Document:

ex10_42.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          EXECUTION
COPY

        

      

    

    

     

    Exhibit
10.42

     

    AMENDMENT
No. 1

     

    Dated
as of October 10, 2008

     

    to

     

    AMENDED
AND RESTATED RECEIVABLES PURCHASE AGREEMENT

     

    Dated
as of September 26, 2008

     

    This
AMENDMENT NO. 1 (this “Amendment”) dated as
of October 10, 2008 is entered into among PILGRIM’S PRIDE FUNDING CORPORATION
(“Seller”),
PILGRIM’S PRIDE CORPORATION (“Pilgrim’s Pride”) as
initial Servicer, THE VARIOUS PURCHASERS AND PURCHASER AGENTS FROM TIME TO TIME
PARTY THERETO and BMO CAPITAL MARKETS CORP., as administrator (in such capacity,
together with its successors and assigns, the “Administrator”).

     

    RECITALS

     

    WHEREAS,
the parties hereto have entered into a certain Amended and Restated Receivables
Purchase Agreement dated as of September 26, 2008 (the “Agreement”);

     

    WHEREAS,
in order to make the most efficient use of the financing facility contemplated
by the Agreement and the other Transaction Documents, the Seller has requested
the Purchaser and the Administrator to agree to certain amendments and/or
modifications to such facility as described herein for various
purposes;

     

    WHEREAS,
the Purchaser and the Administrator are willing to agree to such amendments
solely on the terms and subject to the conditions set forth herein;

     

    NOW,
THEREFORE, in consideration of the promises and the mutual agreements contained
herein and in the Agreement, the parties hereto agree as follows:

     

    SECTION
1. Definitions.  All
capitalized terms used, but not otherwise defined, herein shall  have
the respective meanings for such terms set forth in Exhibit I to the
Agreement.

     

    SECTION
2. Amendments to the
Agreement.  The Agreement is hereby amended as
follows:

     

    2.1. The
definition of “Loss Percentage” set forth in Exhibit I to the
Agreement is hereby amended and restated in its entirety as
follows:

     

          
“Loss
Percentage” means, on any date, (a) solely during the Waiver Period, the
greatest of (i) 4 times the sum of (x) the highest average of the Default Ratios
for any three consecutive calendar months during the twelve most recent calendar
months, plus (y) the greater of (1) the highest average of the Dilution Ratios
for any three consecutive calendar months during the twelve most recent calendar
months and (2) 1.75%, (ii) 3.5 times the quotient (expressed as a percentage) of
(x) the aggregate Outstanding Balance of the Eligible Receivables then included
in the Net Receivable Pool Balance of the non-Investment Grade Obligor with the
greatest amount of Receivables included in the Net Receivables Pool Balance
divided by (y)
Net Receivables Pool Balance on such date, and (iii) 12%; and

     

          
(b)           at all
times following the expiration of the Waiver Period, the greatest of (i) 5 times
the sum of (x) the highest average of the Default Ratios for any three
consecutive calendar months during the twelve most recent calendar months, plus
(y) the greater of (1) the highest average of the Dilution Ratios for any three
consecutive calendar months during the twelve most recent calendar months and
(2) 2.25%, (ii) 4 times the quotient (expressed as a percentage) of (x) the
aggregate Outstanding Balance of the Eligible Receivables then included in the
Net Receivable Pool Balance of the non-Investment Grade Obligor with the
greatest amount of Receivables included in the Net Receivables Pool Balance
divided by (y)
Net Receivables Pool Balance on such date, and (iii) 18%.

