Document:

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                                                                     EXHIBIT 4.2

                           PILGRIM'S PRIDE CORPORATION

                                  $400,000,000

                          9 5/8% SENIOR NOTES DUE 2011

                                   ----------

                                      FIRST

                                  SUPPLEMENTAL

                                    INDENTURE

                           Dated as of August 9, 2001

                                   ----------

                            THE CHASE MANHATTAN BANK

                                   as Trustee

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                                TABLE OF CONTENTS

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ARTICLE I.    ESTABLISHMENT...............................................................................   1
   Section 1.01.     Establishment........................................................................   1

ARTICLE II.   DEFINITIONS AND INCORPORATION BY REFERENCE..................................................   2
   Section 2.01.     Definitions..........................................................................   2
   Section 2.02.     Other Definitions....................................................................  19

ARTICLE III.  THE NOTES...................................................................................  19
   Section 3.01.     Issuance of Additional Notes.........................................................  19
   Section 3.02.     Payments by Company by Wire Transfer.................................................  20

ARTICLE IV.   REDEMPTION AND PREPAYMENT...................................................................  20
   Section 4.01.     Optional Redemption..................................................................  20
   Section 4.02.     Mandatory Redemption.................................................................  21
   Section 4.03.     Offer to Purchase by Application of Excess Proceeds..................................  21

ARTICLE V.    COVENANTS...................................................................................  23
   Section 5.01.     Compliance Certificate...............................................................  23
   Section 5.02.     Stay, Extension and Usury Laws.......................................................  23
   Section 5.03.     Restricted Payments..................................................................  23
   Section 5.04.     Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries............  27
   Section 5.05.     Incurrence of Indebtedness and Issuance of Preferred Stock...........................  28
   Section 5.06.     Asset Sales..........................................................................  31
   Section 5.07.     Transactions with Affiliates.........................................................  33
   Section 5.08.     Liens................................................................................  34
   Section 5.09.     Issuance of Guarantees by Domestic Restricted Subsidiaries...........................  34
   Section 5.10.     Limitation on the Issuance and Sale of Equity Interests in Restricted
                           Subsidiaries...................................................................  34
   Section 5.11.     Offer to Repurchase Upon Change of Control...........................................  35
   Section 5.12.     Limitation on Sale and Leaseback Transactions........................................  36
   Section 5.13.     Payments for Consent.................................................................  36
   Section 5.14.     Reports..............................................................................  36
   Section 5.15.     Designation of Restricted and Unrestricted Subsidiaries..............................  37
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                                TABLE OF CONTENTS
                                  (CONTINUED)
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   Section 5.16.     Suspension of Covenants..............................................................  37

ARTICLE VI.   SUCCESSORS..................................................................................  37
   Section 6.01.     Merger, Consolidation, or Sale of Assets.............................................  37
   Section 6.02.     Successor Corporation Substituted....................................................  38

ARTICLE VII.  DEFAULTS AND REMEDIES.......................................................................  39
   Section 7.01.     Events of Default....................................................................  39
   Section 7.02.     Acceleration.........................................................................  40
   Section 7.03.     Other Remedies.......................................................................  41
   Section 7.04.     Waiver of Past Defaults..............................................................  41
   Section 7.05.     Control by Majority..................................................................  41
   Section 7.06.     Limitation on Suits..................................................................  41
   Section 7.07.     Rights of Holders of Notes to Receive Payment........................................  42
   Section 7.08.     Collection Suit by Trustee...........................................................  42
   Section 7.09.     Trustee May File Proofs of Claim.....................................................  42
   Section 7.10.     Priorities...........................................................................  43
   Section 7.11.     Undertaking for Costs................................................................  43

ARTICLE VIII. LEGAL DEFEASANCE AND COVENANT DEFEASANCE....................................................  43
   Section 8.01.     Option to Effect Legal Defeasance or Covenant Defeasance.............................  43
   Section 8.02.     Legal Defeasance and Discharge.......................................................  43
   Section 8.03.     Covenant Defeasance..................................................................  44
   Section 8.04.     Conditions to Legal or Covenant Defeasance...........................................  44
   Section 8.05.     Deposited Money and U.S. Government Obligations to be Held in Trust; Other
                           Miscellaneous Provisions.......................................................  46
   Section 8.06.     Repayment to Company.................................................................  46
   Section 8.07.     Reinstatement........................................................................  46

ARTICLE IX.   AMENDMENT, SUPPLEMENT AND WAIVER............................................................  47
   Section 9.01.     Without Consent of Holders of Notes..................................................  47
   Section 9.02.     With Consent of Holders of Notes.....................................................  48
   Section 9.03.     Compliance with Trust Indenture Act..................................................  49
   Section 9.04.     Revocation and Effect of Consents....................................................  49
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                                TABLE OF CONTENTS
                                  (CONTINUED)
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   Section 9.05.     Notation on or Exchange of Notes.....................................................  49
   Section 9.06.     Trustee to Sign Amendments, Etc......................................................  50

ARTICLE X.    SUBSIDIARY GUARANTEES.......................................................................  50
   Section 10.01.    Subsidiary Guarantee.................................................................  50
   Section 10.02.    Additional Guarantees................................................................  52
   Section 10.03.    Limitation on Guarantor Liability....................................................  52
   Section 10.04.    Guarantors May Merge, Consolidate, Etc., on Certain Terms............................  52
   Section 10.05.    Releases of Subsidiary Guarantees....................................................  53

ARTICLE XI.   MISCELLANEOUS...............................................................................  54
   Section 11.01.    No Personal Liability of Directors, Officers, Employees and Stockholders.............  54
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                  FIRST SUPPLEMENTAL INDENTURE dated as of August 9, 2001 (this
"Supplemental Indenture") between Pilgrim's Pride Corporation, a Delaware
corporation (the "Company"), and The Chase Manhattan Bank, as trustee (the
"Trustee").

                                   WITNESSETH:

                  WHEREAS, the Company has previously executed and delivered an
Indenture, dated as of August 9, 2001 (the "Original Indenture"), with The Chase
Manhattan Bank, as trustee;

                  WHEREAS, the Original Indenture is incorporated herein by this
reference and the Original Indenture, as supplemented by this Supplemental
Indenture, is herein called the "Indenture";

                  WHEREAS, under the Original Indenture, a new series of
Securities may at any time be established by the Board of Directors of the
Company in accordance with the provisions of the Original Indenture and the
terms of such series may be established by a supplemental indenture executed by
the Company and the Trustee;

                  WHEREAS, the Company proposes to create under the Indenture a
new series of Securities;

                  WHEREAS, additional Securities of other series hereafter
established, except as may be limited in the Original Indenture as at the time
supplemented and modified, may be issued from time to time pursuant to the
Indenture as at the time supplemented and modified; and

                  WHEREAS, all conditions necessary to authorize the execution
and delivery of this Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

                  NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

                                   ARTICLE I.
                                  ESTABLISHMENT

                  Section 1.01. Establishment.

                  (a) There is hereby established a new series of Securities to
be issued under the Indenture, to be designated as the Company's 9 5/8% Senior
Notes due 2011 (the "Notes").

                  (b) There are to be authenticated and delivered on the date
hereof Two Hundred Million Dollars ($200,000,000) aggregate principal amount of
Notes.

                  (c) The Notes shall be issued in the form of one or more
permanent global Securities in substantially the form set out in Exhibit A
hereto. The Depositary with respect to the Notes shall initially be The
Depository Trust Company.

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                  (d) Each Note shall be dated the date of authentication
thereof and shall bear interest from the date of original issuance thereof or
from the most recent date to which interest has been paid or duly provided for.

                  (e) If and to the extent that the provisions of the Original
Indenture are duplicative of, or in contradiction with, the provisions of this
Supplemental Indenture, the provisions of this Supplemental Indenture shall
govern the terms of the Notes.

                                  ARTICLE II.
                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  Section 2.01. Definitions.

                  (a) All capitalized terms used herein and not otherwise
defined below shall have the meanings ascribed thereto in the Original
Indenture.

                  (b) The following are definitions used in this Supplemental
Indenture and to the extent that a term is defined both herein and in the
Original Indenture, the definition in this Supplemental Indenture shall govern.

                  "ACQUIRED DEBT" means, with respect to any specified Person:

                  (1) Indebtedness of any other Person existing at the time such
other Person is merged with or into, or became a Subsidiary of, such specified
Person, whether or not such Indebtedness is incurred in connection with, or in
contemplation of, such other Person merging with or into, or becoming a
Subsidiary of, such specified Person; and

                  (2) Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person.

                  "AFFILIATE" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control," as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided, that beneficial ownership of
10% or more of the Voting Stock of a Person shall be deemed to be control. For
purposes of this definition, the terms "controlling," "controlled by" and "under
common control with" shall have correlative meanings.

                  "ASSET SALE" means:

                  (1) the sale, lease, conveyance or other disposition of any
assets or rights, other than sales of inventory in the ordinary course of
business; provided, that the sale, conveyance or other disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole will be governed by the provisions of Section 5.11 hereof
and/or the provisions of Article VI hereof and not by the provisions of the
Asset Sale covenant; and

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                  (2) the issuance of Equity Interests by any of the Company's
Restricted Subsidiaries or the sale of Equity Interests in any of its Restricted
Subsidiaries.

                  Notwithstanding the preceding, the following items shall not
be deemed to be Asset Sales:

                  (1) any single transaction or series of related transactions
that involves assets having a fair market value of less than $1.0 million;

                  (2) a transfer of assets between or among the Company and its
Restricted Subsidiaries;

                  (3) an issuance of Equity Interests by a Restricted Subsidiary
to the Company or to another Restricted Subsidiary;

                  (4) the sale or lease of equipment, inventory, accounts
receivable (or interests therein) or other assets in the ordinary course of
business or pursuant to a Permitted Securitization Program;

                  (5) the sale or other disposition of cash or Cash Equivalents;
and

                  (6) the sale, lease or other disposition of any assets or
rights to the extent constituting a Restricted Payment or Permitted Investment
that is permitted by Section 5.03 hereof.

                  "ATTRIBUTABLE DEBT" in respect of a sale and leaseback
transaction means, at the time of determination, the present value of the
obligation of the lessee for net rental payments during the remaining term of
the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be
extended. Such present value shall be calculated using a discount rate equal to
the rate of interest implicit in such transaction, determined in accordance with
GAAP.

                  "BANKRUPTCY LAW" means Title 11, U.S. Code or any similar
federal or state law for the relief of debtors.

                  "BENEFICIAL OWNER" has the meaning assigned to such term in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the
beneficial ownership of any particular "person" (as that term is used in Section
13(d)(3) of the Exchange Act), such "person" shall be deemed to have beneficial
ownership of all securities that such "person" has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only upon the occurrence of a subsequent
condition. The terms "Beneficially Owns" and "Beneficially Owned" shall have a
corresponding meaning.

                  "BOARD OF DIRECTORS" means either the board of directors of
the Company or any duly authorized committee of that board.

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                  "CAPITAL LEASE OBLIGATION" means, at the time any
determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at that time be required to be capitalized on a balance
sheet in accordance with GAAP.

                  "CAPITAL STOCK" means:

                  (1) in the case of a corporation, corporate stock;

                  (2) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

                  (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and

                  (4) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person, but in any event excluding
interests in pools of accounts receivable or inventory sold by a Securitization
Subsidiary pursuant to a Permitted Securitization Program.

                  "CASH EQUIVALENTS" means:

                  (1) United States dollars;

                  (2) securities issued or directly and fully guaranteed or
insured by the United States government or any agency or instrumentality thereof
(provided, that the full faith and credit of the United States is pledged in
support thereof) having maturities of not more than six months from the date of
acquisition;

                  (3) certificates of deposit and eurodollar time deposits with
maturities of six months or less from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight bank
deposits, in each case, with any domestic commercial bank having capital and
surplus in excess of $500.0 million and a Thomson Bank Watch Rating of "B" or
better;

                  (4) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clauses (2) and (3)
above entered into with any financial institution meeting the qualifications
specified in clause (3) above;

                  (5) commercial paper having the highest rating obtainable from
Moody's Investors Service, Inc. or Standard & Poor's Rating Services and in each
case maturing within six months after the date of acquisition; and

                  (6) money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (1) through (5) of
this definition.

                  "CHANGE OF CONTROL" means the occurrence of any of the
following:

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                  (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or assets
of the Company and its Subsidiaries taken as a whole to any "person" or "group"
(as such terms are used in Section 13(d)(3) of the Exchange Act) other than a
Wholly Owned Restricted Subsidiary;

                  (2) any "person" or "group" (as such terms are used in Section
13(d)(3) of the Exchange Act), other than the Pilgrim Family, becomes the
ultimate "beneficial owner," as defined in Rule 13d-3 under the Exchange Act, of
more than 50% of the total voting power of the Voting Stock of the Company on a
fully-diluted basis;

                  (3) the adoption of a plan relating to the liquidation or
dissolution of the Company;

                  (4) the consummation of any transaction (including, without
limitation, any merger, consolidation or recapitalization) to which the Company
is a party the result of which is that, immediately after such transaction, the
holders of all of the outstanding Voting Stock of the Company immediately prior
to such transaction hold less than 50.1% of the Voting Stock of the Person
surviving such transaction, measured by voting power rather than number of
shares; or

                  (5) the first day on which a majority of the members of the
Board of Directors of the Company are not Continuing Directors.

                  "CONSOLIDATED CASH FLOW" means, with respect to any specified
Person for any period, the Consolidated Net Income of such Person for such
period plus:

                  (1) an amount equal to any extraordinary loss plus any net
loss realized by such Person or any of its Restricted Subsidiaries in connection
with an Asset Sale, to the extent such losses were deducted in computing such
Consolidated Net Income; plus

                  (2) provision for taxes based on income or profits of such
Person and its Restricted Subsidiaries for such period, to the extent that such
provision for taxes was deducted in computing such Consolidated Net Income; plus

                  (3) consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued and whether or
not capitalized (including, without limitation, amortization of original issue
discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with
Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers' acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations), to the extent that
any such expense was deducted in computing such Consolidated Net Income; plus

                  (4) depreciation, amortization (including amortization of
goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period) and other non-cash expenses
(excluding any such non-cash expense to the extent that it represents an accrual
of or reserve for cash expenses in any future period or amortization of a

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prepaid cash expense that was paid in a prior period) of such Person and its
Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash expenses were deducted in computing such
Consolidated Net Income; minus

                  (5) non-cash items increasing such Consolidated Net Income for
such period, other than the accrual of revenue in the ordinary course of
business, in each case, on a consolidated basis and determined in accordance
with GAAP.

                  Notwithstanding the preceding, the provision for taxes based
on the income or profits of, and the depreciation and amortization and other
non-cash expenses of, a Restricted Subsidiary of the Company, unless such
Restricted Subsidiary is a Guarantor and its Subsidiary Guarantee remains in
full force and effect, shall be added to Consolidated Net Income to compute
Consolidated Cash Flow of the Company only to the extent that a corresponding
amount would be permitted at the date of determination to be dividended or
distributed to the Company or a Restricted Subsidiary by such Restricted
Subsidiary without prior governmental approval (that has not been obtained), and
without direct or indirect restriction pursuant to the terms of its charter and
all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its
stockholders.

                  "CONSOLIDATED NET INCOME" means, with respect to any specified
Person for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided, that:

                  (1) the Net Income of any Person that is not a Restricted
Subsidiary or that is accounted for by the equity method of accounting shall be
included only to the extent of the amount of dividends or distributions paid in
cash to the specified Person or a Wholly Owned Restricted Subsidiary thereof;

                  (2) the Net Income of any Restricted Subsidiary, unless such
Restricted Subsidiary is a Guarantor and its Subsidiary Guarantee remains in
full force and effect, shall be excluded to the extent that the declaration or
payment of dividends or similar distributions by that Restricted Subsidiary of
that Net Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly,
by operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Restricted Subsidiary or its stockholders, provided that the aggregate amount of
such Net Income that could be paid to the Company or a Restricted Subsidiary by
loans or advances or repayments of loans or advances, intercompany transfer or
otherwise will be included in Consolidated Net Income;

                  (3) the Net Income of any Person acquired in a pooling of
interests transaction for any period prior to the date of such acquisition shall
be excluded; and

                  (4) the cumulative effect of a change in accounting principles
shall be excluded.

                  "CONSOLIDATED TANGIBLE NET WORTH" of any Person means, at any
time, for such Person and its Restricted Subsidiaries on a consolidated basis,
an amount computed equal to (a) the consolidated stockholders' equity of the
Person and its Restricted Subsidiaries, minus, (b) all

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Intangible Assets of the Person and its Restricted Subsidiaries, in each case as
of such time. For the purposes hereof, "Intangible Assets" means intellectual
property, goodwill and other intangible assets, in each case determined in
accordance with GAAP.

                  "CONTINUING DIRECTORS" means, as of any date of determination,
any member of the Board of Directors of the Company who:

                  (1) was a member of such Board of Directors on the date of the
Indenture; or

                  (2) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were
members of such Board at the time of such nomination or election.

                  "DEBT RATING" means the rating assigned to the Notes by
Moody's or S&P, as the case may be.

                  "DEFAULT" means any event, act or condition that is, or after
notice or with the passage of time or both would be, an Event of Default.

                  "DISQUALIFIED STOCK" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case at the option of the holder thereof), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder thereof, in whole or in part, on or prior to the date that is 91 days
after the date on which the Notes mature. Notwithstanding the preceding
sentence, any Capital Stock that would constitute Disqualified Stock solely
because the holders thereof have the right to require the Company to repurchase
such Capital Stock upon the occurrence of a change of control or an asset sale
shall not constitute Disqualified Stock if the terms of such Capital Stock
provide that the Company may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption complies with
Section 5.03 hereof.

                  "DOMESTIC BORROWING BASE" means, as of a date of
determination, the sum of (i) 85% of the book value of the outstanding accounts
receivable of the Company and its Domestic Restricted Subsidiaries (as such
accounts receivable would be shown on a consolidated balance sheet of the
Company and its Domestic Restricted Subsidiaries prepared in accordance with
GAAP), less allowance for doubtful accounts, plus (ii) 80% of the inventory of
the Company and its Domestic Restricted Subsidiaries (as such inventory would be
shown on a consolidated balance sheet of the Company and its Domestic Restricted
Subsidiaries prepared in accordance with GAAP); provided, that for purposes of
determining the Domestic Borrowing Base as of a date of determination, any
accounts receivable or inventory that has been sold or otherwise transferred to
a Securitization Subsidiary pursuant to a Permitted Securitization Program shall
not be included in the Domestic Borrowing Base for purposes of the calculation
thereof.

