Document:

ex10_49.htm

    

     

    Exhibit
10.49

     

    Pilgrim’s
Pride Corporation

     

    First
Amendment to Limited Duration Waiver Agreement

     

    This
First Amendment to Limited Duration Waiver Agreement (herein, the “Amendment”) is made as
November 25, 2008, by and among Pilgrim’s Pride Corporation, a Delaware
corporation (the “Company”), To-Ricos, Ltd., a
Bermuda company (“To-Ricos”), To-Ricos
Distribution, Ltd., a Bermuda company (“To-Ricos Distribution”; and
together with To-Ricos, the “Foreign Borrowers”; the
Company and the Foreign Borrowers collectively, the “Borrowers” and individually,
a “Borrower”), the Banks party hereto,
and Bank of Montreal, a Canadian chartered bank acting through its Chicago
branch, as administrative agent for the Banks (the “Agent”).

     

    Recitals:

     

            
A.The Borrowers, the Banks and the Agent are parties to that certain Limited
Duration Waiver Agreement dated as of October 26, 2008 (the “Waiver Agreement”).  

     

            
B.Pursuant to the Waiver Agreement the Required Banks agree, among other things,
to waive the Subject Default during the period ending November 26,
2008.

     

            
C.The Borrowers has requested that the Required Banks amend the Waiver Agreement
to extend the Scheduled Waiver Expiration Date and to amend certain other
provisions thereof, and the Required Banks are willing to do so subject to the
terms and conditions set forth herein.

     

    Accordingly,
subject to the satisfaction of the conditions precedent set forth below, the
Borrowers and the Required Banks agree as follows:

     

    Now,
Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

     

    1.Incorporation of Recitals; Defined
Terms.  The Borrowers acknowledge that the Recitals set forth
above are true and correct in all material respects.  The defined
terms in the Recitals set forth above are hereby incorporated into this
Amendment by reference.  All other capitalized terms used herein
without definition shall have the same meanings herein as such terms have in the
Waiver Agreement. 

     

    2.Amounts Owing.  The
Borrowers acknowledge and agree that the principal amount of Loans,
Reimbursement Obligations and L/Cs as of November 25, 2008, is $310,795,372
($0 in Bid Loans, $199,526,529 in Revolving Credit Loans, $0 in Swing Loans, $0
in Bond Reimbursement Obligations, $25,239,727 in the Bond L/C, $0 in
Reimbursement Obligations, and $86,029,116 in issued and currently undrawn
L/Cs), and such amount (together with interest and fees thereon) is justly and
truly owing by the Borrowers without defense, offset or
counterclaim.  

     

            
 3.Amendment of
Section 3 of the Waiver Agreement.  Section 3 of the
Waiver Agreement shall be amended to read as follows:

     

        3.Limited Duration
Waiver.  Subject to the terms and conditions contained in this
Agreement, the Required Banks waive the Subject Default but only for the period
(the “Waiver Period”)
beginning October 28, 2008, and ending at 12:00 Noon, Chicago time, on
December 1, 2008 (the “Scheduled Waiver Expiration
Date”).  The foregoing waiver shall become null and void on the
Scheduled Waiver Expiration Date and from and after the Scheduled Waiver
Expiration Date the Agent and the Banks shall have all rights and remedies
available to them as a result of the occurrence of the Subject Default as though
this waiver had never been granted.

     

             
4.Amendment of the Waiver
Agreement.  The definition of "Subject Default" in the Waiver
Agreement shall be amended to include the Indenture Payment Event (as defined
below).

     

             
5.Acknowledgement of
Liens.  The Company hereby acknowledges and agrees that all
indebtedness, obligations and liabilities of the Borrowers, or any of them,
owing to the Agent and the Banks arising out of or in any manner relating to the
Loan Documents, as well as all Hedging Liability and Funds Transfer and Deposit
Account Liability, shall continue to be secured by liens and security interests
on all of the Collateral pursuant to the Loan Documents heretofore or hereafter
executed and delivered by the Company, and nothing herein
contained shall in any manner affect or impair the priority of the liens and
security interests created and provided for thereby as to the indebtedness,
obligations, and liabilities which would be secured thereby prior to giving
effect to this Amendment. 

