Document:

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***

        

        
          
            
            

          

          
            15Exhibit 10.4

      

    

     

    GROUND
      LEASE AGREEMENT

     

     

    THIS
      LEASE AGREEMENT (“Lease”)
      is effective as of the 4th
      day of
      Jan., 2006 (the “Effective Date”), by and between Pilgrim’s Pride Corporation
      (“Lessor”) and Pat Pilgrim d/b/a Pat Pilgrim Farms (“Lessee”).

     

     

    WHEREAS,
      Lessor
      is the record title owner of certain tracts of unimproved land in an aggregate
      of one-thousand six-hundred seventy nine and one-half (1,679.5) acres situated
      within the counties of Upshur, Titus and Camp in the State of Texas (as amended
      by Exhibit C
      attached
      below). Such tracts of land shall collectively be referred to as the “Property”
hereinafter.

     

     

    WHEREAS,
      Lessor
      desires to lease the Property to Lessee, and Lessee desires to lease the
      Property from Lessor to improve the Property as Lessee requires, perform
      services for Lessor and to develop the Property in accordance with the terms
      of
      this Lease.

     

     

    NOW,
      THEREFORE,
      in
      consideration of the covenants, conditions and agreements contained in this
      Lease, Lessor and Lessee agree to the following terms and
      conditions:

     

     

    1.
      RENT. Rent to be paid by Lessor shall be as described
      below.

     

     

    2.
      LEASED PREMISES. Lessor
      leases to Lessee and Lessee leases from Lessor for the Lease Term (as defined
      hereafter), in consideration for payment of the rent, and upon the terms,
      conditions and provisions set forth herein the Property, improvements thereon,
      if any (the “Improvements”). The Property and the Improvements are referred to
      herein collectively as the “Premises, as further described in Exhibits
A
      and
B
      and as
      amended in the attached Exhibit C
      attached
      hereto and incorporated herein by reference.

     

     

    Lessee
      has inspected the Premises and accepts its present (as-is) condition unless
      expressly noted otherwise in this Lease. Neither Lessor nor any agent has made
      any express or implied warranties as to the condition of the Premises. Lessee
      must satisfy itself that the Premises are physically suitable to be used as
      Lessee intends by independently investigating all such matters related to the
      use of the Premises. Lessee agrees that it is not relying on any warranty or
      representation made by Lessor, Lessor’s agent or any broker concerning the
      suitability of the Premises for the Lessee’s use.

     

     

    Lessor
      shall deliver possession of the Premises as of the Effective Date
      hereof.

     

    3.
      TERM. 

    

    3.1
      Lease
      Term.
      The term
      of this Lease (the “Lease Term”) shall be for one (1) year, commencing on
      January 1, 2006, and ending on December 31, 2006 (“Lease Expiration Date”),
      unless sooner terminated pursuant to any term or provision hereof.

     

    3.2
      Options.
      Lessee
      shall have an option to extend the Lease Term for two additional terms of one
      (1) year each (each an “Extended Term”). Each such option shall be exercised no
      later than ninety (90) days prior to the last day of the Lease Term or Extended
      Term by written notice to Lessor. Rent for each Extended Term shall be in an
      amount as mutually agreed upon by the parties in writing at the commencement
      of
      each Extended Term. All other terms and conditions of this Lease shall remain
      in
      full force and effect during any Extended Term. 

     

     

    3.3
      Definition.
      As used
      in this Lease, the word “Option” or “Options” has the following meaning: any
      right or option to extend the term of this Lease. 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    3.4
      Option(s)
      Personal.
      Each
      Option granted to Lessee in this Lease is personal to Lessee and may not be
      exercised or be assigned, voluntarily or involuntarily, by or to any person
      or
      entity other than Lessee; provided that, Lessee may freely assign, without
      Lessor’s consent, any Option to any Affiliate (as defined below) of Lessee.
“Affiliate”
means,
      with respect to any individual, partnership, limited liability company,
      association, corporation or other entity (each, a “Person”),
      any
      Person that controls, is controlled by or is under common control with such
      Person, together with any of its and their respective members, partners,
      venturers, directors, officers, stockholders, agents, employees and spouses.
      A
      Person shall be presumed to have control when it possesses the power, directly
      or indirectly, to direct, or cause the direction of, the management or policies
      of another Person, whether through ownership of voting securities, by contract,
      or otherwise.

     

     

    3.5
      Multiple
      Options. If
      Lessee
      has any multiple options to extend or renew this Lease, a later Option cannot
      be
      exercised unless the prior Option to extend or renew this Lease has been so
      exercised. 

     

     

    3.6
      Effect
      of Default on Options.
      Lessee
      shall have no right to exercise an Option, notwithstanding any provision in
      the
      grant of Option to the contrary, (i) during the time commencing from the date
      Lessor gives to Lessee a notice of default pursuant to this Lease and continuing
      until the default alleged in said notice of default is cured, or (ii) during
      the
      period of time commencing on the day after a monetary obligation to Lessor
      is
      due from Lessee and unpaid (without any necessity for notice thereof to Lessee)
      continuing until the obligation is paid, or (iii) at any time after an event
      of
      default described in this Lease (without any necessity of Lessor to give notice
      of such default to Lessee) until such event of default is cured, or (iv) in
      the
      event that Lessor has given to Lessee three or more notices of default under
      this Lease, where a late charge has become payable under this Lease for each
      of
      such defaults, whether or not the defaults are cured, during the twelve
      (12)-month period prior to the time that Lessee intends to exercise such Option.
      

     

     

    3.7
      Delay
      in Possession.
      Notwithstanding said Lease Commencement Date, if for any reason Lessor cannot
      deliver possession of the Premises to Lessee on said date, Lessor shall not
      be
      subject to any liability therefor, nor shall such failure affect the validity
      of
      this Lease or the obligations of Lessee hereunder or extend the term hereof,
      but
      in such case, Lessee shall not be obligated to pay rent until possession of
      the
      Premises is tendered to Lessee; provided further, however, that if Lessor shall
      not have delivered possession of the Premises within one hundred twenty (120)
      days from the Lease Commencement Date, Lessee may, at Lessee's option, by notice
      in writing to Lessor within ten (10) days thereafter, cancel this Lease, in
      which event the parties shall be discharged from all obligations hereunder
      and
      neither party hereto shall have any duty, obligation, responsibility or
      liability to the other hereunder; provided, however, that if such written notice
      of Lessee is not received by Lessor within said ten (10) day period, Lessee's
      right to cancel this Lease hereunder shall terminate and be of no further force
      or effect. 

     

     

    3.8
      Early
      Possession.
      If
      Lessee occupies the Premises prior to said Lease Commencement Date, such
      occupancy shall be subject to all provisions hereof, such occupancy shall not
      advance the termination date, and Lessee shall pay rent for such period at
      the
      initial monthly rates set forth below. 

     

     

    4.
      RENT. 

     

     

    4.1 Rent.
      Subject
      to adjustment, if any, Lessee agrees to pay to Lessor, without offset or
      reduction, payment for the Premises, rent (“Rent”) at the initial rate of $13.00
      per acre for a total annual aggregate Rent of $21,833.50. Such Rent shall be
      required to be paid by Lessee to Lessor in full on or before January 6, 2006.
      In
      the event of an increase in Rent for any Extended Term, Lessee shall be required
      to pay said increased Rent in full on or before the last day of the then
      existing Lease Term.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

        

    4.2 Late
      Payments.
      In the
      event Lessor fails to receive any Rent payment within ten (10) days after the
      date the same is due, a late payment equal to ten percent (10%) of the annual
      Rent due to Lessor shall be charged to Lessee

     

     

    4.3 Additional
      Consideration.
      In
      addition to the payment of Rent, as part of the consideration for this Lease
      as
      an additional rent, Lessee covenants and agrees to bear, pay and promptly
      discharge as they become due and before delinquency all taxes (other than real
      estate property taxes, which shall borne by Lessor), charges, license fees,
      or
      similar extraordinary charges due and payable because of Lessee’s leasehold
      interest in the Premises. Lessee has the right in good faith to contest such
      taxes, assessments, license fees or charges and is obligated to pay such
      contested amount during the contest, plus any penalties and interest imposed
      if
      and when the amount is finally determined to be due.

     

     

    5.
      NOTICES. 

     

     

    All
      notices or correspondence provided for herein shall be effective only if made
      in
      writing, personally delivered with an executed acknowledgment of receipt or
      deposited in the United States mail, certified, postage prepaid, and addressed
      as follows: 

     

    To
      Lessor: 

    

    Pilgrim’s
      Pride Corporation 

    4845
      Highway 271 North

    Pittsburg,
      TX 75686

    Attention:
      Risk Management

    

    To
      Lessee:

    

    Pat
      Pilgrim

    1535
      Loop
      179

    Pittsburg,
      TX 75686

    

     

    Any
      notice shall be deemed delivered five (5) days after notice is mailed or, if
      personally delivered, when acknowledgment of receipt is signed, as provided
      above. By written notice to the other, either party may change its own mailing
      address. 

     

     

    6.
      SALE OF THE PREMISES

     

    6.1
      Notice
      by Lessor of Proposed Sale.
      If
      Lessor desires to sell, transfer, assign, or convey any of the Premises (each,
      a
“Transfer”),
      Lessor shall deliver to Lessee notice of its desire to complete such Transfer
      no
      less than ninety (90) days prior to the intended sale date. At such time, Lessor
      will notify Lessee whether such Transfer will also result in an early lease
      termination date, which may be exercised in its sole discretion or the
      assumption of the Lease by the new owner. In the event the Lease is to be
      terminated at Transfer, Lessor will refund to Lessee the prorata portion of
      the
      Rent for the remainder of the Lease Term and any and all Options for such
      Premises will be cancelled. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    7.
      USE. 

