Document:

Pilgrim's Pride Corp. 2005 Deferred Compensation Plan

     

    
      
        EXHIBIT
          10.1

      

    

    PILGRIM’S
      PRIDE CORPORATION

    2005
      DEFERRED COMPENSATION PLAN

    AMENDED
      AND RESTATED

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          TABLE
            OF CONTENTS

           

          Page

           

        

      

    

    
      ARTICLE
        I
        TITLE AND
        DEFINITIONS                                                                                                                                                                                                                                                         
1

    

    
      	 	
              1.1

            	
              Definitions.                                                                                                                                         
                

            	  1 
              

    

     

    
      ARTICLE
        II PARTICIPATION

    

    
      	 	
              2.1

            	
              Enrollment.                                                                                                                                                      
                

            	  7 
              

    

    
      	 	
              2.2

            	
              Participation.                                                                                                                                                                                                                                               
                

            	  
              7     

    

     

    
      ARTICLE
        III DEFERRAL AND INVESTMENT ELECTIONS                                                                 8
        

    

    
      	 	
              3.1

            	
              Elections
                to Defer
                Compensation.                                                           
                

            	 8

    

    
      	 	
              3.2

            	
              Investment
                Elections.                                                                                
                

            	 9

    

     

    
      ARTICLE
        IV DEFERRAL ACCOUNTS AND TRUST
        FUNDING                                                                                                                                                                                                             
10

    

    
      	 	
              4.1

            	
              Deferral
                Accounts.                                                                                                                          
                

            	 10

    

    
      	 	
              4.2

            	
              Company
                Contribution
                Account.                                                                                                 
                

            	 10

    

    
      	 	
              4.3

            	
              Prior
                Plan
                Account.                                                                                                                           
                

            	 11

    

    
      	 	
              4.4

            	
              Trust
                Funding.                                                                                                                                 
                

            	 11

    

     

    
      	
              ARTICLE
                V VESTING

            	                                                                                                                                                                                                                
              13

    

     

    
      ARTICLE
        VI
        DISTRIBUTIONS                                                                                                                                                                                                                                                                       14

    

    
      	 	
              6.1

            	
              Distribution
                of Deferred Compensation and Company
                Contributions.                             
                

            	 14

    

    
      	 	
              6.2

            	
              Hardship
                Distribution.                                                                                                                         
                

            	 16

    

    
      	 	
              6.3

            	
              Taxes.                                                                                                                                              
                

            	 17

    

    
      	 	
              6.4

            	
              Inability
                to Locate
                Participant.                                                                                                             
                

            	 17

    

    
      	 	
              6.5

            	
              Distributions
                from Prior Plan
                Account.                                                                                            
                

            	 17

    

     

    
      ARTICLE
        VII
        ADMINISTRATION                                                                                                                                                                                                                                                                18

    

    
      	 	
              7.1

            	
              The
                Committees.                                                                                                                            
                

            	 18

    

    
      	 	
              7.2

            	
              Committee
                Action.                                                                                                                 
                

            	 18

    

    
      	 	
              7.3

            	
              Powers
                and Duties of the Administrative
                Committee.                                                    
                

            	 18

    

    
      	 	
              7.4

            	
              Powers
                and Duties of the Oversight
                Committee.                                                              
                

            	 19

    

    
      	 	
              7.5

            	
              Construction
                and
                Interpretation.                                                                                        
                

            	 19

    

    
      	 	
              7.6

            	
              Information.                                                                                                                           
                

            	 19

    

    
      	 	
              7.7

            	
              Compensation,
                Expenses and
                Indemnity.                                                                         
                

            	 19

    

    
      	 	
              7.8

            	
              Annual
                Statements.                                                                                                              
                

            	 20

    

    
      	 	
              7.9

            	
              Disputes.                                                                                                                                
                

            	 20

    

    
       

      ARTICLE
        VIII MISCELLANEOUS                                                                                                                                                                                               
         22

    

    
      	 	
              8.1

            	
              Unsecured
                General
                Creditor.                                                                                                    
                

            	 22

    

    
      	 	
              8.2

            	
              Restriction
                Against
                Assignment.                                                                                            
                

            	 22

    

    
      	 	
              8.3

            	
              Withholding.                                                                                                                     
                

            	 22

    

    
      	 	
              8.4

            	
              Amendment,
                Modification, Suspension or
                Termination.                                             
                

            	 22

    

    
      	 	
              8.5

            	
              Governing
                Law.                                                                                                                         
                

            	 23

    

    
      	 	
              8.6

            	
              Receipt
                or
                Release.                                                                                                                      
                

            	 23

    

    
      	 	
              8.7

            	
              Payments
                on Behalf of Persons Under
                Incapacity.                                                              
                

            	 23

    

    
      	 	
              8.8

            	
              Limitation
                of Rights and Employment
                Relationship                                                            
                

            	 23

    

    
      	 	
              8.9

            	
              Severability.                                                                                                                               
                

            	 23

    

    
      	 	
              8.10

            	
              Gender.                                                                                                                                           
                

            	 23

    

    
      	 	
              8.11

            	
              No
                Enlargement of Employee
                Rights.                                                                                     

            	 24

    

    
      	 	
              8.12

            	
              Addresses.                                                                                                                                    
                

            	 24

    

    
      	 	
              8.13

            	
              Interpretation.                                                                                                                             
                

            	 24

    

    
      	 	
              8.14

            	
              No
                Implied Rights or
                Obligations.                                                                                             

            	 24

    

    
      	 	
              8.15

            	
              Participants
                Outside of the United
                States.                                                                             
                

            	 24

    

     

    
      	
              SCHEDULE
                A......

            	                                                                                                                                                                                                                25

    

     

    
      	
              SCHEDULE
                B.....

            	                                                    
                                             
26

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    PILGRIM’S
      PRIDE CORPORATION

    2005
      DEFERRED COMPENSATION PLAN

    AMENDED
      AND RESTATED

    EFFECTIVE
      AS OF JANUARY 1, 2006

     

    Pilgrim’s
      Pride Corporation, a Delaware corporation (the “Company”) has set forth its
      desire to establish this Deferred Compensation Plan (the “Plan”) as an unfunded
      plan for the purpose of providing deferred compensation for a select group
      of
      management or highly compensated employees for purposes of Title I of the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The
      Company has decided to amend the Plan to reflect additional guidance under
      the
      Section 409A of the Internal Revenue Code, including, but not limited to,
      clarifying the making of deferral elections, the effect of revising deferral
      elections and permitting termination distributions prior to Retirement. These
      changes are generally effective retroactive to the original Effective Date
      of
      the Plan.

     

    As
      of
      January 1, 2006, this amended and restated Plan is hereby adopted to read as
      follows:

     

    ARTICLE
      I  

     

    TITLE
      AND DEFINITIONS

     

    
      	1.1  	
              Definitions.

            

    

     

    Whenever
      the following words and phrases are used in this Plan, with the first letter
      capitalized, they shall have the meanings specified below.

     

    (a)  "Account"
      or "Accounts" shall mean the Deferral Account and the Company Contribution
      Account and any Prior Plan Account.

     

    (b)  “Administrative
      Committee” shall mean the Administrative Committee appointed by the Board to
      administer the Plan in accordance with Article VII.

     

    (c)      
      "Base Salary" shall mean a Participant's annual base salary, excluding bonus,
      commissions, incentive and all other remuneration for services rendered to
      Company and a Participating Company and prior to reduction for any salary
      contributions to a plan established pursuant to Section 125 of the Code, Section
      132(f) of the Code or qualified pursuant to Section 401(k) of the
      Code.

     

    (d)      "Beneficiary"
      or "Beneficiaries" shall mean the person or persons, including a trustee,
      personal representative or other fiduciary, last designated in writing by a
      Participant in accordance with procedures established by the Administrative
      Committee to receive the benefits specified hereunder in the event of the
      Participant's death. No beneficiary designation shall become effective until
      it
      is filed with the Administrative Committee. Any 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      designation
        shall be revocable at any time through a written instrument filed by the
        Participant with the Administrative Committee with or without the consent
        of the
        previous Beneficiary. No designation of a Beneficiary other than the
        Participant's spouse shall be valid unless consented to in writing by such
        spouse. If there is no such designation or if there is no surviving designated
        Beneficiary, then the Participant's surviving spouse shall be the Beneficiary.
        If there is no surviving spouse to receive any benefits payable in accordance
        with the preceding sentence, the duly appointed and currently acting personal
        representative of the Participant's estate (which shall include either the
        Participant's probate estate or living trust) shall be the Beneficiary. In
        any
        case where there is no such personal representative of the Participant's
        estate
        duly appointed and acting in that capacity within 90 days after the
        Participant's death (or such extended period as the Administrative Committee
        determines is reasonably necessary to allow such personal representative
        to be
        appointed, but not to exceed 180 days after the Participant's death), then
        Beneficiary shall mean the person or persons who can verify by affidavit
        or
        court order to the satisfaction of the Administrative Committee that they
        are
        legally entitled to receive the benefits specified hereunder. In the event
        any
        amount is payable under the Plan to a minor, payment shall not be made to
        the
        minor, but instead be paid (i) to that person's living parent(s) to act as
        custodian, (ii) if that person's parents are then divorced, and one parent
        is
        the sole custodial parent, to such custodial parent, or (iii) if no parent
        of
        that person is then living, to a custodian selected by the Administrative
        Committee to hold the funds for the minor under the Uniform Transfers or
        Gifts
        to Minors Act in effect in the jurisdiction in which the minor resides. If
        no
        parent is living and the Administrative Committee decides not to select another
        custodian to hold the funds for the minor, then payment shall be made to
        the
        duly appointed and currently acting guardian of the estate for the minor
        or, if
        no guardian of the estate for the minor is duly appointed and currently acting
        within 60 days after the date the amount becomes payable, payment shall be
        deposited with the court having jurisdiction over the estate of the minor.
        Payment by the Company or a Participating Company pursuant to any unrevoked
        Beneficiary designation, or to the Participant's estate if no such designation
        exists, of all benefits owed hereunder shall terminate any and all liability
        of
        the Company and the Participating Company, as applicable.

       

      (e)  "Board
        of
        Directors" or "Board" shall mean the Board of Directors of the
        Company.

       

      (f)  "Bonuses"
        shall mean the bonuses determined as of the last day of the fiscal year of
        the
        Company, and payable only to an Eligible Employee employed by of the Company
        or
        a Participating Company on the first day of the next following Plan
        Year.

       

      (g)  "Code"
        shall mean the Internal Revenue Code of 1986, as amended.

       

      (h)  "Committee"
        shall mean the Administrative Committee and the Oversight Committee appointed
        by
        the Board to oversee and administer the Plan in accordance with Article
        VII.

       

      (i)  "Company"
        shall mean Pilgrim’s Pride Corporation, a Delaware corporation, or any successor
        thereof, if its successor shall adopt this Plan.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    
               
  (j)  "Company
        Contribution Account" shall mean the bookkeeping account maintained by the
        Company or any Participating Company for each Participant that is credited
        with
        an amount equal to the Company Contribution Amount, if any, and earnings
        and
        losses on such amounts pursuant to Section 4.2.

       

      (k)  "Company
        Contribution Amount" shall mean the amount of the Company’s or a Participating
        Company’s matching contribution, if any, for a Participant under the Pilgrim’s
        Pride Retirement Savings Plan that is required to be reduced for a Plan Year
        pursuant to the operation of Code Section 401(m) and any other nonelective
        contributions allocable to a Participant that are made by the Company or
        a
        Participating Company.

       

      (l)  "Compensation"
        shall include a Participant’s Base Salary plus Bonuses paid in a Plan
        Year.

       

      (m)  "Deferral
        Account" shall mean the bookkeeping account maintained by the Administrative
        Committee for each Participant that is credited with amounts equal to (i)
        the
        portion of the Participant's Compensation that he or she elects to defer
        pursuant to Section 3.1, (ii) the amount of any Participant deferrals under
        the
        Pilgrim’s Pride Retirement Savings Plan that is required to be reduced for a
        Plan Year pursuant to the operation of Code Section 401(k) and that may be
        deferred under this Plan in accordance with Code Section 409A, and (iii)
        earnings and losses pursuant to Section 4.1.

       

      (n)  "Disability"
        shall mean a Participant has, by reason of any medically determinable physical
        or mental impairment which can be expected to last for a continuous period
        of
        not less than twelve (12) months, received at least three months of salary
        continuation benefits under the Company’s or the Participating Company’s
        long-term disability plan. This definition shall be interpreted consistent
        with
        Code Section 409A(a)(2)(C).

       

      (o)  "Distributable
        Amount" shall mean the vested balance in the Participant's Deferral Account
        and
        Company Contribution Account.

       

      (p)  "Early
        Distribution" shall mean an election by Participant in accordance with Section
        6.2 to receive a withdrawal of amounts from his or her Deferral Account and
        Company Contribution Account prior to the time at which such Participant
        would
        otherwise be entitled to such amounts.

       

      (q)  "Effective
        Date" shall mean January 1, 2005 and covers amounts subject to deferral
        elections in 2004 and thereafter which would otherwise have been payable
        on or
        after January 1, 2005.