                  "DOMESTIC RESTRICTED SUBSIDIARY" means any Restricted
Subsidiary that was formed under the laws of the United States or any state
thereof or the District of Columbia.

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                  "EQUITY INTERESTS" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

                  "EXISTING CREDIT FACILITIES" means, collectively, the Existing
U.S. Credit Facilities and the Existing Foreign Credit Facility.

                  "EXISTING FOREIGN CREDIT FACILITY" means the facility
evidenced by the Revolving Credit Agreement, by and among Pilgrim's Pride, S.A.
de C.V., Avicola Pilgrim's Pride de Mexico, S.A. de C.V., the Company and
Comerica Bank, dated March 9, 1998, and the related notes, collateral documents,
guarantees and agreements, each as amended through the date of the Indenture.

                  "EXISTING U.S. CREDIT FACILITIES" means:

                  (1) the facility evidenced by the Second Amended and Restated
Note Purchase Agreement by and among the Company, John Hancock Mutual Life
Insurance Company and Signature 1A (Cayman), Ltd., dated July 15, 2000, and the
related notes, collateral documents, guarantees and agreements, each as amended
through the date of the Indenture;

                  (2) the facility evidenced by the Amended and Restated Credit
Agreement by and among CoBank, ACB, individually and as Agent, Farm Credit
Services of America, FLCA, and other Banks thereunder, dated November 16, 2000,
and the related notes, collateral documents, guarantees and agreements, each as
amended through the date of the Indenture; and

                  (3) the facility evidenced by the Second Amended and Restated
Secured Credit Agreement, by and among the Company and Harris Trust and Savings
Bank, individually and as Agent, and other Banks thereunder, dated November 5,
1999, and the related notes, collateral documents, guarantees and agreements,
each as amended through the date of the Indenture.

                  "FIXED CHARGES" means, with respect to any specified Person
for any period, the sum, without duplication, of:

                  (1) the consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued, including,
without limitation, amortization of original issue discount, non-cash interest
payments, the interest component of any deferred payment obligations, the
interest component of all payments associated with Capital Lease Obligations,
imputed interest with respect to Attributable Debt, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers'
acceptance financings, and net of the effect of all payments made or received
pursuant to Hedging Obligations; plus

                  (2) any interest expense on Indebtedness of another Person
that is guaranteed by such Person or one of its Restricted Subsidiaries or
secured by a Lien on assets of such Person or one of its Restricted
Subsidiaries, whether or not such Guarantee or Lien is called upon; plus

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                  (3) the product of (a) all dividends, whether paid or accrued,
whether or not in cash, on any series of preferred stock of such Person or any
of its Restricted Subsidiaries, other than dividends on Equity Interests payable
solely in Equity Interests of such Person (other than Disqualified Stock) or to
such Person or a Restricted Subsidiary of such Person, times (b) a fraction, the
numerator of which is one and the denominator of which is one minus the then
current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance
with GAAP.

                  "FIXED CHARGE COVERAGE RATIO" means with respect to any
specified Person for any period, the ratio of the Consolidated Cash Flow of such
Person for such period to the Fixed Charges of such Person for such period. In
the event that the specified Person or any of its Restricted Subsidiaries
incurs, assumes, Guarantees, repays, repurchases or redeems any Indebtedness
(other than ordinary working capital borrowings) or issues, repurchases or
redeems preferred stock subsequent to the commencement of the period for which
the Fixed Charge Coverage Ratio is being calculated and on or prior to the date
on which the event for which the calculation of the Fixed Charge Coverage Ratio
is made (the "Calculation Date"), then the Fixed Charge Coverage Ratio shall be
calculated giving pro forma effect to such incurrence, assumption, Guarantee,
repayment, repurchase or redemption of Indebtedness, or such issuance,
repurchase or redemption of preferred stock, and the use of the proceeds
therefrom as if the same had occurred at the beginning of the applicable
eight-quarter reference period.

                  In addition, for purposes of calculating the Fixed Charge
Coverage Ratio:

                  (1) acquisitions that have been made by the specified Person
or any of its Restricted Subsidiaries, including through mergers or
consolidations and including any related financing transactions, during the
eight-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date shall be given pro forma effect as if they had
occurred on the first day of the eight-quarter reference period and Consolidated
Cash Flow for such reference period shall be calculated on a pro forma basis in
accordance with Regulation S-X under the Securities Act, but without giving
effect to clause (3) of the proviso set forth in the definition of Consolidated
Net Income;

                  (2) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, shall be excluded; and

                  (3) the Fixed Charges attributable to discontinued operations,
as determined in accordance with GAAP, and operations or businesses disposed of
prior to the Calculation Date, shall be excluded, but only to the extent that
the obligations giving rise to such Fixed Charges will not be obligations of the
specified Person or any of its Restricted Subsidiaries following the Calculation
Date.

                  "FOREIGN BORROWING BASE" means, as of a date of determination,
the sum of (i) 85% of the book value of the outstanding accounts receivable of
the Company's Foreign Restricted Subsidiaries (as such accounts receivable would
be shown on a combined balance sheet of the Company's Foreign Restricted
Subsidiaries prepared in accordance with GAAP), less allowance for doubtful
accounts, plus (ii) 80% of the inventory of the Company's Foreign

                                       9
<PAGE>   14

Restricted Subsidiaries (as such inventory would be shown on a combined balance
sheet of the Company's Foreign Restricted Subsidiaries prepared in accordance
with GAAP); provided, that for purposes of determining the Foreign Borrowing
Base as of a date of determination, any accounts receivable or inventory that
has been sold or otherwise transferred to a Securitization Subsidiary pursuant
to a Permitted Securitization Program shall not be included in the Foreign
Borrowing Base for purposes of the calculation thereof.

                  "FOREIGN RESTRICTED SUBSIDIARY" means any Restricted
Subsidiary that is not a Domestic Restricted Subsidiary and with respect to
which more than 80% of its assets (determined on a consolidated basis in
accordance with GAAP) are located in territories and jurisdictions outside of
the United States of America.

                  "GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect on the date of the Indenture.

                  "GUARANTEE" means a guarantee other than by endorsement of
negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness.

                  "GUARANTORS" means any Restricted Subsidiary that executes a
Subsidiary Guarantee in accordance with the provisions of the Indenture and
their respective successors and assigns.

                  "HEDGING OBLIGATIONS" means, with respect to any specified
Person, the obligations of such Person under:

                  (1) interest rate swap agreements, interest rate cap
agreements and interest rate collar agreements and other agreements or
arrangements designed to protect such Person against fluctuations in interest
rates;

                  (2) any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect such Person against
fluctuations in currency values; and

                  (3) any commodity futures or option contract or other similar
commodity hedging contract designed to protect such person against fluctuations
in commodity prices.

                  "INDEBTEDNESS" means, with respect to any specified Person,
any indebtedness of such Person, whether or not contingent, in respect of:

                  (1) borrowed money;

                  (2) evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof) (other than obligations with respect to

                                       10
<PAGE>   15

letters of credit securing obligations (other than obligations described in
clause (1), (2) and (4) of this definition) entered into in the ordinary course
of business of such Person to the extent that such letters of credit are not
drawn upon);

                  (3) banker's acceptances;

                  (4) representing Capital Lease Obligations;

                  (5) the balance deferred and unpaid of the purchase price of
any property, except any such balance that constitutes an accrued expense or
trade payable incurred in the ordinary course of business; or

                  (6) representing any Hedging Obligations,

                  if and to the extent any of the preceding items (other than
letters of credit and Hedging Obligations) would appear as a liability upon a
balance sheet of the specified Person prepared in accordance with GAAP. In
addition, the term "Indebtedness" includes all Indebtedness of others secured by
a Lien on any asset of the specified Person (whether or not such Indebtedness is
assumed by the specified Person) and, to the extent not otherwise included, the
Guarantee by the specified Person of any indebtedness of any other Person.

                  The amount of any Indebtedness outstanding as of any date
shall be:

                  (1) the accreted value thereof, in the case of any
Indebtedness issued with original issue discount; and

                  (2) the principal amount thereof, together with any interest
thereon that is more than 30 days past due, in the case of any other
Indebtedness.

                  "INVESTMENT GRADE STATUS" exists as of a date if at such date
(i) the Debt Rating of Moody's is at least Baa3 (or the equivalent) or higher
and (ii) the Debt Rating of S&P is at least BBB- (or the equivalent) or higher.

                  "INVESTMENTS" means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the forms
of direct or indirect loans (including Guarantees or other obligations),
advances or capital contributions (excluding commission, travel and similar
advances to officers and employees made in the ordinary course of business),
purchases or other acquisitions for consideration of Indebtedness, Equity
Interests or other securities, together with all items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.
If the Company or any Restricted Subsidiary of the Company sells or otherwise
disposes of any Equity Interests of any direct or indirect Restricted Subsidiary
of the Company such that, after giving effect to any such sale or disposition,
such Person is no longer a Restricted Subsidiary of the Company, the Company
shall be deemed to have made an Investment on the date of any such sale or
disposition equal to the fair market value of the Equity Interests of such
Restricted Subsidiary not sold or disposed of in an amount determined as
provided in Section 5.03(d) hereof. The acquisition by the Company or any
Restricted Subsidiary of the Company of a Person that holds an Investment in a
third Person shall be deemed to be an Investment by the Company or such
Restricted Subsidiary in such third

                                       11
<PAGE>   16

Person in an amount equal to the fair market value of the Investment held by the
acquired Person in such third Person in an amount determined as provided in
Section 5.03(d) hereof. In addition, the fair market value of the net assets of
any Restricted Subsidiary at the time that such Restricted Subsidiary is
designated an Unrestricted Subsidiary shall be deemed to be an "Investment" made
by the Company in such Unrestricted Subsidiary.

                  "LIEN" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law, including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction.

                  "MOODY'S" means Moody's Investors Service, Inc. or any
successor to the rating agency business thereof.

                  "NET INCOME" means, with respect to any specified Person, the
net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends, excluding, however:

                  (1) any gain (or loss), together with any related provision
for taxes on such gain (or loss), realized in connection with: (a) any Asset
Sale; or (b) the disposition of any securities by such Person or any of its
Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person
or any of its Restricted Subsidiaries; and

                  (2) any extraordinary gain (or loss), together with any
related provision for taxes on such extraordinary gain (or loss).

                  "NET PROCEEDS" means the aggregate cash proceeds received by
the Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result thereof, taxes paid or payable as a
result thereof, in each case, after taking into account any available tax
credits or deductions and any tax sharing arrangements, and amounts required to
be applied to the repayment of Indebtedness.

                  "NON-RECOURSE DEBT" means Indebtedness:

                  (1) as to which neither the Company nor any of its Restricted
Subsidiaries (a) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (b) is directly or
indirectly liable as a guarantor or otherwise or (c) constitutes the lender; and

                  (2) no default with respect to which (including any rights
that the holders thereof may have to take enforcement action against an
Unrestricted Subsidiary) would permit upon notice, lapse of time or both any
holder of any other Indebtedness (other than the Notes) of

                                       12
<PAGE>   17

the Company or any of its Restricted Subsidiaries to declare a default on such
other Indebtedness or cause the payment thereof to be accelerated or payable
prior to its stated maturity.

                  "OBLIGATIONS" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

                  "PERMITTED INVESTMENTS" means:

                  (1) any Investment in the Company or in a Restricted
Subsidiary of the Company;

                  (2) any Investment of receivables owing to the Company or any
of its Restricted Subsidiaries, if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary trade terms
(provided, that nothing in this clause (2) shall prevent the Company or any
Restricted Subsidiary from offering such concessionary trade terms as management
deems reasonable in the circumstances);

                  (3) any Investment in Cash Equivalents;

                  (4) any Investment of Capital Stock, Obligations or other
securities of any Person received by the Company or any of its Restricted
Subsidiaries in settlement of Obligations created in the ordinary course of
business and owing to the Company or such Restricted Subsidiary;

                  (5) any Investment by the Company or any Restricted Subsidiary
of the Company in a Person, if as a result of such Investment:

                  (a) such Person becomes a Restricted Subsidiary of the
         Company; or

                  (b) such Person is merged, consolidated or amalgamated with or
         into, or transfers or conveys substantially all of its assets to, or is
         liquidated into, the Company or a Restricted Subsidiary of the Company;

                  (6) any Investment made as a result of the receipt of non-cash
consideration from an Asset Sale that was made pursuant to and in compliance
with Section 5.06 hereof;

                  (7) any acquisition of assets solely in exchange for the
issuance of Equity Interests (other than Disqualified Stock) of the Company;

                  (8) Hedging Obligations, provided, that such Hedging
Obligations constitute Permitted Debt permitted by Section 5.05(b)(vii) hereof;

                  (9) Investments in a Person arising from the sale or transfer
of assets primarily used in or related to, or Equity Interests of a Subsidiary
of the Company whose assets primarily consist of those used in or related to,
the Turkey Operations in connection with a joint venture including such Turkey
Operations with a third party; and

                                       13
<PAGE>   18

                 (10) other Investments made after the date of the Indenture in
any Person having an aggregate fair market value (measured on the date each such
Investment was made and without giving effect to subsequent changes in value),
when taken together with all other Investments made pursuant to this clause (10)
that are at the time outstanding, not to exceed $35 million.

                  "PERMITTED LIENS" means:

                  (1) Liens on the assets of the Company and its Restricted
Subsidiaries securing Indebtedness and other Obligations (in addition to those
referred to in clauses (2) through (12) of this definition) to the extent that
such Indebtedness (a) was outstanding on the date of the Indenture or was
permitted to be incurred by Section 5.05 hereof at the time of such incurrence
and (b) at the time of such incurrence did not exceed an aggregate principal
amount outstanding at any one time of the greater of (x) $485.0 million less the
aggregate amount of all Net Proceeds of Asset Sales (other than a sale of all or
a substantial portion of the assets used in the Turkey Operations), applied by
the Company or any of its Subsidiaries to repay Indebtedness incurred pursuant
to Section 5.05(b)(i) hereof pursuant to Section 5.06 hereof and (y) 75% of the
fair market value of property, plant, equipment and intangibles (excluding
goodwill) of the Company and its consolidated Restricted Subsidiaries;

                  (2) Liens on the assets of the Company and any Restricted
Subsidiary securing Indebtedness and other Obligations to the extent that such
Indebtedness is permitted to be incurred by Section 5.05(b)(ii), (iii) and
(xiii)(b) hereof;

                  (3) Liens on the assets of the Company and any Restricted
Subsidiary securing Permitted Refinancing Indebtedness to the extent that (a)
such Permitted Refinancing Indebtedness is permitted to be incurred by Section
5.05(b)(x) hereof and (b) such Permitted Refinancing Indebtedness was incurred
to refinance Indebtedness outstanding under Section 5.05(b)(i), (ii), (iii) or
(xiii)(b) hereof;

                  (4) Liens in favor of the Company or its Restricted
Subsidiaries;

                  (5) Liens on property of a Person existing at the time such
Person is acquired by, merged with or into or consolidated with the Company or
any Restricted Subsidiary of the Company; provided, that such Liens were in
existence prior to the contemplation of such acquisition, merger or
consolidation and do not extend to any assets other than those of the Person
acquired by, merged into or consolidated with the Company or the Restricted
Subsidiary;

                  (6) Liens on property existing at the time of acquisition
thereof by the Company or any Restricted Subsidiary of the Company; provided,
that such Liens were in existence prior to the contemplation of such
acquisition;

                  (7) Liens to secure the performance of statutory obligations,
surety or appeal bonds, performance bonds or other obligations of a like nature
incurred in the ordinary course of business;

                  (8) Liens to secure Indebtedness permitted by Section
5.05(b)(v), (vi) and (viii) hereof (or Permitted Refinancing Indebtedness
relating thereto, provided that the principal

                                       14
<PAGE>   19

amount of the Indebtedness secured does not increase and the Liens do not extend
to other property or assets) covering only the assets acquired with such
Indebtedness;

                  (9) Liens for taxes, assessments or governmental charges or
claims that are not yet delinquent or that are being contested in good faith by
appropriate proceedings promptly instituted and diligently concluded, provided,
that any reserve or other appropriate provision as shall be required in
conformity with GAAP shall have been made therefor;

                 (10) Liens on accounts receivable or inventory of a
Securitization Subsidiary or rights with respect thereto in connection with a
Permitted Securitization Program;

                 (11) Liens encumbering customary initial deposits and margin
deposits, and other Liens that are within the general parameters customary in
the industry and incurred in the ordinary course of business, in each case,
securing Indebtedness under Hedging Obligations designed solely to protect the
Company or any of its Restricted Subsidiaries from fluctuations in interest
rates, currencies or the price of commodities;

                 (12) Liens on the property of Foreign Restricted Subsidiaries
and on intercompany Indebtedness to the Company to secure Indebtedness permitted
by Section 5.05(b)(xii) hereof; and

                 (13) Liens incurred in the ordinary course of business of the
Company or any Restricted Subsidiary of the Company with respect to obligations
that do not exceed $5.0 million at any one time outstanding.

                  "PERMITTED REFINANCING INDEBTEDNESS" means any Indebtedness of
the Company or any of its Restricted Subsidiaries issued in exchange for, or the
net proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided, that:

                  (1) the principal amount (or accreted value, if applicable) of
such Permitted Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable), of the Indebtedness so extended, refinanced,
renewed, replaced, defeased or refunded (plus all accrued interest thereon and
the amount of all customary expenses and premiums incurred in connection
therewith); provided, however, that with respect to Indebtedness denominated in
currency other than United States dollars, if the principal amount of such
Indebtedness is extended, refinanced, renewed, replaced, defeased or refunded
with Indebtedness denominated in the same foreign currency and not exceeding the
principal amount (or accreted value, if applicable) thereof in such denomination
of foreign currency, then it shall not be deemed to have exceeded the principal
amount (or accreted value, if applicable) of the refinanced Indebtedness solely
as a result of fluctuations in the exchange rate of such foreign currency;

                  (2) such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and has a Weighted Average
Life to Maturity equal to or greater than the Weighted Average Life to Maturity
of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded;

                                       15
<PAGE>   20

                  (3) if the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded is subordinated in right of payment to the Notes,
such Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and is subordinated in right of payment to, the Notes on
terms at least as favorable to the Holders of Notes as those contained in the
documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; and

                  (4) such Indebtedness is incurred either by the Company or a
Guarantor or by the Restricted Subsidiary who is the obligor on the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded.