     

    7.1
      Use.
      The
      Premises shall be used and occupied solely and exclusively for Lessee for
      agricultural purposes to grow and harvest any commodities or crops or hay as
      determined by Lessee, or such other use which, in Lessor's sole opinion and
      discretion, is reasonably comparable approved in writing in advance by Lessor
      and for no other purpose. 

     

    7.2
      Compliance
      with Law. 

     

    
      	a.  	
              Lessee
                agrees that it will at all times abide by all applicable laws and
                rules of
                the Environmental Protection Agency, the Texas (or other applicable
                state)
                Commission on Environmental Quality, the Texas (or other applicable
                state)
                Department of Agriculture and any other public agency concerning
                the
                Premises and its use, storage, and disposal of hazardous chemicals,
                fuel
                and/or oil. Lessee further agrees to abide by the manufacturer’s direction
                in regards to its use, storage and disposal of all pesticides, herbicides
                and other chemicals (if such chemicals are being stored on the
                Premises).

            

    

     

    
      	b.  	
              Should
                Lessee fail to keep the Premises clean and free of hazards, Lessor
                may,
                after thirty (30) days written notice, arrange for the clean up of
                the
                littered or hazardous area. Such clean up shall be charged to Lessee
                and
                shall be due and payable within ten (10) days of receipt of Lessor’s
                notice. Lessee shall not use nor permit the use of the Premises in
                any
                manner that will tend to create waste or a nuisance.
                

            

    

     

     

    7.3
      Condition
      of Premises.

     

    
      	a.  	
              Lessor
                shall deliver the Premises to Lessee clean and free of debris (“Broom
                Clean”) on the Effective Date. Lessee shall notify Lessor within thirty
                (30) days of the Effective Date of any issues or items of non-compliance
                related to this matter and failure to do so will be Lessee’s
                acknowledgement that Lessor has effectively complied with this section
                and
                that such Premises are clean and free of debris.
                

            

    

    

     

    
      	b.  	
              Except
                as otherwise provided in this Lease, Lessee hereby accepts the Premises
                in
                the “as is” condition existing on the Lease Commencement Date, subject to
                all applicable zoning, municipal, county and state laws, ordinances
                and
                regulations governing and regulating the use of the Premises, and
                any
                covenants or restrictions of record, and accepts this Lease subject
                thereto and to all matters disclosed thereby and by any exhibits
                attached
                hereto. 

            

    

     

    8.
      ALTERATIONS AND ADDITIONS. 

     

     

    
      	a.  	
              Lessee
                shall not, without Lessor's prior written consent, make any alterations,
                improvements, additions, or Utility Installations (as defined hereafter)
                in, on or about the Premises, except for nonstructural alterations
                not
                exceeding $50,000.00 in cumulative costs during the Lease Term and
                any
                Extended Term(s). In any event, whether or not in excess of $50,000.00
                in
                cumulative cost, Lessee shall make no change or alteration to the
                exterior
                of the building(s) comprising the Improvements without Lessor's prior
                written consent. As used in this paragraph, the term “Utility
                Installation” shall mean air lines, power panels, electrical distribution
                systems, lighting fixtures, space heaters, air conditioning, plumbing,
                and
                fencing. Lessor may require that Lessee remove any or all of said
                alterations, improvements, additions or Utility Installations at
                the
                expiration of the Lease Term or any Extended Term(s), and restore
                the
                Premises to their prior condition. Should Lessee make any alterations,
                improvements, additions or Utility Installations without the prior
                written
                approval of Lessor, Lessor may require that Lessee remove any or
                all of
                the same. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	b.  	
              Any
                alterations, improvements, additions or Utility Installations in,
                on, or
                about the Premises that Lessee shall desire to make and which requires
                the
                consent of the Lessor shall be presented to Lessor in written form,
                with
                proposed detailed plans and specifications. If Lessor shall give
                its
                written consent, the consent shall be deemed conditioned upon Lessee
                acquiring all applicable permits to do so from appropriate governmental
                agencies, the furnishing of a copy thereof to Lessor prior to the
                commencement of the work and the compliance by Lessee of all conditions
                of
                said permit in a prompt and expeditious manner.

            

    

     

     

    
      	c.  	
              Lessee
                shall pay, when due, all claims for labor or materials furnished
                or
                alleged to have been furnished to or for Lessee at or for use in
                the
                Premises, which claims are or may be secured by any mechanics' or
                materialmen's liens against the Premises or any interest therein.
                Lessee
                shall give Lessor not less than ten (10) days' notice prior to the
                commencement of any work in the Premises, and Lessor shall have the
                right
                to post notices of nonresponsibility in or on the Premises as provided
                by
                law. If Lessee shall, in good faith, contest the validity of any
                such
                lien, claim or demand, then Lessee shall, at its sole expense defend
                itself and Lessor against the same and shall pay and satisfy any
                such
                adverse judgment that may be rendered thereon before the enforcement
                thereof against the Lessor or the Premises, upon the condition that
                if
                Lessor shall require, Lessee shall furnish to Lessor a surety bond
                satisfactory to Lessor in an amount equal to such contested lien
                claim or
                demand indemnifying Lessor against liability for the same and holding
                the
                Premises free from the effect of such lien or claim. In addition,
                Lessor
                may require Lessee to pay Lessor's reasonable attorneys' fees and
                costs in
                participating in such action if Lessor shall decide it is in its
                best
                interest to do so. 

            

    

     

     

    
      	d.  	
              Unless
                Lessor requires their removal, as set forth in Paragraph 8.a. of
                this
                Lease, all alterations, improvements, additions and Utility Installations
                (whether or not such Utility Installations constitute trade fixtures
                of
                Lessee), which may be made on the Premises, shall become the property
                of
                Lessor and remain upon and be surrendered with the Premises at the
                expiration of the term. Notwithstanding the provisions of this paragraph,
                Lessee's machinery and equipment, other than that which is affixed
                to the
                Premises so that it can be removed without material damage to the
                Premises, shall remain the property of Lessee and may be removed
                by Lessee
                subject to the provisions of Paragraph 8.a. of this Lease.
                

            

    

     

     

    9.
      INDEMNIFICATION 

     

    9.1
      Lessor's
      Obligation. Lessor
      shall indemnify, defend and hold Lessee (and anyone claiming under Lessee),
      harmless from and against any loss, damage, claim, liability, and cost
      (including reasonable attorneys’ fees and disbursements) arising from
      (a) any default, breach or violation by Lessor under this Lease,
      (b)  any negligent or other tortious act or omission of Lessor, its
      employees or agents with respect to the Premises, or (c) any conditions or
      contamination existing prior to the Effective Date at, on or emanating from
      or
      onto the Premises. If Lessee recovers from the insurance carried pursuant to
      this Lease, Lessor is hereby released from this indemnification with respect
      to
      such party to the extent of such proceeds.
      

     

    9.2
      Lessee's
      Obligation.
      In
      addition to the indemnification requirements as set forth below in Section
      34,
Lessee
      shall indemnify, defend and hold Lessor, its Affiliates, and their respective
      members, partners, venturers, directors, officers, stockholders, agents,
      employees, spouses, legal representatives, successors and assigns (collectively,
      “Lessor
      Affiliates”),
      harmless from and against any loss, damage, claim, liability, and cost
      (including reasonable attorneys’ fees and disbursements) arising from
      (a) any default, breach or violation by Lessee under this Lease, or
      (b) any negligent or other tortious act or omissions of Lessee, its
      employees or agents with respect to the Premises. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    10.
      INSURANCE REQUIREMENTS. 

     

    10.1
      The
      Parties agree to maintain in effect insurance coverage with reputable insurance
      companies covering worker’s compensation and employer liability (or other
      reasonable equivalent such as excess employer’s indemnity insurance or worker’s
      compensation) excess insurance, auto liability, commercial general liability,
      including product liability / completed operations, all with such limits as
      are
      sufficient to protect each other from the liabilities insured against by such
      coverage. Each Party’s insurance described herein shall be primary and not
      contributory with the other Party’s insurance with respect to obligations
      resulting from the negligence of each other.

    

    Lessee
      shall 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 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

     

    10.2.
      Lessee shall also be required to maintain Property, Fire and Extended Coverage
      Insurance in an amount equal to one hundred percent (100%) of the full
      replacement value of the Improvements and in an amount sufficient to reimburse
      Lessee for all of its equipment, trade fixtures, inventory, fixtures and other
      personal property located on or in the Premises including leasehold improvements
      hereinafter constructed or installed.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    10.3
      Exemption
      of Lessor from Liability.
      Unless
      caused by the gross negligence of Lessor, Lessee hereby agrees that Lessor
      shall
      not be liable for injury to Lessee's business or any loss of income or profit
      therefrom or for damage to the goods, wares, merchandise or other property
      of
      Lessee, Lessee's employees, invitees, customers, or any other person in or
      about
      the Premises, nor shall Lessor be liable for injury to the person of Lessee,
      Lessee's employees, agents or contractors, as a result of any condition of
      the
      Premises or the Building, whether such damage or injury is caused by or results
      from fire, steam, electricity, gas, water or rain, or from the breakage,
      leakage, obstruction or other defects of pipes, sprinklers, wires, appliances,
      plumbing, air conditioning or lighting fixtures, or from any other cause in
      or
      about the Premises, whether the said damage or injury results from conditions
      arising in the Premises or in other portions of the building of which the
      Premises are a part, or from other sources or places and regardless of whether
      the cause of such damage or injury or the means of repairing the same is
      inaccessible to Lessee. 