       

                     
        (r)      "Eligible Employee" shall mean any Employee
        whose Compensation for a Plan Year is expected during the Initial Election
        Period (and each subsequent election period) to be equal to or greater than
        the
        dollar amount used to determine if an employee is highly compensated within
        the
        meaning of Code Section 414q(1)(B)(i), as adjusted. In addition, an “Eligible
        Employee” shall mean a former employee of a Participating Company for whom a
        Prior Plan Account is established. An employee whose Initial Election Period
        occurs after the first day of a Plan Year shall be an Eligible Employee if
        his
        or her Compensation for the remainder of the Plan Year is reasonably expected
        to
        equal or exceed such dollar amount if 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

        
          Compensation
            is annualized. If, however, the actual Compensation of a Participant
            is less
            than such amount for a Plan Year, then such Participant shall not be
            an Eligible
            Employee for the next following Plan Year. In addition, the following
            Employees
            shall not be Eligible Employees:

           

          (i)  Any
            Employee who is a nonresident alien and who receives no earned income
            (within
            the meaning of Code Section 911(d)(2)) from the Company or any
            Participating Company which constitutes income from sources within the
            United
            States (within the meaning of Code Section 861(a)(3)), unless the Employee
            is within a group or classification of nonresident alien Employees designated
            as
            eligible to participate in the Plan by the Board of Directors;

           

          (ii)  Any
            Employee who is employed on a temporary basis, is a leased employee,
            or an
            independent contractor; and

           

          (iii)  Any
            person who is not classified by the Company or any Participating Company
            on its
            payroll records as an Employee under Code Section 3121(d) (including, but
            not limited to, a person classified by the Company or any Participating
            Company
            as an independent contractor, a non-employee consultant or as an employee
            of any
            other entity), even if such classification is determined to be erroneous,
            or is
            retroactively revised by a governmental agency, by court order or as
            a result of
            litigation, or otherwise. In the event the classification of a person
            who was
            excluded from the definition of Eligible Employee under the preceding
            sentence
            is determined to be erroneous or is retroactively revised, the person
            shall
            nonetheless continue to be excluded from treatment as an Eligible Employee
            for
            all periods prior to the date the Company or any Participating Company
            specifically determines for purposes of eligibility to participate in
            the Plan
            that the classification of the person was erroneous or should be
            revised.

           

          (s)  “Employee”
            shall mean each person currently employed as a regular employee of the
            Company
            or any Participating Company and solely for the purpose of maintaining
            a Prior
            Plan Account, any person formerly employed by a Participating
            Company.

           

          (t)  "Fund"
            or
            "Funds" shall mean one or more of the investment funds selected by the
            Oversight
            Committee pursuant to Section 3.2(b).

           

          (u)  "Hardship
            Distribution" shall mean a severe financial hardship to the Participant
            resulting from an illness or accident of the Participant or of his or
            her spouse
            or dependent (as defined in Code Section 152(a)), loss of a Participant's
            property due to casualty, or other similar or extraordinary and unforeseeable
            circumstances arising as a result of events beyond the control of the
            Participant. The circumstances that would constitute an unforeseeable
            emergency
            will depend upon the facts of each case, but, in any case, a Hardship
            Distribution may not be made to the extent that such hardship is or may
            be
            relieved (i) through reimbursement or compensation by insurance or otherwise,
            or
            (ii) by liquidation of the Participant's assets, to the extent the liquidation
            of assets would not itself cause severe financial hardship.

           

          (v)  "Initial
            Election Period" shall mean the 30-day period prior to the Effective
            Date of the
            Plan, or the 30-day period following the time an Employee shall be designated
            by
            the Company or a Participating Company as an Eligible Employee.

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

            
              (w)  "Interest
                Rate" shall mean, for each Fund, an amount equal to the net gain
                or loss on the
                assets of such Fund during each business day.

               

              (x)  “Key
                Employee” means a “key employee” as defined in Code Section 416(i) without
                regard to paragraph 5 thereof.

               

              (y)  “Oversight
                Committee” shall mean the Oversight Committee appointed by the Board to oversee
                the Plan in accordance with Article VII.

               

              (z)  "Participant"
                shall mean any Eligible Employee who becomes a Participant in this
                Plan in
                accordance with Article II.

               

              (aa)  “Participating
                Company” shall include any corporation that is included in a controlled group
                of
                corporations within the meaning of Code Section 414(b) that includes the
                Company, and any trade or business that is under common control with
                the Company
                within the meaning of Code Section 414(c) but only if the Board of
                Directors of the Company permits such entity to participate in the
                Plan and the
                board of the Participating Company adopts this Plan. Participating
                Companies and
                the dates as of which they adopt the Plan shall be identified on
                Schedule A,
                attached hereto.

               

              (bb)  "Payment
                Date" shall mean the date as soon as practicable following such Participant's
                Termination in the case of distributions without a Scheduled Withdrawal
                Date,
                but no later than the end of the calendar year in which the Participant’s
                Termination occurred or, if later, the 15th day of the third calendar
                month
                following the Participant’s Termination. In the case of a Scheduled Withdrawal
                Date, the Payment Date shall be the date as elected by the Participant
                in
                accordance with Section 6.1 of the Plan.

               

              (cc)  "Plan"
                shall mean the Pilgrim’s Pride Corporation 2005 Deferred Compensation Plan as
                amended from time to time.

               

              (dd)  "Plan
                Year" shall mean the Plan Year beginning January 1, 2005 and ending
                December 31,
                2005. Each subsequent Plan Year shall begin on January 1 and end
                on December
                31.

               

              (ee)  “Prior
                Plan Account” shall mean the bookkeeping account maintained by the
                Administrative Committee for each Participant that is credited with
                amounts
                equal to ( i) the accrued liability for benefits under any nonqualified
                plan of
                a Participating Company that is merged with or transferred to this
                Plan with the
                permission of the Board of Directors of the Company, and (ii) earnings
                and
                losses pursuant to Section 4.3.

               

              (ff)  “Retirement”
                shall mean the termination of employment with the Company or a Participating
                Company, as applicable, for any reason, other than death or Disability,
                on or
                after the Participant’s 55th
                birthday, provided, however, that, to the extent Retirement is treated
                as a
                separation from service under Code Section 409A(a)(2)(A), in the
                case of a Key
                Employee, Retirement for purposes of the Plan shall not be earlier
                than six (6)
                months following the Participant’s separation from service as determined
                pursuant to Treasury Regulations issued under Code Section
                409A(a)(2)(A).

              
                
                  
                  

                

                
                  5

                  
                    

                  

                

                
                  
                  

                

                
                             (gg)  "Scheduled
                    Withdrawal Date" shall mean the distribution date elected by
                    the Participant for
                    an in-service withdrawal of amounts from such Accounts deferred
                    in a given Plan
                    Year, and earnings and losses attributable thereto, as set forth
                    on the election
                    form for such Plan Year.

                   

                  (hh)  “Termination”
                    means the date of a Participant’s separation from service including Retirement,
                    with the Company and any Participating Company, provided that,
                    in the case of a
                    Key Employee, Termination other than as a result of death or
                    Disability shall be
                    deemed to be the date six (6) months following separation from
                    service as
                    determined pursuant to Treasury Regulations issued under Code
                    Section
                    409A(a)(2)(A).

                   

                  (ii)  "Trust"
                    shall mean the Pilgrim’s Pride Corporation Deferred Compensation Plan
                    Trust.

                   

                  (jj)  "Trustee"
                    shall mean Wells Fargo Bank (Texas) N.A.

                   

                  (kk)  “Years
                    of
                    Service” shall mean a “year of service” as such term is defined in the Pilgrim’s
                    Pride Retirement Savings Plan as in effect January 1, 2005, as
                    amended from time
                    to time.

                

              

            

          

        

      

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      ARTICLE
        I  

       

      PARTICIPATION

       

      
        	1.1  	
                Enrollment.

              

      

       

      An
        Eligible Employee shall become a Participant in the Plan by completing the
        requirements as set forth below:

       

      (a)  electing
        to defer a portion of his or her Compensation in accordance with
        Section 3.1;

       

      (b)  completing
        an investment preference form as set forth in Section 3.2;

       

      (c)  filing
        a
        life insurance application form along with his or her deferral election form
        or
        investment preference form; and

       

      (d)  complying
        with such medical underwriting requirements as determined by the life insurance
        carrier selected by the Company. 

       

      
        	2.2  	
                Participation.

              

      

       

      An
        Eligible Employee who completes the requirements of the preceding
        Section 2.1 shall commence participation in this Plan as of the first day
        of the month in which Compensation is deferred, a Company Contribution Amount
        is
        credited or a Prior Plan Account is established, whichever occurs first.
        In the
        event it is determined by the Committee that a proposed life insurance policy
        for a Participant cannot be obtained in a cost efficient manner after medical
        underwriting requirements have been met, no policy will be obtained.
        Notwithstanding any provision to the contrary, if it is determined or reasonably
        believed, based on a judicial or administrative determination or an opinion
        of
        Company's legal counsel that a Plan Participant is not an Eligible Employee
        following his or her initial enrollment, such individual shall cease to be
        a
        Participant and, to the extent permitted by Code Section 409A, his or her
        Distributable Amount shall be paid to him or her in a lump sum as soon as
        practicable after the determination is made that he or she is not an Eligible
        Employee.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    ARTICLE
      I  

     

    DEFERRAL
      AND INVESTMENT ELECTIONS

     

    
      	3.1  	
              Elections
                to Defer Compensation.

            

    

     

    (a)  Initial
      Election Period.
      Subject
      to the provisions of Article II, each Eligible Employee may elect to defer
      a
      portion of his or her Compensation by filing with the Administrative Committee
      an election that conforms to the requirements of this Section 3.1, on a form
      provided by the Administrative Committee, no later than the last day of his
      or
      her Initial Election Period.

     

    (b)  General
      Rule.
      The
      amount of Compensation which an Eligible Employee may elect to defer is limited
      to such Compensation earned on or after the time at which the Eligible Employee
      elects to defer in accordance with Section 3.1(a) and shall be a flat dollar
      amount or percentage which shall not exceed 100% of the Eligible Employee's
      Compensation, provided that the total amount deferred by a Participant shall
      be
      limited in any calendar year, if necessary, to satisfy the Participant’s Social
      Security Tax obligation (including Medicare) on the amount of Compensation
      prior
      to any deferral election under this Plan, income tax and employee benefit plan
      withholding requirements as determined in the sole and absolute discretion
      of
      the Administrative Committee.

     

    (c)  Duration
      of Compensation Deferral Election.
      An
      Eligible Employee's initial election to defer Compensation must be made prior
      to
      the Effective Date and is to be effective with respect to Compensation received
      after such deferral election is processed but only through the last day of
      the
      Plan Year. Thereafter, a Participant may commence, renew, increase, decrease
      or
      terminate a deferral election with respect to Compensation for any subsequent
      Plan Year by filing a new election not less than 15 days prior to the beginning
      of the next Plan Year or such earlier date as determined by the Administrative
      Committee, which election shall be effective on the first day of the next
      following Plan Year. In the case of an Employee who becomes an Eligible Employee
      after the Effective Date, such Eligible Employee shall have 30 days from
      the date he or she first becomes an Eligible Employee to make an Initial
      Election with respect to Compensation. Such election shall be effective for
      the
      remainder of the Plan Year, in the event the Plan Year has
      commenced.

     

    (d)  Elections
      other than Elections during the Initial Election Period.
      Subject
      to the limitations of Section 3.1(b) above, any Eligible Employee who failed
      to
      file an initial election or whose prior Compensation deferral election has
      expired may elect to again defer Compensation, by filing an election on a form
      provided by the Administrative Committee to defer Compensation as described
      in
      Sections 3.1(b) and 3.1(c) above. An election to defer Compensation must be
      filed in a timely manner in accordance with Section 3.1(c).

     

              (e)       
      Rescission
      or Modification of Deferral Election.
      As
      permitted under Code Section 409A and the relevant transition rules in Section
      885(f) of the American Jobs Creation Act of 2004 and Treasury Regulations issued
      thereunder a Participant may (i) rescind his or her deferral election by filing
      a rescission election in accordance with the policies and procedures established
      by the Administrative Committee or (ii) modify his deferral election by filing
      a

    
      
        
        

      

      
        8

        
          

        

      

      
        
        
revised
        deferral election on a form provided by the Administrative Committee. A
        Participant’s rescission election shall become effective retroactive to the
        first day of the Plan Year in which the rescission election is made and a
        revised deferral election will become effective on the first pay period
        following the date the election is implemented in the Company’s or the
        Participating Company’s payroll system. Once a rescission election is filed with
        the Administrative Committee, the Participant will be unable to elect to
        participate in the Plan until the next following Plan Year.

    

     

    (f)  Ineligibility.
      A
      Participant whose actual Compensation is below the threshold for a Plan Year
      shall cease to be an Eligible Employee for the next following Plan Year, and
      any
      election to defer Compensation for such Plan Year shall be null and void unless,
      in the Administrative Committee’s sole and exclusive determination, the
      Participant is likely to be an Eligible Employee in such succeeding Plan
      Year.

     

    (g)  Irrevocable
      Election.
      Except
      as permitted under paragraph (e) above, once made Compensation deferral
      elections shall remain in force for the applicable Plan Year unless the
      Participant ceases to be an Eligible Employee, in which case contributions
      made
      while an Eligible Employee shall remain in the Plan until distribution as
      elected in accordance with Article VI.

     

    
      	3.2  	
              Investment
                Elections.

            

    

     

    (a)  At
      the
      time of making the deferral elections described in Section 3.1, and effective
      with the establishment of a Prior Plan Account for a Participant, the
      Participant shall select, on a form provided by the Oversight Committee, from
      among the types of Funds selected by the Oversight Committee in which the
      Participant's Account will be deemed to be invested in for purposes of
      determining the amount of earnings or losses to be credited to that Account.
      In
      making the selection pursuant to this Section 3.2, the Participant may specify
      that all or any multiple of his or her Account be deemed to be invested, in
      whole percentage increments, in one or more of the Funds provided under the
      Plan
      as communicated from time to time by the Oversight Committee. A Participant
      may
      change the selection made under this Section 3.2 by following such procedures
      and formats as the Administrative Committee shall authorize. If a Participant
      fails to elect a type of Fund under this Section 3.2, he or she shall be deemed
      to have elected the money market type of Fund.

