees) as provided in
California Code of Civil Procedure Section&nbsp;638. The referee (or presiding referee of the
panel) shall be a retired Judge or Justice. The referee (or panel of referees) shall be
selected by mutual written agreement of the parties. If the parties do not agree, the referee
shall be selected by the Presiding Judge of the Court (or his or her representative) as
provided in California Code of Civil Procedure Section&nbsp;638 and the following related sections.
The referee shall determine all issues in accordance with existing California law and the
California rules of evidence and civil procedure. The referee shall be empowered to enter
equitable as well as legal relief, provide all temporary or provisional remedies, enter
equitable orders that will be binding on the parties and rule on any motion which would be
authorized in a trial, including without limitation motions for summary judgment or summary
adjudication. The award that results from the decision of the referee(s) will be entered as a
judgment in the court that appointed the referee, in accordance with the provisions of
California Code of Civil Procedure Sections 644(a) and 645. The parties reserve the right to
seek appellate review of any judgment or order, including but not limited to, orders
pertaining to class certification, to the same extent permitted in a court of law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Dispute Resolution Provision does not limit the right of any party to: (i)
exercise self-help remedies, such as but not limited to, setoff; (ii)&nbsp;initiate judicial or
non-judicial foreclosure against any real or personal property collateral; (iii)&nbsp;exercise any
judicial or power of sale rights, or (iv)&nbsp;act in a court of law to obtain an interim remedy,
such as but not limited to, injunctive relief, writ of possession or appointment of a
receiver, or additional or supplementary remedies. The filing of a court action is not
intended to constitute a waiver of the right of any party, including the suing party,
thereafter to require submittal of the Claim to arbitration or judicial reference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any arbitration, judicial reference or trial by a judge of any Claim will take place
on an individual basis without resort to any form of class or representative action (the
&#147;Class&nbsp;Action Waiver&#148;). Regardless of anything else in this Dispute Resolution Provision, the
validity and effect of the Class&nbsp;Action Waiver may be determined only by a court or referee
and not by an arbitrator. The parties to this Agreement acknowledge that the Class&nbsp;Action
Waiver is material and essential to the arbitration of any disputes between the parties and is
nonseverable from the agreement to arbitrate Claims. If the Class&nbsp;Action Waiver is limited,
voided or found unenforceable, then the parties&#146; agreement to arbitrate shall be null and void
with respect to such proceeding, subject to the right to appeal the limitation or invalidation
of the Class&nbsp;Action Waiver.<B> The Parties acknowledge and agree that under no circumstances will
a class action be arbitrated.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By agreeing to binding arbitration or judicial reference, the parties irrevocably and
voluntarily waive any right they may have to a trial by jury as permitted by law in respect of
any Claim. Furthermore, without intending in any way to limit this Dispute Resolution
Provision, to the extent any Claim is not arbitrated or submitted to judicial reference, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury to the
extent permitted by law in respect of such Claim. This waiver of jury trial shall remain in
effect even if the Class&nbsp;Action Waiver is limited, voided or found unenforceable.<B> WHETHER THE
CLAIM IS DECIDED BY ARBITRATION, BY JUDICIAL</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>REFERENCE, OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS
AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY
LAW.</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.5 <U>Severability; Waivers</U>. If any part of this Agreement is not enforceable, the rest of
the Agreement may be enforced. The Bank retains all rights, even if it makes a loan after default.
If the Bank waives a default, it may enforce a later default. Any consent or waiver under this
Agreement must be in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.6 <U>Attorneys&#146; Fees</U>. The Borrower shall reimburse the Bank for any reasonable costs and
attorneys&#146; fees incurred by the Bank in connection with the enforcement or preservation of any
rights or remedies under this Agreement and any other documents executed in connection with this
Agreement, and in connection with any amendment, waiver, &#147;workout&#148; or restructuring under this
Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled to
recover costs and reasonable attorneys&#146; fees incurred in connection with the lawsuit or arbitration
proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or
against the Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is entitled to recover costs
and reasonable attorneys&#146; fees incurred by the Bank related to the preservation, protection, or
enforcement of any rights of the Bank in such a case. As used in this paragraph, &#147;attorneys&#146; fees&#148;
includes the allocated costs of the Bank&#146;s in-house counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.7 <U>One Agreement</U>. This Agreement and any related security or other agreements
required by this Agreement, collectively:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>replace any prior oral or written agreements between the Bank and the Borrower concerning
this credit; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are intended by the Bank and the Borrower as the final, complete and exclusive statement of
the terms agreed to by them.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event of any conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. Any reference in any related document to a &#147;promissory
note&#148; or a &#147;note&#148; executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or restated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.8 <U>Indemnification</U>. The Borrower will indemnify and hold the Bank harmless from any loss,
liability, damages, judgments, and costs of any kind relating to or arising directly or indirectly
out of (a)&nbsp;this Agreement or any document required hereunder, (b)&nbsp;any credit extended or committed
by the Bank to the Borrower hereunder, and (c)&nbsp;any litigation or proceeding related to or arising
out of this Agreement, any such document, or any such credit. This Indemnity includes but is not
limited to attorneys&#146; fees (including the allocated cost of in-house counsel). This indemnity
extends to the Bank, its parent, subsidiaries and all of their directors, officers, employees,
agents, successors, attorneys, and assigns. This indemnity will survive repayment of the Borrower&#146;s
obligations to the Bank. All sums due to the Bank hereunder shall be obligations of the Borrower,
due and payable immediately without demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.9 <U>Notices</U>. Unless otherwise provided in this Agreement or in another agreement between
the Bank and the Borrower, all notices required under this Agreement shall be personally delivered
or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the
signature page of this Agreement, or sent by facsimile to the fax numbers listed on the signature
page, or to such other addresses as the Bank and the Borrower may specify from time to time in
writing. Notices and other communications shall be effective (i)&nbsp;if mailed, upon the earlier of
receipt or five (5)&nbsp;days after deposit in the U.S. mail, first class, postage prepaid, (ii)&nbsp;if
telecopied, when transmitted, or (iii)&nbsp;if hand-delivered, by courier or otherwise (including
telegram, lettergram or mallgram), when delivered.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.10 <U>Headings</U>. Article and paragraph headings are for reference only and shall not
affect the interpretation or meaning of any provisions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.11 <U>Counterparts</U>. This Agreement may be executed in as many counterparts as necessary or
convenient, and by the different parties on separate counterparts each of which, when so executed,
shall be deemed an original but all such counterparts shall constitute but one and the same
agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.12 <U>Prior Agreement Superseded</U>. This Agreement supersedes the Business Loan Agreement
entered into as of January&nbsp;30, 2004, between the Bank and the Borrower, and any credit outstanding
thereunder shall be deemed to be outstanding under this Agreement.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is executed as of the date stated at the top of the first page.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Bank of America, N.A.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Calavo Growers, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
   <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="0">By&nbsp;&nbsp;</TD>
    <TD> /s/ Susan Moinpour</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0">By&nbsp;&nbsp;</TD>
    <TD> /s/ Arthur J. Bruno</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
<TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000" colspan="0">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Authorized Signer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Typed Name&nbsp;Arthur J. Bruno</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Title&nbsp;COO, VP Finance Corp. Secretary</TD>
</TR>

