----

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| Section      1.          | The      Credit Facilities.                       | 1  |
|--------------------------|---------------------------------------------------|----|
|        Section 1.1  |        DIP Commitments                       | 1  |
|        Section 1.2  |        Letters of Credit                     | 2  |
|        Section 1.3  |        Applicable Interest Rates             | 5  |
|        Section 1.4  |        Minimum Borrowing Amounts             | 5  |
|        Section 1.5  |        Manner of Borrowing DIP Loans         | 5  |
|        Section 1.6  |        Swing Loans                           | 6  |
|        Section 1.7  |        Maturity of Loans                     | 8  |
|        Section 1.8  |        Prepayments                           | 8  |
|        Section 1.9  |        Default Rate                          | 10 |
|        Section 1.10 |        Evidence of Indebtedness              | 10 |
|        Section 1.11 |        Commitment Terminations               | 11 |
|        Section 1.12 |        Guaranties                            | 11 |
|        Section 1.13 |        Substitution of Lenders               | 11 |
| Section      2.          | Fees.                                             | 12 |
|        Section 2.1  |        Fees                                  | 12 |
| Section      3.          | Place      and Application of Payments.           | 12 |
|        Section 3.1  |        Place and Application of Payments     | 12 |
|        Section 3.2  |        Account Debit                         | 13 |
| Section      4.          | The      Collateral.                              | 13 |
|        Section 4.1  |        Security                              | 13 |
|        Section 4.2  |        Perfection of Security Interests      | 14 |
|        Section 4.3  |        Receivables and Inventory Collections | 15 |

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|        Section 4.4  |        Cash Collateral Account                                                 | 15 |
|--------------------------|-------------------------------------------------------------------------------------|----|
|        Section 4.5  |        Rights of DIP Agent                                                     | 16 |
|        Section 4.6  |        Performance by DIP Agent of Debtors’ Post-Petition    Obligations | 16 |
|        Section 4.7  |        DIP Agent’s Appointment as Attorney-in-Fact                       | 16 |
| Section      5.          | Definitions;      Interpretation.                                                   | 18 |
|        Section 5.1  |        Definitions                                                             | 18 |
|        Section 5.2  |        Interpretation                                                          | 39 |
|        Section 5.3  |        Change in Accounting Principles                                         | 39 |
|        Section 5.4  |        Timing of Payment or Performance                                        | 39 |
| Section      6.          | Representations      and Warranties                                                 | 40 |
|        Section 6.1  |        Organization and Qualification                                          | 40 |
|        Section 6.2  |        Subsidiaries                                                            | 40 |
|        Section 6.3  |        Authority and Validity of Obligations                                   | 40 |
|        Section 6.4  |        Use of Proceeds; Margin Stock                                           | 41 |
|        Section 6.5  |        Financial Reports                                                       | 41 |
|        Section 6.6  |        No Material Adverse Change                                              | 41 |
|        Section 6.7  |        Full Disclosure                                                         | 41 |
|        Section 6.8  |        Trademarks, Franchises, and Licenses                                    | 42 |
|        Section 6.9  |        Governmental Authority and Licensing                                    | 42 |
|        Section 6.10 |        Good Title                                                              | 42 |
|        Section 6.11 |        Litigation and Other Controversies                                      | 42 |
|        Section 6.12 |        Taxes                                                                   | 42 |
|        Section 6.13 |        Approvals                                                               | 43 |