     

     

         2.2. 
The definition of “Normal Concentration Percentage” set forth in Exhibit I to the
Agreement is hereby amended and restated in its entirety as
follows:

     

        “Normal Concentration
Percentage” means, at any time, (1) solely during the Waiver Period (a)
for any Obligor that is not a Special Obligor or Wal-Mart, 3%; (b) for any
Obligor that is a Special Obligor, (i) if such Special Obligor is rated A+ or
better by S&P and A1 or better by Moody’s, 12% or (ii) if such Special
Obligor is not so rated but is rated at least BBB- by S&P and Baa3 by
Moody’s, 6%; or (c) for any Obligor that is Wal-Mart, (i) if Wal-Mart is rated
AA or better by S&P and Aa2 or better by Moody’s, 18%, or (ii) if Wal-Mart
is not so rated but is rated at least AA- by S&P and Aa3 by Moody’s, 15% or
(iii) if Wal-Mart is rated A+ or lower by S&P and A1 or lower by Moody’s,
the applicable percentage shall be as set forth for Obligors and Special
Obligors in this definition.  If the ratings from S&P and Moody’s
fall within different categories, the Normal Concentration Percentage shall be
based on the category in which the lower of the two ratings falls.  If
any Obligor is rated only by S&P or only by Moody’s, the Normal
Concentration Percentage shall be based on the rating by such Rating Agency
without regard to a rating by any other Rating Agency; and 

     

        (2) at all
times following the expiration of the Waiver Period (a) for any Obligor that is
not a Special Obligor, 3%; or (b) for any Obligor that is a Special Obligor, (i)
if such Special Obligor is rated A+ or better by S&P and A1 or better by
Moody’s, 12% or (ii) if such Special Obligor is not so rated but is rated at
least BBB- by S&P and Baa3 by Moody’s, 6%.  If the ratings from
S&P and Moody’s fall within different categories, the Normal Concentration
Percentage shall be based on the category in which the lower of the two ratings
falls.  If any Obligor is rated only by S&P or only by Moody’s,
the Normal Concentration Percentage shall be based on the rating by such Rating
Agency without regard to a rating by any other Rating Agency.

     

        2.3. The
definition of “Net Receivables Pool Balance” set forth in Exhibit I to the
Agreement is hereby amended by inserting, immediately prior to the period at the
end of such definition, the following proviso:

     

    ; provided, that, for
purposes of calculating the Outstanding Balance of each such Eligible Receivable
then in the Receivables Pool, to the extent that the Outstanding Balance of such
Receivable has been reduced by the Servicer by application of payments on
account of such Receivable deposited to the Lock-Box Accounts, Collection
Account and/or Liquidation Account but not yet available funds, the Outstanding
Balance of such Receivable shall be deemed increased solely to the extent of
such payments until such time as such payments become available
funds.

     

        2.4. The
definition of “NRB” set forth in the definition of “Participation” set forth in
Exhibit I to the Agreement is hereby amended in its entirety as
follows:

     

    NRB=the
Net Receivables Pool Balance at the time of computation.

     

        2.5. Exhibit I to the
Agreement is hereby amended by adding the following new definition thereto in
the appropriate alphabetical order:

     

        “PPC Limited Duration Waiver
Agreement” means the Pilgrim’s Pride Corporation Limited Duration Waiver
Agreement, dated as of September 26, 2008, among Pilgrims Pride Corporation,
Pilgrim’s Pride Funding Corporation, the various purchasers and purchaser agents
from time to time party thereto and BMO Capital Markets Corp.

     

        “Waiver Period” has
the meaning set forth in the PPC Limited Duration Waiver Agreement.

     

        “Wal-Mart” means
Wal-Mart Stores, Inc., a Delaware corporation, and its
subsidiaries.

    

    SECTION
3. Representations and
Warranties.  Each of the Seller and the Servicer hereby
represents and warrants to the Purchaser and the Administrator that the
representations and warranties of such Person contained in Exhibit III to the
Agreement are true and correct as of the date hereof (unless stated to relate
solely to an earlier date, in which case such representations and warranties
were true and correct as of such earlier date), and that as of the date hereof,
no Termination Event or Unmatured Termination Event has occurred and is
continuing or will result from this Amendment.

     

    SECTION
4. Effect of
Amendment.  (a) All provisions of the Agreement, as expressly
amended and modified by this Amendment, shall remain in full force and effect
and are hereby ratified and confirmed in all respects.  After this
Amendment becomes effective, all references in the Agreement (or in any other
Transaction Document) to “this Agreement”, “hereof”, “herein” or words of
similar effect referring to the Agreement shall be deemed to be references to
the Agreement as amended by this Amendment.  This Amendment shall not
be deemed, either expressly or impliedly, to waive, amend or supplement any
provision of the Agreement other than as set forth herein.