                  "PERMITTED SECURITIZATION PROGRAM" means a transaction or
series of transactions (including amendments, supplements, extensions, renewals,
replacements, refinancings or modifications thereof) pursuant to which a
Securitization Subsidiary purchases accounts receivable or inventory from the
Company or any Restricted Subsidiary and finances or sells such accounts
receivables or inventory or fractional interests therein; provided, that (i) the
Board of Directors shall have determined in good faith that such Permitted
Securitization Program is economically fair and reasonable to the Company and
the Securitization Subsidiary, (ii) all sales of accounts receivable or
inventory by the Securitization Subsidiary are made at fair market value (as
determined in good faith by the Board of Directors), (iii) the financing terms,
covenants, termination events and other provisions thereof shall be market terms
(as determined in good faith by the Board of Directors), (iv) no portion of the
Indebtedness of a Securitization Subsidiary shall be Guaranteed Indebtedness or
is recourse to the Company or any Restricted Subsidiary (other than to such
Securitization Subsidiary and other than recourse for customary representations,
warranties, covenants and indemnities) and (v) neither the Company nor any
Subsidiary (other than the Securitization Subsidiary) has any obligation to
maintain or preserve the Securitization Subsidiary's financial condition.

                  "PILGRIM FAMILY" means Lonnie A. "Bo" Pilgrim, his spouse, his
issue, his estate and any trust, partnership or other entity primarily for the
benefit of him, his spouse and/or issue.

                  "PREFERRED STOCK" means, with respect to any Person, any and
all shares, interests, participations or other equivalents (however designated,
whether voting or non- voting) of such Person's preferred or preference stock,
whether now outstanding or hereafter issued, including, without limitation, all
series and classes of such preferred or preference stock.

                  "PUBLIC EQUITY OFFERING" means a public offering and sale of
Capital Stock (other than Disqualified Stock) for cash made on a primary basis
by the Company after the date of the Indenture.

                  "RESTRICTED INVESTMENT" means an Investment other than a
Permitted Investment.

                  "RESTRICTED SUBSIDIARY" of a Person means any Subsidiary of
the referent Person that is not an Unrestricted Subsidiary.

                  "S&P" means Standard & Poor's Ratings Group, a division of
McGraw Hill, or any successor to the rating agency business thereof.

                                       16
<PAGE>   21

                  "SEC" means the United States Securities and Exchange
Commission.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
and the rules and regulations of the SEC promulgated thereunder.

                  "SECURITIZATION SUBSIDIARY" means a Restricted Subsidiary or
an Unrestricted Subsidiary of the Company which is established for the limited
purpose of acquiring and financing or selling (including, without limitation,
interests therein) accounts receivable or inventory and engaging in activities
ancillary thereto.

                  "SIGNIFICANT SUBSIDIARY" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the date hereof.

                  "STATED MATURITY" means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which such
payment of interest or principal was scheduled to be paid in the original
documentation governing such Indebtedness, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior
to the date originally scheduled for the payment thereof.

                  "SUBSIDIARY" means, with respect to any specified Person:

                  (1) any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); and

                  (2) any partnership (a) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person
or (b) the only general partners of which are such Person or one or more
Subsidiaries of such Person (or any combination thereof).

                  "TURKEY OPERATIONS" means the Company's and/or its Restricted
Subsidiaries' turkey operations as substantially constituted on the date of this
Supplemental Indenture.

                  "UNRESTRICTED SUBSIDIARY" means any Subsidiary of the Company
that is designated by the Board of Directors as an Unrestricted Subsidiary
pursuant to a Board Resolution, but only to the extent that such Subsidiary:

                  (1) has no Indebtedness other than Non-Recourse Debt;

                  (2) is not party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary of the Company
unless the terms of any such agreement, contract, arrangement or understanding
are no less favorable to the Company or such Restricted Subsidiary than those
that might be obtained at the time from Persons who are not Affiliates of the
Company;

                                       17
<PAGE>   22

                  (3) is a Person with respect to which neither the Company nor
any of its Restricted Subsidiaries has any direct or indirect obligation (a) to
subscribe for additional Equity Interests or (b) to maintain or preserve such
Person's financial condition or to cause such Person to achieve any specified
levels of operating results; and

                  (4) has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of its
Restricted Subsidiaries.

                  Any designation of a Subsidiary of the Company as an
Unrestricted Subsidiary shall be evidenced to the Trustee by filing with the
Trustee a certified copy of the Board Resolution giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 5.03 hereof.
If, at any time, any Unrestricted Subsidiary would fail to meet the preceding
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of the Indenture and any Indebtedness of
such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the
Company as of such date and, if such Indebtedness is not permitted to be
incurred as of such date under Section 5.05 hereof, the Company shall be in
Default of such covenant. The Board of Directors of the Company may at any time
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided,
that such designation shall be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation shall only be permitted if (1) such
Indebtedness is permitted under Section 5.05 hereof, calculated on a pro forma
basis as if such designation had occurred at the beginning of the eight-quarter
reference period, and (2) no Default or Event of Default would be in existence
following such designation.

                  "U.S. GOVERNMENT OBLIGATIONS" means direct noncallable
obligations of, or noncallable obligations the payment of principal of and
interest on which is guaranteed by, the United States of America, or to the
payment of which obligations or guarantees the full faith and credit of the
United States of America is pledged, or beneficial interests in a trust the
corpus of which consists exclusively of money or such obligations or a
combination thereof.

                  "VOTING STOCK" of any Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

                  "WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

                  (1) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in
respect thereof, by (b) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by

                  (2) the then outstanding principal amount of such
Indebtedness.

                  "WHOLLY OWNED RESTRICTED SUBSIDIARY" of any specified Person
means a Restricted Subsidiary of such Person all of the outstanding Capital
Stock or other ownership interests of which (other than directors' qualifying
shares and shares issued to other Persons to comply with local law that
collectively do not constitute more than 5% of all of the Capital Stock

                                       18
<PAGE>   23

ordinarily having the power to vote for the election of directors of such
Restricted Subsidiary) shall at the time be owned by such Person or by one or
more Wholly Owned Restricted Subsidiaries of such Person and one or more Wholly
Owned Restricted Subsidiaries of such Person.

                  Section 2.02. Other Definitions.
<Table>
<Caption>
                                                          Defined in
                   Term                                    Section
<S>                                                       <C>
          "Additional Notes"                                 3.01
          "Affiliate Transaction"                            5.07
          "Asset Sale Offer"                                 4.03
          "Benefited Party"                                 10.01
          "Calculation Date"                                 2.01
          "Camp County Loan Agreement"                       5.05
          "Change of Control Offer"                          5.11
          "Change of Control Payment"                        5.11
          "Change of Control Payment Date"                   5.11
          "Company"                                        Preamble
          "Covenant Defeasance"                              8.03
          "Event of Default"                                 7.01
          "Excess Proceeds"                                  5.06
          "Guaranteed Indebtedness"                          5.09
          "incur"                                            5.05
          "Indenture"                                      Recitals
          "Intangible Assets"                                2.01
          "Issue Date"                                       3.01
          "Legal Defeasance"                                 8.02
          "Notes"                                            1.01
          "Offer Amount"                                     4.03
          "Offer Period"                                     4.03
          "Original Indenture"                             Recitals
          "Payment Default"                                  7.01
          "Permitted Debt"                                   5.05
          "Purchase Date"                                    4.03
          "Supplemental Indenture"                         Preamble
          "Trustee"                                        Preamble
          "Restricted Payments"                              5.03
</Table>

                                  ARTICLE III.
                                    THE NOTES

                  Section 3.01. Issuance of Additional Notes. The Company may,
subject to compliance with Section 5.05 hereof, issue additional Notes in an
additional aggregate principal amount of up to $200,000,000 ("Additional Notes")
under this Indenture which will have identical terms as the Notes issued on
August 9, 2001 (the "Issue Date") other than with respect

                                       19
<PAGE>   24

to the Issue Date, issue price and first payment of interest. The Notes issued
on the Issue Date and any Additional Notes subsequently issued shall be treated
as a single class for all purposes under this Indenture.

                  Section 3.02. Payments by Company by Wire Transfer. The
Company shall make all interest, premium, if any, and principal payments by wire
transfer to any Holder who shall have given written directions to the Company to
make such payments by wire transfer pursuant to the wire transfer instructions
supplied to the Company by such Holder.

                                  ARTICLE IV.
                            REDEMPTION AND PREPAYMENT

                  Section 4.01. Optional Redemption.

                  (a) Except as set forth in subparagraph (b) of this Section
4.01, the Company shall not have the option to redeem the Notes prior to
September 15, 2006. On or after September 15, 2006, the Company may redeem all
or a part of the Notes upon not less than 30 nor more than 60 days' notice, at
the redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest, if any, thereon to the applicable
redemption date, if redeemed during the twelve-month period beginning on
September 15 of the years indicated below:

<Table>
<Caption>
          Year                                       Percentage
          ----                                       ----------
<S>                                                  <C>
          2006                                        104.813%
          2007                                        103.208%
          2008                                        101.604%
          2009 and thereafter                         100.000%
</Table>

                  (b) Notwithstanding the provisions of subparagraph (a) of this
Section 4.01, at any time prior to September 15, 2004, the Company may on any
one or more occasions redeem up to 35% of the aggregate principal amount of
Notes issued under this Indenture (including, if issued, any Additional Notes)
at a redemption price of 109.625% of the principal amount thereof, plus accrued
and unpaid interest, if any, to the redemption date, with the net cash proceeds
of one or more Public Equity Offerings; provided, that:

                           (i) at least 65% of the aggregate principal amount of
                  Notes issued under this Indenture (including, if issued, any
                  Additional Notes) remains outstanding immediately after the
                  occurrence of such redemption (excluding Notes held by the
                  Company and its Subsidiaries); and

                           (ii) the redemption must occur within 45 days of the
                  date of the closing of such Public Equity Offering.

                                       20
<PAGE>   25

                  (c) Any redemption pursuant to this Section 4.01 shall be made
pursuant to the provisions of Sections 1101 through 1107 of the Original
Indenture.

                  Section 4.02. Mandatory Redemption. Except as set forth in
Sections 5.06 and 5.11, the Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

                  Section 4.03. Offer to Purchase by Application of Excess
Proceeds. In the event that, pursuant to Section 5.06 hereof, the Company shall
be required to commence an offer to all Holders to purchase Notes (an "Asset
Sale Offer"), it shall follow the procedures specified below.

                  The Asset Sale Offer shall remain open for a period of 20
business days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "Offer Period"). No
later than five business days after the termination of the Offer Period (the
"Purchase Date"), the Company shall purchase the principal amount of Notes
required to be purchased pursuant to Section 5.06 hereof (the "Offer Amount")
or, if less than the Offer Amount has been tendered, all Notes tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

                  If the Purchase Date is on or after an interest record date
and on or before the related interest payment date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.

                  Upon the commencement of an Asset Sale Offer, the Company
shall send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The Asset Sale Offer shall be made to all Holders. The notice,
which shall govern the terms of the Asset Sale Offer, shall state:

                  (a) that the Asset Sale Offer is being made pursuant to this
Section 4.03 and Section 5.06 hereof and the length of time the Asset Sale Offer
shall remain open;

                  (b) the Offer Amount, the purchase price and the Purchase
Date;

                  (c) that any Note not tendered or accepted for payment shall
continue to accrete or accrue interest;

                  (d) that, unless the Company defaults in making such payment,
any Note accepted for payment pursuant to the Asset Sale Offer shall cease to
accrue interest after the Purchase Date;

                  (e) that Holders electing to have a Note purchased pursuant to
an Asset Sale Offer may only elect to have all of such Note purchased and may
not elect to have only a portion of such Note purchased;

                                       21
<PAGE>   26

                  (f) that Holders electing to have a Note purchased pursuant to
any Asset Sale Offer shall be required to surrender the Note, with the form
entitled "Option of Holder to Elect Purchase" on the reverse of the Note
completed, or transfer by book-entry transfer, to the Company, a Depositary, if
appointed by the Company, or a paying agent at the address specified in the
notice at least three days before the Purchase Date;

                  (g) that Holders shall be entitled to withdraw their election
if the Company, the Depositary or the paying agent, as the case may be,
receives, not later than the expiration of the Offer Period, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased;

                  (h) that, if the aggregate principal amount of Notes tendered
by Holders into an Asset Sale Offer exceeds the Offer Amount, the Trustee shall
select the Notes to be purchased (1) if the Notes are listed, in compliance with
the requirements of the principal national securities exchange on which the
Notes are then listed or (2) if the Notes are not so listed, on a pro rata
basis, by lot or by such method as the Trustee shall deem fair and appropriate
(with such adjustments as may be deemed appropriate by the Company so that only
Notes in denominations of $1,000, or integral multiples thereof, shall be
purchased); and

                  (i) that Holders whose Notes were purchased only in part shall
be issued new Notes equal in principal amount to the unpurchased portion of the
Notes surrendered (or transferred by book-entry transfer).

                  On or before the Purchase Date, the Company shall, to the
extent lawful, accept for payment, in accordance with clause (h) above, the
Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale
Offer, or if less than the Offer Amount has been tendered, all Notes tendered,
and shall deliver to the Trustee an Officers' Certificate stating that such
Notes or portions thereof were accepted for payment by the Company in accordance
with the terms of this Section 4.03. The Company, the Depositary or the paying
agent, as the case may be, shall promptly (but in any case not later than five
days after the Purchase Date) mail or deliver to each tendering Holder an amount
equal to the purchase price of the Notes tendered by such Holder and accepted by
the Company for purchase, and the Company shall promptly issue a new Note, and
the Trustee, upon written request from the Company shall authenticate and mail
or deliver such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof. The Company
shall publicly announce the results of the Asset Sale Offer on the Purchase
Date.

                  Other than as specifically provided in this Section 4.03, any
purchase pursuant to this Section 4.03 shall be made pursuant to the provisions
of Sections 1101 through 1107 of the Original Indenture.

                                       22
<PAGE>   27

                                   ARTICLE V.
                                    COVENANTS

                  The following covenants shall apply to the Notes in addition
to those set forth in Article Ten of the Original Indenture, except that Section
5.01 of this Supplemental Indenture shall preempt Section 1005 of the Original
Indenture in its entirety with respect to the Notes.

                  Section 5.01. Compliance Certificate.

                  (a) The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he or she may have knowledge and
what action the Company is taking or proposes to take with respect thereto) and
that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to
take with respect thereto.

                  (b) The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith and in any event within five days
upon any officer becoming aware of any Default or Event of Default or an event
which, with notice or the lapse of time or both, would constitute an Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

                  Section 5.02. Stay, Extension and Usury Laws. The Company
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay, extension or usury law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
this Indenture; and the Company hereby expressly waives all benefit or advantage
of any such law, and covenants that it shall not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as though
no such law has been enacted.

                  Section 5.03. Restricted Payments.

                  (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly:

                  (i) declare or pay any dividend or make any other payment or
distribution on account of the Company's or any of its Restricted Subsidiaries'
Equity Interests (including, without limitation, any payment in connection with
any merger or consolidation involving the Company or any of its Restricted
Subsidiaries) or to the direct or indirect holders of the

                                       23
<PAGE>   28

Company's or any of its Restricted Subsidiaries' Equity Interests in their
capacity as such (other than dividends or distributions payable (x) in Equity
Interests (other than Disqualified Stock) of the Company or (y) to the Company
or a Restricted Subsidiary of the Company);

                  (ii) purchase, redeem or otherwise acquire or retire for value
(including, without limitation, in connection with any merger or consolidation
involving the Company) any Equity Interests of the Company or any direct or
indirect parent of the Company or any Restricted Subsidiary of the Company
(other than any such Equity Interests owned by the Company or any Restricted
Subsidiary of the Company);

                  (iii) make any payment on or with respect to, or purchase,
redeem, defease or otherwise acquire or retire for value any Indebtedness that
is subordinated to the Notes or the Subsidiary Guarantees, except a payment of
interest or principal to a Wholly Owned Restricted Subsidiary of the Company or
at the Stated Maturity thereof; or

                  (iv) make any Restricted Investment (all such payments and
other actions set forth in clauses (i) through (iv) above being collectively
referred to as "Restricted Payments"),

                  (b) Notwithstanding paragraph (a) of this Section 5.03, the
Company shall be permitted to engage in, and to cause or allow any of its
Restricted Subsidiaries to engage in, a Restricted Payment, so long as, at the
time of and after giving effect to such Restricted Payment:

                  (i) no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof; and

                  (ii) the Company would, at the time of such Restricted Payment
and after giving pro forma effect thereto as if such Restricted Payment had been
made at the beginning of the applicable eight-quarter period, have been
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 5.05(a) hereof; and

                  (iii) such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company and its Subsidiaries
after the date of the Indenture (excluding Restricted Payments permitted by
clauses (ii), (iii), (iv) and (viii) of paragraph (c) of this Section 5.03) is
less than the sum, without duplication, of

                           (A) 50% of the Consolidated Net Income of the Company
                  for the period (taken as one accounting period) from the
                  beginning of the fiscal quarter beginning immediately prior to
                  the date of the Indenture to the end of the Company's most
                  recently ended fiscal quarter for which internal financial
                  statements are available at the time of such Restricted
                  Payment (or, if such Consolidated Net Income for such period
                  is a deficit, less 100% of such deficit), plus

                           (B) 100% of the aggregate net cash proceeds received
                  by the Company since the date of the Indenture as a
                  contribution to its common equity capital or from the issue or
                  sale of Equity Interests of the Company (other than
                  Disqualified Stock) or from the issue or sale of convertible
                  or exchangeable

                                       24
<PAGE>   29

                  Disqualified Stock or convertible or exchangeable debt
                  securities of the Company that have been converted into or
                  exchanged for such Equity Interests (other than Equity
                  Interests (or Disqualified Stock or debt securities) sold to a
                  Restricted Subsidiary of the Company), plus

                           (C) to the extent that any Restricted Investment that
                  was made after the date of the Indenture is sold for cash or
                  otherwise liquidated or repaid for cash, the lesser of (i) the
                  cash return of capital with respect to such Restricted
                  Investment (less the cost of disposition, if any) and (ii) the
                  initial amount of such Restricted Investment, plus

                           (D) if any Unrestricted Subsidiary is redesignated as
                  a Restricted Subsidiary, the fair market value of such
                  redesignated Subsidiary (as determined in good faith by the
                  Board of Directors) as of the date of its redesignation, not
                  to exceed in the case of any Subsidiary the amount of
                  Restricted Investments previously made by the Company or any
                  of its Restricted Subsidiaries in such Unrestricted Subsidiary
                  (subsequent to the date of the Indenture) which were treated
                  as Restricted Payments (other than any such Restricted Payment
                  that was made pursuant to the provisions of clauses (ii)
                  through (vii) of paragraph (c) below).

