Document:

2004 Amended and Restated Credit Agreement

 Exhibit 10.1 
  
 2004 AMENDED AND RESTATED 
 CREDIT AGREEMENT 
 (CONVERTIBLE REVOLVING LOAN)

  
 BY AND
BETWEEN 
  
 COBANK, ACB, 
 AS LEAD ARRANGER
AND BOOK MANAGER, AND AS ADMINISTRATIVE, 
 DOCUMENTATION AND COLLATERAL AGENT; 
  
 AGRILAND, FCS 
 AS
CO-ARRANGER AND AS A SYNDICATION PARTY; AND 
  
 DEERE CREDIT, INC., 
 AS SYNDICATION PARTY, 
  
 AND 
  
 PILGRIM’S PRIDE CORPORATION, AS BORROWER 
  
 DATED AS OF APRIL 7, 2004 

 TABLE OF CONTENTS 
  

			
	 Article 1. DEFINED TERMS
	  	1
		
	 1.1 Administrative Agent Office
	  	1
		
	 1.2 Advance Date
	  	1
		
	 1.3 Aggregate Commitment
	  	2
		
	 1.4 Amendment Documents
	  	2
		
	 1.5 Applicable Lending Office
	  	2
		
	 1.6 Appraisal
	  	2
		
	 1.7 Appraised Value
	  	2
		
	 1.8 Availability Period
	  	2
		
	 1.9 Available Amount
	  	2
		
	 1.10 Bank Debt
	  	2
		
	 1.11 Banking Day
	  	2
		
	 1.12 Base Rate
	  	3
		
	 1.13 Borrower’s Account
	  	3
		
	 1.14 Borrower Benefit Plan
	  	3
		
	 1.15 Capital Lease
	  	3
		
	 1.16 Capital Lease Obligation
	  	3
		
	 1.17 Casualty Event
	  	3
		
	 1.18 Casualty Proceeds
	  	3
		
	 1.19 Closing Date
	  	4
		
	 1.20 Code
	  	4
		
	 1.21 Comerica Loan
	  	4
		
	 1.22 Committed Advances
	  	4
		
	 1.23 Compliance Certificate
	  	4

  

 i 

			
	 1.24 Consolidated Current Assets
	  	4
		
	 1.25 Consolidated Current Liabilities
	  	4
		
	 1.26 Consolidated Interest Expense
	  	4
		
	 1.27 Consolidated Net Income
	  	4
		
	 1.28 Consolidated Subsidiary
	  	4
		
	 1.29 Current Assets
	  	4
		
	 1.30 Current Liabilities
	  	4
		
	 1.31 Current Ratio
	  	5
		
	 1.32 Debt
	  	5
		
	 1.33 Default Interest Rate
	  	5
		
	 1.34 Departing Lender
	  	5
		
	 1.35 Depreciation
	  	6
		
	 1.36 EBITDA
	  	6
		
	 1.37 Environmental Laws
	  	6
		
	 1.38 ERISA
	  	6
		
	 1.39 ERISA Affiliate
	  	6
		
	 1.40 Farm Credit System Institution
	  	6
		
	 1.41 Financial Projections
	  	6
		
	 1.42 Fiscal Quarter
	  	6
		
	 1.43 Fiscal Year
	  	6
		
	 1.44 Fixed Charge Coverage Ratio
	  	6
		
	 1.45 Foreign Subsidiary Debt
	  	7
		
	 1.46 Funding Share
	  	7
		
	 1.47 GAAP
	  	7
		
	 1.48 Good Faith Contest
	  	7

  

 ii 

			
	 1.49 Governmental Authority
	  	7
		
	 1.50 Grower Settlement Agreements
	  	7
		
	 1.51 Hancock Loan
	  	7
		
	 1.52 Harris Loan
	  	7
		
	 1.53 Hazardous Substances
	  	8
		
	 1.54 Individual Commitment
	  	8
		
	 1.55 Individual Lending Capacity
	  	8
		
	 1.56 Individual Outstanding Obligations
	  	8
		
	 1.57 Individual Pro Rata Share
	  	8
		
	 1.58 Intangible Asset
	  	8
		
	 1.59 Intercompany Bond
	  	8
		
	 1.60 Interest Expense
	  	9
		
	 1.61 Investment
	  	9
		
	 1.62 Leverage Ratio
	  	9
		
	 1.63 LIBO Rate
	  	9
		
	 1.64 Lien
	  	10
		
	 1.65 Loans
	  	10
		
	 1.66 Loan Documents
	  	10
		
	 1.67 Material Adverse Effect
	  	10
		
	 1.68 Material Agreements
	  	10
		
	 1.69 Maturity Date
	  	10
		
	 1.70 Multiemployer Plan
	  	10
		
	 1.71 Net Tangible Assets
	  	10
		
	 1.72 Net Working Capital
	  	10
		
	 1.73 Net Worth
	  	10

  

 iii 

			
	 1.74 Note or Notes
	  	10
		
	 1.75 Operating Lease
	  	10
		
	 1.76 Organizational Documents
	  	10
		
	 1.77 Pari Passu Loan
	  	11
		
	 1.78 Permanent Reduction of Production
	  	11
		
	 1.79 Person
	  	11
		
	 1.80 Pilgrim Family
	  	11
		
	 1.81 Plan
	  	12
		
	 1.82 Potential Default
	  	12
		
	 1.83 Prohibited Transaction
	  	12
		
	 1.84 Protein IRB Bonds
	  	12
		
	 1.85 Receivables Securitization Program
	  	12
		
	 1.86 Reportable Event
	  	12
		
	 1.87 Required Lenders
	  	12
		
	 1.88 Revolving Loan
	  	12
		
	 1.89 Security Documents
	  	12
		
	 1.90 Senior Subordinated Notes
	  	13
		
	 1.91 Senior Unsecured Notes
	  	13
		
	 1.92 Subsidiary
	  	13
		
	 1.93 Successor Agent
	  	13
		
	 1.94 Syndication Parties
	  	13
		
	 1.95 Tangible Net Worth
	  	13
		
	 1.96 Title Insurer
	  	13
		
	 1.97 Title Policy
	  	13
		
	 1.98 Total Liabilities
	  	14

  

 iv 

			
	 Article 2. REVOLVING LOAN
	  	16
		
	 2.1 Revolving Loan
	  	16
		
	 2.1.1 Individual Syndication Party Commitment
	  	16
		
	 2.1.2 Individual Syndication Party Pro Rata Share
	  	16
		
	 2.1.3 Aggregate Commitment; Available Amount
	  	16
		
	 2.2 Revolving Promissory Notes
	  	16
		
	 2.3 Advances Under 2000 Credit Agreement
	  	16
		
	 2.4 Syndication Party Records
	  	17
		
	 2.5 Use of Proceeds
	  	17
		
	 2.6 Advances; Funding
	  	17
		
	 2.7 Syndication Party Funding Failure
	  	17
		
	 2.8 Reduction of Aggregate Commitment
	  	17
		
	 Article 3. INTEREST AND FEES
	  	18
		
	 3.1 Interest
	  	18
		
	 3.1.1 Base Rate Option
	  	18
		
	 3.1.2 LIBO Rate Option
	  	18
		
	 3.2 Additional Provisions for LIBO Rate Loans
	  	19
		
	 3.2.1 Inapplicability or Unavailability of LIBO Rate
	  	19
		
	 3.2.2 Change in Law; LIBO Rate Loan Unlawful
	  	19
		
	 3.3 Default Interest Rate
	  	20
		
	 3.4 Interest Calculation
	  	20
		
	 3.5 Fees
	  	20
		
	 3.5.1 Commitment Fee
	  	20
		
	 3.6 Interest Rate Margins; Commitment Fee Factor
	  	21
		
	 3.6.1 Calculation
	  	21

  

 v 

			
	 3.6.2 Compliance Certificate
	  	21
		
	 3.7 Maximum Interest Rate
	  	22
		
	 Article 4. PAYMENTS; FUNDING LOSSES
	  	23
		
	 4.1 Principal Payments
	  	23
		
	 4.1.1 Automatic Conversion
	  	23
		
	 4.1.2 Principal Payments
	  	23
		
	 4.2 Interest Payments
	  	23
		
	 4.3 Voluntary Prepayments
	  	23
		
	 4.4 Mandatory Prepayments
	  	24
		
	 4.5 Application of Principal Payments
	  	26
		
	 4.5.1 Scheduled Payments
	  	26
		
	 4.5.2 Voluntary Prepayments
	  	26
		
	 4.5.3 Mandatory Prepayments
	  	26
		
	 4.6 Manner of Payment
	  	26
		
	 4.7 Distribution of Principal and Interest Payments
	  	27
		
	 4.7.1 Principal and Interest Payments on Revolving Loan
	  	27
		
	 4.8 Funding Losses
	  	27
		
	 Article 5. BANK EQUITY INTERESTS
	  	27
		
	 5.1 Purchase of Bank Equity Interests
	  	27
		
	 Article 6. SECURITY
	  	28
		
	 6.1 Borrower’s Collateral
	  	28
		
	 6.2 Guaranty
	  	28
		
	 Article 7. REPRESENTATIONS AND WARRANTIES
	  	29
		
	 7.1 Organization, Good Standing, Etc
	  	29
		
	 7.2 Corporate Authority, Due Authorization; Consents
	  	29

  

 vi 

			
	 7.3 Litigation
	  	29
		
	 7.4 No Violations
	  	29
		
	 7.5 Binding Agreement
	  	30
		
	 7.6 Compliance with Laws
	  	30
		
	 7.7 Principal Place of Business
	  	30
		
	 7.8 Payment of Taxes
	  	30
		
	 7.9 Licenses and Approvals
	  	30
		
	 7.10 Employee Benefit Plans
	  	31
		
	 7.10.1 Employee Benefit Plans; Multiemployer Plans
	  	31
		
	 7.10.2 Pension Benefit Plans
	  	31
		
	 7.10.3 Prohibited Transactions
	  	31
		
	 7.10.4 Civil/Criminal Action
	  	31
		
	 7.10.5 Funding
	  	32
		
	 7.10.6 Compliance With Law
	  	32
		
	 7.10.7 Multiple Employer Plan
	  	32
		
	 7.10.8 Plan Termination Liability; Multiemployer Plan Withdrawal Liability
	  	32
		
	 7.10.9 Pension Plan Termination
	  	32
		
	 7.10.10 Reportable Event
	  	32
		
	 7.10.11 Payment of Contributions
	  	33
		
	 7.10.12 Welfare Benefit Plans
	  	33
		
	 7.11 Equity Investments
	  	33
		
	 7.12 Title to Real and Personal Property
	  	33
		
	 7.13 Financial Statements
	  	34
		
	 7.14 Environmental Compliance
	  	34
		
	 7.15 Fiscal Year
	  	35

  

 vii 

			
	 7.16 Material Agreements
	  	35
		
	 7.17 Regulations U and X
	  	35
		
	 7.18 Trademarks, Tradenames
	  	35
		
	 7.19 No Default on Outstanding Judgments or Orders
	  	35
		
	 7.20 No Default in Other Agreements
	  	35
		
	 7.21 Labor Matters; Labor Agreements
	  	35
		
	 7.22 Governmental Regulation
	  	36
		
	 7.23 Borrower Information
	  	36
		
	 7.24 Financial Projections
	  	36
		
	 7.25 Solvency
	  	36
		
	 7.26 Anti-Terrorism Laws
	  	37
		
	 7.26.1 Violation of Law
	  	37
		
	 7.26.2 Classification
	  	37
		
	 7.26.3 Conduct of Business
	  	37
		
	 7.27 Disclosure
	  	37
		
	 Article 8. CONDITIONS TO CLOSING AND TO ADVANCES
	  	38
		
	 8.1 Conditions to Closing
	  	38
		
	 8.1.1 Loan and Amendment Documents; Possession of Collateral; and Pilgrim Guaranty
	  	38
		
	 8.1.2 Approvals
	  	38
		
	 8.1.3 Organizational Documents
	  	38
		
	 8.1.4 Evidence of Insurance
	  	38
		
	 8.1.5 Appointment of Agent for Service.
	  	38
		
	 8.1.6 No Material Change
	  	38
		
	 8.1.7 Fees and Expenses
	  	39
		
	 8.1.8 Evidence of Corporate Action
	  	39

  

 viiii 

			
	 8.1.9 Opinion of Counsel
	  	39
		
	 8.1.10 Renewal of Harris Loan
	  	39
		
	 8.1.11 Financial Projections
	  	39
		
	 8.1.12 Further Assurances
	  	39
		
	 8.2 Borrowing Notice; Funding Notice
	  	40
		
	 8.3 Conditions to Advance
	  	40
		
	 8.3.1 Default
	  	40
		
	 8.3.2 Availability Period
	  	40
		
	 8.3.3 Representations and Warranties; Fees and Expenses
	  	40
		
	 8.3.4 No Material Change
	  	41
		
	 8.4 Limitation on LIBO Rate Loans
	  	41
		
	 8.5 Illegality of Loan
	  	42
		
	 8.6 Treatment of Affected Loans
	  	42
		
	 Article 9. AFFIRMATIVE COVENANTS
	  	43
		
	 9.1 Books and Records
	  	43
		
	 9.2 Reports and Notices
	  	43
		
	 9.2.1 Annual Financial Statements
	  	43
		
	 9.2.2 Quarterly Financial Statements
	  	43
		
	 9.2.3 Notice of Default
	  	43
		
	 9.2.4 ERISA Reports
	  	44
		
	 9.2.5 Notice of Litigation
	  	44
		
	 9.2.6 Notice of Material Adverse Effect
	  	44
		
	 9.2.7 Notice of Environmental Proceedings
	  	44
		
	 9.2.8 Regulatory and Other Notices
	  	44
		
	 9.2.9 Adverse Action Regarding Required Licenses
	  	45

  

 ix 

			
	 9.2.10 Notice of Certain Changes
	  	45
		
	 9.2.11 Available Amount Reports
	  	45
		
	 9.2.12 Appraisals
	  	46
		
	 9.2.13 Filings and Reports
	  	46
		
	 9.2.14 Additional Information
	  	46
		
	 9.3 Maintenance of Existence and Qualification
	  	46
		
	 9.4 Compliance with Legal Requirements and Agreements
	  	47
		
	 9.5 Compliance with Environmental Laws
	  	47
		
	 9.6 Taxes
	  	47
		
	 9.7 Insurance
	  	47
		
	 9.8 Title to and Maintenance of Properties
	  	48
		
	 9.9 Inspection
	  	48
		
	 9.10 Required Licenses; Permits; Etc
	  	49
		
	 9.11 ERISA
	  	49
		
	 9.12 Financial Covenants
	  	49
		
	 9.12.1 Leverage Ratio
	  	49
		
	 9.12.2 Tangible Net Worth
	  	49
		
	 9.12.3 Current Ratio
	  	50
		
	 9.12.4 Net Tangible Assets to Total Liabilities
	  	50
		
	 9.12.5 Fixed Charge Coverage Ratio
	  	50
		
	 9.12.6 Net Working Capital
	  	50
		
	 9.13 Appraised Property
	  	50
		
	 9.14 Title Insurance Endorsements.
	  	50
		
	 9.15 Production Cut-back
	  	50
		
	 9.16 Embargoed Person
	  	52

  

 x 

			
	 9.17 Anti-Money Laundering
	  	52
		
	 9.18 Additional Collateral
	  	52
		
	 Article 10. NEGATIVE COVENANTS
	  	54
		
	 10.1 Borrowing
	  	54
		
	 10.2 No Other Businesses
	  	55
		
	 10.3 Liens
	  	55
		
	 10.4 Sale of Collateral
	  	56
		
	 10.5 Liabilities of Others
	  	57
		
	 10.6 Loans
	  	57
		
	 10.7 Merger; Acquisitions; Business Form; Etc
	  	58
		
	 10.8 Investments
	  	58
		
	 10.9 Transactions With Related Parties
	  	60
		
	 10.10 Dividends, etc
	  	60
		
	 10.11 ERISA
	  	60
		
	 10.12 Change in Fiscal Year
	  	61
		
	 10.13 Leases
	  	61
		
	 10.14 Principal Payments
	  	61
		
	 10.15 Anti-Terrorism Law
	  	62
		
	 Article 11. INDEMNIFICATION
	  	62
		
	 11.1 General; Stamp Taxes; Intangibles Tax
	  	62
		
	 11.2 Indemnification Relating to Hazardous Substances
	  	63
		
	 Article 12. EVENTS OF DEFAULT; RIGHTS AND REMEDIES
	  	64
		
	 12.1 Events of Default
	  	64
		
	 12.2 No Advance
	  	66
		
	 12.3 Rights and Remedies
	  	66

  

 xi 

			
	 12.4 Agreement Regarding, and Waiver of, Certain Rights
	  	66
		
	 Article 13. AGENCY AGREEMENT
	  	66
		
	 13.1 Funding of Syndication Interest
	  	66
		
	 13.2 Syndication Parties’ Obligations to Remit Funds
	  	67
		
	 13.3 Syndication Party’s Failure to Remit Funds
	  	67
		
	 13.4 Agency Appointment
	  	68
		
	 13.5 Power and Authority of the Administrative Agent
	  	68
		
	 13.5.1 Advice
	  	68
		
	 13.5.2 Documents; Intercreditor Agreement
	  	69
		
	 13.5.3 Proceedings
	  	69
		
	 13.5.4 Retain Professionals
	  	69
		
	 13.5.5 Incidental Powers
	  	69
		
	 13.5.6 Release of Certain Liens
	  	69
		
	 13.6 Duties of the Administrative Agent
	  	70
		
	 13.6.1 Possession of Documents
	  	70
		
	 13.6.2 Distribute Payments
	  	70
		
	 13.6.3 Loan Administration
	  	70
		
	 13.6.4 Action Upon Default
	  	70
		
	 13.6.5 Indemnification as Condition to Action
	  	71
		
	 13.6.6 Forwarding of Information
	  	71
		
	 13.7 Consent Required for Certain Actions.
	  	71
		
	 13.7.1 Unanimous
	  	71
		
	 13.7.2 Required Lenders
	  	72
		
	 13.7.3 Increase in Individual Commitment Amounts
	  	72
		
	 13.7.4 Action Without Vote
	  	72

  

 xii 

			
	 13.7.5 Vote of Participants
	  	72
		
	 13.8 Distribution of Principal and Interest
	  	72
		
	 13.9 Distribution of Certain Amounts
	  	73
		
	 13.9.1 Funding Losses
	  	73
		
	 13.9.2 Fees
	  	73
		
	 13.10 Possession of Loan Documents
	  	73
		
	 13.11 Collateral Application
	  	73
		
	 13.12 Amounts Required to be Returned
	  	73
		
	 13.13 Reports and Information to Syndication Parties
	  	74
		
	 13.14 Standard of Care
	  	74
		
	 13.15 No Trust Relationship
	  	75
		
	 13.16 Sharing of Costs and Expenses
	  	75
		
	 13.17 Syndication Parties’ Indemnification of the Administrative Agent
	  	75
		
	 13.18 Books and Records
	  	76
		
	 13.19 Administrative Agent Fee
	  	76
		
	 13.20 The Administrative Agent’s Resignation or Removal
	  	76
		
	 13.21 Representations and Warranties of All Parties
	  	76
		
	 13.22 Representations and Warranties of CoBank
	  	77
		
	 13.23 Syndication Parties’ Independent Credit Analysis
	  	77
		
	 13.24 No Joint Venture or Partnership
	  	78
		
	 13.25 Purchase for Own Account; Restrictions on Transfer; Participations
	  	78
		
	 13.26 Certain Participants’ Voting Rights
	  	79
		
	 13.27 Method of Making Payments
	  	79
		
	 13.28 Events of Syndication Default/Remedies
	  	79
		
	 13.28.1 Syndication Party Default
	  	79

  

 xiii 

			
	 13.28.2 Remedies
	  	80
		
	 13.29 Withholding Taxes
	  	80
		
	 13.30 Amendments Concerning Agency Function
	  	80
		
	 13.31 Reallocation of Outstanding Advances
	  	81
		
	 13.32 Further Assurances
	  	81
		
	 Article 14. MISCELLANEOUS
	  	81
		
	 14.1 Costs and Expenses
	  	81
		
	 14.2 Service of Process and Consent to Jurisdiction
	  	82
		
	 14.3 Jury Waiver
	  	82
		
	 14.4 Notices
	  	82
		
	 14.4.1 Borrower
	  	83
		
	 14.4.2 Administrative Agent
	  	83
		
	 14.4.3 Agriland
	  	83
		
	 14.4.4 Syndication Parties
	  	83
		
	 14.5 Liability of Administrative Agent and Co-Arrangers
	  	83
		
	 14.6 Successors and Assigns
	  	83
		
	 14.7 Severability
	  	84
		
	 14.8 Entire Agreement
	  	84
		
	 14.9 Applicable Law
	  	84
		
	 14.10 Captions
	  	84
		
	 14.11 Complete Agreement; Amendments
	  	84
		
	 14.12 Additional Costs of Maintaining Loan
	  	84
		
	 14.13 Capital Requirements
	  	85
		
	 14.14 Replacement Notes
	  	86
		
	 14.15 Mutual Release
	  	86

  

 xiv 

			
	 14.16 Liberal Construction
	  	86
		
	 14.17 Counterparts
	  	86
		
	 14.18 Confidentiality
	  	87
		
	 14.19 Limitation of Liability
	  	87
		
	 14.20 Departing Lenders; Payment; Transfer and Re-allocation
	  	88
		
	 14.21 Affect of Amended and Restated Credit Agreement
	  	89

  

 xv 

 EXHIBITS 
  

			
	 Exhibit 1.23
	  	Compliance Certificate
		
	 Exhibit 1.77
	  	Intercreditor Agreement Form
		
	 Exhibit 2.2
	  	Revolving Note Form
		
	 Exhibit 6.1
	  	Pledged Facilities
		
	 Exhibit 7.3
	  	Litigation
		
	 Exhibit 7.8
	  	Payment of Taxes
		
	 Exhibit 7.10
	  	Employee Benefit Plans, Borrower Pension Plans, Multiemployer Plans
		
	 Exhibit 7.11
	  	Equity Investments
		
	 Exhibit 7.14
	  	Environmental Compliance
		
	 Exhibit 7.16
	  	Material Agreements
		
	 Exhibit 7.21
	  	Labor Matters and Agreements
		
	 Exhibit 8.2
	  	Borrowing Notice Form
		
	 Exhibit 9.2.11
	  	Available Amount Report Form
		
	 Exhibit 9.18
	  	Additional Property
		
	 Exhibit 10.3
	  	Liens on Effective Date
		
	 Exhibit 10.8
	  	Investments
		
	 Exhibit 13.25
	  	Syndication Acquisition Agreement Form
		
	 Exhibit 13.27
	  	Wire Instructions
		
	 Exhibit 14.20
	  	Form of Endorsement
		
	 Schedule 1
	  	Syndication Parties and Individual Commitments
		
	 Schedule 2
	  	Departing Lenders

  

 xvi 

 2004 AMENDED AND RESTATED 
 CREDIT AGREEMENT 
 (CONVERTIBLE REVOLVING
LOAN) 
  
 Recitals

  
 A. COBANK, ACB as the Administrative, Documentation, and
Collateral Agent for the benefit of the present and future Syndication Parties, Lead Arranger and Book Manager, and as a Syndication Party, FARM CREDIT SERVICES OF AMERICA, FLCA, as Co-Arranger and as a Syndication Party, the Syndication Parties
identified on Schedule 1 thereto, and PILGRIM’S PRIDE CORPORATION, a corporation formed under the laws of the State of Delaware, entered into that certain Amended and Restated Credit Agreement (“2000 Credit Agreement”) dated as
of November 16, 2000 (“Original Effective Date”). 
  
 B. The parties to the 2000 Credit Agreement desire to make certain amendments to, but not to discharge any indebtedness or other obligations owing under, the 2000 Credit Agreement, as incorporated in this 2004 Amended and Restated Credit
Agreement. 
  
 Agreement 
  
 THIS 2004 AMENDED AND RESTATED CREDIT AGREEMENT (“Credit
Agreement”) is entered into as of the 7th day of April 2004 (“Effective Date”), by and between COBANK, ACB (“CoBank”) as the Administrative, Documentation, and Collateral Agent for the benefit of the
present and future Syndication Parties (in its capacity as Administrative Agent and Collateral Agent, the “Administrative Agent”), Lead Arranger and Book Manager, AGRILAND, FCS, as Co-Arranger (“Agriland”) and as a
Syndication Party, the Syndication Parties identified on Schedule 1 hereto, and PILGRIM’S PRIDE CORPORATION, a corporation formed under the laws of the State of Delaware, whose address is 110 South Texas Street, Pittsburg, Texas 75686
(“Borrower”), and amends, restates, and replaces in its entirety the 2000 Credit Agreement effective as of the Effective Date. 
  
 ARTICLE 1. DEFINED TERMS 
  
 As used in this Credit Agreement, the following terms shall have the meanings set forth below (and such meaning shall be equally applicable to both the
singular and plural form of the terms defined, as the context may require): 
  
 1.1 Administrative Agent Office: shall mean the address set forth at Subsection 14.4.2 hereof, as it may change from time to time by notice to all parties to this Credit Agreement. 
  
 1.2 Advance Date: a day (which shall be a Banking Day) on which an
Advance is made. 
  

 1 

 1.3 Aggregate Commitment: shall be $500,000,000.00, subject to reduction as provided in Sections
2.8 and 9.15 hereof. 
  
 1.4 Amendment Documents: this
Credit Agreement, each amendment to security agreement, each amendment to deed of trust, the amendment to guaranty, and any other documents executed on or as of the Effective Date in connection with this Credit Agreement. 
  
 1.5 Applicable Lending Office: means, for each Syndication Party and
for each type of Advance, the lending office of such Syndication Party designated as such for such type of Advance on its signature page hereof or in the applicable Syndication Acquisition Agreement or such other office of such Syndication Party as
such Syndication Party may from time to time specify to the Administrative Agent and Borrower as the office by which its Advances of such type are to be made and maintained. 
  
 1.6 Appraisal: A written appraisal report by an ARA or MAI certified appraiser with a General Certification from the
State in which the property being appraised is located, which report provides the appraiser’s opinion as to the market value of the property being appraised on the basis of (a) comparable sales and (b) replacement cost and reflecting an
appraisal done (i) no more than six (6) months prior to the date such Appraisal is delivered to the Administrative Agent, or, (ii) with respect to Appraisals provided in connection with Additional Property as provided in Section 9.18(b) hereof, done
no more than nine (9) months prior to the date such Appraisal is delivered to the Administrative Agent. 
  
 1.7 Appraised Value: the value of an asset included within the Collateral determined on the basis of the fair market value as set forth in the most
recent Appraisal. 
  
 1.8 Availability Period: shall mean
the period from the Closing Date until the Banking Day immediately prior to the fourth anniversary of the Effective Date. 
  
 1.9 Available Amount: the lesser of (a) the Aggregate Commitment; and (b) seventy-five percent (75%) of the Appraised Value (as shown on the latest
Available Amount Report pursuant to the latest Appraisal as provided pursuant to the 2000 Credit Agreement or this Credit Agreement, whichever is later) of the Collateral in which the Syndication Parties have a perfected first priority lien (without
considering the lien which secures, but after deducting from the Appraised Value the amount owing under, any Pari Passu Loan). 
  
 1.10 Bank Debt: all amounts owing under or on account of the Notes, Funding Losses and all interest, fees, expenses, charges and other amounts
payable by Borrower pursuant to the Loan Documents. 
  
 1.11
Banking Day: any day (a) other than a Saturday or Sunday and other than a day which is a Federal legal holiday or a legal holiday for banks in the States of Colorado or New York, and (b) if such day relates to a borrowing of, a payment or

  

 2 

 prepayment of principal of or interest on, a continuation of or conversion into, or a LIBO Rate Period for, a LIBO Rate
Loan, or a notice by Borrower with respect to any such borrowing, payment, prepayment, continuation, conversion, or LIBO Rate Period, on which dealings in U.S. Dollar deposits are carried out in the London interbank market. 
  
 1.12 Base Rate: a rate of interest per annum equal to the “prime
rate” as published from time to time in the Eastern Edition of the Wall Street Journal as the average prime lending rate for seventy-five percent (75%) of the United States’ thirty (30) largest commercial banks, or if the Wall Street
Journal shall cease publication or cease publishing the “prime rate” on a regular basis, such other regularly published average prime rate applicable to such commercial banks as is acceptable to the Administrative Agent in its reasonable
discretion, with such rate modified by adding the Base Rate Margin. 
  
 1.13 Borrower’s Account: means Borrower’s account # 3788148 at Harris Trust and Savings Bank (ABA #071000288). 
  
 1.14 Borrower Benefit Plan: means (a) any funded “employee welfare benefit plan,” as that term is defined in Section 3(1) of ERISA; (b)
any “multiemployer plans,” as defined in Section 3(37) of ERISA; (c) any “employee pension benefit plan” as defined in Section 3(2) of ERISA; (d) any “employee benefit plan”, as such term is defined in Section 3(3) of
ERISA; (e) any “multiple employer plan” within the meaning of Section 413 of the Code; (f) any “multiple employer welfare arrangement” within the meaning of Section 3(40) of ERISA; (g) a “voluntary employees’
beneficiary association” within the meaning of Section 501(c)(9) of the Code; (h) a “welfare benefit fund” within the meaning of Section 419 of the Code; or (i) any employee welfare benefit plan within the meaning of Section 3(1) of
ERISA for the benefit of retired or former employees, which is maintained by the Borrower or in which Borrower participates or to which Borrower is obligated to contribute, but excluding any such plan, arrangement, association or fund that is
maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens. 
  
 1.15 Capital Lease: means any lease of property (whether real, personal or mixed) by a Person, the discounted present value of the rental
obligations of such Person as lessee under such lease, in accordance with GAAP, is required to be capitalized on the balance sheet of such Person. 
  
 1.16 Capital Lease Obligation: the discounted present value of the rental obligation, under a Capital Lease. 
  
 1.17 Casualty Event: means a loss or taking caused by or resulting
from a fire, earthquake, explosion, wind, rain, or condemnation, or substantially similar occurrence. 
  
 1.18 Casualty Proceeds: the amount received on account of a Casualty Event from insurance, condemnation award, judgment, or settlement. 

 

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 1.19 Closing Date: that date on which the Administrative Agent, the Syndication Parties, and
Borrower have executed all Loan Documents to which they are parties and on which the conditions set forth in Section 8.1 of this Credit Agreement have been met, which shall be no later than April 30, 2004. 
  
 1.20 Code: means the Internal Revenue Code of 1986, as amended from
time to time. 
  
 1.21 Comerica Loan: that loan in the
current principal amount of not more than $30,000,000.00, pursuant to that certain Revolving Credit Agreement among Grupo Pilgrim’s Pride Funding S. de R.L. de C.V., Comerica Bank and Comerica Bank Mexico, S.A., dated as of September 7, 2001,
as it may be amended from time to time, and including any loan to refinance the principal owing under such loan so long as the amount of such refinance loan does not exceed $30,000,000.00 principal. 
  
 1.22 Committed Advances: the principal amount of all Advances which
any Syndication Party is obligated to make as a result of Borrower having presented a Borrowing Notice to the Administrative Agent as provided in Section 8.2 hereof, but which has not been funded. 
  
 1.23 Compliance Certificate: a certificate of the chief financial
officer of Borrower in the form attached hereto as Exhibit 1.23 and otherwise reasonably acceptable to the Administrative Agent. 
  
 1.24 Consolidated Current Assets: the total current assets of Borrower and its Subsidiaries as measured in accordance with GAAP. 
  
 1.25 Consolidated Current Liabilities: the total current liabilities
of Borrower and its Subsidiaries as measured in accordance with GAAP. 
  
 1.26 Consolidated Interest Expense: all interest expense of Borrower and its Consolidated Subsidiaries, as determined in accordance with GAAP. 
  

1.27 Consolidated Net Income: the net income of Borrower and all its Consolidated Subsidiaries, determined on a consolidated basis in accordance
with GAAP. 
  
 1.28 Consolidated Subsidiary: any Subsidiary
whose accounts are consolidated with those of Borrower in accordance with GAAP. 
  
 1.29 Current Assets: the current amount of assets of a Person which in accordance with GAAP may be properly classified as current assets after deducting adequate reserves where proper. 
  
 1.30 Current Liabilities: all items (including taxes accrued as
estimated) which in accordance with GAAP may be properly classified as current liabilities, and including in any event all amounts outstanding from time to time; provided that for the purposes of making the ratio calculations under Section 9.12
hereof, Current Liabilities 
  

 4 

 shall not include (a) indebtedness of Borrower related to the Protein IRB Bonds to the extent proceeds remain held in
trust and are not paid to Borrower pursuant to the terms of the bond documents pursuant to which the Protein IRB Bonds were issued, (b) indebtedness related to the Intercompany Bonds so long as Borrower or a Subsidiary of Borrower remains the holder
of such Intercompany Bonds, and (c) any indebtedness so long as the trustee in respect of such indebtedness holds cash and cash equivalents sufficient to repay the principal balance of such indebtedness, subject to the Administrative Agent’s
reasonable verification that such cash and cash equivalents are held by a trustee for the sole purpose of insuring such repayment. 
  
 1.31 Current Ratio: the ratio of Current Assets to Current Liabilities of Borrower and its Consolidated Subsidiaries. 
  
 1.32 Debt: means as to any Person, without duplication: (a)
indebtedness, obligations, or liability of such Person for borrowed money (including by the issuance of debt securities), or for the deferred purchase price of property or services (excluding trade obligations); (b) the aggregate of the principal
components of all Capital Leases and other agreements for the use, acquisition or retention of real or personal property which are required to be capitalized under GAAP; (c) to the extent drawn upon, obligations of such Person arising under
bankers’ or trade acceptance facilities, letters of credit, customer advances and other extensions of credit whether or not representing obligations for borrowed money; (d) all guarantees, endorsements and other contingent obligations of such
Person with respect to indebtedness arising from money borrowed by others; (e) all obligations secured by a lien on property owned by such Person, whether or not such Person has assumed or become liable for such obligations; and (f) all obligations
of such Person under any agreement providing for an interest rate swap, cap, cap and floor, contingent participation or other hedging mechanisms with respect to interest payable on any of the items described in this definition; provided that for the
purposes of making the ratio calculations under Section 9.12 hereof, Debt shall not include (a) indebtedness of Borrower related to the Protein IRB Bonds to the extent proceeds remain held in trust and are not paid to Borrower pursuant to the terms
of the bond documents pursuant to which the Protein IRB Bonds were issued, (b) indebtedness related to the Intercompany Bonds so long as Borrower or a Subsidiary of Borrower remains the holder of such Intercompany Bonds, and (c) any indebtedness so
long as the trustee in respect of such indebtedness holds cash and cash equivalents sufficient to repay the principal balance of such indebtedness, subject to the Administrative Agent’s reasonable verification that such cash and cash
equivalents are held by a trustee for the sole purpose of insuring such repayment. 
  
 1.33 Default Interest Rate: a rate of interest equal to 200 basis points in excess of the Base Rate which would otherwise be applicable on the Loans. 
  
 1.34 Departing Lender: any Person that, immediately prior to the
Closing Date, was party to the 2000 Credit Agreement as a “Syndication Party” thereunder but is not a Syndication Party under this Credit Agreement, and is identified as a “Departing Lender” on Schedule 2 hereto.

  

 5 

 1.35 Depreciation: the total depreciation of Borrower and its Consolidated Subsidiaries as
measured in accordance with GAAP. 
  
 1.36 EBITDA: for any
period, for Borrower and its Consolidated Subsidiaries, net income for such period, plus the sum of the amounts of (a) Interest Expense, plus (b) federal and state income taxes, plus (c) depreciation and amortization expenses, plus (d) extraordinary
losses, minus (e) extraordinary gains, in each case as charged against (or added to, as the case may be) revenues to arrive at net income for such period, all as determined by GAAP. 
  
 1.37 Environmental Laws: any federal, state, or local law, statute, ordinance, rule, regulation, administration
order, or permit now in effect or hereinafter enacted, pertaining to the public health, safety, industrial hygiene, or the environmental conditions on, under or about the Collateral, including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 as amended, 42 U.S.C. 9601-9657 (“CERCLA”) and the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901-6987 (“RCRA”). 
  
 1.38 ERISA: the Employee Retirement Income Security Act of 1974, as
amended, and the regulations thereunder. 
  
 1.39 ERISA
Affiliate: means any corporation or trade or business which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as Borrower or is under common control (within the meaning of Section 414(c)
of the Code) with Borrower, provided, however, that for purposes of provisions herein concerning minimum funding obligations (imposed under Section 412 of the Code or Section 302 of ERISA), the term “ERISA Affiliate” shall also include any
entity required to be aggregated with Borrower under Section 414(m) or 414(o) of the Code. 
  
 1.40 Farm Credit System Institution: shall mean any Farm Credit Bank, any Federal land bank association, any production credit association, the banks for cooperatives, and such other institutions as may be a
part of the Farm Credit System and chartered by and subject to regulation by the Farm Credit Administration. 
  
 1.41 Financial Projections: Financial projections of the operations of Borrower and its Subsidiaries as provided to the Administrative Agent on
February 24, 2004. 
  
 1.42 Fiscal Quarter: each of the
four (4) quarter accounting periods of thirteen (13) or fourteen (14) weeks of Borrower that together comprise a Fiscal Year. 
  
 1.43 Fiscal Year: the 52 or 53 week period (a) ending on the Saturday closest to September 30 in each calendar year, regardless of whether such
Saturday occurs in September or October of any calendar year and (b) beginning on the day immediately following the end of the preceding Fiscal Year. 
  
 1.44 Fixed Charge Coverage Ratio: the ratio of (a) the sum of EBITDA and all amounts payable under all non-cancelable Operating Leases (determined
on a 
  

 6 

 consolidated basis in accordance with GAAP) for the period in question, to (b) the sum of (without duplication) (i)
Interest Expense for such period, (ii) the sum of the scheduled current maturities (determined on a consolidated basis in accordance with GAAP) of Debt during the period in question, (iii) all amounts payable under non-cancelable Operating Leases
(determined as aforesaid) during such period, and (iv) all amounts payable with respect to Capital Leases (determined on a consolidated basis in accordance with GAAP) for the period in question. 
  
 1.45 Foreign Subsidiary Debt. Debt of a non-U.S. Subsidiary of
Borrower in an aggregate principal amount not to exceed seventy-five percent (75.0%) of such Subsidiary’s working capital. 
  
 1.46 Funding Share: shall mean the amount of any Advance which each Syndication Party is required to fund, which shall be the amount of such
Advance multiplied by such Syndication Party’s Individual Pro Rata Share as of, but without giving effect to, such Advance. 
  
 1.47 GAAP: generally accepted accounting principles in the United States of America, applied consistently, as in effect from time to time.

  
 1.48 Good Faith Contest: means the contest of an item
if (a) the item is diligently contested in good faith by appropriate proceedings timely instituted, (b) either the item is (i) bonded or (ii) adequate reserves are established with respect to the contested item if and to the extent reasonably
satisfactory to the Required Lenders, and (c) during the period of such contest, the enforcement of any contested item is effectively stayed. 
  
 1.49 Governmental Authority: means any nation or government, any state or other political subdivision thereof, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 1.50 Grower Settlement Agreements: means those certain promissory notes dated October 22, 1987 payable to the order of each of (a) Earl B. Lott, (b) Thomas David Mott, (c) Perry L. Stricklin, and (d) Irone
Sumblin. 
  
 1.51 Hancock Loan: shall mean the loan to
Borrower from John Hancock Mutual Life Insurance Company, ING Capital LLC and other lenders in the maximum principal amount of $185,000,000.00 made pursuant to that certain Fourth Amended and Restated Note Purchase Agreement dated as of November 18,
2003, as it may be amended from time to time (provided that the principal amount owing does not exceed $185,000,000.00) and the notes issued thereunder and providing a maturity date for said notes of December 15, 2013 or earlier. 
  
 1.52 Harris Loan: the loans, letters of credit and reimbursement
obligations relating to letters of credit in the current principal amount of not more than $175,239,727.00 to Borrower from Harris Trust and Savings Bank (individually and as Agent), and a group of lenders arranged by Harris Trust and Savings Bank,
and their respective successors and assigns, pursuant to that certain Third Amended and Restated 
  

 7 

 Secured Credit Agreement dated as of April     , 2004, as it may be amended from time
to time (provided that the principal amount owing thereunder does not exceed $175,239,727.00). 
  
 1.53 Hazardous Substances: dangerous, toxic or hazardous pollutants, contaminants, chemicals, wastes, materials or substances, as defined in or governed by the provisions of any Environmental Laws or any other
federal, state or local law, statute, code, ordinance, regulation, requirement or rule relating thereto (“Environmental Regulations”), and also including urea formaldehyde, polychlorinated biphenyls, asbestos, asbestos-containing
materials, nuclear fuel or waste, and petroleum products, or any other waste, material, substances, pollutant or contaminant which would subject an owner of property to any damages, penalties or liabilities under any applicable Environmental
Regulations. 
  
 1.54 Individual Commitment: shall mean
with respect to any Syndication Party the amount shown as its Individual Commitment on Schedule 1 hereto, subject to adjustment in the event of the sale of all or a portion of a Syndication Interest in accordance with Section 13.27 hereof, or
a reduction in the Aggregate Commitment in accordance with Sections 2.8 or 9.15 hereof. 
  
 1.55 Individual Lending Capacity: shall mean with respect to any Syndication Party the amount at any time of its Individual Commitment, less its Individual Outstanding Obligations. 
  
 1.56 Individual Outstanding Obligations: shall mean with respect to
any Syndication Party the total at any time, without duplication, of (a) the aggregate outstanding principal amount of all Advances made by such Syndication Party (after giving effect to the Reallocation); and (b) all of such Syndication
Party’s Committed Advances. 
  
 1.57 Individual Pro Rata
Share: shall mean with respect to any Syndication Party a fraction, expressed as a percentage (rounded to 8 decimal points), where the numerator is such Syndication Party’s Individual Commitment; and the denominator is the Aggregate
Commitment, determined (a) in the case of LIBO Rate Loans, at 12:00 noon (Central time) on the Banking Day Borrower delivers a Borrowing Notice pursuant to which Borrower requests such LIBO Rate Loan, and (b) in all other cases, 12:00 noon (Central
time) on the Banking Day Borrower delivers a Borrowing Notice. 
  
 1.58 Intangible Asset: means, license agreements, trademarks, trade names, patents, capitalized research and development, proprietary products (the results of past research and development treated as long term assets and excluded
from inventory) and goodwill (all determined on a consolidated basis in accordance with GAAP. 
  
 1.59 Intercompany Bond: means an Investment by Borrower or a Subsidiary in, and Debt of the Borrower or another Subsidiary incurred in connection with, bonds, notes, debentures or similar instruments issued by
any federal, state or local government of the United States or any state, territory, municipality, regulatory or 
  

 8 

 administrative authority or instrumentality or agency thereof in which such bonds, notes, debentures or instruments are
fully secured as to payment of both principal and interest by a requisition, loan, lease or similar payment agreement with the Borrower or a Subsidiary. 
  
 1.60 Interest Expense: means all interest charges during such period, including all amortization of debt discount expense and imputed interest with
respect to Capital Lease obligations, determined on a consolidated basis in accordance with GAAP. 
  
 1.61 Investment: means, with respect to any Person, (a) any loan or advance by such Person to any other Person, (b) the purchase or other
acquisition by such Person of any capital stock, obligations or securities of, or any capital contribution to, or investment in, or the acquisition by such Person of all or substantially all of the assets of, or any interest in, any other Person,
(c) any performance or standby letter of credit where (i) that Person has the reimbursement obligation to the issuer, and (ii) the proceeds of such letter of credit are to be used for the benefit of any other Person, (d) the agreement by such Person
to make funds available for the benefit of another Person to either cover cost overruns incurred in connection with the construction of a project or facility, or to fund a debt service reserve account, (e) the agreement by such Person to assume,
guarantee, endorse or otherwise be or become directly or contingently responsible or liable for the obligations or Debts of any other Person (other than by endorsement for collection in the ordinary course of business), (f) an agreement to purchase
any obligations, stocks, assets, goods or services but excluding an agreement to purchase any assets, goods or services entered into in the ordinary course of business, (g) an agreement to supply or advance any funds, assets, goods or services
entered into outside the ordinary course of business, or (h) an agreement to maintain or cause such Person to maintain a minimum working capital or net worth or otherwise to assure the creditors of any Person against loss. 
  
 1.62 Leverage Ratio: the ratio for Borrower and its Consolidated
Subsidiaries of (a) the aggregate outstanding principal amount of all Debt; less unrestricted cash and cash equivalents, to (b) the sum of aggregate outstanding principal amount of all Debt included in clause (a) above;
less unrestricted cash and cash equivalents plus Net Worth. 
  
 1.63 LIBO Rate: means (a) the rate quoted by the British Bankers’ Association at 11:00 A.M. London Time on the day which is two (2) Banking Days prior to the first day of each LIBO Rate Period for the
offering of U.S. dollar deposits in the London interbank market for the LIBO Rate Period selected by Borrower as published by Bloomberg or another major information vendor listed on the British Banker’s Association’s official website
(rounded upward to the nearest thousandth); (b) divided by a percentage equal to 100% minus the stated maximum rate of all reserve requirements (including, without limitation, any marginal, emergency, supplemental, special or
other reserves) applicable on such date to any member bank of the Federal Reserve System in respect of “Eurocurrency liabilities” as defined in Regulation D (or any successor category of liabilities under Regulation D); plus (c) the
LIBOR Margin. 
  

 9 

 1.64 Lien: means with respect to any asset any mortgage, deed of trust, pledge, security interest,
hypothecation, assignment for security purposes, encumbrance, lien (statutory or other), or other security agreement or charge, or encumbrance of any kind or nature whatsoever (including, without limitation, any conditional sale, Capital Lease or
other title retention agreement related to such asset). 
  
 1.65 Loans: shall mean, collectively, all Base Rate Loans and all LIBO Rate Loans outstanding at any time. 
  
 1.66 Loan Documents: this Credit Agreement, the other Amendment Documents, the Notes and the Security Documents. 
  
 1.67 Material Adverse Effect: means: (a) a material adverse effect on
the financial condition, results of operation, business or property of Borrower and the Subsidiaries, considered in the aggregate; or (b) a material adverse effect on the ability of Borrower to perform its obligations under this Credit Agreement and
the other Loan Documents. 
  
 1.68 Material Agreements: all
agreements of a Person, the termination or breach of which, based upon the knowledge of such Person (or such other Person as may be specifically designated herein) as of the date of making any representation with respect thereto, would have a
Material Adverse Effect. 
  
 1.69 Maturity Date: August 31,
2011. 
  
 1.70 Multiemployer Plan: means a Plan defined as
such in Section 3(37) of ERISA. 
  
 1.71 Net Tangible
Assets: the excess of the value of total assets (as determined in accordance with GAAP) over the value of Intangible Assets of the Borrower and its Consolidated Subsidiaries. 
  
 1.72 Net Working Capital: the excess for the Borrower and its Consolidated Subsidiaries of Current Assets over
Current Liabilities. 
  
 1.73 Net Worth: the total assets
(as determined in accordance with GAAP) minus the Total Liabilities of the Borrower and its Consolidated Subsidiaries, all determined on a consolidated basis as in accordance with GAAP. 
  
 1.74 Note or Notes: the Revolving Notes executed by Borrower pursuant to Section 2.2 hereof, and all amendments,
renewals, substitutions and extensions thereof. 
  
 1.75
Operating Lease: means any lease of property (whether real, personal or mixed) for a period of longer than one year by a Person under which such Person is lessee, other than a Capital Lease. 
  
 1.76 Organizational Documents: in the case of a corporation, its
articles or certificate of incorporation and bylaws; in the case of a partnership, its partnership 
  

 10 

 agreement and certificate of limited partnership, if applicable; in the case of a limited liability company, its articles
of organization and its operating agreement, limited liability company agreement or regulations. 
  
 1.77 Pari Passu Loan: shall mean a loan which meets all of the following requirements: (a) the proceeds are all made available to Borrower; (b) it
is secured by all or a portion of the Collateral equally and ratably with the Bank Debt on the same lien priority basis; (c) the lender thereunder has executed an intercreditor agreement in form and substance substantially identical to Exhibit
1.77 hereto (“Intercreditor Agreement”); (d) Borrower has furnished to the Administrative Agent a pro-forma Available Amount Report with such updated Appraisals as the Administrative Agent may reasonably require at, or no more
than ten (10) days prior to, the date the Administrative Agent is requested to execute such intercreditor agreement; provided that no updated Appraisals will be required so long as (i) the aggregate outstanding principal balance of all Pari Passu
Loans (including the proposed Pari Passu Loan) incurred since the last Appraisal does not exceed $25,000,000.00 and (ii) the Leverage Ratio is not greater than fifty five percent (55%); and (e) Borrower demonstrates to the Administrative Agent, in
each case on a pro-forma basis (including, in each case, the proposed Pari Passu Loan), (i) that the aggregate outstanding principal amounts owing under all Revolving Notes will not exceed the Available Amount as determined pursuant to clause (b) of
Section 1.15 hereof (without regard to clause (a) of such Section), and (ii) compliance with the financial covenants. 
  
 1.78 Permanent Reduction of Production: means the removal, shut down, or disassembly of a facility’s processing equipment, or other action by
Borrower which, in any such case, has the effect of reducing the production capacity of such facility to a level that is less than seventy-five percent (75%) of the production capacity as shown in the Appraisal used to support the Appraised Value of
such facility for the purposes of determining Borrower’s Available Amount for a period of ninety (90) consecutive days unless (a) within such period Borrower provides to the Administrative Agent a written plan to bring the facility up to its
former production capacity within twelve (12) months of Borrower taking such action resulting in a reduction of production capacity; and (b) the facility in fact resumes production at the former capacity within such twelve (12) month period.

  
 1.79 Person: any individual, sole proprietorship,
partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, cooperative association, institution, or government or governmental agency (whether national, federal, state, provincial, county,
city, municipal or otherwise, including without limitation, any instrumentality, division, agency, body or department thereof), or other entity. 
  
 1.80 Pilgrim Family: means (a) 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 or (b) Pilgrim Ltd. 
  

 11 

 1.81 Plan: means any plan, agreement, arrangement or commitment which is an employee benefit plan,
as defined in Section 3(3) of ERISA, maintained by Borrower or any Subsidiary or any ERISA Affiliate or with respect to which Borrower or any Subsidiary or any ERISA Affiliate at any relevant time has any liability or obligation to contribute, but
excluding any such plan, arrangement, association or fund that is maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens. 
  
 1.82 Potential Default: any event, other than an event described in
Section 12.1(a) hereof, which with the giving of notice or lapse of time, or both, would become an Event of Default. 
  
 1.83 Prohibited Transaction: means any transaction prohibited under Section 406 of ERISA or Section 4975 of the Code. 
  
 1.84 Protein IRB Bonds: means the $25,000,000 aggregate principal
amount of the Issuer’s Environmental Facilities Reserve Bonds (Pilgrim’s Pride Corporation Project), Series 1999 issued by Camp County Industrial Development Corporation, a nonstock, nonprofit industrial development corporation existing
under the laws of the State of Texas. 
  
 1.85 Receivables
Securitization Program: shall mean any receivables securitization program to which Borrower or a Subsidiary is a party which provides for the sale by Borrower or such Subsidiary, without recourse, of their receivables for a cash consideration,
and including in any event the receivables securitization program pursuant to which Borrower will sell to Pilgrim’s Pride Funding Corporation all or substantially all of Borrower’s receivables and Pilgrim’s Pride Funding Corporation
will in turn sell an undivided interest in all of such receivables to Fairway Finance Company, LLC, and its successors or assigns. 
  
 1.86 Reportable Event: means any of the events set forth in Section 4043(b) of ERISA or in the regulations thereunder. 
  
 1.87 Required Lenders: shall mean Syndication Parties whose Individual
Commitments constitute fifty-one percent (51%) of the Aggregate Commitment. Pursuant to Section 13.26 hereof, Voting Participants shall, under the circumstances set forth therein, be entitled to voting rights and to be included in determining
whether certain action is being taken by the Required Lenders. 
  
 1.88 Revolving Loan: shall mean the loan facility made available to Borrower under Article 2 of this Credit Agreement and shall include the Converted Loans. 
  
 1.89 Security Documents: the security agreements, mortgages, deeds of trust, leasehold mortgages or deeds of trust,
financing statements, pledge agreements, leasehold assignment and consents, and/or other documents executed by Borrower in favor of the Administrative Agent, on behalf and for the benefit of the Syndication Parties, to secure Borrower’s
performance of its obligations under the Notes and other Loan Documents with a lien on the Collateral, all in form and substance acceptable to the Administrative Agent. 
  

 12 

 1.90 Senior Subordinated Notes: means (a) Borrower’s existing 9 1/4% Senior Subordinated Notes due 2013 in an aggregate amount equal to $100,000,000.00; and (b) additional notes with
substantially the same terms as the 9 1/4% Senior Subordinated Notes due 2013 of Borrower that may be issued
after the Effective Date in an aggregate amount not to exceed $100,000,000.00. 
  
 1.91 Senior Unsecured Notes: means (a) Borrower’s existing 9 5/8%
Senior Unsecured Notes due 2011 in an aggregate amount equal to $303,500,000.00 and (b) additional notes in an aggregate amount not to exceed $100,000,000.00 with substantially the same terms as the 9 5/8% Senior Unsecured Notes due 2011 issued by Borrower that may, in either case (a) or (b), be issued after the Closing Date. 
  
 1.92 Subsidiary: means with respect to any Person: (a) any corporation
in which such Person, directly or indirectly, (i) owns more than fifty percent (50%) of the outstanding stock thereof, or (ii) has the power under ordinary circumstances to elect at least a majority of the directors thereof (measured by voting power
rather than number of shares), or (b) any partnership, association, joint venture, limited liability company, or other unincorporated organization or entity with respect to which such Person, directly or indirectly, (i) owns more than fifty percent
(50%) of the outstanding equity interest thereof, or (ii) has the power under ordinary circumstances to directly or indirectly elect or appoint a majority of the directors or equivalent governing body thereof; provided however (c) the cooperative
association known as Food Processors Water Cooperative, Inc. shall not be deemed to be a Subsidiary. 
  
 1.93 Successor Agent: such Person as may be appointed as successor to the rights and duties of the Administrative Agent as provided in Section
13.20 of this Credit Agreement. 
  
 1.94 Syndication
Parties: shall mean those entities listed on Schedule 1 hereto, and such Persons as shall from time to time execute a Syndication Acquisition Agreement substantially in the form of Exhibit 13.25 hereto signifying their election to
purchase all or a portion of the Syndication Interest of any Syndication Party, in accordance with Section 13.25 hereof, and to become a Syndication Party hereunder. 
  
 1.95 Tangible Net Worth: the Net Worth minus the amount of all Intangible Assets of the Borrower and its Consolidated
Subsidiaries, determined on a consolidated basis in accordance with GAAP. 
  
 1.96 Title Insurer: means the insurer under the Title Policies. 
  
 1.97 Title Policy: means the mortgagees’ title insurance policies delivered by Borrower pursuant to the terms of this Credit Agreement and the
2000 Credit Agreement (and any predecessor) with respect to all real property of Borrower included in the Collateral in which Borrower has (a) a fee interest or (b) a leasehold interest calling for a rental payment equal to or in excess of
$100,000.00 per annum. 
  

 13 

 1.98 Total Liabilities: at any date, the aggregate amount of all liabilities of the Borrower and
its Consolidated Subsidiaries determined on a consolidated basis in accordance with GAAP; provided that for the purposes of making the ratio calculations under Section 9.12 hereof, Total Liabilities shall not include (a) indebtedness related to the
Protein IRB Bonds to the extent proceeds remain held in trust and are not paid to Borrower pursuant to the terms of the bond documents pursuant to which the Protein IRB Bonds were issued, (b) indebtedness related to the Intercompany Bonds so long as
Borrower or a Subsidiary of Borrower remains the holder of such Intercompany Bonds, and (c) any indebtedness so long as the trustee in respect of such indebtedness holds cash and cash equivalents sufficient to repay the principal balance of such
indebtedness, subject to the Administrative Agent’s reasonable verification that such cash and cash equivalents are held by a trustee for the sole purpose of insuring such repayment. 
  