     

             
6.Representations and
Warranties.  The Borrowers represent and warrant to the Agent
and the Banks that:

     

        (a)each
Borrower has full right and authority to enter into this Amendment and to
perform all of its obligations under the Waiver Agreement as amended
hereby;

     

        (b)this
Amendment and the performance or observance by the Borrowers of any of the
matters and things herein provided for do not (i) contravene or constitute
a default under any provision of law or any judgment, injunction, order or
decree binding upon any Borrower or any provision of the organizational
documents (e.g.,
certificate or articles of incorporation and by-laws) of any Borrower, or
(ii) contravene or constitute a default under any covenant, indenture or
agreement of or affecting any Borrower or any of its Property;

     

        (c)the obligations of each Borrower and the
Guarantor under the Waiver Agreement as amended hereby are legal, valid, enforceable (except
as enforcement may be limited by equitable principles or by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors’ rights generally) and subsisting and not subject to set-off, defense
(other than payment) or counterclaim; 

     

        (d)no
Potential Default or Event of Default has occurred and is continuing, other than
the Subject Default;

     

        (e)the Company’s indebtedness, obligations
and liabilities to the Agent and the Banks under the Loan Documents constitute
“Designated Senior Indebtedness” as defined in the First Supplemental Indenture
dated as of January 24, 2007, between the Company and Wells Fargo Bank, National
Association, as Trustee, relating to the Company’s 8-3/8% Senior Subordinated Notes due 2017;
and

     

        (f)the
Company has decided that during the Waiver Period as extended by this Amendment
it will not pay any interest on its 8-3/8% Senior Subordinated Notes due 2017
or its 7-5/8% Senior Notes due May-1, 2015 (the "Indenture Payment
Event").

     

             
7.Release.  For value
received, including without limitation, the agreements of the Banks in this
Amendment, each Borrower hereby releases the Agent and each Bank, its current
and former shareholders, directors, officers, agents, employees, attorneys,
consultants, and professional advisors (collectively, the “Released Parties”) of and
from any and all demands, actions, causes of action, suits, controversies, acts
and omissions, liabilities, and other claims of every kind or nature whatsoever,
both in law and in equity, known or unknown, which such Borrower has or ever had
against the Released Parties from the beginning of the world to this date
arising in any way out of the existing financing arrangements between the
Borrowers and the Banks, and each Borrower further acknowledges that, as of the
date hereof, it does not have any counterclaim, set-off, or defense against the
Released Parties, each of which each Borrower hereby expressly
waives.

     

             
8.Waiver Agreement Remains
Effective.  Except as expressly set forth in this Amendment,
the Waiver Agreement and all of the obligations of the Borrowers thereunder, the
rights and benefits of the Agent and Banks thereunder, and the liens and
security interests created thereby remain in full force and
effect.  Without limiting the foregoing, each Borrower agrees to
comply with all of the terms, conditions, and provisions of the Waiver Agreement
except to the extent such compliance is irreconcilably inconsistent with the
express provisions of this Amendment.  This Amendment intended by the
Banks as a final expression of their agreement and is intended as a complete and
exclusive statement of the terms and conditions of this agreement.

     

             
9.Fees and
Expenses.  The Company shall pay on demand all fees and
expenses (including attorneys’ fees) incurred by the Agent and its counsel,
special counsel to the Banks and counsel to each Bank in connection with this
Amendment and the other instruments and documents being executed and delivered
in connection herewith, and all fees and expenses of counsel to the Agent and
special counsel to the Banks with respect to the credit facilities subject to
the Credit Agreement.

     

             
10.Conditions
Precedent.  The effectiveness of this Amendment is subject to
the satisfaction of the following conditions precedent:  

     

        (a)the
Borrowers, the Agent, and the Required Banks shall have executed and delivered
this Amendment, and the Guarantor shall have executed and delivered its
reaffirmation, acknowledgment, and consent in the space provided for that
purpose below, on  or before November __, 2008;

     

        (b)the Agent
shall have received a copy of a fully executed amendment to the CoBank Limited
Duration Waiver extending the waiver under the CoBank Limited Duration Waiver of
any default under  the CoBank Credit Agreement that is analogous to the
Subject Default for a period ending no earlier that the Scheduled Waiver
Expiration Date as extended by this Amendment, which amendment shall not contain
or add to the CoBank Limited Duration Waiver any other terms or provisions that
are not contained in the Waiver Agreement as amended by this Amendment or that
are inconsistent with the terms of the Waiver Agreement as amended by this
Amendment or that are more favorable to the lenders under the CoBank Credit
Agreement than the terms of the Waiver Agreement as amended by this Amendment
are favorable to the Banks, and which otherwise shall be in form and substance
reasonably satisfactory to the Agent, and such amendment to the CoBank Limited
Duration Waiver shall be effective;