                  (c) Notwithstanding paragraphs (a) and (b) of this Section
5.03, the Company shall be permitted to effect, and to cause or allow any of its
Restricted Subsidiaries to effect:

                  (i) the payment of any dividend within 60 days after the date
of declaration thereof, if at said date of declaration such payment would have
complied with the provisions of the Indenture;

                  (ii) the redemption, repurchase, retirement, defeasance or
other acquisition of any subordinated Indebtedness of the Company or any
Restricted Subsidiary or of any Equity Interests of the Company in exchange for,
or out of the net cash proceeds of the substantially concurrent sale (other than
to a Subsidiary of the Company) of, Equity Interests of the Company (other than
Disqualified Stock) or Indebtedness of the Company which is subordinate or
junior in right of payment to the Notes and has a Weighted Average Life to
Maturity no less than that of the Indebtedness being refinanced; provided, that
the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement, defeasance or other acquisition shall be
excluded from clause (b)(iii)(B) of this Section 5.03;

                  (iii) the defeasance, redemption, repurchase or other
acquisition of subordinated Indebtedness of the Company or any Restricted
Subsidiary with the net cash proceeds from an incurrence of Permitted
Refinancing Indebtedness; provided, that the amount of any such net cash
proceeds that are utilized for any such defeasance, redemption, repurchase or
other acquisition shall be excluded from clause (b)(iii)(B) of this Section
5.03;

                  (iv) Investments made out of the net cash proceeds of a
substantially concurrent issue and sale (other than to a Subsidiary of the
Company) of Equity Interests (other than Disqualified Stock) of the Company;
provided, that the amount of any such net cash

                                       25
<PAGE>   30
proceeds that are utilized for any such Investment shall be excluded from
clause (b)(iii)(B) of this Section 5.03;

                  (v) the payment of any dividend or distribution by a
Restricted Subsidiary of the Company to the holders of its common Equity
Interests on a pro rata basis so long as the Company or one of its Restricted
Subsidiaries receives at least a pro rata share (and in like form) of the
dividend or distribution in accordance with its common Equity Interests;

                  (vi) the payment by the Company of cash dividends on its
common stock in an aggregate amount up to $5.0 million per year;

                  (vii) the repurchase, redemption or other acquisition or
retirement for value of any Equity Interests of the Company or any Restricted
Subsidiary of the Company held by any member of the management or the Board of
Directors of the Company or any Restricted Subsidiary pursuant to any equity
subscription agreement, stock option agreement or similar agreement approved by
the Board of Directors of the Company; provided, that the aggregate price paid
for all such repurchased, redeemed, acquired or retired Equity Interests shall
not exceed $500,000 in any twelve-month period;

                  (viii) the redemption of the 10 7/8% Senior Subordinated Notes
of the Company outstanding on the date of the Indenture with the net cash
proceeds from the issuance of the Notes within 60 days following the date of the
Indenture; and

                  (ix) other Restricted Payments in an aggregate amount not to
exceed $50 million,

provided, however, that, with respect to clauses (ii) through (ix) above, no
Default or Event of Default shall have occurred and is continuing at the time of
such Restricted Payment or would be caused thereby.

                  (d) The amount of all Restricted Payments (other than cash)
shall be the fair market value on the date of the Restricted Payment of the
asset(s) or securities proposed to be transferred or issued to or by the Company
or such Subsidiary, as the case may be, pursuant to the Restricted Payment. The
fair market value of any assets or securities that are required to be valued by
this covenant shall be determined by the Board of Directors and set forth in a
resolution. The Board of Directors' determination must be based upon an opinion
or appraisal issued by an accounting, appraisal or investment banking firm of
national standing or appraisal firm acceptable to the Trustee if the fair market
value exceeds $25.0 million. Not later than the date of making any Restricted
Payment with a fair market value in excess of $25.0 million, the Company shall
deliver to the Trustee an Officers' Certificate stating that such Restricted
Payment is permitted and setting forth the basis upon which the calculations
required by this Section 5.03 were computed, together with a description and
amounts of all Restricted Payments made by the Company pursuant to this Section
5.03 since the date of the most recently delivered Officers' Certificate
pursuant to this paragraph (or, if none, the date of this Supplemental
Indenture), together with a copy of any fairness opinion or appraisal required
by this Indenture.

                                       26
<PAGE>   31

                  Section 5.04. Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries.

                  (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or permit to exist or
become effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to:

                  (i) pay dividends or make any other distributions on its
Capital Stock to the Company or any of its Restricted Subsidiaries, or with
respect to any other interest or participation in, or measured by, its profits,
or pay any indebtedness owed to the Company or any of its Restricted
Subsidiaries;

                  (ii) make loans or advances to the Company or any of its
Restricted Subsidiaries; or

                  (iii) transfer any of its properties or assets to the Company
or any of its Restricted Subsidiaries.

                  (b) The provisions of paragraph (a) of this Section 5.04 will
not apply to encumbrances or restrictions existing under or by reason of:

                  (i) Existing Credit Facilities as in effect on the date of the
Indenture and any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings thereof, provided that
such amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are not materially more restrictive,
taken as a whole, with respect to such dividend and other payment restrictions
than those contained in such Existing Credit Facilities, as in effect on the
date of the Indenture;

                  (ii) the Indenture and the Notes and, if any, the Additional
Notes;

                  (iii) applicable law;

                  (iv) any instrument governing Indebtedness or Capital Stock of
a Person acquired by the Company or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Indebtedness
was incurred in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person, or the property or assets of the
Person, so acquired, provided, that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of the Indenture to be incurred;

                  (v) customary non-assignment provisions in leases entered into
in the ordinary course of business and consistent with past practices;

                  (vi) purchase money obligations for property acquired in the
ordinary course of business that impose restrictions on the property so acquired
of the nature described in clause (a)(iii) of this Section 5.04;

                                       27
<PAGE>   32

                  (vii) any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by that Subsidiary pending
its sale or other disposition;

                  (viii) Permitted Refinancing Indebtedness, provided, that the
restrictions contained in the agreements governing such Permitted Refinancing
Indebtedness are not materially more restrictive, taken as a whole, than those
contained in the agreements governing the Indebtedness being refinanced;

                  (ix) Liens securing Indebtedness that limit the right of the
debtor to dispose of the assets subject to such Lien;

                  (x) provisions with respect to the disposition or distribution
of assets or property in joint venture agreements, assets sale agreements, stock
sale agreements and other similar agreements entered into in the ordinary course
of business;

                  (xi) restrictions on cash or other deposits or net worth
imposed by customers under contracts entered into in the ordinary course of
business; and

                  (xii) customary restrictions imposed on any Securitization
Subsidiary in connection with a Permitted Securitization Program, including,
without limitation, those imposed on Pilgrim's Pride Funding Corporation on the
date of this Supplemental Indenture.

                  Section 5.05. Incurrence of Indebtedness and Issuance of
Preferred Stock.

                  (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, "incur") any
Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of Preferred Stock; provided, however, that the Company may
incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, and
the Domestic Restricted Subsidiaries and any other Guarantors may incur
Indebtedness or issue Preferred Stock, if the Fixed Charge Coverage Ratio for
the Company's most recently ended eight full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Preferred Stock or Disqualified
Stock is issued would have been at least 2.0 to 1, determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred or the Preferred Stock or
Disqualified Stock had been issued, as the case may be, at the beginning of such
eight-quarter period.

                  (b) Notwithstanding the foregoing, clause (a) of this Section
5.05 will not prohibit the incurrence or issuance of any of the following items
of Indebtedness or Preferred Stock (collectively, "Permitted Debt"):

                  (i) the incurrence by the Company or any Guarantor of
Indebtedness pursuant to Existing U.S. Credit Facilities (and any replacements,
renewals, refinancings, extensions or amendments of any thereof) in an aggregate
principal amount at any one time outstanding as of the date of any such
incurrence under this clause (i) not to exceed an amount equal to $485.0

                                       28
<PAGE>   33

million, less the aggregate amount of all Net Proceeds of Asset Sales (other
than a sale of all or a substantial portion of the assets used in or related to
the Turkey Operations) applied by the Company or any of its Subsidiaries to
repay Indebtedness incurred under this clause (i) pursuant to Section 5.06
hereof;

                  (ii) the incurrence by the Company or any Guarantor of
Indebtedness pursuant to a revolving credit facility under the Existing U.S.
Credit Facilities (and any replacements, renewals, refinancings, extensions or
amendments of any thereof) in an aggregate principal amount outstanding at any
one time as of the date of any such incurrence under this clause (ii) not to
exceed the Domestic Borrowing Base;

                  (iii) the incurrence of Indebtedness by the Foreign Restricted
Subsidiaries pursuant to the Existing Foreign Credit Facility (and any
replacements, renewals, refinancings, extensions or amendments thereof) in an
aggregate principal amount outstanding at any one time as of the date of any
such incurrence under this clause (iii) not to exceed the greater of (x) $30.0
million and (y) the Foreign Borrowing Base;

                  (iv) the incurrence by the Company and the Guarantors of
Indebtedness represented by the Notes to be issued on the date of the Indenture
(including, in each case, any Subsidiary Guarantees);

                  (v) the incurrence by the Company or any of its Restricted
Subsidiaries of purchase money obligations incurred in the ordinary course of
business in an amount outstanding at any one time as of the date of any such
incurrence not to exceed 75% of the purchase price or fair market value of the
asset purchased, acquired or constructed;

                  (vi) the incurrence by the Company or any of its Restricted
Subsidiaries of Capital Lease Obligations incurred in the ordinary course of
business in an amount outstanding at any one time as of the date of any such
incurrence not to exceed 5% of the Company's Consolidated Tangible Net Worth;

                  (vii) the incurrence by the Company or any of its Restricted
Subsidiaries of Hedging Obligations pursuant to which the Company or the
Restricted Subsidiary has hedged against its actual exposure to fluctuations in
interest rates, currency values or commodity prices;

                  (viii) the incurrence by the Company or any Guarantor of up to
$25.0 million aggregate principal amount of Indebtedness to the Camp County
Industrial Development Corporation pursuant to that certain Loan Agreement (the
"Camp County Loan Agreement"), dated as of June 15, 1999, between the Company
and the Camp County Industrial Development Corporation, including the incurrence
by the Company or any Guarantor of Indebtedness to Harris Trust and Savings Bank
pursuant to the Reimbursement Agreement dated June 15, 1999 between the Company
and Harris Trust and Savings Bank, or under any irrevocable letter of credit,
surety bond, insurance policy or other similar instrument issued by any Person
to support the Company's or any Guarantor's Obligations pursuant to the Camp
County Loan Agreement or in connection with the related bonds issued by the Camp
County Industrial Development Corporation (and reimbursement and similar
agreements in respect thereof) and any Permitted Refinancing Indebtedness
relating thereto; provided, that such $25.0 million and any

                                       29
<PAGE>   34

corresponding credit enhancement or reimbursement obligation with respect
thereto shall be reduced by any prepayments or scheduled payments under the Camp
County Loan Agreement;

                  (ix) the incurrence by the Company or any of its Restricted
Subsidiaries of additional Indebtedness in an aggregate principal amount (or
accreted value, as applicable) at any time outstanding under this clause (ix)
not to exceed $75 million;

                  (x) the incurrence by the Company or any of its Restricted
Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net
proceeds of which are used to refund, refinance or replace Indebtedness (other
than intercompany Indebtedness) that was permitted by the Indenture to be
incurred under paragraph (a) of this Section 5.05 or clauses (i), (ii), (iii),
(v), (vi), (viii) or (xiii) of this paragraph (b);

                  (xi) the incurrence by the Company or any of its Restricted
Subsidiaries of intercompany Indebtedness between or among the Company and any
of its Restricted Subsidiaries; provided, however, that:

                           (A) if the Company or any Guarantor is the obligor on
                  such Indebtedness, such Indebtedness must be expressly
                  subordinated to the prior payment in full in cash of all
                  Obligations with respect to the Notes, in the case of the
                  Company, or the Subsidiary Guarantee, in the case of a
                  Guarantor; and

                           (B) (1) any subsequent issuance or transfer of Equity
                  Interests that results in any such Indebtedness being held by
                  a Person other than the Company or a Restricted Subsidiary
                  thereof and (2) any sale or other transfer of any such
                  Indebtedness to a Person that is not either the Company or a
                  Restricted Subsidiary thereof shall be deemed, in each case,
                  to constitute an incurrence of such Indebtedness by the
                  Company or such Restricted Subsidiary, as the case may be,
                  that was not permitted by this clause (xi);

                  (xii) the guarantee by the Company or any of its Restricted
Subsidiaries of Indebtedness of the Company or a Restricted Subsidiary that was
permitted to be incurred by another provision of this covenant and, in the case
of a Domestic Restricted Subsidiary, the provisions of Section 5.09;

                  (xiii) Indebtedness of the Company to the extent the net
proceeds thereof are promptly (a) used to purchase Notes tendered in a Change of
Control Offer made as a result of a Change of Control in accordance with this
Indenture or (b) deposited to defease the Notes in accordance with Section 8.04
hereof; and

                  (xiv) the issuance of Preferred Stock to the Company or a
Wholly Owned Restricted Subsidiary.

                  (c) For purposes of determining compliance with this Section
5.05, in the event that an item of proposed Indebtedness meets the criteria of
more than one of the categories of Permitted Debt described in clauses (i)
through (xiv) above, or is entitled to be incurred pursuant to paragraph (a) of
this Section 5.05, the Company will be permitted to classify such item of
Indebtedness on the date of its incurrence, or reclassify all or a portion of
such item of

                                       30
<PAGE>   35

Indebtedness, in any manner that complies with this covenant; provided, that (x)
Indebtedness outstanding under the Existing U.S. Credit Facilities on the date
of this Indenture will be deemed to have been incurred on such date in reliance
on the exception provided in clauses (i) and (ii), as applicable, of paragraph
(b) of this Section 5.05 and (y) Indebtedness outstanding under Existing Foreign
Credit Facility on the date of this Indenture will be deemed to have been
incurred on such date in reliance on the exception provided in clause (iii) of
paragraph (b) of this Section 5.05.

                  (d) The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the form
of additional Indebtedness with the same terms, and the payment of dividends on
Disqualified Stock in the form of additional shares of the same class of
Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Stock for purposes of this Section 5.05; provided, in
each such case, that the amount thereof is included in Fixed Charges of the
Company as accrued.

                  (e) With respect to Indebtedness denominated in a currency
other than United States dollars, the Company or any of its Restricted
Subsidiaries shall not have been deemed to incur Indebtedness solely as a result
of fluctuations in the exchange rates of currencies.

                  Section 5.06. Asset Sales.

                  (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, consummate an Asset Sale unless:

                  (i) the Company (or the Restricted Subsidiary, as the case may
be) receives consideration at the time of such Asset Sale at least equal to the
fair market value of the assets or Equity Interests issued or sold or otherwise
disposed of;

                  (ii) such fair market value is determined by the Company's
Board of Directors and evidenced by a resolution of the Board of Directors and,
if such fair market value exceeds $25.0 million, is set forth in an Officers'
Certificate delivered to the Trustee; and

                  (iii) at least 75% of the consideration therefor received by
the Company or such Restricted Subsidiary is in the form of cash or assets or
Voting Stock of a type referred to in clauses (ii), (iii) or (iv) of paragraph
(b) of this Section 5.06. For purposes of this Section 5.06, each of the
following shall be deemed to be cash:

                           (A) any liabilities (as shown on the Company's or
                  such Restricted Subsidiary's most recent balance sheet) of the
                  Company or any Restricted Subsidiary (other than contingent
                  liabilities and liabilities that are by their terms
                  subordinated to the Notes or any Subsidiary Guarantee) that
                  are assumed by the transferee of any such assets pursuant to a
                  customary novation agreement that releases the Company or such
                  Restricted Subsidiary from further liability; and

                           (B) any securities, notes or other obligations
                  received by the Company or any such Restricted Subsidiary from
                  such transferee that are

                                       31
<PAGE>   36

                  converted by the Company or such Restricted Subsidiary into
                  cash (to the extent of the cash received in that conversion)
                  within 90 days of the related Asset Sale.

                  (b) Within 270 days after the receipt of any Net Proceeds from
an Asset Sale, the Company may, at its option:

                  (i) apply such Net Proceeds to permanently repay or retire
unsubordinated Indebtedness of the Company or any Restricted Subsidiary;

                  (ii) apply such Net Proceeds to acquire all or substantially
all of the assets of, or a majority of the Voting Stock of, another business
reasonably related to the business of the Company;

                  (iii) apply such Net Proceeds to make a capital expenditure
used or useful in the Company's business;

                  (iv) apply such Net Proceeds to acquire other long-term assets
that are used or useful in the Company's business; or

                  (v) enter into a binding agreement with respect to the
application of such Net Proceeds described in clauses (ii), (iii) or (iv) of
this paragraph (b) and apply such Net Proceeds pursuant thereto within 360 days
of receipt by the Company of such Net Proceeds.

Pending the final application of any such Net Proceeds, the Company may
temporarily reduce revolving credit borrowings or otherwise invest such Net
Proceeds in any manner that is not prohibited by the Indenture.

                  (c) Any Net Proceeds from Asset Sales that are not applied or
invested as provided in paragraph (b) of this Section 5.06 will constitute
"Excess Proceeds." When the aggregate amount of Excess Proceeds exceeds $10.0
million, the Company will make an Asset Sale Offer to all Holders of Notes and
all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers to
purchase or redeem with the proceeds of sales of assets to purchase the maximum
principal amount of Notes and such other pari passu Indebtedness that may be
purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer
will be equal to 100% of principal amount plus accrued and unpaid interest, if
any, to the date of purchase, and will be payable in cash. If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use
such Excess Proceeds for any purpose not otherwise prohibited by the Indenture.
If the aggregate principal amount of Notes and such other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis based on the principal amount
of Notes and such other pari passu Indebtedness tendered. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.

                  (d) The Company will make the Asset Sale Offer in accordance
with the procedures set forth in Section 4.03 hereof and will comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent such laws and regulations are
applicable in connection with each repurchase of Notes pursuant to

                                       32
<PAGE>   37

an Asset Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with the Asset Sale provisions of the Indenture, the
Company will comply with the applicable securities laws and regulations and will
not be deemed to have breached its obligations under Section 4.03 hereof and
this Section 5.06 by virtue of such conflict.

                  Section 5.07. Transactions with Affiliates.