 The following terms are defined in portions of this Credit Agreement other than Article 1: 
  

			
	Additional Costs	  	Section 14.12
	Administrative Agent	  	Introductory Agreement paragraph
	Advance	  	Section 2.1
	Advance Payment	  	Section 13.1
	Affected Loans	  	Section 8.6
	Anti-Terrorism Laws	  	Subsection 7.26.1
	Additional Property	  	Section 9.18
	Authorized Officer	  	Subsection 8.1.8
	Available Amount Report Deadline	  	Subsection 9.2.11
	Available Amount Report	  	Subsection 9.2.11
	Bank Equity Interests	  	Section 5.1
	Balloon Payment	  	Subsection 4.1.2
	Base Rate Loans	  	Subsection 3.1.1
	Base Rate Margin	  	Subsection 3.6.1
	Borrower	  	Introductory Agreement paragraph
	Borrower Pension Plan	  	Subsection 7.10.2
	Borrowing Notice	  	Section 8.2
	CERCLA	  	Section 1.46
	Change in Law	  	Subsection 3.2.2
	CoBank	  	Introductory Agreement paragraph
	COBRA	  	Subsection 7.10.12
	Collateral	  	Section 6.1
	Commitment Fee	  	Subsection 3.5.1
	Commitment Fee Factor	  	Subsection 3.6.1
	Commitment Letter	  	Subsection 8.1.7
	Contributing Syndication Parties	  	Section 13.3
	Conversion Amount	  	Subsection 4.1.1
	Conversion Date	  	Subsections 4.1.1
	Converted Loan	  	Subsection 4.1.1
	Credit Agreement	  	Introductory Agreement paragraph
	Delinquency Interest	  	Section 13.3

  

 14 

			
	Delinquent Amount	  	Section 13.3
	Delinquent Syndication Party	  	Section 13.3
	Effective Date	  	Introductory Agreement paragraph
	Embargoed Person	  	Section 9.16
	Environmental Regulations	  	Section 1.60
	Event of Default	  	Section 14.1
	Event of Syndication Default	  	Subsection 13.28.1
	Executive Order	  	Subsection 7.26.1
	Farm Credit Law	  	Section 12.4
	Fee Letter	  	Subsection 8.1.7
	Funding Losses	  	Section 4.8
	Funding Loss Notice	  	Section 4.8
	Funding Notice	  	Section 8.2
	Indemnified Agency Parties	  	Section 13.17
	Indemnified Parties	  	Section 11.1
	Intercreditor Agreement	  	Section 1.90
	IRS	  	Subsection 7.10.2
	LIBO Rate Loan	  	Subsection 3.1.2
	LIBO Rate Period	  	Subsection 3.1.2
	LIBO Request	  	Subsection 3.1.2
	LIBOR Margin	  	Subsection 3.6.1
	Licensing Laws	  	Section 7.4
	Mandatory Prepayments	  	Section 4.4
	Margin Report Deadline	  	Subsection 3.6.2
	Margins	  	Subsection 3.6.1
	Mortgage	  	Section 9.14
	OFAC	  	Section 9.16
	Original Effective Date	  	Recital A
	Other Lists	  	Section 9.16
	Payment Account	  	Section 13.8
	Payment Distribution	  	Section 13.8
	Permitted Encumbrances	  	Section 10.3
	Pilgrim Ltd	  	Section 6.2
	Pilgrim Guaranty	  	Section 6.2
	Pricing Level	  	Subsection 3.6.1
	Pro Rata Amount	  	Section 4.4
	RCRA	  	Section 1.46
	Reallocation	  	Section 13.31
	Reduction	  	Section 13.31
	Regulatory Change	  	Subsection 14.12
	Required Licenses	  	Section 7.9
	Revolving Note(s)	  	Section 2.2
	Scheduled Payments	  	Subsection 4.1.2
	Scheduled Payment Amount	  	Subsection 4.1.2
	SDN List	  	Section 9.16
	Shut Down	  	Section 9.15

  

 15 

			
	Successor Agent	  	Section 13.20
	Syndication Acquisition Agreement	  	Section 13.25
	Syndication Interest	  	Section 13.1
	Syndication Party Advance Date	  	Section 13.2
	Transfer	  	Section 13.25
	2000 Credit Agreement	  	Recital A
	Voluntary Prepayments	  	Section 4.3
	Voting Participant	  	Section 13.26
	Voting Participant Notification	  	Section 13.26
	Wire Instructions	  	Section 13.27

  
 ARTICLE 2. REVOLVING LOAN

  
 2.1 Revolving Loan. On the terms and conditions
set forth in this Credit Agreement, and so long as no Event of Default or Potential Default has occurred and is continuing, Borrower may, during the Availability Period, request an advance under the Revolving Loan (“Advance”), and
each of the Syndication Parties severally agrees, to fund its Individual Pro Rata Share of each Advance from time to time during the Availability Period, subject to the following: 
  
 2.1.1 Individual Syndication Party Commitment. No Syndication Party shall be required or permitted to fund Advances
in an amount which would exceed its Individual Lending Capacity as in effect at the time of the Administrative Agent’s receipt of the Borrowing Notice requesting such Advance. 
  
 2.1.2 Individual Syndication Party Pro Rata Share. No Syndication Party shall be required or permitted to fund
Advances in excess of an amount equal to its Individual Pro Rata Share multiplied by the amount of the requested Advance. 
  
 2.1.3 Aggregate Commitment; Available Amount. Borrower shall not be entitled to request an Advance in an amount which: (a) when added to the
aggregate Individual Outstanding Obligations of all Syndication Parties, would exceed the Aggregate Commitment; or (b) when added to the aggregate Individual Outstanding Obligations of all Syndication Parties, would exceed the Available Amount.

  
 2.2 Revolving Promissory Notes. Borrower’s
obligations to each Syndication Party under the Revolving Loan, including Borrower’s payment obligations with respect to all Advances made by each Syndication Party shall (a) be evidenced by, and bear interest in accordance with, a single
promissory note of Borrower in substantially the form of Exhibit 2.2 hereto duly completed, in the stated maximum principal amount equal to such Syndication Party’s Individual Commitment, payable to such Syndication Party for the account
of its Applicable Lending Office, and maturing as to principal on the Maturity Date (each a “Revolving Note” and collectively, the “Revolving Notes”); and (b) repaid in accordance with Article 4 hereof and such
Revolving Note. 
  
 2.3 Advances Under 2000 Credit
Agreement. The aggregate principal amount owing on the Closing Date under the 2000 Credit Agreement on account of 7 Year 
  

 16 

 Advances and 10 Year Advances (as such terms are defined in the 2000 Credit Agreement) shall be treated as an Advance
hereunder made on the Closing Date and each of the Syndication Parties severally agrees to fund its Individual Pro Rata Share of such Advance. Such Advance will be allocated as provided in Section 13.31 hereof and/or distributed as provided in
Section 14.20 hereof, as applicable. 
  
 2.4 Syndication Party
Records. Each Syndication Party shall record on its books and records the amount of each Advance, the rate and interest period applicable thereto, all payments of principal and interest, and the principal balance from time to time outstanding.
The Syndication Party’s record thereof shall be prima facie evidence as to all such amounts and shall be binding on Borrower absent manifest error. Notwithstanding the foregoing, Borrower will never be required to pay as principal more than the
principal amount of the Loans made by the Syndication Parties. 
  
 2.5 Use of Proceeds. The proceeds of the Revolving Loan will be used by Borrower: (a) to fund expansion of Borrower’s production and processing facilities, for future acquisitions; (b) as provided in Section 2.3 hereof; and (c)
for general corporate purposes of Borrower, and Borrower agrees not to request or use such proceeds for any other purpose. Borrower will not, directly or indirectly, use any part of such proceeds for the purpose of purchasing or carrying any margin
stock within the meaning of Regulation U of the Board of Governors or to extend credit to any Person for the purpose of purchasing or carrying any such margin stock. 
  
 2.6 Advances; Funding. Borrower may request, and the Syndication Parties shall fund, Advances in the manner and
within the time deadlines as provided in Section 8.2 hereof. 
  
 2.7 Syndication Party Funding Failure. The failure of any Syndication Party to remit its Funding Share of any requested Advance on the date specified for such Advance shall not relieve any other Syndication Party of its obligation
(if any) to make any Advance on such date, but no Syndication Party shall be responsible for the failure of any other Syndication Party to make any Advance to be made by such other Syndication Party. 
  
 2.8 Reduction of Aggregate Commitment. Borrower may, by written notice
to the Administrative Agent on or before 10:00 A.M. (Central time) on any Banking Day, irrevocably reduce the Aggregate Commitment; provided that (a) such reduction must be in minimum amounts of one million dollars ($1,000,000.00) and incremental
multiples of $500,000.00 (or, if Borrower elects to proceed under clause (y) of this Section, the amount of the Individual Commitment of such affected Syndication Party or Parties); and (b) Borrower must simultaneously make any principal payment
necessary (along with any applicable Funding Losses on account of such principal payment) so that (i) the principal amount outstanding under the Revolving Loan does not exceed the reduced Aggregate Commitment on the date of such reduction, and (ii)
the Individual Outstanding Obligations owing to any Syndication Party do not exceed the Individual Commitment of that Syndication Party (after reduction thereof in accordance with the following sentence). Upon the reduction of the Aggregate

  

 17 

 Commitment as provided in the preceding sentence, either (x) the Individual Commitment of each Syndication Party shall be
reduced in the same proportion as the Individual Commitment of such Syndication Party bears to the Aggregate Commitment before such reduction; or (y) upon the delivery by Borrower to the Administrative Agent of a written election of Borrower, which
election shall be irrevocable, to allocate the reduction of the Aggregate Commitment pursuant to this Section 2.8 to any one or more (but fewer than all) of the Syndication Parties, and upon written approval thereof by the Administrative Agent and
the Required Lenders, the reduction of Aggregate Commitment shall be allocated to the Syndication Party or Parties so designated by Borrower provided that such reduction is sufficient to reduce the Individual Commitment of each such designated
Syndication Party to zero. In the event Borrower elects to proceed as provided in clause (y) above (and such election is approved in writing by the Administrative Agent and the Required Lenders), then (i) Borrower agrees to pay to each such
designated Syndication Party all principal, accrued interest, and Funding Losses owing to such Syndication Party as of the date of, and on account of, such payment, and (ii) each such designated Syndication Party agrees to reduce its Individual
Commitment to zero upon receipt of such payment and to return its Revolving Note to the Administrative Agent. 
  
 ARTICLE 3. INTEREST AND FEES 
  
 3.1 Interest. Interest on all Loans shall be calculated as follows: 
  
 3.1.1 Base Rate Option. Unless Borrower requests and receives a LIBO Rate Loan pursuant to Subsection 3.1.2 hereof, the outstanding principal balance under the Revolving Notes shall bear interest at the Base
Rate (each a “Base Rate Loan”). Each request for an Advance to bear interest at the Base Rate must request an Advance in a minimum of $1,000,000.00 and in incremental multiples of $500,000.00. 
  
 3.1.2 LIBO Rate Option. From time to time, and so long as no Event of
Default has occurred and is continuing, at the request of Borrower included in a Borrowing Notice, all or any part of the outstanding principal balance under the Revolving Notes may bear interest at the LIBO Rate (each a “LIBO Rate
Loan”); provided that Borrower may have no more than ten (10) LIBO Rate Loans outstanding at any time. To effect this option, the Borrowing Notice must specify (a) the principal amount that is to bear interest at the LIBO Rate, which must
be a minimum of $1,000,000.00 and in incremental multiples of $500,000.00 and (b) the period selected by Borrower during which the LIBO Rate is to be applied (“LIBO Rate Period”), which may be any period of one, two, three, or six
months, provided that LIBO Rate Periods must mature no later than the Maturity Date. In addition, for the purposes of determining a LIBO Rate Period, a month means a period starting on one day in a calendar month and ending on a numerically
corresponding day in the next calendar month; provided that if there is no numerically corresponding day in the month in which a LIBO Rate Period is to end, or if a LIBO Rate Period begins on the last day of a calendar month, then such LIBO Rate
Period shall end on the last Banking Day of the calendar month in which such LIBO Rate Period is to end. Borrower may convert any Base Rate Loan to a LIBO Rate Loan, or continue a LIBO Rate Loan, by making a 
  

 18 

 written request therefore (“LIBO Request”) to the Administrative Agent by facsimile, specifying (y) the
principal amount that is to bear interest at the LIBO Rate, which must be a minimum of $1,000,000.00 and in incremental multiples of $500,000.00 and (z) the LIBO Rate Period selected by Borrower during which the LIBO Rate is to be applied. The
Administrative Agent shall incur no liability in acting upon a request which it believed in good faith had been made by a properly authorized officer of Borrower. Following the expiration of the LIBO Rate Period for any LIBO Rate Loan, interest
shall automatically accrue at the Base Rate unless Borrower requests and receives another LIBO Rate Loan as provided in this Subsection. 
  
 3.2 Additional Provisions for LIBO Rate Loans. 
  
 3.2.1 Inapplicability or Unavailability of LIBO Rate. If the Administrative Agent at any time shall reasonably determine that for any reason
adequate and reasonable means do not exist for ascertaining the LIBO Rate, then the Administrative Agent shall promptly give notice thereof to Borrower. If such notice is given and until such notice has been withdrawn by the Administrative Agent,
then any portion of the outstanding principal balance hereof which bears interest determined in relation to the LIBO Rate shall, subsequent to the end of the LIBO Rate Period applicable thereto, bear interest at the Base Rate. 
  
 3.2.2 Change in Law; LIBO Rate Loan Unlawful. If any law, treaty,
rule, regulation or determination of a court or governmental authority or any change therein or in the interpretation or application thereof (each, a “Change in Law”) shall make it unlawful for any of the Syndication Parties to (a)
advance its Funding Share of any LIBO Rate Loan or (b) maintain its share of all or any portion of the LIBO Rate Loans, each such Syndication Party shall promptly, by telephone or facsimile, notify the Administrative Agent thereof, and of the
reasons therefor and the Administrative Agent shall promptly notify Borrower thereof and if the notice from such Syndication Party is in writing, the Administrative Agent shall provide a copy of such notice to Borrower. In the former event, the
obligation of any such Syndication Party to make available its Funding Share of any future LIBO Rate Loan shall immediately be canceled (and, in lieu thereof shall be made as a Base Rate Loan), and in the latter event, any such unlawful LIBO Rate
Loans or portions thereof then outstanding shall be converted, at the option of such Syndication Party, to a Base Rate Loan; provided, however, that if any such Change in Law shall permit the LIBO Rate to remain in effect until the expiration of the
LIBO Rate Period applicable to any such unlawful LIBO Rate Loan, then such LIBO Rate Loan shall continue in effect until the expiration of such LIBO Rate Period. Upon the occurrence of any of the foregoing events on account of any change in any law,
treaty, rule, regulation or determination of a court or governmental authority or in the interpretation or application thereof, Borrower shall pay to the Administrative Agent immediately upon demand such amounts as may be necessary to compensate any
such Syndication Party for any fees, charges, or other costs incurred or payable by such Syndication Party as a result thereof and which are attributable to any LIBO Rate Loan made available to Borrower hereunder, and any reasonable allocation made
by any such Syndication Party among its operations shall be conclusive and binding upon Borrower absent manifest error. In the event any Syndication Party 
  

 19 

 provides the Administrative Agent a notice under this Subsection, then Borrower shall have the right, but not the
obligation, upon written notice to the Administrative Agent, accompanied by the payment of such amounts as are described above and any applicable Funding Losses on account of the prepayment required below, on or before 10:00 A.M. (Central time) on
or before ten (10) Banking Days following receipt of such notice, to reduce the Individual Commitment of such Syndication Party to zero upon making a prepayment, to be treated as a Voluntary Payment to the extent not inconsistent with the provisions
of this Subsection, equal to the amount of such Syndication Party’s Individual Outstanding Obligations. In the event Borrower makes such an election, then a reduction in a dollar amount corresponding to such reduction in Individual Commitment
shall be made to the Aggregate Commitment, and, notwithstanding any provisions of this Credit Agreement to the contrary, including, without limitation, Section 2.8, the amount of such prepayment shall be applied to outstanding LIBO Rate Loans to the
extent of such Syndication Party’s Pro Rata Share thereof and, along with the amount paid on account of such fees, charges, Funding Losses, or other costs, distributed to the Syndication Party providing such notice and as to which Borrower has
made such election. 
  
 3.3 Default Interest Rate. All past
due payments on the Notes or of any other Bank Debt (whether as a result of nonpayment by Borrower when due, at maturity, or upon acceleration) shall bear interest at the Default Interest Rate from and after the due date for the payment, or on the
date of maturity or acceleration, as the case may be. 
  
 3.4
Interest Calculation. Interest on LIBO Rate Loans and Base Rate Loans shall be calculated on the actual number of days the principal owing thereunder is outstanding with the daily rate calculated on the basis of a year consisting of 360 days. In
calculating interest, the Advance Date shall be included and the date each payment is received shall be excluded. 
  
 3.5 Fees. Borrower shall pay or cause to be paid the following fees: 
  
 3.5.1 Commitment Fee. A fee for each day during the Availability Period (“Commitment Fee”) for each
Facility (a) payable in arrears by the fifteenth day of the month following the close of each Fiscal Quarter, and (b) determined for each day during such Fiscal Quarter by (i) multiplying the Commitment Fee Factor in effect on such day (expressed as
a daily rate on the basis of a year of 360 days) times (ii) the difference between the Aggregate Commitment in effect on such day, and the outstanding principal balance owing under the Revolving Loan as of the close of the Administrative
Agent’s business on such day. The Commitment Fee shall be payable by Borrower to the Administrative Agent, and the Administrative Agent shall distribute the Commitment Fee to the Syndication Parties based on their Individual Pro Rata Share on
such day of payment. 
  

 20 

 3.6 Interest Rate Margins; Commitment Fee Factor. The Margins and the Commitment Fee Factor shall
be determined as follows: 
  
 3.6.1 Calculation. The
“Base Rate Margin” and the “LIBOR Margin” (collectively the “Margins”), and the “Commitment Fee Factor” shall be determined pursuant to the table below (expressed in basis points)
based on the Leverage Ratio, as of the end of each Fiscal Quarter, with such Margins effective as of the fifth Banking Day after receipt of a Compliance Certificate as required pursuant to Subsection 3.6.2 hereof (and it being expressly understood
that the LIBOR Margin once set for a LIBO Rate Loans will not change during the LIBO Rate Period therefore based upon a subsequent change in the Leverage Ratio), except that (a) the Margins and Commitment Fee Factor effective as of the Closing Date
shall be based on the last Compliance Certificate provided pursuant to the requirements of the 2000 Credit Agreement until receipt of a new Compliance Certificate as required pursuant to Subsection 3.6.2 hereof (or in accordance with clause (c) of
this Subsection if no such Compliance Certificate was provided); (b) in the event that the final annual audited financial statements establish the Borrower was not entitled to a reduction in the Margins and/or the Commitment Fee Factor previously
granted based upon a Compliance Certificate, Borrower shall, upon written demand by the Administrative Agent, pay any excess amount which should have been charged based on such annual audited financial statements; and (c) if the Compliance
Certificate is not received by Administrative Agent by the Margin Report Deadline, the Margins and the Commitment Fee Factor for the period commencing on the first Banking Day after the Margin Report Deadline will each be based on Pricing Level VIII
continuing until the fifth Banking Day after such time as Borrower delivers the Compliance Certificate to the Administrative Agent, after which time the Margins and the Commitment Fee Factor will be based on such Compliance Certificate: 

 

									
	 Pricing
 Level

	  	 Leverage Ratio

	  	 LIBOR Margin

	  	 Base Rate Margin

	  	 Commitment Fee Factor

	 I
	  	£ 35%	  	100.0 basis points	  	0 basis points	  	25.0 basis points
	 II
	  	>35% £ 40%	  	125.0 basis points	  	0 basis points	  	25.0 basis points
	 III
	  	>40% £ 45%	  	150.0 basis points	  	0 basis points	  	37.5 basis points
	 IV
	  	>45% £ 50%	  	162.5 basis points	  	0 basis points	  	37.5 basis points
	 V
	  	>50% £ 55%	  	187.5 basis points	  	0 basis points	  	42.5 basis points
	 VI
	  	>55% £ 60%	  	212.5 basis points	  	25.0 basis points	  	50.0 basis points
	 VII
	  	>60% £ 65%	  	237.5 basis points	  	25.0 basis points	  	50.0 basis points
	 VIII
	  	>65%	  	262.5 basis points	  	25.0 basis points	  	50.0 basis points

  
 3.6.2 Compliance
Certificate. On or before the 45th day after the beginning of the second, third and fourth Fiscal Quarter of each Fiscal Year and on or before the 90th day after the beginning of the first Fiscal Quarter of each Fiscal Year (“Margin Report Deadline”), commencing with the Fiscal Quarter which begins in January of 2004, Borrower shall
provide to the Administrative Agent the Compliance Certificate required pursuant to Subsections 9.2.1 and 9.2.2 hereof, which shall include a statement as to the Leverage Ratio as of the last day of the preceding Fiscal Quarter. 
  

 21 

 3.7 Maximum Interest Rate. Borrower acknowledges and agrees that 12 U.S.C. § 2205 provides
that Farm Credit System Institutions are not subject to any interest rate limitation imposed by any state constitution or statute or other laws, and that any such limitations are preempted, and that therefore interest owing under the Notes, to the
extent funded by a Farm Credit System Institution, is not subject to any ceiling. Nonetheless, in the event it is ever determined by a court of competent jurisdiction that interest owing on the Notes, or some of them, is subject to any limitations
imposed by the laws of the State of Colorado or Texas or any other jurisdiction, it is the intent of Borrower, and the Syndication Parties to, notwithstanding the provisions of Section 3.1 hereof, at all times comply with the applicable usury laws
relating to this Credit Agreement or the Notes now or hereafter in effect including, without limitation, Title 4 of the Texas Finance Code and any subsequent revisions or judicial interpretations thereof if, and to the extent, determined by a court
to be applicable to the Notes. It is agreed that the aggregate of all interest and other charges constituting interest, or adjudicated as constituting interest, and contracted for, chargeable, or receivable in connection with the Notes shall under
no circumstances exceed the maximum nonusurious amount of interest permitted by applicable law. If the applicable laws are ever revised or judicially interpreted so as to render usurious any amount called for under this Credit Agreement or the Notes
or contracted for, charged, chargeable, received or receivable with respect to this Credit Agreement or the Notes, or if the exercise of the option to accelerate the maturity of the Notes, or if any payment, results in Borrower having paid any
interest on one or more of the Notes in excess of that permitted by applicable law, any such construction shall be subject to the provisions of this Section and, to the extent permitted by applicable law all excess amounts collected on such Notes
shall be credited on the principal balance of such Notes (or, if it has been paid in full, refunded to Borrower), and those provisions shall immediately be deemed reformed and the amounts thereafter collectible will be reduced, without the necessity
of the execution of any new documents, so as to comply with the then applicable law, but so as to permit the recovery of the fullest amount of interest otherwise lawfully called for under this Credit Agreement or the Notes. In the event the maturity
of any Note is accelerated, then earned interest may never include more than the maximum amount of interest permitted by applicable law from the date of each advance of the proceeds of such Note until paid. Specifically, but without in any way
limiting the generality of the foregoing, if from any circumstances whatsoever fulfillment of any provision of this Credit Agreement or the Notes, at the time performance of such provision is due, would cause the interest contracted for, charged,
chargeable, received or receivable with respect to this Credit Agreement or any of the Notes to exceed the amount permitted by applicable law, then ipso facto and notwithstanding anything to the contrary contained herein, Borrower shall only be
required to pay interest on each such Note in an amount equal to the lesser of the amounts payable under this Credit Agreement and the maximum amount permitted by applicable law. In determining whether the amount of interest contracted for, charged,
chargeable, received or receivable with respect to this Credit Agreement or any of the Notes would ever exceed the amount permitted by applicable law, all sums charged, paid or agreed to be paid under this Credit Agreement for the use, forbearance,
or detention of the indebtedness of Borrower to the Administrative Agent and/or the Syndication Parties shall, to the 
  

 22 

 extent possible under applicable law, be amortized, prorated, allocated, and spread throughout the full term of the Notes
(including any renewal or extension), until payment in full. The provisions of this Section control all agreements between the Administrative Agent and/or the Syndication Parties and Borrower relative to the Notes. In the event any interest is
required to be credited to principal or refunded to Borrower with respect to some, but not all, of the Notes, such adjustment shall be for the account of the Syndication Party which is the payee under such Note or Notes, and shall not affect the
other Notes or the Syndication Parties which are the payees under such other Notes. 
  
 ARTICLE 4. PAYMENTS; FUNDING LOSSES 
  
 4.1
Principal Payments. Principal shall be payable under the Converted Loans in quarterly payments in the amounts and on the dates set forth below, with all unpaid principal due on the Maturity Date. 
  
 4.1.1 Automatic Conversion. The outstanding balance of principal
owing under the Revolving Loan as of the last day of the Availability Period (“Conversion Amount”) will be automatically converted into a term loan (“Converted Loan”) as of such day (“Conversion
Date”). 
  
 4.1.2 Principal Payments. The
outstanding balance of the Converted Loan shall be payable (a) in 14 equal quarterly installments, commencing on [April 15, 2008] and on the 15th day of each July, October, January, and April thereafter to and including July 15, 2011
(“Scheduled Payments”), and (b) one final payment on the Maturity Date equal to the unpaid balance owing under the Converted Loan, requiring a balloon payment on such date (“Balloon Payment”). The amount of the
Scheduled Payments shall be determined by dividing the Conversion Amount by 28 (“Scheduled Payment Amount”). 
  
 4.2 Interest Payments. Interest shall be payable as follows: (a) interest on Base Rate Loans shall be payable monthly in arrears on the fifteenth
day of the following month, (b) interest on LIBO Rate Loans shall be payable in arrears on the last day of the LIBO Rate Period therefor unless the LIBO Rate Period is longer than three (3) months, in which case interest shall also be payable every
three (3) months from the date of the relevant Advance and (c) interest on all Loans then accrued and unpaid shall be payable on the Maturity Date. 
  
 4.3 Voluntary Prepayments. Borrower shall have the right to prepay (“Voluntary Prepayments”) all or any part of the outstanding
principal balance under the Loans at any time in minimum amounts of $1,000,000.00 and in integral multiples of $500,000.00 (or the entire outstanding balance, if less) on any Banking Day; provided that (a) in the event of prepayment of any LIBO Rate
Loan (i) Borrower must provide three (3) Banking Days notice to the Administrative Agent prior to making such prepayment, and (ii) Borrower must, at the time of making such prepayment, pay (A) all Funding Losses applicable to such prepayment, and
(B) if such Voluntary Prepayment is with respect to a LIBO Rate Loan or the Converted Loan, all interest accrued as of 
  

 23 

 the date of such prepayment. Principal amounts paid or voluntarily prepaid may be reborrowed under the terms and
conditions of this Credit Agreement during the Availability Period. 
  
 4.4 Mandatory Prepayments. Borrower shall be required to make prepayments (“Mandatory Prepayments”) in each of the following events: (a) in the event any of the Collateral is the subject of a Casualty Event, a
Mandatory Prepayment equal to the amount of the Casualty Proceeds received by Borrower on account thereof (provided that no such Mandatory Prepayment shall be required to the extent that Borrower uses such Casualty Proceeds for repair or replacement
for any Casualty Event if the amount of Casualty Proceeds does not exceed $25,000,000.00, or such higher amount as may be approved by the Required Lenders at their discretion, and so long as (i) a contract for such repair or replacement is entered
into within 180 days of such Casualty Event for such repairs and/or the acquisition of such replacements, (ii) such repair or replacement is effected within 360 days of such Casualty Event, and (iii) any such replacements are covered by the lien in
favor of the Administrative Agent on the Collateral); (b) upon the issuance of any equity securities in a capital raising transaction resulting in net proceeds to Borrower of an amount in excess of $10,000,000.00, a Mandatory Prepayment equal to
fifty percent (50.0%) of the net proceeds of such offering of equity securities to the extent not used, under the conditions set forth below, for acquisitions and/or capital investment within 360 days of receipt, provided that in the event Borrower
desires to use any of such net proceeds to pay amounts owing under any of the Senior Unsecured Notes or Senior Subordinated Notes, and Borrower provides the Administrative Agent with ten (10) days advance written notice of its intention to make such
payment or payments then, if Administrative Agent requires a Mandatory Prepayment under this clause (b), the amount of such Mandatory Prepayment required under this clause (b) shall be the Pro Rata Amount; (c) upon sale or other disposition of any
non-current assets (except for sales in the ordinary course of business) which are a part of the Collateral (other than Collateral with respect to which the lien is released pursuant to the provisions of Section 9.15 hereof), a Mandatory Prepayment
equal to one hundred percent (100%) of the net proceeds in excess of $10,000,000 received by Borrower to the extent that such excess net proceeds are not used, under the conditions set forth below, for acquisitions and/or capital investment within
360 days of receipt by Borrower, of or in assets which are covered by a first priority perfected lien in favor of the Administrative Agent subject to Permitted Encumbrances; (d) upon sale or other disposition of any non-current assets (except for
sales in the ordinary course of business) which are not part of the Collateral, if Borrower at any time subsequent to such sale desires to use (and is not required to do so under the terms of any secured or unsecured credit facility or indenture)
any of the net proceeds thereof to pay amounts owing under any of the Senior Unsecured Notes, Borrower (i) shall provide the Administrative Agent with ten (10) days advance written notice of its intention to make such payment and (ii) shall, if
required to do so by the Administrative Agent, make a Mandatory Prepayment in the Pro Rata Amount; and (e) at any time that the aggregate outstanding principal balance owing under the Revolving Loan (including the Converted Loans) (i) exceeds the
Available Amount or (ii) exceeds the Aggregate Commitment, as it may be reduced from time to time, a Mandatory Prepayment equal to the amount of such excess. In each case of proceeds from any offering of equity 
  

 24 

 securities and from any sale or other disposition of Collateral (other than Collateral with respect to which the lien is
released pursuant to the provisions of Section 9.15 hereof), to avoid Mandatory Prepayment based thereon, Borrower must, within 180 days of receipt of such proceeds, have used such proceeds for acquisitions and/or capital investments or executed a
binding definitive contract for such acquisitions and/or capital investments. Mandatory Prepayments made pursuant to clauses (a) and (b) of this Section, will, in either case, result in a permanent reduction of the Aggregate Commitment to the extent
of the Mandatory Payments applied to the Revolving Loan. Mandatory Prepayments under clause (a) shall be due no later than ten (10) Banking Days after the expiration of the applicable repair or replacement period set forth above in clause (a).
Mandatory Prepayments under clause (b) shall be due no later than the earlier of (i) the date Borrower makes payment under the Senior Unsecured Notes or Senior Subordinated Notes, and (ii) ten (10) Banking Days after the expiration of the applicable
acquisition or capital investment period set forth above in clause (b). Mandatory Prepayments under clause (c) shall be due no later than ten (10) Banking Days after the expiration of the applicable acquisition or capital investment period set forth
above in clause (c). Mandatory Prepayments under clause (d) shall be due no later than the date Borrower makes payment under the Senior Unsecured Notes from such excess proceeds. Mandatory Prepayments under (e) shall be due the next Banking Day
following such occurrence. In determining the amount of Mandatory Prepayment required under clauses (a) or (c), Borrower shall be permitted to make any prepayment required on account of such Casualty Event or sale under any Pari Passu Loan (in a
maximum amount no greater than the pro rata portion based on total outstanding principal balances of such loan and the Revolving Loans), and in determining the amount of Mandatory Prepayment required under clause (b), Borrower shall, without
duplication regarding payments made on account of any Pari Passu Loan, be permitted to make any prepayment required on account of such sale under any secured or unsecured credit facility or indenture which is not expressly subordinate to the
Revolving Loans in a maximum amount, with respect only to such unsecured facilities, of no greater than the pro rata portion based on the total outstanding principal balances owing under such unsecured facility to the sum of the total outstanding
principal balances owing under all such unsecured facilities and under the Revolving Loans. The term “Pro Rata Amount”, as used in this Section, means an amount determined (1) by dividing the amount of Borrower’s proposed
payment of the Senior Unsecured Notes, by the total amount of principal owing under the Senior Unsecured Notes, and multiplying the result by the average daily unpaid balance of the Revolving Loan over the immediately preceding 30 consecutive days,
or (2) by dividing the amount of Borrower’s proposed payment of the Senior Subordinated Notes (where such payment is permitted hereunder), by the total amount of principal owing under the Senior Subordinated Notes, and multiplying the result by
the average daily unpaid balance of the Revolving Loan over the immediately preceding 30 consecutive days, or (3) if Borrower proposes to make payments under both the Senior Unsecured Notes and the Senior Subordinated Notes (where such payment is
permitted hereunder), by dividing the amount of Borrower’s proposed payment of the Senior Unsecured Notes plus the amount of Borrower’s proposed payment of the Senior Subordinated Notes, by the total amount of principal owing under the
Senior Unsecured Notes plus the total amount of 
  

 25 

 principal owing under the Senior Subordinated Notes, and multiplying the result by the average daily unpaid balance of
the Revolving Loan over the immediately preceding 30 consecutive days. In addition to (but not in duplication of) such Mandatory Prepayments as are required pursuant to the foregoing provisions of this Section 4.4, Borrower shall make, as a
Mandatory Prepayment, any payments required in the event that Borrower elects to reduce the Aggregate Commitment pursuant to Section 2.8 and to allocate such reduction to a particular Syndication Party and/or Voting Participant. 
  
 4.5 Application of Principal Payments. 
  
 4.5.1 Scheduled Payments. All Scheduled Payments shall be applied to
one or more Converted Loans to the Scheduled Payment next coming due. 
  
 4.5.2 Voluntary Prepayments. All Voluntary Prepayments shall be applied to principal amounts owing under the Revolving Loan or the Converted Loan, as applicable, and, unless Borrower directs otherwise in writing, shall be applied
first to Base Rate Loans and then to LIBO Rate Loans. To the extent Voluntary Prepayments are applied to Converted Loans, they shall be applied first to the four principal installments next coming due, and second to remaining
installments on a ratable basis. However, notwithstanding any of the foregoing provisions of this Subsection, upon the occurrence and during the continuance of an Event of Default, all prepayments shall be applied, as the Administrative Agent in its
sole discretion shall determine, to fees, interest or principal indebtedness under the Notes, or to any other Bank Debt. 
  
 4.5.3 Mandatory Prepayments. All Mandatory Prepayments shall be applied to principal amounts owing under the Revolving Loan or the Converted Loan,
as applicable, and to the extent not inconsistent with the balance of this Subsection, first to Base Rate Loans and then to LIBO Rate Loans. To the extent Mandatory Prepayments are applied to Converted Loans, on account of clauses (a) or (d)(ii) of
Section 4.4, they shall be applied to Scheduled Payments in the inverse order of their due date, so that such Mandatory Prepayments are applied first to the Scheduled Payment last coming due, and to the extent Mandatory Prepayments are applied to
Converted Loans, on account of clauses (b), (d)(i), or (e) of Section 4.4, they shall be applied first to the four principal installments next coming due, and second to remaining installments on a ratable basis. 
  
 4.6 Manner of Payment. All payments, including prepayments, that
Borrower is required or permitted to make under the terms of this Credit Agreement shall be made in US dollars to the Administrative Agent (a) in immediately available federal funds, to be received no later than 1:00 P.M. Central time of the Banking
Day on which such payment is due by wire transfer through Federal Reserve Bank, Kansas City, Routing Number: 307088754, COBANK ENGWD (or to such other account as the Administrative Agent may designate by notice); and (b) without setoff or
counterclaim and free and clear of and without deduction for any taxes, levies, impost, duties, charges, fees, deductions, withholding, compulsory loans, restrictions or conditions of any nature now or hereafter imposed or levied by any jurisdiction
or any political subdivision thereof or taxing or other authority therein unless Borrower is required by law to make such deduction or withholding. 
  

 26 

 4.7 Distribution of Principal and Interest Payments. The Administrative Agent shall distribute
payments of principal and interest among the Syndication Parties as follows: 
  
 4.7.1 Principal and Interest Payments on Revolving Loan. Principal and interest payments on or applied to the Revolving Loan (including Converted Loans) shall be remitted to the Syndication Parties in
accordance with their Individual Pro Rata Share. 
  
 4.8
Funding Losses. “Funding Losses” shall be determined on an individual Syndication Party basis as the amount which would result in such Syndication Party being made whole (on a present value basis) for the actual or imputed funding
losses (including, without limitation, any loss, cost or expense incurred by reason of obtaining, liquidating or employing deposits or other funds acquired by such Syndication Party to fund or maintain such LIBO Rate Loan) incurred by such
Syndication Party as a result of such prepayment of LIBO Rate Loans on any day other than the last day of the LIBO Rate Period applicable thereto. In the event of any such prepayment, each Syndication Party which had funded the LIBO Rate Loan being
prepaid shall, promptly after being notified of such prepayment, send written notice (“Funding Loss Notice”) to the Administrative Agent by facsimile setting forth the amount of attributable Funding Losses and the method of
calculating the same. The Administrative Agent shall notify Borrower orally or in writing of the amount of such Funding Losses. A determination by a Syndication Party as to the amounts payable pursuant to this Section shall be conclusive absent
manifest error. Notwithstanding the foregoing, each Syndication Party is entitled to fund all or any part of its Pro Rata Share of any LIBO Rate Loan in any manner it selects, and it is understood that for the purposes of determining any Funding
Losses, determination shall be made by each Syndication Party as though it had actually funded and maintained each LIBO Rate Loan through the purchase of deposits in the relevant interbank market having a maturity corresponding to the relevant LIBO
Rate Period. 
  
 ARTICLE 5. BANK EQUITY INTERESTS 
  
 5.1 Purchase of Bank Equity Interests. Borrower agrees to purchase
such equity interests in Agriland (“Bank Equity Interests”) as Agriland may from time to time require in accordance with its bylaws and capital plan in effect as of the date hereof as applicable to non-cooperative borrowers
generally. In connection with the foregoing, Borrower hereby acknowledges receipt, prior to the execution of this Credit Agreement, of the following with respect to Agriland (a) the bylaws, (b) a written description of the terms and conditions under
which the Bank Equity Interests are issued, (c) the most recent annual report, and if more recent than the latest annual report, the latest quarterly report. 
  

 27 

 ARTICLE 6. SECURITY 
  
 6.1 Borrower’s Collateral. As security for the payment and performance of all obligations of Borrower to the Administrative Agent, to Agriland
(with respect to the obligations of Borrower under Article 5 hereof), and to all present and future Syndication Parties, including but not limited to principal and interest under the Notes, purchases of Bank Equity Interests, fees, Funding Losses,
reimbursements, and all other Bank Debt or obligations under any of the Loan Documents, Borrower shall grant to, and maintain for, the Administrative Agent, for the benefit of Agriland (to the extent of Borrower’s obligations with respect to
Bank Equity Interests), and for the benefit of all present and future Syndication Parties, a first lien and security interest, pursuant to the Security Documents, subject only to (i) purchase money security interests which would qualify as Permitted
Encumbrances, and (ii) Permitted Encumbrances described in Section 10.3(a) hereof, in the following (“Collateral”): (a) all of Borrower’s real property interest, furniture, fixtures and equipment located at, or used in
connection with, the poultry hatching, raising, slaughtering, processing, packaging, and shipping operations and facilities identified on Exhibit 6.1 hereto; and (b) all proceeds with respect to the assets described in clause (a) above and
all insurance policies in connection with the assets described in clauses (a) and (b) hereof and the proceeds thereof, in each case whether now owned or hereafter acquired; provided that only Agriland (or the Administrative Agent on behalf of
Agriland) shall have a lien on the Bank Equity Interests and none of the Syndication Parties shall have a lien thereon. Borrower shall execute and deliver to the Administrative Agent, for the benefit of the Syndication Parties, the Security
Documents to evidence the security interest of the Administrative Agent, for the benefit of the Syndication Parties, in the Collateral, together with such financing statements or other documents as the Administrative Agent shall reasonably request.
Borrower shall also execute such further security agreements, mortgages, deeds of trust, financing statements, assignments or other documents as the Administrative Agent shall reasonably request from time to time, in form and substance as the
Administrative Agent shall specify, to establish, confirm, perfect or provide notice of the Administrative Agent’s security interest (for the benefit of the Administrative Agent and all Syndication Parties) in the Collateral. 
  
 6.2 Guaranty. Borrower’s obligations under this Credit Agreement,
the Notes, and all other Loan Documents shall be guaranteed by Pilgrim Interests, Ltd., a Texas limited partnership (“Pilgrim Ltd”) through the execution of a guarantee, or an amendment to the guaranty provided by Pilgrim Ltd in
connection with the 2000 Credit Agreement, in either case in form and substance acceptable to the Administrative Agent and delivered on the Closing Date (“Pilgrim Guaranty”). 
  

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 ARTICLE 7. REPRESENTATIONS AND WARRANTIES 
  
 To induce the Syndication Parties to make the Advances and recognizing that the Syndication Parties and the Administrative
Agent are relying thereon, Borrower represents and warrants as follows: 
  
 7.1 Organization, Good Standing, Etc. Borrower: (a) is duly organized, validly existing, and in good standing under the laws of its state of incorporation; (b) is duly qualified to do business and is in good
standing in the states of Texas and Arkansas and each other jurisdiction in which the transaction of its business makes such qualification necessary, except to the extent that the failure to so qualify has not resulted in, and could not reasonably
be expected to cause, a Material Adverse Effect; and (c) has all requisite corporate and legal power to own and operate its assets and to carry on its business, and to enter into and perform the Loan Documents to which it is a party. Each
Subsidiary: (x) is duly organized, validly existing, and in good standing under the laws of its jurisdiction of organization; (y) is duly qualified to do business and is in good standing in each jurisdiction in which the transaction of its business
makes such qualification necessary, except to the extent that the failure to so qualify has not resulted in, and could not reasonably be expected to cause, a Material Adverse Effect; and (z) has all requisite corporate and legal power to own and
operate its assets and to carry on its business. 
  
 7.2
Corporate Authority, Due Authorization; Consents. Borrower has taken all corporate action necessary to execute, deliver and perform its obligations under the Loan Documents to which it is a party. All consents or approvals of any Person which
are necessary for, or are required as a condition of Borrower’s execution, delivery and performance of and under the Loan Documents, have been obtained except where the failure to obtain such consent or approval could not reasonably be expected
to cause a Material Adverse Effect. 
  
 7.3 Litigation.
Except as described on Exhibit 7.3 hereto, there are no pending legal or governmental actions, proceedings or investigations to which Borrower or any Subsidiary is a party or to which any property of Borrower or any Subsidiary is subject
which could reasonably be expected to result in any Material Adverse Effect and, to Borrower’s knowledge, no such actions or proceedings are threatened or contemplated by any federal, state, county, or city (or similar unit) governmental agency
or any other Person. 
  
 7.4 No Violations. The execution,
delivery and performance of the Loan Documents will not: (a) violate any provision of Borrower’s Organizational Documents, or any law, rule, regulation (including, without limitation, Regulations T, U, and X of the Board of Governors of the
Federal Reserve System), or any judgment, order or ruling of any court or governmental agency; (b) violate, require consent under (except such consent as has been obtained), conflict with, result in a breach of, constitute a default under, or with
the giving of notice or the expiration of time or both, constitute a default under, any existing real estate mortgage, indenture, lease, security agreement, contract, note, instrument or any other agreements or documents binding on Borrower or
affecting its property which, in any such circumstance, could reasonably be expected to result in any Material Adverse Effect; or (c) violate, conflict with, result in a breach of, constitute a default under, or result in the loss of, or restriction
of rights under, any Required License or any order, law, rule, or regulation under or pursuant to which any Required License was issued or is maintained (“Licensing Laws”) which, in any such circumstance, could reasonably be
expected to result in any Material Adverse Effect. 
  

 29 

 7.5 Binding Agreement. Each of the Loan Documents to which Borrower is a party is the legal, valid
and binding obligation of Borrower, enforceable in accordance with its terms, subject only to limitations on enforceability imposed by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights
generally and by general principles of equity. 
  
 7.6
Compliance with Laws. Borrower and each Subsidiary are in compliance with all federal, state, and local laws, rules, regulations, ordinances, codes and orders, including without limitation all Environmental Laws and all Licensing Laws, with
respect to which noncompliance would result in a Material Adverse Effect. 
  
 7.7 Principal Place of Business. Borrower’s place of business, or chief executive office if it has more than one place of business, and the place where the records required by Section 9.1 hereof are kept,
is located at 110 South Texas Street, Pittsburg, Texas 75686. 
  
 7.8 Payment of Taxes. Except as shown on Exhibit 7.8 hereto, Borrower and each Subsidiary have filed all required federal, state and local tax returns and have paid all taxes as shown on such returns as they have become due,
and have paid when due all other taxes, assessments or impositions levied or assessed against Borrower or any Subsidiary, or their business or properties, except for those subject to a Good Faith Contest or where the failure to make such filing or
payment could not reasonably be expected to result in a Material Adverse Effect. Exhibit 7.8 specifically indicates all such taxes which are subject to a Good Faith Contest as of the Closing Date. 
  
 7.9 Licenses and Approvals. Borrower and each Subsidiary have
ownership of, or license to use, or have been issued, all trademarks, patents, copyrights, franchises, certificates, approvals, permits, authorities, agreements, and licenses which are used or necessary to permit it to own its properties and to
conduct the business as presently being conducted as to which the termination or revocation thereof could reasonably be expected to have a Material Adverse Effect (“Required Licenses”). Each Required License is in full force and
effect, and there is no outstanding notice of cancellation or termination or, to Borrower’s knowledge, any threatened cancellation or termination in connection therewith, nor has an event occurred with respect to any Required License which,
with the giving of notice or passage of time or both, could result in the revocation or termination thereof or otherwise in any impairment of Borrower’s rights with respect thereto, which impairment could reasonably be expected to have a
Material Adverse Effect. Borrower is not required to obtain any consent, permission, authorization, order, or license of any governmental authority, in connection with the execution, delivery, performance, or enforcement of and under the Loan
Documents to which Borrower is a party except such as have been obtained and are in full force and effect. 
  

 30 

 7.10 Employee Benefit Plans. Except as otherwise disclosed in writing to the Administrative Agents
and on Exhibit 7.10 hereto: 
  
 7.10.1 Employee Benefit
Plans; Multiemployer Plans. Exhibit 7.10 hereto sets forth as of the Closing Date a true and complete list of each Borrower Benefit Plan, Borrower Pension Plan, and Multiemployer Plan that is maintained by Borrower or in which Borrower
participates or to which Borrower is obligated to contribute, in each case as of the Closing Date. Borrower has received no written notification that any Multiemployer Plan to which Borrower currently has any obligation to contribute which is an
“employee pension benefit plan” as such term is defined in Section 3(2) of ERISA fails to qualify under the Code. 
  
 7.10.2 Pension Benefit Plans. To the knowledge of Borrower, each Borrower Benefit Plan that is an “employee pension benefit plan” as
defined in Section 3(2) of ERISA that is intended to satisfy the requirements of Section 401(a) of the Code (each a “Borrower Pension Plan”), and the trust, if any, forming a part thereof, meets in all material respects, and, in all
material respects, since its inception has met, the requirements for qualification under Section 401(a) of the Code, and for exemption from taxation under Section 501(a) of the Code (except that these representations shall not be deemed to have been
made subsequent to the Closing Date). Except as disclosed on Exhibit 7.10 hereto, the Internal Revenue Service (“IRS”) has issued a favorable determination letter with respect to the qualification of each Borrower Pension
Plan as of the Closing Date and the trust, if any, relating thereto, and, to the knowledge of Borrower, the IRS has not taken any action to revoke any such letter. 
  
 7.10.3 Prohibited Transactions. With respect to each Borrower Benefit Plan sponsored or maintained by Borrower or in
which Borrower participates or to which Borrower is obligated to contribute (with the exception of any Multiemployer Plan), neither Borrower nor any Borrower Benefit Plan or, to the knowledge of Borrower, a fiduciary thereof, is engaged or has
engaged in any transaction which is prohibited by Part 4 of Subtitle B of Title I of ERISA or which might subject any such plan or related trust, or any trustee or administrator thereof, to a tax or penalty imposed by Section 4975 of the Code or
Section 502(i) of ERISA or to liability under Section 409 of ERISA, any of which would have a Material Adverse Effect. With respect to each Multiemployer Plan to which Borrower or a member of Borrower’s “controlled group” (as that
term is defined in Section 414(b) or (c) of the Code) has any obligation to contribute, to the knowledge of Borrower, neither Borrower nor any Multiemployer Plan or a fiduciary thereof is engaged or has engaged in any transaction which is prohibited
by Part 4 of Subtitle B of Title I of ERISA or which might subject Borrower to a tax or penalty imposed by Section 4975 of the Code or Section 502(i) of ERISA or to liability under Section 409 of ERISA, any of which would have a Material Adverse
Effect. 
  
 7.10.4 Civil/Criminal Action. To the knowledge
of Borrower, no civil or criminal action brought pursuant to Part 5 of Subtitle B of Title I of ERISA is pending, or, to the knowledge of Borrower, is threatened against Borrower, any Borrower Benefit Plan or any fiduciary thereof with respect to
any Borrower Benefit Plan (except that these representations shall not be deemed to have been made subsequent to the Closing Date). 
  

 31 

 7.10.5 Funding. (a) Each Borrower Pension Plan is in compliance with the minimum funding standards
of Section 412 of the Code and Part 3 of Subtitle B of Title I of ERISA, and (b) no waivers of the minimum funding standards have been requested, and no Borrower Pension Plan has any “accumulated funding deficiency” within the meaning of
Section 412 of the Code. 
  
 7.10.6 Compliance With Law. To
the knowledge of Borrower, Borrower is in compliance in all material respects with, and each Borrower Benefit Plan has been operated in all material respects in accordance with, the provisions of such plan and in compliance in all material respects
with, ERISA, the Code and all other applicable law governing each such Borrower Benefit Plan, including but not limited to rules and regulations promulgated by the Department of Labor, the Pension Benefit Guaranty Corporation, and the Department of
the Treasury pursuant to the provisions of ERISA and the Code, including without limitation, the bonding requirements of Section 412 of ERISA and the disclosure and reporting requirements of Part 1 of Subtitle B of Title I of ERISA, except to the
extent any such failure would not have a Material Adverse Effect (except that these representations shall not be deemed to have been made subsequent to the Closing Date). 
  
 7.10.7 Multiple Employer Plan. As of the Closing Date, Borrower does not participate in any “multiple employer
plan” within the meaning of Section 413 of the Code. 
  
 7.10.8 Plan Termination Liability; Multiemployer Plan Withdrawal Liability. (a) Borrower has not incurred any material liability under Title IV of ERISA arising in connection with the termination of, or complete or partial withdrawal
from, any employee pension benefit plan (as defined in Section 3(2) of ERISA), covered or previously covered by Title IV of ERISA, which liability, or any portion thereof, will constitute a liability of Borrower at or after the Closing Date except
to the extent that any such liability would not have a Material Adverse Effect, and (b) neither Borrower nor any member of Borrower’s “controlled group” as defined in Code Section 414(b), (c), (m), or (o) prior to the Closing Date has
incurred any liability under Title IV of ERISA arising in connection with the complete or partial withdrawal from any Multiemployer Plan, which liability, or any portion thereof, will constitute a liability of Borrower at or after the Closing Date,
except to the extent that any such liability would not have a Material Adverse Effect. 
  
 7.10.9 Pension Plan Termination. No proceedings to terminate any Borrower Pension Plan have been instituted under Subtitle C of Title IV of ERISA. 
  
 7.10.10 Reportable Event. To the knowledge of Borrower, no “reportable event” within the meaning of Section
4043 of ERISA and the regulations thereunder has occurred with respect to any Borrower Pension Plan (other than a Multiemployer Plan), other than a reportable event for which notice or penalty for noncompliance has been waived by regulation or
otherwise. With respect to any Multiemployer Plan that is a defined benefit plan to which Borrower has any obligation to contribute, to the knowledge of Borrower, no such “reportable event” has occurred 
  

 32 

 which would materially and adversely affect such plan, and, to the knowledge of Borrower, no such plan is in
reorganization within the meaning of Part 3 of Subtitle E of Title IV of ERISA (except that the representations contained in this sentence shall not be deemed to have been made subsequent to the Closing Date). 
  
 7.10.11 Payment of Contributions. Except as disclosed in Exhibit
7.10, in respect of each Borrower Benefit Plan, Borrower has paid or will have paid or accrued as of the Closing Date (a) all contributions or premiums required to be made by it for all plan years ending on or prior to the Closing Date and, (b)
for the plan year which includes the Closing Date, any contributions or premiums required to be made by it by the Closing Date under the terms of the Borrower Benefit Plan. Except as disclosed in Exhibit 7.10, Borrower is not, as of the
Closing Date, obligated to pay any contributions or premiums to a Multiemployer Plan. Except as set forth in Exhibit 7.10 hereto, all contributions paid or accrued by Borrower on or prior to the Closing Date in respect of any Borrower Pension
Plan that is a defined benefit plan have been based on the actuarial assumptions and methods used for the last plan year ended on or before the Closing Date, or if there is no prior plan year for any such plan, contributions have been based upon
reasonable actuarial assumptions and methods. 
  
 7.10.12
Welfare Benefit Plans. As of the Closing Date, Borrower does not participate in a “multiple employer welfare arrangement” within the meaning of Section 3(40) of ERISA. Except as disclosed in Exhibit 7.10 hereto, Borrower does
not, as of the Closing Date, maintain or contribute to a “voluntary employees’ beneficiary association” within the meaning of Section 501(c)(9) of the Code or a “welfare benefit fund” within the meaning of Section 419 of the
Code, nor does Borrower maintain or contribute to any employee welfare benefit plan within the meaning of Section 3(1) of ERISA for the benefit of retired or former employees (other than as required by Section 4980B of the Code and Sections 601
through 608 of ERISA (“COBRA”) or other applicable law). Borrower has complied in all material respects with the applicable provisions of COBRA with respect to the Borrower Benefit Plans. 
  
 7.11 Equity Investments. Borrower does not, as of the Closing Date,
own any stock or other voting or equity interest, directly or indirectly, in any Person valued at the greater of book value or market value at $5,000,000 or more, other than as set forth on Exhibit 7.11 hereto. 
  
 7.12 Title to Real and Personal Property. Borrower and each Subsidiary
(a) have all real and personal property necessary for the conduct of their respective business, and (b) have good and marketable title to, or valid leasehold interests in, all of their material properties and assets, real and personal, including, as
of the Closing Date, the properties and assets and leasehold interests reflected in the financial statements of the Borrower and its Subsidiaries referred to in Section 7.13 hereof, except (i) any properties or assets disposed of in the ordinary
course of business, (ii) rights of way, easements, and similar interests in real property or defects in title which in the aggregate could not reasonably be expected to result in a Material Adverse Effect, and (iii) Permitted Encumbrances; and none
of the properties of Borrower or any Subsidiary are subject to any Lien, except Permitted Encumbrances. All such property is in good 
  

 33 

 operating condition and repair, reasonable wear and tear excepted, and suitable in all material respects for the purposes
for which it is being utilized except where their failure to be in good operating condition could not reasonably be expected to result in a Material Adverse Effect. All of the leases of Borrower and each Subsidiary which constitute Material
Agreements are in full force and effect and afford Borrower or such Subsidiary peaceful and undisturbed possession of the subject matter thereof. 
  
 7.13 Financial Statements. The consolidated balance sheets of Borrower and its Subsidiaries for the Fiscal Quarter ended January 3, 2004, and the
related consolidated statements of operations, cash flows and consolidated statements of capital shares and equities for the Fiscal Quarter then ended, and the accompanying footnotes, copies of which have been furnished to the Administrative Agent
and the Syndication Parties, fairly present in all material respects the consolidated financial condition of Borrower and its Subsidiaries as at such dates and the results of the consolidated operations of Borrower and its Subsidiaries for the
periods covered by such statements, all in accordance with GAAP. Between January 3, 2004 and the Closing Date, there has been no material adverse change in the financial condition, results of operations, or business of Borrower or any of its
Subsidiaries taken as a whole. As of the Closing Date, there are no liabilities of Borrower or any of its Subsidiaries, fixed or contingent, which are material but are not reflected in the financial statements of Borrower and its Subsidiaries
referred to above or referred to in the notes thereto, other than liabilities arising in the ordinary course of business since January 3, 2004 or referred to in periodic filings of Borrower with the Securities and Exchange Commission subsequent to
January 3, 2004 but prior to the Closing Date, copies of which have been provided to the Administrative Agent by Borrower. No information, exhibit, or report furnished by Borrower or any of its Subsidiaries to the Administrative Agent and the
Syndication Parties in connection with Borrower’s application for the Revolving Loans and the negotiation of this Credit Agreement contained any material misstatement of fact or omitted to state a material fact or any fact necessary to make the
statements contained therein not materially misleading in light of the circumstances in which they were made and taken together with the other information, exhibits and reports furnished to the Administrative Agent and the Syndication Parties.

  
 7.14 Environmental Compliance. Except as set forth on
Exhibit 7.14 hereto, Borrower and each Subsidiary have obtained all permits, licenses and other authorizations which are required under all applicable Environmental Laws, except to the extent failure to have any such permit, license or
authorization could not reasonably be expected to result in a Material Adverse Effect. Except as set forth on Exhibit 7.14 hereto, Borrower and each Subsidiary are in compliance with all Environmental Laws and the terms and conditions of the
required permits, licenses and authorizations, and are also in compliance with all other limitations, restrictions, obligations, schedules and timetables contained in those Laws or contained in any plan, order, decree, judgment, injunction, notice
or demand letter issued, entered, promulgated or approved thereunder, except to the extent, in each case, failure to comply has not resulted in, and could not reasonably be expected to result in, a Material Adverse Effect. 
  

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 7.15 Fiscal Year. Each fiscal year of Borrower is a year (a) ending on the Saturday closest to
September 30 in each calendar year, regardless of whether such Saturday occurs in September or October of any calendar year and (b) beginning on the day immediately following the end of the preceding Fiscal Year. 
  