<TR>
<TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD valign="top" colspan="0" style="border-bottom:1px solid black"> /s/ Scott H. Runge</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Typed Name Scott H. Runge</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Title&nbsp;Treasurer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Address where notices to
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Address where notices to</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">the Bank are to be sent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">the Borrower are to be sent:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Pasadena &#151; Attn: Notice Desk
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">1141A Cummings Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">101 S. Marengo Avenue, 5th Floor
</DIV></TD>
    <TD>&nbsp;</TD>
   <TD valign="top" colspan="2"> Santa Paula, CA 93060</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Pasadena, CA 91101-2428
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Telephone: 805-525-1245</TD>
</TR>
<TR valign="bottom">
   <TD valign="top" colspan="2"> <DIV style="margin-left:0px; text-indent:-0px">Telephone: 626-666-8465
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Facsimile:&nbsp;805 921-9223</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Facsimile: 626-666-2241</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">Borrower&#146;s place of business (or chief executive office, if more than one place of business), if different from address listed above:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom">
 <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
 <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000" colspan="2">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000" colspan="2">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>BANK OF AMERICA</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap  valign="top"><FONT style="font-variant: SMALL-CAPS"><B>AMENDMENT TO AUTOBORROWED SERVICE AGREEMENT</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Bank of America, N.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the &#147;Amendments&#148; paragraph in the Bank AutoBorrow Services Agreement (the
&#147;Agreement&#148;) executed by the parties hereto on, the following amendments to the Agreement have
been requested by (&#147;Customer&#148;) and agreed to by Bank of America, N.A., which changes shall be
effective within ten business days of the date of Bank&#146;s acceptance and acknowledgment:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>1. Borrowing Increment Amount: </B>For purposes of the Agreement, the Borrowing Increment
Amount shall be $no change. Customer Initials SHR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>2. Repaying Increment Amount: </B>For purposes of the Agreement, the Repaying Increment Amount
shall be $no change. Customer Initials SHR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><b>3. Line of Credit:</B> The Line of Credit subject to the Agreement shall be that credit
facility extended in the maximum principal amount of $10,000,000, as Evidenced by Loan
Agreement dated: October 15, 2007. Customer Initials SHR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>4. Borrowing Target:</B> For purposes of the Agreement, the Borrowing Target
shall be $no change. Customer Initials SHR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>5. Repaying Target:</B> For purposes of the Agreement, the Repaying Target
shall be $no change Customer Initials SHR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>6. Checking Account that Service is attached to:</B> For purposes of the Agreement, the customer
requests that the
checking account that AutoBorrow is attached to be changed from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Change&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Change&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 0pt; margin-left: 30%">
Current checking account number</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">New checking account number
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Customer Initials SHR
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Customer&#146;s Name (type or print)<BR>
Calavo Growers, Inc.

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ATTEST: If Corporation or Partnership:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Scott H. Runge
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Title: Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Bank of America, N.A.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accepted
and acknowledged by Bank of America, N.A. this day
15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> of, 2007 October

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bank of America, N.A.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Susan Moinpur
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By
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