     

    (b)  Although
      the Participant may designate the type of investments, the Committee shall
      not
      be bound by such designation. The Oversight Committee shall select from time
      to
      time, in its sole and absolute discretion, commercially available investments
      of
      each of the types communicated by the Oversight Committee to the Participant
      pursuant to Section 3.2(a) above, which shall to be the Funds. The Interest
      Rate
      of each such commercially available investment Fund shall be used to determine
      the amount of earnings or losses to be credited to Participant's Account under
      Article IV.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    ARTICLE
      I  

     

    DEFERRAL
      ACCOUNTS AND TRUST FUNDING

     

    
      	4.1  	
              Deferral
                Accounts.

            

    

     

    The
      Administrative Committee shall establish and maintain a Deferral Account for
      each Participant under the Plan. Each Participant's Deferral Account shall
      be
      further divided into separate subaccounts ("Fund subaccounts"), each of which
      corresponds to a Fund elected by the Participant pursuant to Section 3.2(a).
      A
      Participant's Deferral Account shall be credited as follows:

     

    (a)  On
      the
      fifth business day after amounts are withheld and deferred from a Participant's
      Compensation, the Administrative Committee shall credit the Fund subaccounts
      of
      the Participant's Deferral Account with an amount equal to Compensation deferred
      by the Participant in accordance with the Participant's election under Section
      3.2(a); that is, the portion of the Participant's deferred Compensation that
      the
      Participant has elected to be deemed to be invested in a certain type of Fund
      shall be credited to the Fund subaccount corresponding to that
      Fund;

     

    (b)  Each
      business day, each Fund subaccount of a Participant's Deferral Account shall
      be
      credited with earnings or losses in an amount equal to that determined by
      multiplying the balance credited to such Fund subaccount as of the prior day
      plus contributions credited that day to the Fund subaccount by the Interest
      Rate
      for the corresponding fund selected by the Oversight Committee pursuant to
      Section 3.2(b).

     

    (c)  In
      the
      event that a Participant elects for a given Plan Year’s deferral of Compensation
      to have a Scheduled Withdrawal Date, all amounts attributed to the deferral
      of
      Compensation for such Plan Year shall be accounted for in a manner which allows
      separate accounting for the deferral of Compensation and investment gains and
      losses associated with such Plan Year’s deferral of Compensation.

     

    
      	4.2  	
              Company
                Contribution Account.

            

    

     

    The
      Administrative Committee shall establish and maintain a Company Contribution
      Account for each Participant under the Plan. Each Participant's Company
      Contribution Account shall be further divided into separate Fund subaccounts
      corresponding to the Fund selected by the Participant pursuant to Section
      3.2(a). A Participant's Company Contribution Account shall be credited as
      follows:

     

    (a)  On
      the
      fifth business day after a Company Contribution Amount is made, the
      Administrative Committee shall credit the Fund subaccounts of the Participant's
      Company Contribution Account with an amount equal to the Company Contribution
      Amount, if any, which the Participant selected to be deemed to be invested
      in a
      certain type of Fund shall be credited to the corresponding investment Fund
      subaccount; and

     

                                   (b)      
      Each business day, each Fund subaccount of a Participant's Company Contribution
      Account shall be credited with earnings or losses in an amount equal to that
      

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    determined
      by multiplying the balance credited to such Fund subaccount as of the prior
      day
      plus contributions credited that day to the Fund subaccount by the Interest
      Rate
      for the corresponding Fund selected by the Oversight Committee pursuant to
      Section 3.2(b).

     

    
      	4.3  	
              Prior
                Plan Account.

            

    

     

    The
      Administrative Committee shall establish and maintain a Prior Plan Account
      for
      each Participant under the Plan whose benefit under this Plan includes amounts
      accrued under the prior nonqualified deferred compensation plan of a
      Participating Company, to the extent permitted by the Board. Each Participant's
      Prior Plan Account shall be further divided into Fund subaccounts, each of
      which
      corresponds to a Fund elected by the Participant pursuant to Section 3.2(a).
      A
      Participant's Prior Plan Account shall be credited as follows:

     

    (a)  On
      the
      fifth business day after accrued benefits are assumed by this Plan, the
      Administrative Committee shall credit the Fund subaccounts of the affected
      Participant's Prior Plan Account with an amount equal to such accrued benefits
      in accordance with the Participant's election under Section 3.2(a); that is,
      the
      portion of the Participant's prior plan accrued benefit that the Participant
      has
      elected to be deemed to be invested in a certain type of Fund shall be credited
      to the Fund subaccount corresponding to that Fund;

     

    (b)  Each
      business day, each Fund subaccount of a Participant's Prior Plan Account shall
      be credited with earnings or losses in an amount equal to that determined by
      multiplying the balance credited to such Fund subaccount as of the prior day
      to
      the Fund subaccount by the Interest Rate for the corresponding fund selected
      by
      the Oversight Committee pursuant to Section 3.2(b).

     

    
      	4.4  	
              Trust
                Funding.

            

    

     

    (a)  The
      Company has created a Trust with the Trustee. The Company shall cause the Trust
      to be funded each year. The Company and any Participating Company shall
      contribute to the Trust the sum of: (i) an amount equal to the amount
      deferred by each Participant; and (ii) the aggregate amount of Company
      Contribution Amounts for the Plan Year. The Participating Company shall
      contribute to the Trust an amount equal to the amount accrued by each
      Participant under any nonqualified deferred compensation plan of the
      Participating Company that is merged with or transferred to this
      Plan.

     

    (b)  Although
      the principal of the Trust and any earnings thereon shall be held separate
      and
      apart from other funds of Company and any Participating Company and shall be
      used exclusively for the uses and purposes of Plan Participants and
      Beneficiaries as set forth therein, neither the Participants nor their
      Beneficiaries shall have any preferred claim on, or any beneficial ownership
      in,
      any assets of the Trust prior to the time such assets are paid to the
      Participants or their Beneficiaries. Benefits and all rights created under
      this
      Plan shall be unsecured contractual rights of Plan Participants and
      Beneficiaries against the Company and any Participating Company. Any assets
      held
      in the Trust will be subject to the claims of Company's and any Participating
      Company’s general creditors under federal and state law in the event its or
      their becoming “insolvent” as defined in Section 4(a) of the Trust or any
      successor section.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

              (a)  The
      assets of the Plan and Trust shall never inure to the benefit of the Company
      or
      any Participating Company and the same shall be held for the exclusive purpose
      of providing benefits to Participants and their Beneficiaries and for deferring
      reasonable expenses of administering the Plan and Trust.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

         
      ARTICLE I  

     

    VESTING

     

    A
      Participant shall be 100% vested in his or her Deferral Account and Prior Plan
      Account. A Participant shall be vested in his or her Company Contribution Amount
      as follows.

     

    
      	
               

              Years
                of Service

            	
               

              Percentage

            
	
               

              Less
                than 2

            	
               

              0%

            
	
               

              2

            	
               

              20%

            
	
               

              3

            	
               

              40%

            
	
               

              4

            	
               

              60%

            
	
               

              5

            	
               

              80%

            
	
               

              6
                or more

            	
               

              100%

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI  

     

    DISTRIBUTIONS

     

    
      	6.1  	
              Distribution
                of Deferred Compensation and Company Contributions.

            

    

     

    (a)  Distribution
      Election.
      During
      each annual enrollment, under rules and on the distribution form prescribed
      by
      the Administrative Committee, a Participant may elect the timing and form of
      distribution with respect to the “Plan Year Balance” credited to his or her
      Account. For purposes of a distribution election, a Participant’s Plan Year
      Balance shall mean any deferrals of Compensation, vested Company Contributions
      made during a Plan Year, and any earnings on such deferrals of Compensation
      and
      Company Contribution Amounts. On the distribution form a Participant may elect
      to receive his Plan Year Balance on a Scheduled Withdrawal Date. With respect
      to
      that portion of Participant’s Account for which a Scheduled Withdrawal Date is
      not selected then such vested amounts shall become payable on the Payment Date
      after the first to occur of the Participant’s (i) Termination or (ii)
      death.

     

    (b)  Form
      of Distribution.

     

    (1)  If
      on a
      Payment Date a Participant’s vested Account balance is $50,000 or less, then
      notwithstanding any election to the contrary the amount to be distributed shall
      be paid to the Participant (and after his or her death to his or her
      Beneficiary) in a lump sum distribution.

     

    (2)  In
      the
      case of a Participant with a vested Account balance of more than $50,000 on
      a
      Payment Date then the Plan Year Balance(s), as applicable to such Payment Date,
      shall be paid to the Participant (and after his or her death his or her
      Beneficiary) in the form selected by the Participant in accordance with the
      options set forth below:

     

    (i)  Termination.

     

    (A)  A
      lump
      sum distribution beginning on the Participant’s Payment Date.

     

                                                                   
      (B)  Substantially
      equal quarterly installment beginning on the Participant’s Payment Date over a
      period of five, ten, fifteen, or twenty years.

     

                                                          
               (C)  If
      no
      election regarding the form of distribution has been made with respect to a
      Plan
      Year Balance, the payment of which will occur at Termination, then the amount
      to
      be distributed shall be paid to the Participant (and after his or her death
      to
      his or her Beneficiary) in quarterly installments over a period of ten
      years.

     

    (ii)  Scheduled
      Withdrawal Date.

     

                                                                 
      (A)  A
      lump
      sum distribution beginning on the Scheduled Withdrawal Date.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

                                                                                                                                               
      (B)  Substantially
      equal quarterly installments beginning on the Scheduled Withdrawal Date over
      a
      period of one, two, three, four, or five years.

     

                                                                
      (C)  If
      no
      election regarding the form of distribution has been made with respect to a
      Plan
      Year Balance, the payment of which will occur on a Scheduled Withdrawal Date,
      then the amount to be distributed shall be paid to the Participant (and after
      his or her death to his or her Beneficiary) in quarterly installments beginning
      on the Scheduled Withdrawal Date over a period of five years.

     

    (c)  Scheduled
      Withdrawal Dates.
      A
      Participant who has elected a Scheduled Withdrawal Date for a distribution
      while
      still in the employ of the Company and any Participating Company shall receive
      a
      distribution from his or her Account on such date, but only if he meets the
      requirements of 6.1(b)(2) above and only with respect to each Plan Year Balance
      as shall have been selected by the Participant to be subject to such Scheduled
      Withdrawal Date in accordance with Section 1.1(gg) of the Plan. A Participant's
      Scheduled Withdrawal Date with respect to a Plan Year Balance can be no earlier
      than two years from the first day of the Plan Year for which the deferrals
      of
      Compensation and Company Contribution Amounts are made; provided, however,
      that
      with respect to the Plan Year that includes the Effective Date, the Scheduled
      Withdrawal Date can be no earlier than 18 months from the Effective Date of
      the
      Plan. A Scheduled Withdrawal Date shall be a date certain, rather than an event,
      in accordance with Code Section 409A. In the event a Participant terminates
      employment with the Company and any Participating Company prior to the
      occurrence of a Scheduled Withdrawal Date (other than by reason of death),
      the
      portion of the Participant's Account associated with a Scheduled Withdrawal
      Date
      which has not been paid in full prior to such Termination, shall be distributed
      in accordance with the payment method selected by or applicable to the
      Participant in connection with his or her Termination.

     

    (d)  Modification.
      A
      Participant may elect to modify the form of benefit or extend the time of
      distribution with respect to a specific Plan Year Balance provided that such
      modification or extension is (x) made on a form provided by the Administrative
      Committee, (y) filed with the Administrative Committee at least twelve (12)
      months prior to his or her original Payment Date or Scheduled Withdrawal Date,
      and (z) any change to a distribution election relating to a distribution (other
      than for death or Disability) shall be effective only to the extent the first
      payment pursuant to the changed election is deferred for a period of at least
      five (5) years from the date payment would have otherwise been made. In
      addition, any change to a Participant’s form of benefit or time of distribution
      shall not become effective for a period of twelve (12) months from the date
      the
      form requesting such modification is received by the Administrative Committee.
      A
      Participant shall have the right to modify his or her elections up to two times
      with respect to a specific Plan Year Balance. 

     

    (e)  Distribution
      for Termination of Employment due to Death.
      In the
      case of a Participant who dies while employed by the Company or any
      Participating Company, the Participant’s vested Account balance shall be paid to
      the Participant’s Beneficiary in a lump sum unless the Participant has a valid
      election to receive installments. In addition, a death benefit, payable as
      a
      lump sum, shall be paid to the Beneficiary in an amount that is equal to the
      lesser of (i) $50,000 and (ii) 25% of the Participant’s vested Account balance
      as of the date of death.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

            
  (f)  Post-Termination
      Death Benefit.
      In the
      event a Participant who has begun receiving quarterly installments dies after
      his or her Termination and at the time of death still has a vested balance
      in
      his or her Account, the vested balance of such Account shall continue to be
      paid
      in quarterly installments in accordance with the election(s) previously made
      by
      the Participant.

     

    (g)  Earnings.
      The
      Participant’s Account shall continue to be credited with earnings pursuant to
      Section 4.1 of the Plan until all vested amounts credited to his or her Account
      under the Plan have been distributed.