 7.16 Material Agreements. The periodic reports of Borrower filed with
the Securities and Exchange Commission, copies of which have been provided to the Administrative Agent by Borrower, and/or Exhibit 7.16 hereto list each Material Agreement of the Borrower and each Subsidiary as of the Closing Date. Borrower
is not in default under any of its Material Agreements, nor, to Borrower’s knowledge, (a) is any other party to any of Borrower’s Material Agreements in default thereunder, or (b) do any facts exist which with the giving of notice or the
passage of time, or both, would constitute such a default by any party to any of Borrower’s Material Agreement. 
  
 7.17 Regulations U and X. No portion of any Advance will be used for the purpose of purchasing, carrying, or making loans to finance the purchase
of, any “margin security” or “margin stock” as such terms are used in Regulations U or X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and 224. 
  
 7.18 Trademarks, Tradenames. Borrower and each Subsidiary have
ownership or the lawful right to use all tradenames, trademarks, patents, and other intellectual property which they utilizes in their business as presently being conducted and as anticipated to be conducted, except where the failure to do so could
not reasonably be expected to result in a Material Adverse Effect. 
  
 7.19 No Default on Outstanding Judgments or Orders. Borrower and each Subsidiary have satisfied all final and non-appealable judgments and Borrower and each Subsidiary are not in default with respect to any judgment, writ,
injunction, decree, rule or regulation of any court, arbitrator or federal, state, municipal or other Governmental Authority, commission, board, bureau, agency or instrumentality, domestic or foreign, except to the extent such failure to satisfy any
or all such final and non-appealable judgments or to be in such a default has not resulted in, and could not reasonably be expected to result in, a Material Adverse Effect. 
  
 7.20 No Default in Other Agreements. Neither Borrower nor any Subsidiary is in default in any respect in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument where such failure to perform, observe or fulfill has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect. 
  
 7.21 Labor Matters; Labor
Agreements. Except as set forth in Exhibit 7.21 hereof: (a) As of the Closing Date, there are no collective bargaining agreements or other labor agreements covering any employees of Borrower or any Subsidiary the termination, cessation,
or breach of which could reasonably be expected to result in a Material Adverse Effect, and a true and correct copy of each such agreement will be furnished to the Administrative Agent upon its written request from time to time. (b) There is no
organizing activity involving Borrower or any Subsidiary pending or, to Borrower’s knowledge, threatened by any labor union or group of employees. (c) There are, to Borrower’s knowledge, no representation proceedings pending or threatened
with the National Labor Relations Board, and no labor organization or group of employees of Borrower or any Subsidiary has made a pending demand for recognition. (d) There are no complaints or charges against Borrower or any Subsidiary pending or,
to 
  

 35 

 Borrower’s knowledge threatened to be filed with any federal, state, local or foreign court, governmental agency or
arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment by Borrower or any Subsidiary of any individual. (e) There are no strikes or other labor disputes against Borrower or any
Subsidiary that are pending or, to Borrower’s knowledge, threatened. (f) Hours worked by and payment made to employees of Borrower or any Subsidiary have not been in violation of the Fair Labor Standards Act (29 U.S.C. § 201 et seq.) or
any other applicable law dealing with such matters. The representations made in subparagraphs (b) through (f) of this Section are made with respect to those occurrences described which could, considered in the aggregate, reasonably be expected to
have a Material Adverse Effect. 
  
 7.22 Governmental
Regulation. Neither Borrower nor any Subsidiary is subject to regulation under the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940, the Interstate Commerce Act, the Federal Power Act or any statute or regulation,
in each case, limiting its ability to incur indebtedness for money borrowed as contemplated hereby. 
  
 7.23 Borrower Information . To the best of Borrower’s knowledge, the information contained in, and all attachments to, the materials presented
by Borrower at the bank group meeting on February 24, 2004 were, as of such date, and are as of the Closing Date, accurate, true, correct, and complete in all material respects, and not misleading in any material respect. 
  
 7.24 Financial Projections. The Financial Projections provided to the
Administrative Agent and the Syndication Parties with respect to Borrower and its Subsidiaries fairly present, as of the Effective Date, in all material respects the projected operations, financial condition, assets and liabilities as of the dates
covered thereby. To Borrower’s knowledge, no undisclosed facts existed at the time of submission of the Financial Projections which, if taken into account, would have resulted in any material change in any of the Financial Projections. The
Financial Projections were, at the time of submission, based upon reasonable estimates and assumptions, all of which were fair in light of then-current conditions, were prepared on the basis of the assumptions stated therein, and reflected the
reasonable estimate of Borrower of the results of operations and other information projected therein. Nothing in this Section shall be deemed to constitute an assurance by Borrower that it will meet the results contained in the Financial
Projections. 
  
 7.25 Solvency. After giving effect to the
consummation of each Loan to be made under this Agreement as of the time this representation is given, Borrower (a) will be able to pay its debts as they become due, (b) will have funds and capital sufficient to carry on its business and all
businesses in which it is about to engage, and (c) will own 
  

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 property in the aggregate having a value both at fair valuation and at fair saleable value in the ordinary course of
Borrower’s business greater than the amount required to pay its Debt, including for this purpose unliquidated, contingent, and disputed claims. 
  
 7.26 Anti-Terrorism Laws. 
  
 7.26.1 Violation of Law. Neither the Borrower nor, to the knowledge of Borrower, any of its Subsidiaries, is in violation of any laws relating to
terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (“Executive Order”), and the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. 
  
 7.26.2 Classification. Neither Borrower nor, to the knowledge of Borrower, any of its Subsidiaries, or their respective brokers or other agents
acting or benefiting in any capacity in connection with the Loans, is any of the following: 
  
 (a) a Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; 
  
 (b) a Person or entity owned or controlled by, or acting for or on behalf of, any Person or entity that is listed in the annex to, or is otherwise
subject to the provisions of, the Executive Order; 
  
 (c) a
Person or entity with which any Syndication Party is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; 
  
 (d) a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; or 

 
 (e) a Person or entity that is named as a “specially designated
national and blocked person” on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list.

  
 7.26.3 Conduct of Business. Neither Borrower nor to the
knowledge of Borrower, any of its brokers or other agents acting in any capacity in connection with the Loans (a) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any
Person described in clause (b) of Subsection 7.26.2 above, (b) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (c) engages in or conspires to engage in
any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 
  
 7.27 Disclosure. The representations and warranties contained in this Article 7 and in the other Loan Documents and
in any financial statements provided to the 
  

 37 

 Administrative Agent do not contain any untrue statement of a material fact or omit to state a material fact necessary to
make such representations or warranties not misleading; and all projections provided to the Administrative Agent were prepared in good faith based on reasonable assumptions. 
  
 ARTICLE 8. CONDITIONS TO CLOSING AND TO ADVANCES 
  
 8.1 Conditions to Closing. The obligation of the Syndication Parties to make the initial Advance hereunder is subject
to satisfaction, in the sole discretion of the Administrative Agent and the Syndication Parties, of each of the following conditions precedent: 
  
 8.1.1 Loan and Amendment Documents; Possession of Collateral; and Pilgrim Guaranty. The Administrative Agent shall have received: (a) duly executed
originals of the Amendment Documents, and other Loan Documents; and (b) the Pilgrim Guaranty duly executed by Pilgrim Ltd. (or, at the Administrative Agent’s election, an amendment to the Guaranty or an affirmation and consent executed by
Pilgrim Ltd. with respect to the Pilgrim Guaranty). 
  
 8.1.2
Approvals. The Administrative Agent shall have received evidence satisfactory to it that all consents and approvals of governmental authorities and third parties which are with respect to Borrower necessary for, or required as a condition of the
validity and enforceability of, the Loan Documents to which it is a party. 
  
 8.1.3 Organizational Documents. The Administrative Agent shall have received the following, dated no more than thirty (30) days prior to the Closing Date: (a) good standing certificate (or comparable), for
Borrower for its state of incorporation and the states of Arkansas and Texas; (b) a copy of the certificate of incorporation of Borrower certified by the Secretary of State of its state of organization; and (c) a copy of the bylaws of Borrower,
certified as true and complete by the Secretary or Assistant Secretary of Borrower. 
  
 8.1.4 Evidence of Insurance. Borrower shall have provided the Administrative Agent with insurance certificates and such other evidence, in form and substance satisfactory to the Administrative Agent, of all
insurance required to be maintained by it under the Loan Documents. 
  
 8.1.5 Appointment of Agent for Service.. The Administrative Agent shall have received evidence satisfactory to the Administrative Agent (which, unless the Administrative Agent specifically advised Borrower to the contrary, shall
include any such evidence provided in connection with the 2000 Credit Agreement unless such evidence has been subsequently rescinded or terminated) that Borrower. has appointed a Person with offices in Denver, Colorado and otherwise reasonably
acceptable to the Administrative Agent to serve as its agent for service of process, and that said Person has accepted such appointment by Borrower. 
  
 8.1.6 No Material Change. No change shall have occurred in the condition or operations of Borrower or any Subsidiary since January 3, 2004 which,
when considered in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  

 38 

 8.1.7 Fees and Expenses. Borrower shall have paid the Administrative Agent, by wire transfer of
immediately available federal funds all fees set forth in the Fee Letter between CoBank and Borrower dated February 21, 2004 (“Fee Letter”) and the Mandate Letter between CoBank, Agriland, and Borrower dated February 21, 2004 and
Summary of Terms and Conditions attached thereto (collectively “Commitment Letter”), and any other fees owing to the Administrative Agent which are due on the Closing Date, and all expenses owing as of the Closing Date pursuant to
Section 14.1 hereof and for which Borrower has received an invoice. 
  
 8.1.8 Evidence of Corporate Action. The Administrative Agent shall have received in form and substance satisfactory to the Administrative Agent (a) documents, certified to be true and correct by the Secretary or Assistant Secretary
of Borrower, evidencing all corporate action taken by Borrower to authorize (including the specific names and titles of the persons authorized to so act (each an “Authorized Officer”)) the execution, delivery and performance of the
Amendment Documents to which it is a party; and (b) a certificate of the Secretary or Assistant Secretary of Borrower, dated the Closing Date, certifying the names and true signatures of the Authorized Officers. 
  
 8.1.9 Opinion of Counsel. Borrower shall have provided a favorable
opinion of its counsel addressed to the Administrative Agent and each of the present and future Syndication Parties, covering such matters as the Administrative Agent may reasonably require, including, without limitation, due incorporation,
authorization and execution, enforceability, usury, no impairment as to the creation and perfection of real and personal property liens on the Collateral in relevant jurisdiction, fees, taxes and qualification requirements. 
  
 8.1.10 Renewal of Harris Loan. Borrower shall have provided to the
Administrative Agent such proof satisfactory to the Administrative Agent of the concurrent renewal of the Harris Loan in a minimum amount of $100,000,000.00 and for a minimum period of three (3) years. 
  
 8.1.11 Financial Projections. Borrower shall have provided to the
Administrative Agent financial projections for the five (5) Fiscal Years, commencing with the Fiscal Year during which the Closing Date falls, acceptable to the Administrative Agent and which demonstrates Borrower’s reasonable ability to repay
all amounts owing hereunder, under the Harris Loan, and under the Hancock Loan, in each case as scheduled. 
  
 8.1.12 Further Assurances. Borrower shall have provided and/or executed and delivered to the Administrative Agent such further assignments,
documents or financing statements, in form and substance satisfactory to the Administrative Agent, that Borrower is to execute and/or deliver pursuant to the terms of the Loan Documents or as the Administrative Agent may reasonably request.

  

 39 

 8.2 Borrowing Notice; Funding Notice. Borrower shall give the Administrative Agent prior written
notice by facsimile (effective upon receipt) of each request for an Advance (a) in the case of a Base Rate Loan, on or before 11:00 A.M. (Central time) on the day of making such Base Rate Loan, and (b) in the case of a LIBO Rate Loan, on or before
11:00 A.M. (Central time) at least three (3) Banking Days prior to the date of making such LIBO Rate Loan. Each notice must be in substantially the form of Exhibit 8.2 hereto (“Borrowing Notice”) and must specify (c) the
amount of such Advance, (d) the proposed date of making such Advance, (e) whether Borrower requests that the Advance will bear interest at (i) the Base Rate or (ii) the LIBO Rate, and (f) in the case of a LIBO Rate Loan, the initial LIBO Rate Period
applicable thereto. The Administrative Agent shall, on or before 12:00 noon (Central time) of the same Banking Day, notify each Syndication Party (“Funding Notice”) of its receipt of each such Borrowing Notice and the amount of such
Syndication Party’s Funding Share thereunder. Not later than 2:00 P.M. (Central time) on the date of an Advance, each Syndication Party will make available to the Administrative Agent at the Administrative Agent’s Office, in immediately
available funds, such Syndication Party’s Funding Share of such Advance. After the Administrative Agent’s receipt of such funds, but not later than 3:00 P.M. (Central time), and upon fulfillment of the applicable conditions set forth in
Article 8 hereof, the Administrative Agent will make such Advance available to Borrower, in immediately available funds, and will transmit such funds by wire transfer to Borrower’s Account. 
  
 8.3 Conditions to Advance. The Syndication Parties’ obligation to
fund each Advance is subject to (a) receipt of a properly completed Borrowing Notice, and (b) the satisfaction, in the sole discretion of the Administrative Agent and the Syndication Parties, of each of the following conditions precedent, in
addition to those set forth in Sections 8.1 and 8.2 hereof, and each request by Borrower for an Advance shall constitute a representation by Borrower, upon which the Administrative Agent and Syndication Parties may rely, that the conditions set
forth in this Section have been satisfied and that the amount of the Advance does not exceed the limits set forth in Section 2.1 hereof: 
  
 8.3.1 Default. As of the Advance Date no Event of Default or Potential Default shall have occurred and be continuing, and the disbursing of the
amount of the Advance requested shall not result in an Event of Default or Potential Default. 
  
 8.3.2 Availability Period. The Borrowing Notice does not specify an Advance Date which is later than the last Banking Day of the Availability Period. 
  
 8.3.3 Representations and Warranties; Fees and Expenses. The
representations and warranties of Borrower herein shall be true and correct in all material respects on and as of the date on which the Advance is to be made as though made on such date. Borrower shall have paid the Administrative Agent, by wire
transfer of immediately available U.S. funds all fees set forth in Section 3.5 hereof and in the Fee Letter and the Commitment Letter, in each case executed by CoBank and Borrower, which are then due and payable, including all expenses owing as of
the Advance Date pursuant to Section 14.1 hereof for which Borrower has received an invoice. 
  

 40 

 8.3.4 No Material Change. No change shall have occurred in the condition or operations of Borrower
or any Subsidiary since the date of the financial statements (quarterly or annual, as applicable) most recently provided by Borrower to the Administrative Agent pursuant to Subsection 9.2.1 or 9.2.2 hereof, as applicable, (or the comparable
provisions of the 2000 Credit Agreement) which, when considered in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  
 8.4 Limitation on LIBO Rate Loans. Anything herein to the contrary notwithstanding, if, on or prior to the determination of the LIBO Rate for any
LIBO Rate Period: 
  
 (a) The Administrative Agent determines
(which determination shall be conclusive) that quotations of interest rates in the definition of LIBO Rate are not being provided in the relevant amounts or for the relevant maturities for purposes of determining rates of interest for LIBO Rate
Loans as provided in this Credit Agreement; or 
  
 (b) any
Syndication Party determines (which determination shall be conclusive) that the relevant rates of interest referred to in the definition of LIBO Rate upon the basis of which the rate of interest for LIBO Rate Loans for such LIBO Rate Period is to be
determined do not adequately cover the cost to such Syndication Party of making or maintaining such LIBO Rate Loans for such LIBO Rate Period; 
  
 then the Administrative Agent shall give Borrower prompt notice thereof, and so long as such condition remains in effect, in the case of clause (a) above, the Syndication
Parties, and in the case of clause (b) above, the Syndication Party that makes the determination, shall be under no obligation to make LIBO Rate Loans, convert Base Rate Loans into LIBO Rate Loans, or continue LIBO Rate Loans, and Borrower shall, on
the last day(s) of the then current applicable LIBO Rate Period(s) for the outstanding LIBO Rate Loans, either prepay such LIBO Rate Loans or convert such LIBO Rate Loans into a Base Rate Loan in accordance with Section 3.1 hereof. In addition to
the foregoing, in the event a determination is made under clause (b) above, Borrower shall have the right, but not the obligation, upon written notice to the Administrative Agent, on or before 10:00 A.M. (Central time) on or before ten (10) Banking
Days following receipt of notice from the Administrative Agent of such condition, to reduce the Individual Commitment of such Syndication Party to zero upon making a prepayment, to be treated as a Voluntary Payment to the extent not inconsistent
with the provisions of this Section, equal to the amount of such Syndication Party’s Individual Outstanding Obligations plus any Funding Losses attributed to the portion of such payment applied to LIBO Rate Loans as provided below. In the event
Borrower makes such an election, then a reduction in a dollar amount corresponding to such reduction in Individual Commitment shall be made to the Aggregate Commitment, and, notwithstanding any provisions of this Credit Agreement to the contrary,
including, without limitation, Section 2.8, the amount of such prepayment shall be applied to outstanding LIBO Rate 
  

 41 

 Loans to the extent of such Syndication Party’s Pro Rata Share thereof and, along with the amount paid on account of
such Funding Losses, distributed to the Syndication Party making such determination and as to which Borrower has made such election. 
  
 8.5 Illegality of Loan. Notwithstanding any other provision of this Credit Agreement, in the event that it becomes unlawful for any Syndication
Party or its Applicable Lending Office to honor its obligation to make or maintain LIBO Rate Loans hereunder or convert Base Rate Loans into LIBO Rate Loans, then such Syndication Party shall promptly notify the Administrative Agent and Borrower
thereof and such Syndication Party’s obligation to make or continue, or to convert Base Rate Loans into, LIBO Rate Loans shall be suspended until such time as such Syndication Party may again make and maintain LIBO Rate Loans (in which case the
provisions of Section 8.6 hereof shall be applicable) and, unless and until Borrower exercises the rights granted in the next sentence, such Syndication Party’s Individual Pro Rata Share, of all Loans and all subsequent Advances shall be made
as Base Rate Loans (and such Syndication Party’s share of interest payments shall reflect the foregoing), in each case, until such time as such Syndication Party may again make and maintain LIBO Rate Loans (in which case the provisions of
Section 8.6 hereof shall be applicable). In the event a such a notification is made, Borrower shall have the right, but not the obligation, upon written notice to the Administrative Agent, on or before 10:00 A.M. (Central time) on or before ten (10)
Banking Days following receipt of notice from such Syndication Party, to reduce the Individual Commitment of such Syndication Party to zero upon making a prepayment, to be treated as a Voluntary Payment to the extent not inconsistent with the
provisions of this Section, equal to the amount of such Syndication Party’s Individual Outstanding Obligations plus any Funding Losses attributed to the portion of such payment applied to LIBO Rate Loans as provided below. In the event Borrower
makes such an election, then, notwithstanding any provisions of this Credit Agreement to the contrary, including, without limitation, Section 2.8: the amount of such prepayment shall be applied to outstanding LIBO Rate Loans to the extent of such
Syndication Party’s Pro Rata Share thereof and, along with the amount paid on account of such Funding Losses, distributed to the Syndication Party making such determination and as to which Borrower has made such election. 
  
 8.6 Treatment of Affected Loans. If the obligations of any Syndication
Party to make or continue LIBO Rate Loans, or to convert Base Rate Loans into LIBO Rate Loans, are suspended pursuant to Section 8.4 or 8.5 hereof (all LIBO Rate Loans so affected being herein called “Affected Loans”), such
Syndication Party’s Affected Loans shall be automatically converted into Base Rate Loans on the last day(s) of the then current LIBO Rate Period(s) for the Affected Loans (or, in the case of a conversion required by Section 8.4 or 8.5, on such
earlier date as such Syndication Party may specify to Borrower). To the extent that such Syndication Party’s Affected Loans have been so converted, all payments and prepayments of principal which would otherwise be applied to such Syndication
Party’s Affected Loans shall be applied instead to its Base Rate Loans. All Advances which would otherwise be made or continued by such Syndication Party as LIBO Rate Loans shall be made or continued instead as Base Rate Loans, and all Base
Rate Loans of such Syndication Party which would otherwise be converted into LIBO Rate Loans shall remain as Base Rate Loans. 
  

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 ARTICLE 9. AFFIRMATIVE COVENANTS 
  
 From and after the date of this Credit Agreement and until the Bank Debt is indefeasibly paid in full and the Syndication
Parties have no obligation to make an Advance, Borrower agrees that it will observe and comply with the following covenants for the benefit of the Administrative Agent and Syndication Parties: 
  
 9.1 Books and Records. Borrower shall at all times keep, and cause
each Subsidiary to keep, proper books of record and account, in which correct and complete entries shall be made of all its dealings, in accordance with GAAP. 
  

9.2 Reports and Notices. Borrower shall provide to the Administrative Agent the following reports, information and notices: 
  
 9.2.1 Annual Financial Statements. As soon as available, but in no
event later than ninety (90) days after the end of any Fiscal Year of Borrower occurring during the term hereof one copy of the audit report for such year and accompanying consolidated financial statements (including all footnotes thereto),
including a consolidated balance sheet, a consolidated statement of earnings, a consolidated statement of capital, and a consolidated statement of cash flow for the Borrower and its Subsidiaries, showing in comparative form the figures for the
previous Fiscal Year, all in reasonable detail, prepared in conformance with GAAP consistently applied and certified without qualification by Ernst & Young, LLP, or other independent public accountants of nationally recognized standing selected
by the Borrower and reasonably satisfactory to the Administrative Agent, and to be accompanied by a copy of any management letter of such accountants addressed to and received by the board of directors of Borrower related to such annual audit and
annual financial statements. Such annual financial statements required pursuant to this Subsection shall be accompanied by a Compliance Certificate signed by Borrower’s Chief Financial Officer. 
  
 9.2.2 Quarterly Financial Statements. As soon as available but in no
event more than forty-five (45) days after the end of each Fiscal Quarter (excluding the last Fiscal Quarter of Borrower’s Fiscal Year) the following financial statements or other information concerning the operations of Borrower and its
Subsidiaries for such Fiscal Quarter, the Fiscal Year to date, and for the corresponding periods of the preceding Fiscal Year, all prepared in accordance with GAAP consistently applied: (a) a consolidated balance sheet, (b) a consolidated summary of
earnings, (c) a consolidated statement of cash flows, and (d) such other statements as the Administrative Agent may reasonably request. Such quarterly financial statements required pursuant to this Subsection shall be accompanied by a Compliance
Certificate signed by Borrower’s Chief Financial Officer or other officer of Borrower acceptable to the Administrative Agent (subject to normal year end adjustments). 
  
 9.2.3 Notice of Default. As soon as the existence of any Event of Default or Potential Default becomes known to any
officer of Borrower, prompt written notice of such Event of Default or Potential Default, the nature and status thereof, and the action being taken or proposed to be taken with respect thereto. 
  

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 9.2.4 ERISA Reports. As soon as possible and in any event within twenty (20) days after Borrower
or any Subsidiary knows or has reason to know that any Reportable Event (for which notice is not waived under ERISA or by regulation) or Prohibited Transaction (for which a statutory, class, or individual exemption has not been obtained) has
occurred with respect to any Plan or that the Pension Benefit Guaranty Corporation or Borrower or any Subsidiary has instituted or will institute proceedings under Title IV of ERISA to terminate any Plan, or that Borrower, any Subsidiary or any
ERISA Affiliate has completely or partially withdrawn from a Multiemployer Plan, or that a Plan which is a Multiemployer Plan is in reorganization (within the meaning of Section 4241 of ERISA), is insolvent (within the meaning of Section 4245 of
ERISA) or is terminating, a certificate of the Chief Financial Officer of Borrower or such Subsidiary setting forth details as to such Reportable Event or Prohibited Transaction or Plan termination or withdrawal or reorganization or insolvency and
the action Borrower or such Subsidiary proposes to take with respect thereto, provided, however, that notwithstanding the foregoing, no reporting is required under this Subsection unless the matter(s), individually or in the aggregate, result, or
could be reasonably expected to result, in aggregate obligations or liabilities of Borrower and/or the Subsidiaries in excess of ten million dollars ($10,000,000). 
  
 9.2.5 Notice of Litigation. Promptly after the commencement thereof, notice of all actions, suits, arbitration and
any other proceedings before any Governmental Authority, affecting Borrower or any Subsidiary which, if determined adversely to Borrower or any Subsidiary, could reasonably be expected to require Borrower or any Subsidiary to have to pay or deliver
assets having a value of ten million dollars ($10,000,000) or more (whether or not the claim is covered by insurance) or could reasonably be expected to result in a Material Adverse Effect. 
  
 9.2.6 Notice of Material Adverse Effect. Promptly after Borrower
obtains knowledge thereof, notice of any matter which, alone or when considered together with other matters, has resulted or could reasonably be expected to result in, a Material Adverse Effect. 
  
 9.2.7 Notice of Environmental Proceedings. Without limiting the
provisions of Subsection 9.2.5 hereof, promptly after Borrower’s receipt thereof, notice of the receipt of all pleadings, orders, complaints, indictments, or other communication alleging a condition that may require Borrower or any Subsidiary
to undertake or to contribute to a cleanup or other response under Environmental Regulations, or which seeks penalties, damages, injunctive relief, or criminal sanctions related to alleged violations of such laws, or which claims personal injury or
property damage to any person as a result of environmental factors or conditions or which, if adversely determined, could reasonably be expected to have a Material Adverse Effect. 
  
 9.2.8 Regulatory and Other Notices. Promptly after Borrower’s receipt thereof, copies of any notices or other
communications received from any Governmental Authority with respect to any matter or proceeding the effect of which could reasonably be expected to have a Material Adverse Effect. 
  

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 9.2.9 Adverse Action Regarding Required Licenses. As soon as Borrower learns that any petition,
action, investigation, notice of violation or apparent liability, notice of forfeiture, order to show cause, complaint or proceeding is pending, or, to the best of Borrower’s knowledge, threatened, to seek to revoke, cancel, suspend, modify, or
limit any of the Required Licenses, prompt written notice thereof and Borrower shall contest any such action in a Good Faith Contest. 
  
 9.2.10 Notice of Certain Changes. Borrower shall: (a) notify the Administrative Agent at least ten (10) Banking Days prior to the occurrence of any
change in the name or business form of Borrower; and (b) take all actions necessary or reasonably requested by Agent in order to maintain the perfected status of the first lien and security interest of Agent and the Syndication Parties (subject only
to Permitted Encumbrances) in the Collateral. 
  
 9.2.11
Available Amount Reports. If any Advance is made during any Fiscal Quarter, then, no later than forty-five (45) days after the end of such Fiscal Quarter, unless the outstanding principal balance owing under the Revolving Loans on any Advance
Date (including the Advance requested for such date in a Borrowing Notice) exceeds ninety percent (90%) of the Aggregate Commitment, in which case an Available Amount Report effective as of the date of such Borrowing Notice must accompany the
Borrowing Notice (the appropriate date in either case being the “Available Amount Report Deadline”), a report in the form of Exhibit 9.2.11 attached hereto (“Available Amount Report”) effective as of the last
day of such Fiscal Quarter or the date of such Borrowing Notice, as applicable. In addition to delivery of the Available Amount Reports pursuant to the preceding sentence, Borrower shall be entitled, at its option to furnish an Available Amount
Report at any time between the Effective Date and December 31, 2004 (or such later date as may be agreed to by Borrower and the Administrative Agent) to reflect the addition for the Available Amount determination of the Additional Property with
respect to which each of the applicable requirements contained in Section 9.18 hereof have been fully met to the satisfaction of the Administrative Agent. Any time that, in connection with a Pari Passu Loan, Borrower requests the Administrative
Agent to execute an Intercreditor Agreement, Borrower shall provide to the Administrative Agent an endorsement to the Title Policy increasing the amount of insurance provided thereby (or a new Title Policy in the full amount, including any such
increase) if the following two conditions have occurred: (a) the maximum amount available under such Pari Passu Loan, together with the maximum amounts available under all Pari Passu Loans entered into since the most recent increase in the amount of
the Title Policy, is equal to or greater than $25,000,000.00, and (b) Borrower has since the most recent increase in the amount of the Title Policy, provided to the Administrative Agent one or more Available Amount Reports which, in the aggregate,
reflect an increase in the Appraised Value of the real estate (including any structures or other improvements thereon, other than equipment) included in the Collateral in an amount equal to or greater than $25,000,000.00. In the event an increase in
the amount of insurance available under the 
  

 45 

 Title Policy is required pursuant to the preceding sentence, the amount of such increase shall be the amount of the
aggregate increase in Appraised Value determined as provided in clause (b) thereof; provided that in no event shall Borrower be required to increase the amount of insurance provided under the Title Policy to the extent it would result in the amount
thereof being an amount in excess of (x) during the Availability Period, the Aggregate Commitment, or (y) at any time after the end of the Availability Period, the amount of Bank Debt owing. In the event the parcel or parcels of real estate with
respect to which there has been an increase in Appraised Value are insured by separate Title Policies, the increase in insured amount required above need only be provided with respect to those Title Policies. Available Amount Reports shall also be
provided as required by Section 9.15 and Subsection 13.5.6 hereof. 
  
 9.2.12 Appraisals. Borrower shall provide the Administrative Agent with Appraisals covering all interests required to be included within the Collateral: (a) on the earlier of (i) December 14, 2006, or (ii) the one hundred twentieth
(120th) day after the Margin Report Deadline for the Fiscal Quarter for which the Leverage Ratio is equal to or greater than fifty percent (50%), but not prior to December 31, 2004, (b) on each two year anniversary of the date Appraisals are
required pursuant to clause (a) or this clause (b), provided that if the Leverage Ratio for the Fiscal Quarter immediately preceding (or ending on) such date is less than fifty percent (50%), this requirement will be deferred on a Fiscal Quarter
basis so long as such ratio is maintained, and provided further that, unless otherwise agreed by the Required Lenders, any such deferrals pursuant to this clause (b) shall be for no more than 24 months, so that in any event an Appraisal will be
required no later than four years after the date the last previous Appraisal was required; and (c) as may be required in connection with Pari Passu Loans as provided herein. The requirements of the preceding sentence of this Subsection requiring
Borrower to furnish Appraisals shall cease to be applicable on and after the Conversion Date. Appraisals shall also be provided as required by Section 9.15 hereof (without regard to whether the Conversion Date shall have occurred), and may, at
Borrower’s option, be provided pursuant to the provisions of Section 9.18 hereof. 
  
 9.2.13 Filings and Reports. Promptly upon their becoming available, copies of all registration statements and regular periodic reports, if any, which Borrower shall have filed with the Securities and Exchange
Commission or any governmental agency substituted therefor, or any national securities exchange, including copies of Borrower’s form 10-K annual report, form 10-Q quarterly report and any Form 8-K report filed with the Securities and Exchange
Commission. 
  
 9.2.14 Additional Information. With
reasonable promptness, such other information respecting the condition or operations, financial or otherwise, of Borrower or any Subsidiary as any Syndication Party or the Administrative Agent may from time to time reasonably request. 
  
 9.3 Maintenance of Existence and Qualification. Borrower shall
maintain its corporate existence in good standing under the laws of its state of organization. Borrower shall, and shall cause each Subsidiary to, qualify and remain qualified as a foreign corporation or other entity in each jurisdiction in which
such qualification is necessary in view of its business, operations and properties except where the failure to so qualify has not and could not reasonably be expected to result in a Material Adverse Effect. 
  

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 9.4 Compliance with Legal Requirements and Agreements. Borrower shall, and shall cause each
Subsidiary to: (a) comply with all laws, rules, regulations and orders applicable to Borrower (or such Subsidiary, as applicable) or its business unless such failure to comply is the subject of a Good Faith Contest; and (b) comply with all
agreements, indentures, mortgages, and other instruments to which it (or any Subsidiary, as applicable) is a party or by which it or any of its (or any Subsidiary, or any of such Subsidiary’s, as applicable) property is bound; provided,
however, that the failure of Borrower to comply with this sentence in any instance not directly involving the Administrative Agent or a Syndication Party shall not constitute a Potential Default or an Event of Default unless such failure could
reasonably be expected to result in a Material Adverse Effect. 
  
 9.5 Compliance with Environmental Laws. Without limiting the provisions of Section 9.4 of this Credit Agreement, Borrower shall, and shall cause Subsidiary to, comply in all material respects with, and take all reasonable steps
necessary to cause all persons occupying or present on any properties owned or leased by Borrower (or any Subsidiary, as applicable) to comply with, all Environmental Regulations, the failure to comply with which could reasonably be expected to
result in a Material Adverse Effect or unless such failure to comply is the subject of a Good Faith Contest. 
  
 9.6 Taxes. Borrower shall cause to be paid, and shall cause each Subsidiary to pay, when due all taxes, assessments, and other governmental charges
upon it, its income, its sales, its properties (or upon Subsidiary and its income, sales, and properties, as applicable), and federal and state taxes withheld from its (or Subsidiary’s, as applicable) employees’ earnings, unless (a) the
failure to pay such taxes, assessments, or other governmental charges could not reasonably be expected to result in a Material Adverse Effect, or (b) such taxes, assessments, or other governmental charges are the subject of a Good Faith Contest.

  
 9.7 Insurance. Borrower shall, and shall cause each
Subsidiary to, maintain insurance coverage by good and responsible insurance underwriters in such forms and amounts and against such risks and hazards as are customary for companies engaged in similar businesses and owing and operating similar
properties, provided that Borrower and its Subsidiaries may self-insure for workmen’s compensation, group health risks and their live chicken inventory in accordance with applicable industry standards. In any event, Borrower will insure any of
the Collateral which is insurable against loss or damage by fire, theft, burglary, pilferage and loss in transit. In addition, to the extent that any real property interests which constitute a part of the Collateral lie within a designated flood
plain, Borrower must provide flood insurance with respect to such real property interests. All such policies of insurance shall be issued by sound and reputable insurers that, at the time of issuance or renewal of such policies, are accorded a
rating of A-XII or better by A.M. Best Company or A or better by Standard & Poor’s Corporation or Moody’s Investors Service, Inc. All liability policies shall name the 
  

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 Administrative Agent, for the benefit of the Syndication Parties, as additional insured as its interests may appear. All
such insurance policies shall be endorsed with a mortgagee’s or loss payable clause, as appropriate, in favor of the Administrative Agent, for the benefit of the Syndication Parties. Copies of the policy or policies evidencing all insurance
referred to in this Section and receipts for the payment of premiums thereon or certificates of such insurance satisfactory to the Administrative Agent shall be delivered to and held by the Administrative Agent. All such insurance policies shall
contain a provision requiring at least ten (10) days’ notice to the Administrative Agent prior to any cancellation for non-payment of premiums. Borrower shall give the Administrative Agent satisfactory written evidence of renewal or
substitution of all such policies. Borrower agrees to pay, or cause to be paid, all premiums on such insurance as they become due, and will not permit any condition to exist on or with respect to its assets which would wholly or partially invalidate
any insurance thereon. Borrower shall give immediate written notice to the insurance carrier and the Administrative Agent of any loss. Borrower hereby authorizes and empowers the Administrative Agent upon the occurrence and during the continuation
of an Event of Default, at the Administrative Agent’s option and in the Administrative Agent’s sole discretion, to, in so far as affects the Collateral, act as attorney-in-fact for Borrower to make proof of loss, to adjust and compromise
any claim under insurance policies, to collect and receive insurance proceeds, and to deduct therefrom the Administrative Agent’s expenses incurred in the collection of such proceeds, and all insurance policies of Borrower shall provide that
the Administrative Agent may act as Borrower’s attorney-in-fact for such purposes. 
  
 9.8 Title to and Maintenance of Properties. Borrower shall defend and maintain title to, and shall maintain, keep and preserve, and cause each Subsidiary to maintain, keep and preserve, all of its material
properties (tangible and intangible) necessary or used in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and shall cause to be made all repairs, renewals, replacements, betterments and
improvements thereof, all as in the sole judgment of Borrower or such Subsidiary may be reasonably necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times. 
  
 9.9 Inspection. Borrower (a) shall permit, and cause its Subsidiaries
to permit, the Administrative Agent or any Syndication Party or their agents, during normal business hours or at such other times as the parties may agree, to examine, and make copies of or abstracts from, Borrower’s properties, books, and
records, and to discuss Borrower’s affairs, finances, operations, and accounts with its respective officers, directors, employees, and independent certified public accountants; and (b) shall permit the Administrative Agent to obtain periodic
verification of the existence and condition, of the Collateral and Borrower shall reimburse the Administrative Agent for the reasonable costs incurred in connection with such verification, provided that so long as no Event of Default has occurred
and is continuing, Borrower shall not be required to reimburse the Administrative Agent for costs incurred under this clause (b) with respect to more than one such verification in each Fiscal Year. 
  

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 9.10 Required Licenses; Permits; Etc. Borrower shall duly and lawfully obtain and maintain in full
force and effect, and shall cause its Subsidiaries to obtain and maintain in full force and effect, all Required Licenses as appropriate for the business being conducted and properties owned by Borrower or such Subsidiaries at any given time except
where the failure to obtain or maintain such Required Licenses could not reasonably be expected to result in a Material Adverse Effect. 
  
 9.11 ERISA. Borrower shall (a) cause each Borrower Benefit Plan to comply in all material respects with the Code and ERISA; (b) cause any Borrower
Benefit Plan that is intended to satisfy the requirements of Section 401(a) of the Code to satisfy such requirements in all material respects; (c) prepare and deliver each material report, statement or other document required by ERISA and the Code
within the period specified therein and conforming in form and substance in all material respects to the provisions thereof; and (d) cause each Borrower Benefit Plan (other than a Multiemployer Plan) to be administered in all material respects in
accordance with the terms of each such plan and with ERISA, the Code, and any other applicable law, except to the extent any failure to comply with the preceding clauses (a), (b) (c), or (d) would not have a Material Adverse Effect. Within ten (10)
Banking Days after receiving such notice, Borrower shall furnish to Administrative Agent any written notice received by Borrower relating to an assertion of withdrawal liability imposed by any Multiemployer Plan upon Borrower or Borrower’s
controlled group, as defined in Code Section 414(b), (c), (m), or (o), or relating to any violation of the provisions of the Code or ERISA asserted by the Department of Labor, the Pension Benefit Guaranty Corporation or the Department of the
Treasury with respect to any Borrower Benefit Plan that could reasonably be expected to have a Material Adverse Effect. Borrower shall notify the Administrative Agent within sixty (60) days after: (l) commencing participation in any “multiple
employer plan” within the meaning of Section 413 of the Code; (m) commencing participation in a “multiple employer welfare arrangement” within the meaning of Section 3(40) of ERISA; or (n) establishing or becoming obligated to
contribute to any employee “retiree health plan” within the meaning of Section 3(1) of ERISA for the benefit of retired or former employees (other than as required by Section 4980B of the Code and Sections 601 through 608 of ERISA
(“COBRA”) or other applicable law). Borrower shall notify the Administrative Agent within sixty (60) days after Borrower has knowledge of the occurrence of any fact or event which would make any of the representations contained in
Subsections 7.10.2, 7.10.4, 7.10.6, or 7.10.10 hereof incorrect if such representations were made as of the date of such occurrence with respect to any Borrower Benefit Plan that is a Multiemployer Plan. 
  
 9.12 Financial Covenants. Borrower shall maintain the following
financial covenants, measured on the consolidated results of Borrower and its Subsidiaries: 
  
 9.12.1 Leverage Ratio. A Leverage Ratio of not in excess of 0.625 at any time. 
  
 9.12.2 Tangible Net Worth. Tangible Net Worth at all times during the periods from the Closing Date and at all times during each Fiscal Year
thereafter, of not less than an amount in any Fiscal Year of $600,000,000.00 plus an amount equal to 50% of Borrower’s Net Income (but not less than zero) during such Fiscal Year. 
  

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 9.12.3 Current Ratio. A Current Ratio measured as of the last day of each Fiscal Quarter of not
less than 1.35 to 1.00. 
  
 9.12.4 Net Tangible Assets to Total
Liabilities. A ratio of Net Tangible Assets to Total Liabilities measured as of the last day of each Fiscal Quarter of not less than 1.30 to 1.00. 
  
 9.12.5 Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio over the most recent eight consecutive Fiscal Quarters, measured as of the last
day of each Fiscal Quarter, of not less than 1.50 to 1.00. 
  
 9.12.6 Net Working Capital. Net Working Capital, measured as of the last day of each Fiscal Quarter during the periods set forth below, of not less than $85,000,000.00. 
  
 9.13 Appraised Property. No Available Amount Report will be based in any part on the Appraised Value of any real
property, or improvements, fixtures, machinery or equipment located on any real property, not, in either case, described in the deeds of trust executed, on or prior to the date of such Available Amount Report, by Borrower in connection with this
Credit Agreement. 
  
 9.14 Title Insurance Endorsements. As
soon as practical following the Effective Date, but in any event no later than thirty (30) days following the Effective Date, Borrower shall provide to the Administrative Agent with respect to each Title Policy provided to the Administrative Agent
in connection with the 2000 Credit Agreement (or its predecessor), either (a) new title policies issued by the Title Insurer which issued such Title Policy describing the mortgage or deed of trust insured thereunder (“Mortgage”) as
the Mortgage as amended by the appropriate Amendment Document and otherwise in substantially the same form as the Title Policy provided to the Administrative Agent in connection with the 2000 Credit Agreement (or its predecessor); or (b) for Texas
properties a P9(3)(b) endorsement; or (c) for other properties an endorsement thereto issued by the Title Insurer which issued such Title Policy (i) describing the insured Mortgage as the Mortgage as amended by the appropriate Amendment Document,
and (ii) bringing down the effective date of such Title Policy to the Closing Date. 
  
 9.15 Production Cut-back: In the event that Borrower takes action which results in a Permanent Reduction of Production at any facility included in Borrower’s most recent Available Amount Report
(“Shut Down”), then Borrower shall give the Administrative Agent written notice thereof no later than thirty (30) days after taking such action and shall, at Borrower’s option, either: (a) promptly arrange for an Appraisal of
such facility based on such Permanent Reduction of Production and, no later than ninety (90) days after taking such action, furnish the Administrative Agent with a copy of such Appraisal and a revised Available Amount Report, properly adjusted to
reflect the Appraised Value as shown in such Appraisal; or (b) no later than 
  

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 thirty (30) days after taking such action, furnish the Administrative Agent with a written request to (i) release its
lien on such facility and (ii) remove such facility from the Available Amount. In the event Borrower elects to proceed under clause (b) of this Section, at the time the Administrative Agent releases its lien, on behalf of the Syndication Parties, on
such facility, Borrower shall furnish the Administrative Agent with an Available Amount Report with the entire Appraised Value of such facility (as reflected in the most recent Appraisal thereof) removed from such Available Amount Report. In the
event Borrower elects to proceed under clause (a) of this Section, but fails to provide to the Administrative Agent the Appraisal or the Available Amount Report within the time required by such clause, such facility shall be deemed to have been
removed from the Available Amount Report (and therefore, from calculation of the Available Amount) until the Appraisal and revised Available Amount Report have been provided to the Administrative Agent. In the event Borrower elects to proceed under
clause (b) of this Section, but the Required Lenders refuse to authorize the Administrative Agent to release the lien on such facility (or the Administrative Agent refuses to release such lien where it has the power to effect such release without
Required Lender approval), (x) the Syndication Parties may, at their sole discretion and cost, obtain an Appraisal on such facility based upon such Permanent Reduction of Production (“Lender Appraisal”), in which case the
Administrative Agent shall furnish a copy of such Lender Appraisal to Borrower when received and such facility shall thereafter be included in the Available Amount and all subsequent Available Amount Reports at the Appraised Value established by
such Lender Appraisal; provided, however, that until such Lender Appraisal has been obtained and furnished to Borrower, such facility will continue to be included in the Available Amount Report (and therefore, included in the calculation of the
Available Amount) and all subsequent Available Amount Reports at the Appraised Value in effect prior to such Permanent Reduction of Production until a Lender Appraisal is obtained at the discretion of the Syndication Parties or an Appraisal is
obtained pursuant to Subsection 9.2.12 hereof. Notwithstanding the foregoing, in the event the Syndication Parties elect to proceed under clause (x) of this Section, Borrower shall have the option to remove such facility from the Available Amount
prior to the Syndication Parties obtaining the Lender Appraisal by providing the Administrative Agent with written notice of the exercise of such option and furnishing the Administrative Agent with an Available Amount Report with the entire
Appraised Value of such facility (as reflected in the most recent Available Amount Report prior to such Permanent Reduction of Production) removed from such Available Amount Report, in which case the Aggregate Commitment shall be reduced by an
amount equal to seventy-five per cent (75.0%) of the Appraised Value of such facility (as reflected in the most recent Available Amount Report prior to such Permanent Reduction of Production). Any such reduction in the Aggregate Commitment shall be
allocated among the Individual Commitments in the manner provided, and subject to the conditions and requirements, including payment requirements, set forth, in Section 2.8(b) and Section 9.15(x) hereof, and any such reduction shall be allocated
among the Individual Commitments as provided in such Section 2.8. At the time of furnishing the Administrative Agent with a revised Available Amount Report, and, if required pursuant to clause (a) of this Section, a revised Appraisal, or in the
event Borrower shall elect to proceed under clause (a) of 
  

 51 

 this Section but shall fail to provide the Appraisal or the Appraised Value Report to the Administrative Agent within the
time required, or at the time of the Syndication Parties furnishing a Lender Appraisal to Borrower pursuant to clause (x) of this Section, Borrower shall make the payment, if any, that would be required under Section 4.4(e) hereof if the aggregate
outstanding principal balance owing under the Revolving Loan (including the Converted Loans) exceeds the Available Amount as calculated pursuant to such Lender Appraisal or such revised Available Amount Report (or as calculated with the removal of
such facility, if applicable). 
  
 9.16 Embargoed Person.
At all times throughout the term of the Loans, (a) none of the funds or assets of Borrower that are used to repay the Loans shall constitute property of, or shall be beneficially owned directly or, to the knowledge of Borrower, indirectly by, any
Person subject to sanctions or trade restrictions under United States law (“Embargoed Person” or “Embargoed Persons”) that is identified on (1) the “List of Specially Designated Nationals and Blocked
Persons” (the “SDN List”) maintained by the Office of Foreign Assets Control (“OFAC”), U.S. Department of the Treasury, and/or to the knowledge of Borrower, as of the date thereof, based upon reasonable inquiry
by Borrower, on any other similar list (“Other List”) maintained by OFAC pursuant to any authorizing statute including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq.,
The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation promulgated thereunder, with the result that the investment in Borrower (whether directly or indirectly), is prohibited by law, or the Loans made
by the Syndication Parties would be in violation of law, or (2) the Executive Order, any related enabling legislation or any other similar Executive Orders, and (b) no Embargoed Person shall have any direct interest, and to the knowledge of
Borrower, as of the date hereof, based upon reasonable inquiry by Borrower, indirect interest, of any nature whatsoever in Borrower, with the result that the investment in Borrower (whether directly or indirectly), is prohibited by law or the Loans
are in violation of law. 
  
 9.17 Anti-Money Laundering. At
all times throughout the term of the Loans, to the knowledge of Borrower, as of the date hereof, based upon reasonable inquiry by Borrower, none of the funds of Borrower, that are used to repay the Loans shall be derived from any unlawful activity,
with the result that the investment in Borrower (whether directly or indirectly), is prohibited by law or the Loans would be in violation of law. 
  
 9.18 Additional Collateral. (a) Borrower, on or before December 31, 2004 (or such later date as may be agreed to by Borrower and the Administrative
Agent), shall, at its discretion, execute and deliver a deed of trust or mortgage and assignment of leases and rents with respect to the property listed on Exhibit 9.18 attached hereto and any other property reasonably acceptable to the
Administrative Agent (“Additional Property”), in form and substance satisfactory to the Administrative Agent, to the Administrative Agent or a mortgage trustee, in each case for the benefit of the Syndication Parties, granting a
first lien of record on and a first security interest in the Additional Property, subject only to Permitted Encumbrances, and such Additional Property shall thereafter be part of the Collateral. 
  

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 (b) Upon such time as Borrower, in addition to satisfying the requirements of clause (a) of this Section
9.18, shall, with respect to any such parcel of Additional Property, have provided to the Administrative Agent (i) a mortgagees’ title insurance policy (Standard Texas Mortgagees Policy Form with respect to Additional Property located in the
State of Texas, and Standard ALTA form with respect to Additional Property located in states other than Texas) from an insurer acceptable to the Administrative Agent insuring the lien in favor of the Administrative Agent, on behalf of the
Syndication Parties, as a first priority lien on each such parcel of Additional Property, subject only to Permitted Encumbrances, and (A) in such amount as the Administrative Agent shall require, (B) deleting the standard printed exceptions
(including exceptions for mechanics liens and exceptions based on lack of adequate survey) and the gap exception, (C) containing only such exceptions to title as are reasonably acceptable to the Administrative Agent, (D) providing access coverage,
and (E) containing such other endorsements as the Administrative Agent may reasonably require (but in any event including a revolving credit endorsement), (ii) a survey, which survey, the certifications thereon, and all information contained
therein, shall be acceptable to the Administrative Agent, and shall contain a legal description and, except as specifically provided otherwise on Exhibit 9.18, shall, at a minimum, show the location of all structures, visible utilities,
fences, hedges, or walls on the parcel and within 5 feet of all boundaries thereof, any conflicting boundary evidence or visible encroachments, and all easements, underground utilities, and tunnels for which properly recorded evidence is available;
and (iii) an Appraisal, then such Additional Property shall be a part of the Collateral and shall be included in the Available Amount. 
  
 (c) Borrower may include in the Available Amount any leasehold interest in connection with any Additional Property where Borrower is a lessee under a
recorded lease calling for a rental payment equal to or in excess of $100,000.00 per annum, provided that Borrower provides to the Administrative Agent, (i) a leasehold mortgage or deed of trust substantially in form and substance satisfactory to
the Administrative Agent, (ii) a Title Policy and survey satisfying the requirements set forth in clause (b) of this Section 9.18 (modified as necessary to reflect a leasehold, rather than fee, interest), (iii) a lessor consent in form and content
satisfactory to the Administrative Agent and containing such estoppels of the lessor of the leasehold estate as the Administrative Agent shall require; and (iv) an Appraisal. 
  
 (d) Notwithstanding anything contained in this Credit Agreement or the Loan Documents to the contrary, failure by Borrower
to complete the execution and delivery of deeds of trust or mortgages and assignments of leases and rents as described in this Section 9.18 by December 31, 2004 (or such later date as may be agreed to by Borrower and the Administrative Agent), shall
not be deemed a Potential Default or Event of Default. 
  

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 ARTICLE 10. NEGATIVE COVENANTS 
  
 From and after the date of this Credit Agreement until the Bank Debt is indefeasibly paid in full, and the Syndication
Parties have no obligation to make any Advance, Borrower agrees that it will observe and comply with, and, to the extent applicable, will cause its Subsidiaries to observe and comply with, the following covenants: 
  
 10.1 Borrowing. Borrower shall not (nor shall it permit any of its
Subsidiaries to) create, incur, or assume, directly or indirectly, any Debt, except for: 
  
 (a) indebtedness of Borrower arising under this Credit Agreement and the other Loan Documents; 
  
 (b) trade payables arising in the ordinary course of business; 
  

(c) Capital Leases in existence from time to time; 
  
 (d) current operating liabilities (other than trade payables or for borrowed money) incurred in the ordinary course of business; 
  
 (e) the Pari Passu Loans; 
  
 (f) secured Debt (other than Bank Debt and the Pari Passu Loans, but
including amounts owing under the Harris Loan, under the Hancock Loan, and under the Comerica Loan) in an aggregate amount at any time outstanding of up to the sum of (i) eighty-five percent (85%) of the book value of the outstanding accounts
receivable of Borrower and its Subsidiaries (as such account receivable would be shown on a consolidated balance sheet of Borrower and its Subsidiaries prepared in accordance with GAAP), less allowance for doubtful accounts, plus (ii)
seventy-five percent (75%) of the higher of book value or fair market value, determined in accordance with GAAP, of the assets of Borrower and its Subsidiaries, but excluding from such calculation under this clause (ii), the assets covered by clause
(i), the Collateral, and good will; 
  
 (g) unsecured Debt in any
amount provided that no more than $50,000,000.00 of unsecured indebtedness outstanding at any time (but excluding from such restriction, the Senior Unsecured Notes, the Senior Subordinated Notes, the Grower Settlement Agreements, and the Foreign
Subsidiary Debt) may provide for scheduled principal payments prior to the Maturity Date, and provided that with respect to any individual unsecured indebtedness of greater than $10,000,000.00 incurred after the Closing Date, Borrower must
demonstrate, to the satisfaction of the Administrative Agent, compliance with the covenants set forth at Section 9.12 hereof, on a pro forma basis taking into account such additional indebtedness, before such indebtedness is incurred; and

  
 (h) loans between Subsidiaries or between Borrower and
Subsidiaries, in each case either (i) in the ordinary course and pursuant to the reasonable requirements of Borrower’s business and consistent with demonstratable past practices; provided that any such loans to Borrower are expressly
subordinated to the prior payment in full in cash of all of Borrower’s indebtedness, obligations and liabilities to the Administrative Agent and the Syndication Parties under this Credit Agreement and the other Loan Documents; or (ii) in
connection with a Receivables Securitization Program. 
  

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 10.2 No Other Businesses. Borrower shall not, and shall not permit its Subsidiaries to, engage in
any material respects in any business activity or operations other than operations or activities (a) in the poultry industry, (b) in the processing, packaging, distribution, and wholesale sales of poultry products, or (c) which are not substantially
different from or are related to its present business activities or operations. 
  
 10.3 Liens. Borrower shall not (nor shall it permit any of its Subsidiaries to) create, incur, assume or suffer to exist any mortgage, pledge, lien, charge or other encumbrance on, or any security interest in,
any of its real or personal properties (including, without limitation, leasehold interests, leasehold improvements and any other interest in real property or fixtures), now owned or hereafter acquired, except the following (“Permitted
Encumbrances”): 
  
 (a) Liens for taxes or assessments
or other charges or levies of any Governmental Authority, that are not delinquent or if delinquent are the subject of a Good Faith Contest; 
  
 (b) Liens imposed by law, such as mechanic’s, worker’s, repairman’s, miner’s, agister’s, attorney’s, materialmen’s,
landlord’s, warehousemen’s and carrier’s Liens and other similar Liens which are securing obligations incurred in the ordinary course of business for sums not yet due and payable or, if due and payable, which (i) do not exceed an
aggregate at any one time of $20,000,000.00 or (ii) are the subject of a Good Faith Contest; 
  
 (c) Liens under workers’ compensation, unemployment insurance, social security or similar legislation (other than ERISA), or to secure payments of premiums for insurance purchased in the ordinary course of
business, or to secure the performance of tenders, statutory obligations, surety and appearance bonds and bids, bonds for release of an attachment, stay of execution or injunction, leases, government contracts, performance and return-of-money bonds
and other similar obligations, all of which are incurred in the ordinary course of business and not in connection with the borrowing of money; 
  
 (d) Any attachment or judgment Lien, the time for appeal or petition for rehearing of which shall not have expired or in respect of which Borrower or the
Subsidiary is protected in all material respects by insurance or for the payment of which adequate reserves have been provided, provided that the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are
the subject of a Good Faith Contest, and provided further that the aggregate amount of liabilities of Borrower and its Subsidiaries so secured (including interest and penalties) shall not be in excess of $20,000,000.00 at any one time outstanding;

  
 (e) Easements, rights-of-way, restrictions, encroachments,
covenants, servitudes, zoning and other similar encumbrances which, in the aggregate, 
  

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 do not materially interfere with the occupation, use and enjoyment by Borrower or any Subsidiary of the property or
assets encumbered thereby in the normal course of its business or materially impair the value of the property subject thereto; 
  
 (f) All precautionary filings of financing statements under the Uniform Commercial Code which cover property that is made available to or used by
Borrower or any Subsidiary pursuant to the terms of an Operating Lease or Capital Lease; 
  
 (g) Liens, other than on the Collateral, securing its reimbursement obligations under any letter of credit issued in connection with the acquisition of an asset; provided that (i) the lien attaches only to such asset,
and (ii) the lien is released upon satisfaction of such reimbursement obligation; 
  
 (h) Liens on the Collateral in connection with the Bank Debt or any permitted Pari Passu Loan; 
  
 (i) Liens on assets of Borrower or its Subsidiaries, other than on the Collateral, to secure indebtedness permitted under Sections 10.1(c) and 10.1(f);

  
 (j) Liens existing on the Effective Date and described on
Exhibit 10.3 hereto (as such Exhibit may be approved by the Administrative Agent); 
  
 (k) Liens on the accounts receivable of Borrower or its Subsidiaries or rights with respect thereto which are the subject of a Receivables Securitization Program; and 
  
 (l) Liens of Agriland on the Bank Equity Interests, and Liens of any other
Farm Credit System Institution on equity interests therein required to be purchased from time to time by Borrower. 
  