                  (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate (each, an "Affiliate Transaction"), unless:

                  (i) such Affiliate Transaction is on terms that are no less
favorable to the Company or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such
Restricted Subsidiary with an unrelated Person or is approved by a majority of
the disinterested members of the Board of Directors; and

                  (ii) (A) with respect to any Affiliate Transaction or series
of related Affiliate Transactions involving aggregate consideration in excess of
$5.0 million, such determination shall be set forth in a resolution adopted by
the Board of Directors stating that such Affiliate Transaction complies with
this covenant and that such Affiliate Transaction has been approved by a
majority of the disinterested members of the Board of Directors; and

                       (B) with respect to any Affiliate Transaction or series
of related Affiliate Transactions involving aggregate consideration in excess of
$10.0 million, the Board of Directors has received an opinion as to the fairness
to the Holders of such Affiliate Transaction from a financial point of view
issued by an accounting, appraisal or investment banking firm of national
standing or appraisal firm acceptable to the Trustee.

                  (b) The following items shall not be deemed to be Affiliate
Transactions and, therefore, will not be subject to the provisions of paragraph
(a) of this Section 5.07:

                  (i) any transaction entered into by the Company or any of its
Restricted Subsidiaries in the ordinary course of business and consistent with
past practices;

                  (ii) any transaction entered into by the Company and any of
its Restricted Subsidiaries or between any of the Restricted Subsidiaries;

                  (iii) transactions with a Person that is an Affiliate of the
Company solely because the Company owns an Equity Interest in such Person;

                  (iv) payment of reasonable directors fees to Persons who are
not otherwise Affiliates of the Company and reasonable indemnification
arrangements; and

                  (v) Restricted Payments that are permitted by the provisions
of Section 5.03 hereof.

                                       33
<PAGE>   38

                  Section 5.08. Liens. The Company will not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien of any kind securing Indebtedness,
Attributable Debt or trade payables on any asset now owned or hereafter
acquired, except Permitted Liens, unless, contemporaneously therewith or prior
thereto, effective provision shall be made whereby the Notes are secured equally
and ratably with (or prior to) such other Indebtedness, Attributable Debt or
trade payables, as applicable, or, in the event that such Indebtedness,
Attributable Debt or trade payables is subordinate in right of payment to the
Notes, prior to such Indebtedness, Attributable Debt or trade payables, as
applicable.

                  Section 5.09. Issuance of Guarantees by Domestic Restricted
Subsidiaries.

                  (a) The Company will not permit any Domestic Restricted
Subsidiary, directly or indirectly, to guarantee, assume or in any other manner
become liable with respect to any Indebtedness of the Company which is pari
passu with or subordinate in right of payment to the Notes ("Guaranteed
Indebtedness"), unless (i) such Domestic Restricted Subsidiary simultaneously
executes and delivers a supplemental indenture to this Indenture providing for a
guarantee of payment of the Notes by such Restricted Subsidiary and (ii) such
Domestic Restricted Subsidiary waives and will not in any manner whatsoever
claim, or take the benefit or advantage of, any rights of reimbursement,
indemnity or subrogation or any other rights against the Company or any other
Restricted Subsidiary as a result of any payment by such Domestic Restricted
Subsidiary under its Subsidiary Guarantee until the Notes have been paid in
full. If the Guaranteed Indebtedness is (A) pari passu with the Notes, then the
guarantee of such Guaranteed Indebtedness shall be pari passu with, or
subordinated to, the Subsidiary Guarantee, or (B) subordinated to the Notes,
then the guarantee of such Guaranteed Indebtedness shall be subordinated to the
Subsidiary Guarantee at least to the extent that the Guaranteed Indebtedness is
subordinated to the Notes.

                  (b) Notwithstanding the foregoing, any such Subsidiary
Guarantee by a Restricted Subsidiary of the Notes shall provide by its terms
that it shall be automatically and unconditionally released and discharged if
such Guarantor sells or otherwise disposes of all or substantially all of its
assets to, or consolidates with or merges with or into (whether or not such
Guarantor is the surviving Person), another Person, other than the Company or
another Guarantor, in compliance with the terms described of Section 10.05
hereof.

                  Section 5.10. Limitation on the Issuance and Sale of Equity
Interests in Restricted Subsidiaries. The Company will not sell, and will not
permit any Restricted Subsidiaries, directly or indirectly, to issue or sell any
Equity Interests of a Restricted Subsidiary except:

                  (i) to the Company or a Wholly Owned Restricted Subsidiary;

                  (ii) issuances of director's qualifying shares or sales to
foreign nationals of shares of Capital Stock of Foreign Restricted Subsidiaries,
to the extent required by applicable law;

                                       34
<PAGE>   39

                  (iii) if, immediately after giving effect to such issuance or
sale, such Restricted Subsidiary would no longer constitute a Restricted
Subsidiary and any Investment in such Person remaining after giving effect to
such issuance or sale would have been permitted to be made under Section 5.03
hereof if made on the date of such issuance or sale; or (iv) sales of common
stock (including options, warrants or other rights to purchase shares of such
common stock) of a Restricted Subsidiary by the Company or a Restricted
Subsidiary, provided that the Company or such Restricted Subsidiary applies the
Net Proceeds of any such sale in accordance with Section 5.06 hereof.

                  Section 5.11. Offer to Repurchase Upon Change of Control.

                  (a) Upon the occurrence of a Change of Control, the Company
shall make an offer (a "Change of Control Offer") to each Holder of Notes to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of
such Holder's Notes at an offer price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of purchase (the "Change of Control Payment"). Within ten (10) days
following any Change of Control, the Company shall mail a notice to each Holder
stating: (1) that the Change of Control Offer is being made pursuant to this
Section 5.11 and that all Notes tendered will be accepted for payment; (2) the
purchase price and the purchase date, which shall be no earlier than 30 days and
no later than 60 days from the date such notice is mailed (the "Change of
Control Payment Date"); (3) that any Note not tendered will continue to accrue
interest; (4) that, unless the Company defaults in the payment of the Change of
Control Payment, all Notes accepted for payment pursuant to the Change of
Control Offer shall cease to accrue interest after the Change of Control Payment
Date; (5) that Holders electing to have any Notes purchased pursuant to a Change
of Control Offer will be required to surrender the Notes, with the form entitled
"Option of Holder to Elect Purchase" on the reverse of the Notes completed, to
the paying agent at the address specified in the notice prior to the close of
business on the third business day preceding the Change of Control Payment Date;
(6) that Holders will be entitled to withdraw their election if the paying agent
receives, not later than the close of business on the second business day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and (7) that Holders whose
Notes are being purchased only in part will be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in principal amount or an integral
multiple thereof. The Company will comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent such laws and regulations are applicable in connection with the
repurchase of Notes as a result of a Change of Control.

                  (b) On the Change of Control Payment Date, the Company will,
to the extent lawful, (1) accept for payment all Notes or portions thereof
properly tendered pursuant to the Change of Control Offer, (2) deposit with the
Paying Agent an amount equal to the Change of Control Payment in respect of all
Notes or portions thereof so tendered and (3) deliver or cause to be delivered
to the Trustee the Notes so accepted together with an Officers' Certificate
stating the aggregate principal amount of Notes or portions thereof being
purchased by the Company. The Paying Agent will promptly mail to each Holder of
Notes so tendered the Change of Control

                                       35
<PAGE>   40

Payment for such Notes, and the Trustee will promptly authenticate (upon a
written order of the Company) and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided, that each such new Note will
be in a principal amount of $1,000 or an integral multiple thereof. The Company
will publicly announce the results of the Change of Control Offer on or as soon
as practicable after the Change of Control Payment Date.

                  To the extent that the provisions of any applicable securities
laws or regulations conflict with provisions of this Section 5.11, the Company
will comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under this Section 5.11 by virtue
thereof.

                  (c) Notwithstanding the foregoing provisions of this Section
5.11, the Company will not be required to make a Change of Control Offer upon a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
in this Section 5.11 and purchases all Notes validly tendered and not withdrawn
pursuant to such Change of Control Offer in accordance with the terms hereof.

                  Section 5.12. Limitation on Sale and Leaseback Transactions.
The Company will not, and will not permit any of its Restricted Subsidiaries to,
enter into any sale and leaseback transaction, unless:

                  (i) the Company could have incurred Indebtedness in an amount
equal to the Attributable Debt relating to such sale and leaseback transaction
under Section 5.05 hereof;

                  (ii) the gross cash proceeds of that sale and leaseback
transaction are at least equal to the fair market value, as determined in good
faith by the Board of Directors, of the property that is the subject of that
sale and leaseback transaction; and

                  (iii) the transfer of assets in that sale and leaseback
transaction is permitted by, and the Company applies the Net Proceeds of such
transaction in compliance with, Section 5.06 hereof.

                  Section 5.13. Payments for Consent. The Company will not, and
will not permit any of its Subsidiaries to, directly or indirectly, pay or cause
to be paid any consideration to or for the benefit of any Holder of Notes for or
as an inducement to any consent, waiver or amendment of any of the terms or
provisions of the Indenture or the Notes unless such consideration is offered to
be paid and is paid to all Holders of the Notes that consent, waive or agree to
amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.

                  Section 5.14. Reports. To the extent not required to be filed
with the SEC, so long as any Notes are outstanding, the Company will furnish to
the Holders of Notes, within the time periods specified in the SEC's rules and
regulations:

                  (i) all quarterly and annual financial information that would
be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if
the Company were required to file

                                       36
<PAGE>   41

such Forms, including a "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and, with respect to the annual information
only, a report on the annual financial statements by the Company's certified
independent accountants; and

                  (ii) all current reports that would be required to be filed
with the SEC on Form 8-K if the Company were required to file such reports.

                  Section 5.15. Designation of Restricted and Unrestricted
Subsidiaries. The Board of Directors may designate any Restricted Subsidiary to
be an Unrestricted Subsidiary if that designation would not cause a Default. If
a Restricted Subsidiary is designated an Unrestricted Subsidiary, all
outstanding Investments owned by the Company and its Restricted Subsidiaries in
the Subsidiary so designated will be deemed to be an Investment made as of the
time of such designation and either will reduce the amount available for
Restricted Payments under Section 5.03(a) hereof or will at the time of such
designation qualify as a Permitted Investment, as the Company shall determine.
All such outstanding Investments will be valued at their fair market value at
the time of such designation. That designation will only be permitted if such
Investment would be permitted at that time and if such Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary. The Board of
Directors may redesignate any Unrestricted Subsidiary to be a Restricted
Subsidiary if the redesignation would not cause a Default and such redesignation
will increase the amount available for Restricted Payments under Section 5.03(a)
hereof as provided therein or Permitted Investments, as applicable.

                  Section 5.16. Suspension of Covenants. From and after the date
that the Notes have achieved Investment Grade Status and no Default or Event of
Default (other than Defaults or Events of Default with respect to those
covenants referred to below in this Section 5.16) has occurred and is
continuing, the covenants contained in Sections 5.03, 5.04, 5.05, 5.07, 5.09,
5.10, 5.11 and 5.12 hereof and the requirements contained in Section 6.01(a)(iv)
hereof shall terminate and the Company and its Restricted Subsidiaries shall no
longer be obligated to comply with the provisions and requirements of such
sections in this Supplemental Indenture with respect to the Notes.

                                  ARTICLE VI.
                                   SUCCESSORS

                  With respect to the Notes, the provisions of this Article VI
shall preempt the provisions of Article Eight of the Original Indenture in their
entirety.

                  Section 6.01. Merger, Consolidation, or Sale of Assets.

                  (a) The Company shall not, directly or indirectly, in any
transaction or series of related transactions: (1) consolidate or merge with or
into another Person (whether or not the Company is the surviving corporation);
or (2) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Company and its
Subsidiaries taken as a whole, in one or more related transactions, to another
Person; unless:

                  (i) either: (A) the Company is the surviving corporation; or
(B) the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, conveyance or
other disposition shall have been made is a

                                       37
<PAGE>   42

corporation organized or existing under the laws of the United States, any state
thereof or the District of Columbia;

                  (ii) the Person formed by or surviving any such consolidation
or merger (if other than the Company) or the Person to which such sale,
assignment, transfer, conveyance or other disposition shall have been made
assumes all the obligations of the Company under the Notes and the Indenture
pursuant to agreements reasonably satisfactory to the Trustee;

                  (iii) immediately after such transaction no Default or Event
of Default exists;

                  (iv) the Company or the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition shall have been made will,
on the date of such transaction after giving pro forma effect thereto and any
related financing transactions as if the same had occurred at the beginning of
the applicable eight-quarter period, be permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set
forth in Section 5.05(a) hereof; and

                  (v) the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such merger,
consolidation or sale of assets and such supplemental indenture, if any, comply
with the Indenture.

                  (b) The Company shall not, directly or indirectly, lease all
or substantially all of its properties or assets, in one or more related
transactions, to any other Person.

                  (c) Notwithstanding the foregoing, this Section 6.01 shall not
apply to a sale, assignment, transfer, conveyance or other disposition of assets
between or among the Company and any of its Wholly Owned Restricted
Subsidiaries.

                  (d) For all purposes under this Indenture and the Notes,
including the provisions described in this Section 6.01 and Sections 5.05, 5.10
and 5.15, any surviving entity will, upon such transaction or series of
transactions, become Restricted Subsidiaries or Unrestricted Subsidiaries as
provided pursuant to Section 5.15 and all Indebtedness of the surviving entity
and its Subsidiaries that was not Indebtedness of the Company and its
Subsidiaries immediately prior to such transaction or series of transactions
shall be deemed to have been incurred upon such transaction or series of
transactions.

                  Section 6.02. Successor Corporation Substituted. Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 6.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however, that
the predecessor Company shall not be relieved from the obligation to

                                       38
<PAGE>   43

pay the principal of and interest on the Notes except in the case of a sale of
all of the Company's assets that meets the requirements of Section 6.01 hereof.

                                  ARTICLE VII.
                              DEFAULTS AND REMEDIES

                  With respect to the Notes, the provisions of this Article VII
shall preempt the provisions of Article Five of the Original Indenture in their
entirety.

                  Section 7.01. Events of Default. An "Event of Default" occurs
if:

                  (a) the Company defaults in the payment when due of interest
on the Notes and such default continues for a period of 30 days;

                  (b) the Company defaults in the payment when due of principal
of, or premium, if any, on the Notes;

                  (c) the Company or any of the Guarantors fail to comply with
any of the provisions of Sections 5.11 or 6.01 hereof;

                  (d) the Company or any Restricted Subsidiary fails to comply
with any of the provisions of Sections 5.03, 5.05 or 5.06 hereof for 30 days
after written notice to the Company stating that such notice is a notice of
Default by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class;

                  (e) the Company or any Restricted Subsidiary fails to observe
or perform any other covenant, representation, warranty or other agreement in
this Indenture or the Notes for 60 days after written notice to the Company
stating that such notice is a notice of Default by the Trustee or the Holders of
at least 25% in aggregate principal amount of the Notes then outstanding voting
as a single class;

                  (f) the Company or any Restricted Subsidiary defaults under
any mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any Indebtedness for money borrowed by
the Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the date of this
Indenture, if that default:

                  (i) is caused by a failure to pay principal of, or interest or
           premium, if any, on such Indebtedness prior to the expiration of the
           grace period provided in such Indebtedness on the date of such
           default (a "Payment Default"); or

                  (ii) results in the acceleration of such Indebtedness prior to
           its express maturity,

and, in each case, the principal amount of any such Indebtedness, together with
the principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$10.0 million or more;

                                       39
<PAGE>   44

                  (g) a final nonappealable judgment or final nonappealable
judgments for the payment of money are entered by a court or courts of competent
jurisdiction against the Company or any of its Restricted Subsidiaries and such
judgment or judgments are not paid, discharged or stayed for a period (during
which execution shall not be effectively stayed) of 60 days, provided that the
aggregate of all such undischarged judgments exceeds $10.0 million;

                  (h) except as permitted by the Indenture, any Subsidiary
Guarantee is held in any judicial proceeding to be unenforceable or invalid or
shall cease for any reason to be in full force and effect or any Guarantor, or
any Person acting on behalf of any Guarantor, shall deny or disaffirm its
obligations under its Subsidiary Guarantee; and

                  (i) the Company or any Restricted Subsidiary, pursuant to or
within the meaning of Bankruptcy Law:

                  (i) commences a voluntary case,

                  (ii) consents to the entry of an order for relief against it
         in an involuntary case,

                  (iii) consents to the appointment of a custodian of it or for
         all or substantially all of its property,

                  (iv) makes a general assignment for the benefit of its
         creditors, or

                  (v) generally is not paying its debts as they become due; or

                  (j) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that:

                  (i) is for relief against the Company or any Restricted
         Subsidiary in an involuntary case;

                  (ii) appoints a custodian of the Company or any Restricted
         Subsidiary or for all or substantially all of the property of the
         Company or any Restricted Subsidiary; or

                  (iii) orders the liquidation of the Company or any Restricted
         Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days.

                  Section 7.02. Acceleration. If any Event of Default (other
than an Event of Default specified in clause (i) or (j) of Section 7.01 hereof
with respect to the Company, any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary) occurs and is continuing, either the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable immediately.
Upon any such declaration, the Notes shall become due and payable immediately.
Notwithstanding the foregoing, if an Event of Default specified in clause (i) or
(j) of Section 7.01 hereof occurs with respect to the Company or any Restricted
Subsidiary that is a Significant Subsidiary or any group of Restricted
Subsidiaries

                                       40
<PAGE>   45

that, taken together, would constitute a Significant Subsidiary, all outstanding
Notes shall become due and payable without further action or notice. The Holders
of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of interest or
premium, if any, on, or the principal of, the Notes.

                  Section 7.03. Other Remedies.

                  If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal, premium, if
any, and interest on the Notes or to enforce the performance of any provision of
the Notes or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder of a Note in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. All remedies
are cumulative to the extent permitted by law.

                  Section 7.04. Waiver of Past Defaults. Holders of not less
than a majority in aggregate principal amount of the then outstanding Notes by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal of,
premium, if any, or interest on, the Notes (including in connection with an
offer to purchase) (provided, however, that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration). Upon any such waiver, such Default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.

                  Section 7.05. Control by Majority. Holders of a majority in
principal amount of the then outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee
may refuse to follow any direction that conflicts with law or this Indenture
that the Trustee determines may be unduly prejudicial to the rights of other
Holders of Notes or that may involve the Trustee in personal liability.