     

        (c)the Agent
shall have received a copy of a fully executed amendment to the Fairway Limited Duration Waiver
extending the waiver thereunder of any default under the Receivables Purchase
Agreement that is analogous to the Subject Default for a period ending no
earlier that the Scheduled Waiver Expiration Date as extended by this Amendment,
agreeing to extend the existing amendments to the Amended and Restated
Receivables Purchase Agreement during the Waiver Period and agreeing to continue
to provide credit thereunder during the Waiver Period as extended by this
Amendment, which limited duration waiver shall not contain any other terms or
provisions that are not contained in the Waiver Agreement as amended by this
Amendment or that are inconsistent with the terms of the Waiver Agreement as
amended by this Amendment or that are more favorable to the lenders under the
Receivables Purchase Agreement than the terms of the  Waiver Agreement
as amended by this Amendment are favorable to the Banks, and which otherwise
shall be in form and substance reasonably satisfactory to the Agent, and such
amendment to the Fairway Limited Duration Waiver shall be effective;
and

     

        (d)the
payment of the current legal fees and expenses referred to in Section 8
above.

     

             
11.Miscellaneous.  By
its acceptance hereof, each Borrower hereby represents that it has the necessary
power and authority to execute, deliver, and perform the undertakings contained
herein, and that this Amendment constitutes the valid and binding obligation of
each Borrower enforceable against it in accordance with its
terms.  Any provision of this Amendment held invalid, illegal, or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality, or unenforceability without
affecting the validity, legality, and enforceability of the remaining provision
hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other
jurisdiction.  The parties hereto hereby acknowledge and agree that
this Amendment shall constitute a Loan Document for all purposes of the Credit
Agreement and the other Loan Documents.  Unless otherwise expressly
stated herein, the provisions of the Waiver as amended by this Amendment shall
survive the termination of the Waiver Period as extended by this
Amendment.  This Amendment may be executed in counterparts and by
different parties on separate counterpart signature pages, each of which
constitutes an original and all of which taken together constitute one and the
same instrument.  Delivery of executed counterparts of this Amendment
by telecopy shall be effective as an original.  This Amendment shall
be governed by Illinois law and shall be governed and interpreted on the same
basis as the Waiver Agreement.

     

    [Signature
Pages to Follow]

    
      
        
          2538687
01 02.doc

          1078278/RLC

          DALDMS/652628.1 

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    This
First Amendment to Limited Duration Waiver Agreement is entered into as of the
date and year first above written.

     

    
      	
               
      

            	
              “Borrowers”

            

    

     

    
      	
               
      

            	
              Pilgrim’s
      Pride Corporation

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Chief Financial Officer

            

    

     

    
      	
               
      

            	
              To-Ricos,
      Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Executive Vice President, Treasurer and Assistant
  Secretary

            

    

     

    
      	
               
      

            	
              To-Ricos
      Distribution, Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Executive Vice President, Treasurer and Assistant
  Secretary

            

    

     

    Accepted
and agreed to.

     

    
      	
               
      

            	
              Bank
      of Montreal, as Agent

            

    

     

    
      	
               
      

            	
              By
      /s/ David J.
      Bechstein

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              BMO
      Capital Markets Financing, Inc., individually and as Swing
      Bank

            

    

     

    
      	
               
      

            	
              By
      /s/ David J.
      Bechstein

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              SunTrust
      Bank

            

    

     

    
      	
               
      

            	
              By/s/ Janet R.
      Naifeh

            

    

    
      	
               
      

            	
              Its
      Senior Vice President

            

    

     

    
      	
               
      

            	
              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/ Lina A.
      Garcia

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              Credit
      Suisse, Cayman Islands Branch

            

    

     

    
      	
               
      

            	
              By

            

    

    
      	
               
      

            	
              Its

            

    

     

    
      	
               
      

            	
              By

            

    

    
      	
               
      

            	
              Its

            

    

     

    
      	
               
      

            	
              Bank
      of America N.A.