     

    (b) Notwithstanding
anything in the Agreement or any other Transaction Document to the contrary,
each of the parties hereto, hereby consents and agrees to the amendments
contemplated hereby and that all of the provisions in the Agreement, the
Purchase and Contribution Agreement, the Purchase Agreement and the other
Transaction Documents shall be interpreted so as to give effect to the intent of
the parties hereto as set forth in this Amendment.

     

    SECTION
5. Effectiveness.  This
Amendment shall become effective as of the date hereof upon receipt by the
Administrator of the following (each, in form and substance satisfactory to the
Administrator):

     

    (a) Counterparts
of this Amendment executed by each of the parties hereto (including facsimile or
electronic copies);

     

    (b) (i)
Evidence, in form and substance satisfactory to the Administrator that the
Seller and the Servicer have complied with the Administrator’s request (as
described in its letter to the Seller and the Servicer with respect thereto
delivered on October 9, 2008) to provide the Administrator with a daily
Collateral Report and to direct Collections to the Administrator or an account
designated by the Administrator on a daily basis and (ii) a signed copy of an
account control agreement, in form and substance satisfactory to the
Administrator, covering each of the Lock-Box Accounts at Bank of America,
N.A.;

     

    (c) Evidence,
in form and substance satisfactory to the Administrator, that any requirement
for there to be undrawn commitments under either or both of the BMO Credit
Agreement and the CoBank Credit Agreement, be reduced to an aggregate amount of
not greater than $75,000,000; and

     

    (d) Such
other documents, resolutions, certificates, agreements and opinions as the
Administrator may reasonably request in connection herewith.

     

    For
purposes of this Section 5, (a) “BMO Credit Agreement”, means the Fourth Amended
and Restated Credit Agreement dated as of February 8, 2007 among Pilgrim Pride
Corporation , To-Ricos, Ltd and To-Ricos Distribution Ltd, the various banks
party thereto and Bank of Montreal as agent (as amended, supplemented or
otherwise modified from time to time) and (b) “CoBank Credit Agreement” means,
the Amended and Restated Credit Agreement dated as of September 21, 2006, among
Pilgrims Pride Funding Corporation, CoBank, ACB, Farm Credit Services of
America, FLCA and the various other parties thereof (as amended, supplemented or
otherwise modified from time to time).

     

    SECTION
6. Additional
Covenant.  The Company and the Servicer hereby covenant and
agree that, if any upfront fees are paid to the agents, or if pricing or other
fees are otherwise increased, under the BMO Credit Agreement or the CoBank
Credit Agreement in connection with any amendments thereto during the Waiver
Period, the Company (or the Servicer on its behalf) shall (a) in the case of any
upfront fees, pay to the Administrator, within one Business Day of any payment
of fees under any amendments to the BMO Credit Agreement or the CoBank Credit
Agreement, a corresponding fee to the Administrator (calculated by converting
any such fee under the amendments to the BMO Credit Agreement or the CoBank
Credit Agreement into an equivalent rate based on the relative commitments
thereunder and multiplying such equivalent rate by the Commitment) and (b) in
the case of increased pricing or other fees, as soon as practicable thereafter
amend the Agreement or Purchaser Group Fee Letter or execute such other
documents as may be requested by the Administrator, in form and substance
satisfactory to the Administrator, to reflect increased pricing or other fees on
similarly favorable terms.

     