                  Section 7.06. Limitation on Suits. A Holder of a Note may
pursue a remedy with respect to this Indenture or the Notes only if:

                  (a) the Holder of a Note gives to the Trustee written notice
of a continuing Event of Default;

                  (b) the Holders of at least 25% in principal amount of the
then outstanding Notes make a written request to the Trustee to pursue the
remedy;

                                       41
<PAGE>   46

                  (c) such Holder of a Note or Holders of Notes offer and, if
requested, provide to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense;

                  (d) the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the provision
of indemnity; and

                  (e) during such 60-day period the Holders of a majority in
principal amount of the then outstanding Notes do not give the Trustee a
direction inconsistent with the request.

                  A Holder of a Note may not use this Indenture to prejudice the
rights of another Holder of a Note or to obtain a preference or priority over
another Holder of a Note.

                  Section 7.07. Rights of Holders of Notes to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
of a Note to receive payment of principal, premium, if any, and interest on the
Note, on or after the respective due dates expressed in the Note (including in
connection with an offer to purchase), or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

                  Section 7.08. Collection Suit by Trustee. If an Event of
Default specified in Section 7.01(a) or (b) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal of, premium
on, if any, and interest remaining unpaid on the Notes and interest on overdue
principal and, to the extent lawful, interest and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

                  Section 7.09. Trustee May File Proofs of Claim. The Trustee is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee, and in
the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 607 of the
Original Indenture. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 607 of the Original Indenture
out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a Lien on, and shall be paid out of, any
and all distributions, dividends, money, securities and other properties that
the Holders may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization,

                                       42
<PAGE>   47

arrangement, adjustment or composition affecting the Notes or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

                  Section 7.10. Priorities. If the Trustee collects any money
pursuant to this Article, it shall pay out the money in the following order:

                  First: to the Trustee, its agents and attorneys for amounts
due under Section 607 of the Original Indenture, including payment of all
compensation, expense and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
Notes for principal, premium, if any, and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on the Notes
for principal, premium, if any, and interest, respectively; and

                  Third: to the Company or to such party as a court of competent
jurisdiction shall direct.

                  The Trustee may fix a record date and payment date for any
payment to Holders of Notes pursuant to this Section 7.10.

                  Section 7.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does
not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to
Section 7.07 hereof, or a suit by Holders of more than 10% in principal amount
of the then outstanding Notes.

                                 ARTICLE VIII.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

                  Section 8.01. Option to Effect Legal Defeasance or Covenant
Defeasance. In addition to the Company's rights under Section 401 of the
Original Indenture (which shall not be effected by this Article VIII), the
Company may, at the option of its Board of Directors evidenced by a resolution
set forth in an Officers' Certificate, at any time, elect to have either Section
8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the
conditions set forth below in this Article Eight.

                  Section 8.02. Legal Defeasance and Discharge. Upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.02, the Company and the Guarantors shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from their obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter

                                       43
<PAGE>   48

be deemed to be "outstanding" only for the purposes of Section 8.05 hereof and
the other Sections of this Indenture referred to in (a) and (b) below, and to
have satisfied all its other obligations under such Notes and this Indenture
(and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest, if any, on such Notes when such
payments are due from the trust referred to in Section 8.04, (b) the Company's
obligations with respect to such Notes under Sections 304, 305, 306 an 1002 of
the Original Indenture, (c) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and the Company's obligations in connection therewith and
(d) this Article VIII. Subject to compliance with this Article VIII, the Company
may exercise its option under this Section 8.02 notwithstanding the prior
exercise of its option under Section 8.03 hereof.

                  Section 8.03. Covenant Defeasance. Upon the Company's exercise
under Section 8.01 hereof of the option applicable to this Section 8.03, the
Company and its Restricted Subsidiaries shall, subject to the satisfaction of
the conditions set forth in Section 8.04 hereof, be released from their
obligations under the covenants contained in Sections 5.03, 5.04, 5.05, 5.06,
5.07, 5.08, 5.09, 5.10, 5.11, 5.12, 5.13, 5.14 and 5.15 hereof and the operation
of Section 6.01 hereof with respect to the outstanding Notes on and after the
date the conditions set forth in Section 8.04 are satisfied (hereinafter,
"Covenant Defeasance"), and the Notes shall thereafter be deemed not
"outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "outstanding" for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under
Section 7.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes shall be unaffected thereby. In addition, upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 7.01(d) through 7.01(f) hereof shall not
constitute Events of Default.

                  Section 8.04. Conditions to Legal or Covenant Defeasance. The
following shall be the conditions to the application of either Section 8.02 or
8.03 hereof to the outstanding Notes:

In order to exercise either Legal Defeasance or Covenant Defeasance:

                  (a) the Company must irrevocably deposit with the Trustee, in
trust, for the benefit of the Holders of the Notes, cash in United States
dollars, U.S. Government Obligations, or a combination thereof, in such amounts
as will be sufficient, in the opinion of a nationally recognized firm of
independent public accountants, to pay the principal of, or interest and
premium, if any, on the outstanding Notes on the Stated Maturity or on the
applicable

                                       44
<PAGE>   49

redemption date, as the case may be, and the Company must specify whether the
Notes are being defeased to maturity or to a particular redemption date;

                  (b) in the case of Legal Defeasance, the Company shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the
Trustee confirming that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (ii) since the date of
the Indenture, there has been a change in the applicable federal income tax law,
in either case to the effect that, and based thereon such Opinion of Counsel
shall confirm that, the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

                  (c) in the case of Covenant Defeasance, the Company shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the
Trustee confirming that the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Covenant Defeasance had not occurred;

                  (d) no Default or Event of Default shall have occurred and be
continuing either: (i) on the date of such deposit (other than a Default or
Event of Default resulting from the borrowing of funds to be applied to such
deposit); or (ii) insofar as Events of Default from bankruptcy or insolvency
events are concerned, at any time in the period ending on the 91st day after the
date of deposit;

                  (e) such Legal Defeasance or Covenant Defeasance will not
result in a breach or violation of, or constitute a default under any material
agreement or instrument (other than the Indenture) to which the Company or any
of its Restricted Subsidiaries is a party or by which the Company or any of its
Restricted Subsidiaries is bound;

                  (f) the Company must have delivered to the Trustee an Opinion
of Counsel to the effect that, assuming no intervening bankruptcy of the Company
or any Guarantor between the date of deposit and the 91st day following the
deposit and assuming that no Holder is an "insider" of the Company under
applicable bankruptcy law, after the 91st day following the deposit, the trust
funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors' rights
generally;

                  (g) the Company must deliver to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders of Notes over the other creditors of the Company with
the intent of defeating, hindering, delaying or defrauding creditors of the
Company or others; and

                  (h) the Company must deliver to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the Legal Defeasance or the Covenant Defeasance have been
complied with.

                                       45
<PAGE>   50

                  Section 8.05. Deposited Money and U.S. Government Obligations
to be Held in Trust; Other Miscellaneous Provisions. Subject to Section 8.06
hereof, all money and non-callable U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the "Trustee") pursuant to
Section 8.04 hereof in respect of the outstanding Notes shall be held in trust
and applied by the Trustee, in accordance with the provisions of such Notes and
this Indenture, to the payment, either directly or through any paying agent
(including the Company acting as paying agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect
of principal, premium on , if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the cash or non-callable
U.S. Government Obligations deposited pursuant to Section 8.04 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Notes.

                  Anything in this Article Eight to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon the written request of the Company any money or non-callable U.S.
Government Obligations held by it as provided in Section 8.04 hereof which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may
be the opinion delivered under Section 8.04(a) hereof), are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

                  Section 8.06. Repayment to Company. Any money deposited with
the Trustee or any paying agent, or then held by the Company, in trust for the
payment of the principal of, premium on, if any, or interest on any Note and
remaining unclaimed for two years after such principal, and premium, if any, or
interest has become due and payable shall be paid to the Company on its written
request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter, as an unsecured creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such paying agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such paying agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

                  Section 8.07. Reinstatement. If the Trustee or paying agent is
unable to apply any United States dollars or non-callable U.S. Government
Obligations in accordance with Section 8.02 or 8.03 hereof, as the case may be,
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
Company's obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
hereof until such time as the Trustee or paying agent is permitted to apply all
such money in accordance with Section 8.02 or

                                       46
<PAGE>   51

8.03 hereof, as the case may be; provided, however, that, if the Company makes
any payment of principal of, premium on, if any, or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or paying agent.

                                  ARTICLE IX.
                        AMENDMENT, SUPPLEMENT AND WAIVER

                  With respect to the Notes, the provisions of this Article IX
shall preempt the provisions of Article Nine of the Original Indenture in their
entirety.

                  Section 9.01. Without Consent of Holders of Notes.
Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee may
amend or supplement this Indenture or the Notes without the consent of any
Holder of a Note:

                  (a) to cure any ambiguity, defect or inconsistency;

                  (b) to provide for uncertificated Notes in addition to or in
place of certificated Notes or to alter the provisions of Article Two of the
Original Indenture (including the related definitions) in a manner that does not
materially adversely affect any Holder;

                  (c) to provide for the assumption of the Company's or any
Guarantor's obligations to the Holders of the Notes by a successor to the
Company pursuant to Article VI of this Supplemental Indenture;

                  (d) to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect
the legal rights hereunder of any such Holder;

                  (e) to comply with requirements of the SEC in order to effect
or maintain the qualification of this Indenture under the Trust Indenture Act;

                  (f) to add a Guarantor pursuant to Section 10.02; and

                  (g) to evidence and provide the acceptance of the appointment
of a successor Trustee pursuant to Sections 610 and 611 of the Original
Indenture.

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 603 of the Original Indenture, the Trustee shall join with
the Company in the execution of any amended or supplemental indenture authorized
or permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into such amended or supplemental indenture that
affects its own rights, duties or immunities under this Indenture or otherwise.

                                       47
<PAGE>   52

                  Section 9.02. With Consent of Holders of Notes.

                  Except as provided below in this Section 9.02, the Company and
the Trustee may amend or supplement this Indenture (including Sections 4.03,
5.06 and 5.11 hereof) and the Notes may be amended or supplemented with the
consent of the Holders of at least a majority in aggregate principal amount at
maturity of the Notes then outstanding voting as a single class (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes), and, subject to Sections 7.04 and
7.07 hereof, any existing Default or Event of Default (other than a Default or
Event of Default in the payment of the principal of, premium, if any, and
interest, if any, on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this
Indenture or the Notes may be waived with the consent of the Holders of a
majority in aggregate principal amount at maturity of the then outstanding Notes
voting as a single class (including without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, the
Notes).

                  Upon the request of the Company accompanied by a Board
Resolution authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 603 of the Original Indenture,
the Trustee shall join with the Company in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental indenture.

                  It shall not be necessary for the consent of the Holders of
Notes under this Section 9.02 to approve the particular form of any proposed
amendment or waiver, but it shall be sufficient if such consent approves the
substance thereof.

                  After an amendment, supplement or waiver under this Section
becomes effective, the Company shall mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. Subject to Sections 7.04 and 7.07 hereof, the
Holders of a majority in aggregate principal amount at maturity of the Notes
then outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Notes.
However, without the consent of each Holder affected, an amendment or waiver
under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

                  (a) reduce the principal amount of the then outstanding Notes
whose Holders must consent to an amendment, supplement or waiver;

                  (b) reduce the principal of or change the fixed maturity of
any Note or alter any of the provisions with respect to the redemption of the
Notes except as provided above with respect to Sections 4.03, 5.06 and 5.11
hereof;

                                       48
<PAGE>   53

                  (c) reduce the rate of or change the time for payment of
interest on any Note;

                  (d) waive a Default or Event of Default in the payment of
principal of, or interest or premium, if any, on the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes and a waiver of the payment
default that resulted from such acceleration);

                  (e) make any Note payable in money other than that stated in
the Notes;

                  (f) make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of, or interest or premium, if any, on the Notes;

                  (g) waive a redemption payment with respect to any Note (other
than a payment required by Sections 4.03, 5.06 and 5.11 hereof);

                  (h) cause the Notes to become subordinated in right of payment
to any other Indebtedness;

                  (i) release any Guarantor from any of its obligations under
its Subsidiary Guarantee or this Indenture, except in accordance with the terms
of Section 10.05 hereof; or

                  (j) make any change in Sections 7.04 or 7.07 or the foregoing
amendment and waiver provisions.

                  Section 9.03. Compliance with Trust Indenture Act.

                  Every amendment or supplement to this Indenture or the Notes
shall be set forth in a amended or supplemental indenture that complies with the
Trust Indenture Act as then in effect.

                  Section 9.04. Revocation and Effect of Consents.

                  Until an amendment, supplement or waiver becomes effective, a
consent to it by a Holder of a Note is a continuing consent by the Holder of a
Note and every subsequent Holder of a Note or portion of a Note that evidences
the same debt as the consenting Holder's Note, even if notation of the consent
is not made on any Note. However, any such Holder of a Note or subsequent Holder
of a Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

                  Section 9.05. Notation on or Exchange of Notes.

                  The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The
Company in exchange for all Notes may issue and the Trustee shall, upon receipt
of a written order from the Company to authenticate such Notes, authenticate new
Notes that reflect the amendment, supplement or waiver.

                                       49
<PAGE>   54

                  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

                  Section 9.06. Trustee to Sign Amendments, Etc.

                  The Trustee shall sign any amended or supplemental indenture
authorized pursuant to this Article IX if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
The Company may not sign an amendment or supplemental indenture until the Board
of Directors approves it. In executing any amended or supplemental indenture,
the Trustee shall be entitled to receive and (subject to Section 601 of the
Original Indenture) shall be fully protected in relying upon, in addition to the
documents required by Section 603 of the Original Indenture, an Officer's
Certificate and an Opinion of Counsel stating that the execution of such amended
or supplemental indenture is authorized or permitted by this Indenture.

                                   ARTICLE X.
                              SUBSIDIARY GUARANTEES

                  Section 10.01. Subsidiary Guarantee.

                  (a) Subject to this Article X, in the event that any
Restricted Subsidiary of the Company shall execute and deliver a supplemental
indenture to this Indenture with respect to a Subsidiary Guarantee (as required
by Section 10.02 hereof or otherwise), any such Guarantor shall, jointly and
severally, unconditionally guarantee to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or
the obligations of the Company hereunder or thereunder, that: (i) the principal
of premium, if any, and interest on the Notes will be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and interest
on the overdue principal of and interest on the Notes, if any, if lawful, and
all other obligations of the Company to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at Stated Maturity, by acceleration pursuant
to Section 7.02 hereof or otherwise. Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, any Guarantor
shall be jointly and severally obligated to pay the same immediately. Any
Guarantor also agrees that this is a guarantee of payment and not a guarantee of
collection.

                  (b) Any Guarantor agrees that its obligations with regard to
such Subsidiary Guarantee shall be joint and several, unconditional,
irrespective of the validity or enforceability of the Notes or the obligations
of the Company under this Indenture, the absence of any action to enforce the
same, the recovery of any judgment against the Company or any other obligor with
respect to this Indenture, the Notes or the obligations of the Company under
this Indenture or the Notes, any action to enforce the same or any other
circumstances (other than complete performance) which might otherwise constitute
a legal or equitable discharge or defense of a Guarantor. Any Guarantor further,
to the extent permitted by law, waives and relinquishes all

                                       50
<PAGE>   55

claims, rights and remedies accorded by applicable law to guarantors and agrees
not to assert or take advantage of any such claims, rights or remedies,
including but not limited to: (i) any right to require any of the Trustee, the
Holders or the Company (each a "Benefited Party"), as a condition of payment or
performance by such Guarantor, to (A) proceed against the Company, any other
guarantor (including any other Guarantor) of the obligations under the
Subsidiary Guarantees or any other person, (B) proceed against or exhaust any
security held from the Company, any such other guarantor or any other person,
(C) proceed against or have resort to any balance of any deposit account or
credit on the books of any Benefited Party in favor of the Company or any other
person, or (D) pursue any other remedy in the power of any Benefited Party
whatsoever; (ii) any defense arising by reason of the incapacity, lack of
authority or any disability or other defense of the Company including any
defense based on or arising out of the lack of validity or the unenforceability
of the obligations under the Subsidiary Guarantees or any agreement or
instrument relating thereto or by reason of the cessation of the liability of
the Company from any cause other than payment in full of the obligations under
the Subsidiary Guarantees; (iii) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; (iv)
any defense based upon any Benefited Party's errors or omissions in the
administration of the obligations under the Subsidiary Guarantees, except
behavior which amounts to bad faith; (v)(A) any principles or provisions of law,
statutory or otherwise, which are or might be in conflict with the terms of the
Subsidiary Guarantees and any legal or equitable discharge of such Guarantor's
obligations hereunder, (B) the benefit of any statute of limitations affecting
such Guarantor's liability hereunder or the enforcement hereof, (C) any rights
to set-offs, recoupments and counterclaims and (D) promptness, diligence and any
requirement that any Benefited Party protect, secure, perfect or insure any
security interest or lien or any property subject thereto; (vi) notices,
demands, presentations, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance of the Subsidiary
Guarantees, notices of default under the Notes or any agreement or instrument
related thereto, notices of any renewal, extension or modification of the
obligations under the Subsidiary Guarantees or any agreement related thereto,
and notices of any extension of credit to the Company and any right to consent
to any thereof; (vii) to the extent permitted under applicable law, the benefits
of any "One Action" rule and (viii) any defenses or benefits that may be derived
from or afforded by law which limit the liability of or exonerate guarantors or
sureties, or which may conflict with the terms of the Subsidiary Guarantees.
Except as set forth in Section 10.6, any Guarantor covenants that its Subsidiary
Guarantee will not be discharged except by complete performance of the
obligations contained in its Guarantee and this Indenture.

                  (c) If any Holder or the Trustee is required by any court or
otherwise to return to the Company, any Guarantors or any custodian, trustee,
liquidator or other similar official acting in relation to either the Company or
any Guarantors, any amount paid by either to the Trustee or such Holder, any
Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated
in full force and effect.

                  (d) Any Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.
Any Guarantor further agrees that, as between any Guarantors, on the one hand,
and the Holders and the Trustee, on the other hand, (i) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Section 7.02

                                       51
<PAGE>   56

hereof for the purposes of any Subsidiary Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby and (ii) in the event of any declaration of
acceleration of such obligations as provided in Section 7.02 hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by any Guarantors for the purpose of any such Subsidiary Guarantee. Any
Guarantors shall have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the applicable Subsidiary Guarantee.