     

     

    11.
      DAMAGE OR DESTRUCTION. 

     

     

    11.1
      Total
      Destruction.
      If at
      any time during the term of this Lease there is damage, whether or not an
      insured loss, (including destruction required by any authorized public
      authority), which totally destroys the Premises, or renders the Premises unfit
      for the purposes set forth herein, this Lease shall automatically terminate
      as
      of the date of such total destruction; provided, that, Lessee shall have the
      right within ten (10) days after the receipt of such notice to give written
      notice to Lessor of Lessee's intention to repair such damage at Lessee's
      expense, without reimbursement from Lessor, in which event this Lease shall
      continue in full force and effect, and Lessee shall proceed to make such repairs
      as soon as reasonably possible. If Lessee does not give such notice within
      such
      ten (10) day period this Lease shall be canceled and terminated as of the date
      of the occurrence of such damage.

     

     

    11.2
      Termination,
      Advance Payments.
      Upon
      termination of this Lease pursuant to this paragraph, an equitable adjustment
      shall be made concerning advance rent and any advance payments made by Lessee
      to
      Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's security
      deposit as has not theretofore been applied by Lessor. 

     

     

    11.3
      Waiver.
      Lessee
      waives the provisions of any statutes which relate to termination of leases
      when
      leased property is destroyed and agree that such event shall be governed by
      the
      terms of this Lease. 

     

     

    12.
      TAXES. 

     

    12.1
      Real
      Property Taxes.
      Lessor
      shall pay prior to delinquency all taxes assessed against and levied upon the
      Premises; however, with respect to any Property added or Improvements made
      by
      Lessee to such Premises after the Effective Date, Lessee alone shall pay such
      tax. If the right is given to pay any of the taxes, assessments or other
      impositions which Lessee is herein obligated to pay either in one sum or in
      installments, Lessee shall pay such accounts in one payment prior to
      delinquency. In
      no
      event, however, shall Lessee be required to pay any franchise, income,
      inheritance, estate, succession, and transfer or gift taxes imposed upon Lessor,
      or its successors or assigns.

     

    12.2
      Personal
      Property Taxes.
      Lessee
      shall pay prior to delinquency all taxes assessed against and levied upon trade
      fixtures, furnishings, equipment and all other personal property of Lessee
      contained in the Premises or elsewhere. Lessee shall cause said trade fixtures,
      furnishings, equipment and all other personal property to be assessed and billed
      separately from the real property of Lessor. 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    13.
      SERVICES,
      UTILITIES.
      Services and utilities shall be furnished and the cost borne by Lessee. If
      any
      such services are not separately metered to Lessee, Lessee shall pay a
      reasonable proportion to be determined by Lessor of all charges jointly metered
      with other premises. In the event of failure by Lessor to furnish, in a
      satisfactory manner, any of the services and utilities to the Premises for
      which
      Lessor is responsible, if any, Lessee may furnish the same if Lessor has not
      undertaken to correct such failure within five (5) days after written notice,
      and, in addition to any other remedy Lessee may have, may deduct the amount
      thereof, from Monthly Rent. 

     

     

    14.
      MORTGAGING THE LEASEHOLD ESTATE, ASSIGNMENT AND SUBLETTING. 

     

    141
      Limitations
      of Mortgages.
      Lessee
      shall have no right to mortgage his leasehold estate and his interest in the
      Premises by mortgage or deed of trust. No mortgagee or trustee can acquire
      any
      rights in the Premises except as granted to Mortgagor by the Lessor.

    

    14.2
      Assignment
      and Subletting. Lessee
      shall not voluntarily or by operation of law assign, transfer, mortgage, sublet,
      or otherwise transfer or encumber all or any part of Lessee's interest in this
      Lease or in the Premises, without Lessor's prior written consent, which consent
      may be withheld, delayed or conditioned, in Lessor’s sole determination. Lessor
      shall respond to Lessee's request for consent hereunder in a timely manner
      and
      any attempted assignment, transfer, mortgage, encumbrance or subletting without
      such consent shall be void, and shall constitute a breach of this Lease.

     

    14.3
      No
      Release of Lessee.
      Regardless of Lessor's consent, no subletting or assignment shall release Lessee
      of Lessee's obligation or alter the primary liability of Lessee to pay the
      Rent
      and to perform all other obligations to be performed by Lessee hereunder. The
      acceptance of Rent by Lessor from any other person shall not be deemed to be
      a
      waiver by Lessor of any provision hereof. Consent to one assignment or
      subletting shall not be deemed consent to any subsequent assignment or
      subletting. In the event of default by any assignee of Lessee or any successor
      of Lessee, in the performance of any of the terms hereof, Lessor may proceed
      directly against Lessee without the necessity of exhausting remedies against
      such assignee. Lessor may consent to subsequent assignments or subletting of
      this Lease with assignees of Lessee, without notifying Lessee, or any successor
      of Lessee, and without obtaining its or their consent thereto and such action
      shall not relieve Lessee of liability under this Lease. Lessor may not consent
      to subsequent amendments or modifications to this Lease without the prior
      written consent of Lessee, which consents shall not be unreasonably withheld,
      delayed or conditioned.

     

     

    15.
      DEFAULTS; REMEDIES. 

     

    15.1
      Defaults
      by Lessee.
      The
      occurrence of any one or more of the following events shall constitute a
      material default and breach of this Lease by Lessee: 

     

    
      	a.  	
              The
                vacating or abandonment of the Premises by Lessee.
                

            

    

     

     

    
      	b.  	
              The
                failure by Lessee to make any payment of Rent as set forth
                herein

            

    

     

     

    
      	c.  	
              The
                failure by Lessee to observe or perform any of the covenants, conditions
                or provisions of this Lease to be observed or performed by Lessee,
                other
                than described in paragraph (b) above, where such failure shall continue
                for a period of thirty (30) days after written notice thereof from
                Lessor
                to Lessee; provided, however, that if the nature of Lessee's default
                is
                such that more than thirty (30) days are reasonably required for
                its cure,
                then Lessee shall not be deemed to be in default if Lessee commenced
                such
                cure within said 30-day period and thereafter diligently prosecutes
                such
                cure to completion. 

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	d.  	
              The
                making by Lessee of (i) any general arrangement or assignment for
                the
                benefit of creditors; (ii) Lessee becomes a “debtor” as defined in 11
                U.S.C. 101 or any successor statute thereto (unless, in the case
                of a
                petition filed against Lessee, the same is dismissed within sixty
                (60)
                days); (iii) the appointment of a trustee or receiver to take possession
                of substantially all of Lessee's assets located at the Premises or
                of
                Lessee's interest in this Lease, where possession is not restored
                to
                Lessee within thirty (30) days; or (iv) the attachment, execution
                or other
                judicial seizure of substantially all of Lessee's assets located
                at the
                Premises or of Lessee's interest in this Lease, where such seizure
                is not
                discharged within thirty (30) days. Provided, however, in the event
                that
                any provision of this paragraph is contrary to any applicable law,
                such
                provision shall be of no force or effect.

            

    

     

     

    
      	e.  	
              The
                discovery by Lessor that any financial statement given to Lessor
                by
                Lessee, any assignee of Lessee, any sub Lessee of Lessee, any successor
                in
                interest of Lessee or any guarantor of Lessee's obligation hereunder,
                and
                any of them, was materially false. 

            

    

     

     

    15.2
      Remedies.
      In the
      event of any such material default or breach by Lessee, Lessor may at any time
      thereafter, with or without notice or demand and without limiting Lessor in
      the
      exercise of any right or remedy which Lessor may have by reason of such default
      or breach; 

     

     

    
      	a.  	
              Terminate
                Lessee's right to possession of the Premises by any lawful means,
                in which
                case this Lease shall terminate and Lessee shall immediately surrender
                possession of the Premises to Lessor. In such event Lessor shall
                be
                entitled to recover from Lessee all damages incurred by Lessor by
                reason
                of Lessee's default including, but not limited to, the cost of recovering
                possession of the Premises; expenses of reletting, including necessary
                renovation and alteration of the Premises, and reasonable attorneys'
                fees;
                the worth at the time of award by the court having jurisdiction thereof
                of
                the amount by which the unpaid rent for the balance of the term after
                the
                time of such award exceeds the amount of such rental loss for the
                same
                period that Lessee proves could be reasonably avoided.
                

            

    

     

     

    
      	b.  	
              Maintain
                Lessee's right to possession in which case this Lease shall continue
                in
                effect whether or not Lessee shall have abandoned the Premises. In
                such
                event Lessor shall be entitled to enforce all of Lessor's rights
                and
                remedies under this Lease, including the right to recover the rent
                as it
                becomes due hereunder. 

            

    

     

     

    
      	c.  	
              Pursue
                any other right or remedy now or hereafter available to Lessor under
                the
                laws or judicial decisions of the State of Texas. Unpaid installments
                of
                Monthly Rent and other unpaid monetary obligations of Lessee under
                the
                terms of this Lease shall bear interest from the date due at the
                maximum
                rate then allowable by law. 