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|        Section 6.14. |        Affiliate Transactions                          | 43 |
|--------------------------------|-------------------------------------------------------------|----|
|        Section 6.15       |        Investment Company                              | 43 |
|        Section 6.16       |        ERISA                                           | 43 |
|        Section 6.17       |        Compliance with Laws                            | 43 |
|        Section 6.18       |        Other Agreements                                | 44 |
|        Section 6.19       |        No Default                                      | 44 |
|        Section 6.20       |        Financing Orders                                | 44 |
|        Section 6.21       |        Super-Priority Administrative Expense and Liens | 45 |
| Section      7.                | Conditions      Precedent                                   | 45 |
| Section      7.1               | All      Credit Events                                      | 45 |
|        Section 7.2        |        Initial Credit Event                            | 46 |
| Section      8.                | Covenants                                                   | 49 |
|        Section 8.1        |        Maintenance of Business                         | 49 |
|        Section 8.2        |        Maintenance of Properties                       | 49 |
|        Section 8.3        |        Taxes and Assessments                           | 49 |
|        Section 8.4        |        Insurance                                       | 49 |
|        Section 8.5        |        Financial Reports                               | 50 |
|        Section 8.6        |        Inspection                                      | 52 |
|        Section 8.7        |        Borrowings and Guaranties                       | 53 |
|        Section 8.8        |        Liens                                           | 55 |
|        Section 8.9        |        Investments, Acquisitions, Loans and Advances   | 58 |
|        Section 8.10       |        Mergers, Consolidations and Sales               | 60 |
|        Section 8.11       |        Maintenance of Subsidiaries                     | 61 |

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|        Section 8.12 |        Dividends and Certain Other Restricted Payments                                                  | 61 |
|--------------------------|--------------------------------------------------------------------------------------------------------------|----|
|        Section 8.13 |        ERISA                                                                                            | 61 |
|        Section 8.14 |        Compliance with Laws                                                                             | 61 |
|        Section 8.15 |        Burdensome Contracts With Affiliates                                                             | 62 |
|        Section 8.16 |        No Changes in Fiscal Year                                                                        | 63 |
|        Section 8.17 |        Formation of Subsidiaries                                                                        | 63 |
|        Section 8.18 |        Change in the Nature of Business                                                                 | 63 |
|        Section 8.19 |        Use of Proceeds                                                                                  | 63 |
|        Section 8.20 |        No Restrictions                                                                                  | 63 |
|        Section 8.21 |        DIP Agent’s and Lenders’ Financial Consultant                                        | 65 |
|        Section 8.22 |        Financial Covenants                                                                              | 65 |
|        Section 8.23 |        Chapter 11 Claims                                                                           | 65 |
|        Section 8.24 |        Executory Contracts, Pre-Petition Debt and Payments Outside the Ordinary      Course of Business | 66 |
|        Section 8.25 |        Restriction on Hedging                                                                           | 66 |
|        Section 8.27 |        Subsidiary Distributions, Etc                                                                    | 67 |
|        Section 8.28 |        Borrower’s Financial Consultants Engagements; Sale of Certain      Assets                  | 67 |
|        Section 8.29 |        Engagement of Chief Restructuring Officer                                                        | 67 |
| Section      9.          | Events      of Default and Remedies                                                                          | 67 |
|        Section 9.1  |        Events of Default                                                                                | 67 |
|        Section 9.2  |        Consequences of Event of Default                                                                 | 71 |
|        Section 9.3  |        Relief from Stay                                                                                 | 72 |
| Section      10.         | Guarantee                                                                                                    | 72 |
|        Section 10.1 |        Guarantee                                                                                        | 72 |

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|        Section 10.2       |        Right of Contribution                                                                 | 72 |
|--------------------------------|---------------------------------------------------------------------------------------------------|----|
|        Section 10.3       |        No Subrogation                                                                        | 73 |
|        Section 10.4       |        Amendments, Etc. with Respect to the Post-Petition    Obligations                     | 73 |
|        Section 10.5       |        Guarantee Absolute and Unconditional                                                  | 73 |
|        Section 10.6       |   Reinstatement                                                                         | 74 |
|        Section 10.7       |        Payments                                                                              | 74 |
|        Section 10.8       |        Release of Guaranties                                                                 | 74 |
| Section      11.               | The      DIP Agent                                                                                | 75 |
|        Section 11.1       |        Appointment and Authorization of DIP Agent                                            | 75 |
|        Section 11.2       |        DIP Agent and its Affiliates                                                          | 75 |
|        Section 11.3       |        Action by DIP Agent                                                                   | 75 |
|        Section 11.4       |        Consultation with Experts                                                             | 76 |
|        Section 11.5       |        Liability of DIP Agent; Credit Decision                                               | 76 |
|        Section 11.6       |        Indemnity                                                                             | 76 |
|        Section 11.7       |        Resignation of DIP Agent and Successor DIP Agent                                      | 77 |
|        Section 11.8       |        L/C Issuer and Swing Line Lender                                                      | 77 |
|        Section 11.9       |        Authorization to Release or Subordinate or Limit Liens and to Release      Guaranties | 77 |
|        Section 11.10      |        Authorization to Enter into, and Enforcement of, the Collateral      Documents        | 78 |
| Section      12.               | Miscellaneous                                                                                     | 78 |
|        Section 12.1       |        Withholding Taxes                                                                     | 78 |
|        Section 12.2       |        No Waiver, Cumulative Remedies                                                        | 79 |
|         Section 12.3 |   Non-Business      Days                                                                | 80 |
|        Section 12.4       |        Documentary Taxes                                                                     | 80 |