            

    

     

    
      	
               
      

            	
              By
      /s/ Patrick
      Honey

            

    

    
      	
               
      

            	
              Its
      Senior Vice President

            

    

     

    
      	
               
      

            	
              CALYON
      New York Branch

            

    

     

    
      	
               
      

            	
              By/s/
      illegible

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              By/s/
      illegible

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              Natixis
      New York Branch

            

    

     

    
      	
               
      

            	
              By
      /s/ Vincent
      Lauras

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              By
      /s/ Stephen A.
      Jendra

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

    

     

    
      	
               
      

            	
              JP
      Morgan Chase Bank, N.A.

            

    

     

    
      	
               
      

            	
              By/s/ Stephanie
      Parker

            

    

    
      	
               
      

            	
              Its
      Executive Director

            

    

    

     

    
      	
               
      

            	
              Deutsche
      Bank Trust Company Americas

            

    

     

    
      	
               
      

            	
              By

            

    

    
      	
               
      

            	
              Its

            

    

     

    
      	
               
      

            	
              By

            

    

    
      	
               
      

            	
              Its

            

    

     

    
      	
               
      

            	
              First
      National Bank of Omaha

            

    

     

    
      	
               
      

            	
              By
      /s/ Wade
      Horton

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    Reaffirmation,
Acknowledgement, and Consent of Guarantor

     

    The
undersigned, Pilgrim Interests, Ltd., a Texas limited partnership (the “Guarantor”), has executed
and delivered a Second Amended and Restated Guaranty Agreement dated as of
February 8, 2007 (the “Guaranty”) to the
Banks.  As an additional inducement to and in consideration of the
Banks’ acceptance of the First Amendment to Limited Duration Waiver Agreement
dated as of October 26, 2008 (the “Amendment”), the Guarantor
hereby agrees with the Banks as follows:

     

    1.The
Guarantor consents to the execution of the Amendment by the Borrowers and
acknowledges that this consent is not required under the terms of the Guaranty
and that the execution hereof by the Guarantor shall not be construed to require
the Banks to obtain the Guarantor’s consent to any future amendment,
modification or waiver of any term of the Credit Agreement except as otherwise
provided in said Guaranty.  The Guarantor hereby agrees that the
Guaranty shall apply to all indebtedness, obligations and liabilities of the
Borrowers to the Banks, the Agent and the L/C Issuers under the Credit
Agreement. The Guarantor further agrees that the Guaranty shall be and remain in
full force and effect.

     

    2.All
terms used herein shall have the same meaning as in the Amendment.

     

    Dated as
of November 25, 2008.

    
      
        
          DALDMS/652628.1

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              Pilgrim
      Interests, Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Lonnie A.
      Pilgrim

            

    

    
      	
               
      

            	
              Lonnie
      A. Pilgrim, as trustee of the Lonnie A. Pilgrim 1998 Revocable Trust
      created by agreement dated September 9, 1998, as
    amended

            

    

    
      	
               
      

            	
              Its
      General Partner

            

    

     

    
      	
               
      

            	
              By
      /s/ Lonnie Ken
      Pilgrim

            

    

    
      	
               
      

            	
              Lonnie
      Ken Pilgrim

            

    

    
      	
               
      

            	
              Its
      General Partner

            

    

     

    
      	
               
      

            	
              Who
      Represent and Warrant that they have Authority to Bind the
      Partnership

            

    

    

     

    
      	
               
      

            	
              Pilgrim
      Interests, Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Lonnie A.
      Pilgrim

            

    

    
      	
               
      

            	
              Lonnie
      A. Pilgrim, as trustee of the Lonnie A. Pilgrim 1998 Revocable Trust
      created by agreement dated September 9, 1998, as
    amended

            

    

    
      	
               
      

            	
              Its
      General Partner

            

    

     

    
      	
               
      

            	
              By
      /s/ Lonnie Ken
      Pilgrim

            

    

    
      	
               
      

            	
              Lonnie
      Ken Pilgrim

            

    

    
      	
               
      

            	
              Its
      General Partner

            

    

     

    
      	
               
      

            	
              Who
      Represent and Warrant that they have Authority to Bind the
      Partnership

            

    

    

    

    
      
        
          Signature
Page

          Pilgrim’s
Pride Corporation

          Reaffirmation,
Acknowledgement, and Consent of Guarantor attached to

          First
Amendment to Limited Duration Waiver Agreement

          DALDMS/652628.1ex10_50.htm

    Exhibit
10.50

    