            

    

     

     

    15.3
      Default
      by Lessor.
      Lessor
      shall not be in default unless Lessor fails to perform obligations required
      of
      Lessor within a reasonable time, but in no event later than thirty (30) days
      after written notice by Lessee to Lessor and to the holder of any first mortgage
      or deed of trust covering the Premises whose name and address shall have
      theretofore been furnished to Lessee in writing, specifying wherein Lessor
      has
      failed to perform such obligation; provided, however, that if the nature of
      Lessor's obligation is such that more than thirty (30) days are required for
      performance then Lessor shall not be in default if Lessor commences performance
      within such 30-day period and thereafter diligently prosecutes the same to
      completion. 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    16.
      CONDEMNATION.
      If the
      Premises or any portion thereof are taken under the power of eminent domain,
      or
      sold under the threat of the exercise of said power (all of which are herein
      called “condemnation”), this Lease shall terminate as to the part so taken as of
      the date the condemning authority takes title or possession, whichever first
      occurs. If a portion of the land area of the Premises or the building of the
      Premises is taken by condemnation, and such taking renders the Premises
      substantially or entirely unfit for use as set forth herein, in Lessee’s
      reasonable discretion, Lessee may, at Lessee's option, to be exercised in
      writing only within ten (10) days after Lessor shall have given Lessee written
      notice of such taking (or in the absence of such notice, within ten (10) days
      after the condemning authority shall have taken possession) terminate this
      Lease
      as of the date the condemning authority takes such possession. If Lessee does
      not terminate this Lease in accordance with the foregoing, this Lease shall
      remain in full force and effect as to the portion of the Premises remaining,
      except that the rent shall be reduced in the proportion that the floor area
      of
      the building taken bears to the total floor area of the building situated on
      the
      Premises. No reduction of rent shall occur if the only area taken is that which
      does not have a building located thereon. Any award for the taking of all or
      any
      part of the Premises under the power of eminent domain or any payment made
      under
      threat of the exercise of such power shall be the property of Lessor, whether
      such award shall be made as compensation for diminution in value of the
      leasehold or for the taking of the fee, or as severance damages; provided,
      however, that Lessee shall be entitled to any award for loss of or damage to
      Lessee's trade fixtures and removable personal property. If this Lease is not
      terminated by reason of such condemnation, Lessor shall to the extent of
      severance damages received by Lessor in connection with such condemnation,
      repair any damage to the Premises caused by such condemnation except to the
      extent that Lessee has been reimbursed therefor by the condemning authority.
      Lessee shall pay any amount in excess of such severance damages required to
      complete such repair. 

     

     

    17.
      BROKER'S FEE.
      Lessor
      and Lessee represent and warrant that they have not engaged any broker, finder
      or other person who would be entitled to any commission or fees in respect
      of
      the negotiation, execution or delivery of this lease, and Lessor and Lessee
      shall indemnify and hold harmless the other party against any loss, cost,
      liability or expense incurred by either of them as a result of any claim
      asserted by any such broker, finder or other person on the basis of any
      arrangements or agreements made or alleged to have been made by or on behalf
      of
      such party. 

     

     

    18.
      ESTOPPEL CERTIFICATE. 

     

     

    
      	a.  	
              Lessee
                and Lessor shall at any time and from time to time upon not less
                than ten
                (10) days' prior written notice from the other party, execute, acknowledge
                and deliver to the requesting party a statement written on Lessor's
                estoppel certificate form reasonably acceptable to Lessor and Lessee
                (i)
                certifying that this Lease is unmodified and in full force and effect
                (or,
                if modified, stating the nature of such modification and certifying
                that
                this Lease, as so modified, is in full force and effect) and the
                date to
                which the rent and other charges are paid in advance, if any, and
                (ii)
                acknowledging that there are not, to the knowledge of the party being
                requested to deliver the statement, any uncured defaults on the part
                of
                requesting party, or specifying such defaults if any are claimed.
                Any such
                statement may be conclusively relied upon by any prospective purchaser
                or
                encumbrancer of the Premises, or any prospective assignee or sub
                Lessee.
                

            

    

     

     

    
      	b.  	
              If
                Lessor desires to finance, refinance, or sell the Premises, or any
                part
                thereof, Lessee hereby agrees to deliver to any lender or purchaser
                designated by Lessor such financial statements of Lessee as may be
                reasonably required by such lender or purchaser. Such statements
                shall
                include the past three (3) years' financial statements of Lessee.
                All such
                financial statements shall be received by Lessor and such lender
                or
                purchaser in confidence and shall be used only for the purposes herein
                set
                forth. 

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    19.
      SEVERABILITY.
      The
      invalidity of any provision of this Lease as determined by a court of competent
      jurisdiction, shall in no way affect the validity of any other provision hereof.
      

     

     

    20.
      INTEREST ON PAST-DUE OBLIGATIONS.
      Except
      as expressly herein provided, any amount due to Lessor not paid when due shall
      bear interest at the maximum rate then allowable by law from the date due.
      Payment of such interest shall not excuse or cure any default by Lessee under
      this Lease, provided, however, that interest shall not be payable on late
      charges incurred by Lessee nor on any amounts upon which late charges are paid
      by Lessee. 

     

     

    21.
      TIME OF ESSENCE.
      Time is
      of the essence with regard to each and every term of this Lease.

     

     

    22.
      WAIVERS.
      No
      waiver by Lessor or any provision hereof shall be deemed a waiver of any other
      provision hereof or of any subsequent breach by Lessee of the same or any other
      provision. Lessor's consent to, or approval of, any act shall not be deemed
      to
      render unnecessary the obtaining of Lessor's consent to or approval of any
      subsequent act by Lessee. The acceptance of rent hereunder by Lessor shall
      not
      be a waiver of any preceding breach by Lessee of any provision hereof, other
      than the failure of Lessee to pay the particular rent so accepted, regardless
      of
      Lessor's knowledge of such preceding breach at the time of acceptance of such
      rent. 

     

     

    23.
      HOLDING OVER. If
      Lessee, with Lessor's consent, remains in possession of the Premises or any
      part
      thereof after the expiration of the term hereof, such occupancy shall be a
      tenancy from month to month upon all the provisions of this Lease pertaining
      to
      the obligations of Lessee, with the exception of rent which shall be at 150%
      of
      the then current rent, but all options and rights of first refusal, if any,
      granted upon the terms of this Lease shall be deemed terminated and be of no
      further effect during said month to month tenancy. 

     

     

    24.
      CUMULATIVE REMEDIES.
      No
      remedy or election hereunder shall be deemed exclusive but shall, wherever
      possible, be cumulative with all other remedies at law or in equity.

     

     

    25.
      COVENANTS AND CONDITIONS.
      Each
      provision of this Lease performable by Lessee shall be deemed both a covenant
      and a condition. 

     

    26.
      BINDING EFFECT; CHOICE OF LAW. Subject
      to any provisions hereof restricting assignment or subletting by Lessee and
      subject to the provisions of Paragraph 16 of this Lease, this Lease shall bind
      the parties, their personal representatives, successors and assigns. This Lease
      shall be governed by the laws of the State of Texas. 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. 

     

    27.
      SUBORDINATION. 

     

     

    
      	a.  	
              This
                Lease, at Lessor's option, shall be subordinate to any ground lease,
                mortgage, deed of trust, or any other hypothecation or security now
                or
                hereafter placed upon the real property of which the Premises are
                a part
                and to any and all advances made on the security thereof and to all
                renewals, modifications, consolidations, replacements and extensions
                thereof. Notwithstanding such subordination, Lessee's right to quiet
                possession of the Premises shall not be disturbed if Lessee is not
                in
                default and so long as Lessee shall pay the rent and observe and
                perform
                all of the provisions of this Lease, unless this Lease is otherwise
                terminated pursuant to its terms. If any mortgagee, trustee or ground
                lessor shall elect to have this Lease prior to the lien of its mortgage,
                deed of trust or ground lease, and shall give written notice thereof
                to
                Lessee, this Lease shall be deemed prior to such mortgage, deed of
                trust,
                or ground lease, whether this Lease is dated prior or subsequent
                to the
                date of said mortgage, deed of trust, or ground lease, or the date
                of
                recording thereof. 

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	b.  	
              Lessee
                agrees to execute any reasonable documents required to effectuate
                an
                attornment, a subordination or to make this Lease prior to the lien
                of any
                mortgage, deed of trust or ground lease, as the case may be.
                

            

    

     

     

    28.
      ATTORNEYS' FEES.
      If
      either party brings an action to enforce the terms hereof or declare rights
      hereunder, the prevailing party in any such action, on trial or appeal, shall
      be
      entitled to reasonable attorneys' fees to be paid by the losing party as fixed
      by the court. 

     

     

    29.
      LESSOR'S ACCESS.
      Lessor
      and Lessor's agents shall have the right to enter the Premises at reasonable
      times for the purpose of inspecting the same, showing the same to prospective
      purchasers, lenders, or lessees, and making such alterations, repairs,
      improvements or additions to the Premises or to the building of which they
      are a
      part as Lessor may deem necessary or desirable. Lessor may at any time place
      on
      or about the Premises any ordinary “For Sale” signs and Lessor may at any time
      during the last one hundred twenty (120) days of the term hereof place on or
      about the Premises any ordinary “For Lease” signs, all without rebate of rent or
      liability to Lessee. 

     

     

    30.
      MERGER.
      The
      voluntary or other surrender of this Lease by Lessee, or a mutual cancellation
      thereof, or a termination by Lessor, shall not work a merger, and shall, at
      the
      option of Lessor, terminate all or any existing subtenancies or may, at the
      option of Lessor, operate as an assignment to Lessor of any or all of such
      subtenancies. 

     

     

    31.
      QUIET POSSESSION.
      Upon
      Lessee paying the rent for the Premises and observing and performing all of
      the
      covenants, conditions and provisions on Lessee's part to be observed and
      performed hereunder, Lessee shall have quiet possession of the Premises for
      the
      entire term hereof subject to all of the provisions of this Lease. The
      individuals executing this Lease on behalf of Lessor represent and warrant
      to
      Lessee that they are fully authorized and legally capable of executing this
      Lease on behalf of Lessor and that such execution is binding upon all parties
      holding an ownership interest in the Premises. 

