Exhibit 10.1
 
Pilgrim’s Pride Corporation
 
First Amendment To Amended and Restated Post-Petition Credit Agreement
 
This First Amendment to Amended and Restated Post-Petition Credit Agreement
(herein, the “Amendment”) is entered into as of February 26, 2009, among
Pilgrim’s Pride Corporation, a Delaware corporation (the “Borrower”), as debtor
and debtor-in-possession in a case pending under Chapter 11 of the Bankruptcy
Code, the direct and indirect Domestic Subsidiaries of the Borrower party to
this Amendment and To-Ricos, Ltd., a Bermuda company (“To-Ricos”) and To-Ricos
Distribution, Ltd., a Bermuda company (“To-Ricos Distribution”), as Guarantors,
each as debtor and debtor-in-possession in a case pending under Chapter 11 of
the Bankruptcy Code, the Lenders party hereto, and Bank of Montreal, a Canadian
chartered bank acting through its Chicago branch,  as DIP Agent for the Lenders.
    
Preliminary Statements
 
        A.  The Borrower, the Guarantors from time to time parties thereto, the
Lenders and the DIP Agent are parties to that certain Amended and Restated
Post-Petition Credit Agreement dated as of December 31, 2008 (the “Credit
Agreement”).  All capitalized terms used herein without definition shall have
the same meanings herein as such terms have in the Credit Agreement.
 
        B.  The Borrower and the Lenders have agreed to amend the Credit
Agreement on the terms and conditions set forth in this Amendment.
 
        Now, Therefore, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
 
 Section 1.     Amendments To Credit Agreement.
 

 
        Upon satisfaction of all of the conditions precedent specified in
Section 2 hereof the Credit Agreement shall be amended as follows:
 
        Section 1.1.  The definition of “EBITDAR” in Section 5.1 of the Credit
Agreement shall be amended by the insertion of a new clause (g) immediately
following the existing clause (f), as follows:
 
“, and (g) Closure Costs in an aggregate amount not to exceed $35,000,000 ,”
 
        Section 1.2.  Section 5.1 of the Credit Agreement shall be amended by
adding the following definition thereto in alphabetical order:

 
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“Closure Costs” means, with respect to the Douglas, Georgia complex, the El
Dorado, Arkansas complex and the Farmerville, Louisiana complex, any costs
consisting of lease termination costs, severance costs, facility shutdown costs
and other related restructuring expenses, costs and charges relating to or
associated with the closure of such complexes.
 
        Section 1.3.  Schedule I attached to the form of Compliance Certificate
attached to the Credit Agreement  as Exhibit  F shall be replaced by Schedule I
attached to this Amendment.
 
 Section 2.     Conditions Precedent.
 

 
The effectiveness of this Amendment is subject to the satisfaction of all of the
following conditions precedent:
 
        Section 2.1.  The Borrower, the Guarantors and the Required Lenders
shall have executed and delivered this Amendment .
 
        Section 2.2.  Each of the representations and warranties set forth in
Section 6 of the Credit Agreement shall be true and correct in all material
respects, except to the extent the same expressly relate to an earlier date in
which case they shall remain true and correct in all material respects as of
such earlier date.
 
        Section 2.3.  The Borrower shall be in full compliance with all of the
terms and conditions of the Credit Agreement and no Event of Default or Default
shall have occurred and be continuing thereunder or shall result after giving
effect to this Amendment.
 
        Section 2.4.  The Bankruptcy Court shall have entered an order
authorizing the execution and delivery of this Amendment.
 
 Section 3.     Representations And Warranties.
 

 
        Section 3.1.The Borrower, by its execution of this Amendment, hereby
certifies and warrants the following:
 
        (a)each of the representations and warranties set forth in Section 6 of
the Credit Agreement is true and correct in all material respects as of the date
hereof, except to the extent the same expressly relate to an earlier date in
which case they shall remain true and correct in all material respects as of
such earlier date; and
 
        (b)the Borrower is in full compliance with all of the terms and
conditions of the Credit Agreement and no Event of Default or Default has
occurred and is continuing thereunder.

 
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Section 4.     Miscellaneous. 
 

 
        Section 4.1.  Except as specifically amended herein the Credit Agreement
shall continue in full force and effect.  Reference to this specific Amendment
need not be made in any note, documents, letter, certificate, the Credit
Agreement itself, the Notes, or any communication issued or made pursuant to or
with respect to the Credit Agreement or the Notes, any reference to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.
 
