Exhibit 10.1

 

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

This Amendment is entered into as of the 18th day of November, 2003, by and
between by and between GRUPO PILGRIM’S PRIDE FUNDING S. de R.L. de C.V., a
Sociedad de Responsabilidad Limitada de Capital Variable duly organized and
validly existing under the laws of the United Mexican States (“Mexico”), having
its corporate domicile in Queretaro, Mexico (“Company” or “Borrower”), COMERICA
BANK (“Comerica”), a banking corporation duly organized and validly existing
under the laws of the State of Michigan, of Detroit, Michigan and COMERICA BANK
MEXICO, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE a banking institution organized and
existing under the laws of Mexico (“CBM;” collectively with Comerica, the
“Bank”).

 

Recitals:

 

A. On or about September 7, 2001, the parties entered into a certain Revolving
Credit Agreement, as same has been amended from time to time (the “Loan
Agreement”).

 

B. Recently, Avicola Pilgrim’s Pride de Mexico, S.A. de C.V. changed its name to
Comercializadora de Carnes de Mexico, S.A. de C.V. (“Avicola”) and became the
primary importer or distributor in Mexico of poultry products exported by the US
Guarantor (as defined in the Loan Agreement) in Mexico.

 

C. As Avicola is the primary importer or distributor in Mexico of poultry
products exported by the US Gurantor in Mexico and has, as of October 1, 2002,
become the primary distributor in Mexico for poultry products produced by the
Operating Company (as defined in the Loan Agreement), Borrower has requested
that the financial covenants set forth in the Loan Agreement only be measured at
the consolidated Avicola level.

 

D. Bank is agreeable to this on the terms and conditions set forth below,
including but not limited to, the requirement that certain of Avicola’s
subsidiaries guarantee the indebtedness of Borrower to Bank.

 

NOW THEREFORE, for good and valuable consideration, the parties agree as
follows:

 

1. Concurrently herewith, Incubadora Hidalgo, S.A. de C.V. and Servicios
Adminstrativos Pilgrims Pride, S.A. de C.V. (each, a “New Guarantor”) shall
execute and deliver to Bank a guaranty agreement (fianza solidaria), in form and
substance satisfactory to Bank and concurrently herewith, each New Guarantor
shall be deemed a “Guarantor” under the terms of the Loan Agreement.
Additionally, concurrently herewith, each New Guarantor shall deliver to Bank
its respective authority documents as identified in Section 4.3 of the Loan
Agreement.

 

2. Section 6.7 of the Loan Agreement shall be amended by deleting the first
sentence.

 

3. Section 6.8 of the Loan Agreement shall be amended by deleting the first
sentence.

 

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4. Section 6.9 of the Loan Agreement shall be amended by deleting the first
sentence.

 

5. Section 6.10 of the Loan Agreement shall be amended by deleting the first
sentence.

 

6. Section 6.1 (b) and (c)of the Loan Agreement shall be amended as follows:

 

  (a) Section 6.1(b) shall be amended by deleting the phrase “the consolidated
balance sheet of the Borrower and the Guarantors” and substituting in lieu
therefor the phrase reading “the balance sheet of Avicola and the US Guarantor,
on a consolidated basis and additionally for Avicola on a consolidating basis”.

 

  (b) Section 6.1(b) shall be amended by deleting the phrase “statements of
income and retained earnings of the Borrower and of the Guarantors” and
substituting in lieu therefor the phrase reading “statements of income and
retained earnings of Avicola and of the US Guarantor, on a consolidated basis
and additionally for Avicola on a consolidating basis”.

 

  (c) Section 6.1(c) shall be amended by adding the phrase “and for Avicola on a
consolidated and on a consolidating basis” after the phrase “As soon as
available and in any event within 135 (one hundred thirty five) days after the
end of each fiscal year of the Borrower and of the Guarantors, a copy of the
audited consolidated balance sheets and statements of income and retained
earnings for the Borrower and for the Guarantors”.

 

7. Section 7.5 of the Loan Agreement shall be amended and restated in its
entirety to read as follows:

 

“7.5 Change of Business. (i) Engage in any material respects in any business
activity or operations other than operations or activities (a) in the poultry
industry, (b) processing and packaging of poultry products, (c) the distribution
and wholesales of poultry and other meat products, or (d) which are not
substantially different from or are related to its present business activities
or operations; or (ii) Operating Company fails to be the primary importer or
distributor in Mexico of poultry product exported by US Guarantor to Mexico;
provided that US Guarantor, Mexican Guarantors or Operating Company may create a
Subsidiary for the purpose of the distribution and sale of such product to third
parties without the consent of the Bank so long as such Subsidiary executes and
delivers to Bank (i) a guaranty of the obligations under this Agreement in
substantially the same form as the Guaranty; (ii) a security agreement granting
a security interest in the Accounts of such Subsidiary, which security interest
shall secure the obligations under this Agreement; (iii) adopts, formalizes and
records, to the extent required under applicable law, any and all resolutions so
that each such Subsidiary and its corresponding representative enjoy sufficient
authority for the execution of any documents that requires being executed,
formalized and delivered in connection with the transactions hereby
contemplated.”