    Pilgrim’s
Pride Corporation

    First
Amendment to Limited Duration Waiver Agreement

     

    This
First Amendment to Limited Duration Waiver Agreement (herein, the “Amendment”) is made
as of November 25, 2008, by and among PILGRIM’S PRIDE CORPORATION, a Delaware
corporation (the “Servicer”), PILGRIM’S PRIDE FUNDING
CORPORATION, a Delaware limited liability company (the “Seller” and, together with the
Servicer, the “Seller
Parties”), the PURCHASERS AND PURCHASER AGENTS ON THE SIGNATURE PAGES
HERETO (collectively, the “Purchasers”) and BMO
CAPITAL MARKETS CORP., as administrator (in such capacity, together with its
successors and assigns, the “Administrator” and,
collectively with the Purchasers, the “Waiving
Parties”).

     

    Recitals:

     

            
A.The Seller, the Servicer, the Purchasers and the Administrator are parties to
that certain Limited Duration Waiver Agreement dated as of October 26, 2008 (the
“Waiver
Agreement”). 

     

            
B.Pursuant to the Waiver Agreement, the Waiving Parties agreed, among other
things, to waive the Subject Default during the period ending November 26,
2008.

     

            
C.The Seller Parties have requested that the Waiving Parties amend the Waiver
Agreement to extend the Scheduled Waiver Expiration Date and to amend certain
other provisions thereof, and the Waiving Parties are willing to do so subject
to the terms and conditions set forth herein.

     

    Accordingly, subject to the
satisfaction of the conditions precedent set forth below, the Seller Parties and
the Waiving Parties agree as follows:

     

    Now,
Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

     

    1.Incorporation of Recitals; Defined
Terms.  The Seller Parties acknowledge that the Recitals set
forth above are true and correct in all material respects.  The
defined terms in the Recitals set forth above are hereby incorporated into this
Amendment by reference.  All other capitalized terms used herein
without definition shall have the same meanings herein as such terms have in the
Waiver Agreement. 

     

    2.Amounts Owing.  The
Seller Parties acknowledge and agree that there are amounts outstanding,
including Investment and Discount in respect of the Participation and other
amounts, that are payable by the Originator, the Seller or the Servicer, as
applicable, to the Purchasers and the Administrator (and any other Indemnified
Party and Affected Person under the Transaction Documents, as applicable), and
such amounts (together with interest and fees thereon) are justly and truly
owing by the Seller without defense, offset or
counterclaim.  

     

            
3.Amendments to the Waiver
Agreement.

     

    (a)Section 3 of the Waiver Agreement
shall be amended to read as follows:

     

    3.  Limited Duration
Waiver.  Subject to the terms and conditions contained in this
Agreement, the Waiving Parties waive the Subject Default but only for the period
(the “Waiver Period”)
beginning October 28, 2008, and ending at 12:00 noon, Chicago time, on December
1, 2008 (the “Scheduled Waiver
Expiration Date”).  The foregoing waiver shall become null and
void on the Scheduled Waiver Expiration Date and from and after the Scheduled
Waiver Expiration Date the Administrator and the Purchasers shall have all
rights and remedies available to them as a result of the occurrence of the
Subject Default as though this waiver had never been granted.

     

    (b)The
definition of “Subject Default” in the Waiver Agreement shall be amended to
include the Indenture Payment Event (as defined below).

     

    4.[Reserved].

     

            
5.Acknowledgement of
Liens.  The Seller Parties hereby acknowledge and agree that
all indebtedness, obligations and liabilities of the Seller owing to the
Administrator and the Purchasers arising out of or in any manner relating to the
Transaction Documents shall continue to be secured by liens and security
interests on all of the Receivables, Contracts and Related Security and all
other collateral pursuant to the Transaction Documents heretofore or hereafter
executed and delivered by the Seller or the Servicer, and nothing herein
contained shall in any manner affect or impair the priority of the liens and
security interests created and provided for thereby as to the indebtedness,
obligations, and liabilities which would be secured thereby prior to giving
effect to this Amendment. 