        Section 4.2.  As an additional inducement to and in consideration of the
Lenders’ acceptance of this Amendment each of the Guarantors hereby acknowledges
the execution of the foregoing Amendment by the Borrower and agrees that this
acknowledgement is not required under the terms of the Guaranty and that the
execution hereof by the Guarantors shall not be construed to require the Lenders
to obtain their acknowledgement or consent to any future amendment, modification
or waiver of any term of the Credit Agreement except as otherwise provided in
the Guaranty.  Each of the Guarantors hereby agree that the Guaranty shall apply
to all indebtedness, obligations and liabilities of the Borrower and the
Guarantors to the Lenders under the Credit Agreement as amended by this
Amendment.  Each Guarantor further acknowledges and agrees that the Guaranty
shall be and remain in full force and effect.
 
        Section 4.3.  This Amendment may be executed in any number of
counterparts, and by the different parties on different counterparts, all of
which taken together shall constitute one and the same Agreement.  Any of the
parties hereto may execute this Amendment by signing any such counterpart and
each of such counterparts shall for all purposes be deemed to be an
original.  This Amendment shall be governed by the internal laws of the State of
Illinois.
 
[Signature pages to follow]

 
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This First Amendment to Amended and Restated Post-Petition Credit Agreement is
entered into as of the date and year first above written.

 
 
“Borrower”

 
 
Pilgrim’s Pride Corporation, as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 
“Guarantors”

 
 
PFS Distribution Company, as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 
PPC Transportation Company, as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 
Pilgrim’s Pride Corporation of West Virginia, Inc., as debtor and
debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
    Name: Richard A. Cogdill
 
    Title: Chief Financial Officer, Secretary andTreasurer

                              

 
 

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PPC Marketing, Ltd., as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 
To-Ricos, Ltd., as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 
To-Ricos Distribution, Ltd., as debtor and debtor-in-possession

 
 
By: /s/ Richard A. Cogdill

 
Name: Richard A. Cogdill

 
Title: Chief Financial Officer, Secretary andTreasurer

 
 

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“DIP Agent, Swing Line Lender and L/C Issuer”

 
 
Bank of Montreal, as a Lender, Swing Line Lender, L/C Issuer and as DIP Agent

 
 
By: /s/ Barry W. Stratton

 
Name: Barry W. Stratton

 
Title: Senior Vice President

 
 

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“Lenders”

 
 
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. “Rabobank Nederland” New
York Branch

 
 
By: /s/ Richard J. Beard

 
Its: Executive Director

 
 
By: Rebecca Morrow

 
Its: Executive Director

 
 
U.S. Bank National Association

 
 
By: /s/ Dale L. Welke

 
Its: Vice President

 
 
Wells Fargo Bank National Association

 
 
By

 
Its

 
 
ING Capital LLC

 
 
By: /s/ Bill Redmond

 
Its: Managing Director

 
 
By

 
Its

 
 
CALYON New York Branch

 
 
By: /s/ Mark Koneval

 
Its: Managing Director

 
 
By: Alan Sidrane

 
Its: Managing Director

 
 
 

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Natixis New York Branch

 
 
By: /s/ Stephen A. Jendras

 
Its: Managing Director

 
 
By: /s/ Alisa Trani

 
Its: Associate Director

 
 
SunTrust Bank

 
 
By: Janet R. Naifeh

 
Its: Senior Vice President

 
 
First National Bank of Omaha

 
 
By

 
Its

 

 
 

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Schedule I
to Compliance Certificate
 
Pilgrim’s Pride Corporation, as debtor and debtor-in-possession
 
Compliance Calculations
for Amended and Restated Post-Petition Credit Agreement dated as of December 31,
2008, as amended
 
Calculations as of _____________, _______
 
A.Capital Expenditures (Section 8.22(a))
     
1.Period-to-date Capital Expenditures
 
 $
___________
 
2.Maximum permitted amount
 
 $
150,000,000  
3.The Borrower is in compliance (circle yes or no)
   
yes/no
 
B.Minimum EBITDAR (Section 8.22(b))
       
1.Net Income for past 3 fiscal months
 
 $
___________
 
2.Interest Expense for past 3 fiscal months
 
 $
___________
 
3.Income taxes for past 3 fiscal months
 
 $
___________
 
4.Depreciation and Amortization Expense for past 3 fiscal months
 
 $
___________
 
5.Asset impairment charges and restructuring costs consisting of professional
fees and expenses for past 3 fiscal months
 
 $

___________
 
6.Losses realized upon asset sales for past 3 fiscal months
 
 $
___________
 
7.Write-downs of goodwill or other intangibles for past 3 fiscal months
 
 $
___________
 
8.Closure Costs with respect to the Douglas, Georgia, El Dorado, Arkansas and
Farmerville, Louisiana complexes for past 3 fiscal months
 
 $

 
___________
 
9.Gains realized upon asset sales for past 3 fiscal months
 
 $

___________
 
10.Sum of lines B1 through B8 minus Line B9 (EBITDAR)
 
 $
___________
 
11.Minimum required amount
 
 $
___________
 
12.The Borrower is in compliance (circle yes or no)
   
yes/no
 

 
 

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