     

     

    32.
      EASEMENTS.
      Lessor
      reserves to itself the right, from time to time, to grant such easements, rights
      and dedications that Lessor deems necessary or desirable, and to cause the
      recordation of plats and restrictions, so long as such easements, rights,
      dedications, plats and restrictions do not unreasonably interfere with the
      use
      of the Premises by Lessee. Lessee shall sign any of the aforementioned documents
      upon request of Lessor and failure to do so shall constitute a material breach
      of this Lease. 

     

     

    33.
      AUTHORITY.
      If
      Lessee is a corporation, trust, or general or limited partnership, each
      individual executing this Lease on behalf of such entity represents and warrants
      that he or she is duly authorized to execute and deliver this Lease on behalf
      of
      said entity. If Lessee is a corporation, trust or partnership, Lessee shall,
      within thirty (30) days after execution of this Lease, deliver to Lessor
      evidence of such authority satisfactory to Lessor. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    34.
      EMISSIONS; STORAGE, USE AND DISPOSAL OF MATTER. 

     

    34.1
      Definitions.
      For
      purposes of this paragraph, the following terms shall be defined as set forth
      herein: 

     

    
      	a.  	
              The
                term “Hazardous Material” shall mean include, but shall not be limited to
                (i) any material, substance or waste which is or hereafter shall
                be
                listed, regulated or defined by Applicable Law to be hazardous, acutely
                hazardous, extremely hazardous, radioactive toxic, or dangerous;
                (ii)
                asbestos or asbestos-containing materials; (iii) polychlorinated
                biphenyls
                (PCBs); (iv) radon gas; (v) laboratory wastes; (vi) experimental
                products,
                including genetically engineered microbes; and (vii) petroleum, natural
                gas, or other petroleum product. 

            

    

     

     

    
      	b.  	
              The
                term “Applicable Law” shall include federal, state and local statutes,
                regulations, rules, ordinances, and all other governmental requirements.
                

            

    

     

     

    34.2
      Compliance
      and Response.
      During
      the term of this Lease: 

     

     

    
      	a.  	
              Lessee
                shall comply with Applicable Law in all respects, including, but
                not
                limited to, (i) acquisition of and compliance with all permits, licenses,
                orders, requirements, approvals, plans and authorizations which are
                or may
                become necessary for conduct of Lessee's operations on the Premises;
                (ii)
                compliance with all regulatory requirements relating to such operations
                or
                the substances and equipment used therein or the emissions, emanations
                and
                wastes generated thereby; and (iii) reporting, investigation, and
                remediation of, or other response to the exposure or potential exposure,
                of any person to, or the emission, discharge or other release of
                any
                Hazardous Material into the Premises or the environment.
                

            

    

     

     

    
      	b.  	
              Lessee
                shall promptly respond to and remedy (by removal and proper disposal
                or
                such other methods as shall be reasonably required) to the satisfaction
                of
                applicable governmental agencies any release or discharge of any
                Hazardous
                Material connected with Lessee's operation or Lessee's presence on
                the
                Premises. All such action shall be done in Lessee's name, and at
                Lessee's
                sole cost and expense. For purposes of this paragraph (b), the term
                “respond” shall include, but not be limited to, the investigation of
                environmental conditions, the preparation of feasibility reports
                or
                remedial plans, and the performance of any cleanup, remediation,
                containment, maintenance, monitoring or restoration work. Any such
                actions
                shall be performed in a good, safe, workmanlike manner and shall
                minimize
                any impact on the businesses or operations conducted at the Premises.
                In
                its discretion, Lessor may, but shall not be required to, enter the
                Premises personally or through its agents, consultants or contractors
                and
                perform all or any part of the response activity or remedial action
                which
                it feels is reasonably necessary to comply with the terms of this
                Lease,
                and shall be reimbursed for its costs thereof and for any liabilities
                resulting therefrom. 

            

    

     

     

    
      	c.  	
              Lessee
                will promptly notify Lessor of Lessee's receipt of any notice, request,
                demand, inquiry or order, whether oral or written, from any government
                agency or any other individual or entity relating in any way to the
                presence or possible presence of any Hazardous Material on, in, under
                or
                near the Premises or the Lessee's compliance with, or failure to
                comply
                with, Applicable Law. Receipt of such notice shall not be deemed
                to create
                any obligation on the part of Lessor to defend or otherwise respond
                to any
                such notification. 

            

    

     

     

    
      	d.  	
              Promptly
                upon discovery thereof, Lessee will notify Lessor of the discovery
                of any
                release, discharge, or emission of any Hazardous Material or of the
                existence of any other condition or occurrence which may constitute
                or
                pose a significant presence or potential hazard to human health and
                safety
                or to the environment, whether or not such event or discovery necessitates
                any report to any other person or government agency.
                

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    34.3
      Other
      Emissions.
      Lessee
      shall not: 

     

    
      	a.  	
              Permit
                any vehicle on the Premises to emit exhaust which is in violation
                of any
                Applicable Law; 

            

    

     

     

    
      	b.  	
              Create,
                or permit to be created, any sound pressure level which will interfere
                with the quiet enjoyment of any real property adjacent to the Premises,
                or
                which will create a nuisance or violate any Applicable Law;
                

            

    

     

     

    
      	c.  	
              Transmit,
                receive, or permit to be transmitted or received, any electromagnetic,
                microwave or other radiation which is harmful or hazardous to any
                person
                or property in, on or about the Premises, or anywhere else, or which
                interferes with the operation of any electrical, electronic, telephonic
                or
                other equipment wherever located, whether on the Premises or anywhere
                else; 

            

    

     

     

    
      	d.  	
              Create,
                or permit to be created, any ground or building vibration that is
                discernible outside the Premises; and

            

    

     

     

    
      	e.  	
              Produce,
                or permit to be produced, any intense glare, light or heat except
                within
                an enclosed or screened area and then only in such manner that the
                glare,
                light or heat shall not be discernible outside the Premises.
                

            

    

     

     

    34.4
      Indemnification.
      Lessee
      shall pay for all costs associated with, and defend (with attorneys reasonably
      satisfactory to Lessor), indemnify and hold harmless Lessor from, claims,
      damages, expenses, encumbrances, fees, fines, penalties or costs (including,
      but
      not limited to, reasonable attorneys' fees; the costs of notice to any other
      person; the costs of environmental or technical risk assessment; any cleanup
      or
      remedial costs; the costs of any monitoring, sampling or analysis; and any
      diminution in property value or losses due to non-rentability arising out of
      or
      in any way connected with the presence of any Hazardous Material on the Premises
      or Lessee's alleged violation of Applicable Law), any
      storage, use or distribution of Hazardous Materials or chemicals, or “run-off”
(i.e. the free flow of chemicals, chemical run-off or refuse, or emission of
      chemicals in a gaseous or non-tangible form), from the Premises to other areas
      of adjacent land or land within a reasonable proximity to the Premises) that
      causes any loss, damage or liability to the Lessor Affiliates or any other
      third
      party guest, invitee, or person on, or within a reasonable area of proximity
      to
      the Premises. 

     

     

    as
      a
      result of a breach by Lessee of any of its covenants, representations or
      warranties under this paragraph 34. This obligation shall not apply, if and
      to
      the extent that (a) such claims, damages, expenses, encumbrances, fees, fines,
      penalties, or costs arose solely out of conditions existing on the Premises
      prior to the commencement of Lessee's first possession of the Premises or
      conditions created on the Premises after Lessee ceases to occupy the Premises;
      and (b) Lessee did not violate any Applicable Law or act negligently with
      respect to, or otherwise contribute to, the condition or the hazard posed by
      the
      condition. 

     

     

    34.5
      Survival.
      The
      duties set forth in this paragraph shall survive the termination of this Lease.
      

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    34.6
      Disposal
      of Other Matter. 

     

     

    
      	a.  	
              Refuse
                Disposal. Lessee shall not keep any trash, garbage, waste or other
                refuse
                on the Premises except in sanitary containers and shall regularly
                and
                frequently remove and dispose of the same from the Premises. Lessee
                shall
                keep all incinerators, containers or other equipment used for storage
                or
                disposal of such matter in a clean and sanitary condition, and shall
                promptly dispose of all other waste.

            

    

     

     

    
      	b.  	
              Sewage
                Disposal. Lessee shall properly dispose of all sanitary sewage and
                shall
                not use the sewage disposal system (i) for the disposal of anything
                except
                sanitary sewage, or (ii) in excess of the lesser of the amount allowed
                by
                the sewage treatment works, or permitted by any governmental entity.
                Lessee shall keep the sewage disposal system free of all obstructions
                and
                in good operating condition. 

            

    

     

     

    35. DISPUTE
      RESOLUTION.

     

    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.

    

    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.

    

    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.

    

    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.

    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.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    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.

     

    The
      parties hereto have executed this Lease as of the date first above set
      forth.