 10.4 Sale of Collateral. Borrower shall not (nor shall it permit any of its Subsidiaries to) sell, convey, assign, lease or otherwise transfer or
dispose of, voluntarily, by operation of law or otherwise (collectively “Disposition”), any of the Collateral except: (a) the Disposition of Collateral in the ordinary course of business, and which are either replaced or are no
longer necessary or useful for the business conducted at the facilities which are included within the Collateral; (b) without duplication of clause (a) or clause (c), the Disposition in any calendar year, in one or more events or transactions, of
Collateral with a book value in the aggregate of up to $5,000,000.00; and (c) the Disposition of Collateral utilized at a facility with respect to which there has been a Shut Down and as to which Borrower has elected to proceed under the provisions
of Section 9.15(b); provided that the following conditions are met: (x) in the case of clause (c), either (i) (A) the book value of such Collateral is $10,000,000.00 or less and the Administrative Agent has agreed on behalf of the Syndication
Parties, in advance of such sale, to release its lien thereon, and (B) the aggregate book value of all Collateral as to which the Administrative Agent has released, or is being asked to release, its lien in any calendar year pursuant to
clause (c) of this Section (excluding liens released upon the written authorization of the Required Lenders, as provided in clause (x)(ii) of this Section) shall not exceed $15,000,000.00, 
  

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 or (ii) (A) the book value of such Collateral is greater than $10,000,000.00 and/or (B) the aggregate book value of such
Collateral as to which the Administrative Agent has released, or is being asked to release, its lien in any calendar year pursuant to clause (c) of this Section is in excess of $15,000,000.00 and, (C) in either case (x)(ii)(A) or (x)(ii)(B), the
Required Lenders have provided written authorization to the Administrative Agent, in advance of such sale, to release its lien thereon on behalf of the Syndication Parties; (y) in the case of either clause (b) or clause (c), (i) such Disposition of
Collateral shall not cause or give rise to a Potential Default or an Event of Default, and (ii) at the time of any such Disposition of Collateral no Event of Default shall have occurred and be continuing; and (z) the full Appraised Value of such
Collateral shall be removed at the closing of the Disposition from the calculation of the Available Amount and no later than ten (10) days after closing such Disposition, Borrower shall furnish the Administrative Agent with a revised Available
Amount Report with the entire Appraised Value of the Collateral subject to such Disposition removed from such Available Amount Report. At the time of furnishing the Administrative Agent with a revised Available Amount Report, Borrower shall make the
payment, if any, that would be required under Section 4.4(d) hereof if the aggregate outstanding principal balance owing under the Revolving Loan (including the Converted Loans) exceeds the Available Amount as calculated without such Collateral
being included. 
  
 10.5 Liabilities of Others. Borrower
shall not (nor shall it permit any of its Subsidiaries to) assume, guarantee, become liable as a surety, endorse, contingently agree to purchase, or otherwise be or become liable, directly or indirectly (including, but not limited to, by means of a
maintenance agreement, or any other agreement designed to ensure any creditor against loss), for or on account of the obligation of any Person (other than the Bank Debt), except (a) by the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of the Borrower’s or any Subsidiary’s business, (b) the guarantee of the obligations of Borrower’s wholly owned Subsidiaries, (c) guarantees by any Subsidiary of the
indebtedness of Borrower under the Senior Unsecured Notes, the Senior Subordinated Notes, the Hancock Loan and the Harris Loan; provided that each such Subsidiary also executes a guaranty reasonably satisfactory in form and substance to the
Administrative Agent guaranteeing all of Borrower’s obligations under this Credit Agreement, the Notes, and all other Loan Documents; and (d) without duplication of clauses (b) or (c), guarantees made from time to time by Borrower and its
Subsidiaries in the ordinary course of their respective businesses; provided, however, that the aggregate amount of all indebtedness guaranteed at any time under this clause (d) shall not exceed $20,000,000 in the aggregate. 
  
 10.6 Loans. Borrower shall not (nor shall it permit any of its
Subsidiaries to) lend or advance money, credit, or property to any Person, except for: 
  
 (a) loans between Subsidiaries or between Borrower and Subsidiaries, in each case in the ordinary course and pursuant to the reasonable requirements of Borrower’s business and consistent with demonstratable past
practices; 
  

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 (b) trade credit extended in the ordinary course of business; 
  
 (c) loans and advances to employees and contract growers (other than
executive officers and directors of the Borrower or its Subsidiaries) for reasonable expenses incurred in the ordinary course of business and made on an arms length basis; 
  
 (d) loans and advances to officers and employees of Borrower and its Subsidiaries made in connection with such
officer’s or employee’s housing related expenses or loans associated with the procurement or sale of personal residences or necessary for the moving of key personnel, in an aggregate amount outstanding at any time not to exceed
$3,000,000.00; and 
  
 (e) loans and advances to contract growers
in an aggregate amount at any time not to exceed $25,000,000.00. 
  
 10.7 Merger; Acquisitions; Business Form; Etc. Borrower shall not (nor shall it permit any of its Subsidiaries to) merge or consolidate with any entity, or acquire all or substantially all of the assets of any person or entity, nor
shall Borrower change its business form from a corporation; provided, however, that the foregoing shall not prevent any such acquisition, consolidation, or merger if after giving effect thereto either clauses (a), (c) and (d) are satisfied or
clauses (b), (c), and (d) are satisfied, as such clauses are set forth below: 
  
 (a) Both (i) the fair market value of all consideration paid or payable (whether paid or payable in money, stock, or some other form, including, without limitation, by promissory note or some other installment
obligation) by Borrower and/or its Subsidiaries on account of all such mergers, consolidations or acquisitions does not exceed $100,000,000.00 in any Fiscal Year of Borrower, and (ii) Borrower (or, if the consolidation or merger is by a Subsidiary,
then the Subsidiary) is the surviving entity; 
  
 (b) The
consolidation or merger is between Borrower and a Subsidiary or subsidiary of a Subsidiary, and Borrower is the surviving entity, or the consolidation or merger is between a Subsidiary and another Subsidiary or a Subsidiary and the subsidiary of a
Subsidiary, and the Subsidiary is the surviving entity; 
  
 (c)
No Event of Default or Potential Default shall have occurred and be continuing; 
  
 (d) After giving effect to the merger or consolidation on a pro forma basis, there would be no Event of Default or Potential Default. 
  
 10.8 Investments. Borrower shall not (nor shall it permit any of its Subsidiaries to) own, purchase or acquire any
stock, obligations or securities of, or any other interest in, or make any capital contribution to, any Person, except that Borrower and the Subsidiaries may own, purchase or acquire: 
  
 (a) commercial paper maturing not in excess of one year from the date of acquisition and rated P1 by Moody’s Investors
Service, Inc. or A1 by Standard & Poor’s Corporation on the date of acquisition; 
  

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 (b) certificates of deposit in North American commercial banks rated C or better by Keefe, Bruyette
& Woods, Inc. or 3 or better by Cates Consulting Analysts, maturing not in excess of one year from the date of acquisition; 
  
 (c) obligations of the United States government or any agency thereof, the obligations of which are guaranteed by the United States government, maturing,
in each case, not in excess of one year from the date of acquisition; 
  
 (d) repurchase agreements of any bank or trust company incorporated under the laws of the United States of America or any state thereof and fully secured by a pledge of obligations issued or fully and unconditionally guaranteed by the
United States government; 
  
 (e) banker’s acceptances
maturing within one year issued by any bank or trust company organized under the laws of the United States or any state thereof and having capital, surplus and undivided profits of at least $50,000,000; 
  
 (f) Eurodollar time deposits maturing within six months purchased directly
from a bank meeting the requirements of 10.8(b); 
  
 (g) direct
obligations issued by any state of the United States or any political subdivision of any such state or public instrumentality thereof maturing within one year and having, at the time of acquisition, the highest rating obtainable from either Standard
& Poor’s Ratings Group, a division of McGraw Hill, Inc. or Moody’s Investors Service, Inc.; 
  
 (h) investments in mutual funds that invest not less than 95% of their assets in cash and cash equivalents or investments of the kinds described in
clauses (a) through (g) above; 
  
 (i) investments in an
aggregate amount of up to $8,000,000.00 in deposits maintained with the Pilgrim Bank of Pittsburg; 
  
 (j) corporate bonds rated investment grade by Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc. or by Moody’s Investors
Service, Inc.; 
  
 (k) Investments permitted under Sections 10.5,
10.6, 10.7, and 10.9; 
  
 (l) Investments made prior to the
Effective Date in Persons, which are not Subsidiaries, and which are identified on Exhibit 10.8 hereto; 
  
 (m) Investments in the Subsidiaries; 
  

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 (n) Investments in Intercompany Bonds; 
  
 (o) Investments in Southern Hens, Inc. in an aggregate amount not to exceed $5,000,000.00; 
  
 (p) Investments from time to time made after the Effective Date in Food
Processors Water Cooperative, Inc. and the Greater Shenandoah Valley Development Company in accordance with past practice and their respective organizational documents as in effect on the date hereof; and 
  
 (q) Investments not covered by clauses (a) through (p) above, in an amount
not to exceed at any time an aggregate of $50,000,000.00. 
  
 10.9 Transactions With Related Parties. Borrower shall not purchase, acquire, provide, or sell any equipment, other personal property, real property or services from or to any Subsidiary, except in the ordinary course and pursuant to
the reasonable requirements of Borrower’s business and consistent with demonstratable past practices of the type disclosed in Borrower’s proxy statement for its Fiscal Year ended September 2003. 
  
 10.10 Dividends, etc. Borrower shall not, directly or indirectly,
declare or pay any dividends (other than dividends payable solely in stock of Borrower) on account of any shares of any class (including common or preferred stock) of its capital stock now or hereafter outstanding, or set aside or otherwise deposit
or invest any sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire any shares of any class of its capital stock (or set aside or otherwise deposit or invest any sums for such purpose) for any consideration other than
common stock or apply or set apart any sum, or make any other distribution (by reduction or capital or otherwise) in respect of any such shares or agree to do any of the foregoing; provided that if no Potential Default or Event of Default shall
exist before and after giving effect thereto, Borrower may (a) pay dividends on preferred stock and other capital stock of Borrower that are convertible, exchangeable or exercisable into Borrower’s common stock and on any common stock of
Borrower which may be issued upon conversion, exchange or exercise of such capital stock, (b) in addition to the dividends permitted by clause (a) pay dividends in an aggregate amount not to exceed $6,500,000.00 in any Fiscal Year; (c) pay dividends
permitted under clause (b) hereof during the immediately preceding Fiscal Year that were declared but not paid in the immediately preceding Fiscal Year (without giving effect to any carry over); and (d) repurchase, at any time after the Original
Effective Date, its shares of capital stock in an amount not to exceed $25,000,000.00 in the aggregate. 
  
 10.11 ERISA. Borrower shall not: (a) engage in or permit any transaction which could result in a “prohibited transaction” (as such term
is defined in Section 406 of ERISA) that is not exempt under a statutory, class or individual exemption or in the imposition of an excise tax pursuant to Section 4975 of the Code; (b) engage in or permit any transaction or other event which could
result in a “reportable event” (as such term is defined in Section 4043 of ERISA) for which the reporting obligation is not waived under ERISA or by regulation for any Borrower Pension Plan; (c) fail to make 
  

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 full payment when due of all amounts which, under the provisions of any Borrower Benefit Plan, Borrower is required to
pay as contributions thereto; (d) permit to exist any “accumulated funding deficiency” (as such term is defined in Section 302 of ERISA) in excess of $100,000.00 if waived or in excess of $25,000.00, if not waived, with respect to any
Borrower Pension Plan; (e) fail to make any payments to any “multiemployer plan” that Borrower may be required to make under any agreement relating to such “multiemployer plan” or any law pertaining thereto; or (f) terminate any
Borrower Pension Plan in a manner which could result in the imposition of a lien on any property of Borrower pursuant to Section 4068 of ERISA. Borrower shall not terminate any Borrower Pension Plan so as to result in any liability to the Pension
Benefit Guaranty Corporation. As used in this Section, all terms enclosed in quotation marks shall have the meanings set forth in ERISA. Borrower’s failure to comply with any of the foregoing provisions of this Section shall not constitute a
breach of this Agreement or an Event of Default unless such failure has a Material Adverse Effect. 
  
 10.12 Change in Fiscal Year. Borrower shall not change its Fiscal Year unless required to do so by the Internal Revenue Service, in which case
Borrower agrees to such amendment of the terms Fiscal Quarter and Fiscal Year, as used herein, as the Administrative Agent reasonably deems necessary. 
  
 10.13 Leases. Borrower shall not, and shall not permit any Subsidiary to, incur non-cancelable obligations on Operating Leases or sale and
leaseback transactions if the aggregate annual amount of all minimum or guaranteed net rentals payable under such leases would exceed four percent (4%) of the Net Tangible Assets of Borrower and its Consolidated Subsidiaries (as determined
immediately preceding the execution of such lease). 
  
 10.14
Principal Payments. Borrower shall not make any principal payments on any subordinated or unsecured debt instruments or related documents unless and until 105 days have passed since August 31, 2011 without a voluntary or involuntary petition
having been filed against Borrower under the federal bankruptcy laws during that period, other than (a) scheduled payments of Senior Unsecured Notes; (b) payments under debt instruments between and among Borrower and its Subsidiaries, (c) redemption
or purchase of an aggregate of up to $125,000,000.00 of the Senior Unsecured Notes provided that Borrower demonstrates, on a pro forma basis taking into account such redemption or purchase, compliance with the covenants set forth at Section 9.12
hereof; (d) redemption or repurchase of Senior Unsecured Notes and/or Senior Subordinated Notes with the proceeds of the issuance of any equity securities in accordance with the provisions and limitations of Section 4.4 hereof (including the
obligation to make a Mandatory Prepayment of the Pro Rata Amount); (e) repayment of Senior Unsecured Notes with the proceeds of the sale or other disposition of any non-current assets which are not part of the Collateral in accordance with the
provisions and limitations of Section 4.4 hereof (including any obligation to make a Mandatory Prepayment of the Pro Rata Amount); (f) prepayments required on account of asset sales, change of control, or similar events; (g) repayment of Foreign
Subsidiary Debt; (h) repayment of amounts owing pursuant to or in connection with the Grower Settlement Agreements existing as of the Effective Date in an aggregate amount not to exceed $1,000,000.00; and (i) payments of up to $50,000,000.00 as
permitted by Section 10.1(g) hereof. 
  

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 10.15 Anti-Terrorism Law. Borrower shall not (a) conduct any business or engage in making or
receiving any contribution of funds, goods or services to or for the benefit of any Person described in Subsection 7.26.2 above, (b) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant
to the Executive Order or any other Anti-Terrorism Law, or (c) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law (and Borrower shall deliver to the Administrative Agent any certification or other evidence requested from time to time by the Administrative Agent in its reasonable discretion, confirming Borrower’ compliance with this
Section). 
  
 ARTICLE 11. INDEMNIFICATION 
  
 11.1 General; Stamp Taxes; Intangibles Tax. Borrower agrees to
indemnify and hold the Administrative Agent and each Syndication Party and their directors, officers, employees, agents, professional advisers and representatives (“Indemnified Parties”) harmless from and against any and all claims,
damages, losses, liabilities, costs or expenses whatsoever which the Administrative Agent or any other Indemnified Party may incur (or which may be claimed against any such Indemnified Party by any Person), including attorneys’ fees incurred by
any Indemnified Party, arising out of or resulting from: (a) the material inaccuracy of any representation or warranty of or with respect to Borrower in this Credit Agreement or the other Loan Documents; (b) the material failure of Borrower to
perform or comply with any covenant or obligation of Borrower under this Credit Agreement or the other Loan Documents; or (c) the exercise by the Administrative Agent of any right or remedy set forth in this Credit Agreement or the other Loan
Documents, provided that Borrower shall have no obligation to indemnify any Indemnified Party against claims, damages, losses, liabilities, costs or expenses to the extent that a court of competent jurisdiction renders a final non-appealable
determination that the foregoing are solely the result of the willful misconduct or gross negligence of such Indemnified Party. In addition, Borrower agrees to indemnify and hold the Indemnified Parties harmless from and against any and all claims,
damages, losses, liabilities, costs or expenses whatsoever which the Administrative Agent or any other Indemnified Party may incur (or which may be claimed against any such Indemnified Party by any Person), including attorneys’ fees incurred by
any Indemnified Party, arising out of or resulting from the imposition or nonpayment by Borrower of any stamp tax, intangibles tax, or similar tax imposed by any state, including any amounts owing by virtue of the assertion that the property
valuation used to calculate any such tax was understated. Borrower shall have the right to assume the defense of any claim as would give rise to Borrower’s indemnification obligation under this Section with counsel of Borrower’s choosing
so long as such defense is being diligently and properly conducted and Borrower shall establish to the Indemnified Party’s satisfaction that the amount of such claims are not, and will not be, material in comparison to the liquid and
unrestricted assets of Borrower available to respond to any award which may be granted on account of such claim. So long as the 
  

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 conditions of the preceding sentence are met, Indemnified Party shall have no further right to reimbursement of
attorneys’ fees incurred thereafter. The obligation to indemnify set forth in this Section shall survive the termination of this Credit Agreement and other covenants. 
  
 11.2 Indemnification Relating to Hazardous Substances. Borrower shall not, and shall cause the Subsidiaries not to,
locate, produce, treat, transport, incorporate, discharge, emit, release, deposit or dispose of any Hazardous Substance in, upon, under, over or from any property owned or held by Borrower or such Subsidiary, except in accordance with all
Environmental Regulations; Borrower shall not, and shall cause the Subsidiaries not to, permit any Hazardous Substance to be located, produced, treated, transported, incorporated, discharged, emitted, released, deposited, disposed of or to escape
in, upon, under, over or from any property owned or held by Borrower or such Subsidiary, except in accordance with Environmental Regulations; and Borrower shall, and shall cause each Subsidiary to, comply with all Environmental Regulations which are
applicable to such property except where the failure to comply could not reasonably be expected to result in a Material Adverse Effect. Borrower shall indemnify the Indemnified Parties against, and shall reimburse the Indemnified Parties for, any
and all claims, demands, judgments, penalties, liabilities, costs, damages and expenses, including court costs and attorneys’ fees incurred by the Indemnified Parties (prior to trial, at trial and on appeal) in any action against or involving
the Indemnified Parties, resulting from any breach of the foregoing covenants in this Section or the covenants in Section 9.5 hereof, or from the discovery of any Hazardous Substance in, upon, under or over, or emanating from, such property, it
being the intent of Borrower and the Indemnified Parties that the Indemnified Parties shall have no liability or responsibility for damage or injury to human health, the environmental or natural resources caused by, for abatement and/or clean-up of,
or otherwise with respect to, Hazardous Substances as the result of the Administrative Agent or any Syndication Party exercising any of its rights or remedies with respect thereto, including but not limited to becoming the owner thereof by
foreclosure, including foreclosure on a judgment lien, or conveyance in lieu of foreclosure; provided that such indemnification as it applies to the exercise by the Administrative Agent or any Syndication Party of its rights or remedies with respect
to the Loan Documents shall not apply to claims arising solely with respect to Hazardous Substances brought onto such property by the Administrative Agent or such Syndication Party while engaged in activities other than operations substantially the
same as the operations previously conducted on such property by Borrower. The foregoing covenants of this Section shall be deemed continuing covenants for the benefit of the Indemnified Parties, and any successors and assigns of the Indemnified
Parties, including but not limited to, any transferee of the title of the Administrative Agent or any Syndication Party or any subsequent owner of the property, and shall survive the satisfaction or release of any lien, any foreclosure of any lien
and/or any acquisition of title to the property or any part thereof by the Administrative Agent or any Syndication Party, or anyone claiming by, through or under the Administrative Agent or any Syndication Party or Borrower by deed in lieu of
foreclosure or otherwise. Any amounts covered by the foregoing indemnification shall bear interest from the date incurred at the Default Interest Rate, shall be payable on demand, and shall be secured by the Security Documents. The indemnification
and covenants of this Section shall survive the termination of this Credit Agreement and other covenants. 
  

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 ARTICLE 12. EVENTS OF DEFAULT; RIGHTS AND REMEDIES 
  
 12.1 Events of Default. The occurrence of any of the following events (each an “Event of Default”)
shall, at the option of the Administrative Agent, make the entire Bank Debt immediately due and payable (provided, that in the case of an Event of Default under Subsection 12.1(h) all amounts owing under the Notes and the other Loan Documents shall
automatically and immediately become due and payable without any action by or on behalf of the Administrative Agent), and the Administrative Agent may exercise all rights and remedies for the collection of any amounts outstanding hereunder and take
whatever action it deems necessary to secure itself, all without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any kind or character: 
  
 (a) Failure of Borrower to pay (i) when due, whether by acceleration or
otherwise, any principal in accordance with this Credit Agreement or the other Loan Documents, (ii) within five (5) Banking Days of the date when due, whether by acceleration or otherwise, any interest or amounts other than principal in accordance
with this Credit Agreement or the other Loan Documents, or (iii) within ten (10) Banking Days of the date when due, any Delinquent Amount or Delinquency Interest. 
  
 (b) Any representation or warranty set forth in any Loan Document, any Borrowing Notice, any financial statements or
reports, or in connection with any transaction contemplated by any such document, shall prove in any material respect to have been false or misleading when made or furnished by Borrower. 
  
 (c) Any default by Borrower in the performance or compliance with the covenants, promises, conditions or provisions of
Sections 9.9, 9.13, 9.14, 10.1, 10.3, 10.4, 10.5, 10.7, 10.10, 10.13, or 10.14 of this Credit Agreement. 
  
 (d) Any default by Borrower in the performance or compliance with the covenants, promises, conditions or provisions of Sections 9.2, 9.4, 9.5, 9.6, 9.7,
9.8, 9.10, 9.11, 9.12, 9.16, 9.17, 10.6, 10.8, 10.9, 10.11, 10.12, or 10.15 of this Credit Agreement, and such failure continues for fifteen (15) days after Borrower learns of such failure to comply, whether by Borrower’s own discovery or
through notice from the Administrative Agent. 
  
 (e) The
occurrence of an Event of Default under any of the Security Documents. 
  
 (f) Failure of Borrower to comply with any other provision of this Credit Agreement (other than Section 9.18) or the other Loan Documents not constituting an Event of Default under any of the preceding subparagraphs of this Section 12.1,
and such failure continues for thirty (30) days after Borrower learns of such failure to comply, whether by Borrower’s own discovery or through notice from the Administrative Agent. 
  

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 (g) The failure of Borrower to pay when due, or failure to perform or observe any other obligation or
condition with respect to any of the following obligations to any Person, beyond any period of grace under the instrument creating such obligation: (i) any indebtedness for borrowed money or for the deferred purchase price of property or services,
(ii) any obligations under leases which have or should have been characterized as Capital Leases, or (iii) any contingent liabilities, such as guaranties and letters of credit, for the obligations of others relating to indebtedness for borrowed
money or for the deferred purchase price of property or services or relating to obligations under leases which have or should have been characterized as Capital Leases; provided that no such failure will be deemed to be an Event of Default hereunder
unless the amount owing under the obligation with respect to which such failures have occurred and are continuing is at least $20,000,000.00, or unless it is with respect to a Pari Passu Loan. 
  
 (h) Borrower, Guarantor, or any Subsidiary applies for or consents to the
appointment of a trustee or receiver for any part of its properties; any bankruptcy, reorganization, debt arrangement, dissolution or liquidation proceeding is commenced or consented to by Borrower, Guarantor, or any Subsidiary; or any application
for appointment of a receiver or a trustee, or any proceeding for bankruptcy, reorganization, debt management or liquidation is filed for or commenced against Borrower, Guarantor, or any Subsidiary, and is not withdrawn or dismissed within ninety
(90) days thereafter; provided that no such consent or filing by or against a Subsidiary shall constitute an Event of Default under this clause (g) unless it could reasonably be expected to result in a Material Adverse Effect. 
  
 (i) The entry of one or more judgments in an aggregate amount in excess of
$20,000,000.00 against Borrower not stayed, discharged or paid within thirty (30) days after entry. 
  
 (j) The occurrence at any time from the Original Effective Date to the Closing Date of any circumstance which would have constituted an Event of Default
under the 2000 Credit Agreement. 
  
 (k) In the event (i) the
Pilgrim Family shall cease to “own” more than fifty percent (50%) of the total voting power generally entitled to vote in the election of directors, managers or trustees of Borrower, (ii) during any period of two (2) consecutive years,
individuals who at the beginning of such period constituted the Board of Directors of Borrower (together with any new directors whose election by such Board of Directors or whose nomination for election by the stockholders of Borrower was approved
by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the
Board of Directors of Borrower then in office, or (iii) the stockholders of Borrower shall approve any plan for the liquidation or dissolution of Borrower. For purposes hereof, the Pilgrim Family shall be deemed to “own” the voting power
generally entitled to vote in the election of directors, managers or trustees of Borrower if the Pilgrim Family either directly or indirectly legally or beneficially own such voting power. 
  

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 12.2 No Advance. The Syndication Parties shall have no obligation to make any Advance if a
Potential Default or an Event of Default shall occur and be continuing. 
  
 12.3 Rights and Remedies. In addition to the remedies set forth in Section 12.1 and 12.2 hereof, upon the occurrence of an Event of Default, the Administrative Agent shall be entitled to exercise all the rights and remedies provided
in the Loan Documents and by any applicable law. Each and every right or remedy granted to the Administrative Agent pursuant to this Credit Agreement and the other Loan Documents, or allowed the Administrative Agent by law or equity, shall be
cumulative. Failure or delay on the part of the Administrative Agent to exercise any such right or remedy shall not operate as a waiver thereof. Any single or partial exercise by the Administrative Agent of any such right or remedy shall not
preclude any future exercise thereof or the exercise of any other right or remedy. 
  
 12.4 Agreement Regarding, and Waiver of, Certain Rights. Borrower acknowledges and agrees that in the event that the provisions of the Agricultural Credit Act of 1987, including, without limitation, those
sections thereof designated as 12 U.S.C. Sections 2199 through 2202e, and the implementing Farm Credit Administration regulations (collectively “Farm Credit Law”) presently apply to Borrower or to this transaction, but are in the
future determined (a) not to apply to Borrower, this transaction, or to the collection of any funds Advanced hereunder; or (b) to be waivable by Borrower, then, in either such case, Borrower will execute any document reasonably requested by
Agriland, any Syndication Party, and/or the Administrative Agent in the future to waive any rights it may have under any such Farm Credit Law, including any rights with respect to the acceleration and/or restructuring of any Bank Debt owed hereunder
as to which an Event of Default has occurred and is continuing and any rights applicable with respect to foreclosure of liens securing any such Bank Debt. Borrower acknowledges that its agreement to execute such waivers pursuant to the provisions of
this Section 12.4 is based on its recognition that such action, if permitted by Farm Credit Law, would (x) be important to induce commercial banks and other non-Farm Credit institutions and CoBank to become Syndication Parties and/or Voting
Participants hereunder and to agree to provide, directly or indirectly, a portion of the available funds under the Loan; and (y) enhance Borrower’s ability to obtain Pari Passu Loans. Nothing contained in this Section 12.4 nor the delivery to
Borrower of any summary of any rights under, or any notice pursuant to, the Farm Credit Law shall in any way be deemed to be, or be construed to in any way indicate, the determination or agreement by Borrower, the Administrative Agent, any
Syndication Party, and/or any Voting Participants, that the Farm Credit Law, or any rights thereunder, are or will in fact be applicable to Borrower, the Loan, or the Loan Documents. 
  
 ARTICLE 13. AGENCY AGREEMENT 
  
 13.1 Funding of Syndication Interest. Each Syndication Party, severally but not jointly, hereby irrevocably agrees to fund its Funding Share of the
Advances (“Advance Payment”) as determined pursuant to the terms and conditions contained herein and in particular, Article 2 hereof. Each Syndication Party’s interest (“Syndication Interest”) in each Advance
hereunder shall be without recourse to the 
  

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 Administrative Agent or any other Syndication Party and shall not be construed as a loan from any Syndication Party to
the Administrative Agent or to any other Syndication Party. 
  
 13.2 Syndication Parties’ Obligations to Remit Funds. Each Syndication Party agrees to remit its Funding Share to the Administrative Agent as, and within the time deadlines (“Syndication Party Advance Date”),
required in this Credit Agreement. Unless the Administrative Agent shall have received notice from a Syndication Party prior to the date on which such Syndication Party is to provide funds to the Administrative Agent for an Advance to be made by
such Syndication Party that such Syndication Party will not make available to the Administrative Agent such funds, the Administrative Agent may assume that such Syndication Party has made such funds available to the Administrative Agent on the date
of such Advance in accordance with the terms of this Credit Agreement and the Administrative Agent in its sole discretion may, but shall not be obligated to, in reliance upon such assumption, make available to Borrower on such date a corresponding
amount. If and to the extent such Syndication Party shall not have made such funds available to the Administrative Agent by 2:00 P.M. (Central time) on the Banking Day due, such Syndication Party agrees to repay the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to Borrower until the Banking Day such amount is repaid to the Administrative Agent (assuming payment is received by the
Administrative Agent at or prior to 2:00 P.M. (Central time), and until the next Banking Day if payment is not received until after 2:00 P.M.), at the customary rate set by the Administrative Agent for the correction of errors among banks for three
(3) Banking Days and thereafter at the Base Rate. If such Syndication Party shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Syndication Party’s Advance for purposes of this Credit
Agreement. If such Syndication Party does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify Borrower, and Borrower shall immediately pay such
corresponding amount to the Administrative Agent with the interest thereon, for each day from the date such amount is made available to Borrower until the date such amount is repaid to the Administrative Agent, at the rate of interest applicable at
the time to such Advance. 
  
 13.3 Syndication Party’s
Failure to Remit Funds. If a Syndication Party (“Delinquent Syndication Party”) fails to remit its Funding Share in full by the date and time required (the unpaid amount of any such payment being hereinafter referred to as the
“Delinquent Amount”), in addition to any other remedies available hereunder, any other Syndication Party or Syndication Parties may, but shall not be obligated to, advance the Delinquent Amount (the Syndication Party or Syndication
Parties which advance such Delinquent Amount are referred to as the “Contributing Syndication Parties”), in which case (a) the Delinquent Amount which any Contributing Syndication Party advances shall be treated as a loan to the
Delinquent Syndication Party and shall not be counted in determining the Individual Outstanding Obligations, of any Contributing Syndication Party, and (b) the Delinquent Syndication Party shall be obligated to pay to the Administrative Agent, for
the account of the Contributing 
  

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 Syndication Parties, interest on the Delinquent Amount at a rate of interest equal to the rate of interest which Borrower
is obligated to pay on the Delinquent Amount plus 200 basis points (“Delinquency Interest”) until the Delinquent Syndication Party remits the full Delinquent Amount and remits all Delinquency Interest to the Administrative Agent,
which will distribute such payments to the Contributing Syndication Parties (pro rata (if more than one) based on the amount of the Delinquent Amount which each of them advanced) on the same Banking Day as such payments are received by the
Administrative Agent if received no later than 11:00 A.M. Central time or the next Banking Day if received by the Administrative Agent thereafter. In addition, the Contributing Syndication Parties shall be entitled to share, on the same pro rata
basis, and the Administrative Agent shall pay over to them, for application against Delinquency Interest and the Delinquent Amount, the Delinquent Syndication Party’s Payment Distribution and any fee distributions or distributions made under
Section 13.10 hereof until the Delinquent Amount and all Delinquency Interest have been paid in full. For voting purposes the Administrative Agent shall readjust the Individual Commitments of such Delinquent Syndication Party and the Contributing
Syndication Parties from time to time first to reflect the advance of the Delinquent Amount by the Contributing Syndication Parties, and then to reflect the full or partial reimbursement to the Contributing Syndication Parties of such Delinquent
Amount. As between the Delinquent Syndication Party and the Contributing Syndication Parties, the Delinquent Syndication Party’s interest in its Notes shall be deemed to have been partially assigned to the Contributing Syndication Parties in
the amount of the Delinquent Amount and Delinquency Interest owing to the Contributing Syndication Parties from time to time. For the purposes of calculating interest owed by a Delinquent Syndication Party, payments received on other than a Banking
Day shall be deemed to have been received on the next Banking Day, and payments received after 2:00 P.M. (Central time) shall be deemed to have been received on the next Banking Day. 
  
 13.4 Agency Appointment. Each of the Syndication Parties hereby designates and appoints the Administrative Agent to
act as agent to service and collect the Loans and its respective Notes, to act as Secured Party or mortgagee or beneficiary under the Security Documents, and to take such action on behalf of such Syndication Party with respect to the Loans, such
Notes, the Collateral, and the Security Documents, and to execute such powers and to perform such duties, as specifically delegated or required herein, as well as to exercise such powers and to perform such duties as are reasonably incident thereto,
and to receive and benefit from such fees and indemnifications as are provided for or set forth herein, until such time as a successor is appointed and qualified to act as the Administrative Agent. 
  
 13.5 Power and Authority of the Administrative Agent. Without limiting
the generality of the power and authority vested in the Administrative Agent pursuant to Section 13.4 hereof, the power and authority vested in the Administrative Agent includes, but is not limited to, the following: 
  
 13.5.1 Advice. To solicit the advice and assistance of each of the
Syndication Parties and Voting Participants concerning the administration of the Loans 
  

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 and the exercise by the Administrative Agent of its various rights, remedies, powers, and discretions with respect
thereto. As to any matters not expressly provided for by this Credit Agreement or any other Loan Document, the Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with
instructions signed by all of the Syndication Parties or the Required Lenders, as the case may be (and including in each such case, Voting Participants), and any action taken or failure to act pursuant thereto shall be binding on all of the
Syndication Parties, Voting Participants, and the Administrative Agent. 
  
 13.5.2 Documents; Intercreditor Agreement. To execute, seal, acknowledge, and deliver as the Administrative Agent, (a) all such instruments as may be appropriate in connection with the administration of the Loans and the exercise by
the Administrative Agent of its various rights with respect thereto; and (b) upon Borrower’s satisfaction of each condition thereto as specified in Section 1.76 hereof, one or more Intercreditor Agreements, including agreements by a lender
under a Pari Passu Loan adopting and agreeing to be bound by the same, and the Administrative Agent agrees to execute an Intercreditor Agreement (or agreement by a lender under a Pari Passu Loan adopting and being bound by an Intercreditor
Agreement) upon the request of Borrower and upon Borrower’s satisfaction of each condition thereto as specified in Section 1.76 hereof; provided that the Administrative Agent shall not exercise any rights under an Intercreditor Agreement after
its execution except as directed by the Required Lenders. 
  
 13.5.3 Proceedings. To initiate, prosecute, defend, and to participate in, actions and proceedings in its name as the Administrative Agent for the ratable benefit of the Syndication Parties. 
  
 13.5.4 Retain Professionals. To retain attorneys, accountants, and
other professionals to provide advice and professional services to the Administrative Agent, with their fees and expenses reimbursable to the Administrative Agent by Syndication Parties pursuant to Section 13.16 hereof. 
  
 13.5.5 Incidental Powers. To exercise powers reasonably incident to
the Administrative Agent’s discharge of its duties enumerated in Section 13.6 hereof. 
  
 13.5.6 Release of Certain Liens. To take such action and execute such documents as may be reasonably necessary to release any liens on or security interests in any Collateral where Borrower is entitled to such
release in connection with (a) Dispositions permitted pursuant to the provisions of Section 10.4(a), (b), and (c)(i) hereof, without the need to obtain the consent of any of the Syndication Parties or Voting Participants; (b) the replacement or
removal of any Collateral (other than in connection with a Shut Down pursuant to the terms of Section 9.15 hereof) where the book value of such Collateral is $5,000,000.00 or less, without the need to obtain the consent of any of the Syndication
Parties or Voting Participants; (c) the removal of any facility from the Available Amount Report (and therefore, from calculation of the Available Amount) arising from a Shut Down pursuant to the provisions of Section 9.15 hereof where the book
value of the Collateral subject to such Shut Down is 
  

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 $10,000,000.00 or less, without the need to obtain the consent of any of the Syndication Parties or Voting Participants;
(d) Dispositions permitted pursuant to the provisions of Section 10.4(c)(ii) hereof, with the consent of the Required Lenders; (e) the removal of any facility from the Available Amount Report (and therefore, from calculation of the Available Amount)
arising from a Shut Down pursuant to the provisions of Section 9.15 where the book value of the Collateral subject to such Shut Down is more than $10,000,000.00, with the consent of the Required Lenders; and (f) the release of the existing liens, if
any, on the following properties as described generally on Exhibit 6.1 hereto, provided that as a condition to such releases Borrower must simultaneously provide the Administrative Agent with a revised Availability Amount Report showing a
reduction in the Available Amount reflecting the removal of each of such properties (based on the Appraised Value included for each such property in the most recent prior Available Amount Report): (i) the farms, (ii) Walker Creek, and (iii) the
Moorefield, West Virginia facilities. 
  
 13.6 Duties of the
Administrative Agent. The duties of the Administrative Agent hereunder shall consist of the following: 
  
 13.6.1 Possession of Documents. To safekeep one original of each of the Loan Documents other than the Notes (which will be in the possession of the
Syndication Party named as payee therein). 
  
 13.6.2
Distribute Payments. To receive and distribute to the Syndication Parties payments made by Borrower pursuant to the Loan Documents, as provided herein. 
  
 13.6.3 Loan Administration. Subject to the provisions of Section 13.7 hereof, to, on behalf of and for the ratable benefit of all Syndication
Parties, in accordance with customary banking practices, exercise all rights, powers, privileges, and discretion to which the Administrative Agent is entitled to administer the Loans. 
  
 13.6.4 Action Upon Default. Each Syndication Party agrees that upon its learning of any facts which would constitute
a Potential Default or Event of Default, it shall promptly notify the Administrative Agent by a writing designated as a notice of default specifying in detail the nature of such facts and default, and the Administrative Agent shall promptly send a
copy of such notice to all other Syndication Parties. The Administrative Agent shall be entitled to assume that no Event of Default or Potential Default has occurred or is continuing unless an officer thereof primarily responsible for the
Administrative Agent’s duties as such with respect to the Loans or primarily responsible for the credit relationship, if any, between the Administrative Agent and Borrower has actual knowledge of facts which would result in or constitute a
Potential Default or Event of Default, or has received written notice from Borrower of such fact, or has received written notice of default from a Syndication Party. In the event the Administrative Agent has obtained actual knowledge (in the manner
described above) or received written notice of the occurrence of a Potential Default or Event of Default as provided in the preceding sentences, the Administrative Agent may, but is not required to exercise or refrain from exercising any rights
which may be available 
  

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 under the Loan Documents or at law on account of such occurrence and shall be entitled to use its discretion with respect
to exercising or refraining from exercising any such rights, unless and until the Administrative Agent has received specific written instruction from the Required Lenders to refrain from exercising such rights or to take specific designated action,
in which case it shall follow such instruction; provided that the Administrative Agent shall not be required to take any action which will subject it to personal liability, or which is or may be contrary to any provision of the Loan Documents or
applicable law. The Administrative Agent shall not be subject to any liability by reason of its acting or refraining from acting pursuant to any such instruction. 
  
 13.6.5 Indemnification as Condition to Action. Except for action expressly required of the Administrative Agent
hereunder, the Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder unless it shall have received further assurances (which may include cash collateral) of the indemnification obligations of the
Syndication Parties under Section 13.17 hereof in respect of any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. 
  
 13.6.6 Forwarding of Information. The Administrative Agent shall, within a reasonable time after receipt thereof,
forward to the Syndication Parties and the Voting Participants notices and reports provided to the Administrative Agent by the Borrower pursuant to Section 9.2 hereof. 
  
 13.7 Consent Required for Certain Actions. Notwithstanding the fact that this Credit Agreement may otherwise provide
that the Administrative Agent may act at its discretion, the Administrative Agent may not take any of the following actions with respect to, or under, the Loan Documents (nor may the Syndication Parties or the Voting Participants take the action
described in Subsection 13.7.1(c)) without the prior written consent, given after notification by the Administrative Agent of its intention to take any such action (or notification by such Syndication Parties or the Voting Participants as are
proposing the action described in Subsection 13.7.1(c) of their intention to do so), of: 
  
 13.7.1 Unanimous. Each of the Syndication Parties and Voting Participants holding, directly or, in the case of Voting Participants, indirectly, an Individual Commitment, before: 
  
 (a) Agreeing to an increase in the Aggregate Commitment or an extension of
the Maturity Date; 
  
 (b) Agreeing to a reduction in the amount,
or to a delay in the due date, of any payment by Borrower of interest, principal, or fees with respect to the Revolving Loan; 
  
 (c) Amending any provisions of this Subsection 13.7.1 or Section 14.20; or 
  

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 (d) Agreeing to release any Collateral from the lien of the Security Documents, except as provided in
Subsection 13.5.6 hereof. 
  
 13.7.2 Required Lenders. The
Required Lenders before: 
  
 (a) Consenting to any action or
amendment, or granting any waiver with respect to, either the Revolving Loan, not covered in Subsection 13.7.1 and except as provided in Subsection 13.5.6(a), (b), or (c) hereof; or 
  
 (b) Agreeing to amend Article 13 of this Credit Agreement (other than Subsection 13.7.1). 
  
 13.7.3 Increase in Individual Commitment Amounts. The Individual
Commitment of any Syndication Party may not be increased without (a) the prior written consent of such Syndication Party and (b) if such increase would result in an increase in the Aggregate Commitment, compliance with Subsection 13.7.1(a) hereof.

  
 13.7.4 Action Without Vote. Notwithstanding any other
provisions of this Section, the Administrative Agent may, without obtaining the consent of the Syndication Parties or Voting Participants, determine (a) whether the conditions to an Advance have been met, and (b) the amount of such Advance;

  
 13.7.5 Vote of Participants. Under the circumstances
set forth in Section 13.26 hereof, each Voting Participant shall be accorded voting rights as though such Person was a Syndication Party, and in such case the voting rights of the Syndication Party from which such Voting Participant acquired its
participation interest shall be reduced accordingly. 
  
 13.8
Distribution of Principal and Interest. The Administrative Agent will receive and accept all payments (including prepayments) of principal and interest made by Borrower on the Loans and the Notes and will hold all such payments in trust for the
benefit of all present and future Syndication Parties, and, if requested in writing by the Required Lenders, in an account segregated from the Administrative Agent’s other funds and accounts (“Payment Account”). After the
receipt by the Administrative Agent of any payment representing interest or principal on the Loans, the Administrative Agent shall remit to each Syndication Party its share of such payment as provided in Article 4 hereof in US dollars
(“Payment Distribution”) no later than 3:00 P.M. (Central time) on the same Banking Day as such payment is received by the Administrative Agent if received no later than 1:00 P.M. (Central time) or the next Banking Day if received
by the Administrative Agent thereafter. Any Syndication Party’s rights to its Payment Distribution shall be subject to the rights of any Contributing Syndication Parties to such amounts as set forth in Section 13.3 hereof. 
  

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 13.9 Distribution of Certain Amounts. The Administrative Agent shall (a) receive and hold in trust
for the benefit of all present and future Syndication Parties, in the Payment Account and, if requested in writing by the Required Lenders, segregated from the Administrative Agent’s other funds and accounts and (b) shall remit to the
Syndication Parties, as indicated, the amounts described below: 
  
 13.9.1 Funding Losses. To each Syndication Party the amount of any Funding Losses paid by Borrower to the Administrative Agent in connection with a prepayment of any portion of a LIBO Rate Loan, in accordance with the Funding Loss
Notice such Syndication Party provided to the Administrative Agent, no later than 3:00 P.M. (Central time) on the same Banking Day that payment of such Funding Losses is received by the Administrative Agent, if received no later than 1:00 P.M.
(Central time), or the next Banking Day if received by the Administrative Agent thereafter. 
  
 13.9.2 Fees. To each Syndication Party its Individual Pro Rata Share of the Commitment Fee paid by Borrower to the Administrative Agent, no later than 3:00 P.M. (Central time) on the same Banking Day that
payment of such fee is received by the Administrative Agent, if received no later than 1:00 P.M. (Central time), or the next Banking Day if received by the Administrative Agent thereafter. 
  
 13.10 Possession of Loan Documents. The Loan Documents (other than the
Notes) shall be held by the Administrative Agent in its name, for the ratable benefit of itself and the other Syndication Parties without preference or priority. 
  
 13.11 Collateral Application. The Syndication Parties shall have no interest in any other loans made to Borrower by
any other Syndication Party other than the Loans, or in any property taken as security for any other loan or loans made to Borrower by any other Syndication Party, or in any property now or hereinafter in the possession or control of any other
Syndication Party, which may be or become security for the Loans solely by reason of the provisions of a security instrument that would cause such security instrument and the property covered thereby to secure generally all indebtedness owing by
Borrower to such other Syndication Party. Notwithstanding the foregoing, to the extent such other Syndication Party applies such funds or the proceeds of such property to reduction of the Loans, such other Syndication Party shall share such funds or
proceeds with all Syndication Parties according to their respective Individual Pro Rata Shares. In the event that any Syndication Party shall obtain payment, whether partial or full, from any source in respect of the Loans, including without
limitation payment by reason of the exercise of a right of offset, banker’s lien, general lien, or counterclaim, such Syndication Party shall promptly make such adjustments (which may include payment in cash or the purchase of further
syndications or participations in the Loans) to the end that such excess payment shall be shared with all other Syndication Parties in accordance with their respective Individual Pro Rata Shares. 
  
 13.12 Amounts Required to be Returned. If the Administrative Agent
makes any payment to a Syndication Party in anticipation of the receipt of final funds from Borrower, and such funds are not received from Borrower, or if excess funds are paid by the Administrative Agent to any Syndication Party as the result of a
miscalculation by the Administrative Agent, then such Syndication Party shall, on demand of the Administrative Agent, forthwith return to the Administrative Agent any such amounts, plus interest thereon (from the day such amounts were transferred by
the Administrative Agent to the Syndication Party to, but not including, the day such amounts are returned by Syndication Party) at a rate per annum equal to the customary rate set by the 
  

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 Administrative Agent for the correction of errors among banks for three (3) Banking Days and thereafter at the Base Rate.
If the Administrative Agent is required at any time to return to Borrower or a trustee, receiver, liquidator, custodian, or similar official any portion of the payments made by Borrower to the Administrative Agent, whether pursuant to any bankruptcy
or insolvency law or otherwise, then each Syndication Party shall, on demand of the Administrative Agent, forthwith return to the Administrative Agent any such payments transferred to such Syndication Party by the Administrative Agent but without
interest or penalty (unless the Administrative Agent is required to pay interest or penalty on such amounts to the person recovering such payments). 
  
 13.13 Reports and Information to Syndication Parties. The Administrative Agent shall use reasonable efforts to provide to the Syndication Parties,
as soon as practicable after actual knowledge thereof is acquired by an officer thereof primarily responsible for the Administrative Agent’s duties as such with respect to the Loans or primarily responsible for the credit relationship, if any,
between the Administrative Agent and Borrower, any material factual information which has a material adverse effect on the creditworthiness of Borrower and Borrower hereby authorizes such disclosure by the Administrative Agent to the Syndication
Parties (and by the Syndication Parties to any of their participants). Failure of the Administrative Agent to provide the information referred to in this Section or in Subsection 13.6.4 hereof shall not result in any liability upon, or right to make
a claim against, the Administrative Agent except where a court of competent jurisdiction renders a final non-appealable determination that such failure is a result of the willful misconduct or gross negligence of the Administrative Agent. The
Syndication Parties acknowledge and agree that all information and reports received pursuant to this Credit Agreement will be received in confidence in connection with their Syndication Interest, and that such information and reports constitute
confidential information and shall not, without the prior written consent of the Administrative Agent or Borrower, as applicable, be (x) disclosed to any third party (other than the Administrative Agent, another Syndication Party or potential
Syndication Party, or a participant or potential participant in the interest of a Syndication Party, which disclosure is hereby approved by Borrower), except pursuant to appropriate legal or regulatory process, or (y) used by the Syndication Party
except in connection with the Loans and its Syndication Interest. 
  
 13.14 Standard of Care. The Administrative Agent shall not be liable to the Syndication Parties for any error in judgment or for any action taken or not taken by the Administrative Agent or its agents, except for its gross negligence
or willful misconduct. Subject to the preceding sentence, the Administrative Agent will exercise the same care in administering the Loans and the Loan Documents as it exercises for similar loans which it holds for its own account and risk, and the
Administrative Agent shall not have any further responsibility to the Syndication Parties. Without limiting the foregoing, the Administrative Agent may rely on the advice of counsel concerning legal matters and on any written document it believes to
be genuine and correct and to have been signed or sent by the proper Person or Persons. 
  

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 13.15 No Trust Relationship. Neither the execution of this Credit Agreement, nor the sharing in
the Loans, nor the holding of the Loan Documents in its name by the Administrative Agent, nor the management and administration of the Loans and Loan Documents by the Administrative Agent (including the obligation to hold certain payments and
proceeds in the Payment Account in trust for the Syndication Parties), nor any other right, duty or obligation of the Administrative Agent under or pursuant to this Credit Agreement, is intended to be or create, and none of the foregoing shall be
construed to be or create, any express, implied or constructive trust relationship between the Administrative Agent and any Syndication Party. Each Syndication Party hereby agrees and stipulates that the Administrative Agent is not acting as trustee
for such Syndication Party with respect to the Loans, this Credit Agreement, or any aspect of either, or in any other respect. 
  
 13.16 Sharing of Costs and Expenses. To the extent not paid by Borrower, each Syndication Party will promptly upon demand reimburse the
Administrative Agent for its Individual Pro Rata Share of all reasonable costs, disbursements, and expenses incurred by the Administrative Agent on or after the date of this Credit Agreement for legal, accounting, consulting, and other services
rendered to the Administrative Agent in its role as the Administrative Agent in the administration of the Loans, interpreting the Loan Documents, and protecting, enforcing, or otherwise exercising any rights, both before and after default by
Borrower under the Loan Documents, and including, without limitation, all costs and expenses incurred in connection with any bankruptcy proceedings; provided, however, that the costs and expenses to be shared in accordance with this Section shall
not include any costs or expenses incurred by the Administrative Agent solely as a Syndication Party in connection with the Loans, nor the Administrative Agent’s internal costs and expenses. 
  
 13.17 Syndication Parties’ Indemnification of the Administrative
Agent. Each of the Syndication Parties agree to indemnify the Administrative Agent, including any Successor Agent, and their respective directors, officers, employees, agents, professional advisers and representatives (“Indemnified
Agency Parties”), (to the extent not reimbursed by Borrower, and without in any way limiting the obligation of Borrower to do so), ratably (based on their Individual Pro Rata Shares), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including, without limitation, at any time following the payment of the Loans and/or the expiration or termination
of this Credit Agreement) be imposed on, incurred by or asserted against the Administrative Agent (or any of the Indemnified Agency Parties while acting for the Administrative Agent or for any Successor Agent) in any way relating to or arising out
of this Credit Agreement or the Loan Documents, or the performance of the duties of the Administrative Agent hereunder or thereunder or any action taken or omitted while acting in the capacity of the Administrative Agent under or in connection with
any of the foregoing; provided that the Syndication Parties shall not be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of an
Indemnified Agency Party to the extent that any of the forgoing result from the gross negligence or willful misconduct of that Indemnified Agency Party as determined by 
  

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 the final non-appealable judgment of a court of competent jurisdiction. The agreements and obligations in this Section
shall survive the payment of the Loans and the expiration or termination of this Credit Agreement. 
  
 13.18 Books and Records. The Administrative Agent shall maintain such books of account and records relating to the Loans as it maintains with
respect to other loans of similar type and amount, and which shall clearly and accurately reflect the Syndication Interest of each Syndication Party. Syndication Parties, or their agents, may inspect such books of account and records at all
reasonable times during the Administrative Agent’s regular business hours. 
  
 13.19 Administrative Agent Fee. The Administrative Agent and any Successor Agent shall be entitled to the Administrative Agent Fee (as such fee is set forth in the Fee Letter) for acting as the Administrative
Agent. In the event the Successor Agent is contractually entitled to an additional fee, each Syndication Party will be responsible for its proportionate share (based on its Individual Pro Rata Share) thereof. 
  
 13.20 The Administrative Agent’s Resignation or Removal. The
Administrative Agent may resign at any time by giving at least sixty (60) days’ prior written notice of its intention to do so to each of the Syndication Parties and Borrower. After the receipt of such notice, the Required Lenders shall appoint
a successor (“Successor Agent”). If (a) no Successor Agent shall have been so appointed which is either (i) a Syndication Party, or (ii) if not a Syndication Party, which is a Person approved by Borrower, or (b) if such Successor
Agent has not accepted such appointment, in either case within forty-five (45) days after the retiring Administrative Agent’s giving of such notice of resignation, then the retiring Administrative Agent may, after consulting with, but without
requiring the approval of, Borrower, appoint a Successor Agent which shall be a bank or a trust company organized under the laws of the United States of America or any state thereof and having a combined capital, surplus and undivided profit of at
least $250,000,000.00. Any Administrative Agent may be removed upon the written demand of the Required Lenders, which demand shall also appoint a Successor Agent. Upon the appointment of a Successor Agent hereunder, (y) the term “Administrative
Agent” shall for all purposes of this Credit Agreement thereafter mean such Successor Agent, and (z) the Successor Agent shall notify Borrower of its identity and of the information called for in Subsection 14.4.2 hereof. After any retiring
Administrative Agent’s resignation hereunder as the Administrative Agent, or the removal hereunder of any Administrative Agent, the provisions of this Credit Agreement shall continue to inure to the benefit of such Administrative Agent as to
any actions taken or omitted to be taken by it while it was the Administrative Agent under this Credit Agreement. 
  
 13.21 Representations and Warranties of All Parties. The Administrative Agent and each Syndication Party represents and warrants that: (a) the
execution and delivery of, and performance of its obligations under, this Credit Agreement is within its power and has been duly authorized by all necessary corporate and other action by it; (b) this Credit Agreement is in compliance with all
applicable laws and regulations promulgated under such laws and does not conflict with nor constitute a breach of its 
  

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 charter or by-laws nor any agreements by which it is bound, and does not violate any judgment, decree or governmental or
administrative order, rule or regulation applicable to it; (c) no approval, authorization or other action by, or declaration to or filing with, any governmental or administrative authority or any other Person is required to be obtained or made by it
in connection with the execution and delivery of, and performance of its obligations under, this Credit Agreement; and (d) this Credit Agreement has been duly executed by it, and constitutes the legal, valid, and binding obligation of such Person,
enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors generally and general equitable
principles (regardless of whether such enforceability is considered in a proceeding at law or in equity). Each Syndication Party that is a state or national bank represents and warrants that the act of entering into and performing its obligations
under this Credit Agreement has been approved by its board of directors or its loan committee and such action was duly noted in the written minutes of the meeting of such board or committee, and that it will, if requested to do so by the
Administrative Agent, furnish the Administrative Agent with a certified copy of such minutes or an excerpt therefrom reflecting such approval. 
  
 13.22 Representations and Warranties of CoBank. Except as expressly set forth in Section 13.21 hereof, the Administrative Agent makes no express or
implied representation or warranty and assumes no responsibilities with respect to the due authorization, execution, or delivery of the Loan Documents; the accuracy of any information, statements, or certificates provided by Borrower, the legality,
validity, or enforceability of the Loan Documents; the value of any Collateral, the filing or recording of any document; the collectibility of the Loans; the performance by Borrower of any of its obligations under the Loan Documents; or the
financial condition or solvency of Borrower or any other party obligated with respect to the Loans or the Loan Documents. 
  
 13.23 Syndication Parties’ Independent Credit Analysis. Each Syndication Party acknowledges receipt of true and correct copies of all Loan
Documents (other than any Note payable to another Syndication Party) from the Administrative Agent. Each Syndication Party agrees and represents that it has relied upon its independent review (a) of the Loan Documents, and (b) any information
independently acquired by such Syndication Party from Borrower or otherwise in making its decision to acquire an interest in the Loans independently and without reliance on the Administrative Agent. Each Syndication Party represents and warrants
that it has obtained such information as it deems necessary (including any information such Syndication Party independently obtained from Borrower or others) prior to making its decision to acquire an interest in the Loans. Each Syndication Party
further agrees and represents that it has made its own independent analysis and appraisal of and investigation into each Borrower’s authority, business, operations, financial and other condition, creditworthiness, and ability to perform its
obligations under the Loan Documents and has relied on such review in making its decision to acquire an interest in the Loans. Each Syndication Party agrees that it will continue to rely solely upon its independent review of the facts and
circumstances related to Borrower, and without reliance upon the Administrative 
  

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 Agent, in making future decisions with respect to all matters under or in connection with the Loan Documents and the
Loans. The Administrative Agent assumes no responsibility for the financial condition of Borrower or for the performance of Borrower’s obligations under the Loan Documents. Except as otherwise expressly provided herein, no Syndication Party
shall have any duty or responsibility to furnish to any other Syndication Parties any credit or other information concerning Borrower which may come into its possession. 
  
 13.24 No Joint Venture or Partnership. Neither the execution of this Credit Agreement, the sharing in the Loans, nor
any agreement to share in payments or losses arising as a result of this transaction is intended to be or to create, and the foregoing shall not be construed to be, any partnership, joint venture or other joint enterprise between the Administrative
Agent and any Syndication Party, nor between or among any of the Syndication Parties. 
  