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|        Section 12.5  | Survival      of Representations                                    | 80 |
|---------------------------|---------------------------------------------------------------------|----|
|        Section 12.6  | Survival      of Indemnities                                        | 80 |
|        Section 12.7  | Sharing      of Set-Off                                             | 80 |
|        Section 12.8  | Notices                                                             | 80 |
|        Section 12.9  | Counterparts                                                        | 82 |
|        Section 12.10 | Successors      and Assigns                                         | 82 |
|        Section 12.11 | Participants                                                        | 82 |
|        Section 12.12 | Assignments                                                         | 82 |
|        Section 12.13 | Amendments                                                          | 84 |
|        Section 12.14 | Headings                                                            | 85 |
|        Section 12.15 | Costs      and Expenses; Indemnification                            | 85 |
|        Section 12.16 | Set-off                                                             | 86 |
|        Section 12.17 | Entire      Agreement                                               | 87 |
|        Section 12.18 | Governing      Law                                                  | 87 |
|        Section 12.19 | Severability      of Provisions                                     | 87 |
|        Section 12.20 | Excess      Interest                                                | 87 |
|        Section 12.21 | Construction                                                        | 88 |
|        Section 12.22 | Lender’s      and L/C Issuer’s Obligations Several | 88 |
|        Section 12.23 | Submission      to Jurisdiction; Waiver of Jury Trial               | 88 |
|        Section 12.24 | USA      Patriot Act                                                | 88 |
|        Section 12.25 | No      Modification; No Discharge; Survival of Claims              | 88 |
|        Section 12.26 | Pre-Petition      BMO Loan Documents                                | 89 |
|        Section 12.27 | Bankruptcy      Code Waivers                                        | 89 |

----

|        Section 12.28 | Validation      of Liens | 89 |
|---------------------------|--------------------------|----|
|        Section 12.29 | Confidentiality          | 89 |
|        Section 12.30 | Disclosure               | 90 |

----

----

----

| Month     | Number      of days after the last day of the month |
|-----------|-----------------------------------------------------|
| October   | 60                                                  |
| November  | 30                                                  |
| December  | 45                                                  |
| January   | 45                                                  |
| February  | 30                                                  |
| March     | 45                                                  |
| April     | 45                                                  |
| May       | 30                                                  |
| June      | 45                                                  |
| July      | 45                                                  |
| August    | 30                                                  |
| September | 90                                                  |