     

    LESSOR:  PILGRIM’S
      PRIDE CORPORATION

    

    By:
      /s/
      Richard A. Cogdill  

    Name:     

    Title:     

    

    

    LESSEE:      PAT
      PILGRIM d/b/a PAT PILGRIM FARMS

     

     

    By:
      /s/
      Pat Pilgrim   

    Name:
      Pat
      Pilgrim   

    Title:
      Owner    

    
      
        
        

      

      
        16

        
          

        

      

       

    

    
      
        Exhibit
          A

        
           

          
            
              CAMP.
                TEXAS                                                                                                                                                                                                                                    
Form
                Approved - OMB No. 0560-0004

              FSA-578
                (Producer Print)                             REPORT
                OF ACREAGE
PROGRAM                                    
                                   YEAR
                2005

                                                                                                            
       DATE:
                11-17-2005

            

          

          
            "A"

          

        

      
        
          Producer
            Name and Address ID

          

          PATRICK
            W
            PILGRIM 9599

          1535
            LOOP
            179

          PITTSBURG,
            TX 75686-3503

          

          
            	
                    NOTE: The
                      following statements are made in accordance with the Privacy
                      Act of 1974(5
                      USC 552a). The Agricultural Adjustment Act of 1938, as amended,
                      and the
                      Agricultural Act of 1949, as amended, authorized the collection
                      of the
                      following data. The data will be used to determine eligibility
                      for
                      assistance. Furnishing the data is voluntary, however, without
                      it
                      assistance cannot be provided. The data may be furnished to
                      any agency
                      responsible for enforcing the provisions of the Acts.

                  
	
                    Public
                      reporting burden for this collection of information is estimated
                      to
                      average 15 minutes per response, including the time for reviewing
                      instructions, searching existing data sources, gathering and
                      maintaining
                      the data needed, and completing and reviewing the collection
                      of
                      information. Send comments regarding this burden estimate,
                      or any other
                      aspect of this collection of information, including suggestions
                      for
                      reducing this burden, to the Department of Agriculture, Clearance
                      Officer,
                      Ag Box 7630, Washington, D.C. 20250, and to the Office of Management
                      and
                      Budget. Paperwork Reduction Project (OMB No. 0560-0004). Washington,
                      D.C.
                      20503. RETURN THIS COMPLETED FORM TO YOUR FSA COUNTY
                      OFFICE.

                  
	
                     

                    Farm
                      

                     

                     

                    Number

                     

                  	
                     

                    Tract
                      

                     

                     

                    Number

                     

                  	
                     

                    CLU/
                      Field

                     

                  	
                     

                    Ir
                      

                     

                     

                    Pr

                     

                  	
                     

                     

                     

                     

                    C/C

                     

                  	
                     

                    Var/

                     

                     

                    Type

                     

                  	
                     

                    Int

                     

                     

                    Use

                     

                  	
                     

                    C/C

                     

                     

                    Stat

                     

                  	
                     

                    Rpt

                     

                     

                    Unt

                     

                  	
                     

                    Reported
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Determined
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Crp
                      

                     

                     

                    Lnd

                     

                  	
                     

                    Planting
                      

                     

                     

                    Date

                     

                  	
                     

                    Prod
                      

                     

                     

                    Share

                     

                  	
                     

                    Prod
                      

                     

                     

                    Name

                     

                  	
                     

                    RMA

                     

                     

                    Unt

                     

                  	
                     

                    Dpt

                     

                     

                    Unt

                     

                  
	
                     

                    136

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    678

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    9.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    24.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1C

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    49.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    678

                     

                  	
                     

                    E-5
                      (A2)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    82.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    102.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    150

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    671

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    60.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    5.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    671

                     

                  	
                     

                    E-5
                      (A2)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    65.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    119.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    165

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    670

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    14.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    670

                     

                  	
                     

                    E-4
                      (B2)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    14.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    29.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    206

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    674

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    28.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    20.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    674

                     

                  	
                     

                    E-5
                      (A2)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    48.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    62.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    381

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    713

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    14.40

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-11-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 

          

        

      

       

       

      
        
          
          

        

        
          1

          
            

            CAMP.
              TEXAS                                                                                                                                                                                                                                    
Form
              Approved - OMB No. 0560-0004

            FSA-578
              (Producer Print)                             REPORT
              OF ACREAGE
PROGRAM          
                                                   YEAR
              2005

                                                                                   
                           DATE:
              11-17-2005

          

        

         

      

      
        
          	
                   

                  Farm
                    

                   

                   

                  Number

                   

                	
                   

                  Tract
                    

                   

                   

                  Number

                   

                	
                   

                  CLU/
                    Field

                   

                	
                   

                  Ir
                    

                   

                   

                  Pr

                   

                	
                   

                   

                   

                   

                  C/C

                   

                	
                   

                  Var/

                   

                   

                  Type

                   

                	
                   

                  Int

                   

                   

                  Use

                   

                	
                   

                  C/C

                   

                   

                  Stat

                   

                	
                   

                  Rpt

                   

                   

                  Unt

                   

                	
                   

                  Reported
                    

                   

                   

                  Quantity

                   

                	
                   

                  Determined
                    

                   

                   

                  Quantity

                   

                	
                   

                  Crp
                    

                   

                   

                  Lnd

                   

                	
                   

                  Planting
                    

                   

                   

                  Date

                   

                	
                   

                  Prod
                    

                   

                   

                  Share

                   

                	
                   

                  Prod
                    

                   

                   

                  Name

                   

                	
                   

                  RMA

                   

                   

                  Unt

                   

                	
                   

                  Dpt

                   

                   

                  Unt

                   

                
	 	 	
                   

                  1B

                   

                	
                   

                  Ni

                   

                	
                   

                  FALOW

                   

                	 	 	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  10.60

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-11-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  713

                   

                	
                   

                  D-7
                    (B1)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  25.0

                   

                	
                   

                  Farmland:

                   

                	
                   

                  40.0

                   

                	 	 	 	 	 	 	 
	
                   

                  483

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	 	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	
                   

                  1251

                   

                	
                   

                  1A

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  8.40

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-23-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1B

                   

                	
                   

                  Ni

                   

                	
                   

                  FALOW

                   

                	 	 	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  28.90

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-23-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  1251

                   

                	
                   

                  F-4
                    (B1)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  37.3

                   

                	
                   

                  Farmland:

                   

                	
                   

                  54.0

                   

                	 	 	 	 	 	 	 
	
                   

                  700

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	 	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	
                   

                  1387

                   

                	
                   

                  1A

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  13.50

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-25-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1B

                   

                	
                   

                  Ni

                   

                	
                   

                  FALOW

                   

                	 	 	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  11.50

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-25-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  1387

                   

                	
                   

                  F-7
                    (2A) (2B)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  25.0

                   

                	
                   

                  Farmland:

                   

                	
                   

                  26.0

                   

                	 	 	 	 	 	 	 
	
                   

                  837

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	 	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	
                   

                  846

                   

                	
                   

                  1A

                   

                	
                   

                  Ni

                   

                	
                   

                  FALOW

                   

                	 	 	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  40.00

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-26-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  846

                   

                	
                   

                  G-2
                    (1A)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  40.0

                   

                	
                   

                  Farmland:

                   

                	
                   

                  120.0

                   

                	 	 	 	 	 	 	 
	
                   

                  1010

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	 	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	
                   

                  1152

                   

                	
                   

                  1A

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  13.00

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-10-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1B

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  13.00

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-10-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1C

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  2.00

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-10-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1D

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  5.00

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-10-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	 	
                   

                  1E

                   

                	
                   

                  Ni

                   

                	
                   

                  FALOW

                   

                	 	 	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  44.40

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-10-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  1152

                   

                	
                   

                  I-6(1A)(1B)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  77.4

                   

                	
                   

                  Farmland:

                   

                	
                   

                  217.0

                   

                	 	 	 	 	 	 	 
	
                   

                  1012

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	
                   

                  A

                   

                	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	 	
                   

                  1139

                   

                	
                   

                  1A

                   

                	
                   

                  Ni

                   

                	
                   

                  CORN

                   

                	
                   

                  YEL

                   

                	
                   

                  Grain

                   

                	
                   

                  I

                   

                	
                   

                  A

                   

                	
                   

                  75.40

                   

                	 	
                   

                  Y

                   

                	
                   

                  03-03-2005

                   

                	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 
	
                   

                  Photo
                    Number/Legal Descriptions:

                   

                	
                   

                  1139

                   

                	
                   

                  H-6(2A)

                   

                	 	 	 	 	 	 	 
	 	 	
                   

                  Cropland:

                   

                	
                   

                  75.4

                   

                	
                   

                  Farmland:

                   

                	
                   

                  114..0

                   

                	 	 	 	 	 	 	 
	
                   

                  1092

                   

                	
                   

                  0

                   

                	 	
                   

                  Ni

                   

                	
                   

                  OFAV

                   

                	 	 	 	 	
                   

                  .00

                   

                	 	 	 	
                   

                  1.0000

                   

                	
                   

                  PATRICK
                    W PILGRIM

                   

                	 	 

        

      

       

      
        
          
          

        

        
          2

          
             

            
              

            

            CAMP.
              TEXAS                                                                            Form
              Approved - OMB No. 0560-0004

            FSA-578
              (Producer Print)                         REPORT
              OF
              ACREAGE PROGRAM                                        
              YEAR 2005

                                                                                                             
DATE:
              11-17-2005

          

        

        

          
            	
                     

                    Farm
                      

                     

                     

                    Number

                     

                  	
                     

                    Tract
                      

                     

                     

                    Number

                     

                  	
                     

                    CLU/
                      Field

                     

                  	
                     

                    Ir
                      

                     

                     

                    Pr

                     

                  	
                     

                     

                     

                     

                    C/C

                     

                  	
                     

                    Var/

                     

                     

                    Type

                     

                  	
                     

                    Int

                     

                     

                    Use

                     

                  	
                     

                    C/C

                     

                     

                    Stat

                     

                  	
                     

                    Rpt

                     

                     

                    Unt

                     

                  	
                     

                    Reported
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Determined
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Crp
                      

                     

                     

                    Lnd

                     

                  	
                     

                    Planting
                      

                     

                     

                    Date

                     

                  	
                     