 13.25 Purchase for Own Account; Restrictions on Transfer; Participations. Each Syndication Party represents that it has acquired and is retaining its interest in the Loans for its own account in the ordinary
course of its banking or financing business. Each Syndication Party agrees that it will not sell, assign, convey or otherwise dispose of (“Transfer”) to any Person, or create or permit to exist any lien or security interest on, all
or any part of its interest in the Loans without the prior written consent of the Administrative Agent and Borrower (which consent will not be unreasonably withheld); provided that: (a) any such Transfer (except a Transfer to another Syndication
Party) must be in a minimum amount of $5,000,000.00; (b) each Syndication Party must maintain an Individual Commitment of no less than $5,000,000.00, unless it Transfers its entire interest in the Loans; (c) no consent shall be required from
Borrower during any period when an Event of Default shall have occurred and be continuing; (d) the transferee must execute an agreement substantially in the form of Exhibit 13.25 hereto (“Syndication Acquisition Agreement”)
and assume all of the transferor’s obligations hereunder and execute such documents as the Administrative Agent may reasonably require; and (e) the Syndication Party making such Transfer must pay the Administrative Agent an assignment fee of
$3,500.00. Upon receipt of such fee and the properly executed Syndication Acquisition Agreement, the assignee of such Transfer shall thereafter be treated as the Syndication Party with respect to the Syndication Interest subject to the Transfer and
shall receive all future Payment Distributions, and the assignor and assignee shall make all adjustments and payments between themselves appropriate with respect to such future Payment Distributions. Any Syndication Party may participate any part of
its interest in the Loans to any Person with the prior written consent of the Administrative Agent and Borrower (which consent will not be unreasonably withheld), provided that (l) no such consent shall be required where the participant is a Person
at least fifty percent (50%) the equity interest in which is owned by such Syndication Party or which owns at least fifty percent (50%) of the equity interest in such Syndication Party or at least fifty percent (50%) of the equity interest of which
is owned by the same Person which owns at least fifty percent (50%) of the equity interest of such Syndication Party and (m) no consent shall be required from Borrower during any period when an Event of Default shall have occurred and be continuing,
and, further, each Syndication Party understands and agrees 
  

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 that in the event of any such participation: (y) its obligations hereunder will not change on account of such
participation, and (z) except as provided in Section 13.26 hereof with respect to voting rights, (i) the participant will have no rights under this Credit Agreement, including, without limitation, voting rights (except for such participants which
qualify as a Voting Participant) or the right to receive payments or distributions; and (ii) the Administrative Agent shall continue to deal directly with the Syndication Party with respect to the Loans (including with respect to voting rights -
except for such participants which qualify as a Voting Participant) as though no participation had been granted and will not be obligated to deal directly with any participant. Notwithstanding any provision contained herein to the contrary, any
Syndication Party may at any time pledge or assign all or any portion of its interest in the Loans to any Federal Reserve Bank or the Federal Farm Credit Bank’s Funding Corporation in accordance with applicable law. 
  
 13.26 Certain Participants’ Voting Rights. All Persons who (a)
have purchased a participation interest in the minimum amount of $10,000,000.00 in a Syndication Party’s Syndication Interest on or after the Closing Date; and (b) are, by written notice (“Voting Participant Notification”),
designated, by Agriland or any other Syndication Party (as applicable), to Borrower and the Administrative Agent as being entitled to be accorded the rights of a Voting Participant hereunder (each a “Voting Participant”), shall be
entitled to vote (and the voting rights of Agriland or such Syndication Party, as applicable, shall be correspondingly reduced), on a dollar basis, as if such participant were a Syndication Party, on any matter requiring or allowing a Syndication
Party, to provide or withhold its consent, or to otherwise vote on any proposed action. To be effective, each Voting Participant Notification shall, with respect to such Voting Participant, (i) state the full name, as well as all contact information
required of a Syndication Party as set forth on the Syndication Party signature page hereto, (ii) state the dollar amount of participation interest purchased. 
  

13.27 Method of Making Payments. Payment and transfer of all amounts owing or to be paid or remitted hereunder to the Administrative Agent by
the Syndication Parties, including, without limitation, payment of the Advance Payment, shall be by wire transfer in accordance with the instructions contained on Exhibit 13.27 hereto (“Wire Instructions”). Payment and
transfer of all amounts to be paid or remitted hereunder to the Syndication Parties by the Administrative Agent, including, without limitation, Payment Distributions, shall be by wire transfer in accordance with the instructions contained on their
respective signature pages hereto. 
  
 13.28 Events of
Syndication Default/Remedies. 
  
 13.28.1 Syndication
Party Default. Any of the following occurrences, failures or acts, with respect to any of the Syndication Parties shall constitute an “Event of Syndication Default” hereunder by such Syndication Party: (a) if any representation
or warranty made by such Syndication Party in this Credit Agreement shall be found to have been untrue in any material respect; (b) if such Syndication Party fails to make any distributions or payments required under this Credit Agreement within
five (5) days of the date required; (c) if such Syndication Party breaches any other covenant, 
  

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 agreement, or provision of this Credit Agreement which breach shall have continued uncured for a period of thirty (30)
consecutive days after such breach first occurs, unless a shorter period is required to avoid prejudicing the rights and position of the other Syndication Parties; (d) if any agency having supervisory authority over such Syndication Party, or any
creditors thereof, shall file a petition to reorganize or liquidate such Syndication Party pursuant to any applicable federal or state law or regulation and such petition shall not be discharged or denied within fifteen (15) days after the date on
which it is filed; (e) if by the order of a court of competent jurisdiction or by any appropriate supervisory agency, a receiver, trustee or liquidator shall be appointed for such Syndication Party or for all or any material part of its property or
if such Syndication Party shall be declared insolvent; or (f) if such Syndication Party shall be dissolved, or shall make an assignment for the benefit of its creditors, or shall file a petition seeking to take advantage of any debtors’ act,
including the bankruptcy act, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver or liquidator of all or any material part of its property. 
  
 13.28.2 Remedies. Upon the occurrence of an Event of Syndication
Default, the non-defaulting Syndication Parties, acting by, or through the direction of, a simple majority of the non-defaulting Syndication Parties (determined based on the ratio of the total of their Individual Commitments to the Aggregate
Commitment), may, in addition to any other remedy specifically set forth in this Credit Agreement, have and exercise any and all remedies available generally at law or equity, including the right to damages and to specific performance. 

 
 13.29 Withholding Taxes. Each Syndication Party represents that it
is entitled to receive any payments to be made to it hereunder without the withholding of any tax and will furnish to the Administrative Agent and to Borrower such forms, certifications, statements and other documents as the Administrative Agent or
Borrower may request from time to time to evidence such Syndication Party’s exemption from the withholding of any tax imposed by any jurisdiction or to enable the Administrative Agent or Borrower, as the case may be, to comply with any
applicable laws or regulations relating thereto. Without limiting the effect of the foregoing, if any Syndication Party is not created or organized under the laws of the United States of America or any state thereof, such Syndication Party will
furnish to the Administrative Agent and Borrower IRS Form 4224 or Form 1001, or such other forms, certifications, statements or documents, duly executed and completed by such Syndication Party, as evidence of such Syndication Party’s exemption
from the withholding of United States tax with respect thereto. Notwithstanding anything herein to the contrary, Borrower shall not be obligated to make any payments hereunder to or for the benefit of such Syndication Party until such Syndication
Party shall have furnished to the Administrative Agent and Borrower the requested form, certification, statement or document. 
  
 13.30 Amendments Concerning Agency Function. The Administrative Agent shall not be bound by any waiver, amendment, supplement or modification of
this Credit Agreement or any other Loan Document which affects its duties hereunder or thereunder unless it shall have given its prior written consent thereto. 
  

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 13.31 Reallocation of Outstanding Advances. Each of the Syndication Parties agrees that: (a) the
aggregate outstanding balance of 7 Year Advances under the 2000 Credit Agreement as of the Closing Date and the aggregate outstanding balance of 10 Year Advances as of the Closing Date shall on such date be aggregated and reallocated among the
Syndication Parties (as though they were Advances hereunder) in accordance with the ratio which their Individual Commitment bears to the Aggregate Commitment on such date as determined by the Administrative Agent; and (c) to the extent such
reallocation as described in clause (a) of this Section (“Reallocation”) results in the Advances allocated to any Syndication Party being in excess of the 7 Year Advances and 10 Year Advances which were allocated to such Syndication
Party under the 2000 Credit Agreement immediately prior to such Reallocation, such Syndication Party shall remit to the Administrative Agent funds in the amount of such excess by 2:00 P.M. (Central time) on the Closing Date in the manner provided in
Section 13.27 hereof. To the extent such Reallocation results in the Advances allocated to any Syndication Party being less than the 7 Year Advances and 10 Year Advances which were allocated to such Syndication Party under the 2000 Credit Agreement
immediately prior to such Reallocation (“Reduction”), the Administrative Agent shall, from funds it receives pursuant to clause (c) of this Section, remit the amount of such Reduction to such Syndication Party in the manner provided
in Section 13.27 hereof. 
  
 13.32 Further Assurances. The
Administrative Agent and each Syndication Party agree to take whatever steps and execute such documents as may be reasonable and necessary to implement this Article 13 and to carry out fully the intent thereof. 
  
 ARTICLE 14. MISCELLANEOUS 
  
 14.1 Costs and Expenses. To the extent permitted by law, Borrower
agrees to pay to the Administrative Agent and/or the Syndication Parties, as applicable, on demand, all out-of-pocket costs and expenses (a) reasonably incurred by the Administrative Agent (including, without limitation, the reasonable fees and
expenses of counsel retained by the Administrative Agent, and including fees and expenses incurred for consulting, appraisal, engineering, inspection, and environmental assessment services) in connection with the preparation, negotiation, and
execution of the Fee Letter, mandate letter, Summary of Terms and Conditions, and the Amendment Documents and the transactions contemplated thereby, processing the Borrowing Notices, and processing requests for and implementing Pari Passu Loans, and
(b) incurred by the Administrative Agent or any Syndication Party (including, without limitation, the reasonable fees and expenses of counsel retained by the Administrative Agent and the Syndication Parties) in connection with the enforcement or
protection of the Syndication Parties’ rights under the Loan Documents upon the occurrence of an Event of Default, including without limitation collection of the Loan or enforcement of rights against the Collateral (regardless of whether such
enforcement or collection is by court action or otherwise) or, unless it is determined by a final non-appealable judgment that the Administrative Agent or such Syndication Party, as applicable, has acted in a grossly negligent or willful manner,
upon the commencement of an action by Borrower against the Administrative Agent or any Syndication Party. Borrower shall not be obligated to pay the costs or expenses of any Person whose only interest in the Loan is as a holder of a participation
interest. 
  

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 14.2 Service of Process and Consent to Jurisdiction. Borrower and each Syndication Party hereby
agrees that any litigation with respect to this Credit Agreement or to enforce any judgment obtained against such Person for breach of this Credit Agreement or under the Notes or other Loan Documents may be brought in the courts of the State of
Colorado and in the United States District Court for the District of Colorado (if applicable subject matter jurisdictional requirements are present), as the Administrative Agent may elect; and, by execution and delivery of this Credit Agreement,
Borrower and each Syndication Party irrevocably submits to such jurisdiction. With respect to litigation concerning this Credit Agreement or under the Notes or other Loan Documents within the jurisdiction of the courts of the State of Colorado or
the United States District Court for the District of Colorado, Borrower and each Syndication Party hereby irrevocably appoints, until six (6) months after the expiration of the Maturity Date (as it may be extended at anytime), The Corporation
Company, or such other Person as it may designate in writing to the Administrative Agent, in each case with offices in Denver, Colorado and otherwise reasonably acceptable to the Administrative Agent to serve as the agent of Borrower or such
Syndication Party to receive for and on its behalf at such agent’s Denver, Colorado office, service of process, which service may be made by mailing a copy of any summons or other legal process to such Person in care of such agent. Borrower and
each Syndication Party agrees that it shall maintain a duly appointed agent in Colorado for service of summons and other legal process as long as it remains obligated under this Credit Agreement and shall keep the Administrative Agent advised in
writing of the identity and location of such agent. The receipt by such agent and/or by Borrower or such Syndication Party, as applicable, of such summons or other legal process in any such litigation shall be deemed personal service and acceptance
by Borrower or such Syndication Party, as applicable, for all purposes of such litigation. 
  
 14.3 Jury Waiver. IT IS MUTUALLY AGREED BY AND BETWEEN THE ADMINISTRATIVE AGENT, EACH SYNDICATION PARTY, AND BORROWER THAT THEY EACH WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY ANY
OF THEM AGAINST ANY OTHER PARTY ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS CREDIT AGREEMENT, THE NOTES, OR THE OTHER LOAN DOCUMENTS. 
  
 14.4 Notices. All notices, requests and demands required or permitted under the terms of this Credit Agreement shall
be in writing and (a) shall be addressed as set forth below or at such other address as either party shall designate in writing, (b) shall be deemed to have been given or made: (i) if delivered personally, immediately upon delivery, (ii) if by
telex, telegram, or facsimile transmission, immediately upon sending and upon confirmation of receipt, (iii) if by nationally recognized overnight courier service with instructions to deliver the next Banking Day, one (1) Banking Day after sending,
and (iv) if by United States Mail, certified mail, return receipt requested, five (5) days after mailing. 
  

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 14.4.1 Borrower: 
  
 Pilgrim’s Pride Corporation 
 110 South Texas Street 
 Pittsburg, Texas 75686 
 FAX: (903) 856-7505 
 Attention: Chief
Financial Officer 
  
 with a copy to: 
  
 Baker & McKenzie 
 4500 Trammell Crow Center 
 2001 Ross Avenue

 Dallas, Texas 75201 
 FAX:
(214) 965-5902 
 Attention: Alan G. Harvey 
  
 14.4.2 Administrative Agent: 
  
 CoBank, ACB 
 5500 South Quebec Street

 Greenwood Village, Colorado 80111 
 FAX: (303) 694-5830 
 Attention: Syndications Coordinator, Corporate Finance Division 
  
 14.4.3 Agriland: 
  
 Agriland, FCS 
 3210 W. Northwest Loop 323 
 Tyler, Texas
75702 
 FAX: (903) 693-6588 
 Attention: Steve Ogletree 
  
 14.4.4 Syndication
Parties: 
  
 See signature pages hereto. 
  
 14.5 Liability of Administrative Agent and Co-Arrangers. Neither the
Administrative Agent nor the Co-Arrangers shall have any liabilities or responsibilities to Borrower or any Subsidiary on account of the failure of any Syndication Party to perform its obligations hereunder or to any Syndication Party on account of
the failure of Borrower or any Subsidiary to perform their respective obligations hereunder or under any other Loan Document. 
  
 14.6 Successors and Assigns. This Credit Agreement shall be binding upon and inure to the benefit of Borrower, the Administrative Agent, the
Co-Arrangers, 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 of the Syndication Parties.

  

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 14.7 Severability. The invalidity or unenforceability of any provision of this Credit Agreement or
the other Loan Documents shall not affect the remaining portions of such documents or instruments; in case of such invalidity or unenforceability, such documents or instruments shall be construed as if such invalid or unenforceable provisions had
not been included therein. 
  
 14.8 Entire Agreement. This
Credit Agreement (together with all exhibits hereto, which are incorporated herein by this reference), the other Loan Documents, and the letter of even date herewith between Borrower and the Administrative Agent regarding certain post-closing
matters (“Post Closing Letter”), represent the entire understanding of the Administrative Agent, the Co-Arrangers, each Syndication Party, and Borrower with respect to the subject matter hereof and shall replace and supersede any
previous agreements of the parties with respect to the subject matter hereof. 
  
 14.9 Applicable Law. To the extent not governed by federal law, this Credit Agreement and the other Loan Documents, and the rights and obligations of the parties hereto and thereto shall be governed by and
interpreted in accordance with the internal laws of the State of Colorado, without giving effect to any otherwise applicable rules concerning conflicts of law. 
  

14.10 Captions. The captions or headings in this Credit Agreement and any table of contents hereof are for convenience only and in no way
define, limit or describe the scope or intent of any provision of this Credit Agreement. 
  
 14.11 Complete Agreement; Amendments. This Credit Agreement, the Notes, and the other Loan Documents are intended by the parties hereto to be a complete and final expression of their agreement and may not be
contradicted by evidence of any prior or contemporaneous oral agreement. The Administrative Agent, each Syndication Party, and Borrower acknowledge and agree that there is no unwritten oral agreement between them with respect to the subject matter
of this Credit Agreement. This Credit Agreement may not be modified or amended unless such modification or amendment is in writing and is signed by Borrower, the Administrative Agent, the Co-Arrangers, and the Required Lenders or, where this Credit
Agreement requires the consent of all Syndication Parties, then by all of the Syndication Parties (and each Syndication Party hereby agrees to execute any such amendment approved pursuant to Section 13.7 hereof). Borrower agrees that it shall
reimburse the Administrative Agent for all reasonable fees and expenses incurred by the Administrative Agent in retaining outside legal counsel in connection with any amendment or modification to this Credit Agreement. 
  
 14.12 Additional Costs of Maintaining Loan. Borrower shall pay to the
Administrative Agent from time to time such amounts as the Administrative Agent may determine to be necessary to compensate any Syndication Party for any increase in costs to such Syndication Party which the Administrative Agent reasonably
determines, based 
  

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 on information presented to it by such Syndication Party, are attributable to such Syndication Party’s making or
maintaining an Advance hereunder or its obligation to make such Advance, or any reduction in any amount receivable by such Syndication Party under this Credit Agreement or the Notes payable to it in respect to such Advance or such obligation (such
increases in costs and reductions in amounts receivable being herein called “Additional Costs”), resulting from any change after the date of this Credit Agreement in United States federal, state, municipal, or foreign laws or
regulations (including Regulation D of the Federal Reserve Board), or the adoption or making after such date of any interpretations, directives, or requirements applying to a class of banks or financial institutions including such Syndication Party
of or under any United States federal, state, municipal, or foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof
(“Regulatory Change”), which: (a) changes the basis of taxation of any amounts payable to such Syndication Party under this Credit Agreement or the Notes payable to such Syndication Party in respect of such Advance (other than taxes
imposed on the overall net income of such Syndication Party); or (b) imposes or modifies any reserve, special deposit, or similar requirements relating to any extensions of credit or other assets of, or any deposits with or other liabilities of,
such Syndication Party; or (c) imposes any other condition affecting this Credit Agreement or the Notes payable to such Syndication Party (or any of such extensions of credit or liabilities). The Administrative Agent will notify Borrower of any
event occurring after the date of this Credit Agreement which will entitle such Syndication Party to compensation pursuant to this Section as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. The
Administrative Agent shall include with such notice, a certificate from such Syndication Party setting forth in reasonable detail the calculation of the amount of such compensation. Determinations by the Administrative Agent for purposes of this
Section of the effect of any Regulatory Change on the costs of such Syndication Party of making or maintaining an Advance or on amounts receivable by such Syndication Party in respect of Advances, and of the additional amounts required to compensate
such Syndication Party in respect of any Additional Costs, shall be conclusive absent manifest error, provided that such determinations are made on a reasonable basis. 
  
 14.13 Capital Requirements. In the event after the date of this Credit Agreement of the introduction of or any change
in: (a) any law or regulation; (b) the judicial, administrative, or other governmental interpretation of any law or regulation; or (c) compliance by any Syndication Party or any corporation controlling any such Syndication Party with any guideline
or request from any governmental authority (whether or not having the force of law) has the effect of requiring an increase in the amount of capital required or expected to be maintained by such Syndication Party or any corporation controlling such
Syndication Party, and such Syndication Party certifies, based on a reasonable determination, that such increase is based in any part upon such Syndication Party’s obligations hereunder with respect to the Revolving Loan, and other similar
obligations, Borrower shall pay to such Syndication Party such additional amount as shall be certified by such Syndication Party to the Administrative Agent and to Borrower to be the net present value of (y) the amount by which such 
  

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 increase in capital reduces the rate of return on capital which such Syndication Party could have achieved over the
period remaining until the Maturity Date, but for such introduction or change, (z) multiplied by the product of such Syndication Party’s Individual Pro Rata Share times the Aggregate Commitment. The Administrative Agent will notify Borrower of
any event occurring after the date of this Credit Agreement that will entitle any such Syndication Party to compensation pursuant to this Section as promptly as practicable after it obtains knowledge thereof and of such Syndication Party’s
determination to request such compensation. The Administrative Agent shall include with such notice, a certificate from such Syndication Party setting forth in reasonable detail the calculation of the amount of such compensation. Determinations by
any Syndication Party for purposes of this Section of the effect of any increase in the amount of capital required to be maintained by any such Syndication Party and of the amount of compensation owed to any such Syndication Party under this Section
shall be conclusive absent manifest error, provided that such determinations are made on a reasonable basis. 
  
 14.14 Replacement Notes. Upon receipt by Borrower of evidence satisfactory to it of: (a) the loss, theft, destruction or mutilation of any Note,
and (in case of loss, theft or destruction) of the agreement of the Syndication Party to which the Note was payable to indemnify Borrower, and upon surrender and cancellation of such Note, if mutilated; or (b) the assignment by any Syndication Party
of all or a portion of its Syndication Interest hereunder and the Note relating thereto, pursuant to this Credit Agreement, including assignments as a result of the Reallocation, then Borrower will deliver in lieu of such Note a new Note or, in the
case of an assignment of a portion of a Syndication Interest, new Notes, for any remaining balance. All Notes executed pursuant to this Section shall be dated as of the Effective Date. The Syndication Parties shall, as soon as practical after
receipt of such new executed Notes, return to Borrower the Note which has been replaced by such new Note or Notes. 
  
 14.15 Mutual Release. Upon full indefeasible payment and satisfaction of the Bank Debt and Notes and the other obligations contained in this Credit
Agreement, the parties, including Borrower, the Administrative Agent, the Co-Arrangers, and each Syndication Party shall, except as provided in Articles 11 and 13 hereof, thereupon automatically each be fully, finally, and forever released and
discharged from any further claim, liability, or obligation in connection with the Bank Debt. 
  
 14.16 Liberal Construction. This Credit Agreement constitutes a fully negotiated agreement between commercially sophisticated parties, each assisted by legal counsel, and shall not be construed and interpreted
for or against any party hereto. 
  
 14.17 Counterparts.
This Credit Agreement 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 
  

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 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 Credit Agreement by telefax, facsimile, or e-mail transmission of an Adobe file format document also shall deliver an
original executed counterpart of this Credit Agreement, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Credit Agreement. 
  
 14.18 Confidentiality. Each Syndication Party shall, subject to the
exceptions below, maintain the confidential nature of, and shall not use or disclose, any of Borrower’s financial information, confidential information or trade secrets without first obtaining Borrower’s written consent. Nothing in this
Section shall require any Syndication Party to obtain such consent following the occurrence and during the continuation of an Event of Default in connection with the exercise by the Administrative Agent or any Syndication Party of its or their
rights and remedies hereunder or under any of the other Loan Documents. The obligations of the Syndication Parties shall in no event apply to: (a) providing information about Borrower to any financial institution contemplated in Sections 13.6,
13.13, and 13.25 hereof or to such Syndication Party’s parent holding company or any of such Syndication Party’s affiliates (provide such Person is bound by similar confidentiality provisions limiting further disclosure); (b) any situation
in which any Syndication Party is required by law, regulation, or subpoena or required by any Governmental Authority to disclose information; (c) providing information to counsel to the Administrative Agent or any Syndication Party in connection
with the transactions contemplated by the Loan Documents or in connection with the exercise of its or their rights or remedies thereunder; (d) providing information to officers, directors, employees, agents and representatives of such Syndication
Party as need to know such information or to independent auditors retained by such Syndication Party (it being understood that they shall be informed by such Syndication Party of the confidential nature of such information and that such Syndication
Party shall take reasonable steps to cause them to treat such information on a confidential basis); (e) any information that is in or becomes part of the public domain otherwise than through a wrongful act of such Syndication Party or any of its
employees or agents thereof; (f) any information that is in the possession of any Syndication Party prior to receipt thereof from Borrower or any other Person known to such Syndication Party to be acting on behalf of Borrower; (g) any information
that is independently developed by any Syndication Party; and (h) any information that is disclosed to any Syndication Party by a third party that has no obligation of confidentiality with respect to the information disclosed. A Syndication
Party’s confidentiality requirements continue after it is no longer a Syndication Party under this Credit Agreement. 
  
 14.19 Limitation of Liability. NEITHER BORROWER NOR ANY SUBSIDIARY MAY MAKE ANY CLAIM AGAINST THE ADMINISTRATIVE AGENT, ANY SYNDICATION PARTY, OR
THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS OR AGENTS THEREOF FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES IN RESPECT OF ANY BREACH OR WRONGFUL CONDUCT (WHETHER BASED IN CONTRACT, TORT, 
  

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 OR OTHERWISE) IN CONNECTION WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS CREDIT
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH. BORROWER HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE (AND AGREES NOT TO CONSENT TO ANY SUCH SUIT BY A SUBSIDIARY) UPON ANY CLAIM FOR ANY
SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST. IN ADDITION, BORROWER ACKNOWLEDGES AND AGREES THAT NEITHER THE ADMINISTRATIVE AGENT NOR ANY SYNDICATION PARTY HAS ANY DUTY OR REVIEW OR ADVISE BORROWER WITH RESPECT
TO ANY PHASE OF ITS BUSINESS OPERATIONS OF CONDITION, THE RELATIONSHIP BEING SOLELY THAT OF DEBTOR AND CREDITORS AND THEIR BEING NO TRUST RELATIONSHIP OR RELIANCE. 
  
 14.20 Departing Lenders; Payment; Transfer and Re-allocation. Notwithstanding anything to the contrary set forth in
Section 13.25 hereof, on and as of the Closing Date, subject to satisfaction of the conditions set forth in Section 8.1, (a) each of the Departing Lenders shall sell, assign and transfer, and each of the Syndication Parties hereunder shall purchase
and assume, such interests in the Loans and Individual Commitments, in each case, outstanding immediately prior to the Closing Date (or as increased hereunder), as shall be necessary so that, after giving effect to all such assignments and
purchases, the Individual Commitments will be held by the Syndication Parties hereunder as set forth, respectively, on Schedule 1 hereto; and (b) the aggregate outstanding balance of 7 Year Advances and of the 10 Year Advances under the 2000
Credit Agreement shall be deemed to be Advances hereunder. The assignments and purchases provided for in this Section 14.20 shall be without recourse, warranty or representation, except that each Departing Lender assigning any interest shall be
deemed to have represented that it is the legal and beneficial owner of the interests assigned by it and that such interests are free and clear of any adverse claim. The purchase price for each such assignment and purchase shall equal the principal
amount of the 7 Year Advances and/or the 10 Year Advances (as such terms are defined in the 2000 Credit Agreement) purchased and shall be payable to the Administrative Agent for distribution, as applicable, to the Syndication Parties and Departing
Lenders, respectively. Borrower shall, on the Closing Date, pay to the Administrative Agent for distribution, as applicable, to the Syndication Parties whose Individual Commitments are being reduced from the 2000 Credit Agreement and to Departing
Lenders, respectively, the amount of all interest owing under the 2000 Credit Agreement on such date, as well as all Funding Losses, if any, incurred by Departing Lenders under the 2000 Credit Agreement as a result of the assignments and purchases
made pursuant to the provisions of this Section. As a condition to its receipt of amounts owing to it as provided in this Section, each Departing Lender shall return to the Administrative Agent its 7 Year Revolving Note and/or its 10 Year Revolving
Note (as such terms are defined in the 2000 Credit Agreement), as applicable. Each Departing Lender shall, upon receipt of amounts owing to it as provided in this Section, be deemed to have assigned to the Administrative Agent (for the purposes of
this Section 14.20) its 7 Year Revolving Note and/or its 10 Year Revolving Note (as such 
  

 88 

 terms are defined in the 2000 Credit Agreement), as applicable, and its Individual Commitment under the 2000 Credit
Agreement as provided herein, without the need to execute any documents to reflect such assignments except as may be required by the Administrative Agent. Concurrently with the effectiveness of the assignments and purchases provided for above, the
Departing Lenders shall cease to be parties to the 2000 Credit Agreement and shall be released from all further obligations thereunder; provided, however, that the Departing Lenders shall continue to be entitled to the benefits of
Subsection 4.4.2 and Sections 12.1, 12.2, 15.12, 15.13 and 15.19 of the 2000 Credit Agreement as in effect immediately prior to the Closing Date. 
  
 14.21 Affect of Amended and Restated Credit Agreement. This Credit Agreement shall be effective from the Effective Date forward, and the execution
of this Credit Agreement shall not relieve any party to the 2000 Credit Agreement from their respective obligations thereunder for the period from the Original Effective Date to the Effective Date or from any liability for the failure to perform
such obligations or from any liability arising out of indemnification obligations under the 2000 Credit Agreement. 
  
 [SIGNATURES BEGIN ON NEXT PAGE.] 
  

 89 

 IN WITNESS WHEREOF, the parties have executed this Credit Agreement as of the date first above written.

  

			
	 BORROWER:

	
	PILGRIM’S PRIDE CORPORATION, a corporation formed under the laws of the State of Delaware
		
	 By:
	 	 /s/ Richard A. Cogdill

	 Name:
	 	 Richard A. Cogdill

	 Title:
	 	 Chief Financial Officer

	
	 ADMINISTRATIVE AGENT:

	
	 COBANK, ACB

		
	 By:
	 	 /s/ Antony Bahr

	 Name:
	 	 Antony Bahr

	 Title:
	 	 Senior Vice President

	
	 CO-ARRANGER:

	
	 AGRILAND, FCS

		
	 By:
	 	 /s/ Steve Ogletree

	 Name:
	 	 Steve Ogletree

	 Title:
	 	 Chief Executive Officer

  

 90 

  

			
	 SYNDICATION PARTIES:

	
	 Agriland, FCS

		
	 By:
	 	 /s/ Steve Ogletree

	 Name:
	 	 Steve Ogletree

	 Title:
	 	 Chief Executive Officer

	
	 Contact Name: Steve Ogletree

	 Title: Chief Executive Officer

	 Address: 3210 W. Northwest Loop 323

	                 Tyler, Texas
75102

	 Phone No.: (903) 593-0150

	 Fax No.: (903) 593-6588

	 e-mail address:
                    -

	 Individual Commitment: $475,000,000.00

	 Payment Instructions:
                 Agriland, FCS
                 ABA No.: 114924700
                 Acct. Name: Agriland Farm Credit Services
                 Account No.:
306100-100
                 Attn:
Steve Ogletree
                 Reference: Pilgrim’s Pride

  

 91 

			
	 SYNDICATION PARTIES:

	
	 Deere Credit, Inc.

		
	 By:
	 	 /s/ Raymond L. Murphey

	 Name:
	 	 Raymond L. Murphey

	 Title:
	 	 Senior Account Credit Manager

	
	 Contact Name: Raymond L. Murphey

	 Title: Senior Account Credit Manager

	 Address: P.O. Box 6650 – Dept. 140

	 6400 N.W. 86th Street

	 Johnston, Iowa 50131

	 Phone No.: 515/267-4058

	 Fax No.: 515/267-4020

	 e-mail address: MurpheyRaymond@JohnDeere.com

	 Individual Commitment: $25,000,000.00

	 Payment Instructions:
                 First Chicago NBD Bank

                ABA: 071000013
                 For account of Deere Credit
Services
                 Account
No.: 51-52135
                 Ref:
Pilgrim’s Pride Syndication Loan

  

 92Third Amended and Restated Secured Credit Agreement

 Exhibit 10.2 
  
 THIRD AMENDED AND RESTATED SECURED
CREDIT AGREEMENT 
  
 AMONG 
  
 PILGRIM’S PRIDE CORPORATION 
  
 HARRIS TRUST AND SAVINGS BANK 
 Individually, as Agent and as Lead Arranger 
  
 THE LENDERS FROM TIME TO TIME PARTIES HERETO 
 as Lenders 
  
 SUNTRUST BANK 
 as Syndication Agent

  
 AND 
  
 U.S. BANK NATIONAL ASSOCIATION

 WELLS FARGO BANK NATIONAL ASSOCIATION 
 as Co-Documentation Agents 
  
 Dated as of April 7, 2004 

 TABLE OF CONTENTS 
 PILGRIM’S PRIDE CORPORATION 
 THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT 
  

							
	SECTION 1.	  	 THE REVOLVING CREDIT
	  	1
				
	 	  	 Section 1.1.
	  	 The Revolving Credit
	  	1
	 	  	 Section 1.2.
	  	 The Notes
	  	2
	 	  	 Section 1.3.
	  	 Interest Rates
	  	3
	 	  	 Section 1.4.
	  	 Conversion and Continuation of Revolving Credit Loans
	  	4
	 	  	 Section 1.5.
	  	 Letters of Credit
	  	4
	 	  	 Section 1.6.
	  	 Reimbursement Obligation
	  	5
	 	  	 Section 1.7.
	  	 Manner of Borrowing and Rate Selection
	  	6
	 	  	 Section 1.8.
	  	 Participation in L/Cs
	  	7
	 	  	 Section 1.9.
	  	 Capital Adequacy
	  	7
	 	  	 Section 1.10.
	  	 The Bond Letter of Credit
	  	8
	 	  	 Section 1.11.
	  	 Bond Reimbursement Obligation
	  	8
	 	  	 Section 1.12.
	  	 Participation in the Bond L/C
	  	8
	 	  	 Section 1.13.
	  	 Reductions and Reinstatements
	  	9
	 	  	 Section 1.14.
	  	 Liability of Harris
	  	9
	 	  	 Section 1.15.
	  	 Reliance by Harris
	  	9
	 	  	 Section 1.16.
	  	 Notice of Default
	  	10
	 	  	 Section 1.17.
	  	 Indemnification
	  	10
	 	  	 Section 1.18.
	  	 Documents and Reports
	  	10
	 	  	 Section 1.19.
	  	 Amendments
	  	10
			
	 SECTION 2.
	  	 THE COMPETITIVE BID FACILITY
	  	11
				
	 	  	 Section 2.1.
	  	 Amount and Term
	  	11
	 	  	 Section 2.2.
	  	 Competitive Bid Requests
	  	11
	 	  	 Section 2.3.
	  	 Submission of Competitive Bids
	  	12
	 	  	 Section 2.4.
	  	 Notice of Bids
	  	12
	 	  	 Section 2.5.
	  	 Acceptance or Rejection of Bids
	  	12
	 	  	 Section 2.6.
	  	 Notice of Acceptance or Rejection of Bid
	  	13
	 	  	 Section 2.7.
	  	 Restrictions on Bid Loans
	  	13
	 	  	 Section 2.8.
	  	 Minimum Amount
	  	13
	 	  	 Section 2.9.
	  	 The Notes
	  	13
	 	  	 Section 2.10.
	  	 Term of and Interest on Bid Loans
	  	14
	 	  	 Section 2.11.
	  	 Disbursement of Bid Loans
	  	14
	 	  	 Section 2.12.
	  	 Reliance on Telephonic Notices; Indemnity
	  	14
	 	  	 Section 2.13.
	  	 Telephonic Notice
	  	15
			
	 SECTION 3.
	  	 FEES, PREPAYMENTS, TERMINATIONS AND PLACE AND
APPLICATION OF PAYMENTS.
	  	15
				
	 	  	 Section 3.1.
	  	 Facility Fee
	  	15
	 	  	 Section 3.2.
	  	 Agent’s Fee
	  	16
	 	  	 Section 3.3.
	  	 Optional Prepayments
	  	16

							
	 	  	 Section 3.4.
	  	 Mandatory Prepayments - Borrowing Base
	  	16
	 	  	 Section 3.5.
	  	 Place and Application of Payments
	  	17
	 	  	 Section 3.6.
	  	 Commitment Terminations
	  	17
			
	 SECTION 4.
	  	 DEFINITIONS
	  	17
				
	 	  	 Section 4.1.
	  	 Certain Terms Defined
	  	17
	 	  	 Section 4.2.
	  	 Accounting Terms
	  	32
	 	  	 Section 4.3.
	  	 Interpretation
	  	32
			
	 SECTION 5.
	  	 REPRESENTATIONS AND WARRANTIES.
	  	32
				
	 	  	 Section 5.1.
	  	 Organization and Qualification
	  	32
	 	  	 Section 5.2.
	  	 Subsidiaries
	  	33
	 	  	 Section 5.3.
	  	 Financial Reports
	  	33
	 	  	 Section 5.4.
	  	 Litigation; Tax Returns; Approvals
	  	33
	 	  	 Section 5.5.
	  	 Regulation U
	  	34
	 	  	 Section 5.6.
	  	 No Default
	  	34
	 	  	 Section 5.7.
	  	 ERISA
	  	34
	 	  	 Section 5.8.
	  	 Security Interests and Debt
	  	34
	 	  	 Section 5.9.
	  	 Accurate Information
	  	34
	 	  	 Section 5.10.
	  	 Environmental Matters
	  	34
	 	  	 Section 5.11.
	  	 Enforceability
	  	35
	 	  	 Section 5.12.
	  	 Restrictive Agreements
	  	35
	 	  	 Section 5.13.
	  	 Labor Disputes
	  	35
	 	  	 Section 5.14.
	  	 No Violation of Law
	  	36
	 	  	 Section 5.15.
	  	 No Default Under Other Agreements
	  	36
	 	  	 Section 5.16.
	  	 Status Under Certain Laws
	  	36
	 	  	 Section 5.17.
	  	 Federal Food Security Act
	  	36
	 	  	 Section 5.18.
	  	 Fair Labor Standards Act
	  	36
	 	  	 Section 5.19.
	  	 Organization and Qualification of the Guarantor
	  	37
			
	 SECTION 6.
	  	 CONDITIONS PRECEDENT
	  	37
				
	 	  	 Section 6.1.
	  	 General
	  	37
	 	  	 Section 6.2.
	  	 Each Extension of Credit
	  	37
	 	  	 Section 6.3.
	  	 Conditions to Effectiveness of Restatement
	  	38
			
	 SECTION 7.
	  	 COVENANTS
	  	39
				
	 	  	 Section 7.1.
	  	 Maintenance
	  	39
	 	  	 Section 7.2.
	  	 Taxes
	  	39
	 	  	 Section 7.3.
	  	 Maintenance of Insurance
	  	39
	 	  	 Section 7.4.
	  	 Financial Reports
	  	40
	 	  	 Section 7.5.
	  	 Inspection and Reviews
	  	41
	 	  	 Section 7.6.
	  	 Consolidation and Merger
	  	41
	 	  	 Section 7.7.
	  	 Transactions with Affiliates
	  	42
	 	  	 Section 7.8.
	  	 Leverage Ratio
	  	42

  
  

 -ii- 

							
	 	  	 Section 7.9.
	  	 Tangible Net Worth
	  	42
	 	  	 Section 7.10.
	  	 Current Ratio
	  	42
	 	  	 Section 7.11.
	  	 Net Tangible Assets to Total Liabilities
	  	42
	 	  	 Section 7.12.
	  	 Fixed Charge Coverage Ratio
	  	42
	 	  	 Section 7.13.
	  	 Minimum Net Working Capital
	  	43
	 	  	 Section 7.14.
	  	 Dividends and Certain Other Restricted Payments
	  	43
	 	  	 Section 7.15.
	  	 Liens
	  	43
	 	  	 Section 7.16.
	  	 Borrowings and Guaranties
	  	46
	 	  	 Section 7.17.
	  	 Investments, Loans and Advances
	  	48
	 	  	 Section 7.18.
	  	 Sale of Property
	  	50
	 	  	 Section 7.19.
	  	 Notice of Suit, Adverse Change in Business or Default
	  	52
	 	  	 Section 7.20.
	  	 ERISA
	  	52
	 	  	 Section 7.21.
	  	 Use of Loan Proceeds
	  	52
	 	  	 Section 7.22.
	  	 Conduct of Business and Maintenance of Existence
	  	52
	 	  	 Section 7.23.
	  	 Additional Information
	  	52
	 	  	 Section 7.24.
	  	 Supplemental Performance
	  	53
	 	  	 Section 7.25.
	  	 Compliance with Laws, etc.
	  	53
	 	  	 Section 7.26.
	  	 Environmental Covenant
	  	53
	 	  	 Section 7.27.
	  	 New Subsidiaries
	  	54
	 	  	 Section 7.28.
	  	 Guaranty Fees
	  	54
	 	  	 Section 7.29.
	  	 Sale and Leasebacks
	  	54
	 	  	 Section 7.30.
	  	 Amendments to Subordinated Debt Documents
	  	54
			
	 SECTION 8.
	  	 EVENTS OF DEFAULT AND REMEDIES.
	  	55
				
	 	  	 Section 8.1.
	  	 Definitions
	  	55
	 	  	 Section 8.2.
	  	 Remedies for Non-Bankruptcy Defaults
	  	57
	 	  	 Section 8.3.
	  	 Remedies for Bankruptcy Defaults
	  	57
	 	  	 Section 8.4.
	  	 L/Cs
	  	57
	 	  	 Section 8.5.
	  	 Remedies under the Bond Documents
	  	57
			
	 SECTION 9.
	  	 CHANGE IN CIRCUMSTANCES REGARDING FIXED RATE
LOANS
	  	58
				
	 	  	 Section 9.1.
	  	 Change of Law
	  	58
	 	  	 Section 9.2.
	  	 Unavailability of Deposits or Inability to Ascertain the Adjusted Eurodollar Rate
	  	58
	 	  	 Section 9.3.
	  	 Taxes and Increased Costs
	  	58
	 	  	 Section 9.4.
	  	 Funding Indemnity
	  	59
	 	  	 Section 9.5.
	  	 Lending Branch
	  	60
	 	  	 Section 9.6.
	  	 Discretion of Bank as to Manner of Funding
	  	60
			
	 SECTION 10.
	  	 THE AGENT
	  	60
				
	 	  	 Section 10.1.
	  	 Appointment and Powers
	  	60
	 	  	 Section 10.2.
	  	 Powers
	  	60
	 	  	 Section 10.3.
	  	 General Immunity
	  	60
	 	  	 Section 10.4.
	  	 No Responsibility for Loans, Recitals, etc
	  	61
	 	  	 Section 10.5.
	  	 Right to Indemnity
	  	61

  
  

 -iii- 

							
	 	  	 Section 10.6.
	  	 Action Upon Instructions of Banks.
	  	61
	 	  	 Section 10.7.
	  	 Employment of Agents and Counsel
	  	61
	 	  	 Section 10.8.
	  	 Reliance on Documents; Counsel
	  	61
	 	  	 Section 10.9.
	  	 May Treat Payee as Owner
	  	61
	 	  	 Section 10.10.
	  	 Agent’s Reimbursement
	  	62
	 	  	 Section 10.11.
	  	 Rights as a Lender
	  	62
	 	  	 Section 10.12.
	  	 Bank Credit Decision
	  	62
	 	  	 Section 10.13.
	  	 Resignation of Agent
	  	62
	 	  	 Section 10.14.
	  	 Duration of Agency
	  	62
	 	  	 Section 10.15.
	  	 Hedging Liability Arrangement
	  	63
	 	  	 Section 10.16.
	  	 Designation of Additional Agents
	  	63
	 	  	 Section 10.17.
	  	 Authorization to Release or Subordinate or Limit Liens.
	  	63
			
	 SECTION 11.
	  	 MISCELLANEOUS.
	  	63
				
	 	  	 Section 11.1.
	  	 Amendments and Waivers
	  	63
	 	  	 Section 11.2.
	  	 Waiver of Rights
	  	64
	 	  	 Section 11.3.
	  	 Several Obligations
	  	64
	 	  	 Section 11.4.
	  	 Non-Business Day
	  	65
	 	  	 Section 11.5.
	  	 Survival of Indemnities
	  	65
	 	  	 Section 11.6.
	  	 Documentary Taxes
	  	65
	 	  	 Section 11.7.
	  	 Representations
	  	65
	 	  	 Section 11.8.
	  	 Notices
	  	65
	 	  	 Section 11.9.
	  	 Costs and Expenses; Indemnity
	  	66
	 	  	 Section 11.10.
	  	 Counterparts
	  	66
	 	  	 Section 11.11.
	  	 Successors and Assigns
	  	66
	 	  	 Section 11.12.
	  	 No Joint Venture
	  	67
	 	  	 Section 11.13.
	  	 Severability
	  	67
	 	  	 Section 11.14.
	  	 Table of Contents and Headings
	  	67
	 	  	 Section 11.15.
	  	 Participants
	  	67
	 	  	 Section 11.16.
	  	 Assignments
	  	67
	 	  	 Section 11.17.
	  	 Sharing of Payments
	  	68
	 	  	 Section 11.18.
	  	 Withholding Taxes
	  	69
	 	  	 Section 11.19.
	  	 Jurisdiction; Venue; Waiver of Jury Trial
	  	70
	 	  	 Section 11.20.
	  	 Lawful Rate
	  	71
	 	  	 Section 11.21.
	  	 Governing Law
	  	71
	 	  	 Section 11.22.
	  	 Limitation of Liability
	  	72
	 	  	 Section 11.23.
	  	 Nonliability of Lenders
	  	72
	 	  	 Section 11.24.
	  	 No Oral Agreements.
	  	72
			
	 Signature Page
	  	 	  	S-1

  

 -iv- 

			
	 Exhibit A
	  	Secured Revolving Credit Note
	 Exhibit B
	  	Application and Agreement for Letter of Credit
	 Exhibit C
	  	Environmental Disclosure
	 Exhibit D
	  	Permitted Liens
	 Exhibit E
	  	Form of Legal Opinion
	 Exhibit F
	  	Compliance Certificate
	 Exhibit G
	  	Borrowing Base Certificate
	 Exhibit H
	  	Subsidiaries
	 Exhibit I
	  	Assignment Agreement
	 Exhibit J
	  	Labor Disputes
	 Exhibit K
	  	Existing Investments
	 Exhibit L
	  	Competitive Bid Request Confirmation
	 Exhibit M
	  	Confirmation of Notice of Competitive Bid Request
	 Exhibit N
	  	Confirmation of Competitive Bid
	 Schedule 1
	  	Revolving Credit Commitments
	 Schedule 2
	  	L/C Issuers
	 Schedule 7.16
	  	Existing Indebtedness

  

 -v- 

 PILGRIM’S PRIDE CORPORATION

  
 THIRD AMENDED
AND RESTATED 
 SECURED CREDIT AGREEMENT 
  
 Harris Trust and Savings Bank 
 Chicago, Illinois 
  
 The lenders from time to
time 
 parties hereto 
  
 Ladies and Gentlemen: 
  
 The undersigned, PILGRIM’S PRIDE CORPORATION, a Delaware corporation (the
“Company”), refers to the Second Amended and Restated Secured Credit Agreement dated as of November 5, 1999, as amended and currently in effect between the Company and you (such Second Amended and Restated Secured Credit Agreement
as so amended is hereinafter referred to as the “Credit Agreement”) pursuant to which certain of you agreed to make a revolving credit (the “Revolving Credit”) available to the Company, all as more fully set forth
therein. Each of you is hereinafter referred to individually as “Bank” and collectively as “Banks.” Harris Trust and Savings Bank in its individual capacity is sometimes referred to herein as
“Harris”, and in its capacity as Agent for the Banks is hereinafter in such capacity called the “Agent.” The Company requests you to make certain further amendments to the Credit Agreement and, for the sake of
convenience and clarity, to restate the Credit Agreement in its entirety as so amended. Accordingly, upon your acceptance hereof in the space provided for that purpose below and upon satisfaction of the conditions precedent to effectiveness
contained in Section 6.3 hereof, Sections 1 through 11 of the Credit Agreement and all Exhibits thereto shall be amended and as so amended shall be restated in their entirety to read as follows: 
  
 SECTION 1. THE
REVOLVING CREDIT. 
  
 Section
1.1. The Revolving Credit. (a) Subject to all of the terms and conditions hereof, the Banks agree, severally and not jointly, to extend a Revolving Credit to the Company which may be utilized by the Company in the form of loans (individually a
“Revolving Credit Loan” and collectively the “Revolving Credit Loans”), and L/Cs (as hereinafter defined). The aggregate principal amount of all Revolving Credit Loans under the Revolving Credit plus the aggregate
principal amount of all Bid Loans (as hereinafter defined) outstanding under this Agreement plus the amount available for drawing under all L/Cs and the aggregate principal amount of all unpaid Reimbursement Obligations (as hereinafter defined) at
any time outstanding shall not exceed the lesser of (i) the sum of the Banks’ Revolving Credit Commitments (as hereinafter defined) in effect from time to time during the term of this Agreement (as hereinafter defined) or (ii) the Borrowing
Base as determined on the basis of the most recent Borrowing Base Certificate. The Revolving Credit shall be available to the Company, and may be availed of by the Company from time to time, be repaid (subject to the restrictions on prepayment set
forth herein) and used again, during the period from the date hereof to and including April 7, 2009 (the “Termination Date”). 

 (b) At any time not earlier than 120 days prior to, nor later than 60 days prior to, the date that is two
years before the Termination Date then in effect (the “Anniversary Date”), the Company may request that the Banks extend the then scheduled Termination Date to the date one year from such Termination Date. If such request is made by
the Company each Bank shall inform the Agent of its willingness to extend the Termination Date no later than 20 days prior to such Anniversary Date. Any Bank’s failure to respond by such date shall indicate its unwillingness to agree to such
requested extension, and all Banks must approve any requested extension. At any time more than 15 days before such Anniversary Date the Banks may propose, by written notice to the Company, an extension of this Agreement to such later date on such
terms and conditions as the Banks may then require. If the extension of this Agreement to such later date is acceptable to the Company on the terms and conditions proposed by the Banks, the Company shall notify the Banks of its acceptance of such
terms and conditions no later than the Anniversary Date, and such later date will become the Termination Date hereunder and this Agreement shall otherwise be amended in the manner described in the Banks’ notice proposing the extension of this
Agreement upon the Agent’s receipt of (i) an amendment to this Agreement signed by the Company and all of the Banks, (ii) resolutions of the Company’s Board of Directors authorizing such extension and (iii) an opinion of counsel to the
Company equivalent in form and substance to the form of opinion attached hereto as Exhibit E and otherwise acceptable to the Banks. 
  
 (c) The respective Revolving Credit Commitment which each Bank by its acceptance hereof severally agrees to make available to the Company is set forth
opposite such Bank’s name on Schedule 1 attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. Each Bank’s Revolving Credit Commitment shall be reduced
from time to time by the aggregate outstanding principal amount of all Bid Loans made by such Bank, and shall be increased (but in no event above the amount set forth on Schedule 1 attached hereto for each Bank) by the aggregate principal amount of
each principal repayment of such Bid Loans made from time to time. 
  
 (d) Loans under the Revolving Credit may be Eurodollar Loans or Domestic Rate Loans. All Loans under the Revolving Credit shall be made from each Bank in proportion to its respective Revolving Credit Commitment, as adjusted from time to
time to reflect outstanding Bid Loans. Each Domestic Rate Loan shall be in an amount not less than $3,000,000 or such greater amount which is an integral multiple of $500,000 and each Eurodollar Loan shall be in an amount not less than $3,000,000 or
such greater amount which is an integral multiple of $1,000,000. Without the Agent’s consent, there shall not be more than ten (10) Eurodollar Loans outstanding hereunder at any one time. 
  
 Section 1.2. The Notes. All Revolving Credit Loans made by each Bank
hereunder shall be evidenced by a single Secured Revolving Credit Note of the Company substantially in the form of Exhibit A hereto (individually, a “Revolving Note” and together, the “Revolving Notes”) payable to
the order of each Bank. The aggregate principal amount of indebtedness evidenced by such Revolving Note at any time shall be, and the same is to be determined by, the aggregate 
  

 -2- 

 principal amount of all Revolving Credit Loans and Bid Loans made by such Bank to the Company pursuant hereto on or prior
to the date of determination less the aggregate amount of principal repayments on such Revolving Credit Loans and Bid Loans received by or on behalf of such Bank on or prior to such date of determination. Each Revolving Note shall be dated as of the
execution date of this Agreement, and shall be expressed to mature on the Termination Date and to bear interest as provided in Section 1.3 hereof. Each Bank shall record on its books or records or on a schedule to its Revolving Note the amount of
each Revolving Credit Loan and Bid Loan made by it hereunder, whether each Revolving Credit Loan is a Domestic Rate Loan or Eurodollar Loan, and, with respect to Eurodollar Loans and Bid Loans, the interest rate and Interest Period applicable
thereto, and all payments of principal and interest and the principal balance from time to time outstanding, provided that prior to any transfer of such Revolving Note all such amounts shall be recorded on a schedule to such Revolving Note. The
record thereof, whether shown on such books or records or on the schedule to the Revolving Note, shall be prima facie evidence as to all such amounts; provided, however, that the failure of any Bank to record or any mistake in recording any
of the foregoing shall not limit or otherwise affect the obligation of the Company to repay all Revolving Credit Loans and Bid Loans made hereunder together with accrued interest thereon. Upon the request of any Bank, the Company will furnish a new
Revolving Note to such Bank to replace its outstanding Revolving Note and at such time the first notation appearing on the schedule on the reverse side of, or attached to, such Revolving Note shall set forth the aggregate unpaid principal amount of
Revolving Credit Loans and Bid Loans then outstanding from such Bank, and, with respect to each Fixed Rate Loan, the interest rate and Interest Period applicable thereto. Such Bank will cancel the outstanding Revolving Note upon receipt of the new
Revolving Note. 
  
 Section 1.3. Interest Rates. (a)
Domestic Rate Loans. Each Domestic Rate Loan shall bear interest (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is made until maturity (whether by
acceleration, upon prepayment or otherwise) at a rate per annum equal to the lesser of (i) the Highest Lawful Rate and (ii) the sum of the Applicable Margin plus the Domestic Rate from time to time in effect, payable quarterly in arrears on the last
day of each calendar quarter, commencing on the first of such dates occurring after the date hereof and at maturity (whether by acceleration, upon prepayment or otherwise). 
  
 (b) Eurodollar Loans. Each Eurodollar Loan under the Revolving Credit shall bear interest (computed on the basis of a
year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is made until the last day of the Interest Period applicable thereto or, if earlier, until maturity (whether by acceleration or otherwise) at a
rate per annum equal to the lesser of (i) the Highest Lawful Rate and (ii) the sum of the Applicable Margin plus the Adjusted Eurodollar Rate, payable on the last day of each Interest Period applicable thereto and at maturity (whether by
acceleration or otherwise) and, with respect to Eurodollar Loans with an Interest Period in excess of three months, on the date occurring every three months from the first day of the Interest Period applicable thereto. 
  
 (c) Default Rate. During the existence of an Event of Default all
Loans and Reimbursement Obligations shall bear interest (computed on the basis of a year of 360 days and actual days elapsed) from the date of such Event of Default until paid in full, payable on demand, at a rate per annum equal to the sum of 2.5%
plus the Domestic Rate from time to time in effect plus the Applicable Margin. 
  

 -3- 

 Section 1.4. Conversion and Continuation of Revolving Credit Loans. (a) Provided that no Event of
Default or Potential Default has occurred and is continuing, the Company shall have the right, subject to the other terms and conditions of this Agreement, to continue in whole or in part (but, if in part, in the minimum amount specified for
Eurodollar Loans in Section 1.1 hereof) any Eurodollar Loan made under the Revolving Credit from any current Interest Period into a subsequent Interest Period, provided that the Company shall give the Agent notice of the continuation of any
such Loan as provided in Section 1.7 hereof. 
  
 (b) In the event
that the Company fails to give notice pursuant to Section 1.7 hereof of the continuation of any Eurodollar Loan under the Revolving Credit or fails to specify the Interest Period applicable thereto, or an Event of Default or Potential Default has
occurred and is continuing at the time any such Loan is to be continued hereunder, then such Loan shall be automatically converted as (and the Company shall be deemed to have given notice requesting) a Domestic Rate Loan, subject to Sections 1.7(b),
8.2 and 8.3 hereof, unless paid in full on the last day of the then applicable Interest Period. 
  
 (c) Provided that no Event of Default or Potential Default has occurred and is continuing, the Company shall have the right, subject to the terms and
conditions of this Agreement, to convert Revolving Credit Loans of one type (in whole or in part) into Revolving Credit Loans of another type from time to time provided that: (i) the Company shall give the Agent notice of each such conversion as
provided in Section 1.7 hereof, (ii) the principal amount of any Revolving Credit Loan converted hereunder shall be in an amount not less than the minimum amount specified for the type of Revolving Credit Loan in Section 1.1 hereof, (iii) after
giving effect to any such conversion in part, the principal amount of any Eurodollar Loan under the Revolving Credit then outstanding shall not be less than the minimum amount specified for the type of Loan in Section 1.1 hereof, (iv) any conversion
of a Revolving Credit Loan hereunder shall only be made on a Business Day, and (v) any Eurodollar Loan may be converted only on the last day of the Interest Period then applicable thereto. 
  