     

    (h)  Delayed
      Distribution.
      A
      Participant’s Payment Date may be delayed under the following
      circumstances:

     

    (1)  if
      the
      Company’s income tax deduction under Code Section 162(m) would be limited or
      eliminated; provided, however, that amount to be distributed will be paid at
      the
      earliest date the Company or any Participating Company reasonably anticipates
      that the deduction will not be limited or eliminated or, if sooner, the calendar
      year of the Participant’s Termination;

     

    (2)  for
      a
      period of six months after the Participant’s Termination (except for death or
      Disability), if the Participant is a Key Employee. Key Employees shall be
      determined by including employees of the Company and any Participating Company,
      including nonresident alien employees;

     

    (3)  if
      the
      amount to be distributed from the Participant’s Account would violate a loan
      covenant to which the Company or any Participating Company is a party, and
      the
      violation is expected to cause material harm to the Company or a Participating
      Company provided, however, that the distribution will occur at the earliest
      date
      it is reasonable to expect that the payment will not cause material harm;

     

    (4)  if
      the
      amount to be distributed from the Participant’s Account is reasonably likely to
      violate federal or applicable state securities laws; provided, however, that
      the
      distribution will occur at the earliest date the Company and any Participating
      Company reasonably anticipate that the distribution will not cause a violation;
      and 

     

    (5)  if
      the
      amount to be distributed from the Participant’s Account is subject to a bona
      fide dispute; provided, however, that the distribution occurs during the first
      calendar year in which the Participant, the Company and any Participating
      Company enter into legally binding settlement agreement or pursuant to a final
      non-appealable judgment or other binding decision.

     

    
      	6.2  	
              Hardship
                Distribution.

            

    

     

    A
      Participant shall be permitted to elect a Hardship Distribution from his or
      her
      vested Accounts in accordance with Section 1.1(u) of the Plan prior to the
      Payment Date, subject to the following restrictions:

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

               (a)  The
      election to take a Hardship Distribution shall be made by filing a form provided
      by and filed with the Administrative Committee prior to the end of any calendar
      month.

     

    (b)  The
      Administrative Committee shall have made a determination that the requested
      distribution constitutes a Hardship Distribution in accordance with Section
      1.1(u) of the Plan.

     

    (c)  The
      amount determined by the Administrative Committee as a Hardship Distribution
      (which may not exceed the amount necessary to satisfy such emergency plus the
      amount necessary to pay taxes reasonably anticipated as a result of the
      distribution) shall be paid in a single cash lump sum as soon as practicable
      after the end of the calendar month in which the Hardship Distribution election
      is made and approved by the Administrative Committee.

     

    (d)  If
      a
      Participant receives a Hardship Distribution, then to the extent permitted
      under
      Code Section 409A the Participant will be ineligible to participate in the
      Plan
      for the balance of the Plan Year in which the Hardship Distribution was paid
      and
      the following Plan Year.

     

        6.3  Taxes.

     

    All
      distributions shall be reduced by an amount that the Administrative Committee
      reasonably determines is necessary to be withheld and paid over to satisfy
      federal, state, local and foreign tax authorities pursuant to Section
      8.3.

     

    
      	6.4  	
              Inability
                to Locate Participant.

            

    

     

    In
      the
      event that the Administrative Committee is unable to locate a Participant or
      Beneficiary within two years following the required Payment Date, the entire
      amount allocated to the Participant's Deferral Account, Company Contribution
      Account and Prior Plan Account shall be forfeited. If, after such forfeiture,
      the Participant or Beneficiary later claims such benefit, such benefit, to
      the
      extent vested, shall be reinstated without interest or earnings.

     

    
      	6.5  	
              Distributions
                from Prior Plan Account.

            

    

     

    In
      the
      event that a Participant has a Prior Plan Account, then all distribution options
      with respect to amounts credited to such Prior Plan Account shall be distributed
      in accordance with this Article 6, except with respect to a Participant who
      is not a current employee and is in pay status with respect to such Prior Plan
      Account at the time such Account is initially credited with an accrued benefit
      under the prior plan. In such case, the distribution mode in effect at the
      time
      the Prior Plan Account is credited under this Plan shall continue in accordance
      with the provisions of said prior plan, as provided on
      Schedule B.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

        
      ARTICLE VII  

     

    ADMINISTRATION

     

    
      	7.1  	
              The
                Committees.

            

    

     

    Two
      committees, the Administrative Committee and the Oversight Committee, shall
      be
      appointed by, and serve at the pleasure of, the Board of Directors. The number
      of members comprising each Committee shall be determined by the Board, which
      may
      from time to time vary the number of members. Any member of a Committee may
      resign by delivering a written notice of resignation to the Board. The Board
      may
      remove any member of a Committee by delivering a certified copy of its
      resolution of removal to such member. Vacancies in the membership of either
      Committee shall be filled promptly by the Board.

     

    
      	7.2  	
              Committee
                Action.

            

    

     

    A
      Committee shall act at meetings by the affirmative vote of a majority of its
      members. Any action permitted to be taken at a meeting may be taken without
      a
      meeting if, prior to such action, a written consent to the action is signed
      by
      all members of a Committee and such written consent is filed with the minutes
      of
      the proceedings of such Committee. A member of a Committee shall not vote or
      act
      upon any matter which relates solely to himself or herself as a Participant.
      The
      Chairman or any other member or members of a Committee designated by the
      Chairman may execute any certificate or other written direction on behalf of
      such Committee. Any member of a Committee may execute documents or provide
      written directions on behalf of the entire Committee.

     

    
      	7.3  	
              Powers
                and Duties of the Administrative Committee.

            

    

     

    The
      Administrative Committee, on behalf of the Participants and their Beneficiaries,
      shall enforce the Plan in accordance with its terms, shall be charged with
      the
      general administration of the Plan except with respect to the powers and duties
      of the Oversight Committee as described in Section 7.4, and shall have all
      powers necessary to accomplish its purposes, including, but not by way of
      limitation, the following:

     

    (a)  To
      construe and interpret the terms and provisions of this Plan;

     

    (b)  To
      compute and certify to the amount and kind of benefits payable to Participants
      and their Beneficiaries;

     

    (c)  To
      maintain all records that may be necessary for the administration of the
      Plan;

     

    (d)  To
      provide for the disclosure of all information and the filing or provision of
      all
      reports and statements to Participants, Beneficiaries or governmental agencies
      as shall be required by law;

     

    (e)  To
      make
      and publish such rules for the regulation of the Plan and procedures for the
      administration of the Plan as are not inconsistent with the terms hereof;
      and

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

                    (f)  To
      review
      decisions made by the Company with respect to claims.

     

           
      7.4   Powers
      and Duties of the Oversight Committee.

     

    The
      Oversight Committee, on behalf of the Participants and their Beneficiaries,
      shall be charged with the general administration of the Plan, except with
      respect to the powers and duties of the Administrative Committee as described
      in
      Section 7.3, and shall have all powers necessary to accomplish its purposes,
      including, but not by way of limitation, the following:

     

    (a)  To
      select
      the Funds in accordance with Section 3.2(b) hereof;

     

    (b) To
      appoint a Plan administrator or any other agent, and to delegate to them such
      powers and duties in connection with the administration of the Plan as the
      Oversight Committee may from time to time prescribe; and

     

    (c) To
      take
      all actions necessary for the administration of the Plan, including determining
      whether to hold or discontinue the Policies.

     

    
      	7.5  	
              Construction
                and Interpretation.

            

    

     

    The
      Administrative Committee shall have full and exclusive discretion to construe
      and interpret the terms and provisions of this Plan, which interpretations
      or
      construction shall be final and binding on all parties, including but not
      limited to the Company, the Oversight Committee and any Participant or
      Beneficiary. The Administrative Committee shall administer such terms and
      provisions in a uniform and nondiscriminatory manner and in full accordance
      with
      any and all laws applicable to the Plan.

     

    
      	7.6  	
              Information.

            

    

     

    To
      enable
      the Committees to perform their functions, the Company and each Participating
      Company shall supply full and timely information to the Committees on all
      matters relating to the Compensation of all Participants, their death or other
      events which cause termination of their participation in this Plan, and such
      other pertinent facts as a Committee may require.

     

    
      	7.7  	
              Compensation,
                Expenses and Indemnity.

            

    

     

    (a)  The
      members of a Committee shall serve without compensation for their services
      hereunder.

     

    (b)  Each
      Committee is authorized at the expense of the Company and each Participating
      Company to employ such legal counsel as it may deem advisable to assist in
      the
      performance of its duties hereunder. Expenses and fees in connection with the
      administration of the Plan shall be paid equally by the Company and each
      Participating Company, subject to an agreement between the Company and each
      Participating Company to the contrary.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

                          
      (c)  To
      the
      extent permitted by applicable state law, the Company and each Participating
      Company shall indemnify and hold harmless the Administrative and Oversight
      Committees and each member thereof, the Board of Directors and any delegate
      of a
      Committee who is an employee of the Company and any Participating Company
      against any and all expenses, liabilities and claims, including legal fees
      to
      defend against such liabilities and claims arising out of their discharge in
      good faith of responsibilities under or incident to the Plan, other than
      expenses and liabilities arising out of willful misconduct. This indemnity
      shall
      not preclude such further indemnities as may be available under insurance
      purchased by the Company and any Participating Company, or provided by the
      Company and any Participating Company under any bylaw, agreement or otherwise,
      as such indemnities are permitted under state law. The liability under this
      Section 7.7(c) shall be joint and several among the Company and any
      Participating Companies.

     

    
      	7.8  	
              Annual
                Statements.

            

    

     

    Under
      procedures established by the Administrative Committee, a Participant shall
      receive a statement with respect to such Participant's Accounts on an annual
      basis. In addition, a Participant may obtain access to Account information
      through telephonic and electronic means, including the Internet, as permitted
      by
      the Company.

     

    
      	7.9  	
              Disputes.

            

    

     

    (a)  Claim.

     

    A
      person
      who believes that he or she is being denied a benefit to which he or she is
      entitled under this Plan (hereinafter referred to as "Claimant") must file
      a
      written request for such benefit with the Company, setting forth his or her
      claim. The request must be addressed to the President of the Company at its
      then
      principal place of business.

     

    (b)  Claim
      Decision.

     

    Upon
      receipt of a claim, the Company shall advise the Claimant that a reply will
      be
      forthcoming within thirty (30) days and shall, in fact, deliver such reply
      within such period. The Company may, however, extend the reply period for an
      additional thirty (30) days for special circumstances.

     

    If
      the
      claim is denied in whole or in part, the Company shall inform the Claimant
      in
      writing, using language calculated to be understood by the Claimant, setting
      forth: (i) the specified reason or reasons for such denial; (ii) the
      specific reference to pertinent provisions of this Plan on which such denial
      is
      based; (iii) a description of any additional material or information
      necessary for the Claimant to perfect his or her claim and an explanation of
      why
      such material or such information is necessary; (iv) appropriate
      information as to the steps to be taken if the Claimant wishes to submit the
      claim for review; and (v) the time limits for requesting a review under
      subsection (c).

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

                                   
      (c)  Request
      For Review.

     

    Within
      sixty (60) days after the receipt by the Claimant of the written opinion
      described above, the Claimant may request in writing that the Administrative
      Committee review the determination of the Company. Such request must be
      addressed to the Administrative Committee, c/o the Secretary of the Company,
      at
      its then principal place of business. The Claimant or his or her duly authorized
      representative may, but need not, review the pertinent documents and submit
      issues and comments in writing for consideration by the Administrative
      Committee. If the Claimant does not request a review within such sixty (60)
      day
      period, he or she shall be barred and estopped from challenging the Company's
      determination.

     

    (d)  Review
      of Decision.

     

    Within
      thirty (30) days after the Administrative Committee's receipt of a request
      for
      review, after considering all materials presented by the Claimant, the
      Administrative Committee will inform the Participant in writing, in a manner
      calculated to be understood by the Claimant, of the decision setting forth
      the
      specific reasons for the decision containing specific references to the
      pertinent provisions of this Plan on which the decision is based. If special
      circumstances require that the thirty (30) day time period be extended, the
      Administrative Committee will so notify the Claimant and will render the
      decision as soon as possible, but no later than sixty (60) days after receipt
      of
      the request for review.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

         
      ARTICLE VIII  

     

    MISCELLANEOUS

     

    
      	8.1  	
              Unsecured
                General Creditor.

            

    

     

    Participants
      and their Beneficiaries, heirs, successors, and assigns shall have no legal
      or
      equitable rights, claims, or interest in any specific property or assets of
      the
      Company or any Participating Company. No assets of the Company or any
      Participating Company shall be held in any way as collateral security for the
      fulfilling of the obligations of the Company or any Participating Company under
      this Plan. Any and all of the Company's and any Participating Company’s assets
      shall be, and remain, the general unpledged, unrestricted assets of the Company
      and any Participating Company. The Company's and any Participating Company’s
      obligation under the Plan shall be merely that of an unfunded and unsecured
      promise of the Company or any Participating Company to pay money in the future,
      and the rights of the Participants and Beneficiaries shall be no greater than
      those of unsecured general creditors. It is the intention of the Company and
      any
      Participating Company that this Plan be unfunded for purposes of the Code and
      for purposes of ERISA.

     

    
      	8.2  	
              Restriction
                Against Assignment.

            

    

     

    The
      Company and any Participating Company shall pay all amounts payable hereunder
      only to the person or persons designated by the Plan and not to any other person
      or corporation. No part of a Participant's Accounts shall be liable for the
      debts, contracts, or engagements of any Participant, his or her Beneficiary,
      or
      successors in interest, nor shall a Participant's Accounts be subject to
      execution by levy, attachment, or garnishment or by any other legal or equitable
      proceeding, nor shall any such person have any right to alienate, anticipate,
      sell, transfer, commute, pledge, encumber, or assign any benefits or payments
      hereunder in any manner whatsoever. If any Participant, Beneficiary or successor
      in interest is adjudicated bankrupt or purports to anticipate, alienate, sell,
      transfer, commute, assign, pledge, encumber or charge any distribution or
      payment from the Plan, voluntarily or involuntarily, the Administrative
      Committee, in its discretion, may cancel such distribution or payment (or any
      part thereof) to or for the benefit of such Participant, Beneficiary or
      successor in interest in such manner as the Administrative Committee shall
      direct.

     

    
      	8.3  	
              Withholding.

            

    

     

    There
      shall be deducted from each payment made under the Plan or any other
      Compensation payable to the Participant (or Beneficiary) all applicable federal,
      state, local or foreign taxes which are required to be withheld by the Company
      or any Participating Company in respect to such payment or this Plan. The
      Company and any Participating Company shall have the right to reduce any payment
      (or compensation) by the amount of cash sufficient to provide the amount of
      said
      taxes.