                  Section 10.02. Additional Guarantees. If any Domestic
Restricted Subsidiary (other than any Securitization Subsidiary that has entered
into or established a Permitted Securitization Program), whether existing on the
date of this Supplemental Indenture or hereafter acquired or formed by the
Company, incurs any Indebtedness (other than intercompany Indebtedness between
or among such Domestic Restricted Subsidiary and the Company or any of its
Restricted Subsidiaries), including without limitation, any Guaranteed
Indebtedness contemplated by Section 5.09 hereof, then the Company shall cause
any such Domestic Restricted Subsidiary to, within ten business days of the date
on which any such Domestic Restricted Subsidiary became so obligated, (a)
execute and deliver to the Trustee a supplemental indenture in form and
substance substantially in the form of Exhibit B attached hereto and reasonably
satisfactory to the Trustee pursuant to which such Domestic Restricted
Subsidiary shall unconditionally guarantee, on a senior unsecured basis, all of
the Company's obligations under the Notes and this Indenture on the terms set
forth herein and therein and (b) deliver to the Trustee an Opinion of Counsel
that, subject to customary assumptions and exclusions, such supplemental
indenture has been duly executed and delivered by such Restricted Subsidiary.
Any Domestic Restricted Subsidiary that becomes a Guarantor shall remain a
Guarantor unless (i) designated an Unrestricted Subsidiary by the Company in
accordance with this Indenture; (ii) otherwise released from its obligations as
a Guarantor pursuant to Section 10.05 hereof; or (iii) the circumstances giving
rise to the obligation to provide a Subsidiary Guarantee under Section 5.09 or
otherwise pursuant to this Section 10.02 no longer exist.

                  Section 10.03. Limitation on Guarantor Liability. Any
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Subsidiary Guarantee of any such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to any
Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the
Holders and any Guarantors hereby irrevocably agree that the obligations of such
Guarantor under this Article X shall be limited to the maximum amount as will,
after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or
payments made by or on behalf of any other Guarantor in respect of the
obligations of any such other Guarantor under this Article X, result in the
obligations of such Guarantor under its Subsidiary Guarantee not constituting a
fraudulent transfer or conveyance.

                  Section 10.04. Guarantors May Merge, Consolidate, Etc., on
Certain Terms. Except as otherwise provided in Section 10.05 hereof, no
Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into

                                     52
<PAGE>   57
(whether or not such Guarantor is the surviving Person), another Person, other
than the Company or another Guarantor, unless:

                  (i) immediately after giving effect to such transaction, no
Default or Event of Default exists; and

                  (ii) either (A) the person acquiring the property in any such
sale or disposition, or the Person formed by or surviving any such consolidation
or merger (if such surviving Person is not the Guarantor), assumes all the
obligations of that Guarantor under this Indenture and the Subsidiary Guarantee
of such Guarantor pursuant to a supplemental indenture reasonably satisfactory
to the Trustee, or (B) in the case of a sale or other disposition of all or
substantially all of the assets of such Guarantor's assets, the Net Proceeds of
such sale of other disposition are applied in accordance with Section 5.06.

                  In case of any such sale or other disposition, consolidation,
merger, sale or conveyance and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and reasonably
satisfactory in form to the Trustee, of the Subsidiary Guarantee and the due and
punctual performance of all of the covenants and conditions of this Indenture to
be performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein or in any supplemental indenture to this Indenture as a Guarantor. All
the Subsidiary Guarantees so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Subsidiary Guarantees theretofore
and thereafter issued in accordance with the terms of this Indenture as though
all of such Subsidiary Guarantees had been issued at the date of the execution
hereof.

                  Except as set forth in Articles V and VI hereof, and
notwithstanding clauses (i) and (ii) of this Section 10.04, nothing contained in
this Indenture or in any of the Notes shall prevent any consolidation or merger
of a Guarantor with or into the Company or another Guarantor, or shall prevent
any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to the Company or another Guarantor.

                  Section 10.05. Releases of Subsidiary Guarantees.

                  (a) The Subsidiary Guarantee of a Guarantor will be released
and such Person shall no longer be deemed a Guarantor for purposes of this
Indenture:

                  (i) in connection with any sale or other disposition of all or
substantially all of the assets of that Guarantor to a Person that is not
(either before or after giving effect to such transaction) a Subsidiary of the
Company, if the Net Proceeds of that sale or other disposition are applied in
accordance with Section 5.06 hereof;

                  (ii) in connection with any sale of all of the Capital Stock
of a Guarantor to a Person (including by way of merger or consolidation) that is
not (either before or after giving effect to such transaction) a Subsidiary of
the Company, if the Net Proceeds of that sale are applied (or the Company
certifies in an Officer's Certificate delivered to the Trustee that such Net
Proceeds will be applied) in accordance with Section 5.06 hereof; or

                                       53
<PAGE>   58

                  (iii) if the Company properly designates the Guarantor as an
Unrestricted Subsidiary in accordance with Section 5.15 hereof.

                  (b) Upon delivery by the Company to the Trustee of an
Officers' Certificate and an Opinion of Counsel to the effect that such sale or
other disposition was made by the Company in accordance with the provisions of
this Indenture, including without limitation that the application of Net
Proceeds were applied (or, in the case of clause (a)(ii) of this Section 10.05,
will be applied) in accordance with Section 5.06 hereof, or such designation was
made in accordance with Section 5.15 hereof, as the case may be, the Trustee
shall execute any documents reasonably required in order to evidence the release
of any Guarantor from its obligations under its Subsidiary Guarantee.

                  (c) Any Guarantor not released from its obligations under its
Subsidiary Guarantee shall remain liable for the full amount of principal of and
interest on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article X.

                                   ARTICLE XI.
                                  MISCELLANEOUS

                  Section 11.01. No Personal Liability of Directors, Officers,
Employees and Stockholders. No director, officer, employee, incorporator or
stockholder of the Company or any Guarantor or the Trustee, as such, shall have
any liability for any obligations of the Company or the Guarantors under the
Notes, this Indenture, the Subsidiary Guarantees, or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. The waiver may
not be effective to waive liabilities under the federal securities laws.

                         [Signatures on following page]

                                       54
<PAGE>   59

                                   SIGNATURES

Dated as of August 9, 2001

                          PILGRIM'S PRIDE CORPORATION

                          By:      /s/ Richard A. Cogdill
                             --------------------------------------------------
                                   Name:  Richard A. Cogdill
                                   Title:  Executive Vice-President, Chief
                                   Financial Officer, Secretary and Treasurer

                          THE CHASE MANHATTAN BANK, as Trustee

                          By:      /s/ John G. Jones
                             --------------------------------------------------
                                   Name:  John G. Jones
                                   Title:  Vice President

                                       55
<PAGE>   60

                                    EXHIBIT A

                                 (Face of Note)

                          9 5/8% SENIOR NOTES DUE 2011

No.                                                          CUSIP: 721467 AC 2
    ----
                                                                   $
                                                                    ------------

                           PILGRIM'S PRIDE CORPORATION

promises to pay to         CEDE & CO.

or registered assigns, the principal sum of ____________________ Dollars
($______________) on September 15, 2011.

Interest Payment Dates:  March 15 and September 15

Record Dates:  March 1 and September 1

                                        PILGRIM'S PRIDE CORPORATION

                                        By:
                                           -------------------------------------
                                                 Name:
                                                 Title:

Attested by:
            -----------------------------------------

         [Corporate Seal]

<PAGE>   61

                                            This is one of the
                                            Notes referred to in the
                                            within-mentioned Indenture:
                                            Dated:             , 20
                                                  -------------    --

                                            The Chase Manhattan Bank,
                                            as Trustee

                                            By:
                                                --------------------------------
                                                     Authorized Signatory

                                      A-2
<PAGE>   62

                                 (Back of Note)

                          9 5/8% SENIOR NOTES DUE 2011

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 306 OF THE ORIGINAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 203 OF THE ORIGINAL
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 309 OF THE ORIGINAL INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

                  1. Interest. Pilgrim's Pride Corporation, a Delaware
corporation (the "Company"), promises to pay interest on the principal amount of
this Note at 9 5/8% per annum from ___________ ___, 20__ until maturity. The
Company will pay interest semi-annually on March 15 and September 15 of each
such year, or if any such day is not a business day, on the next succeeding
business day (each an "Interest Payment Date"). Interest on the Notes will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date shall be
March 15, 2002. The Company shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

                  2. Method of Payment. The Company will pay interest on the
Notes (except defaulted interest) to the Persons who are registered Holders of
Notes at the close of business on the March 1 or September 1 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 307
of the Original Indenture with respect to Defaulted Interest. The Notes will be
payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose within or without The City and State
of New York, or, at the option of the Company, payment of interest may be made
by check mailed to the Holders at their addresses set forth in the register of
Holders, and provided that payment by wire transfer of

                                      A-3
<PAGE>   63
immediately available funds will be required with respect to principal of and
interest, premium on, the Global Note and all other Notes the Holders of which
shall have provided wire transfer instructions to the Company or the paying
agent on or prior to the applicable record date. Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

                  3. Paying Agent and Security Registrar. Initially, The Chase
Manhattan Bank, the Trustee under the Indenture, will act as Paying Agent and
Security Registrar. The Company may change any Paying Agent or Security
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

                  4. Indenture. The Company issued the Notes under an Indenture
dated as of August 9, 2001 (the "Original Indenture"), as supplemented by the
Supplemental Indenture as of the same date (the "Supplemental Indenture" and,
together with the Original Indenture, the "Indenture") between the Company and
the Trustee. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. The Notes are obligations of the Company initially in
aggregate principal amount of $200.0 million. Subject to compliance with Section
5.05 of the Supplemental Indenture, the Company is permitted to issue Additional
Notes under the Indenture in an additional principal amount of $200.0 million.
Any such Additional Notes that are actually issued will be treated as issued and
outstanding Notes (and as the same class as the initial Notes) for all purposes
of the Indenture, unless the context clearly indicated otherwise.

                  5. Optional Redemption. (a) Except as set forth in
subparagraph (b) of this Paragraph 5, the Company shall not have the option to
redeem the Notes prior to September 15, 2006. On or after September 15, 2006,
the Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days' notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest, if any,
thereon to the applicable redemption date, if redeemed during the twelve-month
period beginning on September 15 of the years indicated below:

<Table>
<Caption>
      Year                                                      Percentage
      ----                                                      ----------
<S>                                                             <C>
      2006.............................................          104.813%
      2007.............................................          103.208%
      2008.............................................          101.604%
      2009 and thereafter..............................          100.000%
</Table>

                                      A-4
<PAGE>   64

                  (b) Notwithstanding the provisions of subparagraph (a) of this
Paragraph 5, at any time prior to September 15, 2004, the Company may on any one
or more occasions redeem up to 35% of the aggregate principal amount of Notes
issued under the Indenture (including, if issued, any Additional Notes) at a
redemption price of 109.625% of the principal amount thereof, plus accrued and
unpaid interest, if any, to the redemption date, with the net cash proceeds of
one or more Public Equity Offerings; provided, that:

                           (i) at least 65% of the aggregate principal amount of
                  Notes issued under the Indenture (including, if issued, any
                  Additional Notes) remains outstanding immediately after the
                  occurrence of such redemption (excluding Notes held by the
                  Company and its Subsidiaries); and

                           (ii) the redemption must occur within 45 days of the
                  date of the closing of such Public Equity Offering.

                  6. Mandatory Redemption. Except as set forth in paragraph 7
below, the Company shall not be required to make mandatory redemption or sinking
fund payments with respect to the Notes.

                  7. Repurchase at Option of Holder. (a) If a Change of Control
occurs, the Company shall be required to make an offer (a "Change of Control
Offer") to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of each Holder's Notes at a purchase price equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest, if any,
thereon to the date of purchase (the "Change of Control Payment"). Within ten
(10) days following any Change of Control, the Company shall mail a notice to
each Holder setting forth the procedures governing the Change of Control Offer
as required by the Indenture.

                  (b) If the Company or a Restricted Subsidiary consummates any
Asset Sales, when the aggregate amount of Excess Proceeds exceeds $10.0 million,
the Company shall commence an offer to all Holders of Notes (an "Asset Sale
Offer") pursuant to Section 4.03 of the Supplemental Indenture to purchase the
maximum principal amount of Notes that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, thereon to the date of
purchase, in accordance with the procedures set forth in the Indenture. If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company
may use such Excess Proceeds for any purpose not otherwise prohibited by the
Indenture. If the aggregate principal amount of Notes and such other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis based on the principal amount
of Notes and such other pari passu Indebtedness tendered. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.
Holders of Notes that are the subject of an offer to purchase will receive an
Asset Sale Offer from the Company prior to any related purchase date and may
elect to have such Notes purchased by completing the form entitled "Option of
Holder to Elect Purchase" on the reverse of the Notes.

                  8. Notice of Redemption. Notice of redemption will be mailed
by first class mail at least 30 days but not more than 60 days before the
redemption date to each Holder whose

                                      A-5
<PAGE>   65

Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption. Notices of redemption may not be conditional.

                  9. Denominations, Transfer, Exchange. The Notes are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture. The Security Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
for a period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

                  10. Persons Deemed Owners. The registered Holder of a Note may
be treated as its owner for all purposes.

                  11. Amendment, Supplement and Waiver. Subject to certain
exceptions set forth in the Indenture, the Indenture or the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes voting as a single class, and any
existing default or compliance with any provision of the Indenture or the Notes
may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes voting as a single class. Without
the consent of any Holder of a Note, the Indenture or the Notes may be amended
or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's obligations to Holders of the Notes
in case of a merger or consolidation or sale of all or substantially all of the
Company's assets, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights under the Indenture of any such Holder, to comply with the requirements
of the SEC in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act.

                  12. Defaults and Remedies. Events of Default include: (i)
default for 30 days in the payment when due of interest on the Notes; (ii)
default in payment when due of principal of, or premium, if any, on the Notes,
(iii) failure by the Company or any of the Guarantors to comply (A) with the
provisions of Sections 5.11 or 6.01 of the Supplemental Indenture or (B) 30 days
after notice to the Company by the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding voting as a single
class, with the provisions of Sections 5.03, 5.05 or 5.06 of the Supplemental
Indenture; (iv) failure by the Company for 60 days after notice to the Company
by the Trustee or the Holders of at least 25% in principal amount of the Notes
then outstanding voting as a single class to comply with any other agreements in
the Indenture or the Notes; (v) default under certain other agreements relating
to Indebtedness of the Company which default results in the acceleration of such
Indebtedness prior to its express maturity; (vi) certain final judgments for the
payment of money that remain

                                      A-6
<PAGE>   66

undischarged for a period of 60 days, (vii) certain circumstances when a
Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or
invalid, ceases to exist or is disaffirmed by any Guarantor, and (viii) certain
events of bankruptcy or insolvency with respect to the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary. In the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company or any Restricted
Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately. Holders of the Notes may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of
a majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or
interest, if any) if it determines that withholding notice is in their interest.
The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under
the Indenture except a continuing Default or Event of Default in the payment of
interest or premium, if any, on, or the principal of, the Notes. The Company is
required to deliver to the Trustee annually a statement regarding compliance
with the Indenture. Upon becoming aware of any Default or Event of Default, the
Company is required to deliver to the Trustee a statement specifying such
Default or Event of Default.

                  13. Trustee Dealings with Company. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not the Trustee.

                  14. No Recourse Against Others. No director, officer,
employee, incorporator or stockholder of the Company or any Guarantor or the
Trustee, as such, shall have any liability for any obligations of the Company or
the Guarantors under the Notes, the Indenture, the Subsidiary Guarantees, or for
any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes. The waiver may not be effective to waive liabilities under the
federal securities laws.

                  15. Authentication. This Note shall not be valid until
authenticated by the manual or facsimile signature of the Trustee or an
authenticating agent.

                  16. Abbreviations. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN NET
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

                  17. CUSIP Numbers. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP

                                      A-7
<PAGE>   67

numbers to be printed on the Notes and the Trustee may use CUSIP numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

                  The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to:

                  Pilgrim's Pride Corporation
                  110 South Texas Street
                  Pittsburg, Texas 75686
                  Attention:  Corporate Secretary

                                      A-8
<PAGE>   68

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ____________________________ to transfer this Note on
the books of the Company. The agent may substitute another to act for him.

Date:
     --------------

                    Your Signature:
                                   ---------------------------------------------
                    (Sign exactly as your name appears on the face of this Note)

Signature Guarantee.

                                      A-9
<PAGE>   69

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Note purchased by the
Company pursuant to Section 5.06 or 5.11 of the Supplemental Indenture, check
the box below:

                  [ ]  Section 5.06         [ ]  Section 5.11

                  If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 5.06 or Section 5.11 of the Supplemental
Indenture, state the amount you elect to have purchased:$
                                                         ---------------------

Date:
     -------------------------------

                    Your Signature:
                                   ---------------------------------------------
                    (Sign exactly as your name appears on the face of this Note)

                                    Tax Identification No.:
                                                           ---------------------

Signature Guarantee.

                                      A-10
<PAGE>   70

              SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE

    The following increases or decreases in this Global Note, have been made:

<Table>
<Caption>
                                                                           Principal Amount
                               Amount of              Amount of                   of                Signature of
                              decrease in            increase in           this Global Note          authorized
                               Principal           Principal Amount         following such           officer of
        Date of                Amount of                  of                   decrease            Trustee or Note
       Exchange            this Global Note        this Global Note          or increase              Custodian
       --------            ----------------        ----------------       -----------------        ---------------
<S>                        <C>                     <C>                    <C>                      <C>

</Table>

<PAGE>   71

                                    EXHIBIT B

                         FORM OF SUPPLEMENTAL INDENTURE
                          TO BE DELIVERED BY GUARANTORS

                  [SECOND] SUPPLEMENTAL INDENTURE (this "Supplemental
Indenture"), dated as of _____________, among ______________ (the "Guarantor"),
a subsidiary of Pilgrim's Pride Corporation (or its permitted successor), a
Delaware corporation (the "Company") and The Chase Manhattan Bank, as trustee
under the indenture referred to below (the "Trustee").

                                   WITNESSETH

                  WHEREAS, the Company has heretofore executed and delivered to
the Trustee an indenture (the "Original Indenture"), dated as of August 9, 2001,
as supplemented by that certain first supplemental indenture dated as of August
9, 2001 (the "First Supplemental Indenture" and, collectively with the Original
Indenture, this Supplemental Indenture and any other supplemental indentures to
the date hereof, the "Indenture"), providing for the issuance of an aggregate
principal amount of $200 million of 9 5/8% Senior Notes due 2011 (together with
any Additional Notes (as defined in the First Supplemental Indenture), the
"Notes");

                  WHEREAS, the Indenture provides that under certain
circumstances the Guarantor shall execute and deliver to the Trustee a
supplemental indenture pursuant to which the Guarantor shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Subsidiary Guarantee"); and

                  WHEREAS, pursuant to Section 9.01 of the First Supplemental
Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture.