 Section 1.5. Letters of Credit. (a) Subject to all the terms and
conditions hereof, satisfaction of all conditions precedent to borrowing under this Agreement and so long as no Potential Default or Event of Default is in existence, at the Company’s request the L/C Issuers may in their discretion issue
letters of credit (an “L/C” and collectively the “L/Cs”) for the account of the Company subject to availability under the Revolving Credit, and the Banks hereby agree to participate therein as more fully described
in Section 1.8 hereof. Each L/C shall be issued pursuant to an Application for Letter of Credit (the “L/C Agreement”) in the form of Exhibit B hereto. The L/Cs shall consist of standby and commercial letters of credit. Each L/C
shall have an expiry date not more than one year from the date of issuance thereof (but in no event later than the Termination Date). The amount available to be drawn under each L/C issued pursuant hereto shall be deducted from the credit otherwise
available under the Revolving Credit. In consideration of the issuance of L/Cs the Company agrees to pay each L/C Issuer a fee (the “L/C Fee”) in the amount per annum equal to the Applicable Margin for Eurodollar Loans (computed on
the basis of a 360 day year and actual days elapsed) of the face amount of each 
  

 -4- 

 L/C issued by such L/C Issuer hereunder. In addition the Company shall pay each L/C Issuer for its own account a fronting
fee (the “L/C Fronting Fee”) in an amount equal to one-eighth of one percent (0.125%) of the stated amount of each L/C issued by such L/C Issuer hereunder. The Company shall also pay each L/C Issuer such drawing, negotiation,
amendment and other administrative fees in connection with each L/C as may be generally established by such L/C Issuer from time to time for letters of credit issued by it (the “L/C Administrative Fees”). All L/C Fees shall be
payable quarterly in arrears on the last day of each calendar quarter and on the Termination Date, and all L/C Administrative Fees and L/C Fronting Fees shall be payable on the date of issuance of each L/C hereunder and on the date of each
extension, if any, of the expiry date of each L/C. 
  
 (b) The
Banks shall, ratably in accordance with their respective Commitment Percentages, indemnify each L/C Issuer (to the extent not reimbursed by the Company) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand,
action, loss or liability (except such as result from such L/C Issuer’s gross negligence or willful misconduct) that such L/C Issuer may suffer or incur in connection with any L/C issued by it. The obligations of the Banks under this Section
1.5(b) and all other parts of this Section 1.5 shall survive termination of this Agreement and of all L/C Agreements, and all drafts or other documents presented in connection with drawings thereunder. 
  
 (c) Each L/C Issuer shall give prompt telecopy notice to the Agent of each
issuance of, or amendment to, an L/C by it specifying the effective date of the L/C or amendment, the amount, the beneficiary, and the expiration date of the L/C, in each case as established originally or through the relevant amendment, as
applicable. 
  
 (d) The Agent shall give prompt telecopy notice to
each Bank of each issuance of, or amendment to, an L/C of which it has received notice pursuant to subsection (c) above specifying the effective date of the L/C or amendment, the amount, the beneficiary, and the expiration date of the L/C, in each
case as established originally or through the relevant amendment, as applicable, each Bank’s pro rata participation in such L/C and whether the Agent has classified the L/C as a commercial, performance, or financial letter of credit for
regulatory reporting purposes. 
  
 Section 1.6. Reimbursement
Obligation. The Company is obligated, and hereby unconditionally agrees, to pay in immediately available funds to the Agent for the account of the L/C Issuers and the Banks who are participating in L/Cs pursuant to Section 1.8 hereof the face
amount of each draft drawn and presented under an L/C issued by an L/C Issuer hereunder not later than 11:00 a.m. (Chicago Time) on the date such draft is presented for payment to such L/C Issuer (the obligation of the Company under this Section 1.7
with respect to any L/C is a “Reimbursement Obligation”). If at any time the Company fails to pay any Reimbursement Obligation when due, the Company shall be deemed to have automatically requested a Domestic Rate Loan from the Banks
hereunder, as of the maturity date of such Reimbursement Obligation, the proceeds of which Loan shall be used to repay such Reimbursement Obligation. Such Loan shall only be made if no Potential Default or Event of Default shall exist and upon
approval by all of the Banks, and shall be subject to availability under the Revolving Credit. If such Loan is not made by the Banks for any reason, the unpaid amount of such Reimbursement Obligation shall be due and payable to the Agent for the pro
rata benefit of the Banks upon demand and shall bear interest at the rate of interest specified in Section 1.3(c) hereof. 
  

 -5- 

 Section 1.7. Manner of Borrowing and Rate Selection. (a) The Company shall give telephonic, telex
or telecopy notice to the Agent (which notice, if telephonic, shall be promptly confirmed in writing) no later than (i) 11:00 a.m. (Chicago time) on the date the Banks are requested to make each Domestic Rate Loan, and (ii) 11:00 a.m. (Chicago time)
on the date at least three (3) Business Days prior to the date of (A) each Eurodollar Loan which the Banks are requested to make or continue, and (B) the conversion of any Domestic Rate Loan into a Eurodollar Loan. Each such notice shall specify the
date of the Revolving Credit Loan requested (which shall be a Business Day), the amount of such Revolving Credit Loan, whether the Revolving Credit Loan is to be made available by means of a Domestic Rate Loan or Eurodollar Loan and, with respect to
Eurodollar Loans, the Interest Period applicable thereto; provided, that in no event shall the principal amount of any requested Revolving Credit Loan plus the aggregate principal or face amount, as appropriate, of all Revolving Credit Loans,
L/Cs, and unpaid Reimbursement Obligations outstanding hereunder exceed the amounts specified in Section 1.1 hereof. The Company agrees that the Agent may rely on any such telephonic, telex or telecopy notice given by any person who the Agent
believes is authorized to give such notice without the necessity of independent investigation and in the event any notice by such means conflicts with the written confirmation, such notice shall govern if any Bank has acted in reliance thereon. The
Agent shall, no later than 12:30 p.m. (Chicago time) on the day any such notice is received by it, give telephonic, telex or telecopy (if telephonic, to be confirmed in writing within one Business Day) notice of the receipt of notice from the
Company hereunder to each of the Banks, and, if such notice requests the Banks to make, continue or convert any Eurodollar Loans, the Agent shall confirm to the Company by telephonic, telex or telecopy means, which confirmation shall be conclusive
and binding on the Company in the absence of manifest error, the Interest Period and the interest rate applicable thereto promptly after such rate is determined by the Agent. 
  
 (b) Subject to the provisions of Section 6 hereof, the proceeds of each Revolving Credit Loan shall be made available to the
Company at the principal office of the Agent in Chicago, Illinois, in immediately available funds, on the date such Revolving Credit Loan is requested to be made, except to the extent such Revolving Credit Loan represents (i) the conversion of an
existing Revolving Credit Loan or (ii) a refinancing of a Reimbursement Obligation, in which case each Bank shall record such conversion on the schedule to its Revolving Note, or in lieu thereof, on its books and records, and shall effect such
conversion or refinancing, as the case may be, on behalf of the Company in accordance with the provisions of Section 1.4(a) hereof and 1.8 hereof, respectively. Not later than 2:00 p.m. Chicago time, on the date specified for any Revolving Credit
Loan to be made hereunder, each Bank shall make its portion of such Revolving Credit Loan available to the Company in immediately available funds at the principal office of the Agent, except (i) as otherwise provided above with respect to converting
or continuing any outstanding Revolving Credit Loans and (ii) to the extent such Revolving Credit Loan represents a refinancing of any outstanding Reimbursement Obligations. 
  
 (c) Unless the Agent shall have been notified by a Bank prior to 1:00 p.m. (Chicago time) on the date a Revolving Credit
Loan is to be made by such Bank (which notice shall be effective upon receipt) that such Bank does not intend to make the proceeds of such Revolving 
  

 -6- 

 Credit Loan available to the Agent, the Agent may assume that such Bank has made such proceeds available to the Agent on
such date and the Agent may in reliance upon such assumption (but shall not be required to) make available to the Company a corresponding amount. If such corresponding amount is not in fact made available to the Agent by such Bank, the Agent shall
be entitled to receive such amount on demand from such Bank (or, if such Bank fails to pay such amount forthwith upon such demand, to recover such amount, together with interest thereon at the rate otherwise applicable thereto under Section 1.3
hereof, from the Company) together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Company and ending on the date the Agent recovers such amount, at a rate per annum equal
to the effective rate charged to the Agent for overnight Federal funds transactions with member banks of the Federal Reserve System for each day, as determined by the Agent (or, in the case of a day which is not a Business Day, then for the
preceding Business Day) (the “Fed Funds Rate”). Nothing in this Section 1.7(c) shall be deemed to permit any Bank to breach its obligations to make Loans under the Revolving Credit or to limit the Company’s claims against any
Bank for such breach. 
  
 Section 1.8. Participation in
L/Cs. Each of the Banks will acquire a risk participation for its own account, without recourse to or representation or warranty from each L/C Issuer, in each L/C upon the issuance thereof ratably in accordance with its Commitment Percentage. In
the event any Reimbursement Obligation is not immediately paid by the Company pursuant to Section 1.6 hereof, each Bank will pay to the Agent for the account of the relevant L/C Issuer funds in an amount equal to such Bank’s Commitment
Percentage of the unpaid amount of such Reimbursement Obligation. At the election of all of the Banks, such funding by the Banks of the unpaid Reimbursement Obligations shall be treated as additional Revolving Credit Loans to the Company hereunder
rather than a purchase of participations by the Banks in the related L/Cs held by the relevant L/C Issuer. The availability of funds to the Company under the Revolving Credit shall be reduced in an amount equal to any such L/C. The obligation of the
Banks to the L/C Issuers under this Section 1.8 shall be absolute and unconditional and shall not be affected or impaired by any Event of Default or Potential Default which may then be continuing hereunder. Each L/C Issuer shall notify the Agent and
thereupon the Agent shall notify each Bank by telephone of its Commitment Percentage of such unpaid Reimbursement Obligation. If such notice has been given to each Bank by 12:00 Noon, Chicago time, each Bank agrees to pay the Agent in immediately
available and freely transferable funds on the same Business Day. If such notice is received after 12:00 noon, Chicago time, each Bank agrees to pay the Agent in immediately available and freely transferable funds no later than the following
Business Day. Funds shall be so made available at the account designated by the Agent in such notice to the Banks. Upon the election by the Banks to treat such funding as additional Revolving Credit Loans hereunder and payment by each Bank, such
Loans shall bear interest in accordance with Section 1.3(a) hereof. Each L/C Issuer shall share with each Bank on a pro rata basis relative to its Commitment Percentage a portion of each payment of a Reimbursement Obligation (whether of principal or
interest) and any L/C Fee (but not any L/C Administrative Fee or L/C Fronting Fee) payable by the Company. Any such amount shall be promptly remitted to the Banks when and as received by the Agent from the Company. 
  
 Section 1.9. Capital Adequacy. If, after the date hereof, any Bank or
the Agent shall have determined in good faith that the adoption of any applicable law, rule or regulation 
  

 -7- 

 regarding capital adequacy, or any change therein (including, without limitation, any revision in the Final Risk-Based
Capital Guidelines of the Board of Governors of the Federal Reserve System (12 CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the Office of the Comptroller of the Currency (12 CFR Part 3, Appendix A), or in any other applicable capital
rules heretofore adopted and issued by any governmental authority), or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Bank (or its Lending Office) with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Bank’s capital, or on the capital of any corporation controlling such Bank, in each case as a consequence of its obligations hereunder to a level below that which such Bank would have achieved but for such
adoption, change or compliance (taking into consideration such Bank’s policies with respect to capital adequacy) by an amount reasonably deemed by such Bank to be material, then from time to time, within fifteen (15) days after demand by such
Bank (with a copy to the Agent), the Company shall pay to such Bank such additional amount or amounts as will compensate such Bank for such reduction. 
  
 Section 1.10. The Bond Letter of Credit. Subject to all the terms and conditions hereof, Harris has issued a standby letter of credit (as amended
(including any amendments increasing the amount thereof) and reinstated from time to time, the “Bond L/C”) in an original stated amount of up to $25,239,727.00 (the “Bond L/C Commitment”) for the account of the
Company. The Bond L/C Commitment shall be separate and apart from, and in addition to, the Revolving Credit Commitments. The Bond L/C was issued pursuant to a Reimbursement Agreement dated as of June 15, 1999 (as amended, supplemented, restated and
otherwise modified from time to time, the “Reimbursement Agreement”) for the purpose of supporting the Company’s obligations relating to the Bonds. The Bond L/C shall have an expiry date not later than the Termination Date,
subject to extension as provided in the Reimbursement Agreement. The Company shall pay Harris for its own account an annual issuance fee (the “Bond L/C Issuance Fee”) in an amount equal to one-eighth of one percent (0.125%)
of the stated amount of the Bond L/C, payable on the date the Bond L/C is issued by Harris and on each annual anniversary thereof. 
  
 Section 1.11. Bond Reimbursement Obligation. The Company will pay in immediately available funds to Harris the amount of each demand for payment
made under the Bond L/C immediately upon payment by Harris of each amount so demanded and on the date of each such payment by Harris (the obligation of the Company under this Section 1.11 is hereinafter referred to as a “Bond Reimbursement
Obligation”). 
  
 Section 1.12. Participation in the
Bond L/C. Each of the Banks will acquire a risk participation for its own account, without recourse to or representation or warranty from Harris, in the Bond L/C upon the issuance thereof ratably in accordance with its Commitment Percentage. In
the event any Bond Reimbursement Obligation is not immediately paid by the Company pursuant to Section 1.11 hereof, each Bank will pay to Harris funds in an amount equal to such Bank’s Commitment Percentage of the unpaid amount of such Bond
Reimbursement Obligation. The obligation of the Banks to Harris under this Section 1.12 shall be absolute and unconditional and shall not be affected or impaired by any Event of Default or Potential Default 
  

 -8- 

 which may then be continuing hereunder. Harris shall notify each Bank by telephone of its Commitment Percentage of such
unpaid Bond Reimbursement Obligation. If such notice has been given to each Bank by 1:00 p.m., Chicago time, each Bank agrees to pay Harris in immediately available and freely transferable funds on the same Business Day. If such notice is received
after 1:00 p.m., Chicago time, each Bank agrees to pay Harris in immediately available and freely transferable funds no later than the following Business Day. Funds shall be so made available at the account designated by Harris in such notice to the
Banks. Harris shall share with each Bank on a pro rata basis relative to its Commitment Percentage a portion of each payment of a Bond Reimbursement Obligation (whether of principal or interest) and any Bond L/C Fee (but not the Bond L/C Issuance
Fee or any Bond L/C Administration Fee) payable by the Company. Any such amount shall be promptly remitted to the Banks when and as received by Harris from the Company. 
  
 Section 1.13. Reductions and Reinstatements. The Company and the Banks recognize, acknowledge and agree that (i) the
Bond L/C provides for automatic reductions and reinstatements as set forth in the provisions of such Bond L/C, and (ii) the Bond L/C provides for the beneficiary thereof to reduce from time to time the amounts available to be drawn thereon. Each
Bank acknowledges that, because the interest component of the Bond L/C may be reinstated at a time when the Company has not reimbursed Harris in full for an interest drawing under the Bond L/C, the total may exceed the Bond L/C Commitment pursuant
to Section 1.10 hereof and each Bank agrees to pay Harris its pro rata share of any drawing under the Bond L/C notwithstanding that any such payment may result in the aggregate principal amount owing such Bank hereunder exceeding the Bond L/C
Commitment of such Bank. 
  
 Section 1.14. Liability of
Harris. None of the Harris-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under or in connection with the Reimbursement Agreement or any Bond Document (except for its own gross negligence or
willful misconduct), or (ii) be responsible in any manner to any of the Banks for any recital, statement, representation or warranty made by the Company or any Affiliate of the Company, or any officer thereof, contained in the Reimbursement
Agreement or any Bond Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Harris under or in connection with, the Reimbursement Agreement or any Bond Document, or for the validity,
effectiveness, genuineness, enforceability or sufficiency of the Reimbursement Agreement or any Bond Document, or for any failure of the Company or any other party to the Reimbursement Agreement or any Bond Document to perform its obligations
thereunder (other than for the gross negligence or willful misconduct of Harris). No Harris-Related Person shall be under any obligation to any Bank to ascertain or to inquire as to the observance or performance of any of the agreements contained
in, or conditions of, the Reimbursement Agreement or any Bond Document, or to inspect the properties, books or records of the Company or any of its Affiliates. 
  

Section 1.15. Reliance by Harris. Harris shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution,
notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or
Persons, and upon advice and statements of legal counsel (including counsel to the 
  

 -9- 

 Company). Harris shall be fully justified in failing or refusing to take any action under the Reimbursement Agreement or
any Bond Document which would otherwise require the consent of the Required Banks or all of the Banks unless it shall first receive such advice or concurrence of the Required Banks (or, if required by this Agreement, all Banks) as it deems
appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Banks against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Harris shall in all
cases be fully protected in acting, or in refraining from acting, under the Reimbursement Agreement or any Bond Document in accordance with a request or consent of the Required Banks (or, if required by this Agreement, all Banks) and such request
and any action taken or failure to act pursuant thereto shall be binding upon all of the Banks. 
  
 Section 1.16. Notice of Default. Harris shall not be deemed to have knowledge or notice of the occurrence of any Potential Default or Event of
Default under Section 8.1(1) hereof, unless Harris shall have received written notice from the Company or any other party to a Bond Document. Harris shall take such action with respect to such Potential Default or Event of Default under the
Reimbursement Agreement and the Bond Documents as shall be required pursuant to Section 8 hereof; provided that unless and until Harris shall have received direction under Section 8, Harris may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Potential Default or Event of Default as it shall deem advisable and in the best interest of the Banks, except any action resulting in the acceleration or redemption of any Bonds.

  
 Section 1.17. Indemnification. The Banks shall
indemnify upon demand the Harris-Related Persons (to the extent not reimbursed by or on behalf of the Company and without limiting the obligation of the Company to do so), ratably according to such Bank’s Commitment Percentage from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind whatsoever which may at any time (including at any time following the termination of the Bond L/C) be imposed
on, incurred by or asserted against any such Person and which are in any way relating to or arising out of this Agreement or any document contemplated by or referred to herein or the transactions contemplated hereby or thereby or any action taken or
omitted by any such Person under or in connection with any of the foregoing; provided that no Bank shall be liable for the payment to the Harris-Related Persons of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely from such Person’s gross negligence or willful misconduct or for the fees and expenses of counsel in connection with the preparation, execution, delivery,
administration, or modification of the Reimbursement Agreement or any Bond Document or any amendments thereto. The obligation of the Banks in this Section shall survive the payment of all amounts owing by the Company hereunder. 
  
 Section 1.18. Documents and Reports. Harris agrees to deliver to the
Banks promptly upon receipt thereof copies of all documents and reports delivered to Harris pursuant to the Reimbursement Agreement or any Bond Document. 
  
 Section 1.19. Amendments. Harris may enter into any amendment or modification of, or may waive compliance with the terms of any Bond Document
(other than an Indenture) without 
  

 -10- 

 the consent of any Bank; provided (a) that without the consent of the Required Banks, Harris shall not execute any
instrument agreeing to any amendment or modification of, or waiver of compliance with the Reimbursement Agreement or any Bond Document, which would waive any “Event of Default” arising under the Reimbursement Agreement or any Bond
Document, and (b) without the consent of all of the Banks, Harris shall not execute any instrument agreeing to any amendment or modification of, or waiver of compliance with the Reimbursement Agreement or any Bond Document, (i) which would (A)
reduce the principal of, or interest on, any Bond Reimbursement Obligation, (B) postpone the due date for any payment of principal of, or interest on, any Bond Reimbursement Obligation, (C) extend the stated expiration date of the Bond L/C, (D)
increase in any material manner (in the reasonable opinion of Harris) the obligations of the Banks, or (E) release or otherwise adversely affect the interests of the Banks in any collateral granted under the Reimbursement Agreement or any Bond
Document, or (ii) after the occurrence of a Potential Default or Event of Default. 
  
 SECTION 2. THE COMPETITIVE BID FACILITY. 
  
 Section 2.1. Amount and Term. The Company may from time to time before the Termination Date request Competitive Bids from the Banks and the Banks
may make, at their sole discretion, Bid Loans to the Company on the terms and conditions set forth in this Agreement. Notwithstanding any provision to the contrary contained in this Agreement, (a) the aggregate principal amount of all Bid Loans
outstanding hereunder at any time may not exceed 50% of the Revolving Credit Commitments, (b) no Bank may make Bid Loans in an aggregate principal amount in excess of the maximum amount of such Bank’s Revolving Credit Commitment set forth in
Section 1.1(b) of this Agreement, and (c) the aggregate principal amount of all Bid Loans outstanding hereunder at any time together with the aggregate principal amount of all Revolving Credit Loans outstanding under the Revolving Credit shall not
exceed the Banks’ Revolving Credit Commitments from time to time in effect. The Company may request Competitive Bids and the Banks may, in their discretion, make such Competitive Bids on the terms and conditions set forth in this Section 2.

  
 Section 2.2. Competitive Bid Requests. In order to
request Competitive Bids, the Company shall give telephonic notice to be received by the Agent no later than 11:00 A.M., Chicago time, one Business Day before the date, which must be a Business Day, on which a proposed Bid Loan is to be made (the
“Borrowing Date”), followed on the same day by a duly completed Competitive Bid Request Confirmation in the form of Exhibit L hereto to be received by the Agent not later than 11:30 A.M., Chicago time. Competitive Bid Request
Confirmations that do not conform substantially to the format of Exhibit L may be rejected and the Agent shall give telephonic notice to the Company of such rejection promptly after it determines (which determination shall be conclusive) that a
Competitive Bid Request Confirmation does not substantially conform to the format of Exhibit L. Competitive Bid Requests shall in each case refer to this Agreement and specify (x) the proposed Borrowing Date (which shall be a Business Day), (y) the
aggregate principal amount thereof (which shall not be less than $3,000,000 and shall be an integral multiple of $1,000,000), and (z) up to 3 Interest Periods with respect to the entire amount specified in such Competitive Bid Request (which must be
of no less than 30 and no more than 180 days duration and may not end after the Termination Date). Upon receipt by the Agent of a Competitive Bid Request Confirmation which conforms substantially to the 
  

 -11- 

 format of Exhibit L attached hereto, the Agent shall invite, by telephone promptly confirmed in writing in the form of
Exhibit M attached hereto, the Banks to bid, on the terms and conditions of this Agreement, to make Bid Loans pursuant to the Competitive Bid Request. 
  
 Section 2.3. Submission of Competitive Bids. Each Bank may, in its sole discretion, make one or more Competitive Bids to the Company responsive to
the Competitive Bid Request. Each Competitive Bid by a Bank must be received by the Agent by telephone not later than 8:45 A.M., Chicago time, on the Borrowing Date, promptly confirmed in writing by a duly completed Confirmation of Competitive Bid
substantially in the form of Exhibit N attached hereto to be received by the Agent no later than 9:00 A.M. on the same day; provided, however, that any Competitive Bid made by Harris must be made by telephone to the Company no later than 8:30
A.M., Chicago time, and confirmed by telecopier to the Company no later than 8:45 A.M., Chicago time, on the Borrowing Date. Competitive Bids which do not conform precisely to the terms of this Section 2.3 may be rejected by the Agent and the Agent
shall notify the Bank submitting such Competitive Bid of such rejection by telephone as soon as practicable after determining that the Competitive Bid does not conform precisely to the terms of this Section 2.3. Each Competitive Bid shall refer to
this Agreement and specify (x) the maximum principal amount (which shall not be less than $3,000,000 and shall be an integral multiple of $1,000,000) of the Bid Loan that the Bank is willing to make to the Company (y) the Yield (which shall be
computed on the basis of a 360-day year and actual days elapsed and for a period equal to the Interest Period applicable thereto) at which the Bank is prepared to make the Bid Loan and (z) the Interest Period applicable thereto. The Agent shall
reject any Competitive Bid if such Competitive Bid (i) does not specify all of the information specified in the immediately preceding sentence, (ii) contains any qualifying, conditional, or similar language, (iii) proposes terms other than or in
addition to those set forth in the Competitive Bid Request to which it responds, or (iv) is received by the Agent later than 8:45 A.M. (Chicago time). Any Competitive Bid submitted by a Bank pursuant to this Section 2.3 shall be irrevocable and
shall be promptly confirmed in writing in the form of Exhibit N; provided that in all events the telephone Competitive Bid received by the Agent shall be binding on the relevant Bank and shall not be altered, modified, or in any other manner
affected by any inconsistent terms contained in, or terms missing from, the Bank’s Confirmation of Competitive Bid. 
  
 Section 2.4. Notice of Bids. The Agent shall give telephonic notice to the Company no later than 9:15 A.M., Chicago time, on the proposed Borrowing
Date, of the number of Competitive Bids made, the Yield with respect to each proposed Bid Loan, the Interest Period applicable thereto and the maximum principal amount of each Bid Loan in respect of which a Competitive Bid was made and the identity
of the Bank making each bid. The Agent shall send a summary of all Competitive Bids received by the Agent to the Company as soon as practicable after receipt of a Competitive Bid from each Bank that has made a Competitive Bid. 
  
 Section 2.5. Acceptance or Rejection of Bids. The Company may in its
sole and absolute discretion, subject only to the provisions of this Section, irrevocably accept or reject, in whole or in part, any Competitive Bid referred to in Section 2.4 above. No later than 9:45 A.M., Chicago time, on the proposed Borrowing
Date, the Company shall give telephonic notice to the Agent of whether and to what extent it has decided to accept or reject any or all the Competitive Bids referred to in Section 2.4 above, which notice shall be promptly confirmed in a writing to

  

 -12- 

 be received by the Agent on the proposed Borrowing Date; provided, however, that (x) no bid shall be accepted for
a Bid Loan in a minimum principal amount of less than $3,000,000, (y) the Company shall accept bids solely on the basis of ascending Yields for each Interest Period, (z) if the Company declines to borrow, or it is restricted by other conditions
hereof from borrowing, the maximum principal amount of Bid Loans in respect of which bids at such Yield have been made, then the Company shall accept a pro rata portion of each bid made at the same Yield, based as nearly as possible on the ratio of
the maximum aggregate principal amounts of Bid Loans for which each such bid was made (provided that if the available principal amount of Bid Loans to be so allocated is not sufficient to enable Bid Loans to be so allocated to each such Bank in
integral multiples of $1,000,000, the Company shall select which Banks will be allocated such Bid Loans and will round allocations up or down to the next higher or lower multiple of $1,000,000 as it shall deem appropriate but in no event shall any
Bid Loan be allocated in a principal amount of less than $3,000,000), and (w) the aggregate principal amount of all Competitive Bids accepted by the Company shall not exceed the amount contained in the related Confirmation of Competitive Bid
Request. A notice given by the Company pursuant to this Section 2.5 shall be irrevocable and shall not be altered, modified, or in any other manner affected by any inconsistent terms contained in, or terms missing from, any written confirmation of
such notice. 
  
 Section 2.6. Notice of Acceptance or Rejection
of Bid. The Agent shall promptly (but in any event no later than 10:30 A.M., Chicago time) give telephonic notice to the Banks whether or not their Competitive Bids have been accepted (and if so, in what amount and at what Yield) on the proposed
Borrowing Date, and each successful bidder will thereupon become bound, subject to Section 7 and the other applicable conditions hereof, to make the Bid Loan in respect of which its bid has been accepted. Each Bank so bound shall notify the Agent
upon making the Bid Loan. As soon as practicable on each Borrowing Date, the Agent shall notify each Bank of the aggregate principal amount of all Bid Loans made pursuant to a Competitive Bid Request on such Borrowing Date, the Interest Period(s)
applicable thereto and the highest and lowest Yields at which such Bid Loans were made for each Interest Period. 
  
 Section 2.7. Restrictions on Bid Loans. A Bid Loan shall not be made if an Event of Default or Potential Default shall have occurred and be
continuing on the date on which such Bid Loan is to be made and the Company may not obtain more than three Bid Loans in any calendar week. 
  
 Section 2.8. Minimum Amount. Each Bid Loan made to the Company on any date shall be in an integral multiple of $1,000,000 and in a minimum
principal amount of $3,000,000. Bid Loans shall be made in the amounts accepted by the Company in accordance with Section 2.5. 
  
 Section 2.9. The Notes. The Bid Loans made by each Bank to the Company shall be evidenced by the Revolving Note of the Company payable to the order
of such Bank as described in Section 1.2. The outstanding principal balance of each Bid Loan, as evidenced by a Note, shall be payable at the end of every Interest Period applicable to such Bid Loan. Each Bid Loan evidenced by each Revolving Note
shall bear interest from the date such Bid Loan is made on the outstanding principal balance thereof as set forth in Section 2.10 below. 
  
  

 -13- 

 Section 2.10. Term of and Interest on Bid Loans. Each Bid Loan shall bear interest during the
Interest Period applicable thereto at a rate per annum equal to the rate of interest offered in the Competitive Bid therefor submitted by the Bank making such Bid Loan and accepted by the Company pursuant to Section 2.5 above. The principal amount
of each Bid Loan, together with all accrued interest thereon, shall be due and payable on the last day of the Interest Period applicable thereto and at maturity (whether by acceleration or otherwise) and, with respect to any Interest Period in
excess of three months, interest on the unpaid principal amount shall be due on the date occurring every three months after the date the relevant Bid Loan was made. If any payment of principal or interest on any Bid Loan is not made when due, such
Bid Loan shall bear interest (computed on the basis of a year of 360 days and actual days elapsed) from the date such payment was due until paid in full, payable on demand, at a rate per annum equal to the sum of 2.5% plus the rate of interest in
effect thereon at the time of such default until the end of the Interest Period then applicable thereto, and, thereafter, at a rate per annum equal to the sum of 2.5 plus the Domestic Rate from time to time in effect. 
  
 Section 2.11. Disbursement of Bid Loans. (a) Subject to the provisions
of Section 6 hereof, the proceeds of each Bid Loan shall be made available to the Company by, at the Company’s option, crediting an account maintained by the Company at Harris Trust and Savings Bank or by wire transfer of such proceeds to such
account as the Company shall designate in writing to the Agent from time to time, in immediately available funds. Not later than 12:00 Noon, Chicago time, on the date specified for any Bid Loan to be made hereunder, each Bank which is bound to make
such Bid Loan pursuant to Section 2.6 hereof shall make its portion of such Bid Loan available to the Company in immediately available funds at the principal office of the Agent in Chicago, Illinois. 
  
 (b) Unless the Agent shall have been notified by a Bank no later than the
time the Agent gives such Bank a notice pursuant to Section 2.6 hereof (which notice shall be effective upon receipt) that such Bank does not intend to make the proceeds of such Bid Loan available to the Agent, the Agent may assume that such Bank
has made such proceeds available to the Agent on such date and the Agent may in reliance upon such assumption (but shall not be required to) make available to the Company a corresponding amount. If such corresponding amount is not in fact made
available to the Agent by such Bank, the Agent shall be entitled to receive such amount on demand from such Bank (or, if such Bank fails to pay such amount forthwith upon such demand, to recover such amount from the Company) together with interest
thereon in respect of each day during the period commencing on the date such amount was made available to the Company and ending on the date the Agent recovers such amount, at a rate per annum equal to the effective rate charged to the Agent for
overnight Federal funds transactions with member banks of the Federal Reserve System for each day, as determined by the Agent (or, in the case of a day which is not a Business Day, then for the preceding Business Day). Nothing in this Section
2.11(b) shall be deemed to permit any Bank to breach its obligations to make Bid Loans hereunder, or to limit the Company’s claims against any Bank for such breach. 
  
 Section 2.12. Reliance on Telephonic Notices; Indemnity. (a) The Company agrees that the Agent may rely on any
telephonic notice referred to in this Section 2 and given by any person the Agent reasonably believes is authorized to give such notice without the necessity of independent investigation, and in the event any such telephonic notice conflicts with
any written 
  

 -14- 

 notice relating thereto, or in the event no such written notice is received by the Agent, such telephonic notice shall
govern if the Agent or any Bank has acted in reasonable reliance thereon. The Agent’s books and records shall be prima facie evidence of all of the matters set forth in Sections 2.2, 2.3, 2.4, 2.5 and 2.6 hereof. 
  
 (b) The Company hereby agrees to indemnify and hold the Agent harmless from
and against any and all claims, damages, losses, liabilities and expenses, including court costs and legal expenses, paid or incurred by the Agent in connection with any action the Agent may take, or fail to take, in reasonable reliance upon and in
accordance with any telephonic notice received by the Agent as described in this Section 2. 
  
 (c) The Banks hereby agree to indemnify and hold the Agent harmless from and against any and all claims, damages, losses, liabilities and expenses, including court costs and legal expenses, paid or incurred by the
Agent in connection with any action the Agent may take, or fail to take, in reasonable reliance upon and in accordance with any telephonic notice received by the Agent as described in this Section 2, to the extent the Agent is not promptly
reimbursed therefor by the Company. 
  
 Section 2.13.
Telephonic Notice. Each Bank’s telephonic notice to the Agent of its Competitive Bid pursuant to Section 2.3, and the Company’s telephonic acceptance of any offer contained in a Bid pursuant to Section 2.5, shall be irrevocable and
binding on such Bank and the Company, as applicable, and shall not be altered, modified, or in any other manner affected by any inconsistent terms contained in, or missing from, any written confirmation of such telephonic notice. It is understood
and agreed by the parties hereto that the Agent shall be entitled to act, or to fail to act, hereunder in reliance on its records of any telephonic notices provided for herein and that the Agent shall not incur any liability to any Person in so
doing if its records conflict with any written confirmation of a telephone notice or otherwise, provided that any such action taken or omitted by the Agent is taken or omitted reasonably and in good faith. It is further understood and agreed by the
parties hereto that each party hereto shall in good faith endeavor to provide the notices specified herein by the times of day as set forth in this Section 2 but that no party shall incur any liability or other responsibility for any failure to
provide such notices within the specified times; provided, however, that the Agent shall have no obligation to notify the Company of any Competitive Bid received by it later than 8:45 A.M. (Chicago time) on the proposed Borrowing Date, and no
acceptance by the Company of any offer contained in a Competitive Bid shall be effective to bind any Bank to make a Bid Loan, nor shall the Agent be under any obligation to notify any Person of an acceptance, if notice of such acceptance is received
by the Agent later than 9:45 A.M. (Chicago time) on the proposed Borrowing Date. 
  
 SECTION 3. FEES, PREPAYMENTS, TERMINATIONS AND PLACE AND APPLICATION OF
PAYMENTS. 
  
 Section 3.1.
Facility Fee. For the period from the date hereof to and including the Termination Date, the Company shall pay to the Agent for the account of the Banks a facility fee with respect to the Revolving Credit at the rate equal to the Applicable
Margin (computed on the basis of a year of 360 days for the actual number of days elapsed) of the aggregate maximum amount of the Banks’ Revolving Credit Commitments hereunder in effect from time to time and 
  

 -15- 

 whether or not any credit is in use under the Revolving Credit, all such fees to be payable quarterly in arrears on the
last day of each calendar quarter commencing on March 31, 2004, and on the Termination Date, unless the Revolving Credit is terminated in whole on an earlier date, in which event the facility fee for the final period shall be paid on the date of
such earlier termination in whole. 
  
 Section 3.2.
Agent’s Fee. The Company shall pay to and for the sole account of the Agent such fees as may be agreed upon in writing from time to time by the Agent and the Company. Such fees shall be in addition to any fees and charges the Agent may be
entitled to receive under Section 10 hereunder or under the other Loan Documents. 
  
 Section 3.3. Optional Prepayments. (a) Domestic Rate Loans. The Company shall have the privilege of prepaying without premium or penalty and in whole or in part (but if in part, then in a minimum
principal amount of $2,500,000 or such greater amount which is an integral multiple of $100,000) any Domestic Rate Loan at any time upon prior telex or telephonic notice to the Agent on or before 12:00 Noon on the same Business Day. 
  
 (b) Eurodollar Loans. The Company may prepay any borrowing of
Eurodollar Loans without premium or penalty, upon telephonic notice (which shall be promptly confirmed in writing by facsimile communication, telex or telegraph) by no later than 11:00 a.m. (Chicago time) on the third Business Day prior to the date
of such prepayment from the Company to the Agent, such prepayment to be made by the payment of the principal amount to be prepaid and accrued interest thereon and any compensation required by Section 9.4 hereof, if applicable; provided,
however, that any such prepayment shall be in a principal amount of no less than $3,000,000 or such greater amount which is an integral multiple of $1,000,000, and after giving effect to any such prepayment the outstanding principal amount of
any such borrowing of Eurodollar Loans prepaid in part shall not be less than $3,000,000 or such greater amount which is an integral multiple of $1,000,000. 
  
 (c) Any amount prepaid under the Revolving Credit may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed again.

  
 Section 3.4. Mandatory Prepayments - Borrowing Base.
The Company shall not permit the sum of the principal amount of all Loans plus the amount available for drawing under all L/Cs and the aggregate principal amount of all unpaid Reimbursement Obligations at any time outstanding to exceed the lesser of
(i) the sum of the Banks’ Revolving Credit Commitments or (ii) the Borrowing Base as determined on the basis of the most recent Borrowing Base Certificate. In addition to the Company’s obligations to pay any outstanding Reimbursement
Obligations as set forth in Section 1.6 hereof, the Company will make such payments on any outstanding Loans and Reimbursement Obligations (and, if any L/Cs are then outstanding, deposit an amount equal to the aggregate amount available for drawing
under all L/Cs into an interest bearing account with the Agent which shall be held as additional collateral security for such L/Cs, and if any such excess still remains and the Bond L/C is outstanding, deposit an amount equal to the aggregate amount
available for drawing under the Bond L/C into an interest bearing account with the Agent which shall be held as additional collateral security for the Bond L/C) which are necessary to cure any such excess within three Business Days after the
occurrence thereof. Any amount prepaid under the Revolving Credit may, subject to the terms and conditions of this Agreement, be borrowed, prepaid and borrowed again. 
  

 -16- 

 Section 3.5. Place and Application of Payments. All payments of principal and interest made by the
Company in respect of the Notes, Bond Reimbursement Obligations and Reimbursement Obligations and all fees payable by the Company hereunder, shall be made to the Agent at its office at 111 West Monroe Street, Chicago, Illinois 60690 and in
immediately available funds, prior to 12:00 noon Chicago time on the date of such payment. All such payments shall be made without setoff or counterclaim and without reduction for, and free from, any and all present and future levies, imposts,
duties, fees, charges, deductions withholdings, restrictions or conditions of any nature imposed by any government or any political subdivision or taxing authority thereof. Unless the Banks otherwise agree, any payments received after 12:00 noon
Chicago time shall be deemed received on the following Business Day. The Agent shall remit to each Bank its proportionate share of each payment of principal, interest and facility fees, and L/C fees received by the Agent by 3:00 P.M. Chicago time on
the same day of its receipt if received by the Agent by 12:00 noon, Chicago time, and its proportionate share of each such payment received by the Agent after 12:00 noon on the Business Day following its receipt by the Agent. In the event the Agent
does not remit any amount to any Bank when required by the preceding sentence, the Agent shall pay to such Bank interest on such amount until paid at a rate per annum equal to the Fed Funds Rate. The Company hereby authorizes the Agent to
automatically debit its account with Harris for any principal, interest and fees when due under the Notes, any L/C Agreement, the Reimbursement Agreement or this Agreement and to transfer the amount so debited from such account to the Agent for
application as herein provided. All proceeds of Collateral shall be applied in the manner specified in the Security Agreement. 
  
 Section 3.6. Commitment Terminations. The Company shall have the right at any time and from time to time, upon 5 days prior written notice to the
Agent (or such shorter period of time agreed to by the Agent), to terminate the Revolving Credit Commitments without premium or penalty and in whole or in part, any partial termination to be (i) in an amount not less than $5,000,000 and (ii)
allocated ratably among the Banks in proportion to their respective Commitment Percentages, provided that the Revolving Credit Commitments may not be reduced to an amount less than the sum of the aggregate principal amount of Loans,
L/Cs and Reimbursement Obligations then outstanding. The Agent shall give prompt notice to each Bank of any such termination of the Revolving Credit Commitments. Any termination of the Revolving Credit Commitments pursuant to this Section 3.6 may
not be reinstated. 
  
 SECTION 4. DEFINITIONS.

  
 Section 4.1. Certain Terms Defined. The terms
hereinafter set forth when used herein shall have the following meanings: 
  
 “Account Debtor” shall mean the Person who is obligated on a Receivable. 
  
 “Adjusted Eurodollar Rate” means a rate per annum determined pursuant to the following formula: 
  

							
	 Adjusted Eurodollar Rate
	  	=	  	 Eurodollar Rate

	  	 
	 	  	 	  	100% - Reserve Percentage	  	 

  

 -18- 

 “Affiliate” shall mean any person, firm or corporation which, directly or indirectly
controls, or is controlled by, or is under common control with, the Company. As used in this definition the term “controls” (including the terms “controlled by” and “under common control with”)
shall have the meaning given below. Notwithstanding anything herein to the contrary, ConAgra shall not be deemed to be an Affiliate of the Company so long as ConAgra does not own or control more than ten percent of the voting stock of the Company
(measured by voting power rather than number of shares). 
  
 “Agent” is defined in the first paragraph of this Agreement. 
  
 “Agreement” shall mean this Third Amended and Restated Secured Credit Agreement as supplemented, modified, restated and amended from time to time. 
  
 “Alternative Credit Facility” shall mean any irrevocable
letter of credit, surety bond, insurance policy or other similar instruments, other than the Bond L/C, issued by any Person to support the Company’s obligations with respect to the Bonds or the Company’s or a Subsidiary’s obligations
with respect to existing or future industrial revenue bonds permitted by this Agreement. 
  
 “Anniversary Date” has the meaning specified in Section 1.1(b) hereof. 
  
 “Applicable Margin” shall mean, with respect to each type of Loan and the facility fee described in Column
A below, the rate of interest per annum shown in Columns B, C, D, E, F, G, H and I below for the range of Leverage Ratio (expressed as a percentage) specified for each Column: 
  

																									
	 A

	  	B

	 	 	C

	 	 	D

	 	 	E

	 	 	F

	 	 	G

	 	 	H

	 	 	I

	 
	 	  	Level I

	 	 	Level II

	 	 	Level III

	 	 	Level IV

	 	 	Level V

	 	 	Level VI

	 	 	Level VII

	 	 	Level VIII

	 
	 Leverage Ratio
	  	<=35%	 	 	>35%<=	 	 	>40%<=	 	 	>45%<=	 	 	>50%<=	 	 	>55%<=	 	 	>60%<=	 	 	>65%	 
	 	  	 	 	 	40%	 	 	45%	 	 	50%	 	 	55%	 	 	60%	 	 	65%	 	 	 	 
	 Domestic Rate Loans
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	0.25	%	 	0.25	%	 	0.25	%
	 Eurodollar Loans
	  	0.875	%	 	1.125	%	 	1.25	%	 	1.375	%	 	1.625	%	 	1.875	%	 	2.125	%	 	2.375	%
	 Facility Fee
	  	0.25	%	 	0.25	%	 	0.25	%	 	0.375	%	 	0.375	%	 	0.375	%	 	0.375	%	 	0.375	%

  
 Not later than 5 Business Days after
receipt by the Agent of the financial statements called for by Section 7.4 hereof for the applicable fiscal quarter, the Agent shall determine the Leverage Ratio for the applicable period and shall promptly notify the Company and the Banks of such
determination and of any change in the Applicable Margins resulting therefrom. Any such change in the Applicable Margins shall be effective as of the date the Agent so notifies the Company and the Banks with respect to all Loans outstanding on such
date, and such new 
  

 -18- 

 Applicable Margins shall continue in effect until the effective date of the next quarterly redetermination in accordance
with this Section. Each determination of the Leverage Ratio and Applicable Margins by the Agent in accordance with this Section shall be conclusive and binding on the Company and the Banks absent manifest error. From the date hereof until the
Applicable Margins are first adjusted pursuant hereto, the Applicable Margins shall be those set forth in Level III above. 
  
 “Bank” and “Banks” shall have the meanings specified in the first paragraph of this Agreement. 
  
 “Bid Loan” shall mean an advance from a Bank to the Company
pursuant to the biding procedures described in Section 2 hereof. 
  
 “Bonds” shall mean the $25,000,000 aggregate principal amount of the Issuer’s Environmental Facilities Reserve Bonds (Pilgrim’s Pride Corporation Project), Series 1999. 
  
 “Bond Documents” shall mean the Indenture and any other
instrument and documents relating to the issuance and sale of the Bonds. 
  
 “Bond L/C” shall have the meaning specified in Section 1.10 hereof. 
  
 “Bond L/C Administrative Fees” shall mean the fees payable by the Company pursuant to Sections 2.4(b) and (c) of the Reimbursement
Agreement. 
  
 “Bond L/C Commitment” shall
have the meaning specified in Section 1.10 hereof. 
  
 “Bond L/C Exposure” shall mean, as of any date of determination, the sum of (a) the unused amount of the Bond L/C Commitment, if any, (b) the aggregate principal amount of all outstanding Bond Reimbursement Obligations, if
any, and (c) the maximum amount available to be drawn under the Bond L/C (after giving effect to any reductions thereof as provided in the Bond L/C), each determined on such date. 
  
 “Bond L/C Fee” shall mean the fee payable by the Company pursuant to Section 2.4(a) of the Reimbursement
Agreement. 
  
 “Bond Reimbursement Obligation”
shall have the meaning specified in Section 1.11 hereof. 
  
 “Borrowing Base”, as determined on the basis of the information contained in the most recent Borrowing Base Certificate, shall mean an amount equal to: 
  
 (a) 65% of the Value of Eligible Inventory consisting of feed grains, feed and ingredients, plus 

 
 (b) 65% percent of the Value of Eligible Inventory
consisting of live and dressed broiler chickens and commercial eggs, plus 
  

 -19- 

 (c) 65% of the Value of Eligible Inventory consisting of prepared foods, plus 

 
 (d) 100% of the Value of Eligible Inventory consisting of
breeder hens, breeder pullets, commercial hens, commercial pullets and hatching eggs, plus 
  
 (e) 40% of the Value of Eligible Inventory consisting of packaging materials, vaccines, general supplies, and maintenance supplies, minus

  
 (f) the aggregate outstanding amount of all
Grower Payables that are more than 15 days past due, minus 
  
 (g) the Bond L/C Exposure. 
  
 “Borrowing Base Certificate” shall mean the certificate in the form of Exhibit G hereto which is required to be delivered to the Banks in accordance with Section 7.4(d) hereof. 
  
 “Business Day” means any day (other than a Saturday or
Sunday) on which banks are not authorized or required to close in Chicago, Illinois and Dallas, Texas and, if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of a Eurodollar Loan, on which banks
are dealing in U.S. Dollar deposits in the interbank eurodollar market in London, England and Nassau, Bahamas. 
  
 “Capitalized Lease” shall mean, as applied to any Person, any lease of any Property the discounted present value of the rental
obligations of such person as lessee under which, in accordance with generally accepted accounting principles, is required to be capitalized on the balance sheet of such Person. 
  
 “Capitalized Lease Obligation” shall mean, as applied to any Person, the discounted present value of the
rental obligation, as aforesaid, under any Capitalized Lease. 
  
 “Capital Raising Transaction” shall mean any issuance of Capital Stock of the Company to any Person (other than an Affiliate thereof) pursuant to an underwriting or placement agreement, but shall exclude any such issuance
(i) in which the primary purpose thereof is for compensatory or similar reasons, (ii) that is pursuant to a registration on Form S-4 or S-8 or any successor form, (iii) in connection with any reclassification of the Company’s securities that
involves the substitution of one security for another, including, but not limited to, a stock dividend or similar transaction, or (iv) that is in payment of all or a portion of the purchase price of or other consideration payable in connection with
any merger, consolidation, stock exchange, acquisition or transfer of assets or similar business combination. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated) of such Person’s capital stock, whether or not outstanding on the date of this Agreement, including, without limitation, any option, warrant or other right relating to any such capital stock. 
  

 -20- 

 “Cash Equivalent” shall mean any short-term investments that are classified as cash
equivalents on the Company’s consolidated balance sheet in accordance with generally accepted accounting principles, consistently applied. 
  
 “CERCLA” shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
  
 “CERCLIS” shall mean the CERCLA Information System.

  
 “Change in Control” means (a) a sale of all
or substantially all the assets of the Company to any Person or related group of Persons as an entirety or substantially as an entirety in one transaction or series of transactions, (b) the merger or consolidation of the Company with or into another
corporation or the merger of another corporation into the Company with the effect that immediately after such transaction the stockholders of the Company immediately prior to such transaction hold less than 51% of the total voting power generally
entitled to vote in the election of directors, managers or trustees of the Person surviving such merger or consolidation, (c) the Pilgrim Family shall cease to “own” more than 51% of the total voting power generally entitled to vote in the
election of directors, managers or trustees of the Company, (d) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose
election by such Board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Company then in office, or (e) the stockholders of the Company shall approve any plan for the liquidation or
dissolution of the Company. For purposes herein, the Pilgrim Family shall be deemed to “own” the voting power generally entitled to vote in the election of directors, managers or trustees of the Company if the Pilgrim Family either
directly or indirectly legally or beneficially own such voting power. 
  
 “Change in Law” shall have the meaning specified in Section 9.3 hereof. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto. 
  
 “Collateral” shall mean the collateral security provided to
the Agent for the benefit of the Banks pursuant to the Security Agreement. 
  
 “Commitment Percentage” means, for each Bank, the percentage of the Revolving Credit Commitments represented by such Bank’s Revolving Credit Commitment or, if the Revolving Credit Commitments
have been terminated, the percentage held by such Bank (including through participation interests in Reimbursement Obligations) of the aggregate principal amount of all Revolving Credit Loans and L/Cs and Reimbursement Obligations then outstanding.

  
 “Company” shall have the meaning specified in
the first paragraph of this Agreement. 
  

 -21- 

 “Competitive Bid” shall mean an offer by a Bank to make a Bid Loan pursuant to Section 2
hereof. 
  
 “Competitive Bid Request” shall mean
a request made by the Company pursuant to Section 2.2 hereof. 
  
 “ConAgra” means ConAgra Foods, Inc., a Delaware corporation. 
  
 “Consolidated Subsidiary” shall mean any Subsidiary whose accounts are consolidated with those of the Company in accordance with generally accepted accounting principles. 
  
 “Control” or “Controlled By” or
“Under Common Control” shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of voting securities, by contract or otherwise); provided that, in
any event any Person which beneficially owns, directly or indirectly, 10% or more (in number of votes) of the securities having ordinary voting power for the election of directors of a corporation shall be conclusively presumed to control such
corporation, and provided further that any Consolidated Subsidiary shall be conclusively presumed to be controlled by the Company. 
  
 “Convertible Stock” means preferred stock and other Capital Stock that are convertible, exchangeable or exercisable into the
Company’s common stock. 
  
 “Current Assets”
of any Person shall mean the aggregate amount of assets of such Person which in accordance with generally accepted accounting principles may be properly classified as current assets after deducting adequate reserves where proper. 
  
 “Current Liabilities” shall mean all items (including taxes
accrued as estimated) which in accordance with generally accepted accounting principles may be properly classified as current liabilities, and including in any event all amounts outstanding from time to time under this Agreement. For purposes of
calculating the Current Ratio or Net Working Capital, Current Liabilities shall not include (i) the Company’s indebtedness relating to the Bonds to the extent proceeds remain held in trust and not paid to the Company pursuant to the terms of
the Bond Documents, (ii) indebtedness relating to the Intercompany Bonds so long as the Company or a Subsidiary of the Company remains the holder of such Intercompany Bonds, and (iii) any other indebtedness so long as the trustee in respect of such
indebtedness holds cash and Cash Equivalents in an amount sufficient to repay the principal balance of such indebtedness. 
  
 “Current Ratio” shall mean the ratio of Current Assets to Current Liabilities of the Company and its Subsidiaries. 
  
 “Debt” of any Person shall mean as of any time the same is
to be determined, the aggregate on a consolidated basis (without duplication), of: 
  
 (a) all indebtedness, obligations and liabilities of such Person with respect to borrowed money (including by the issuance of debt
securities and any Convertible Stock that is classified as debt under generally accepted accounting principles, consistently applied or which the Company elects to treat as Debt under this Agreement); 
  

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 (b) all Capitalized Lease Obligations; 
  
 (c) all indebtedness secured by a lien on the Property of
such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness; 
  
 (d) all indebtedness, obligations and liabilities representing the deferred purchase price of property or services (excluding trade
payables incurred in the ordinary course of business); 
  
 (e) all reimbursement and other obligations with respect to letters of credit, bankers acceptances, customer advances and other extensions of credit whether or not representing obligations for borrowed money; and 
  
 (f) all direct guaranties and indemnities in respect of, and
to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, or to assure an obligee against failure to make payment in respect of, liabilities, obligations or indebtedness or others of the kind referred to in
clauses (a) through (e) above; 
  
 provided that for purposes of
calculating the financial covenants set forth in Sections 7.8, 7.10, 7.11, 7.12 and 7.13 of this Agreement and the calculation of the Leverage Ratio for purposes of determining the Applicable Margin, the term “Debt” shall not
include (i) the Company’s indebtedness relating to the Bonds to the extent proceeds remain held in trust and not paid to the Company pursuant to the terms of the Bond Documents, (ii) indebtedness relating to the Intercompany Bonds so long as
the Company or a Subsidiary of the Company remains the holder of such Intercompany Bonds, and (iii) any other indebtedness so long as the trustee in respect of such indebtedness holds cash and Cash Equivalents in an amount sufficient to repay the
principal balance of such indebtedness. 
  
 “Distribution
Business” means the business conducted at certain distribution facilities located in the United States and operated by the Company and the Distribution Subsidiary. 
  
 “Distribution Subsidiary” means Pilgrim’s Food Systems, Inc. and its successors, a Delaware
corporation engaged in the business of selling and distributing (a) poultry products acquired from the Company’s and its Affiliates’ operations, and (b) poultry and non-poultry products purchased from third parties, in each case to, among
others, independent grocers and quick service restaurants. 
  
 “Domestic Rate” means for any day the rate of interest announced by Harris from time to time as its prime commercial rate in effect on such day, with any change in the Domestic Rate resulting from a change in said prime
commercial rate to be effective as of the date of the relevant change in said prime commercial rate (the “Harris Prime Rate”), provided that if the rate per annum determined by adding 1/2 of 1% to the rate at which Harris would
offer to sell federal funds in the interbank market on or about 10:00 a.m. (Chicago time) on any day (the 
  

 -23- 

 “Adjusted Fed Funds Rate”) shall be higher than the Harris Prime Rate on such day, then the Domestic
Rate for such day and for any succeeding day which is not a Business Day shall be such Adjusted Fed Funds Rate. The determination of the Adjusted Fed Funds Rate by Harris shall be final and conclusive except in the case of manifest error or willful
misconduct. 
  
 “Domestic Rate Loan” means a
Revolving Credit Loan which bears interest as provided in Section 1.3(a) hereof. 
  
 “EBITDA” shall mean, in any fiscal year of the Company, all earnings (other than extraordinary items) of the Company before interest and income tax obligations of the Company for said year and before
depreciation and amortization charges of the Company for said year, all determined in accordance with generally accepted accounting principles, consistently applied. 
  
 “Eligible Inventory” shall mean any Inventory of the Company in which the Agent has a first priority
perfected security interest, which the Banks in their sole judgment deem to be acceptable for inclusion in the Borrowing Base and which complies with each of the following requirements: 
  
 (a) it consists solely of feed grains, feed, ingredients, live broiler chickens, dressed broiler chickens,
commercial eggs, prepared food products, breeder hens, breeder pullets, hatching eggs, commercial hens, commercial pullets, packaging materials, vaccines, general supplies and maintenance supplies; 
  
 (b) it is in first class condition, not obsolete, and is
readily usable or salable by the Company in the ordinary course of its business; 
  
 (c) it substantially conforms to the advertised or represented specifications and other quality standards of the Company, and has not been
determined by the Banks to be unacceptable due to age, type, category, quality and/or quantity; 
  
 (d) all warranties as set forth in this Agreement and the Security Agreement are true and correct with respect thereto; 
  
 (e) it has been identified to the Banks in the manner
prescribed pursuant to the Security Agreement; 
  
 (f) it is located at a location within the United States disclosed to and approved by the Banks and, if requested by the Agent, any Person (other than the Company) owning or controlling such location shall have waived all right, title and
interest in and to such Inventory in a manner satisfactory to the Banks; and 
  
 (g) it is not subject to any other lien, security interest or counterclaim. 
  
 “Environmental Laws” shall have the meaning specified in Section 5.10 hereof. 
  

 -24- 

 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

  
 “Eurodollar Loan” shall mean a Revolving
Credit Loan which bears interest as provided in Section 1.3(b) hereof. 
  
 “Eurodollar Rate” shall mean for each Interest Period applicable to a Eurodollar Loan, (a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the
arithmetic average of the rate of interest per annum (rounded upwards, if necessary, to nearest 1/100 of 1%) at which deposits in U.S. dollars in immediately available funds are offered to the Agent at 11:00 a.m. (London, England time) two (2)
Business Days before the beginning of such Interest Period by major banks in the interbank eurodollar market for a period equal to such Interest Period and in an amount equal or comparable to the principal amount of the Eurodollar Loan scheduled to
be made by the Agent during such Interest Period. 
  
 “Event of Default” shall mean any event or condition identified as such in Section 8.1 hereof. 
  
 “Fed Funds Rate” shall have the meaning specified in Section 1.7(c) hereof. 
  
 “Fiscal Year” shall mean the 52 or 53 week period ending on the Saturday closest to September 30 in each
calendar year, regardless of whether such Saturday occurs in September or October of any calendar year. 
  