| to      the Borrower or any Guarantor: Pilgrim’s      Pride Corporation4845      US Highway 271 NPittsburg,      Texas 75686Attention:Chief      Financial OfficerTelephone:903-434-1505Telecopy:972-290-8950 | to      the DIP Agent and L/C Issuer : Bank      of Montreal115      South LaSalle StreetChicago,      Illinois  60603Attention:Barry      StrattonTelephone:(312)      461-7910Telecopy:(312)      461-7958 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                     |                                                                                                                                                                                                                             |
| with      copy to (which shall not constitute notice):                                                                                                                                                                   |                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                     |                                                                                                                                                                                                                             |
| Weil,      Gotshal & Manges LLP200      Crescent Court, Suite 300Dallas,      Texas 75201-6950Attention:Angela      L. FontanaTelephone:214-746-7895Telecopy:214-746-7777                                            |                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                     |                                                                                                                                                                                                                             |
| with      copy to (which shall not constitute notice):                                                                                                                                                                   |                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                     |                                                                                                                                                                                                                             |
| Baker      & McKenzie LLP2300      Trammell Crow Center2001      Ross AvenueDallas,      Texas 75201Attention:Crews      LottTelephone:(214)      978-3042Telecopy:(214)      978-3099                               |                                                                                                                                                                                                                             |

----

|   | “Borrower” |
|--------|------------------------|

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

|   | By      /s/ Richard A.      Cogdill |
|--------|-------------------------------------|

|   | Its      Chief Financial Officer, Secretary andTreasurer |
|--------|----------------------------------------------------------|

|   |  “Guarantors” |
|--------|--------------------------------|

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

|   | By      /s/ Richard A.      Cogdill |
|--------|-------------------------------------|

|   | Its      Chief Financial Officer, Secretary andTreasurer |
|--------|----------------------------------------------------------|

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

|   | By      /s/ Richard A.      Cogdill |
|--------|-------------------------------------|

|   | Its      Chief Financial Officer, Secretary andTreasurer |
|--------|----------------------------------------------------------|

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

|   | By      /s/ Richard A.      Cogdill |
|--------|-------------------------------------|

|   | Its      Chief Financial Officer, Secretary andTreasurer |
|--------|----------------------------------------------------------|

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

|   | By      /s/ Richard A.      Cogdill |
|--------|-------------------------------------|

|   | Its      Chief Financial Officer, Secretary andTreasurer |
|--------|----------------------------------------------------------|

|   |  “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      Stratton |
|--------|---------------------------------|

|   | Its      Senior Vice President |
|--------|--------------------------------|

|   | “Lenders” |
|--------|-----------------------|

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

|   | By      /s/ Richard J.      Beard |
|--------|-----------------------------------|

|   | Its      Executive Director |
|--------|-----------------------------|

|   | By      /s/ Brett      Delfino |
|--------|--------------------------------|

|   | Its      Executive Director |
|--------|-----------------------------|

|   | U.S.      Bank National Association |
|--------|-------------------------------------|

|   | By/s/ Dale L.      Welke |
|--------|--------------------------|

|   | Its      Vice President |
|--------|-------------------------|

|   | Wells      Fargo Bank National Association |
|--------|--------------------------------------------|

|   | By/s/ Roger      Fruendt |
|--------|--------------------------|

|   | Its      Vice President |
|--------|-------------------------|

|   | ING      Capital LLC |
|--------|----------------------|

|   | By/s/ Dan      Lamprecht |
|--------|--------------------------|

|   | Its      Managing Director |
|--------|----------------------------|

|   | CALYON      New York Branch |
|--------|-----------------------------|

|   | By/s/ Alan      Sidrane |
|--------|-------------------------|

|   | Its      Managing Director |
|--------|----------------------------|

|   | By/s/ John-Charles van      Essche |
|--------|------------------------------------|

|   | Its      Managing Director |
|--------|----------------------------|

|   | Natixis      New York Branch |
|--------|------------------------------|

|   | By      /s/ Vincent      Lauras |
|--------|---------------------------------|

|   | Its      Managing Director |
|--------|----------------------------|

|   | By      /s/ Stephen A.      Jendras |
|--------|-------------------------------------|

|   | Its      Managing Director |
|--------|----------------------------|

|   | SunTrust      Bank |
|--------|--------------------|

|   | By/s/ Janet R.      Naifeh |
|--------|----------------------------|

|   | Its      Senior Vice President |
|--------|--------------------------------|

|   | First      National Bank of Omaha |
|--------|-----------------------------------|

|   | By | /s/ Wade      Horton |   |
|--------|----|----------------------|--------|

|   | Its      Vice President |
|--------|-------------------------|

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