                  NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the Guarantor and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

                  SECTION 1.1 Capitalized Terms. Capitalized Terms used herein
without definition shall have the meanings assigned to them in the Indenture.

                  SECTION 1.2 Agreement to Guarantee. The Guarantor hereby
agrees as follows:

                  (a) Along with all Guarantors, to jointly and severally
Guarantee to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and

                                      B-1
<PAGE>   72

its successors and assigns, irrespective of the validity and enforceability of
the Indenture, the Notes or the obligations of the Company hereunder or
thereunder, that:

                           (i) the principal of, premium, if any, and interest
                  on the Notes shall be promptly paid in full when due, whether
                  at maturity, by acceleration, redemption or otherwise, and
                  interest on the overdue principal on the Notes to the extent
                  lawful, and all other obligations of the Company to the
                  Holders or the Trustee hereunder or under the Indenture shall
                  be promptly paid in full or performed, all in accordance with
                  the terms hereof and under the Indenture;

                           (ii) in case of any extension of time of payment or
                  renewal of any Notes or any of such other obligations, that
                  same shall be promptly paid in full when due or performed in
                  accordance with the terms of the extension or renewal, whether
                  at stated maturity, by acceleration or otherwise. Failing
                  payment when due of any amount so guaranteed or any
                  performance so guaranteed for whatever reason, the Guarantors
                  shall be jointly and severally obligated to pay the same
                  immediately.

                  (b) The obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or the
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor.

                  (c) The following is hereby waived: diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.

                  (d) This Subsidiary Guarantee shall not be discharged except
by complete performance of the obligations contained in the Notes and the
Indenture except in accordance with the terms of the Indenture.

                  (e) If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any custodian, trustee,
liquidator or other similar official acting in relation to either the Company or
the Guarantors, any amount paid by either to the Trustee or such Holder, this
Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated
in full force and effect.

                  (f) The Guarantor shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.

                                      B-2
<PAGE>   73

                  (g) As between the Guarantors, on the one hand, the Holders
and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article VII of the Indenture
for the purposes of this Subsidiary Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article VII of the Indenture,
such obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee.

                  (h) The Guarantors shall have the right to seek contribution
from non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Subsidiary Guarantee.

                  (i) Notwithstanding the foregoing, in the event that this
Subsidiary Guarantee would constitute or result in a violation of any applicable
fraudulent conveyance or similar law of any relevant jurisdiction, the liability
of the Guarantor under this Supplemental Indenture and its Subsidiary Guarantee
shall be reduced to the maximum amount permissible under such fraudulent
conveyance or similar law.

                  SECTION 1.3 Execution and Delivery. Each Subsidiary Guarantor
agrees that the Guarantees shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Subsidiary Guarantee.

                  SECTION 1.4 Guarantor May Consolidate, Etc. on Certain Terms.
Except as otherwise provided in Section 1.5 hereof, no Guarantor may sell or
otherwise dispose of all or substantially all of its assets to, or consolidate
with or merge with or into (whether or not such Guarantor is the surviving
Person), another Person, other than the Company or another Guarantor, unless:

                           (i) immediately after giving effect to such
                  transaction, no Default or Event of Default exists; and

                           (ii) either (A) the person acquiring the property in
                  any such sale or disposition, or the Person formed by or
                  surviving any such consolidation or merger (if such surviving
                  Person is not the Guarantor), assumes all the obligations of
                  that Guarantor under this Indenture and the Subsidiary
                  Guarantee of such Guarantor pursuant to a supplemental
                  indenture reasonably satisfactory to the Trustee, or (B) in
                  the case of a sale or other disposition of all or
                  substantially all of the assets of such Guarantor's assets,
                  the Net Proceeds of such sale of other disposition are applied
                  in accordance with Section 5.06 of the Supplemental Indenture.

                  In case of any such sale or other disposition, consolidation,
merger, sale or conveyance and upon the assumption by the successor Person, by
supplemental

                                      B-3
<PAGE>   74

indenture, executed and delivered to the Trustee and reasonably satisfactory in
form to the Trustee, of the Subsidiary Guarantee and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. All the Subsidiary Guarantees so issued shall in all
respects have the same legal rank and benefit under this Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance with the
terms of this Indenture as though all of such Subsidiary Guarantees had been
issued at the date of the execution hereof.

                  Except as set forth in Articles V and VI of the Indenture, and
notwithstanding clauses (i) and (ii) of Section 10.04 of the Supplemental
Indenture, nothing contained in the Indenture or in any of the Notes shall
prevent any consolidation or merger of a Guarantor with or into the Company or
another Guarantor, or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

                  SECTION 1.5 Releases.

                  (a) The Subsidiary Guarantee of a Guarantor will be released
and such Person shall no longer be deemed a Guarantor for purposes of the
Indenture:

                           (i) in connection with any sale or other disposition
                  of all or substantially all of the assets of that Guarantor to
                  a Person that is not (either before or after giving effect to
                  such transaction) a Subsidiary of the Company, if the Net
                  Proceeds of that sale or other disposition are applied in
                  accordance with Section 5.06 of the Supplemental Indenture;

                           (ii) in connection with any sale of all of the
                  Capital Stock of a Guarantor to a Person (including by way of
                  merger or consolidation) that is not (either before or after
                  giving effect to such transaction) a Subsidiary of the
                  Company, if the Net Proceeds of that sale are applied (or the
                  Company certifies in an Officer's Certificate delivered to the
                  Trustee that such Net Proceeds will be applied) in accordance
                  with Section 5.06 of the Supplemental Indenture; or

                           (iii) if the Company properly designates the
                  Guarantor as an Unrestricted Subsidiary in accordance with
                  Section 5.15 of the Supplemental Indenture.

                  (b) Upon delivery by the Company to the Trustee of an
Officers' Certificate and an Opinion of Counsel to the effect that such sale or
other disposition was made by the Company in accordance with the provisions of
the Indenture, including without limitation that the application of Net Proceeds
were applied (or, in the case of

                                      B-4
<PAGE>   75

clause (a)(ii) of this Section 1.5, will be applied) in accordance with Section
5.06 of the Supplemental Indenture, or such designation was made in accordance
with Section 5.15 of the Supplemental Indenture, as the case may be, the Trustee
shall execute any documents reasonably required in order to evidence the release
of any Guarantor from its obligations under its Subsidiary Guarantee.

                  (c) Any Guarantor not released from its obligations under its
Subsidiary Guarantee shall remain liable for the full amount of principal of and
interest on the Notes and for the other obligations of any Guarantor under the
Indenture as provided in the Indenture.

                  SECTION 1.6 No Recourse Against Others. No director, officer,
employee, incorporator or stockholder of the Company or any Guarantor or the
Trustee, as such, shall have any liability for any obligations of the Company or
the Guarantors under the Notes, the Indenture, the Subsidiary Guarantees, or for
any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes. The waiver may not be effective to waive liabilities under the
federal securities laws.

                  SECTION 1.7 NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

                  SECTION 1.8 Counterparts . The parties may sign any number of
copies of this Supplemental Indenture. Each signed copy shall be an original,
but all of them together represent the same agreement.

                  SECTION 1.9 Effect of Headings. The Section headings herein
are for convenience only and shall not affect the construction hereof.

                  SECTION 1.10 The Trustee. The Trustee shall not be responsible
in any manner whatsoever for or in respect of the validity or sufficiency of
this Supplemental Indenture or for or in respect of the recitals contained
herein, all of which recitals are made solely by the Guarantor and the Company.

                                      B-5
<PAGE>   76

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed and attested, all as of the date
first above written.

                  Dated:
                               [Guaranteeing Subsidiary]

                               By:
                                   ---------------------------------------------
                               Name:
                               Title:

                               THE CHASE MANHATTAN BANK, as Trustee

                               By:
                                   ---------------------------------------------
                               Name:
                               Title:<PAGE>   1
                                                                     EXHIBIT 4.3

                                 (Face of Note)

                          9 5/8% SENIOR NOTES DUE 2011

No.                                                           CUSIP: 721467 AC 2
   -------
                                                                   $
                                                                    ------------

                           PILGRIM'S PRIDE CORPORATION

promises to pay to      CEDE & CO.

or registered assigns, the principal sum of _____________ Dollars ($________) on
September 15, 2011.

Interest Payment Dates:  March 15 and September 15

Record Dates:  March 1 and September 1

                                             PILGRIM'S PRIDE CORPORATION

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

Attested by:
            --------------------------------
         [Corporate Seal]

<PAGE>   2

                                 This is one of the
                                 Notes referred to in the
                                 within-mentioned Indenture:
                                 Dated:             , 20
                                       -------------    ---

                                 The Chase Manhattan Bank,
                                 as Trustee

                                 By:
                                    -----------------------------
                                    Authorized Signatory

                                      A-2
<PAGE>   3

                                 (Back of Note)

                          9 5/8% SENIOR NOTES DUE 2011

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 306 OF THE ORIGINAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 203 OF THE ORIGINAL
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 309 OF THE ORIGINAL INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

                  1. Interest. Pilgrim's Pride Corporation, a Delaware
corporation (the "Company"), promises to pay interest on the principal amount of
this Note at 9 5/8% per annum from ___________ ___, 20__ until maturity. The
Company will pay interest semi-annually on March 15 and September 15 of each
such year, or if any such day is not a business day, on the next succeeding
business day (each an "Interest Payment Date"). Interest on the Notes will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date shall be
March 15, 2002. The Company shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

                  2. Method of Payment. The Company will pay interest on the
Notes (except defaulted interest) to the Persons who are registered Holders of
Notes at the close of business on the March 1 or September 1 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 307
of the Original Indenture with respect to Defaulted Interest. The Notes will be
payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose within or without The City and State
of New York, or, at the option of the Company, payment of interest may be made
by check mailed to the Holders at their addresses set forth in the register of
Holders, and provided that payment by wire transfer of

                                      A-3
<PAGE>   4

immediately available funds will be required with respect to principal of and
interest, premium on, the Global Note and all other Notes the Holders of which
shall have provided wire transfer instructions to the Company or the paying
agent on or prior to the applicable record date. Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

                  3. Paying Agent and Security Registrar. Initially, The Chase
Manhattan Bank, the Trustee under the Indenture, will act as Paying Agent and
Security Registrar. The Company may change any Paying Agent or Security
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

                  4. Indenture. The Company issued the Notes under an Indenture
dated as of August 9, 2001 (the "Original Indenture"), as supplemented by the
Supplemental Indenture as of the same date (the "Supplemental Indenture" and,
together with the Original Indenture, the "Indenture") between the Company and
the Trustee. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. The Notes are obligations of the Company initially in
aggregate principal amount of $200.0 million. Subject to compliance with Section
5.05 of the Supplemental Indenture, the Company is permitted to issue Additional
Notes under the Indenture in an additional principal amount of $200.0 million.
Any such Additional Notes that are actually issued will be treated as issued and
outstanding Notes (and as the same class as the initial Notes) for all purposes
of the Indenture, unless the context clearly indicated otherwise.

                  5. Optional Redemption. (a) Except as set forth in
subparagraph (b) of this Paragraph 5, the Company shall not have the option to
redeem the Notes prior to September 15, 2006. On or after September 15, 2006,
the Company may redeem all or a part of the Notes upon not less than 30 nor more
than 60 days' notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest, if any,
thereon to the applicable redemption date, if redeemed during the twelve-month
period beginning on September 15 of the years indicated below:

<Table>
<Caption>
                  Year                                        Percentage
                  ----                                        ----------
                  <S>                                         <C>
                  2006..................................       104.813%
                  2007..................................       103.208%
                  2008..................................       101.604%
                  2009 and thereafter...................       100.000%
</Table>

                                      A-4
<PAGE>   5

                  (b) Notwithstanding the provisions of subparagraph (a) of this
Paragraph 5, at any time prior to September 15, 2004, the Company may on any one
or more occasions redeem up to 35% of the aggregate principal amount of Notes
issued under the Indenture (including, if issued, any Additional Notes) at a
redemption price of 109.625% of the principal amount thereof, plus accrued and
unpaid interest, if any, to the redemption date, with the net cash proceeds of
one or more Public Equity Offerings; provided, that:

                           (i) at least 65% of the aggregate principal amount of
         Notes issued under the Indenture (including, if issued, any Additional
         Notes) remains outstanding immediately after the occurrence of such
         redemption (excluding Notes held by the Company and its Subsidiaries);
         and

                           (ii) the redemption must occur within 45 days of the
         date of the closing of such Public Equity Offering.

                  6. Mandatory Redemption. Except as set forth in paragraph 7
below, the Company shall not be required to make mandatory redemption or sinking
fund payments with respect to the Notes.

                  7. Repurchase at Option of Holder. (a) If a Change of Control
occurs, the Company shall be required to make an offer (a "Change of Control
Offer") to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of each Holder's Notes at a purchase price equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest, if any,
thereon to the date of purchase (the "Change of Control Payment"). Within ten
(10) days following any Change of Control, the Company shall mail a notice to
each Holder setting forth the procedures governing the Change of Control Offer
as required by the Indenture.

                  (b) If the Company or a Restricted Subsidiary consummates any
Asset Sales, when the aggregate amount of Excess Proceeds exceeds $10.0 million,
the Company shall commence an offer to all Holders of Notes (an "Asset Sale
Offer") pursuant to Section 4.03 of the Supplemental Indenture to purchase the
maximum principal amount of Notes that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, thereon to the date of
purchase, in accordance with the procedures set forth in the Indenture. If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company
may use such Excess Proceeds for any purpose not otherwise prohibited by the
Indenture. If the aggregate principal amount of Notes and such other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis based on the principal amount
of Notes and such other pari passu Indebtedness tendered. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.
Holders of Notes that are the subject of an offer to purchase will receive an
Asset Sale Offer from the Company prior to any related purchase date and may
elect to have such Notes purchased by completing the form entitled "Option of
Holder to Elect Purchase" on the reverse of the Notes.

                  8. Notice of Redemption. Notice of redemption will be mailed
by first class mail at least 30 days but not more than 60 days before the
redemption date to each Holder whose

                                      A-5
<PAGE>   6

Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption. Notices of redemption may not be conditional.

                  9. Denominations, Transfer, Exchange. The Notes are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture. The Security Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
for a period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

                  10. Persons Deemed Owners. The registered Holder of a Note may
be treated as its owner for all purposes.

                  11. Amendment, Supplement and Waiver. Subject to certain
exceptions set forth in the Indenture, the Indenture or the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes voting as a single class, and any
existing default or compliance with any provision of the Indenture or the Notes
may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes voting as a single class. Without
the consent of any Holder of a Note, the Indenture or the Notes may be amended
or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's obligations to Holders of the Notes
in case of a merger or consolidation or sale of all or substantially all of the
Company's assets, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights under the Indenture of any such Holder, to comply with the requirements
of the SEC in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act.

                  12. Defaults and Remedies. Events of Default include: (i)
default for 30 days in the payment when due of interest on the Notes; (ii)
default in payment when due of principal of, or premium, if any, on the Notes,
(iii) failure by the Company or any of the Guarantors to comply (A) with the
provisions of Sections 5.11 or 6.01 of the Supplemental Indenture or (B) 30 days
after notice to the Company by the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding voting as a single
class, with the provisions of Sections 5.03, 5.05 or 5.06 of the Supplemental
Indenture; (iv) failure by the Company for 60 days after notice to the Company
by the Trustee or the Holders of at least 25% in principal amount of the Notes
then outstanding voting as a single class to comply with any other agreements in
the Indenture or the Notes; (v) default under certain other agreements relating
to Indebtedness of the Company which default results in the acceleration of such
Indebtedness prior to its express maturity; (vi) certain final judgments for the
payment of money that remain

                                      A-6
<PAGE>   7

undischarged for a period of 60 days, (vii) certain circumstances when a
Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or
invalid, ceases to exist or is disaffirmed by any Guarantor, and (viii) certain
events of bankruptcy or insolvency with respect to the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary. In the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company or any Restricted
Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately. Holders of the Notes may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of
a majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or
interest, if any) if it determines that withholding notice is in their interest.
The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under
the Indenture except a continuing Default or Event of Default in the payment of
interest or premium, if any, on, or the principal of, the Notes. The Company is
required to deliver to the Trustee annually a statement regarding compliance
with the Indenture. Upon becoming aware of any Default or Event of Default, the
Company is required to deliver to the Trustee a statement specifying such
Default or Event of Default.

                  13. Trustee Dealings with Company. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not the Trustee.

                  14. No Recourse Against Others. No director, officer,
employee, incorporator or stockholder of the Company or any Guarantor or the
Trustee, as such, shall have any liability for any obligations of the Company or
the Guarantors under the Notes, the Indenture, the Subsidiary Guarantees, or for
any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes. The waiver may not be effective to waive liabilities under the
federal securities laws.

                  15. Authentication. This Note shall not be valid until
authenticated by the manual or facsimile signature of the Trustee or an
authenticating agent.

                  16. Abbreviations. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN NET
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

                  17. CUSIP Numbers. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP

                                      A-7
<PAGE>   8

numbers to be printed on the Notes and the Trustee may use CUSIP numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

                  The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to:

                  Pilgrim's Pride Corporation
                  110 South Texas Street
                  Pittsburg, Texas 75686
                  Attention:  Corporate Secretary

                                      A-8
<PAGE>   9

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ____________________________ to transfer this Note on
the books of the Company. The agent may substitute another to act for him.

Date:
     ------------------

                                  Your Signature:
                                                 -------------------------------
                                  (Sign exactly as your name appears on the face
                                  of this Note)

Signature Guarantee.

                                      A-9
<PAGE>   10

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Note purchased by the
Company pursuant to Section 5.06 or 5.11 of the Supplemental Indenture, check
the box below:

                  [ ]  Section 5.06        [ ]  Section 5.11

                  If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 5.06 or Section 5.11 of the Supplemental
Indenture, state the amount you elect to have purchased: $
                                                          -----------------

Date:
     -------------------

                                  Your Signature:
                                                 -------------------------------
                                  (Sign exactly as your name appears on the face
                                  of this Note)

                                        Tax Identification No.:
                                                               -----------------
Signature Guarantee.

                                      A-10
<PAGE>   11

              SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE

    The following increases or decreases in this Global Note, have been made:

<Table>
<Caption>
                                               Principal Amount
              Amount of          Amount of            of           Signature of
             decrease in        increase in    this Global Note     authorized
              Principal      Principal Amount   following such      officer of
 Date of      Amount of             of             decrease      Trustee or Note
Exchange  this Global Note   this Global Note     or increase       Custodian
--------  ----------------   ----------------  ----------------  ---------------
<S>       <C>                <C>               <C>               <C>

</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]