                    Prod
                      

                     

                     

                    Share

                     

                  	
                     

                    Prod
                      

                     

                     

                    Name

                     

                  	
                     

                    RMA

                     

                     

                    Unt

                     

                  	
                     

                    Dpt

                     

                     

                    Unt

                     

                  
	
                     

                    1092

                     

                  	
                     

                    1545

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    300.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    1545

                     

                  	
                     

                    G-2
                      (1B) (2B)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    300.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    605.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    1104

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1144

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    60.30

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-03-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    1144

                     

                  	
                     

                    H-6(2A)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    60.3

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    65.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    1151

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1528

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    120.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    4.90

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    1528

                     

                  	
                     

                    F-4
                      (B1)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    124.9

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    190.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    1736

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    188

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    20.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    303

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    47.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    848

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    56.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-26-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    188

                     

                     

                    303

                     

                     

                    848

                     

                  	
                     

                    B-5
                      (A1)(B1)

                     

                     

                    C-4
                      (A1) (B1)

                     

                     

                    G-2
                      (1A) (2A)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    123.0

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    314.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    1761

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    676

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    15.90

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-12-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1286

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    34.60

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-12-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    2

                     

                  	
                     

                    Ni

                     

                  	
                     

                    GRASS

                     

                  	
                     

                    BCS

                     

                  	
                     

                    Forage

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    23.20

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    06-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    3A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    12.20

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-12-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    676

                     

                     

                    1286

                     

                  	
                     

                    E-5
                      (A1)

                     

                     

                    F-5
                      (B1)

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    85.9

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    179.0

                     

                  	 	 	 	 	 	 	 
	
                     

                    1856

                     

                  	
                     

                    0

                     

                  	 	
                     

                    Ni

                     

                  	
                     

                    OFAV

                     

                  	 	 	 	 	
                     

                    .00

                     

                  	 	 	 	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1913

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    GRASS

                     

                  	
                     

                    BCS

                     

                  	
                     

                    Forage

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    58.0

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    06-21-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    1913

                     

                  	
                     

                    F-4
                      (A1) (A2)

                     

                  	 	 	 	 	 	 	 

          

           

          
            
              
              

            

            
              3

              
                

                CAMP.
                  TEXAS                                                                            Form
                  Approved - OMB No. 0560-0004

                FSA-578
                  (Producer Print)                         REPORT
                  OF
                  ACREAGE PROGRAM                                        
                  YEAR 2005

                                                                                                                 
DATE:
                  11-17-2005

              

            

            

              
                	
                         

                        Farm
                          

                         

                         

                        Number

                         

                      	
                         

                        Tract
                          

                         

                         

                        Number

                         

                      	
                         

                        CLU/
                          Field

                         

                      	
                         

                        Ir
                          

                         

                         

                        Pr

                         

                      	
                         

                         

                         

                         

                        C/C

                         

                      	
                         

                        Var/

                         

                         

                        Type

                         

                      	
                         

                        Int

                         

                         

                        Use

                         

                      	
                         

                        C/C

                         

                         

                        Stat

                         

                      	
                         

                        Rpt

                         

                         

                        Unt

                         

                      	
                         

                        Reported
                          

                         

                         

                        Quantity

                         

                      	
                         

                        Determined
                          

                         

                         

                        Quantity

                         

                      	
                         

                        Crp
                          

                         

                         

                        Lnd

                         

                      	
                         

                        Planting
                          

                         

                         

                        Date

                         

                      	
                         

                        Prod
                          

                         

                         

                        Share

                         

                      	
                         

                        Prod
                          

                         

                         

                        Name

                         

                      	
                         

                        RMA

                         

                         

                        Unt

                         

                      	
                         

                        Dpt

                         

                         

                        Unt

                         

                      
	 	 	
                         

                        Cropland:

                         

                      	
                         

                        58.0

                         

                      	
                         

                        Farmland:

                         

                      	
                         

                        61.0

                         

                      	 	 	 	 	 	 	 
	
                         

                        1919

                         

                      	
                         

                        0

                         

                      	 	
                         

                        Ni

                         

                      	
                         

                        OFAV

                         

                      	 	 	 	 	
                         

                        .00

                         

                      	 	 	 	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1271

                         

                      	
                         

                        1A

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        24.30

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-19-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        2

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        75.70

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-19-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	
                         

                        Photo
                          Number/Legal Descriptions:

                         

                      	
                         

                        1271

                         

                      	
                         

                        F-5
                          (A1) (A2)

                         

                      	 	 	 	 	 	 	 
	 	 	
                         

                        Cropland:

                         

                      	
                         

                        100.0

                         

                      	
                         

                        Farmland:

                         

                      	
                         

                        138.0

                         

                      	 	 	 	 	 	 	 
	
                         

                        2020

                         

                      	
                         

                        0

                         

                      	 	
                         

                        Ni

                         

                      	
                         

                        OFAV

                         

                      	 	 	 	 	
                         

                        .00

                         

                      	 	 	 	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1055

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        6.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1056

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        23.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-27-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        2

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        15.50

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-27-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        3

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        73.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-27-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1174

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        23.40

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-11-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        2A

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        51.60

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-11-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1684

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        15.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        2

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        22.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        3A

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        37.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        4

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        11.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        5

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        60.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        7

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        26.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	 	
                         

                        6

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        14.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1685

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        CORN

                         

                      	
                         

                        YEL

                         

                      	
                         

                        Grain

                         

                      	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        9.50

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1686

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        11.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-09-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	
                         

                        Photo
                          Number/Legal Descriptions:

                         

                      	
                         

                        1055

                         

                         

                        1056

                         

                         

                        1174

                         

                         

                        1684

                         

                         

                        1685

                         

                         

                         

                         

                         

                        1686

                         

                      	
                         

                        F-5
                          (A1)

                         

                         

                        F-7
                          (2A) (2B)

                         

                         

                        H-7
                          (1A)(2A)

                         

                         

                        G-7
                          (1A)(2A)(1B)(2B)

                         

                         

                        G-7
                          (1A)(2A)

                         

                         

                        G-7
                          (1A)(2A)

                         

                      	 	 	 	 	 	 	 
	 	 	
                         

                        Cropland:

                         

                      	
                         

                        398.0

                         

                      	
                         

                        Farmland:

                         

                      	
                         

                        810.0

                         

                      	 	 	 	 	 	 	 
	
                         

                        2040

                         

                      	
                         

                        0

                         

                      	 	
                         

                        Ni

                         

                      	
                         

                        OFAV

                         

                      	 	 	 	 	
                         

                        .00

                         

                      	 	 	 	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	 	
                         

                        1616

                         

                      	
                         

                        1

                         

                      	
                         

                        Ni

                         

                      	
                         

                        FALOW

                         

                      	 	 	
                         

                        I

                         

                      	
                         

                        A

                         

                      	
                         

                        30.00

                         

                      	 	
                         

                        Y

                         

                      	
                         

                        03-26-2005

                         

                      	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 
	
                         

                        Photo
                          Number/Legal Descriptions:

                         

                      	
                         

                        1616

                         

                      	
                         

                        D-7
                          (A1) (A2)

                         

                      	 	 	 	 	 	 	 
	 	 	
                         

                        Cropland:

                         

                      	
                         

                        30.0

                         

                      	
                         

                        Farmland:

                         

                      	
                         

                        80.0

                         

                      	 	 	 	 	 	 	 
	
                         

                        2104

                         

                      	
                         

                        0

                         

                      	 	
                         

                        Ni

                         

                      	
                         

                        OFAV

                         

                      	 	 	 	 	
                         

                        .00

                         

                      	 	 	 	
                         

                        1.0000

                         

                      	
                         

                        PATRICK
                          W PILGRIM

                         

                      	 	 

              

            

          

        

      

       

       

      
        
          
          

        

        
          4

          
            

            CAMP.
              TEXAS                                                                            Form
              Approved - OMB No. 0560-0004

            FSA-578
              (Producer Print)                         REPORT
              OF
              ACREAGE PROGRAM                                        
              YEAR 2005

                                                                                                             
DATE:
              11-17-2005

          

        

        

          
            	
                     

                    Farm
                      

                     

                     

                    Number

                     

                  	
                     

                    Tract
                      

                     

                     

                    Number

                     

                  	
                     

                    CLU/
                      Field

                     

                  	
                     

                    Ir
                      

                     

                     

                    Pr

                     

                  	
                     

                     

                     

                     

                    C/C

                     

                  	
                     

                    Var/

                     

                     

                    Type

                     

                  	
                     

                    Int

                     

                     

                    Use

                     

                  	
                     

                    C/C

                     

                     

                    Stat

                     

                  	
                     

                    Rpt

                     

                     

                    Unt

                     

                  	
                     

                    Reported
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Determined
                      

                     

                     

                    Quantity

                     

                  	
                     

                    Crp
                      

                     

                     

                    Lnd

                     

                  	
                     

                    Planting
                      

                     

                     

                    Date

                     

                  	
                     

                    Prod
                      

                     

                     

                    Share

                     

                  	
                     

                    Prod
                      

                     

                     

                    Name

                     

                  	
                     

                    RMA

                     

                     

                    Unt

                     

                  	
                     

                    Dpt

                     

                     

                    Unt

                     

                  
	
                     

                    2104

                     

                  	
                     

                    706

                     

                  	
                     

                    1

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    26.70

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-17-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    2

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    53.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-17-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    4

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    23.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-17-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    3A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    160.70

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-17-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1043

                     

                  	
                     

                    1

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    20.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-19-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    2

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    13.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-19-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    1135

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    300.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-05-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    2073

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    300.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-08-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    FALOW

                     