     

    
      	8.4  	
              Amendment,
                Modification, Suspension or Termination.

            

    

    The
      Board
      may amend, modify, suspend or terminate the Plan in whole or in part, except
      that no amendment, modification, suspension or termination shall have any
      retroactive 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        
effect
        to
        reduce any amounts allocated to a Participant's Accounts. In the event that
        this
        Plan is terminated, the amounts allocated to a Participant's Accounts shall
        be
        distributed to the Participant or, in the event of his or her death, his
        or her
        Beneficiary in a lump sum as soon as is practicable in accordance with the
        termination and distribution procedures set forth in Code Section 409A and
        the
        regulations thereunder.

    

     

    
      	8.5  	
              Governing
                Law.

            

    

     

    This
      Plan
      shall be construed, governed and administered in accordance with the laws of
      the
      State of Texas to the extent not preempted by ERISA.

     

    
      	8.6  	
              Receipt
                or Release.

            

    

     

    Any
      payment to a Participant or the Participant's Beneficiary in accordance with
      the
      provisions of the Plan shall, to the extent thereof, be in full satisfaction
      of
      all claims against the Committees, the Company and each Participating Company.
      The Administrative Committee may require such Participant or Beneficiary, as
      a
      condition precedent to such payment, to execute a receipt and release to such
      effect.

     

    
      	8.7  	
              Payments
                on Behalf of Persons Under Incapacity.

            

    

     

    In
      the
      event that any amount becomes payable under the Plan to a person who, in the
      sole judgment of the Administrative Committee, is considered by reason of
      physical or mental condition to be unable to give a valid receipt therefore,
      the
      Administrative Committee may direct that such payment be made to any person
      found by the Administrative Committee, in its sole judgment, to have assumed
      the
      care of such person. Any payment made pursuant to such determination shall
      constitute a full release and discharge of the Committees, the Company and
      each
      Participating Company.

     

    
      	8.8 	
              Limitation
                of Rights and Employment
                Relationship

            

    

     

    Neither
      the establishment of the Plan and Trust nor any modification thereof, nor the
      creating of any fund or account, nor the payment of any benefits shall be
      construed as giving to any Participant, or Beneficiary or other person any
      legal
      or equitable right against the Company, a Participating Company or the Trustee
      of the Trust except as provided in the Plan and Trust; and in no event shall
      the
      terms of employment of any Employee or Participant be modified or in any way
      be
      affected by the provisions of the Plan and Trust.

     

    
      	8.9  	
              Severability.

            

    

     

    If
      any
      provision of this Plan is held to be invalid or unenforceable, the remaining
      provisions shall be effective.

     

    
      	8.10  	
              Gender.

            

    

     

    Unless
      the context clearly indicates otherwise, the masculine gender shall include
      the
      feminine, the singular shall include the plural, and the plural the
      singular.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	8.11  	
              No
                Enlargement of Employee Rights.

            

    

     

    (a)  This
      Plan
      is strictly a voluntary undertaking on the part of the Company and a
      Participating Company and shall not be deemed to constitute a contract between
      the Company or any Participating Company and any Employee, or to be
      consideration for, or an inducement to, or a condition of, the employment of
      any
      Employee.

     

    (b)  Nothing
      contained in this Plan or the Trust shall be deemed to give any Employee the
      right to be retained in the employ of the Company or any Participating Company
      or to interfere with the right of the Company or any Participating Company
      to
      discharge or retire any Employee at any time.

     

    (c)  No
      Employee, or any other person, shall have any right to or interest in any
      portion of the Trust, and no Employee or any other person shall be entitled
      to
      rely upon any representations, whether oral or in writing, any prospectus or
      other document, which are inconsistent with this Plan document.

     

    
      	8.12  	
              Addresses.

            

    

     

    Each
      Participant or Eligible Employee shall be responsible for furnishing the
      Administrative Committee with his or her correct current address and the correct
      current name and address of his or her Beneficiary or
      Beneficiaries.

     

    
      	8.13  	
              Interpretation.

            

    

     

    Article
      and Section headings are for convenient reference only and shall not be deemed
      to be part of the substance of this instrument or in any way to enlarge or
      limit
      the content of any Article or Section.

     

    
      	8.14  	
              No
                Implied Rights or Obligations.

            

    

     

    The
      Company, in establishing and maintaining this Plan as a voluntary and unilateral
      undertaking, expressly disavows the creation of any rights in Employees,
      Eligible Employees, Participants, or Beneficiaries or any obligations on the
      part of the Company or a Participating Company, except as expressly provided
      herein.

     

    
      	8.15  	
              Participants
                Outside of the United States.

            

    

     

    The
      Administrative Committee may adopt additional Plan rules in any jurisdiction
      outside of the United States in which participation in the Plan may be subject
      to additional or modified terms as may be required or advised to comply with
      local securities, exchange control, or tax laws or regulations or similar
      factors which may apply to the Participant, the Company or any Participating
      Company with respect to the Plan, including but not limited, different rules
      governing (i) the amount of Compensation that may be deferred under Article
      III,
      (ii) the ability of a Participant to rescind or modify a deferral or
      distribution election, or (iii) the time and form in which a Participant may
      elect to receive a distribution.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    PARTICIPATING
      COMPANIES

     

    Name
      of Company                             Date
      of Participation

    

    To-Ricos,
      Inc.                                 January
      1, 2005

     

    Pilgrim’s
      Pride Corporation                  
January
      1, 2005

    of
      West
      Virginia, Inc.

     

    PFS
      Distribution
      Company                                               January
      1, 2005

     

    PPC
      Transportation
      Company                                                                              January
      1,
      2005

     

    Pilgrim’s
      Pride
      Affordable                                               January
      1, 2005

    Housing
      Corporation

     

    PPC
      Marketing
      Ltd.                                                                                             
 January
      1, 2005

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

      SCHEDULE
        B

       

      The
        balance of this page is intentionally left
        blank.Transportation Agreement

     

    
      
        Exhibit
          10.3

      

    

        

    

      TRANSPORTATION
        AGREEMENT

      

      

      This
        Agreement for transportation of Goods (the “Agreement”) is made and entered into
        effective the 28th
        day of
        Dec., 2005, (the “Effective Date”),
        by and
        between PILGRIM’S PRIDE CORPORATION, a Delaware corporation (“Shipper”), and PAT
        PILGRIM d/b/a  PAT
        PILGRIM FARMS, (“Carrier”).

      

      R
        E C I T A L S:

      

      WHEREAS,
        Carrier is an independent contractor engaged in the business of transporting
        freight in intrastate and interstate commerce and desires to provide motor
        contract carrier services to Shipper for the transportation of chickens and
        other goods, which are considered general commodities (“cargo” or “Commodities”)
        under Federal Highway Administration Permit No. _______________ issued to
        Carrier by the Federal Highway Administration Division of the Department
        of
        Transportation a copy of which is attached hereto as Exhibit “1” and made a part
        hereof, and

      

      WHEREAS,
        Shipper desires Carrier from time to time to provide motor contract carrier
        services of transportation, as set forth in Exhibit A attached hereto and
        incorporated by reference herein, to Shipper’s customers of certain Commodities
        sold by Shipper.

      

      NOW,
        THEREFORE, in consideration of the mutual covenants and conditions hereinafter
        set forth, and other good and valuable consideration, the receipt and
        sufficiency of which the parties hereby acknowledge; Carrier and Shipper
        agree
        as follows:

      

      ARTICLE
        1

      

      Section
        1.1 Subject
        to the terms and provisions hereof, Shipper agrees to tender to Carrier an
        indeterminable number of Shipments (hereinafter defined) during the term
        of this
        Agreement, but not less than three (3) per year, and Carrier agrees to provide
        Suitable Equipment (hereinafter defined) to transport said Shipments, provided
        the booking procedures set forth in Section 1.4 herein are followed and Carrier
        agrees to transport such shipments in accordance with the terms and conditions
        stated herein. 

      
         

      

      Section
        1.2 A
        Shipment shall consist of a full trailer load of Commodities. Suitable Equipment
        means (i) a refrigerated trailer that is at least 48 feet long and 102 inches
        wide, that will haul a minimum of 45000 pounds gross weight of product, with
        each said trailer being clean, insect and rodent free, odor free, water tight
        and uncontaminated by prior use, not ever having been used for transportation
        or
        storage of toxic chemicals of any kind, including, without limitation,
        insecticides, rodenticides, and/or hazardous materials, substances or chemicals,
        unless otherwise agreed upon in writing by waiver of specified materials
        executed by Shipper’s Sr. Vice President of Quality Control and Vice President
        of Risk Management, at Shipper’s sole discretion, prior to Shipment; and (ii) a
        tractor power unit with sufficient power for towing the trailer, in good
        operating condition and repair, and with a driver experienced in handling
        the
        transportation of Commodities with such a rig and trailer and with a good
        driving record.

       

      Section
        1.3 Carrier
        shall furnish to Shipper a copy of the United States Department of
        Transportation General Motor Carrier Safety Administration Form MCS-150,
        Form
        MCS-90, and Form BMC-91X filed by Carrier as well as subsequent updates for
        the
        duration of the business relationship.

      

      Section
        1.4  When
        Shipper desires Carrier to transport a Shipment, Shipper will notify Carrier
        by
        e-mail, Electronic Data Interchange (EDI), verbally and/or by facsimile,
        specifying the load, the destination, and the date by which the load must
        reach
        the destination. Carrier will either accept or reject the opportunity to
        transport the Shipment by return e-mail, EDI, and/or facsimile to the Shipper
        in
        Section 13.4. If Carrier accepts, Carrier will be bound by the terms of this
        Agreement with respect to each such Shipment. If Carrier rejects, the rejected
        load will be considered as an allocated load to the Carrier in accordance
        with
        Shipper obligations to award Carrier primary coverage of said lane.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Section
        1.5 Time
        is
        of the essence in Carrier’s performance of its obligations hereunder, and
        Carrier agrees to provide timely communication relative to load tenders and
        to
        transport all Shipments with prompt and reasonable dispatch in accordance
        with
        scheduled delivery dates set by Shipper and its customers, as communicated
        to
        Carrier as set forth in Section 1.4 herein, subject, however, to compliance
        by
        Carrier with applicable laws and regulations and to conditions beyond Carrier’s
        control.

      

      ARTICLE
        2

      

      Compensation

      

      Section
        2.1 Carrier
        shall be compensated for each Shipment in accordance with the rates set forth
        on
        IBIDTransport.com, a web-based rate management system, or based on the delivery
        destination of the cargo, the total number of tons of cargo hauled by Carrier
        and the agreed upon rate as contained in the applicable purchase order. The
        fees
        paid to Carrier shall be no more favorable than the fees paid by Shipper
        to any
        other third party carrier. User name and password will be issued by Ilens
        Logistics Group at the request of Pilgrim’s Pride. Carrier agrees that “P. C.
        Miler v.14” shortest miles option shall be utilized as the basis for computing
        the mileage from the point of origination of a shipment to the point of
        destination of a Shipment. Any deviation from this aforementioned method
        must be
        approved in advance in writing by Shipper.

      

      Section
        2.2 Carrier
        represents and warrants that, during the term of this Agreement, the rates
        agreed upon hereunder as may be modified in accordance with the terms hereof
        from time to time, together with all charges, surcharges, rebates, discounts,
        incentives and allowances agreed upon by the parties (collectively, “Pricing
        Terms”), offered to Pilgrim’s Pride under this Agreement, are and will remain as
        favorable as, or better than the Pricing Terms offered by Carrier to any
        other
        shipper shipping similar products in like quantities. In the event that Carrier
        at any time agrees, in writing or otherwise, to Pricing Terms with another
        shipper that are in any way more favorable than the Pricing Terms agreed
        to with
        Pilgrim’s Pride, Carrier shall promptly notify Pilgrim’s Pride in writing and
        offer such terms to Pilgrim’s Pride. In the event Pilgrim’s Pride accepts such
        modified terms, the parties shall promptly prepare and execute an amendment
        to
        this Agreement reflecting such revised terms. Carrier (or its applicable
        subsidiary) shall annually on the anniversary of this Agreement, certify
        to
        Pilgrim’s Pride that Carrier remains in compliance with this
        provision.

      

      Section
        2.3 At
        the
        time the Shipment is fully delivered, an invoice covering that Shipment will
        be
        generated by Carrier and delivered to Shipper, in accordance with the rates
        Carrier places in IBID, or based on the delivery destination of the cargo,
        the
        total number of tons of cargo hauled by Carrier and the agreed upon rate
        as
        contained in the applicable purchase order. The invoice will be due and payable
        thirty (30) days
        from
        the date of receipt of the invoice, provided that on or before said date
        Shipper
        has received from Carrier (i) duly executed receipt(s) from whom delivery
        was
        made concerning the applicable invoice, and (ii) such other supporting materials
        as Shipper may reasonably require.

      

      Section
        2.4 Carrier
        shall maintain complete and accurate records of each Shipment and all
        transactions under this Agreement, including all supporting documentation
        and
        proof of delivery, and in a manner consistent with generally acceptable
        accounting procedures. Within two (2) days notice by Shipper, Carrier shall
        provide Shipper and/or its representatives with access to and the right to
        examine all records involving any transaction related to the Agreement. Such
        right shall be for the period covered by this Agreement and until the expiration
        of five (5) years after termination of this Agreement.