    SECTION
7. RELEASE. FOR VALUE RECEIVED,
INCLUDING WITHOUT LIMITATION, THE AGREEMENTS OF THE ADMINISTRATOR AND THE
PURCHASERS IN THIS AMENDMENT AND THE AGREEMENT AS AMENDED HEREBY, EACH OF THE
SELLER AND THE SERVICER HEREBY RELEASES THE ADMINISTRATOR, EACH PURCHASER AGENT,
EACH PURCHASER, EACH INDEMNIFIED PARTY AND THEIR RESPECTIVE CURRENT AND FORMER
SHAREHOLDERS, DIRECTORS, OFFICERS, AGENTS, EMPLOYEES, ATTORNEYS, CONSULTANTS,
AND PROFESSIONAL ADVISORS (COLLECTIVELY, THE “RELEASED PARTIES”) OF AND FROM ANY AND ALL
DEMANDS, ACTIONS, CAUSES OF ACTION, SUITS, CONTROVERSIES, ACTS AND OMISSIONS,
LIABILITIES, AND OTHER CLAIMS OF EVERY KIND OR NATURE WHATSOEVER, BOTH IN LAW
AND IN EQUITY, KNOWN OR UNKNOWN, WHICH SUCH SELLER OR SERVICER HAS OR EVER HAD
AGAINST THE RELEASED PARTIES FROM THE BEGINNING OF THE WORLD TO THIS DATE
ARISING IN ANY WAY OUT OF THE EXISTING FINANCING ARRANGEMENTS BETWEEN THE
SELLER, THE SERVICER, THE ADMINISTRATOR, THE PURCHASER AGENTS AND THE
PURCHASERS, AND EACH OF THE SELLER AND THE SERVICER FURTHER ACKNOWLEDGES THAT,
AS OF THE DATE HEREOF, IT DOES NOT HAVE ANY COUNTERCLAIM, SET-OFF, OR DEFENSE
AGAINST THE RELEASED PARTIES, EACH OF WHICH EACH OF THE SELLER AND THE SERVICER
HEREBY EXPRESSLY WAIVES.

     

    SECTION
8. Counterparts.  This
Amendment may be executed in any number of counterparts and by different parties
on separate counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute but one and
the same instrument.

     

    SECTION
9. Governing
Law.  This Amendment, including the rights and duties of the
parties hereto, shall be governed by, and construed in accordance with, the laws
of the State of Texas (without giving effect to the conflict of laws principles
thereof).

     

    SECTION
10. Section
Headings.  The various headings of this Amendment are included
for convenience only and shall not affect the meaning or interpretation of this
Amendment, the Agreement or any provision hereof or thereof.

     

    SECTION
11. JURY
TRIAL.  THE JURY TRIAL WAIVER SET FORTH IN SECTION 6.10 OF THE
AGREEMENT SHALL APPLY TO THIS AMENDMENT AS IF IT WERE FULLY SET FORTH
HEREIN.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (continued
on following page)

    

    

    
      
        
          
            	 
      	 
      	 
      

          

          5225406 98442494

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed by their
respective officers thereunto duly authorized as of the date first above
written.

     

    PILGRIM’S
PRIDE FUNDING CORPORATION,

    as
Seller

    

    

    By: /s/ Richard A.
Cogdill

    Richard A. Cogdill

    Chief Financial Officer, Secretary and
Treasurer

    

    

    

    PILGRIM’S
PRIDE CORPORATION,

    as
initial Servicer

    

    

    By: /s/ Richard A.
Cogdill

    Richard A. Cogdill

    Chief Financial Officer, Secretary and
Treasurer

    

    

    

    FAIRWAY
FINANCE COMPANY, LLC,

    as
Uncommitted Purchaser and as Related Committed Purchaser for the BMOCM Purchaser
Group

    

    

    By: /s/ Phillip A.
Martone

    Name:
Phillip A. Martone

    Title:   Vice
President

    

    

    

    BMO
CAPITAL MARKETS CORP.,

    as
Administrator and as Purchaser Agent for the BMOCM Purchaser Group

    

    

    By:    /s/ Brian
Zaban

    Name:
Brian Zaban

    Title:   Managing
Director

    

    

    

     

    
      
        
          
            	 
      	
                    S-

                  	
                    Amendment
      No. 1 to A&R RPA

                  

          

          5225406 98442494ex10_48.htm

    

    

     

    EXHIBIT
10.48

     

    FIRST
AMENDMENT TO LIMITED DURATION WAIVER OF POTENTIAL DEFAULTS AND EVENTS OF DEFAULT
UNDER CREDIT AGREEMENT

     

    This
First Amendment to Limited Duration Waiver Of Potential Defaults And Events Of
Default Under Credit Agreement (the “Amendment”) is made as
November 25, 2008, by and among the Pilgrim’s Pride Corporation, a Delaware
Corporation (“Borrower”), the Syndication
Parties (whose signatures appear below), and CoBank ACB, as Administrative Agent
for the Syndication Parties (“CoBank”).