                  	 	 	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    11.60

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-08-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	
                     

                    2074

                     

                  	
                     

                    1A

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    50.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-10-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	 	 	
                     

                    1B

                     

                  	
                     

                    Ni

                     

                  	
                     

                    CORN

                     

                  	
                     

                    YEL

                     

                  	
                     

                    Grain

                     

                  	
                     

                    I

                     

                  	
                     

                    A

                     

                  	
                     

                    50.00

                     

                  	 	
                     

                    Y

                     

                  	
                     

                    03-10-2005

                     

                  	
                     

                    1.0000

                     

                  	
                     

                    PATRICK
                      W PILGRIM

                     

                  	 	 
	
                     

                    Photo
                      Number/Legal Descriptions:

                     

                  	
                     

                    706

                     

                     

                    1043

                     

                     

                    1135

                     

                     

                     

                     

                     

                    2073

                     

                     

                    2074

                     

                  	
                     

                    D-7
                      (2A) (2B)

                     

                     

                    G-7
                      (1A) (2A)

                     

                     

                    H-5(1B)(2B)
                      H-6(2A)

                     

                     

                    D7/1A

                     

                     

                    D7

                     

                  	 	 	 	 	 	 	 
	 	 	
                     

                    Cropland:

                     

                  	
                     

                    1068.6

                     

                  	
                     

                    Farmland:

                     

                  	
                     

                    1839.9

                     

                  	 	 	 	 	 	 	 
	
                     

                    C/C

                     

                     

                    CORN

                     

                  	
                     

                    Type

                     

                     

                    YEL

                     

                  	
                     

                    Prac

                     

                     

                    N

                     

                  	
                     

                    IU

                     

                     

                    GR

                     

                  	
                     

                    Reported

                     

                     

                    1.633.00

                     

                  	
                     

                    Determined

                     

                  	
                     

                    C/C
                      Type

                     

                     

                    FALOW

                     

                  	
                     

                    Prac

                     

                     

                    N

                     

                  	
                     

                    IU

                     

                  	
                     

                    Reported

                     

                     

                    1.063.00

                     

                  	
                     

                    Determined

                     

                  	
                     

                    C/C

                     

                     

                    GRASS

                     

                  	
                     

                    Type

                     

                     

                    BCS

                     

                  	
                     

                    Prac

                     

                     

                    N

                     

                  	
                     

                    IU

                     

                     

                    FG

                     

                  	
                     

                    Reported

                     

                     

                    81.20

                     

                  	
                     

                    Determi

                     

                  
	
                    PRODUCER'S
                      CERTIFICATION: I certify to the best of my knowledge and belief
                      that the
                      acreage of crops and land uses listed herein are true and correct,
                      and
                      that all required crops and land uses have been reported for
                      the farm as
                      applicable. The signing of this form gives FSA representatives
                      authorization to enter and inspect crops and land uses on the
                      above
                      identified land.

                  
	
                    Producer's
                      Signature

                     

                  	
                    Date

                  
	
                    This
                      program or activity will be conducted on a nondiscriminatory
                      basis without
                      regard to race, color, religion, national origin, sex, age,
                      marital
                      status, or disability.

                  

          

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    Exhibit
      B

     

    
      
        
          TITUS.
            TEXAS                                                                             
Form
            Approved - OMB No. 0560-0004

          FSA-578
            (Producer Print)                                 REPORT
            OF
            ACREAGE                 
                             PROGRAM
            YEAR 2005

                                                                          DATE:
            11-17-2005

        

      

      
        
        

      

    

                                                                                                            "B"

    
      

      Producer
        Name and Address ID

      

      PATRICK
        W
        PILGRIM 9599

      1535
        LOOP
        179

      PITTSBURG,
        TX 75686-3503

      

      
        	
                NOTE: The
                  following statements are made in accordance with the Privacy Act
                  of 1974(5
                  USC 552a). The Agricultural Adjustment Act of 1938, as amended,
                  and the
                  Agricultural Act of 1949, as amended, authorized the collection
                  of the
                  following data. The data will be used to determine eligibility
                  for
                  assistance. Furnishing the data is voluntary, however, without
                  it
                  assistance cannot be provided. The data may be furnished to any
                  agency
                  responsible for enforcing the provisions of the Acts.

              
	
                Public
                  reporting burden for this collection of information is estimated
                  to
                  average 15 minutes per response, including the time for reviewing
                  instructions, searching existing data sources, gathering and maintaining
                  the data needed, and completing and reviewing the collection of
                  information. Send comments regarding this burden estimate, or any
                  other
                  aspect of this collection of information, including suggestions
                  for
                  reducing this burden, to the Department of Agriculture, Clearance
                  Officer,
                  Ag Box 7630, Washington, D.C. 20250, and to the Office of Management
                  and
                  Budget. Paperwork Reduction Project (OMB No. 0560-0004). Washington,
                  D.C.
                  20503. RETURN THIS COMPLETED FORM TO YOUR FSA COUNTY
                  OFFICE.

              
	
                 

                Farm
                  

                 

                 

                Number

                 

              	
                 

                Tract
                  

                 

                 

                Number

                 

              	
                 

                CLU/
                  Field

                 

              	
                 

                Ir
                  

                 

                 

                Pr

                 

              	
                 

                 

                 

                 

                C/C

                 

              	
                 

                Var/

                 

                 

                Type

                 

              	
                 

                Int

                 

                 

                Use

                 

              	
                 

                C/C

                 

                 

                Stat

                 

              	
                 

                Rpt

                 

                 

                Unt

                 

              	
                 

                Reported
                  

                 

                 

                Quantity

                 

              	
                 

                Determined
                  

                 

                 

                Quantity

                 

              	
                 

                Crp
                  

                 

                 

                Lnd

                 

              	
                 

                Planting
                  

                 

                 

                Date

                 

              	
                 

                Prod
                  

                 

                 

                Share

                 

              	
                 

                Prod
                  

                 

                 

                Name

                 

              	
                 

                RMA

                 

                 

                Unt

                 

              	
                 

                Dpt

                 

                 

                Unt

                 

              
	
                 

                2281

                 

              	
                 

                0

                 

              	 	
                 

                Ni

                 

              	
                 

                OFAV

                 

              	 	 	 	 	
                 

                .00

                 

              	 	 	 	
                 

                1.0000

                 

              	
                 

                PATRICK
                  W PILGRIM

                 

              	 	 
	 	
                 

                2390

                 

              	
                 

                2A

                 

              	
                 

                Ni

                 

              	
                 

                CORN

                 

              	
                 

                YEL

                 

              	
                 

                Grain

                 

              	
                 

                I

                 

              	
                 

                A

                 

              	
                 

                92.50

                 

              	 	
                 

                Y

                 

              	
                 

                03-27-2005

                 

              	
                 

                1.0000

                 

              	
                 

                PATRICK
                  W PILGRIM

                 

              	 	 
	 	 	
                 

                3A

                 

              	
                 

                Ni

                 

              	
                 

                CORN

                 

              	
                 

                YEL

                 

              	
                 

                Grain

                 

              	
                 

                I

                 

              	
                 

                A

                 

              	
                 

                64.00

                 

              	 	
                 

                Y

                 

              	
                 

                03-27-2005

                 

              	
                 

                1.0000

                 

              	
                 

                PATRICK
                  W PILGRIM

                 

              	 	 
	
                 

                Photo
                  Number/Legal Descriptions:

                 

              	
                 

                2390

                 

              	
                 

                G12/2B

                 

              	 	 	 	 	 	 	 
	 	 	
                 

                Cropland:

                 

              	
                 

                156.5

                 

              	
                 

                Farmland:

                 

              	
                 

                400.0

                 

              	 	 	 	 	 	 	 
	
                 

                C/C

                 

                 

                CORN

                 

              	
                 

                Type

                 

                 

                YEL

                 

              	
                 

                Prac

                 

                 

                N

                 

              	
                 

                IU

                 

                 

                GR

                 

              	
                 

                Reported

                 

                 

                156.50

                 

              	
                 

                Determined

                 

              	 	 	 	 	 	 	 	 	 	 	 
	
                PRODUCER'S
                  CERTIFICATION: I certify to the best of my knowledge and belief
                  that the
                  acreage of crops and land uses listed herein are true and correct,
                  and
                  that all required crops and land uses have been reported for the
                  farm as
                  applicable. The signing of this form gives FSA representatives
                  authorization to enter and inspect crops and land uses on the above
                  identified land.

              
	
                Producer's
                  Signature

                 

              	
                Date

              
	
                This
                  program or activity will be conducted on a nondiscriminatory basis
                  without
                  regard to race, color, religion, national origin, sex, age, marital
                  status, or disability.

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

    

    This
      Exhibit C hereby amends that certain Ground Lease Agreement entered into by
      and
      between Lessor and Lessee on December 28, 2005 (“Original Lease”). The terms of
      this Lease shall supersede any and all terms as set forth in the Original Lease.
      

    

    Pursuant
      to the Original Lease, Lessee leased from Lessor a total of 1,789.5 acres at
      $13.00 per acre. Pursuant to this Lease, the acreage leased by Lessee from
      Lessor shall be reduced to 1,679.5 acres at $13.00 per acre as
      follows:

    

    Original
      Total Acreage leased by Lessee (as set forth in Exhibits A & B):

    

    1,789.5
      acres 

    

    Less:
      thirty (30) acres from “Farm 30”

    

    Less
      thirty (30) acres from “LTD”

    

    Less
      fifty (50) acres from Lessee’s currently-owned farm

    

    Equals:
      

    

    1,679.5
      acres (Amended Total Acreage leased by Lessee)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]