      

      ARTICLE
        3

      

      Payment
        of Rates and Charges

       

      Section
        3.1 Within
        thirty (30) days after Shipper’s receipt of Carrier’s delivery receipt, Shipper
        shall pay Carrier the rates and charges applicable to the shipment of cargo.
        In
        exchange for Shipper’s guarantee of prompt payment, (i) agrees not to contact
        Shipper’s customers, consignors, consignees or any party other than Shipper
        concerning payment for transportation services; and, (ii) agrees to indemnify,
        defend, and hold Shipper, its customers, consignors, and consignees harmless
        from any claim or demand made by any subcontractor of Carrier or other party
        for
        payment for transportation services related to a shipment of cargo tendered
        under this Agreement.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Section
        3.2 Any
        claim
        for overpayment or underpayment for transportation services provided pursuant
        to
        this Agreement shall be presented by the party asserting the claim to the
        other
        party within sixty (60) days of discovery of the claim, but in no event will
        any
        such claim(s) be asserted more than one hundred eighty (180) days after the
        delivery of the shipment or shipments giving rise to any such claim. Claims
        shall be supported by appropriate documentation showing the amount of the
        overcharge or the undercharge, as the case may be. The Parties shall pay,
        deny,
        or make a firm compromise offer within forty-five (45) days of receiving
        a
        claim.

       

      Section
        3.3 Carrier
        will pay all licenses, fees, taxes, fuel tax payments, road tax, equipment
        use
        fees or taxes, equipment license fees, driver’s license fees, tolls and any
        other fees and fines that may be assessed on its equipment or its
        operations.

       

      ARTICLE
        4

      

      Term

      

      Section
        4.1 This
        Agreement shall be continuously in effect beginning as of the Effective Date,
        unless terminated as herein provided.

      

      Section
        4.2 Either
        party may terminate this Agreement for any reason by giving the other party
        at
        least thirty (30) days
        prior written notice.

      

      ARTICLE
        5

      

      Acceptance
        of Commodities, Risk of Loss and Claims

      

      Section
        5.1 Carrier,
        by accepting Shipper’s Commodities for transportation, whether or not by signing
        an original Bill of Lading or accepting an electronic shipping document in
        lieu
        of an original Bill of Lading, acknowledges that the Commodities are in good
        condition except for any exceptions written on these documents. All shipments
        shall be transported under the bill of lading utilized by Shipper or such
        other
        documents that Shipper and Carrier may mutually agree in writing to use.
        To the
        extent the terms and conditions of any bill of lading, purchase order, invoice
        or other document or instrument conflict with any provision of this Agreement,
        the terms of this Agreement will control.

      

      Section
        5.2 Handling
        procedures for claims
        for loss, damage and delays (but specifically not salvage rights as set forth
        in
        Section 5.3 below and claims handling resolution) will be in accordance with
        49
        C.F.R. 370. The form for loss/damage claims to be utilized by the parties
        shall
        be the form attached hereto as Exhibit “2.” For claims purposes hereunder, the
        full amount of each invoice generated by Shipper to whom the Commodities
        constituting the cargo are being sold, shall be the agreed value of the
        applicable cargo. 

      

      Section
        5.3 Except
        with the express written consent of Shipper, Carrier shall not under any
        circumstances whatsoever cause, suffer or permit either (i) the sale or disposal
        of any Commodities constituting the cargo or (ii) any offer to sell or dispose
        of any such Commodities, whether as salvage or otherwise. In the event of
        an
        accident involving any Commodities being transported by Carrier for Shipper,
        the
        decision regarding the disposition of such Commodities shall be within the
        sole
        and absolute discretion and right of Shipper. If the product is determined
        to be
        salvageable by the Shipper, any salvage or rendering value, less associated
        costs, shall be credited to Carrier’s account to offset such loss liabilities.
        Title to such Commodities and the right to determine disposition of same
        remains
        with Shipper during transport and shall pass to Customer upon delivery and
        acceptance of such Commodities by Customer without any noted discrepancy.
        However, Carrier shall remain liable to Shipper as if Carrier was a common
        carrier at common law for the full actual loss, damage or injury to Commodities
        occurring while in the custody, possession or control of Carrier hereunder
        or
        resulting from Carrier’s performance or failure to perform the services provided
        for in this Agreement, except to the extent such performance is excused under
        Section 13.10 hereof.

      

      Section
        5.4 With
        regard to Carrier’s liability to Shipper for loss, damage or injury to
        Commodities, Carrier shall indemnify and hold harmless Shipper and all of
        its
        directors, officers, employees and agents (the “Indemnitees”) from and against
        any claims, losses, damages, judgments, awards, penalties or other costs
        or
        expenses (including, but not limited to, any reasonable attorneys’ fees), and
        defend, at Carrier’s cost, each Indemnitee against any threatened, pending or
        initiated claim, action, litigation, suit, arbitration, mediation or proceeding,
        arising out of or connected with any cargo claims. Any such cargo claim
        includes, but is not limited to, prepaid shipping costs, storage,
        rework/transportation charges as well as the full invoice value of the loss
        of,
        damage to, or destruction of Commodities, either partial or total, which
        occurred while such Commodities were in the custody, possession or control
        of
        Carrier or parties under its control including, but not limited to, employees,
        agents or other representatives of Carrier.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        6

      

      Insurance

      

      Section
        6.1 Carrier
        shall have obtained as of the Effective Date and shall maintain throughout
        the
        term of this Agreement, insurance according to Shipper’s vendor insurance
        requirements policy which has been incorporated by reference and herein attached
        as Exhibit “3.”

      

      Section
        6.2 Carrier
        shall deliver to Shipper, as of the Effective Date and whenever thereafter
        reasonably requested by Shipper, certificates of insurance from each applicable
        insurer reflecting the effectiveness of the insurance coverages required
        in
        Section 6.1 herein, providing for at least thirty (30) days
        advance written notice to Shipper of the insurer’s intention to cancel or
        materially change any of the insurance policies.

      

      Section
        6.3 In
        lieu
        of providing the insurance coverages described above and with the express
        approval of Shipper’s Risk Management Department, Carrier may furnish evidence
        of its authorization to self-insure.

      

      ARTICLE
        7

      

      Indemnification

      

      Section
        7.1 CARRIER
        SHALL DEFEND, INDEMNIFY, AND SAVE SHIPPER, ITS’ AFFILIATED ENTITIES, AND THE
        DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS OF SHIPPER HARMLESS FROM AND AGAINST
        ANY AND ALL LOSSES, COSTS, EXPENSES, CLAIMS, DEMANDS, LIABILITIES, SUITS
        OR
        ACTIONS (INCLUDING ALL REASONABLE EXPENSES AND ATTORNEY’S FEES) ARISING OUT OF
        INJURIES TO OR THE DEATH OF ANY PERSON OR PERSONS, INCLUDING THE EMPLOYEES
        OF
        EACH PARTY HERETO, OR ARISING OUT OF LOSS OF OR DAMAGE TO THE PROPERTY OF
        ANY
        PERSON OR PERSONS, INCLUDING THE PROPERTY OF SHIPPER (EXCLUDING LOSS AND
        DAMAGE
        TO CARGO WHICH IS COVERED ELSEWHERE IN THIS AGREEMENT) TO THE EXTENT CAUSED
        BY
        OR RESULTING FROM THE NEGLIGENCE OF CARRIER OR ANY OF ITS AGENTS,
        SUBCONTRACTORS, EMPLOYEES OR PARTIES UNDER ITS CONTROL AND ARISING OUT OF
        OR
        RELATED TO CARRIER’S PERFORMANCE UNDER THIS AGREEMENT. CARRIER ASSUMES NO
        LIABILITY UNDER THIS PARAGRAPH FOR ANY OCCURRENCE THAT IS THE RESULT OF THE
        SOLE
        NEGLIGENT ACTS OR OMISSIONS OF SHIPPER.

      

      ARTICLE
        8

      

      Representations
        and Warranties of Carrier

      

      Section
        8.1 Carrier
        hereby represents and warrants to Shipper, that as of the Effective Date
        and as
        of the date of each Shipment:

      

      (a) Their
        Federal Highway Administration permit is valid and is in full force and effect,
        not having been rescinded or affected in any way and Carrier has obtained
        and
        maintained all other licenses, permits and authorizations and approvals of
        whatever kind and nature applicable to Carrier and for the transportation
        services provided hereunder.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

          (b) All
        applicable federal, state and local laws and regulations or orders have been
        and
        will be strictly complied with, including, without limitation, (i) no
        commingling of Commodities with any hazardous substances or poisons as defined
        by the U. S. Department of Transportation, Environmental Protection Agency,
        Federal Drug Administration, or any other federal, state, or local governmental
        agency or municipality, and (ii) compliance with the requirements of the
        Sanitary Food Transportation Act of 1990, as may be amended from time to
        time,
        and any regulations derived therefrom, including, without limitation, shipping
        Commodities only with food and acceptable non- food products as defined in
        the
        Sanitary Food Transportation Act of 1990. 

      

      (c) Carrier
        (and if different from Carrier, any driver of a Shipment) has not been and
        is
        not now under any indictment, or a defendant in any lawsuit, or the subject
        of
        any administrative or other proceeding instituted by any federal, state or
        local
        governmental agency or entity, and to the best of its (their) knowledge there
        are no such proceedings threatened.

      

      (d) If
        Carrier is a corporation, general partnership, limited partnership, joint
        venture, trust, or other type of business association, as the case may be,
        Carrier (i) if either a corporation duly incorporated or a partnership or
        trust,
        joint venture or other type of business association duly organized, is validly
        existing, and in good standing under the laws of the state of its formation
        or
        existence, and has complied with all conditions prerequisite to its doing
        business in Texas and any other state where Carrier conducts business, and
        (ii)
        has all requisite power and all governmental certificates of authority,
        licenses, permits, qualifications and documentation to operate its trucks
        or
        trailers and to carry on its business as now being, and as proposed to be,
        conducted.

      

      (e) The
        execution, delivery, and performance by Carrier of this Agreement (i) is
        within
        Carrier’s powers and have been duly authorized by Carrier, (ii) will not
        violate, be in conflict with, result in a breach of, or constitute (with
        due
        notice or lapse of time, or both) a default under a violation of any agreement
        of Carrier, and (iii) this Agreement constitutes the legal, valid, and binding
        obligations of Carrier, enforceable in accordance with its respective
        terms.

      

      (f) All
        information, financial statements, insurance certificates, and any other
        data
        and instruments given or to be given to Shipper are, or at the time of delivery
        will be, accurate, complete, and correct in all material respects and do
        not, or
        will not, omit any fact, the inclusion of which is necessary to prevent the
        facts contained therein from being materially misleading.

      

      (g) All
        federal, state, county, municipal, and City income and other tax returns
        required to have been filed by Carrier have been timely filed and all taxes
        and
        related liabilities which have become due pursuant to such returns or pursuant
        to any assessments received by Carrier have been paid in full. 

      

      (h) Carrier
        has received and continuously maintained a “satisfactory” safety rating as
        issued by the U. S. Department of Transportation.

      

      (i) The
        insurance coverages required by Section 6.1 herein are in full force and
        effect
        and will not lapse or be terminated at any time during the term of this
        Agreement.

      

      ARTICLE
        9

       

      Carrier’s
        Operating Authority and Safety Rating

       

      Section
        9.1 Carrier
        represents and warrants that all transportation performed under this Agreement
        shall be contract carriage. To the extent that Carrier performs services
        pursuant to this Agreement within, or to or from Canada, it shall procure
        and
        maintain any and all operating authorities or permits required to be held
        by
        Carrier under any applicable Federal, Provincial or Territorial laws and
        shall
        adhere to the Canadian National Safety Code. Without cost to Shipper, Carrier
        shall provide and complete all preventive maintenance and ongoing maintenance
        including, but not limited to, periodic safety inspections, annual safety
        inspections and emissions testing pursuant to the standards set out in any
        and
        all of the applicable motor vehicle statutes and regulations of the applicable
        jurisdiction(s) of operation. Carrier warrants that it shall notify Shipper
        in
        the event of any suspension, cancellation, termination, or withdrawal of
        its
        operating authorities, in which event,
        Shipper
        shall have the right to terminate this Agreement immediately upon written
        notice
        to Carrier.

       

      Section
        9.2 Carrier
        further represents and warrants that it shall at all times maintain a U.S.
        DOT
        safety rating that is “satisfactory”, “conditional”, (subject to Shipper’s
        policies as amended from time to time), or “unrated”; and if to the extent that
        Carrier performs services pursuant to this Agreement within, or to or from
        Canada, comparably, Carrier shall maintain a Canadian “carrier safety rating”
that is “satisfactory”, “conditional” or “satisfactory-unaudited” in accordance
        with the Ontario Ministry of Transportation standards pursuant to the Highway
        Traffic Act and Regulations and/or any other Provincial or Territorial
        equivalent, which has jurisdiction over the Carrier’s operations. Carrier
        warrants that it will promptly notify Shipper if Carrier is assessed an
“unsatisfactory” safety rating, or if any equipment is known to be or reported
        as defective or which is not in compliance with the applicable Federal, State,
        Provincial or Territorial statute or regulation pertaining to vehicle or
        highway
        safety and Shipper will suspend all service with Carrier and this Agreement
        shall be terminated.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

          Section
        9.3 To
        the
        extent that Carrier performs services pursuant to this Agreement within,
        or to
        or from Canada, Carrier warrants that it holds a valid registration with
        the
        Commercial Vehicle Operator’s Registration (CVOR) System for transporting goods
        through Canada. Carrier shall notify Shipper immediately of any conviction
        or
        sanction against its CVOR rating.

       

      Section
        9.4 To
        the
        extent that Carrier performs services pursuant to this Agreement within,
        or to
        or from Canada, Carrier holds a valid license or certificate to operate an
        Extra-Provincial truck undertaking, and to engage in the Intra-Provincial
        truck
        transportation of goods or valid overweight permits pursuant to any applicable
        laws if necessary or as issued under the Motor Vehicle Transport Act, 1987
        or
        any Highway Traffic Act or equivalent as applicable to the jurisdiction of
        the
        trip/route.