 

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8. Except as expressly provided in this Amendment, the parties acknowledge that
the Loan Agreement is in full force and effect and Borrower acknowledges that
there are no defenses or setoffs to any of Borrower’s obligations under the Loan
Agreement as of the date hereof.

 

9. Borrower certifies that no default or Event of Default (as defined in the
Loan Agreement) has occurred and is continuing.

 

10. Borrower and Guarantors (as defined in the Loan Agreement) represent and
warrant that each of its authority documents (as identified in Section 4.2 and
4.3 of the Loan Agreement) delivered to Bank in connection with the Loan
Agreement, are in full force and effect and have not been modified, repealed or
amended since the date thereof, other than to change the name of Avicola
Pilgrim’s Pride de Mexico, S.A. de C.V. to Comercializadora de Carnes de Mexico,
S.A. de C.V.

 

11. If any provision of this Amendment shall be held invalid or unenforceable,
such invalidity or unenforceability shall affect only such provision and shall
not in any manner affect or render invalid or unenforceable any other provision
of this Amendment, and this Amendment shall be enforced as if any such invalid
or unenforceable provision were not contained herein.

 

12. Except as specifically amended hereby, the Loan Agreement shall remain
unchanged and shall be in full force and effect, enforceable in accordance with
its terms.

 

13. Capitalized terms not defined herein, shall have the meaning(s) set forth in
the Loan Agreement.

 

[signatures on the following page]

 

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WITNESS the due execution hereof as of the day and year first above written.

 

COMERICA BANK

     

GRUPO PILGRIM’S PRIDE FUNDING, S.

de RL, de C.V.

By:           By:        

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Its:

         

Its:

 

Attorney-In-Fact

   

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                      By:                    

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International Dept. – Latin Group

500 Woodward Ave.

Detroit, Michigan 48226-3330

Facsimile:                                 

     

Its: Attorney-In-Fact

Avenida 5 de Febrero No. 1408

Queretaro, Queretaro, Mexico

Facsimile: 011 42 17 97 80

Attn: Fernando Urresta

 

Comerica Bank Mexico, S.A. By:        

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Its:

       

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ACKNOWLEDGEMENT

 

The undersigned, Guarantors and Credit Parties hereby: (i) acknowledge and
consent to the execution, delivery and performance of this Amendment; (ii)
confirm the truth and validity of the representations and warranties set forth
herein, to the extent such representations and warranties pertain to the
undersigned, respectively, and (iii) ratify and agree to perform the covenants
and agreements set forth in this Amendment (and the Loan Agreement, as amended,
with respect to the New Guarantors), to the extent such covenants and agreements
specifically pertain to the undersigned, respectively.

 

GRUPO PILGRIM’S PRIDE FUNDING

HOLDINGS, S. de R.L. de C.V.

     

COMERCIALIZADORA DE CARNES DE

MEXICO, S.A. de C.V. formerly known as

AVICOLA PILGRIM’S PRIDE de MEXICO,

S.A. de C.V.

By:           By:        

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Its:

 

Attorney-In-Fact

     

Its:

 

Attorney-In-Fact

By:           By:        

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Its:

 

Attorney-In-Fact

     

Its:

 

Attorney-In-Fact

Address: Same as Borrower

     

Address:

 

Same as Borrower

PILGRIM’S PRIDE, S.A. de C.V.

     

PILGRIM’S PRIDE CORPORATION

By:           By:        

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Its:

 

Attorney-In-Fact

     

Its:

                   

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By:                

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Its:

 

Attorney-In-Fact

      Address:

Address: Same as Borrower

     

110 South Texas Street

Pittsburg, Texas 75686

Facsimile: 001 903 856 7505

Attn: Rick Cogdill

 

[acknowledgement continued on the following page]

 

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INCUBADORA HIDALGO, S.A. de C.V.

     

SERVICIOS                      ADMINISTRATIVOS

PILGRIMS PRIDE, S.A. de C.V.

By:           By:        

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Its:

 

Attorney-In-Fact

     

Its:

 

Attorney-In-Fact

 

          By:           By:        

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Its:

 

Attorney-In-Fact

     

Its:

 

Attorney-In-Fact

 

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