 “Fixed Charge Coverage Ratio” shall mean the ratio of (a) the sum of EBITDA and all amounts payable under all non-cancellable operating
leases (determined on a consolidated basis in accordance with generally accepted accounting principles, consistently applied) for the period in question, to (b) the sum of (without duplication) (i) Interest Expense for such period, (ii) the sum of
the scheduled current maturities (determined in accordance with generally accepted accounting principles consistently applied) of Funded Debt during the period in question, (iii) all amounts payable under non-cancellable operating leases (determined
as aforesaid) during such period, and (iv) all amounts payable with respect to Capitalized Leases (determined on a consolidated basis in accordance with generally accepted accounting principles, consistently applied) for the period in question.

  
 “Fixed Rate Loan” shall mean a Eurodollar
Loan or a Bid Loan, and “Fixed Rate Loans” shall mean any one or more of such types of Loans. 
  
 “Foreign Subsidiary” shall mean any Subsidiary substantially all of whose assets, operations and business are located outside of the
United States. 
  
 “Funded Debt,” with respect to
any Person shall mean all indebtedness for borrowed money of such Person and with respect to the Company all indebtedness for borrowed money of the Company, in each case maturing by its terms more than one year after, or which is renewable or
extendible at the option of such Person for a period ending one year or more after, the date of 
  

 -25- 

 determination, and shall include indebtedness for borrowed money of such maturity created, assumed or guaranteed by such
Person either directly or indirectly, including obligations of such maturity secured by liens upon Property of such Person and upon which such entity customarily pays the interest, all current maturities of all such indebtedness of such maturity and
all rental payments under Capitalized Leases of such maturity. For purposes of calculating the Fixed Charge Coverage Ratio, Funded Debt shall not include (i) the Company’s indebtedness relating to the Bonds to the extent proceeds remain held in
trust and not paid to the Company pursuant to the terms of the Bond Documents, (ii) indebtedness relating to the Intercompany Bonds so long as the Company or a Subsidiary of the Company remains the holder of such Intercompany Bonds, and (iii) any
other indebtedness so long as the trustee in respect of such indebtedness holds cash and Cash Equivalents in an amount sufficient to repay the principal balance of such indebtedness 
  
 “Funding Corp.” shall mean Pilgrim’s Pride Funding Corporation, a Delaware corporation. 
  
 “Grower Payables” shall mean all amounts owed from time to
time by the Company to any Person on account of the purchase price of agricultural products or services (including poultry and livestock) if the Agent reasonably determines that such Person is entitled to the benefits of any grower’s lien,
statutory trust or similar security arrangements to secure the payment of any amounts owed to such Person. 
  
 “Guarantor” shall mean Pilgrim Interests, Ltd., a Texas limited partnership. 
  
 “Guaranty Fees” shall have the meaning specified in Section
7.28 hereof. 
  
 “Harris” shall have the meaning
specified in the first paragraph of this Agreement. 
  
 “Harris – Related Persons” shall mean Harris, together with its Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of Harris and such Affiliates. 
  
 “Hedging Liabilities” shall mean indebtedness, obligations
and liabilities of the Company and any of its Subsidiaries attributable to (i) any interest rate protection agreement, interest rate future, interest rate option, interest rate swap, cap, collar or floor or other interest rate hedge arrangement, to
which the Company or any of its Subsidiaries is a party or a beneficiary, (ii) any foreign exchange contract, currency option, currency swap, cap, collar or floor or other similar agreement or arrangement designed to protect the Company or any of
its Subsidiaries against fluctuations in currency values or (iii) any commodity option, commodity forward contract, commodity swap, cap, collar or floor or similar agreement or arrangement designed to protect the Company or any of its Subsidiaries
against fluctuations in commodity prices. 
  
 “Highest
Lawful Rate” shall have the meaning specified in Section 11.20 hereof. 
  
 “Indenture” shall mean the Trust Indenture dated as of June 15, 1999 between the Issuer and the Trustee, relating to the Bonds, as amended. 
  

 -26- 

 “Intangible Assets” shall mean license agreements, trademarks, trade names, patents,
capitalized research and development, proprietary products (the results of past research and development treated as long term assets and excluded from Inventory) and goodwill (all determined on a consolidated basis in accordance with generally
accepted accounting principles consistently applied). 
  
 “Intercompany Bonds” means (a) Tax Bonds in an aggregate principal amount of approximately $57,500,000 assigned to the Company in connection with and as part of the acquisition by the Company of the stock of certain
Subsidiaries of ConAgra, and (b) any industrial revenue bonds, notes, debentures or similar instruments issued by a governmental entity on behalf of the Company or a Subsidiary and concurrently with or following its issuance purchased by the Company
or a Subsidiary. 
  
 “Interest Expense” for any
period shall mean all interest charges during such period, including all amortization of debt discount and expense and imputed interest with respect to Capitalized Lease Obligations, determined on a consolidated basis in accordance with generally
accepted accounting principles, consistently applied, including without limitation dividends relating to Convertible Stock that is classified as debt under generally accepted accounting principles, consistently applied, or which the Company elects
to treat as Debt under this Agreement. 
  
 “Interest
Period” shall mean with respect to (a) the Eurodollar Loans, the period used for the computation of interest commencing on the date the relevant Eurodollar Loan is made, continued or effected by conversion and concluding on the date one,
two, three or six months thereafter and, (b) the Bid Loans, the period used for the computation of interest commencing on the date the relevant Bid Loan is made and ending on the date such Bid Loan is scheduled to mature, but in no event may such
period have a duration of less than 30 days or more than 180 days; provided, however, that no Interest Period for any Fixed Rate Loan may extend beyond the Termination Date. For purposes of determining an Interest Period applicable to
a Eurodollar Loan, a month means a period starting on one day in a calendar month and ending on a numerically corresponding day in the next calendar month; provided, however, that if there is no numerically corresponding day in the month in
which an Interest Period is to end or if an Interest Period begins on the last day of a calendar month, then such Interest Period shall end on the last Business Day of the calendar month in which such Interest Period is to end. 
  
 “Inventory” shall mean all raw materials, work in process,
finished goods, and goods held for sale or lease or furnished or to be furnished under contracts of service in which the Company or any Subsidiary now has or hereafter acquires any right. 
  
 “Issuer” shall mean the Camp County Industrial Development Corporation, a nonstock, nonprofit industrial
development corporation existing under the laws of the State of Texas. 
  
 “L/C” shall have the meaning set forth in Section 1.5 hereof. 
  
 “L/C Agreement” shall have the meaning set forth in Section 1.5 hereof. 
  

 -27- 

 “L/C Fee” has the meaning specified in Section 1.5 hereof. 
  
 “L/C Fronting Fee” has the meaning specified in Section 1.5
hereof. 
  
 “L/C Issuer” means the Agent and,
with respect to L/Cs issued to credit enhance debt securities, such Banks listed as eligible L/C Issuers on Schedule 2 attached hereto, as such schedule may be modified from time to time in writing by the Company and the Agent. 
  
 “Leverage Ratio” shall mean the ratio for the Company and
its Subsidiaries of (a) an amount equal to the sum of the aggregate outstanding principal amount of all Debt (other than Debt consisting of reimbursement and other obligations with respect to undrawn letters of credit) minus the aggregate principal
amount of all cash and Cash Equivalents reflected on the Company’s balance sheet that is not restricted to secure the payment of off-balance sheet liabilities of the Company or any Subsidiary, to (b) the amount included in clause (a) above plus
Net Worth. 
  
 “LIBOR Index Rate” shall mean, for
any Interest Period applicable to a Eurodollar Loan, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to such Interest Period, which
appears on the Telerate Page 3750 as of 11:00 a.m. (London, England time) on the day two Business Days before the commencement of such Interest Period. 
  
 “Loan” shall mean a Revolving Credit Loan or a Bid Loan, and “Loans” shall mean any two or more Revolving Credit Loans and/or
Bid Loans. 
  
 “Loan Documents” shall mean this
Agreement and any and all exhibits hereto, the Notes, the L/C Agreements, the Reimbursement Agreement and the Security Agreement. 
  
 “Material Subsidiary” shall mean any Subsidiary whose assets total 5% or more of the Total Assets of the Company. 
  
 “Mexican Subsidiary” shall mean a Foreign Subsidiary
substantially all of whose assets, business and operations are located in the Republic of Mexico. 
  
 “Moody’s” shall mean Moody’s Investor Services, Inc. 
  
 “Net Income” shall mean the net income of the Company and its Subsidiaries determined on a consolidated
basis in accordance with generally accepted accounting principles, consistently applied. 
  
 “Net Tangible Assets” shall mean the excess of the value of the Total Assets over the value of the Intangible Assets of the Company and its Subsidiaries. 
  
 “Net Working Capital” shall mean as to any Person in the
excess for such Person of Current Assets over Current Liabilities. 
  

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 “Net Worth” shall mean the Total Assets minus the Total Liabilities of the Company and
its Subsidiaries, all determined on a consolidated basis in accordance with generally accepted accounting principles, consistently applied. 
  
 “Notes” shall mean the Revolving Notes, and “Note” means any of the Notes. 
  
 “Partnership Guaranty” shall mean the Amended and Restated
Guaranty Agreement dated as of April 7, 2004, from the Guarantor to the Banks, as the same may be supplemented and amended from time to time. 
  
 “PBGC” shall mean the Pension Benefit Guaranty Corporation. 
  
 “Person” shall mean and include any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, institution, entity, party or government (whether national, federal, state, county, city, municipal, or otherwise, including, without limitation, any instrumentality, division, agency, body or
department thereof). 
  
 “Pilgrim Family” means
(a) 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, or (b) the Guarantor. 
  
 “Plan” shall mean any employee benefit plan covering any
officers or employees of the Company or any Subsidiary, any benefits of which are, or are required to be, guaranteed by the PBGC. 
  
 “Potential Default” shall mean any event or condition which, with the lapse of time, or giving of notice, or both, would constitute an
Event of Default. 
  
 “PPAHC” shall mean
Pilgrim’s Pride Affordable Housing Corp., a Nevada corporation. 
  
 “Property” shall mean any interest in any kind of property or asset, whether real, personal or mixed or tangible or intangible. 
  
 “Receivables” shall mean all accounts, contract rights, instruments, documents, chattel paper and general intangibles in which the
Company or any Subsidiary now has or hereafter acquires any right. 
  
 “Receivables Securitization Program” shall mean any receivables securitization program to which the Company or a Subsidiary is a party which provides for the sale by the Company or its Subsidiaries, without recourse, of its
Receivables for cash consideration, and including in any event the receivables securitization program pursuant to which the Company will sell to Funding Corp. all or substantially all of the Company’s receivables and Funding Corp. will in turn
sell an undivided interest in all of such Receivables to Fairway Finance Company, LLC and its successors and assigns. 
  
 “Reimbursement Agreement” shall have the meaning specified in Section 1.10 hereof. 
  

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 “Reimbursement Obligation” has the meaning specified in Section 1.6 hereof. 

 
 “Required Banks” shall mean any Bank or Banks which in
the aggregate hold at least 51% of the aggregate unpaid principal balance of the Loans, Bond Reimbursement Obligations and Reimbursement Obligations or, if no Loans are outstanding hereunder, any Bank or Banks in the aggregate having at least 51% of
the Revolving Credit Commitments. 
  
 “Reserve
Percentage” means the daily arithmetic average maximum rate at which reserves (including, without limitation, any supplemental, marginal and emergency reserves) are imposed on member banks of the Federal Reserve System during the applicable
Interest Period by the Board of Governors of the Federal Reserve System (or any successor) under Regulation D on “eurocurrency liabilities” (as such term is defined in Regulation D), subject to any amendments of such reserve
requirement by such Board or its successor, taking into account any transitional adjustments thereto. For purposes of this definition, the Eurodollar Loans shall be deemed to be eurocurrency liabilities as defined in Regulation D without benefit or
credit for any prorations, exemptions or offsets under Regulation D. 
  
 “Revolving Credit” shall have the meaning specified in the first paragraph of this Agreement. 
  
 “Revolving Credit Commitment” means, as to any Bank, the obligation of such Bank to make Revolving Credit Loans and to participate in
L/Cs issued for the account of the Company hereunder and in Reimbursement Obligations arising hereunder in an aggregate principal or face amount at any one time outstanding not to exceed the amount set forth opposite such Bank’s name on
Schedule 1 attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Company and the Banks acknowledge and agree that the Revolving Credit Commitments of the
Banks aggregate $150,000,000 on the date hereof. 
  
 “Revolving Credit Loan” and “Revolving Credit Loans” shall have the meanings specified in Section 1.1(a) hereof. 
  
 “Revolving Note” or “Revolving Notes” shall have the meanings specified in Section 1.1(d) hereof. 
  
 “S&P” shall mean Standard & Poor’s Ratings
Group. 
  
 “Security Agreement” shall mean that
certain Amended and Restated Security Agreement Re: Inventory and Farm Products, dated as of April 7, 2004, from the Company to Harris, as Agent, as such agreement may be supplemented and amended from time to time. 
  
 “Senior Subordinated Indenture” shall mean that certain
Subordinated Indenture dated as of November 21, 2003 by and between the Company as successor to PPC Escrow Corp., as Issuer, and The Bank of New York, as Trustee, in connection with the Company’s 9 1/4% Senior Subordinated Notes due November 15, 2013 in an aggregate amount not to exceed $100,000,000. 
  

 -30- 

 “Subordinated Debt” shall mean indebtedness for borrowed money of the Company which is
subordinate in right of payment to the prior payment in full of the Company’s indebtedness, obligations and liabilities to the Banks under the Loan Documents pursuant to written subordination provisions satisfactory in form and substance to the
Required Banks. 
  
 “Subsidiary” shall mean
collectively any corporation or other entity at least a majority of the outstanding voting equity interests (other than directors’ qualifying shares) (measured by voting power rather than number of shares) of which is at the time owned directly
or indirectly by the Company or by one of more Subsidiaries or by the Company and one or more Subsidiaries. 
  
 “Tangible Net Worth” shall mean the Net Worth minus the amount of all Intangible Assets of the Company and its Subsidiaries, determined
on a consolidated basis in accordance with generally accepted accounting principles, consistently applied. 
  
 “Tax Bonds” shall mean certain industrial revenue bonds issued by governmental authorities and similar financing arrangements provided by
or through state and local governmental agencies the proceeds of which were used to finance the acquisition and construction of specified projects. 
  
 “Telerate Page 3750” shall mean the display designated as “Page 3750” on the Telerate Service (or such other page as may
replace Page 3750 on that service or such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for U.S. Dollar
deposits). 
  
 “Termination Date” shall have the
meaning set forth in Section 1.1(a) hereof. 
  
 “Total
Assets” shall mean at any date, the aggregate amount of assets of the Company and its Subsidiaries determined on a consolidated basis in accordance with generally accepted accounting principles consistently applied. 
  
 “Total Liabilities” shall mean at any date, the aggregate
amount of all liabilities of the Company and its Subsidiaries determined on a consolidated basis in accordance with generally accepted accounting principles, consistently applied, provided that for purposes of calculating the financial
covenants set forth in Sections 7.8, 7.10, 7.11, 7.12 and 7.13 of this Agreement the term “Total Liabilities” shall not include (i) the Company’s indebtedness relating to the Bonds to the extent proceeds remain held in trust
and not paid to the Company pursuant to the terms of the Bond Documents, (ii) the Company’s indebtedness relating to the Intercompany Bonds so long as the Company or a Subsidiary of the Company remains the holder of such Intercompany Bonds, and
(iii) any other indebtedness so long as the trustee in respect of such indebtedness holds cash and Cash Equivalents in an amount sufficient to repay the principal balance of such indebtedness. 
  
 “Trustee” shall mean Harris Trust and Savings Bank, as
Trustee under the Indenture, and any successor trustee thereunder. 
  

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 “Turkey Business Assets” shall mean assets of the Company and its Subsidiaries that
relate to their turkey line of business. 
  
 “Value of
Eligible Inventory” shall mean as of any given date with respect to Eligible Inventory: 
  
 (a) With respect to Eligible Inventory consisting of feed grains, feed, ingredients, dressed broiler chickens and commercial eggs, an
amount equal to the lower of (i) costs determined on a first-in-first-out inventory basis (determined in accordance with generally accepted accounting principles consistently applied), or (ii) wholesale market value; 
  
 (b) With respect to Eligible Inventory consisting of live
broiler chickens, a price per pound equal to 75% of (i) the price quoted on the Los Angeles Majority Market on the date of calculation minus (ii) $0.085, rounded up to the nearest 1/4 cent (which is the Arkansas live equivalent); 
  
 (c) With respect to Eligible Inventory consisting of
prepared food products, the standard cost value; 
  
 (d) With respect to Eligible Inventory consisting of: breeder hens, $1.50 per head; breeder pullets, $1.00 per head; commercial hens, $0.70 per head; commercial pullets, $0.40 per head; and hatching eggs, $1.25 a dozen; or in each case such
other values as may be agreed upon by the Company and the Required Banks; and 
  
 (e) With respect to Eligible Inventory consisting of packaging materials, vaccines, general supplies and maintenance supplies, actual costs. 
  
 Section 4.2. Accounting Terms. Any accounting term or the character or amount of any asset or liability or item of
income or expense required to be determined under this Agreement, shall be determined or made in accordance with generally accepted accounting principles at the time in effect, to the extent applicable, except where such principles are inconsistent
with the requirements of this Agreement. 
  
 Section 4.3.
Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. The words “hereof”, “herein”, and “hereunder” and words of like
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically provided.

  
 SECTION 5. REPRESENTATIONS
AND WARRANTIES. 
  
 The Company represents and warrants to the Banks as follows: 
  
 Section 5.1. Organization and Qualification. The Company is a corporation duly organized and existing and in good standing under the laws of the State of Delaware, has full and 
  

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 adequate corporate power to carry on its business as now conducted, is duly licensed or qualified in all jurisdictions
wherein the nature of its activities requires such licensing or qualification except where the failure to be so licensed or qualified would not have a material adverse effect on the condition, financial or otherwise, of the Company, has full right
and authority to enter into this Agreement and the other Loan Documents, to make the borrowings herein provided for, to issue the Notes in evidence thereof, to encumber its assets as collateral security for such borrowings and to perform each and
all of the matters and things herein and therein provided for; and this Agreement does not, nor does the performance or observance by the Company of any of the matters or things provided for in the Loan Documents, contravene any provision of law or
any charter or by-law provision or any covenant, indenture or agreement of or affecting the Company or its Properties. 
  
 Section 5.2. Subsidiaries. Each Subsidiary is duly organized and existing under the laws of the jurisdiction of its incorporation or organization,
has full and adequate corporate or other organizational power to carry on its business as now conducted and is duly licensed or qualified in all jurisdictions wherein the nature of its business requires such licensing or qualification and the
failure to be so licensed or qualified would have a material adverse effect upon the business, operations or financial condition of such Subsidiary and the Company taken as a whole. As of the date hereof, the only Subsidiaries of the Company are set
forth on Exhibit H hereto. 
  
 Section 5.3. Financial
Reports. The Company has heretofore delivered to the Banks a copy of the Audit Report as of September 27, 2003 of the Company and its Subsidiaries and unaudited financial statements (including a balance sheet, statement of income and retained
earnings, statement of cash flows, footnotes and comparison to the comparable prior year period) of the Company as of, and for the period ending January 3, 2004. Such audited financial statements have been prepared in accordance with generally
accepted accounting principles on a basis consistent, except as otherwise noted therein, with that of the previous fiscal year or period and fairly reflect in all material respects the consolidated financial position of the Company and its
Subsidiaries as of the dates thereof, and the consolidated results of its operations for the periods covered thereby. The Company and its Subsidiaries have no material contingent liabilities other than as indicated on said financial statements and
since said date of January 3, 2004, there has been no material adverse change in the condition, financial or otherwise, of the Company and its Subsidiaries, taken as a whole that has not been disclosed in writing to the Banks. 
  
 Section 5.4. Litigation; Tax Returns; Approvals. There is no
litigation or governmental proceeding pending, nor to the knowledge of the Company threatened, against the Company or any Subsidiary which could reasonably be expected to result in any material adverse change in the Properties, business and
operations of the Company and its Subsidiaries, taken as a whole. All income tax returns for the Company required to be filed have been filed on a timely basis, all amounts required to be paid as shown by said returns have been paid except where the
failure to make such filing or payment could not reasonably be expected to have a material adverse effect on the business, operations, Property or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole. There are no
pending or, to the best of the Company’s knowledge, threatened objections to or controversies in respect of the United States federal income tax returns of the Company for any fiscal year except such objection or controversies that 

 

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 could not reasonably be expected to have a material adverse effect on the business, operations, Property or condition
(financial or otherwise) of the Company and its Subsidiaries, taken as a whole or are being contested in good faith by appropriate proceedings and adequate reserves have been provided therefor in accordance with generally accepted accounting
principles consistently applied. No authorization, consent, license, exemption or filing (other than the filing of financing statements) or registration with any court or governmental department, agency or instrumentality, is or will be necessary to
the valid execution, delivery or performance by the Company of the Loan Documents. 
  
 Section 5.5. Regulation U. Neither the Company nor any Subsidiary is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan made hereunder will be used to purchase or carry any margin stock or to extend credit to others for such a purpose. 
  
 Section 5.6. No Default. As of the date of this Agreement, the Company
is in full compliance with all of the terms and conditions of this Agreement, and no Potential Default or Event of Default is existing under this Agreement. 
  
 Section 5.7. ERISA. The Company and its Subsidiaries are in compliance in all material respects with ERISA to the extent applicable to them and
have received no written notice to the contrary from the PBGC or any other governmental entity or agency. 
  
 Section 5.8. Security Interests and Debt. There are no security interests, liens or encumbrances on any of the Property of the Company or any
Subsidiary except such as are permitted by Section 7.15 of this Agreement, and the Company and its Subsidiaries have no Debt except such as is permitted by Section 7.16 of this Agreement. 
  
 Section 5.9. Accurate Information. No information, exhibit or report furnished by the Company to the Banks in
connection with the negotiation of the Loan Documents contained any misstatement of material fact or omitted to state a material fact or any fact necessary to make the statements contained therein not misleading in light of the circumstances in
which made. 
  
 Section 5.10. Environmental Matters. (a)
Except as disclosed on Exhibit C, the Company has not received any written notice to the effect, or has any knowledge, that its or any Subsidiary’s Property or operations are not in compliance with any of the requirements of applicable
federal, state and local environmental, health and safety statutes and regulations (“Environmental Laws”) or are the subject of any federal or state investigation evaluating whether any remedial action is needed to respond to a
release of any toxic or hazardous waste or substance into the environment, which non-compliance or remedial action could reasonably be expected to have a material adverse effect on the business, operations, Property, assets or conditions (financial
or otherwise) of the Company and its Subsidiaries, taken as a whole; 
  
 (b) there have been no releases of hazardous materials at, on or under any Property now or previously owned or leased by the Company or any Subsidiary that, singly or in the aggregate, have, or may reasonably be expected to have, a material
adverse effect on the financial condition, operations, assets, business or Properties of the Company and its Subsidiaries, taken as a whole; 
  

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 (c) there are no underground storage tanks, active or abandoned, including petroleum storage tanks, on or
under any property now or previously owned or leased by the Company or any Subsidiary that, singly or in the aggregate, have, or may reasonably be expected to have, a material adverse effect on the financial condition, operations, assets, business
or Properties of the Company and its Subsidiaries, taken as a whole; 
  
 (d) neither the Company nor any Subsidiary has directly transported or directly arranged for the transportation of any hazardous material to any location which is listed or proposed for listing on the National Priorities List pursuant to
CERCLA, on the CERCLIS or on any similar state list or which is the subject of federal, state or local enforcement actions or other investigations which could reasonably be expected to lead to material claims against the Company or any Subsidiary
thereof for any remedial work, damage to natural resources or personal injury, including claims under CERCLA; and 
  
 (e) no conditions exist at, on or under any Property now or previously owned or leased by the Company or any Subsidiary which, with the passage of time,
or the giving of notice or both, would give rise to any material liability under any Environmental Law. 
  
 Section 5.11. Enforceability. This Agreement and the other Loan Documents are legal, valid and binding agreements of the Company, enforceable
against it in accordance with their terms, except as may be limited by (a) bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other similar laws or judicial decisions for the relief of debtors or the limitation of
creditors’ rights generally; and (b) any equitable principles relating to or limiting the rights of creditors generally. 
  
 Section 5.12. Restrictive Agreements. Neither the Company nor any Subsidiary is a party to any contract or agreement, or subject to any charge or
other corporate restriction, which adversely affects its ability to execute, deliver and perform the Loan Documents to which it is a party and repay its indebtedness, obligations and liabilities under the Loan Documents or which materially and
adversely affects or, insofar as the Company can reasonably foresee, could reasonably be expected to materially and adversely affect, the property, business, operations or condition (financial or otherwise) of the Company and its Subsidiaries, taken
as a whole, or would in any respect materially and adversely affect the Collateral, the repayment of the indebtedness, obligations and liabilities under the Loan Documents, or any Bank’s or the Agent’s rights under the Loan Documents.

  
 Section 5.13. Labor Disputes. Except as set forth on
Exhibit J, (a) as of the date hereof, there is no collective bargaining agreement or other labor contract covering employees of the Company or any of its Subsidiaries; (b) no such collective bargaining agreement or other labor contract is
scheduled to expire during the term of this Agreement; (c) no union or other labor organization is seeking to organize, or to be recognized as, a collective bargaining unit of employees of the Company or any of its Subsidiaries; and (d) there is no
pending or (to the best of the Company’s knowledge) threatened strike, work stoppage, material unfair labor practice claim or other material labor dispute against or affecting the Company or any of its Subsidiaries or their respective
employees. 
  

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 Section 5.14. No Violation of Law. Neither the Company nor any Subsidiary is in violation of any
law, statute, regulation, ordinance, judgment, order or decree applicable to it which violation could reasonably be expected to in any respect materially and adversely affect the Collateral, the repayment of the indebtedness, obligations and
liabilities under the Loan Documents, any Bank’s or the Agent’s rights under the Loan Documents, or the Property, business, operations or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole. 

 
 Section 5.15. No Default Under Other Agreements. Neither the
Company nor any Subsidiary is in default with respect to any note, indenture, loan agreement, mortgage, lease, deed, or other agreement to which it is a party or by which it or its Property is bound, which default could reasonably be expected to
materially and adversely affect the Collateral, the repayment of the indebtedness, obligations and liabilities under the Loan Documents, any Bank’s or the Agent’s rights under the Loan Documents or the Property, business, operations or
condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole. 
  
 Section 5.16. Status Under Certain Laws. Neither the Company nor any of its Subsidiaries is an “investment company” or a person directly or indirectly controlled by or acting on behalf of an
“investment company” within the meaning of the Investment Company Act of 1940, as amended, or a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or a “subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 Section 5.17. Federal Food Security Act. The Company has received no
written notice given pursuant to Section 1324(e)(1) or (3) of the Federal Food Security Act and there has not been filed any financing statement or notice, purportedly in compliance with the provisions of the Federal Food Security Act, purporting to
perfect a security interest in farm products purchased by the Company in favor of a secured creditor of the seller of such farm products. The Company has registered, pursuant to Section 1324(c)(2)(D) of the Federal Food Security Act, with the
Secretary of State of each State in which are produced farm products purchased by the Company and which has established or hereafter establishes a central filing system, as a buyer of farm products produced in such State; and each such registration
is in full force and effect. 
  
 Section 5.18. Fair
Labor Standards Act. The Company and each Subsidiary has complied in all material respects with, and will continue to comply with, the provisions of the Fair Labor Standards Act of 1938, 29 U.S.C. §201, et seq., as amended from time
to time (the “FLSA”), including specifically, but without limitation, 29 U.S.C. §215(a). This representation and warranty, and each reconfirmation hereof, shall constitute written assurance from the Company, given as of the
date hereof and as of the date of each reconfirmation, that the Company and each Subsidiary has complied in all material respects with the requirements of the FLSA, in general, and Section 15(a)(1), 29 U.S.C. §215(a)(1), thereof, in particular.

  
  

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 Section 5.19. Organization and Qualification of the Guarantor. The Guarantor is a limited
partnership duly organized and existing and in good standing under the laws of the State of Texas, has full and adequate partnership power to carry on its business as now conducted, is duly licensed or qualified in all jurisdictions wherein the
nature of its activities requires such licensing or qualification except where the failure to be so licensed or qualified would not have a material adverse effect on the condition, financial or otherwise, of the Guarantor, has full right and
authority to enter into the Partnership Guaranty, to guaranty the payment when due of the Company’s indebtedness, obligations and liabilities to the Banks under the Loan Documents pursuant to the Partnership Guaranty and to perform each and all
of the matters and things therein provided for; and the Partnership Guaranty does not, nor does the performance or observance by the Guarantor of any of the matters or things provided for in the Partnership Guaranty, contravene any provision of law
or any provision of the Guarantor’s certificate of limited partnership or its limited partnership agreement or any covenant, indenture or agreement of or affecting the Guarantor or its Properties. 
  
 SECTION 6. CONDITIONS PRECEDENT. 
  
 The obligation of the Banks to make any Loan pursuant hereto or to issue any
L/C shall be subject to the following conditions precedent: 
  
 Section 6.1. General. The Agent shall have received the notice of borrowings and requests for L/Cs and the Notes hereinabove provided for. 
  
 Section 6.2. Each Extension of Credit. As of the time of the making of each Loan and the issuance of each L/C hereunder (including the initial Loan
or L/C, as the case may be): 
  
 (a) each of the
representations and warranties set forth in Section 5 hereof shall be and remain true and correct as of said time as if made at said time, except that (i) the representations and warranties made under Section 5.3 shall be deemed to refer to the most
recent financial statements furnished to the Banks pursuant to Section 7.4 hereof and (ii) with respect to the Company’s Foreign Subsidiaries the representations and warranties made under Section 5.13(d) shall be deemed to refer only to
material strikes, work stoppages, unfair labor practice claims or other material labor disputes; 
  
 (b) the Company shall be in full compliance with all of the terms and conditions hereof, and no Potential Default or Event of Default
shall have occurred and be continuing; 
  
 (c)
after giving effect to the requested extension of credit and to each Loan that has been made and L/C issued hereunder, the aggregate principal amount of all Loans, the amount available for drawing under all L/Cs and the aggregate principal amount of
all Reimbursement Obligations then outstanding shall not exceed the lesser of (i) the sum of the Banks’ Revolving Credit Commitments then in effect and (ii) the Borrowing Base as determined on the basis of the most recent Borrowing Base
Certificate, except as otherwise agreed by the Company and all of the Banks; and 
  

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 (d) no change shall have occurred in the condition or operation of the Company or any
Subsidiary since the date of the financial statements (quarterly or annual, as applicable) most recently provided by the Company to the Banks pursuant to Sections 7.4(a) or (b), as applicable, which, when considered in the aggregate, could
reasonably be expected to have a material adverse effect on the business, operations, Property or condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole; 
  
 and the request by the Company for any Loan or L/C pursuant hereto shall be and constitute a warranty to the foregoing effects. 

 
 Section 6.3. Conditions to Effectiveness of Restatement. This
Agreement shall become effective upon satisfaction of all of the following conditions precedent: 
  
 (a) The Company and each of the Banks shall have executed this Agreement (such execution may be in several counterparts and the several parties hereto may
execute on separate counterparts). 
  
 (b) The Agent shall have
received (in sufficient counterparts for distribution to each of the Banks) all of the following in a form satisfactory to the Agent, the Banks and their respective counsel: 
  
 (i) a Secured Revolving Credit Note in the form attached hereto as Exhibit A payable to the order of each
Bank in the principal amount of its Revolving Credit Commitment; 
  
 (ii) a fully executed Security Agreement; 
  
 (iii) a fully executed Partnership Guaranty; 
  
 (iv) copies of the Company’s certificate of incorporation and bylaws and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary; 
  
 (v) copies of resolutions of the Company’s Board of
Directors authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby, together with specimen signatures of the
persons authorized to execute such documents on the Company’s behalf, all certified in each instance by its Secretary or Assistant Secretary; 
  
 (vi) certificates of good standing for the Company (dated no earlier than 30 days prior to the date hereof) for its state of incorporation
and the State of Texas; 
  
 (vii) copies of the
partnership agreement of the Guarantor and any amendments thereto, certified by the Guarantor’s general partner; and 
  

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 (viii) an opinion of counsel to the Company substantially in a form as set forth in
Exhibit E hereto and satisfactory to the Agent, the Banks and their respective counsel; 
  
 (c) All legal matters incident to the execution and delivery hereof and the instruments and documents contemplated hereby shall be satisfactory to the Banks. 
  
 (d) The Agent shall have received for its account and the account of the
Banks all fees payable by the Company to the Agent and the Banks in connection with this Agreement. 
  
 (e) The Company shall have satisfied the conditions precedent set forth in Sections 6.1 and 6.2 hereof. 
  
 SECTION 7. COVENANTS. 
  
 It is understood and agreed that so long as credit is in use or available
under this Agreement or any amount remains unpaid on any Note, Reimbursement Obligation, L/C, Bond Reimbursement Obligation or Bond L/C, except to the extent compliance in any case or cases is waived in writing by the Required Banks: 
  
 Section 7.1. Maintenance. The Company will, and will cause each
Subsidiary to, maintain, preserve and keep its plant, Properties and equipment in good repair, working order and condition and will from time to time make all needful and proper repairs, renewals, replacements, additions and betterments thereto so
that at all times the efficiency thereof shall be preserved and maintained in all material respects, normal wear and tear excepted. 
  
 Section 7.2. Taxes. The Company will, and will cause each Subsidiary to, duly pay and discharge all taxes, rates, assessments, fees and
governmental charges upon or against the Company or its Subsidiaries or against their respective Properties in each case before the same become delinquent and before penalties accrue thereon unless and to the extent that the same are being contested
in good faith and by appropriate proceedings diligently conducted and for which adequate reserves in form and amount reasonably satisfactory to the Required Banks have been established or where the failure to make such payment could not reasonably
be expected to have a material adverse effect on the business, operations, Property or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, provided that the Company shall pay or cause to be paid all such taxes,
rates, assessments, fees and governmental charges forthwith upon the commencement of proceedings to foreclose any lien which is attached as security therefor, unless such foreclosure is stayed by the filing of an appropriate bond in a manner
satisfactory to the Required Banks. 
  
 Section 7.3.
Maintenance of Insurance. The Company will, and will cause each Subsidiary to, maintain insurance coverage by good and responsible insurance underwriters in such forms and amounts and against such risks and hazards as are customary for companies
engaged in similar businesses and owning and operating similar Properties, provided that the Company and its Subsidiaries may self-insure for workmen’s compensation, group health risks and their live chicken inventory in accordance with
applicable industry standards. In any event, the Company will insure any of its Property which is insurable against loss or damage by fire, 
  

 -39- 

 theft, burglary, pilferage and loss in transit, all in amounts and under policies containing loss payable clauses to the
Agent as its interest may appear (and, if the Agent requests, naming the Agent as additional insured therein) and providing for advance notice to the Agent of cancellation thereof, issued by sound and reputable insurers that, at the time of issuance
or renewal of such policies, are accorded a rating of A-XII or better or A or better by S&P or Moody’s and all premiums thereon shall be paid by the Company and certificates summarizing the same delivered to the Agent. 
  
 Section 7.4. Financial Reports. The Company will, and will cause each
Subsidiary to, maintain a standard and modern system of accounting in accordance with sound accounting practice and will furnish to the Banks and their duly authorized representatives such information respecting the business and financial condition
of the Company and its Subsidiaries as may be reasonably requested and, without any request, will furnish to the Banks: 
  
 (a) as soon as available, and in any event within 45 days after the close of each quarterly fiscal period of the Company a copy of the
consolidated balance sheet, statement of income and retained earnings, statement of cash flows, and the results of operations of the Company and its Subsidiaries, for such period of the Company and its Subsidiaries, and unaudited consolidating
balance sheets, statement of income and retained earnings and the results of operations for the Company and its Material Subsidiaries, in each case, together with all such information for the year to date, all in reasonable detail, prepared by the
Company and certified on behalf of the Company by the Company’s chief financial officer; 
  
 (b) as soon as available, and in any event within 90 days after the close of each fiscal year, a copy of the audit report for such year
and accompanying financial statements, including a consolidated balance sheet, a statement of income and retained earnings, and a statement of cash flows, together with all footnotes thereto, for the Company and its Subsidiaries, and unaudited
consolidating balance sheets, statement of income and retained earnings and statements of cash flows for the Company and its Material Subsidiaries, in each case, showing in comparative form the figures for the previous fiscal year of the Company,
all in reasonable detail, accompanied by an unqualified opinion of Ernst & Young LLP or other independent public accountants of nationally recognized standing selected by the Company and reasonably satisfactory to the Required Banks, such
opinion to indicate that such statements are prepared in accordance with generally accepted accounting principles; 
  
 (c) each of the financial statements furnished to the Banks pursuant to paragraph (a) and (b) above shall be accompanied by a Compliance
Certificate in the form of Exhibit F hereto signed on behalf of the Company by its chief financial officer; 
  
 (d) within 30 days after the end of each month, a Borrowing Base Certificate in the form of Exhibit G hereto, setting forth a computation
of the Borrowing Base as of that month’s end date, certified as correct on behalf of the Company by the Company’s chief financial officer and certifying that as of the last day of the preceding monthly period the signer thereof has
re-examined the terms and provisions of this Agreement and 
  

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 the Security Agreement and that to the best of his knowledge and belief, no Potential Default or Event of
Default has occurred or, if any such Potential Default or Event of Default has occurred, setting forth the description of such Potential Default or Event of Default and specifying the action, if any, taken by the Company to remedy the same;

  
 (e) promptly upon their becoming available,
copies of all registration statements and regular periodic reports, if any, which the Company shall have filed with the Securities and Exchange Commission or any governmental agency substituted therefor, or any national securities exchange,
including copies of the Company’s form 10-K annual report, including financial statements audited by Ernst & Young LLP or other independent public accountants of nationally recognized standing selected by the Company and reasonably
satisfactory to the Bank, its form 10-Q quarterly report to the Securities and Exchange Commission and any Form 8-K filed by the Company with the Securities and Exchange Commission; 
  
 (f) promptly upon the mailing thereof to the shareholders of the Company generally, copies of all financial
statements, reports and proxy statements so mailed; and 
  
 (g) together with the audited financial statements delivered pursuant to Section 7.4(b), a list in reasonable detail of all Intercompany Bonds outstanding on the date of such financial statements, certified by the
chief financial officer of the Company. 
  
 Section 7.5.
Inspection and Reviews. The Company shall, and shall cause each Subsidiary to, permit the Agent and the Banks, by their representatives and agents, to inspect any of the properties, corporate books and financial records of the Company and its
Subsidiaries, to review and make copies of the books of accounts and other financial records of the Company and its domestic Subsidiaries, and to discuss the affairs, finances and accounts of the Company and its Subsidiaries with, and to be advised
as to the same by, its officers at such reasonable times and intervals as the Agent or the Banks may designate. In addition to any other compensation or reimbursement to which the Agent and the Banks may be entitled under the Loan Documents, after
the occurrence of an Event of Default and during the continuation thereof the Company shall pay to the Agent from time to time upon demand the amount necessary to compensate it for all fees, charges and expenses incurred by the Agent or its designee
in connection with the audits of Collateral, or inspections or review of the books, records and accounts of the Company or any domestic Subsidiary conducted by the Agent or its designee or any of the Banks. 
  
 Section 7.6. Consolidation and Merger. The Company will not, and will
not permit any Subsidiary to, consolidate with or merge into any Person, or permit any other Person to merge into it, or acquire (in a transaction analogous in purpose or effect to a consolidation or merger) all or substantially all the Property of
the other Person, or acquire substantially as an entirety the business of any other Person, without the prior written consent of the Required Banks; provided, however, that (a) if no Potential Default or Event of Default shall have occurred
and be continuing or shall result therefrom (including compliance on a pro forma basis with Sections 7.8, 7.9, 7.10, 7.11, 7.12 and 7.13) the Company may acquire all or substantially all the Property of the other Person, or acquire substantially as
an entirety the business of any other Person if (i) the aggregate fair market value of all consideration paid or payable by the Company 
  

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 in all such acquisitions made in any Fiscal Year does not exceed $100,000,000, (ii) after giving effect to such
acquisition the Company shall be in compliance with Section 7.22 hereof, and (iii) if the acquisition involves a merger or consolidation of the Company, the Company is the surviving or resulting entity, and (b) a Subsidiary or the Company may
acquire, merge with or into or consolidate with another Subsidiary so long as, in the case of an acquisition, a merger or a consolidation involving the Company, the Company is the surviving or resulting entity, and (c) any Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to the Company or any other Subsidiary. 
  
 Section 7.7. Transactions with Affiliates. The Company will not, and will not permit any Subsidiary to, enter into any transaction, including without limitation, the purchase, sale, lease or exchange of any
Property, or the rendering of any service, with any Affiliate of the Company or such Subsidiary except (a) in the ordinary course of and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair
and reasonable terms not materially less favorable to the Company than would be obtained in a comparable arm’s-length transaction with a Person not an Affiliate of the Company or such Subsidiary, (b) on-going transactions with Affiliates of the
type disclosed in the Company’s proxy statement for its Fiscal Year ended September 27, 2003, (c) the sale of all or substantially all of the Company’s or a Subsidiary’s Receivables pursuant to a Receivables Securitization Program,
(d) the guaranties and environmental indemnities described in Section 7.16(o) hereof, and (e) any transaction entered into between any of the Subsidiaries. 
  
 Section 7.8. Leverage Ratio. The Company will not permit its Leverage Ratio at any time to exceed 0.625 to 1. 
  
 Section 7.9. Tangible Net Worth. The Company shall maintain its
Tangible Net Worth at all times in an amount not less than $600,000,000, increasing (a) on the last day of each Fiscal Year of the Company by an amount equal to 50% of the Company’s Net Income (but not less than zero) for such Fiscal Year, and
(b) an the date the Company issues any Capital Stock of the Company in a Capital Raising Transaction by an amount equal to 100% of the cash and Cash Equivalent proceeds received by or for the Company’s account, net of reasonable legal,
underwriting, and other fees and expenses incurred as a direct result thereof. 
  
 Section 7.10. Current Ratio. The Company will maintain at all times and measured as of the last day of each quarterly fiscal accounting period a Current Ratio of not less than 1.35 to 1. 
  
 Section 7.11. Net Tangible Assets to Total Liabilities. The Company
will not permit the ratio of its Net Tangible Assets to its Total Liabilities at any time but measured as of the last day of each quarterly fiscal accounting period to be less than 1.3 to 1. 
  
 Section 7.12. Fixed Charge Coverage Ratio. The Company will not
permit, as of the last day of each fiscal quarter of the Company, its Fixed Charge Coverage Ratio for the eight consecutive fiscal quarters of the Company then ended to be less than 1.5 to 1 on the last day of each fiscal quarter of the Company.

  

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 Section 7.13. Minimum Net Working Capital. The Company will maintain Net Working Capital at all
times (measured as of the last day of each monthly fiscal accounting period) in an amount not less than $85,000,000. 
  
 Section 7.14. Dividends and Certain Other Restricted Payments. The Company will not (a) declare or pay any dividends or make any
distribution on any class of its capital stock (other than dividends payable solely in its capital stock) or (b) directly or indirectly purchase, redeem or otherwise acquire or retire any of its capital stock (except out of the proceeds of, or in
exchange for, a substantially concurrent issue and sale of capital stock) or (c) make any other distributions with respect to its capital stock; provided, however, that if no Potential Default or Event of Default shall exist before and after
giving effect thereto, the Company may (i) pay dividends (A) on Convertible Stock the proceeds of which were used to refinance Debt permitted by Section 7.16 or (B) on Convertible Stock which is classified as debt under generally accepted accounting
principles, consistently applied, or which the Company elects to treat as Debt under this Agreement, and such Debt is permitted by Section 7.16 hereof, (ii) in addition to the dividends permitted by clause (i), pay dividends in an aggregate amount
not to exceed $6,500,000 in any Fiscal Year, (iii) pay dividends permitted under Section 7.14(i) during the immediately preceding Fiscal Year that were declared but not paid in the immediately preceding Fiscal Year and (iv) repurchase the
Company’s capital stock in an aggregate amount not to exceed $25,000,000. 
  
 Section 7.15. Liens. The Company will not, and will not permit any Subsidiary to, pledge, mortgage or otherwise encumber or subject to or permit to exist upon or be subjected to any lien, charge or
security interest of any kind (including any conditional sale or other title retention agreement and any lease in the nature thereof), on any of its Properties of any kind or character other than: 
  
 (a) liens, pledges or deposits for workmen’s
compensation, unemployment insurance, old age benefits or social security obligations, taxes, assessments, statutory obligations or other similar charges, good faith deposits made in connection with tenders, contracts or leases to which the Company
or a Subsidiary is a party or other deposits required to be made in the ordinary course of business, provided in each case the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings and adequate
reserves have been provided therefor in accordance with generally accepted accounting principles and that the obligation is not for borrowed money, customer advances, trade payables or obligations to agricultural producers; 
  
 (b) the pledge of Property for the purpose of securing an
appeal or stay or discharge in the course of any legal proceedings, provided that the aggregate amount of liabilities of the Company and its Subsidiaries so secured by a pledge of Property permitted under this subsection (b) including interest and
penalties thereon, if any, shall not be in excess of $20,000,000 at any one time outstanding; 
  
 (c) liens, pledges, mortgages, security interests, or other charges granted to the Agent to secure the Notes, L/Cs, or the Reimbursement
Obligations; 
  

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 (d) liens, pledges, security interests or other charges now or hereafter created under
the Security Agreement; 
  
 (e) security
interests or other interests of a lessor in equipment leased by the Company or any Subsidiary as lessee under any financing lease, to the extent such security interest or other interest secures rental payments payable by the Company thereunder;

  
 (f) liens of carriers, warehousemen,
mechanics and materialmen and other like liens, in each case arising in the ordinary course of the Company’s or any Subsidiary’s business to the extent they secure obligations that are not past due or, if past due, which do not exceed an
aggregate at any one time of $10,000,000 or are being contested in good faith by appropriate proceedings and adequate reserves have been provided therefor in accordance with generally accepted accounting principals; 
  
 (g) such minor defects, irregularities, encumbrances,
easements, rights of way, and clouds on title as normally exist with respect to similar properties which do not materially impair the Property affected thereby for the purpose for which it was acquired; 
  
 (h) liens, pledges, mortgages, security interests or other
charges granted by any of the Company’s Foreign Subsidiaries in such Foreign Subsidiary’s Inventory, fixed assets and accounts receivable, in each case securing only indebtedness in an aggregate principal amount of up to the sum of 75% of
the Net Working Capital of such Foreign Subsidiaries plus $20,000,000; 
  
 (i) statutory landlord’s liens under leases; 
  
 (j) existing liens described on Exhibit D hereto; 
  
 (k) liens on the cash surrender value of the life insurance policy maintained by the Company on the life of
Mr. Lonnie A. Pilgrim, to the extent such liens secure loans in an aggregate principal amount not to exceed $900,000; 
  
 (l) liens, security interests, pledges, mortgages or other charges in any Property other than the Collateral securing obligations in an
aggregate amount not exceeding $100,000,000 at any time; 
  
 (m) liens, mortgages and security interests in the Company’s real estate, buildings, machinery and equipment securing indebtedness permitted only by Section 7.16(j) of this Agreement; 
  
 (n) the interest of any purchaser of the Company’s or
its Subsidiaries’ Receivables purchased by it pursuant to a Receivables Securitization Program in such Receivables; 
  

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 (o) liens and security interests granted by PPAHC on its real estate and all buildings
and improvements thereon and all rents, issues and profits thereof securing indebtedness permitted by Sections 7.16(n) and (o) hereof; 
  
 (p) (i) liens, pledges, mortgages, security interests, or other charges granted to the Agent to secure the Bond L/C or the Bond
Reimbursement Obligations, and (ii) liens, pledges, mortgages, security interests or other charges in Property other than the Collateral granted to the issuer of an Alternative Credit Facility to secure the Company’s obligations to such issuer
with respect to the Alternative Credit Facility; 
  
 (q) liens, pledges, mortgages and security interests on assets (other than the Collateral) of the Company and its Subsidiaries to secure indebtedness permitted by Section 7.16(y) hereof; 
  
 (r) liens of Agricultural Production Credit Association on
equity interests in Agricultural Production Credit Association, liens of Agriland, FCS on equity interests in Agriland, FCS, and liens of any other farm credit institution in its equity interests purchased from time to time by the Company;

  
 (s) liens, pledges, mortgages and security
interests on assets (other than the Collateral) of the Company and its Subsidiaries to secure Hedging Liabilities; 
  
 (t) liens, pledges, mortgages and security interests on assets (other than the Collateral) of the Company and its Subsidiaries,
provided such liens, pledges, mortgages and security interests are permitted under the terms of the indebtedness described in Section 7.16(u); 
  
 (u) liens, pledges, mortgages and security interests on assets (other than the Collateral) of the Company to secure indebtedness permitted
by Section 7.16(l) hereof; 
  
 (v) liens,
pledges, mortgages and security interests on assets (other than the Collateral) of the Company to secure indebtedness permitted by Section 7.16(g) hereof; and 
  

(w) liens securing indebtedness of Subsidiaries so long as the liens are in favor of the Company or another Subsidiary. 
  

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 Section 7.16. Borrowings and Guaranties. The Company will not, and will not permit any
Subsidiary to, issue, incur, assume, create or have outstanding any indebtedness for borrowed money (including as such all indebtedness representing the deferred purchase price of Property) or customer advances, nor be or remain liable, whether as
endorser, surety, guarantor or otherwise (other than such obligations under undrawn surety bonds, undrawn letters of credit and related reimbursement obligations incurred in the ordinary course of business), for or in respect of any liability or
indebtedness of any other Person, other than: 
  
 (a) indebtedness of the Company arising under or pursuant to this Agreement or the other Loan Documents; 
  
 (b) the liability of the Company arising out of the endorsement for deposit or collection of commercial paper received in the ordinary
course of business; 
  
 (c) trade payables of the
Company arising in the ordinary course of the Company’s business; 
  
 (d) indebtedness disclosed on Schedule 7.16; 
  
 (e) Subordinated Debt evidenced by the Company’s senior subordinated unsecured notes due 2013 in an aggregate principal amount not to exceed $100,000,000; 
  
 (f) indebtedness in an aggregate principal amount of up to
the sum of 75% of each Foreign Subsidiary’s working capital plus $20,000,000; 
  
 (g) Debt arising from sale/leaseback transactions permitted by Section 7.29 hereof and under Capitalized Lease Obligations; 
  
 (h) indebtedness of any Foreign Subsidiary to any other
Foreign Subsidiary; 
  
 (i) loans in an aggregate
principal amount of up to $900,000 against the cash surrender value of the life insurance policy maintained on the life of Mr. Lonnie A. Pilgrim; 
  
 (j) Funded Debt incurred to finance capital expenditures;  
  
 (k) in addition to the indebtedness permitted by Section 7.16(f) hereof, unsecured indebtedness of the
Company or its Foreign Subsidiaries in an aggregate principal amount not to exceed $20,000,000 outstanding at any time; 
  
 (l) indebtedness in an aggregate principal amount not to exceed $185,000,000 owed to John Hancock Mutual Life Insurance Company, ING
Capital LLC and the other purchasers named in that certain Fourth Amended and Restated Note Purchase Agreement dated November 18, 2003 (as amended, modified and restated from time to time), that is outstanding on the date of this Agreement and any
indebtedness incurred to refinance such indebtedness; provided such refinancing does not exceed the greater of the original principal amount of the indebtedness being refinanced and 75% of the appraised value of the collateral securing such
indebtedness; 
  

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 (m) indebtedness of the Company and its Subsidiaries pursuant to Receivables
Securitization Programs; 
  
 (n) indebtedness of
PPAHC in an aggregate principal amount not to exceed $5,000,000 incurred to finance the construction by PPAHC of multi-family residences in Camp County, Texas, and any indebtedness incurred to refinance such indebtedness; 
  
 (o) indebtedness of the Company under its guaranty of
payment of PPAHC’s indebtedness described in subsection (n) above and its environmental indemnity in connection with PPAHC’s indebtedness described in subsection (n) above; 
  
 (p) indebtedness outstanding on the date of this Agreement of the Company and its Subsidiaries relating to
industrial revenue bonds issued for the benefit of the Company or any of its Subsidiaries, including without limitation the Bonds, the Bond L/C and any Alternative Credit Facility; 
  
 (q) unsecured indebtedness of the Company evidenced by its senior unsecured notes due September 2011 in an
original aggregate principal amount not to exceed $303,500,000 (and any replacements, exchanges, renewals, refinancings, extensions or amendments thereof so long as the principal amount of such indebtedness does not exceed the principal amount of
the indebtedness so replaced, exchanged, renewed, refinanced or extended plus all accrued interest thereon and the amount of all customary expenses and premiums incurred in connection therewith); 
  
 (r) additional unsecured indebtedness of the Company in an
original aggregate principal amount not to exceed $100,000,000 evidenced by additional senior unsecured notes of the Company (and any replacements, exchanges, renewals, refinancings, extensions or amendments thereof so long as the principal amount
of such indebtedness does not exceed the principal amount of the indebtedness so replaced, exchanged, renewed, refinanced or extended plus all accrued interest thereon and the amount of all customary expenses and premiums incurred in connection
therewith); 
  
 (s) indebtedness of any
Subsidiary to any other Subsidiary or, to the extent permitted by Section 7.17 hereof, to the Company and unsecured indebtedness of the Company to any Subsidiary, provided that any such indebtedness of the Company is expressly subordinated to
the prior payment in full in cash of all of the Company’s indebtedness, obligations and liabilities to the Agent and the Banks under this Agreement and the other Loan Documents; 
  
 (t) guarantees by any Subsidiary of the indebtedness of the Company permitted under subsections (e), (l),
(q), (r), (u) and (x) of this Section 7.16; provided that such Subsidiary guarantees all of the Company’s indebtedness, obligations and liabilities to the Agent and the Banks under this Agreement and the other Loan Documents; 

 

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 provided further that the indebtedness of the Company under subsections (e) and (x) are
subordinated pursuant to written subordination provisions satisfactory in form and substance to the Required Banks or on substantially the same terms as the Senior Subordinated Indenture; 
  
 (u) senior secured indebtedness of the Company under credit
facilities agented by CoBank, ACB or other lenders in an aggregate principal amount not to exceed the greater of (i) $500,000,000, or (ii) 75% of the appraised value of the assets of the Company and its Subsidiaries incurred to finance the expansion
of the Company’s production and processing facilities, fixture acquisitions, repayment of existing indebtedness and for general corporate purposes; 
  
 (v) Hedging Liabilities; 
  
 (w) additional secured and unsecured indebtedness of the Company and its Subsidiaries in an aggregate principal amount not to exceed
$100,000,000; 
  
 (x) Subordinated Debt maturing
no earlier than the Termination Date (and any replacements, exchanges, renewals, refinancings, extensions or amendments thereof so long as the principal amount of such indebtedness does not exceed the principal amount of the indebtedness so
replaced, exchanged, renewed, refinanced or extended plus all accrued interest thereon and the amount of all customary expenses and premiums incurred in connection therewith); and 
  
 (y) indebtedness of the Company and its Subsidiaries relating to the Intercompany Bonds.