       

      Section
        9.5 To
        the
        extent that Carrier performs services pursuant to this Agreement within,
        or to
        or from Canada, Carrier is authorized to transact bonded highway carrier
        operations in Canada, and warrants that it holds the applicable bonded highway
        carrier code as issued by the Canada Border Services Agency
        (“CBSA”).

       

      Section
        9.6 To
        the
        extent that Carrier performs services pursuant to this Agreement within,
        or to
        or from Canada, Carrier has signed Partners in Protection memorandum of
        understanding with the CBSA and has been certified and/or validated by the
        United States Bureau of Customs and Border Protection (“CBP”) as a participant
        in the Customs-Trade Partnership Against Terrorism.

       

      Section
        9.7 To
        the
        extent that Carrier performs services pursuant to this Agreement within,
        or to
        or from Canada, Carrier warrant that it is an approved carrier under the
        CBSA’s
        Customs Self-Assessment program, and is a registered participant in the Free
        and
        Secure Trade (“FAST”) program and that it holds a Standard Alpha Code number as
        issued by the National Motor Freight Association (“NMFTA”).

       

      ARTICLE
        10

       

      Drivers
        and Equipment

       

      Section
        10.1 Carrier
        shall ensure that he/she and his/her/its drivers are properly trained and
        licensed, and are competent and capable of safely handling and transporting
        Shipper’s shipments of cargo. Carrier agrees that drivers will be dispatched in
        accordance with the maximum available hours of service as provided in rules
        promulgated by the FMCSA while in the United States or as provided by any
        Canadian authority whose jurisdiction is within Carrier’s route/trip.

       

      Section
        10.2 Carrier
        shall provide and maintain all equipment required for the services requested
        by
        Shipper and shall only
        use and
        provide equipment that is clean, in good operating condition and repair,
        in
        compliance with any and all Federal and/or State, Provincial/Territorial,
        Municipal statutes and regulations, and is suitable and properly configured
        to
        safely load, transport, and unload the shipments of cargo tendered by Shipper.
        Carrier shall ensure that all equipment and all loads are in compliance with
        the
        environmental standards of any and all jurisdictions on its route and must
        act
        in accordance with these environmental standards.’ All equipment provided for
        the transportation of food or food grade products will comply with the
        requirements of The Sanitary Food Transportation Act, or, to the extent that
        Carrier performs services pursuant to this Agreement within, or to or from
        Canada, the Food and Drug Acts and any/all other applicable statutes and
        regulations, including, but not limited to the Ontario Food Safety and Quality
        Act, 2001, or any other jurisdiction’s equivalent.

       

      Section
        10.3 Drop
        Trailer/Interchange. In the event that Carrier participates in a drop trailer
        arrangement for the benefit of any of Shipper’s customers or Shipper, Carrier
        agrees that it shall address all damage or liability issues directly with
        the
        responsible customer or Shipper. Carrier agrees that Shipper shall only be
        responsible for the direct acts of its employees, and not for the actions
        of
        customers, lumpers, draymen, other carriers, or any other third party (“Third
        Parties”), unless Shipper proximately caused or contributed to the actions of
        any of the Third Parties. If Carrier agrees to interchange equipment to another
        carrier or to use equipment owned by a third party, Carrier, will address
        any
        interchange agreement directly with that motor carrier or equipment
        owner.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

        ARTICLE
          11

        

        Independent
          Contractor

        

        Section
          11.1 Carrier
          shall be an independent contractor with respect to all work performed under
          this
          Agreement. Neither Carrier nor anyone used or employed by Carrier shall
          be
          deemed for any purpose to be the employee, agent, servant, or representative
          of
          Shipper in the performance of such work, or in any matters arising out
          of
          Carrier’s obligations under this Agreement. Shipper shall have no right of
          supervision, direction or control over Carrier, its employees, or agents.
          As an
          independent contractor, Carrier assumes full responsibility for the payment
          of
          federal, state and local taxes or contributions or taxes for unemployment
          insurance, pensions, worker’s compensation, and related matters with respect to
          Carrier’s employees engaged in the performance of its services.

        

        ARTICLE
          12

        

        Dispute
          Resolution

        

        Section
          12.1 
          If a
          dispute arises from or relates to transactions between the Parties, the
          Parties
          shall endeavor to settle the dispute first through direct discussions and
          negotiations. If the dispute cannot be settled through direct discussions,
          the
          Parties shall endeavor to settle the dispute by mediation under the Mediation
          Rules of the American Arbitration Association before recourse to the arbitration
          procedures contained in this Agreement. If a dispute has not been resolved
          within 90 days after the written notice beginning the mediation process
          (or a
          longer period, if the Parties agree to extend the mediation), the mediation
          shall terminate and the dispute shall be settled by binding arbitration
          in
          Dallas, Texas or such other location as agreed upon by the Parties.  The
          arbitration will be conducted in accordance with the procedures in this
          document
          and the Rules of the American Arbitration Association in effect on the
          date of
          the engagement letter, or such other rules and procedures as the Parties
          may
          designate by mutual agreement.  In the event of a conflict, the provisions
          of this document will control.

        

        Section
          12.2 The
          arbitration shall be conducted by a single arbitrator as agreed upon by
          the
          Parties. If the Parties cannot agree on a single arbitrator, the arbitration
          will be conducted before a panel of three arbitrators, one selected by
          each
          Party and the third arbitrator selected by the Parties’ two arbitrators from a
          panel provided by the American Arbitration Association.  Any issue
          concerning the extent to which any dispute is subject to arbitration, or
          concerning the applicability, interpretation, or enforceability of these
          procedures, including any contention that all or part of these procedures
          are
          invalid or unenforceable, shall be governed by the agreement between the
          Parties
          and the Federal Arbitration Act and resolved by the arbitrators.  No
          potential arbitrator shall be appointed unless he or she has agreed in
          writing
          to abide and be bound by these procedures.

        

        Section
          12.3 The
          individual arbitrator or the arbitration panel shall have no power to award
          non-monetary or equitable relief of any sort.  The arbitrator/panel shall
          also have no power to award (a) damages inconsistent with any applicable
          agreement between the Parties or (b) punitive damages or any other damages
          not
          measured by the prevailing Party’s actual damages; and the Parties expressly
          waive their right to obtain such damages in arbitration or in any other
          forum.  In no event, even if any other portion of these provisions is held
          to be invalid or unenforceable, shall the arbitrator/panel have power to
          make an
          award or impose a remedy that could not be made or imposed by a court deciding
          the matter in the same jurisdiction.

        

        Section
          12.4 Discovery
          shall be permitted in connection with the arbitration only to the extent,
          if
          any, expressly authorized by the arbitration panel upon a showing of substantial
          need by the Party seeking discovery.

        

        Section
          12.5 All
          aspects of the arbitration shall be treated as confidential.  The Parties
          and the arbitrator/panel may disclose the existence, content or results
          of the
          arbitration only as provided in the Rules or by the Parties.  Before making
          any such disclosure, a Party shall give written notice to all other Parties
          and
          shall afford such Parties a reasonable opportunity to protect their
          interests.

        

        Section
          12.6 The
          result of the arbitration will be binding on the Parties, and judgment
          on the
          arbitration award may be entered in any court having jurisdiction. The
          prevailing Party in any dispute that is resolved by this dispute resolution
          process shall be entitled to recover from the other Party reasonable attorneys’
fees, costs and expenses incurred by the prevailing Party in connection
          with
          such dispute resolution process.

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        ARTICLE
          13

        

        Miscellaneous

        

        Section
          13.1 All
          information and materials with respect to Shipper’s costs, procedures and other
          details of Shipper’s business obtained by Carrier in connection with the
          performance of services hereunder is confidential and shall not, without
          Shipper’s prior written consent, be disclosed by Carrier, its employees, or
          agents to any third person.

        

        Section
          13.2 More
          than
          one copy of this Agreement may be executed by the parties hereto. Each
          such
          executed copy shall have the full force and effect of an original executed
          instrument.

        

        Section
          13.3 AUDIT:
          The Carrier shall keep accurate books of account and records covering all
          transactions involving the transportation services provided under this
          Agreement. Shipper, or its authorized representative, shall have the right,
          during normal business hours, to examine such books and records to the
          extent
          necessary to determine compliance with the supply of the transportation
          services. All such books and records shall be kept available during the
          term of
          business relationship and for at least three (3) years after their
          creation.

        

        Section
          13.4 Any
          notice or communication required or permitted hereunder shall be given
          in
          writing, sent by (a) expedited delivery service with proof of delivery
          or (b)
          United States Mail, postage prepaid, registered or certified mail, addressed
          as
          follows:

        

        If
          to
          Shipper:  Pilgrim’s
          Pride Corporation

        4845
          Hwy.
          271 N

        Pittsburg,
          TX 75686

        Attention:
          Sarah Baker Hanna

        Telephone:
          903-434-1146

         

        With
          copy
          to:  Pilgrim’s
          Pride Corporation

        4845
          Hwy.
          271 N

        Pittsburg,
          TX 75686

        Attention:
          VP Risk Management

         

        If
          to
          Carrier:  Pat
          Pilgrim d/b/a Pat Pilgrim Farms

        1535
          Loop
          179

        Pittsburg,
          TX 75686

        Telephone:
          903-856-0316

        Attn:
          Pat
          Pilgrim   

         

        

        or
          to
          such other address or to the attention of such other person as hereafter
          shall
          be designated in writing by the applicable party sent in accordance herewith.
          Any such notice or communication shall be deemed to have been given either
          at
          the time of personal delivery or, in the case of delivery service or certified
          or registered mail, as of the date of deposit or delivery to the United
          States
          Mail or expedited delivery service in the manner provided herein, or in
          the case
          of facsimile, upon receipt. Either party hereto may change the address
          for
          notice specified above by giving the other party ten (10) days advance
          written
          notice of such change of address.

        

        Section
          13.5 This
          Agreement shall be binding upon and inure to the benefit of the parties
          and
          their respective heirs, legal representatives, and permitted successors
          and
          assigns. The rights of Carrier under the Agreement are not assignable without
          the prior written consent of Shipper.

        

        Section
          13.6 This
          agreement is entered into in Texas and shall be governed and construed
          in
          accordance with the laws of the State of Texas. If any matters in dispute
          are
          required to be settled by litigation, such trials will be decided by a
          judge.
THE
          PARTIES WAIVE TRIAL BY JURY IN ANY SUCH ACTION(S) AND CONFIRM THAT THIS
          WAIVER
          IS A MATERIAL INDUCEMENT TO THEIR BUSINESS TRANSACTIONS. For
          any such action(s) related to their business transactions or enforcement of
          any arbitration, the parties submit themselves to the jurisdiction of the
          State
          or Federal Courts located in Dallas, Texas.

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

        Section
          13.7 This
          Agreement may not be modified or amended, except by an agreement in writing
          signed by an approved representative of Shipper and Carrier. The parties
          may
          waive any of the conditions contained herein or any of the obligations
          of the
          other party hereunder, but any such waiver shall be effective only if in
          writing
          and signed by the party waiving such conditions or obligations.

        

        Section
          13.8 Each
          person executing this Agreement warrants and represents that he is fully
          authorized to do so.

        

        Section
          13.9 This
          Agreement, including the Exhibits hereto, constitutes the entire agreement
          among
          the parties pertaining to the subject matter hereof and supersedes all
          prior and
          contemporaneous agreements and understandings of the parties in connection
          therewith. No representation, warranty, covenant, agreement or condition
          not
          expressed in this Agreement shall be binding upon the parties hereto or
          shall
          affect or be effective to interpret, change or restrict the provisions
          of this
          Agreement.

        

        Section
          13.10 Shipper
          shall not be liable in any respect for failure to tender the minimum number
          of
          loads set forth in Section 1.1, nor shall Carrier be liable in any respect
          for
          failure to transport, accept, handle or complete movement of such loads
          where
          such failures on part of Shipper or Carrier are caused, directly or indirectly,
          by war, conditions of war, strikes, lock-outs, explosions, fires, floods,
          hurricanes, cyclones, or other acts of God or casualties beyond the control
          of
          Shipper or Carrier. During the existence of any of these conditions, the
          obligations of the parties hereunder shall be suspended for the duration
          of
          same. Upon cessation of the conditions enumerated, the obligations of the
          parties hereunder shall resume and the term of this Agreement shall be
          extended
          by a period equal to the period during which such obligations were
          suspended.

        

        Section
          13.11 If
          any
          provision of this Agreement is held to be violative of any law or regulation,
          or
          is unenforceable for any reason, such illegality shall not affect the remaining
          portions of this Agreement, which shall remain in full force and
          effect.

        

        Section
          13.12 Carrier
          shall be free to accept freight for transportation from shippers other
          than
          Shipper, and Shipper shall be free to tender freight for transportation
          to
          carriers other than Carrier.

        

        Section
          13.13
          Neither
          Party will offer or provide to the employees, agents or other representatives
          of
          the other Party any favors, gratuities, gifts, payments, or anything of
          value,
          whether or not in an attempt to influence such person’s administration of the
          provisions of this Agreement or to otherwise gain unfair advantage individually
          and/or relative to competing suppliers/vendors.

        

        Additionally,
          each Party will immediately report to the other Party any requests made
          for
          favors, gratuities, gifts, payments or anything of value by employees,
          agents or
          other representatives of such Party and will cooperate with respect to
          any
          inquiry or investigation being conducted related to such activities or
          alleged
          activities. Pilgrim’s Pride has established its Pride Line with the toll-free
          number of 1-888-536-1510 to report any unethical conduct.

        

        Section
          13.14 This
          Agreement shall be construed as a whole in accordance with the fair and
          reasonable meaning of its language, and, regardless of which party co-drafted
          this Agreement, this Agreement shall not be construed in favor of or against
          either party.