     

    Recitals:

     

            A.The
Borrower, the Syndication Parties and the Agent are parties to that certain
Limited Duration Waiver Of Potential Defaults And Events Of Default Under Credit
Agreement dated as of October 26, 2008 (the “Waiver
Agreement”).  

     

            B.Pursuant
to the Waiver Agreement, the Required Lenders agreed, among other things, to
waive the Subject Defaults for during the period ending on November 26,
2008.

     

           C.The
Borrower has requested that the Required Lenders amend the Waiver Agreement to
extend the Waiver Period and to amend certain other provisions thereof, and the
Required Lenders are willing to do so subject to the terms and conditions set
forth herein.

     

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

     

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

     

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

     

    2.Amendment of Section 2.1 of the
Waiver Agreement.  

     

    Section 2.1
of the Waiver Agreement shall be amended to read as follows:

     

        2.1.Except as
provided in this Subsection 2.1 of this Agreement, the Agent and the Syndication
Parties reserve the right to exercise any and all of their rights, powers and
remedies under the Credit Agreement and the other Loan Documents, including the
right to cease making Loans, and the right to accelerate the maturity of all
outstanding Bank Debt.  Subject to satisfaction of the terms and
conditions contained in this Agreement, the Agent and the Syndication Parties
agree to waive the Subject Defaults and shall, with respect to the Subject
Defaults (but not with respect to any other Potential Default or Event of
Default that may be existing or that may occur), not exercise their rights,
powers and remedies under the Credit Agreement or the other Loan Documents but
only for the period beginning October 28, 2008, and ending at 12:00 Noon,
Chicago time, on December 1, 2008 (the “Waiver Period”).

     

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

     

                     
4.Amendment of Section 4.3 of
the Waiver Agreement.

     

    Section 4.3
of the Waiver Agreement shall be amended to read as follows:

     

    No later
than December 1, 2008, the Borrower shall execute and deliver a deed of trust or
mortgage and assignment of leases and rents with respect to Borrower’s interest
in each unencumbered property of the Borrower pursuant to section 10.18(f) of
the Credit Agreement.

     

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

     

             
6.Representations and
Warranties.  The Borrower represents and warrants to the Agent
and the Syndication Parties that:

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

        (a)the
Borrower, the Agent, and the Required Lenders shall have executed and delivered
this Amendment and consent in the space provided for that purpose below, on or
before November 26, 2008;

     

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

     

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

     

        (d)the
payment of the current legal fees and expenses referred to in Section 9
above.

     

             
11.General
Provisions.

     

    (a)Authority of
Borrower.  By its acceptance hereof, the Borrower hereby represents
that it has the necessary power and authority to execute, deliver, and perform
the undertakings contained herein, and that this Amendment constitutes the valid
and binding obligation of the Borrower enforceable against it in accordance with
its terms.

     

    (b)Severability.  Any
provision of this Amendment held invalid, illegal, or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality, or unenforceability without affecting the validity,
legality, and enforceability of the remaining provision hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

     

    (c)Loan Document.  The
parties hereto hereby acknowledge and agree that this Amendment shall constitute
a Loan Document for all purposes of the Credit Agreement and the other Loan
Documents.

     

    (d)Survivability.  Unless
otherwise expressly stated herein, the provisions of this Amendment shall
survive the termination of the Waiver Period.

     

    (e)Counterparts.  This
Amendment may be executed in counterparts and by different parties on separate
counterpart signature pages, each of which constitutes an original and all of
which taken together constitute one and the same instrument.  Delivery
of executed counterparts of this Amendment by telecopy shall be effective as an
original.  This Amendment may be executed by the parties hereto in
separate counterparts, each of which, when so executed and delivered, shall be
an original, but all such counterparts shall together constitute one and the
same instrument.  Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.  Copies of documents or signature pages bearing
original signatures, and executed documents or signature pages delivered by a
party by telefax, facsimile, or e-mail transmission of an Adobe® file format
document (also known as a PDF file) shall, in each such instance, be deemed to
be, and shall constitute and be treated as, an original signed document or
counterpart, as applicable.  Any party delivering an executed
counterpart of this Amendment by telefax, facsimile, or e-mail
transmission of an Adobe® file format document also shall deliver an original executed
counterpart of this Amendment, but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding
effect of this Amendment.