     

            
6.Representations and
Warranties.  Each of the Seller Parties represents and warrants
to the Administrator and the Purchasers that:

     

        (a)each
Seller Party has full right and authority to enter into this Amendment and to
perform all of its obligations under the Waiver Agreement as amended
hereby;

     

        (b)this
Amendment and the performance or observance by the Seller Parties of any of the
matters and things herein provided for do not (i) contravene or constitute
a default under any provision of law or any judgment, injunction, order or
decree binding upon any Seller Party or any provision of the organizational
documents (e.g.,
certificate or articles of incorporation and by-laws) of any Seller Party, or
(ii) contravene or constitute a default under any covenant, indenture or
agreement of or affecting any Seller Party or any of its Property;

     

        (c)the obligations of each Seller Party
under the Waiver Agreement as amended hereby are legal, valid, enforceable
(except as enforcement may be limited by equitable principles or by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors’ rights generally) and subsisting and not subject to set-off, defense
(other than payment) or counterclaim;

     

        (d)no
Unmatured Termination Event or Termination Event (other than the Subject
Default) has occurred and is continuing; 

     

        (e)[Reserved];

     

        (f)the
Servicer has decided that during the Waiver Period as extended by this Amendment
it will not make the Indenture Interest Payments (the “Indenture Payment
Event”); and

     

        (g)Each
Seller Party represents and warrants that (i) each of the Lock-Box Accounts and
lock-boxes set forth on Schedule I hereto is subject to a Lock-Box Agreement,
(ii) the Lock-Box Accounts and lock-boxes set forth on Schedule I hereto cover
all of the accounts and lock-boxes into which Obligors are instructed to deposit
Collections and any other amounts related to Receivables and (iii) all Obligors
have been instructed to make payments of all Receivables only to one or more of
the Lock-Box Accounts or lock-boxes set forth on Schedule I hereto.

     

            
9.Agreements. The
Seller Parties further acknowledge and agree that, notwithstanding anything to
the contrary in the Receivables Purchase Agreement or the Waiver Agreement as
amended by this Amendment, the Seller shall not request, and the Purchasers
shall not make, any purchases or reinvestments at any time on or after 12:01
a.m. on December 1, 2008, and any such request or any such purchase or
reinvestment shall constitute a breach by the Seller of the Waiver Agreement as
amended by this Amendment.

     

            
10.Release.  For value
received, including without limitation, the agreements of the Administrator and
the Purchasers in this Amendment, each Seller Party hereby releases the
Administrator, each Purchaser, each Indemnified Party and their respective
current and former shareholders, directors, officers, agents, employees,
attorneys, consultants, and professional advisors (collectively, the “Released Parties”) of and
from any and all demands, actions, causes of action, suits, controversies, acts
and omissions, liabilities, and other claims of every kind or nature whatsoever,
both in law and in equity, known or unknown, which such Seller Party has or ever
had against the Released Parties from the beginning of the world to this date
arising in any way out of the existing financing arrangements between the Seller
Parties, the Administrator and the Purchasers, and each Seller Party further
acknowledges that, as of the date hereof, it does not have any counterclaim,
set-off, or defense against the Released Parties, each of which each Seller
Party hereby expressly waives.

     

            
11.Waiver Agreement Remain
Effective.  Except as expressly set forth in this Amendment,
the Waiver Agreement and all of the obligations of the Seller Parties
thereunder, the rights and benefits of the Administrator and Purchasers
thereunder, and the liens and security interests created thereby remain in full
force and effect.  Without limiting the foregoing, each Seller Party
agrees to comply with all of the terms, conditions, and provisions of the Waiver
Agreement except to the extent such compliance is irreconcilably inconsistent
with the express provisions of this Amendment.  This Amendment is
intended by the Administrator and the Purchasers as a final expression of their
agreement and is intended as a complete and exclusive statement of the terms and
conditions of that agreement.

     

            
12.Fees and
Expenses.  The Seller and the Servicer shall pay on demand all
fees and expenses (including attorneys’ fees) incurred by the Administrator and
its counsel in connection with this Amendment and the other instruments and
documents being executed and delivered in connection herewith, and all fees and
expenses of counsel to the Administrator with respect to the securitization
facility subject to the Receivables Purchase Agreement.