        

        Section
          13.15 This
          Agreement constitutes the complete and entire agreement between the parties
          and
          supersedes any prior or contemporaneous agreements or understandings between
          the
          parties with respect to its subject matter. This Agreement covers and controls
          the entire business relationship between the parties including any claims,
          disputes or other conflicts which may arise between the parties and which
          are
          brought or occur after the effective date even if the events or actions
          occur in
          whole or in part prior to the Effective Date.

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        ARTICLE
          14

         

        Carrier’s
          Cargo Liability and Claims

         

        Section
          14.1 Carrier
          shall have the sole and exclusive care, custody and control of the shipments
          of
          cargo tendered by Shipper from the time Carrier picks up a shipment until
          delivery to the customer or consignee. Carrier shall be liable to Shipper
          for
          actual loss and damage to shipments of cargo, and for delayed deliveries,
          arising from Carrier’s performance of or failure to perform the services
          required by this Agreement; provided, however, that Carrier shall not be
          liable
          for loss, damage, or delay to shipments caused solely by an act of God,
          public
          enemy, acts of war, insurrection, riot, or the negligence of Shipper or
          its
          customer(s), in which case Carrier has the burden of proving applicability
          of
          the exception. Any seals applied to trailer are not to be broken or removed
          prior to delivery at destination without prior written consent from
          Shipper.

         

        Section
          14.2 Carrier
          shall be liable for the full, actual value of the shipments of cargo tendered
          by
          Shipper to Carrier. No released value rates, or other limitation of cargo
          liability, shall be valid or enforceable against Shipper or its customers
          unless
          expressly agreed to by Shipper in a signed writing separate from any bill
          of
          lading or other delivery receipt issued by Carrier.

         

        Section
          14.3 Shipper
          shall file a claim (i) for loss or damage to shipments within three (3)
          months
          from the date of delivery and (ii) for delay (or non-delivery) within three
          (3)
          months of the date that delivery reasonably should have been made. Within
          ninety
          (90) days of receiving a claim from Shipper for loss, damage, or delay,
          Carrier
          shall pay or deny the claim (in which case the reasons for denial shall
          be fully
          explained), or make a firm compromise offer.

         

        Section
          14.4 To
          the
          extent that any of the terms of this Agreement are inconsistent with the
          Truck
          Transportation Act, R.S.O. 1990, c. T.22, as amended, and the Regulations
          thereto or similar provincial or territorial legislation having jurisdiction,
          and/or the provisions of any bill of lading, the terms of this Agreement
          shall
          prevail.

         

        ARTICLE
          15

         

        Bills
          of Lading and Delivery Receipts

         

        Section
          15.1 Carrier
          will issue and sign a standard, uniform straight bill of lading or other
          receipt
          (“Receipt”) acceptable to Shipper and Shipper’s customers upon acceptance of a
          shipment of cargo for transportation. If Carrier permits the shipper to
          prepare
          the bill of lading, Carrier warrants that it shall ensure that the bill
          of
          lading properly names Carrier as the “carrier” on the load prior to signing it,
          and shall strike through and correct any erroneous designation of any other
          person as “carrier” (including Shipper) on the bill of lading. Any terms and
          conditions written or printed on the Receipt shall have no effect against
          Shipper, unless specifically agreed to by Shipper in this Agreement or
          in a
          separate signed writing apart from the Receipt. Carrier shall submit an
          original
          copy of the Receipt to Shipper evidencing delivery of the shipment of cargo
          unless otherwise instructed by Shipper, in which case Carrier shall retain
          custody of the Receipt and provide it to Shipper upon request.

         

        ARTICLE
          16

         

        Factoring

         

        Section
          16.1 Carrier
          shall provide Shipper thirty (30) days prior written notice of any assignment,
          factoring, or other transfer of its right to receive payments arising under
          this
          Agreement and obtain Shipper’s written consent to such assignment, factoring, or
          other transfer prior to same taking legal effect. Such written notice shall
          include the name and address of assignee/transferee, date, date assignment
          is to
          begin, and terms of the assignment, and shall be considered delivered upon
          receipt of such written notice by Shipper.

        

        ARTICLE
          17

         

        Subcontractors

         

        Section
          17.1 Carrier
          specifically agrees that it shall be the party solely responsible for operating
          the equipment necessary to transport cargo under this Agreement and that
          it
          shall use its best efforts not to sub-contract, broker or tender to any
          third
          party for transportation any cargo tendered to Carrier pursuant to this
          Agreement. In the event that Carrier shall employ any subcontractor or
          other
          person for the performance of all or any portion of the services required
          hereunder to be performed by Carrier, Carrier shall be and remain liable
          to
          Shipper under the terms of this Agreement including, without limitation,
          liability for loss, damage or delay of any shipments of cargo, whether
          such
          loss, damage or delay occurred while such shipment was in the possession
          of
          Carrier or such subcontractor or other person. Carrier shall be solely
          and
          exclusively responsible to pay any charges of any subcontractor or other
          person.

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        ARTICLE
          18

        

        Recall

        

        Section
          18.1 In
          the
          event any cargo shipped hereunder is recalled pursuant to a Class I Recall
          under
          regulatory standards promulgated by the U.S.D.A. (“Recall”), whether initiated
          by Carrier or by decision, action or order of any governmental authority
          due to
          the actions of Carrier, Carrier shall notify Shipper via direct telephone
          prior
          to the implementation of such Recall. Any Recall pursuant to this paragraph
          shall be carried out in the name of Carrier, provided, however, that insofar
          as
          reasonably possible, Carrier shall consult with Shipper as to the necessity
          for
          and wording of any press release or similar public statement relating to
          the
          recall or recovery; and Carrier shall be responsible for all costs and
          expenses
          related to such Recall, including but not limited to shipping expenses.
          

        

        Section
          18.2 In
          the
          event any cargo shipped hereunder is recalled pursuant to a Class I Recall
          under
          regulatory standards promulgated by the U.S.D.A. (“Recall”), whether initiated
          by Shipper or by decision, action or order of any governmental authority
          due to
          the actions of Shipper, Shipper shall notify Carrier prior to the implementation
          of such Recall via direct telephone prior to the implementation of such
          Recall.
          Any Recall pursuant to this paragraph shall be carried out in the name
          of
          Shipper and Shipper shall be responsible for all costs and expenses related
          to
          such Recall, including but not limited to shipping expenses. 

        

        Section
          18.3 Any
          and
          all costs and expenses of cargo inspection and/or testing required by Shipper
          to
          confirm compliance with this Agreement, or as a result of Recall, shall
          be borne
          by Carrier. 

        

        ARTICLE
          19

         

        NO
          LIEN

         

        Section
          19.1 Carrier
          shall have no lien, and hereby expressly waives its right to any lien on
          any
          cargo, freight, or property of Shipper or any of its customers, consignors
          or
          consignees.

        

        

        EXECUTED
          on the dates indicated below but effective as of the Effective Date first
          above
          written.

        

        

        FOR
          CARRIER:      FOR
          SHIPPER:

        

        PAT
          PILGRIM d/b/a PAT PILGRIM FARMS  PILGRIM’S
          PRIDE CORPORATION   

        

        By:
          /s/
          Pat Pilgrim    
 By:
          /s/
          Mark Lawrence    

        

        Print
          Name: Pat
          Pilgrim     
  
Print
          Name: Mark
          Lawrence   

        

        Title:
          Owner
          PPF  
              Title:
          V.P.-Risk
          Management   

        

        Date:
          12-28-05     
                Date:
          1/3/06     

        

         

        

        /s/
          TT   

        Tim
          Thomas (Initials)

        Sr.
          V.P.-
          Procurement

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          A

        

        Carrier
          will provide the following transportation services pursuant to the
          Agreement:

        

        

        
          	1)  	
                  Hauling
                    corn and soybean meal from Pittsburg to Mt. Pleasant using Vendor’s
                    equipment.

                

        

        
          	2)  	
                  Hauling
                    corn and soybean meal from Pittsburg to Mt. Pleasant using Pilgrim’s Pride
                    equipment.

                

        

        
          	3)  	
                  Hauling
                    flaked corn to Pilgrim’s Pride’s customers using Vendor’s
                    equipment.

                

        

        
          	4)  	
                  Hauling
                    flaked corn to Pilgrim’s Pride customers using Pilgrim’s Pride’s
                    equipment.

                

        

        
          	5)  	
                  Hauling
                    sacked feed to Pilgrim’s Pride’s customers using Vendor’s
                    equipment.

                

        

        
          	6)  	
                  Hauling
                    sacked feed to Pilgrim’s Pride’s customers in Pilgrim’s Pride’s
                    equipment.

                

        

        
          	7)  	
                  Any
                    other services requested by Shipper and agreed upon by both
                    Parties.

                

        

        

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        EXHIBIT
          "1"

        FHA
          Operating Permit

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        EXHIBIT
          "2"

        Claim
          Form

        

          Standard
            Form for Presentation of Loss and Damage Claims

          Approved
            by the Interstate Commerce Commission; Freight claim Division, American
            Railway
            Association; National Industrial Traffic League, and the National Association
            of
            Railway Commissioners.

          

          
            	 	 	 	 	 
	
                    (Name
                      of person to whom claim is prompted)

                  	 	
                    (Address
                      of claimant)

                  	 	
                    (Claimant's
                      Number)

                  
	 	 	 	 	 
	
                    (Name
                      of Carrier)

                  	 	
                    (Date)

                  	 	
                    (Carrier's
                      Number)

                  
	 	 	 	 	 
	
                    (Address)

                  	 	 	 	 

          

          

          This
            claim for $   
            is made
            against the carrier named above by  Pilgrim's
            Pride 
            for                                                                                                                     
(Name
            of
            Claimant)

                                                                                 
            in
            connection with the following described shipments:

          (Loss
            or
            Damage)

          

          Description
            of
            shipments                                                                                                                              
           
          

          

          Name
            and
            address of cosignor
            (shipper)                                                                                                            
         

          

          Shipped
            from      : To      

          (City,
            Town or Station)     (City,
            Town or Station)

          

          Final
            Destination    : Routed
            Via     

          (City,
            Town or Station)     (City,
            Town or Station)

          

          Bill
            of
            Lading issued by    Co:
            Date
            of Bill of Lading    

          

          Paid
            Freight Bill (Pro) Num   ; Original
            Car Number and Initial    

          
 

          Name
            and
            address of consignee (whom shipped to)       

          

          If
            shipment reconsigned en route, state particulars:    
    

          

          DETAILED
            STATEMENT SHOWING HOW AMOUNT CLAIMED IS DETERMINED

          (Number
            and description of articles, nature and extent of loss or damage, invoice
            price
            of articles, amount of claim, etc.)

          

                                                                                                                                                                                                                       
            

                                                                                                                                                                                                                       

                                                                                                                                                                                                             
                      

                                                                                                                                                                                                                       
            

                                                                                                                                                                                                                       
            

           

          Total
            Amount Claimed

          

          IN
            ADDITION TO THE INFORMATION GIVEN ABOVE, THE FOLLOWING DOCUMENTS ARE
            SUBMITTED
            IN

          SUPPORT
            OF THIS CLAIM*

          

          (
            ) 1. Original
            bill of lading, if not previously surrendered to carrier

          (
            ) 2. Original
            paid freight (expense) bill.

          (
            ) 3. Original
            invoice or certified copy.

          4. Other
            particulars obtainable in proof of loss or damage claimed.

          Remarks:

                                                                      
                                 
                                                                                                             
         

                                                                                                                                                                                                                   
            

                                                                                                                                                                                                                   
            

           

          The
            foregoing statement of facts is hereby certified to as correct:                             (Signature
            of Claimant)

          

           

          Claimant
            should assign to each claim a number, inserting same in the space provided
            at
            the upper right hand corner of this form. Reference should be made thereto
            in
            all correspondence pertaining to this claim.

           

          *
            Claimants will please place (x) before such of the documents mentioned
            as have
            been attached, and explain under "Remarks" the absence of any of the
            

           

          the
            documents call for in connection with this claim. When for any reason
            it is
            impossible for claimant to produce original bill of lading, or paid freight
            bill, 

           

          claimant
            should indemnify carrier or carriers against duplicate claim, supported
            by
            original documents.

           

        

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        
EXHIBIT
          "3"

        

        

        PILGRIM’S
          PRIDE CARRIER
          MINIMUM INSURANCE REQUIREMENTS

         

        All
          Carriers providing products or services for Pilgrim's Pride Corporation
          are to
          have the following minimum requirements on their Certificate of Insurance.
          

        

        General
          Liability

        

         General
          Aggregate     $2,000,000

        Products/Completed
          Operations   $1,000,000

        and/or
          Professional Liability    $1,000,000
          (if applicable)

        Each
          Occurrence     $1,000,000

         

        

         

        Automobile
          Liability

        Combined
          Single Limit    $1,000,000

        

        Workers
          Compensation    Statutory

        Employers’
          Liability  

        Each
          Accident     $100,000

        Policy
          Limit      $500,000

        Each
          Employee     $100,000

        

        Pilgrim's
          Pride Corporation is to be listed as an Additional
          Insured on General
          Liability and Auto policies.
          A
30-day
          notice of cancellation
          is also
          required. Pilgrim’s Pride Corporation reserves the right to modify these
          requirements as deemed necessary for the risk presented to Pilgrim’s Pride
          Corporation. 

        

        The
          certificate holder address should read as follows:

        Pilgrim's
          Pride Corporation

        Attn:
          Risk Management

        4845
          Highway 271 North

        Pittsburg,
          TX 75686

        

        ***All
          trucking and freight vendors are required to have Motor Truck Cargo with
          a
          minimum limit of $100,000***

        

        ***All
          trucking and freight brokers are required to have Contingent Motor Truck
          Cargo
          with a minimum limit of $100,000***

        

        
          
            
            

          

          
            15

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