     

    (f)Governing Law.  This
Amendment shall be governed by Colorado law and shall be governed and
interpreted on the same basis as the Credit Agreement.

     

    (g)Successors and
Assigns.  This Amendment shall be binding upon and inure to the
benefit of Borrower, Agent, and the Syndication Parties, and their respective
successors and assigns, except that Borrower may not assign or transfer its
rights or obligations hereunder without the prior written consent of all the
Syndication Parties.

     

    (h)Headings.  The captions
or headings in this Amendment are for convenience only and in no way define,
limit or describe the scope or intent of any provision of this
Amendment.

     

    (i)No Other
Modifications.  The Credit Agreement, except as expressly modified
herein, shall continue in full force and effect and be binding upon the parties
thereto.

     

     [Signature
Pages to Follow]

    
      
        
          80386851.3 

          DALDMS/652641.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to Limited
Duration Waiver Of Potential Defaults And Events Of Default Under Credit
Agreement to be executed as of the date and year first above
written.

     

    

    ADMINISTRATIVE
AGENT:CoBank, ACB

    

    

    By:/s/ James
Matzat

    Name:James
Matzat

    Title:Vice
President

    

    

    BORROWER:Pilgrim’s
Pride Corporation

    

    By:           /s/ Richard A.
Cogdill                                                              

    Name:
Richard A. Cogdill

    Title:
Vice President, Secretary and Treasurer

    

    

    SYNDICATION
PARTIES:CoBank, ACB

    

    

    By:/s/ James
Matzat

    Name:James
Matzat

    Title:Vice
President

    

    Agriland, FCS

    

    

    By: /s/ Dwayne
Young

    Name:Dwayne
Young

    Title:Chief
Executive Officer

    

    Deere Credit, Inc.

    

    

    By: /s/ John H.
Winger

    Name:John
H. Winger

    Title:Manager,
AFS Credit Operations

    

    {Signature
Page to First Amendment}

    

    Bank
of the West

    

    

    By:/s/ Larry L.
Redding

    Name:Larry
L. Redding

    Title:Vice
President

    

    

    John
Hancock Life Insurance Company

    

    

    By:/s/ Dwayne
Bertrand

    Name:Dwayne
Bertrand

    Title:Managing
Director

    

    

    The
Variable Annuity Life Insurance Company

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    

    The
United States Life Insurance Company in the City of New York

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    

    Merit
Life Insurance Co.

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    {Signature
Page to First Amendment}

    

    American
General Assurance Company

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    AIG
International Group, Inc.

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    AIG
Annuity Insurance Company

    AIG
Global Investment Corp., investment advisor

    

    By:

    Name:

    Title:

    

    Transamerica
Life Insurance Company

    

    

    By:

    Name:

    Title:

    

    The
CIT Group/Business Credit, Inc.

    

    

    By:

    Name:

    Title:

    

    Metropolitan
Life Insurance Company

    

    

    By:/s/ Barry L.
Bogseth

    Name:Barry
L. Bogseth

    Title:Director

    

    {Signature
Page to First Amendment}

    

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

    

    

    By:/s/ Richard J.
Beard

    Name:Richard
J. Beard

    Title:Executive
Director

    

    

    By:/s/ Rebecca
Morrow

    Name:Rebecca
Morrow

    Title:Executive
Director

    

    

    Farm
Credit Services of America, PCA

    

    By:/s/ Bruce
Dean

    Name:Bruce
Dean

    Title:Vice
President

    

    

    

    The
Prudential Insurance Company of America

    

    

    By:

    Name:

    Title:

    

    {Signature
Page to First Amendment}

     

    

    

     

    

     

    

    

    
      
        
          DALDMS/652641.3

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