     

            
13.Conditions
Precedent.  The effectiveness of this Amendment is subject to
the satisfaction of the following conditions precedent:  

     

    (a)the
Seller Parties, the Administrator, and the Purchasers shall have executed and
delivered this Amendment on or before November 26, 2008;

     

    (b)the
Administrator shall have received a copy of a fully executed amendment to the
CoBank Limited Duration Waiver extending the waiver under the CoBank Limited
Duration Waiver of any default under the CoBank Credit Agreement that is
analogous to the Subject Default for a period ending no earlier that the
Scheduled Waiver Expiration Date as extended by this Amendment, which amendment
shall not contain or add to the CoBank Limited Duration Waiver any terms or
provisions that are not contained in the Waiver Agreement as amended by this
Amendment materially adverse to the Administrator and the Purchasers or that
are, in any material respect, more favorable to the lenders under the CoBank
Credit Agreement than the terms of the Waiver Agreement as amended by this
Amendment are favorable to the Administrator and the Purchasers, and which
otherwise shall be in form and substance reasonably satisfactory to the
Administrator, and such amendment to the CoBank Limited Duration Waiver shall be
effective;

     

    (c)the
Administrator shall have received a copy of a fully executed amendment to the
Credit Agreement Limited Duration Waiver extending the waiver under the Credit
Agreement Limited Duration Waiver of any default under the Credit Agreement that
is analogous to the Subject Default for a period ending no earlier that the
Scheduled Waiver Expiration Date as extended by this Amendment, which amendment
shall not contain or add to the Credit Agreement Limited Duration Waiver any
terms or provisions that are not contained in the Waiver Agreement as amended by
this Amendment materially adverse to the Administrator and the Purchasers or
that are, in any material respect, more favorable to the lenders under the
Credit Agreement than the terms of the Waiver Agreement as amended by this
Amendment are favorable to the Administrator and the Purchasers, and which
otherwise shall be in form and substance reasonably satisfactory to the
Administrator, and such amendment to the Credit Agreement Limited Duration
Waiver shall be effective; and

     

    (d)the
payment of the current legal fees and expenses referred to in Section 12
above.

     

            
14.Miscellaneous.  By
its acceptance hereof, each Seller Party hereby represents that it has the
necessary power and authority to execute, deliver, and perform the undertakings
contained herein, and that this Amendment constitutes the valid and binding
obligation of such Seller Party enforceable against it in accordance with its
terms.  Any provision of this Amendment held invalid, illegal, or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality, or unenforceability without
affecting the validity, legality, and enforceability of the remaining provisions
hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other
jurisdiction.  The parties hereto hereby acknowledge and agree that
this Amendment shall constitute a Transaction Document for all purposes of the
Receivables Purchase Agreement and the other Transaction
Documents.  Unless otherwise expressly stated herein, the provisions
of the Waiver Agreement as amended by this Amendment shall survive the
termination of the Waiver Period as extended by this Amendment.  This
Amendment may be executed in counterparts and by different parties on separate
counterpart signature pages, each of which constitutes an original and all of
which taken together constitute one and the same instrument.  Delivery
of executed counterparts of this Amendment by telecopy shall be effective as an
original.  This Amendment shall be governed by Texas law and shall be
governed and interpreted on the same basis as the Waiver Agreement.

     

    [Signature
Pages to Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    This
First Amendment to Limited Duration Waiver Agreement is entered into as of the
date and year first above written.

     

    
      	
               
      

            	
              Pilgrim’s
      Pride Corporation, as Servicer

            

    

     

    

    By:/s/ Richard A.
Cogdill                                                                   

    Name:
Richard A. Cogdill

    Title:
Chief Financial Officer, Secretary and Treasurer

     

    
      	
               
      

            	
              Pilgrim’s
      Pride Funding Corporation, as
Seller

            

    

     

    

    By:/s/ Richard A.
Cogdill                                                                   

    Name:
Richard A. Cogdill

    Title:
Chief Financial Officer, Secretary and Treasurer

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Accepted
and agreed to:

     

    
      	
               
      

            	
              BMO
      Capital Markets Corp., as
Administrator

            

    

     

    

    By:    /s/ Brian
Zaban

    Name:
Brian Zaban

    Title:   Managing
Director

     

    

     

    
      	
               
      

            	
              BMO
      Capital Markets Corp., as Purchaser
Agent

            

    

     

    

    By:    /s/ Brian
Zaban

    Name:
Brian Zaban

    Title:   Managing
Director

     

    

     

    
      	
               
      

            	
              Fairway
      Finance Company, LLC, as Uncommitted Purchaser and as Related Committed
      Purchaser

            

    

     

    

    By:    /s/ Lori
Gebron

    Name:
Lori Gebron

    Title:   Vice
President

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