  
 Section 7.17. Investments, Loans and Advances.
The Company will not, and will not permit any Subsidiary to, make or retain any investment (whether through the purchase of stock, obligations or otherwise) in or make any loan or advance to, any other Person, other than: 
  
 (a) investments in certificates of deposit having a maturity
of one year or less issued by any United States commercial bank having capital and surplus of not less than $50,000,000; 
  
 (b) investments in an aggregate amount of up to $8,000,000 in deposits maintained with the Pilgrim Bank of Pittsburg; 
  
 (c) investments in commercial paper rated P1 by Moody’s
or A1 by S&P maturing within 180 days of the date of issuance thereof; 
  
 (d) marketable obligations of the United States; 
  
 (e) marketable obligations guaranteed by or insured by the United States, or those for which the full faith and credit of the United
States is pledged for the repayment of principal and interest thereof; provided that such obligations have a final maturity of no more than one year from the date acquired by the Company; 
  

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 (f) repurchase, reverse repurchase agreements and security lending agreements
collateralized by securities of the type described in subsection (c) and having a term of no more than 90 days, provided, however, that the Company shall hold (individually or through an agent) all securities relating thereto during the
entire term of such arrangement; 
  
 (g)
banker’s acceptances maturing within one year issued by any bank or trust company organized under the laws of the United States or any state thereof and having capital, surplus and undivided profits of at least $50,000,000; 
  
 (h) Eurodollar time deposits maturing within six months
purchased directly from a bank meeting the requirements of Section 7.17(a); 
  
 (i) direct obligations issued by any state of the United States or any political subdivision of any such state or public instrumentality thereof maturing within one year and having at the time of acquisition, the
highest rating obtainable from either S&P or Moody’s; 
  
 (j) loans, investments (excluding retained earnings) and advances by the Company to its Mexican Subsidiaries in an aggregate outstanding amount not to exceed $145,000,000 at any time, provided, however, that
the Company may make loans, investments (excluding retained earnings) and advances to its Mexican Subsidiaries in an aggregate amount equal to the aggregate amount of any capital withdrawn from its Mexican Subsidiaries after the date hereof but not
to exceed an aggregate amount of $25,000,000 in any Fiscal Year of the Company, provided further that any such investments (excluding retained earnings), loans and advances shall not cause the aggregate outstanding amount of all such loans,
investments (excluding retained earnings) and advances to exceed $145,000,000 at any time; 
  
 (k) loans and advances to employees (other than executive officers and directors of the Company) for reasonable expenses incurred in the
ordinary course of business; 
  
 (l) loans and
advances from any Subsidiary to any another Subsidiary or to the Company and unsecured indebtedness of the Company to any Subsidiary; 
  
 (m) investments in an aggregate amount not to exceed $5,000,000 in Southern Hens, Inc.; 
  
 (n) investments in and loans and advances to each of PPC
Delaware Business Trust, Pilgrim’s Pride International, Inc. and PPC Marketing, Ltd. in an aggregate amount not to exceed $1,000,000 for each such entity; 
  

 -49- 

 (o) an initial capital contribution to Funding Corp. in an amount of up to $1,000 and
investments, if any, arising from the sale of Receivables pursuant to Receivables Securitization Programs; 
  
 (p) loans and advances to officers and employees of the Company and its Subsidiaries made in connection with such officer’s and
employee’s for housing related expenses or loans associated with the procurement or sale of personal residences or necessary for the moving of key personnel, in an aggregate outstanding amount not to exceed $3,000,000 at any time; 

 
 (q) loans and advances to, and investments in,
Subsidiaries (other than Mexican Subsidiaries) in any Fiscal Year in an aggregate amount (net of the amount of any repayments of such loans and advances and amounts of any capital investments returned to the Company during such Fiscal Year) which,
together with the aggregate amount of investments permitted by Section 7.27 hereof, does not exceed 5% of the Total Assets of the Company and its Subsidiaries; 
  

(r) investments permitted by Section 7.6; 
  
 (s) investments made prior to the date hereof in Persons, which are not Subsidiaries, identified on Exhibit K hereto; 
  
 (t) investments existing on the date of this Agreement in
Subsidiaries listed on Exhibit H; 
  
 (u)
investments in mutual funds that invest not less than 95% of their assets in cash and Cash Equivalents or investments of the kinds described in subsections (a) through (i) above; 
  
 (v) investments existing on the date of this Agreement in industrial revenue bonds issued for the benefit of
the Company and its Subsidiaries; 
  
 (w)
investments in marketable corporate bonds that have a long-term senior unsecured debt rating of not less than BBB by Moody’s and not less than Baa3 by S&P; 
  
 (x) loans and advances to employees and contract growers (other than executive officers and directors of the
Company) in an aggregate amount not to exceed $25,000,000 at any time; 
  
 (y) investments in Intercompany Bonds; and 
  
 (z) investments not otherwise permitted by this Section 7.17 in an amount not to exceed at any time an aggregate of $50,000,000. 
  

Section 7.18. Sale of Property. The Company will not, and will not permit any Subsidiary to, sell, lease, assign, transfer or otherwise
dispose of (whether in one transaction or in a series of transactions) all or a material part of its Property to any other Person in any Fiscal Year of the Company; provided, however, that this Section shall not prohibit: 
  
 (a) sales of Inventory by the Company or any Subsidiary in
the ordinary course of business, including any sales of Inventory by the Company to the Distribution Subsidiary in the ordinary course of business; 
  

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 (b) sales or leases by the Company or any Subsidiary of its surplus, obsolete or worn-out
machinery and equipment; 
  
 (c) the sale by the
Company or any Subsidiary of all or substantially all of its Receivables pursuant to Receivables Securitization Programs; 
  
 (d) transfers of assets from any Subsidiary to any other Subsidiary or to the Company; 
  
 (e) the sale of the Turkey Business Assets; 
  
 (f) the transfer by the Company of the Distribution Business
to the Distribution Subsidiary; 
  
 (g) the
transfer by the Company to Pilgrim’s Pride Corporation of West Virginia, Inc. of the Company’s facility, and related assets, located in Moorefield, West Virginia; 
  
 (h) the transfer by the Company to a Subsidiary of trademarks, trademark registrations, trademark licenses,
trade styles and trade names of the Company or a Subsidiary existing on the date of this Agreement; 
  
 (i) the transfer by the Company to a Subsidiary of its motor vehicles and trailers licensed for over-the-road transportation and lease
agreements relating to such motor vehicles and trailers having an aggregate net book value of not to exceed $25,000,000; and 
  
 (j) investments in Subsidiaries permitted by Sections 7.17(j) and (q). 
  
 For purposes of this Section 7.18, “material part” shall mean 5% or more of the lesser of the book or fair market value of
the Property of the Company. The Banks hereby agree to release and authorize and direct the Agent (i) to release its security interest in any Collateral that constitutes a part of the Distribution Business effective upon each transfer of such
Distribution Business (or portion thereof) to the Distribution Subsidiary, (ii) to release its security interest in any Collateral that is part of the Company’s operations at its Moorefield, West Virginia facilities upon its transfer to
Pilgrim’s Pride Corporation of West Virginia, Inc., and (iii) to release its security interest in any Collateral that constitutes trademarks, trademark registrations, trademark licenses, trade styles and trade names of the Company upon its
transfer to a Subsidiary. 
  

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 Section 7.19. Notice of Suit, Adverse Change in Business or Default. The Company shall, as
soon as possible, and in any event within fifteen (15) days after the Company learns of the following, give written notice to the Banks of (a) any proceeding(s) that, if determined adversely to the Company or any Subsidiary could reasonably be
expected to have a material adverse effect on the Properties, business or operations of the Company and its Subsidiaries, taken as a whole, being instituted or threatened to be instituted by or against the Company or such Subsidiary in any federal,
state, local or foreign court or before any commission or other regulatory body (federal, state, local or foreign); (b) any material adverse change in the business, Property or condition, financial or otherwise, of the Company and its Subsidiaries,
taken as a whole; and (c) the occurrence of a Potential Default or Event of Default. 
  
 Section 7.20. ERISA. The Company will, and will cause each Subsidiary to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed
might result in the imposition of a lien against any of its Property and will promptly notify the Agent of (a) the occurrence of any reportable event (as defined in ERISA) which could reasonably be expected to result in the termination by the PBGC
of any Plan covering any officers or employees of the Company or any Subsidiary any benefits of which are, or are required to be, guaranteed by PBGC, (b) receipt of any notice from PBGC of its intention to seek termination of any Plan or appointment
of a trustee therefor, and (c) its intention to terminate or withdraw from any Plan. The Company will not, and will not permit any Subsidiary to, terminate any Plan or withdraw therefrom unless it shall be in compliance with all of the terms and
conditions of this Agreement after giving effect to any liability to PBGC resulting from such termination or withdrawal. 
  
 Section 7.21. Use of Loan Proceeds. The Company will use the proceeds of all Loans and L/Cs made or issued hereunder solely to refinance
existing Debt and for general corporate purposes (excluding financing all or any part of the consideration payable by the Company or any Subsidiary in hostile acquisitions). 
  
 Section 7.22. Conduct of Business and Maintenance of Existence. The Company will not, and will not permit any
Subsidiary to, directly or indirectly engage in any material respect in any business other than businesses engaged in by the Company on the date hereof other operations or activities in the poultry industry and in the processing, packaging,
distribution and wholesales of poultry products and other business or activities substantially similar or related thereto. The Company will, and will cause each Subsidiary to, preserve, renew and keep in full force and effect the Company’s
corporate existence and the Company’s and each Subsidiary’s rights, privileges and franchises necessary or desirable in the normal conduct of business; except where the failure to preserve, renew and keep in full force and effect such
rights, privileges and licenses could not reasonably be expected to have a material adverse effect on the business, operations, Property or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole; and except that the
foregoing shall not prohibit the sale of the Turkey Business Assets. 
  
 Section 7.23. Additional Information. Upon request of the Agent, the Company shall provide any reasonable additional information pertaining to any of the Collateral. 
  

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 Section 7.24. Supplemental Performance. The Company will at its own expense, register,
file, record and execute all such further agreements and documents, including without limitation financing statements, and perform such acts as are necessary and appropriate, or as the Agent or any Bank may reasonably request, to effect the purposes
of the Loan Documents. 
  
 Section 7.25. Compliance with Laws,
etc. The Company will, and will cause each of its Subsidiaries to, comply in all material respects with all applicable laws, rules, regulations and orders, such compliance to include (without limitation) (a) in the case of the Company, the
maintenance and preservation of its corporate existence, (b) qualification as a foreign corporation wherein the nature of its activities requires such qualification except where the failure to be so qualified would not have a material adverse effect
on the business, operations, Property or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, (c) the registration pursuant to the Food Security Act of 1985, as amended, with the Secretary of State of each State
in which are produced any farm products purchased by the Company and which has established a central filing system, as a buyer of farm products produced in such state, and the maintenance of each such registration, (d) compliance with the Packers
and Stockyard Act of 1921, as amended, (e) compliance with all applicable rules and regulations promulgated by the United States Department of Agriculture and all similar applicable state rules and regulations, and (f) compliance with all rules and
regulations promulgated pursuant to the Occupational Safety and Health Act of 1970, as amended; provided that the failure of the Company to comply with this Section 7.25 in any instance not directly involving the Agent and the Banks or
adversely affecting the Agent’s security interest in the Collateral shall not constitute an Event of Default unless such failure would have a material adverse effect on the business, operations, Property or condition (financial or otherwise) of
the Company and its Subsidiaries, taken as a whole. 
  
 Section
7.26. Environmental Covenant. The Company will, and will cause each of its Subsidiaries to: 
  
 (a) use and operate all of its facilities and Properties in material compliance with all Environmental Laws, keep all necessary permits,
approvals, certificates, licenses and other authorizations relating to environmental matters in effect and remain in material compliance therewith, and handle all hazardous materials in material compliance with all applicable Environmental Laws;

  
 (b) immediately notify the Agent and provide
copies upon receipt of all material written claims, complaints, notices or inquiries relating to the condition of its facilities and Property or compliance with Environmental Laws, and shall promptly cure and have dismissed, to the reasonable
satisfaction of the Required Banks, any actions and proceedings relating to compliance with Environmental Laws unless and to the extent that the same are being contested in good faith and by appropriate proceedings diligently conducted and for which
adequate reserves in form and amount reasonably satisfactory to the Required Banks have been established, provided that no proceedings to foreclose any lien which is attached as security therefor shall have been commenced unless such foreclosure is
stayed by the filing of an appropriate bond in a manner satisfactory to the Required Banks; and 
  

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 (c) provide such information and certifications which the Agent may reasonably request
from time to time to evidence compliance with this Section 7.26. 
  
 Section 7.27. New Subsidiaries. The Company will not, directly or indirectly, create or acquire in any Fiscal Year any Subsidiary unless (a) after giving effect to any such creation or acquisition, the total assets (determined in
accordance with generally accepted accounting principles, consistently applied) of all such new Subsidiaries in such Fiscal Year which, together with the aggregate amount of loans, advances and investments permitted by Section 7.17(q) hereof (net of
the amount of any repayment of such loans and advances and amounts of any capital investment returned to the Company during such Fiscal Year), would not exceed 5% of the Total Assets of the Company and its Subsidiaries, and (b) at the Company’s
option either (i) all Inventory of such Subsidiaries (other than any such Subsidiaries that are organized under the laws of any jurisdiction other than the United States of America, any State, the District of Columbia or Puerto Rico) are pledged to
the Agent for the benefit of the Banks pursuant to a security agreement substantially identical to the Security Agreement, or (ii) to the extent not pledged pursuant to clause (i), the Company will cause such Subsidiary not to pledge, mortgage or
otherwise encumber or subject to or permit to exist upon or be subject to any lien, charge or security interest of any kind on any of such Subsidiary’s Inventory other than liens permitted by Section 7.15 hereof.  
  
 Section 7.28. Guaranty Fees. The Company will not, and it will not
permit any Subsidiary to, directly or indirectly, pay to the Guarantor or any other guarantor of any of the Company’s indebtedness, obligations and liabilities, any fee or other compensation, but excluding salary, bonus and other compensation
for services rendered as an employee (collectively the “Guaranty Fees”) in an aggregate amount in excess of $10,000,000 in any Fiscal Year of the Company. For purposes of this Section 7.30, any Guaranty Fees paid within 45 days
after the last day of any Fiscal Year shall be deemed to have been paid during such Fiscal Year. 
  
 Section 7.29. Sale and Leasebacks. The Company will not, and will not permit any Subsidiary to, enter into any arrangement with any lender or
investor providing for the leasing by the Company or any Subsidiary of any real or personal property previously owned by the Company or any Subsidiary, except: such transactions in which the aggregate consideration received by the Company upon the
sale of such property does not exceed $25,000,000 in any Fiscal Year, provided that the Company shall apply 100% of the cash proceeds, net of reasonable direct costs relating to such transaction and sale, use or other transactional taxes paid
or payable as a direct result of such transaction, to the payment of outstanding Debt concurrently upon the Company’s receipt of such proceeds. 
  
 Section 7.30. Amendments to Subordinated Debt Documents. The Company shall not alter, amend or modify any subordination provision of any
Subordinated Debt in a manner adverse to the interests of the Banks without the prior written consent of the Required Banks. 
  

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 SECTION 8. EVENTS OF DEFAULT AND
REMEDIES. 
  
 Section 8.1. Definitions. Any
one or more of the following shall constitute an Event of Default: 
  
 (a) Default in the payment when due of any interest on or principal of any Note, Bond Reimbursement Obligation or Reimbursement Obligation, whether at the stated maturity thereof or as required by Section 3.4 hereof
or at any other time provided in this Agreement, or of any fee or other amount payable by the Company pursuant to this Agreement; 
  
 (b) Default in the observance or performance of any covenant set forth in Sections 7.4, 7.5, 7.6, 7.15, 7.16, 7.18 and 7.19, inclusive,
hereof, or of any provision of any Security Document requiring the maintenance of insurance on the Collateral subject thereto or dealing with the use or remittance of proceeds of such Collateral; 
  
 (c) Default in the observance or performance of any covenant
set forth in Sections 7.7, 7.8, 7.9, 7.10, 7.11, 7.12, 7.13, 7.15, 7.17, 7.20, and 7.22, inclusive, hereof and such default shall continue for 15 days after written notice thereof to the Company by any Bank; 
  
 (d) Default in the observance or performance of any other
covenant, condition, agreement or provision hereof or any of the other Loan Documents and such default shall continue for 30 days after written notice thereof to the Company by any Bank; 
  
 (e) Default shall occur under any evidence of indebtedness in a principal amount exceeding $20,000,000
issued or assumed or guaranteed by the Company, or under any mortgage, agreement or other similar instrument under which the same may be issued or secured and such default shall continue for a period of time sufficient to permit the acceleration of
maturity of any indebtedness evidenced thereby or outstanding or secured thereunder; 
  
 (f) Any representation or warranty made by the Company herein or in any Loan Document or in any statement or certificate furnished by it
pursuant hereto or thereto, proves untrue in any material respect as of the date made or deemed made pursuant to the terms hereof; 
  
 (g) Any judgment or judgments, writ or writs, or warrant or warrants of attachment, or any similar process or processes in an aggregate
amount in excess of $20,000,000 shall be entered or filed against the Company or any Subsidiary or against any of their respective Property or assets and remain unbonded, unstayed and undischarged for a period of 30 days from the date of its entry;

  

 -55- 

 (h) Any reportable event (as defined in ERISA) which constitutes grounds for the
termination of any Plan or for the appointment by the appropriate United States District Court of a trustee to administer or liquidate any such Plan, shall have occurred and such reportable event shall be continuing thirty (30) days after written
notice to such effect shall have been given to the Company by any Bank; or any such Plan shall be terminated; or a trustee shall be appointed by the appropriate United States District Court to administer any such Plan; or the Pension Benefit
Guaranty Corporation shall institute proceedings to administer or terminate any such Plan; 
  
 (i) The Company or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the Bankruptcy Code of 1978,
as amended, (ii) admit in writing its inability to pay, or not pay, its debts generally as they become due or suspend payment of its obligations, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or acquiesce
in, the appointment of a receiver, custodian, trustee, conservator, liquidator or similar official for it or any substantial part of its property, (v) file a petition seeking relief or institute any proceeding seeking to have entered against it an
order for relief under the Bankruptcy Code of 1978, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, marshalling of assets, adjustment or composition of it or its debts under any
law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, or (vi) fail to contest in good faith any appointment
or proceeding described in Section 8.1(j) hereof; 
  
 (j) A custodian, receiver, trustee, conservator, liquidator or similar official shall be appointed for the Company, any Subsidiary or any substantial part of its respective Property, or a proceeding described in Section 8.1(i)(v) shall be
instituted against the Company or any Subsidiary and such appointment continues undischarged or any such proceeding continues undismissed or unstayed for a period of 90 days; 
  
 (k) The existence of an “Event of Default” as defined in the Security Agreement;

  
 (l) Any shares of the capital stock of the
Company owned legally or beneficially by the Guarantor or Mr. And/or Mrs. Lonnie A. Pilgrim shall be pledged, assigned or otherwise encumbered for any reason, other than the pledge of up to 4,000,000 shares (as adjusted for any increase or decrease
in the number of issued shares of the Company resulting from a subdivision or consolidation of shares or the payment of a stock dividend or any other increase or decrease in the number of such shares effected without receipt or payment of
consideration by the Company) to secure personal obligations of Mr. And Mrs. Lonnie A. Pilgrim or such other personal obligations incurred by any Person so long as such obligations are not related to the financing of the Company of any of its
Subsidiaries; 
  

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 (m) the Guarantor shall terminate, breach, repudiate or disavow the Partnership Guaranty
or any part thereof, or any event specified in Sections 8.1(i) or (j) shall occur with regard to the Guarantor; 
  
 (n) The occurrence of a Change in Control; or 
  
 (o) The existence of any condition or the occurrence of any event specified as an “Event of Default” under the Reimbursement
Agreement. 
  
 Section 8.2. Remedies for Non-Bankruptcy
Defaults. When any Event of Default, other than an Event of Default described in subsections (i) and (j) of Section 8.1 hereof, has occurred and is continuing, the Agent, if directed by the Required Banks, shall give notice to the Company and
take any or all of the following actions: (a) terminate the remaining Revolving Credit Commitments and the Bond L/C Commitment, if any, hereunder on the date (which may be the date thereof) stated in such notice, (b) declare the principal of and the
accrued interest on the Notes, unpaid Bond Reimbursement Obligations and unpaid Reimbursement Obligations to be forthwith due and payable and thereupon the Notes, unpaid Bond Reimbursement Obligations and unpaid Reimbursement Obligations including
both principal and interest, shall be and become immediately due and payable without further demand, presentment, protest or notice of any kind, and (c) proceed to foreclose against any Collateral under any of the Security Documents, take any action
or exercise any remedy under any of the Loan Documents or exercise any other action, right, power or remedy permitted by law. Any Bank may exercise the right of set off with regard to any deposit accounts or other accounts maintained by the Company
with any of the Banks. 
  
 Section 8.3. Remedies for Bankruptcy
Defaults. When any Event of Default described in subsections (i) or (j) of Section 8.1 hereof has occurred and is continuing, then the Notes, unpaid Bond Reimbursement Obligations and all Reimbursement Obligations shall immediately become due
and payable without presentment, demand, protest or notice of any kind, and the obligation of the Banks to extend further credit pursuant to any of the terms hereof shall immediately terminate. 
  
 Section 8.4. L/Cs. Promptly following the acceleration of the maturity
of the Notes pursuant to Section 8.2 or 8.3 hereof, the Company shall immediately pay to the Agent for the benefit of the Banks the full aggregate amount of all outstanding L/Cs and the Bond L/C. The Agent shall hold all such funds and proceeds
thereof as additional collateral security for the obligations of the Company to the Banks under the Loan Documents. The amount paid under any of the L/Cs or the Bond L/C for which the Company has not reimbursed the Banks shall bear interest from the
date of such payment at the default rate of interest specified in Section 1.3(c) hereof. 
  
 Section 8.5. Remedies under the Bond Documents. In addition to the foregoing, Harris shall have all of the remedies provided to Harris in the Bond Documents upon the occurrence of an Event of Default.

  

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 SECTION 9. CHANGE IN CIRCUMSTANCES REGARDING
FIXED RATE LOANS. 
  
 Section 9.1. Change of Law. Notwithstanding any other provisions of this Agreement or any Note to the contrary, if at any time after the date hereof with respect to Fixed Rate Loans, any Bank shall determine in good faith that any
change in applicable law or regulation or in the interpretation thereof makes it unlawful for such Bank to make or continue to maintain any Fixed Rate Loan or to give effect to its obligations as contemplated hereby, such Bank shall promptly give
notice thereof to the Company to such effect, and such Bank’s obligation to make, relend, continue or convert any such affected Fixed Rate Loans under this Agreement shall terminate until it is no longer unlawful for such Bank to make or
maintain such affected Loan. The Company shall prepay the outstanding principal amount of any such affected Fixed Rate Loan made to it, together with all interest accrued thereon and all other amounts due and payable to the Banks under Section 9.4
of this Agreement, on the earlier of the last day of the Interest Period applicable thereto and the first day on which it is illegal for such Bank to have such Loans outstanding; provided, however, the Company may then elect to borrow the principal
amount of such affected Loan by means of another type of Loan available hereunder, subject to all of the terms and conditions of this Agreement. 
  
 Section 9.2. Unavailability of Deposits or Inability to Ascertain the Adjusted Eurodollar Rate. Notwithstanding any other provision of this
Agreement or any Note to the contrary, if prior to the commencement of any Interest Period any Bank shall determine (a) that deposits in the amount of any Fixed Rate Loan scheduled to be outstanding are not available to it in the relevant market or
(b) by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Adjusted Eurodollar Rate, then such Bank shall promptly give telephonic or telex notice thereof to the Company, the Agent
and the other Banks (such notice to be confirmed in writing), and the obligation of the Banks to make, continue or convert any such Fixed Rate Loan in such amount and for such Interest Period shall terminate until deposits in such amount and for the
Interest Period selected by the Company shall again be readily available in the relevant market and adequate and reasonable means exist for ascertaining the Adjusted Eurodollar Rate. Upon the giving of such notice, the Company may elect to either
(i) pay or prepay, as the case may be, such affected Loan or (ii) reborrow such affected Loan as another type of Loan available hereunder, subject to all terms and conditions of this Agreement. 
  
 Section 9.3. Taxes and Increased Costs. With respect to the Fixed Rate
Loans, if any Bank shall determine in good faith that any change in any applicable law, treaty, regulation or guideline (including, without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or any new law, treaty,
regulation or guideline, or any interpretation of any of the foregoing by any governmental authority charged with the administration thereof or any central bank or other fiscal, monetary or other authority having jurisdiction over such Bank or its
lending branch or the Fixed Rate Loans contemplated by this Agreement (whether or not having the force of law) (“Change in Law”) shall: 
  
 (a) impose, modify or deem applicable any reserve, special deposit or similar requirements against assets held by, or deposits in or for
the account of, or Loans by, or any other acquisition of funds or disbursements by, such Bank (other than reserves included in the determination of the Adjusted Eurodollar Rate); 
  

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 (b) subject such Bank, any Fixed Rate Loan or any Note to any tax (including, without
limitation, any United States interest equalization tax or similar tax however named applicable to the acquisition or holding of debt obligations and any interest or penalties with respect thereto), duty, charge, stamp tax, fee, deduction or
withholding in respect of this Agreement, any Fixed Rate Loan or any Note except such taxes as may be measured by the overall net income of such Bank or its lending branch and imposed by the jurisdiction, or any political subdivision or taxing
authority thereof, in which such Bank’s principal executive office or its lending branch is located; 
  
 (c) change the basis of taxation of payments of principal and interest due from the Company to such Bank hereunder or under any Note
(other than by a change in taxation of the overall net income of such Bank); or 
  
 (d) impose on such Bank any penalty with respect to the foregoing or any other condition regarding this Agreement, any Fixed Rate Loan or
any Note; 
  
 and such Bank shall determine that the result of any of the
foregoing is to increase the cost (whether by incurring a cost or adding to a cost) to such Bank of making or maintaining any Fixed Rate Loan hereunder or to reduce the amount of principal or interest received by such Bank, then the Company shall
pay to such Bank from time to time as specified by such Bank such additional amounts as such Bank shall reasonably determine are sufficient to compensate and indemnify it for such increased cost or reduced amount. If any Bank makes such a claim for
compensation, it shall provide to the Company a certificate setting forth such increased cost or reduced amount as a result of any event mentioned herein specifying such Change in Law, and such certificate shall be conclusive and binding on the
Company as to the amount thereof except in the case of manifest error. Upon the imposition of any such cost, the Company may prepay any affected Loan, subject to the provisions of Sections 3.3 and 9.4 hereof. 
  
 Section 9.4. Funding Indemnity. (a) In the event any Bank shall incur
any loss, cost, expense or premium (including, without limitation, any loss of profit and any loss, cost, expense or premium incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Bank to fund or maintain
any Fixed Rate Loan or the relending or reinvesting of such deposits or amounts paid or prepaid to such Bank) as a result of: 
  
 (i) any payment or prepayment of a Fixed Rate Loan on a date other than the last day of the then applicable Interest Period; 

 
 (ii) any failure by the Company to borrow, continue or
convert any Fixed Rate Loan on the date specified in the notice given pursuant to Section 1.7 hereof; or 
  
 (iii) the occurrence of any Event of Default; 
  

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 then, upon the demand of such Bank, the Company shall pay to such Bank such amount as will reimburse such Bank for such
loss, cost or expense. 
  
 (b) If any Bank makes a claim for
compensation under this Section 9.4, it shall provide to the Company a certificate setting forth the amount of such loss, cost or expense in reasonable detail and such certificate shall be conclusive and binding on the Company as to the amount
thereof except in the case of manifest error. 
  
 Section 9.5.
Lending Branch. Each Bank may, at its option, elect to make, fund or maintain its Eurodollar Loans hereunder at the branch or office specified opposite its signature on the signature page hereof or such other of its branches or offices as such
Bank may from time to time elect, subject to the provisions of Section 1.7(b) hereof. 
  
 Section 9.6. Discretion of Bank as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, each Bank shall be entitled to fund and maintain its funding of all or any part of its
Loans in any manner it sees fit, it being understood however, that for the purposes of this Agreement all determinations hereunder shall be made as if the Banks had actually funded and maintained each Fixed Rate Loan during each Interest Period for
such Loan through the purchase of deposits in the relevant interbank market having a maturity corresponding to such Interest Period and bearing an interest rate equal to the Adjusted Eurodollar Rate for such Interest Period. 
  
 SECTION 10. THE AGENT. 
  
 Section 10.1. Appointment and Powers. Harris Trust and Savings Bank
is hereby appointed by the Banks as Agent under the Loan Documents, including but not limited to the Security Agreement, wherein the Agent shall hold a security interest for the benefit of the Banks, solely as the Agent of the Banks, and each of the
Banks irrevocably authorizes the Agent to act as the Agent of such Bank. The Agent agrees to act as such upon the express conditions contained in this Agreement. The Banks expressly agree that the Agent is not acting as a fiduciary of the Banks in
respect of the Loan Documents, the Company or otherwise, and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Agent or any of the Banks except as expressly set forth herein 
  
 Section 10.2. Powers. The Agent shall have and may exercise such
powers hereunder as are specifically delegated to the Agent by the terms of the Loan Documents, together with such powers as are incidental thereto. The Agent shall have no implied duties to the Banks, nor any obligation to the Banks to take any
action under the Loan Documents except any action specifically provided by the Loan Documents to be taken by the Agent. 
  
 Section 10.3. General Immunity. Neither the Agent nor any of its directors, officers, agents or employees shall be liable to the Banks or any Bank
for any action taken or omitted to be taken by it or them under the Loan Documents or in connection therewith except for its or their own gross negligence or willful misconduct. 
  

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 Section 10.4. No Responsibility for Loans, Recitals, etc. The Agent shall not (a) be responsible
to the Banks for any recitals, reports, statements, warranties or representations contained in the Loan Documents or furnished pursuant thereto, (b) be responsible for the payment or collection of or security for any Loans, Bond Reimbursement
Obligations or Reimbursement Obligations hereunder except with money actually received by the Agent for such payment, (c) be bound to ascertain or inquire as to the performance or observance of any of the terms of the Loan Documents, or (d) be
obligated to determine or verify the existence, eligibility or value of any Collateral, or the correctness of any Borrowing Base Certificate or compliance certificate. In addition, neither the Agent nor its counsel shall be responsible to the Banks
for the enforceability or validity of any of the Loan Documents or for the existence, creation, attachment, perfection or priority of any security interest in the Collateral. 
  
 Section 10.5. Right to Indemnity. The Banks hereby indemnify the Agent for any actions taken in accordance with this
Section 10, and the Agent shall be fully justified in failing or refusing to take any action hereunder, unless it shall first be indemnified to its satisfaction by the Banks pro rata against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action, other than any liability which may arise out of Agent’s gross negligence or willful misconduct. 
  
 Section 10.6. Action Upon Instructions of Banks. The Agent agrees, upon the written request of the Required Banks, to
take any action of the type specified in the Loan Documents as being within the Agent’s rights, duties, powers or discretion. The Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with
written instructions signed by the Required Banks, and such instructions and any action taken or failure to act pursuant thereto shall be binding on all of the Banks and on all holders of the Notes. In the absence of a request by the Required Banks,
the Agent shall have authority, in its sole discretion, to take or not to take any action, unless the Loan Documents specifically require the consent of the Required Banks or all of the Banks. 
  
 Section 10.7. Employment of Agents and Counsel. The Agent may execute
any of its duties as Agent hereunder by or through agents (other than employees) and attorneys-in-fact and shall not be answerable to the Banks, except as to money or securities received by it or its authorized agents, for the default or misconduct
of any such agents or attorneys-in-fact selected by it in good faith and with reasonable care. The Agent shall be entitled to advice and opinion of legal counsel concerning all matters pertaining to the duties of the agency hereby created.

  
 Section 10.8. Reliance on Documents; Counsel. The Agent
shall be entitled to rely upon any Note, notice, consent, certificate, affidavit, letter, telegram, statement, paper or document believed by it to be genuine and correct and to have been signed or sent by the proper person or persons, and, in
respect to legal matters, upon the opinion of legal counsel selected by the Agent. 
  
 Section 10.9. May Treat Payee as Owner. The Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof
shall have been filed with the Agent. Any request, authority or consent of any person, firm or corporation who at the time of making such request or giving such authority or consent is the holder of any such Note shall be conclusive and binding on
any subsequent holder, transferee or assignee of such Note or of any Note issued in exchange therefore. 
  

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 Section 10.10. Agent’s Reimbursement. Each Bank agrees to reimburse the Agent pro rata in
accordance with its Commitment Percentage for any reasonable out-of-pocket expenses (including fees and charges for field audits) not reimbursed by the Company (a) for which the Agent is entitled to reimbursement by the Company under the Loan
Documents and (b) for any other reasonable out-of-pocket expenses incurred by the Agent on behalf of the Banks, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents and for which the Agent is
entitled to reimbursement by the Company and has not been reimbursed. 
  
 Section 10.11. Rights as a Lender. With respect to its commitment, Loans made by it, L/Cs issued by it and the Notes issued to it, Harris shall have the same rights and powers hereunder as any Bank and may exercise the same as though
it were not the Agent, and the term “Bank” or “Banks” shall, unless the context otherwise indicates, include Harris in its individual capacity. Harris and each of the Banks may accept deposits from, lend money to,
and generally engage in any kind of banking or trust business with the Company as if it were not the Agent or a Bank hereunder, as the case may be. 
  
 Section 10.12. Bank Credit Decision. Each Bank acknowledges that it has, independently and without reliance upon the Agent or any other Bank and
based on the financial statements referred to in Section 5.3 and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into the Loan Documents. Each Bank also acknowledges that it will,
independently and without reliance upon the Agent or any other Bank and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan
Documents. 
  
 Section 10.13. Resignation of Agent. Subject
to the appointment of a successor Agent, the Agent may resign as Agent for the Banks under this Agreement and the other Loan Documents at any time by sixty days’ notice in writing to the Banks. Such resignation shall take effect upon
appointment of such successor. The Required Banks shall have the right to appoint a successor Agent who shall be entitled to all of the rights of, and vested with the same powers as, the original Agent under the Loan Documents. In the event a
successor Agent shall not have been appointed within the sixty day period following the giving of notice by the Agent, the Agent may appoint its own successor. Resignation by the Agent shall not affect or impair the rights of the Agent under
Sections 10.5 and 10.10 hereof with respect to all matters preceding such resignation. Any successor Agent must be a Bank, a national banking association, a bank chartered in any state of the United States or a branch of any foreign bank which is
licensed to do business under the laws of any state or the United States. 
  
 Section 10.14. Duration of Agency. The agency established by Section 10.1 hereof shall continue, and Sections 10.1 through and including Section 10.14 shall remain in full force and effect, until the Notes and
all other amounts due hereunder and thereunder, including without limitation all Bond Reimbursement Obligations or Reimbursement Obligations, shall have been paid in full and the Banks’ commitments to extend credit to or for the benefit of the
Company shall have terminated or expired. 
  

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 Section 10.15. Hedging Liability Arrangements. By virtue of a Bank’s execution of this
Agreement or an assignment agreement pursuant to Section 11.16 hereof, as the case may be, any Affiliate of such Bank with whom the Company has entered into an agreement creating Hedging Liability shall be deemed a Bank party hereto for purposes of
any reference in a Loan Document to the parties for whom the Agent is acting, it being understood and agreed that the rights and benefits of such Affiliate under the Loan Documents consist exclusively of such Affiliate’s right to share in
payments and collections out of the Collateral and the Partnership Guaranty. In connection with any such distribution of payments and collections, the Agent shall be entitled to assume no amounts are due to any Bank or its Affiliate with respect to
Hedging Liability unless such Bank has notified the Agent in writing of the amount of any such liability owed to it or its Affiliate prior to such distribution. 
  

Section 10.16. Designation of Additional Agents. The Agent shall have the continuing right, for purposes hereof, at any time and from time to
time to designate one or more of the Banks (and/or its or their Affiliates) as “syndication agents,” “documentation agents,” “arrangers,” or other designations for purposes hereto, but such designation shall have no
substantive effect, and such Banks and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof. 
  
 Section 10.17. Authorization to Release or Subordinate or Limit Liens. The Agent is hereby irrevocably authorized by each of
the Banks to (a) release any Lien covering any Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and conditions of this Agreement and the Security Agreement (including a sale, transfer, or disposition
permitted by the terms of Section 7.18 hereof or which has otherwise been consented to in accordance with Section 11.1 hereof), (b) release or subordinate any lien, mortgage or security interest on Collateral consisting of goods financed with
purchase money indebtedness or under a Capitalized Lease to the extent such purchase money indebtedness or Capitalized Lease Obligation, and the lien, mortgage or security interest securing the same, are permitted by Sections 7.15(m), 7.15(v),
7.16(g) or 7.16(j) hereof, (c) reduce or limit the amount of the indebtedness secured by any particular item of Collateral to an amount not less than the estimated value thereof to the extent necessary to reduce mortgage registry, filing and similar
tax and (d) subordinate any lien, mortgage or security interest on Collateral consisting of general intangibles to the extent such general intangibles relate to real property and improvements thereto granted under mortgages and deeds of trust in
favor of, and securing the Company’s indebtedness permitted under Section 7.16 to John Hancock Mutual Life Insurance Company, ING Capital LLC and the other purchasers named in that certain Fourth Amended and Restated Note Purchase Agreement
dated November 18, 2003, as amended, modified and restated from time to time. 
  
 SECTION 11. MISCELLANEOUS. 
  
 Section 11.1. Amendments and Waivers. Any term, covenant, agreement or condition of the Loan Documents may be amended only by a written amendment executed by the Company, 
  

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 the Required Banks and, if the rights or duties of the Agent are affected thereby, the Agent, or compliance therewith
only may be waived (either generally or in a particular instance and either retroactively or prospectively), if the Company shall have obtained the consent in writing of the Required Banks and, if the rights or duties of the Agent are affected
thereby, the Agent, provided, however, that without the consent in writing of the holders of all outstanding Notes, unpaid Bond Reimbursement Obligations and unpaid Reimbursement Obligations and the issuer of any L/C or Bond L/C, or all Banks
if no Notes or L/Cs or Bond L/Cs are outstanding, no such amendment or waiver shall (a) change the amount or postpone the date of payment of any scheduled payment or required prepayment of principal of the Notes or reduce the rate or extend the time
of payment of interest on the Notes, or reduce the amount of principal thereof, or modify any of the provisions of the Notes with respect to the payment or prepayment thereof, (b) give to any Note any preference over any other Notes, (c) amend the
definition of Required Banks, (d) alter, modify or amend the provisions of this Section 11.1, (e) change the amount or term of any of the Banks’ Revolving Credit Commitments or the fees required under Section 3.1 hereof, (f) alter, modify or
amend the provisions of Sections 1.9, 6 or 9 of this Agreement, (g) alter, modify or amend any Bank’s right hereunder to consent to any action, make any request or give any notice, (h) change the advance rates under the Borrowing Base or the
definitions of “Eligible Inventory,” or (i) release any Collateral under the Security Documents or release or discharge any guarantor of the Company’s indebtedness, obligations and liabilities to the Banks, in each case, unless
such release or discharge is permitted or contemplated by the Loan Documents; provided, further that Schedule 2 may be amended by the Company and the Agent without the consent of any Bank. Any such amendment or waiver shall apply equally to
all Banks and the holders of the Notes, Bond Reimbursement Obligations and Reimbursement Obligations and shall be binding upon them, upon each future holder of any Note, Bond Reimbursement Obligation and Reimbursement Obligation and upon the
Company, whether or not such Note shall have been marked to indicate such amendment or waiver. No such amendment or waiver shall extend to or affect any obligation not expressly amended or waived; and provided further, that (x) any amendments
of the Reimbursement Agreement or the Bond Documents by Harris shall be subject to the provisions of Section 1.19 of this Agreement, and (y) Sections 1.10 through 1.19, both inclusive, of this Agreement may only be amended, modified or waived with
the consent of Harris. 
  
 Section 11.2. Waiver of Rights.
No delay or failure on the part of the Agent or any Bank or on the part of the holder or holders of any Note, Bond Reimbursement Obligation or Reimbursement Obligation in the exercise of any power or right shall operate as a waiver thereof, nor as
an acquiescence in any Potential Default or Event of Default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof, or the exercise of any other power or right, and the rights and remedies
hereunder of the Agent, the Banks and of the holder or holders of any Notes are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have. 
  
 Section 11.3. Several Obligations. The commitments of each of the Banks hereunder shall be the several obligations of
each Bank and the failure on the part of any one or more of the Banks to perform hereunder shall not affect the obligation of the other Banks hereunder, provided that nothing herein contained shall relieve any Bank from any liability for its failure
to so perform. In the event that any one or more of the Banks shall fail to perform its commitment 
  

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 hereunder, all payments thereafter received by the Agent on the principal of Loans, Bond Reimbursement Obligations and
Reimbursement Obligations hereunder, whether from any Collateral or otherwise, shall be distributed by the Agent to the Banks making such additional Loans ratably as among them in accordance with the principal amount of additional Loans made by them
until such additional Loans shall have been fully paid and satisfied. All payments on account of interest shall be applied as among all the Banks ratably in accordance with the amount of interest owing to each of the Banks as of the date of the
receipt of such interest payment. 
  
 Section 11.4.
Non-Business Day. (a) If any payment of principal or interest on any Domestic Rate Loan shall fall due on a day which is not a Business Day, interest at the rate such Loan bears for the period prior to maturity shall continue to accrue on such
principal from the stated due date thereof to and including the next succeeding Business Day on which the same is payable. 
  
 (b) If any payment of principal or interest on any Eurodollar Loan shall fall due on a day which is not a Business Day, the payment date thereof shall be
extended to the next date which is a Business Day and the Interest Period for such Loan shall be accordingly extended, unless as a result thereof any payment date would fall in the next calendar month, in which case such payment date shall be the
next preceding Business Day. 
  
 Section 11.5. Survival of
Indemnities. All indemnities and all provisions relative to reimbursement to the Banks of amounts sufficient to protect the yield to the Banks with respect to Eurodollar Loans, including, but not limited to, Sections 9.3 and 9.4 hereof, shall
survive the termination of this Agreement and the payment of the Notes for a period of one year. 
  
 Section 11.6. Documentary Taxes. Although the Company is of the opinion that no documentary or similar taxes are payable in respect of this
Agreement or the Notes, the Company agrees that it will pay such taxes, including interest and penalties, in the event any such taxes are assessed irrespective of when such assessment is made and whether or not any credit is then in use or available
hereunder. 
  
 Section 11.7. Representations. All
representations and warranties made herein or in certificates given pursuant hereto shall survive the execution and delivery of this Agreement and of the Notes, and shall continue in full force and effect with respect to the date as of which they
were made and as reaffirmed on the date of each borrowing or request for L/C and as long as any credit is in use or available hereunder. 
  
 Section 11.8. Notices. Unless otherwise expressly provided herein, all communications provided for herein shall be in writing (including, without
limitation, notice by telecopy) and shall be given to the relevant party at its address or telecopier number set forth below, or such other address or telecopier number as such party may hereafter specify by notice to the Agent and the Company
pursuant to this Section 11.8, by courier, by United States certified or registered mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan Documents to the
Banks and the Agent shall be addressed to their respective addresses or telecopier numbers set forth on the signature pages hereof, and to the Company to: 
  
 110 South Texas 
 Pittsburg, Texas 75686 
 Attention: Richard A. Cogdill 
 Telephone: (903) 855-4205 
 Telecopy: (903) 856-7505 
  
  

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 Each such notice, request or other communication shall be effective (i) if given by telecopier, when such telecopy is
transmitted to the telecopier number specified in this Section or on the signature pages hereof and a confirmation of such telecopy has been received by the sender, (ii) if given by mail, 5 days after such communication is deposited in the mail,
certified or registered with return receipt requested, addressed as aforesaid or (iii) if given by any other means, when delivered at the addresses specified in this Section or on the signature pages hereof; provided that any notice given pursuant
to Section 1 hereof shall be effective only upon receipt. 
  
 Section 11.9. Costs and Expenses; Indemnity. The Company agrees to pay on demand all costs and expenses of the Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement, the Notes and the other
instruments and documents to be delivered hereunder or in connection with the transactions contemplated hereby, including the fees and expenses of Chapman and Cutler LLP, special counsel to the Agent; all costs and expenses of the Agent (including
attorneys’ fees) incurred in connection with any consents or waivers hereunder or amendments hereto, and all costs and expenses (including attorneys’ fees), if any, incurred by the Agent, the Banks or any other holders of a Note or any
Bond Reimbursement Obligation or any Reimbursement Obligation in connection with the enforcement of this Agreement or the Notes and the other instruments and documents to be delivered hereunder. The Company agrees to indemnify and save harmless the
Banks and the Agent from any and all liabilities, losses, costs and expenses incurred by the Banks or the Agent in connection with any action, suit or proceeding brought against the Agent or any Bank by any Person which arises out of the
transactions contemplated or financed hereby or by the Notes, or out of any action or inaction by the Agent or any Bank hereunder or thereunder, except for such thereof as is caused by the gross negligence or willful misconduct of the party
indemnified. The provisions of this Section 11.9 shall survive payment of the Notes, Bond Reimbursement Obligations and Reimbursement Obligations and the termination of the Revolving Credit Commitments hereunder. 
  
 Section 11.10. Counterparts. This Agreement may be executed in any
number of counterparts and all such counterparts taken together shall be deemed to constitute one and the same instrument. One or more of the Banks may execute a separate counterpart of this Agreement which has also been executed by the Company, and
this Agreement shall become effective as and when all of the Banks have executed this Agreement or a counterpart thereof and lodged the same with the Agent. 
  
 Section 11.11. Successors and Assigns. This Agreement shall be binding upon each of the Company and the Banks and their respective successors and
assigns, and shall inure to the benefit of the Company and each of the Banks and the benefit of their respective successors and assigns, including any subsequent holder of any Note, Bond Reimbursement Obligation or Reimbursement Obligation. The
Company may not assign any of its rights or obligations hereunder without the written consent of the Banks. 
  

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 Section 11.12. No Joint Venture. Nothing contained in this Agreement shall be deemed to create a
partnership or joint venture among the parties hereto. 
  
 Section 11.13. Severability. In the event that any term or provision hereof is determined to be unenforceable or illegal, it shall deemed severed herefrom to the extent of the illegality and/or unenforceability and all other
provisions hereof shall remain in full force and effect. 
  
 Section 11.14. Table of Contents and Headings. The table of contents and section headings in this Agreement are for reference only and shall not affect the construction of any provision hereof. 
  
 Section 11.15. Participants. Each Bank shall have the right at its own
cost to grant participations (to be evidenced by one or more agreements or certificates of participation) in the Loans made, and/or Revolving Credit Commitment and participations in L/Cs, Bond L/Cs, Bond Reimbursement Obligations and Reimbursement
Obligations held, by such Bank at any time and from time to time, and to assign its rights under such Loans, participations in L/Cs, Bond L/Cs, Bond Reimbursement Obligations and Reimbursement Obligations or the Notes evidencing such Loans to one or
more other Persons; provided that no such participation shall relieve any Bank of any of its obligations under this Agreement, and any agreement pursuant to which such participation or assignment of a Note or the rights thereunder is granted shall
provide that the granting Lender shall retain the sole right and responsibility to enforce the obligations of the Company under the Loan Documents, including, without limitation, the right to approve any amendment, modification or waiver of any
provision thereof, except that such agreement may provide that such Bank will not agree without the consent of such participant or assignee to any modification, amendment or waiver of this Agreement that would (A) increase any Revolving Credit
Commitment of such Lender, or (B) reduce the amount of or postpone the date for payment of any principal of or interest on any Loan, Bond Reimbursement Obligation or Reimbursement Obligation or of any fee payable hereunder in which such participant
or assignee has an interest or (C) reduce the interest rate applicable to any Loan or other amount payable in which such participant or assignee has an interest or (D) release any collateral security for or guarantor for any of the Company’s
indebtedness, obligations and liabilities under the Loan Documents, and provided further that no such assignee or participant shall have any rights under this Agreement except as provided in this Section 11.15, and the Agent shall have no obligation
or responsibility to such participant or assignee, except that nothing herein provided is intended to affect the rights of an assignee of a Note to enforce the Note assigned. Any party to which such a participation or assignment has been granted
shall have the benefits of Section 1.10, Section 9.3 and Section 9.4 hereof but shall not be entitled to receive any greater payment under any such Section than the Bank granting such participation or assignment would have been entitled to receive
with respect to the rights transferred. 
  
 Section 11.16.
Assignments. (a) Each Bank shall have the right at any time, with the prior consent of the Agent (and the L/C Issuers, if other than the Agent) and, so long as no Event of Default then exists, the Company (which consent of the Company shall not
be unreasonably withheld) to sell, assign, transfer or negotiate all or any part of its rights and obligations under the Loan Documents (including, without limitation, the indebtedness evidenced by the Notes then held by such assigning Bank,
together with an equivalent percentage of its obligation to 
  

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 make Loans and participate in the Bond L/C and L/Cs) to one or more commercial banks or other financial institutions or
investors, provided that, unless otherwise agreed to by the Agent, such assignment shall be of a fixed percentage (and not by its terms of varying percentage) of the assigning Bank’s rights and obligations under the Loan Documents; provided,
however, that in order to make any such assignment (i) unless the assigning Bank is assigning all of its Revolving Credit Commitments, outstanding Loans and interests in the Bond L/C, Bond Reimbursement Obligations, L/Cs and Reimbursement
Obligations, the assigning Bank shall retain at least $5,000,000 in unused Revolving Credit Commitments, outstanding Loans and interests in the Bond L/C, Bond Reimbursement Obligations, L/Cs and Reimbursement Obligations, (ii) the assignee Bank
shall have Revolving Credit Commitments, outstanding Loans and interests in the Bond L/C, Bond Reimbursement Obligations, L/Cs and Reimbursement Obligations of at least $5,000,000, (iii) each such assignment shall be evidenced by a written agreement
(substantially in the form attached hereto as Exhibit I or in such other form acceptable to the Agent) executed by such assigning Bank, such assignee Bank or Banks, the Agent (and the issuer of the Bond L/C and L/Cs hereunder, if other than the
Agent) and, if required as provided above, the Company, which agreement shall specify in each instance the portion of the indebtedness, obligations and liabilities which are to be assigned to the assignee Bank and the portion of the Revolving Credit
Commitments of the assigning Bank to be assumed by the assignee Bank, and (iv) the assigning Bank shall pay to the Agent a processing fee of $3,500 and any out-of-pocket attorneys’ fees and expenses incurred by the Agent in connection with any
such assignment agreement. Notwithstanding the foregoing, the Company’s consent shall not be required for any assignment by a Bank to any of its Affiliates. Any such assignee shall become a Bank for all purposes hereunder to the extent of the
rights and obligations under the Loan Documents it assumes and the assigning Bank shall be released from its obligations, and will have released its rights, under the Loan Documents to the extent of such assignment. The address for notices to such
assignee Bank shall be as specified in the assignment agreement executed by it. Promptly upon the effectiveness of any such assignment agreement, the Company shall execute and deliver replacement Notes to the assignee Bank and the assigning Bank in
the respective amounts of their Revolving Credit Commitments (or assigned principal amounts, as applicable) after giving effect to the reduction occasioned by such assignment (all such Notes to constitute “Notes” for all purposes of
the Loan Documents), and the assignee Bank shall thereafter surrender to the Company its old Notes. 
  
 (b) Any Bank may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure obligations of such
Bank, including any such pledge or grant to a Federal Reserve Bank, and this Section shall not apply to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall release a Bank from
any of its obligations hereunder or substitute any such pledgee or secured party for such Bank as a party hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer
all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement. 
  
 Section 11.17. Sharing of Payments. Each Bank agrees with each other Bank that if such Bank shall receive and retain
any payment, whether by set-off or application of deposit balances or otherwise (“Set-Off”), on any Loan, Bond Reimbursement Obligation, Reimbursement 
  

 -68- 

 Obligation or other amount outstanding under this Agreement in excess of its ratable share of payments on all Loans, Bond
Reimbursement Obligations, Reimbursement Obligations and other amounts then outstanding to the Banks, then such Bank shall purchase for cash at face value, but without recourse, ratably from each of the other Banks such amount of the Loans, Bond
Reimbursement Obligations and Reimbursement Obligations held by each such other Bank (or interest therein) as shall be necessary to cause such Bank to share such excess payment ratably with all the other Banks; provided, however, that if any
such purchase is made by any Bank, and if such excess payment or part thereof is thereafter recovered from such purchasing Bank, the related purchases from the other Banks shall be rescinded ratably and the purchase price restored as to the portion
of such excess payment so recovered, but without interest. Each Bank’s ratable share of any such Set-Off shall be determined by the proportion that the aggregate principal amount of Loans, Bond Reimbursement Obligations and Reimbursement
Obligations then due and payable to such Bank bears to the total aggregate principal amount of Loans, Bond Reimbursement Obligations and Reimbursement Obligations then due and payable to all the Banks. 
  
 Section 11.18. Withholding Taxes. (a) Payments Free of
Withholding. Except as otherwise required by law and subject to Section 11.18(b) hereof, each payment by the Company under this Agreement or the other Loan Documents shall be made without withholding for or on account of any present or future
taxes (other than overall net income taxes on the recipient) imposed by or within the jurisdiction in which the Company is domiciled, any jurisdiction from which the Company makes any payment, or (in each case) any political subdivision or taxing
authority thereof or therein. If any such withholding is so required, the Company shall make the withholding, pay the amount withheld to the appropriate governmental authority before penalties attach thereto or interest accrues thereon, and
forthwith pay such additional amount as may be necessary to ensure that the net amount actually received by each Bank and the Agent free and clear of such taxes (including such taxes on such additional amount) is equal to the amount which that Bank
or the Agent (as the case may be) would have received had such withholding not been made. The Company shall no be required to pay any additional amounts payable to a Bank hereunder at the time such Bank becomes a party to this Agreement, except to
the extent such Bank’s assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Company with respect to such taxes pursuant to this Section 11.18. If the Agent or any Bank pays any amount in respect of
any such taxes, penalties or interest, the Company shall reimburse the Agent or such Bank for that payment on demand in the currency in which such payment was made. If the Company pays any such taxes, penalties or interest, it shall deliver official
tax receipts evidencing that payment or certified copies thereof to the Bank or Agent on whose account such withholding was made (with a copy to the Agent if not the recipient of the original) on or before the thirtieth day after payment.

  
 (b) U.S. Withholding Tax Exemptions. Each Bank that is
not a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Company and the Agent on or before the date the initial Loan is made hereunder or, if later, the date such financial institution becomes a
Bank hereunder, two duly completed and signed copies of (i) either Form W-8 BEN (relating to such Bank and entitling it to a complete exemption from withholding under the Code on all amounts to be received by such Bank, including fees, pursuant to
the Loan Documents and the Company’s indebtedness, obligations and liabilities thereunder) or Form 
  

 -69- 

 W-8 ECI (relating to all amounts to be received by such Bank, including fees, pursuant to the Loan Documents and the
Obligations) of the United States Internal Revenue Service or (ii) solely if such Bank is claiming exemption from United States withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, a
Form W-8 BEN, or any successor form prescribed by the Internal Revenue Service, and a certificate representing that such Bank is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Code) of the Company and is not a controlled foreign corporation related to the Company (within the meaning of Section 864(d)(4) of the Code) along with such other additional forms as the Company or the Agent may reasonably
require to establish the availability of such exemption. Thereafter and from time to time, each Bank shall submit to the Company and the Agent such additional duly completed and signed copies of one or the other of such Forms (or such successor
forms as shall be adopted from time to time by the relevant United States taxing authorities) and such other certificates as may be (i) requested by the Company in a written notice, directly or through the Agent, to such Bank and (ii) required under
then-current United States law or regulations to avoid or reduce United States withholding taxes on payments in respect of all amounts to be received by such Bank, including fees, pursuant to the Loan Documents or the Company’s indebtedness,
obligations and liabilities under the Loan Documents. Upon the request of the Company or the Agent, each Bank that is a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Company and the Agent a
certificate to the effect that it is such a United States person. 
  
 (c) Inability of Bank to Submit Forms. If any Bank determines, as a result of any change in applicable law, regulation or treaty, or in any official application or interpretation thereof, that it is unable to submit to the Company or
the Agent any form or certificate that such Bank is obligated to submit pursuant to subsection (b) of this Section 11.18 or that such Bank is required to withdraw or cancel any such form or certificate previously submitted or any such form or
certificate otherwise becomes ineffective or inaccurate, such Bank shall promptly notify the Company and Agent of such fact and the Bank shall to that extent not be obligated to provide any such form or certificate and will be entitled to withdraw
or cancel any affected form or certificate, as applicable. 
  
 (d) In the event that the Company is required to pay any amounts with respect to taxes, penalties or interest pursuant to this Section 11.18 to a Bank, the Company shall have the right but not the obligation, at its expense, upon
notice to such Bank and the Agent, to (a) require such Bank to, and such Bank promptly shall, assign and delegate, without recourse (in accordance with and subject to the provisions o this Agreement), all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which assignee may be another Bank, if a Bank accepts such assignment) or (b) reduce the Revolving Credit Commitment of such Bank to zero and make any necessary prepayments under this
Agreement to such Bank in connection with such termination of such Bank’s Revolving Credit Commitment. 
  
 Section 11.19. Jurisdiction; Venue; Waiver of Jury Trail. THE COMPANY HEREBY SUBMITS
TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF ILLINOIS AND OF ANY ILLINOIS COURT SITTING
IN CHICAGO FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS 
  

 -70- 

 CONTEMPLATED HEREBY. THE COMPANY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE
OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM
THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM. THE COMPANY, THE AGENT, AND THE BANKS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
  
 Section 11.20. Lawful Rate. All agreements between the Company, the Agent and each of the Banks, whether now existing or hereafter arising and
whether written or oral, are expressly limited so that in no contingency or event whatsoever, whether by reason of demand or acceleration of the maturity of any of the indebtedness hereunder or otherwise, shall the amount contracted for, charged,
received, reserved, paid or agreed to be paid to the Agent or each Bank for the use, forbearance, or detention of the funds advanced hereunder or otherwise, or for the performance or payment of any covenant or obligation contained in any document
executed in connection herewith (all such documents being hereinafter collectively referred to as the “Credit Documents”), exceed the highest lawful rate permissible under applicable law (the “Highest Lawful Rate”),
it being the intent of the Company, the Agent and each of the Banks in the execution hereof and of the Credit Documents to contract in strict accordance with applicable usury laws. If, as a result of any circumstances whatsoever, fulfillment by the
Company of any provision hereof or of any of such documents, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by applicable usury law or result in the Agent or any Bank having or
being deemed to have contracted for, charged, reserved or received interest (or amounts deemed to be interest) in excess of the maximum, lawful rate or amount of interest allowed by applicable law to be so contracted for, charged, reserved or
received by the Agent or such Bank, then, ipso facto, the obligation to be fulfilled by the Company shall be reduced to the limit of such validity, and if, from any such circumstance, the Agent or such Bank shall ever receive interest or
anything which might be deemed interest under applicable law which would exceed the Highest Lawful Rate, such amount which would be excessive interest shall be refunded to the Company or, to the extent (a) permitted by applicable law and (b) such
excessive interest does not exceed the unpaid principal balance of the Notes and the amounts owing on other obligations of the Company to the Agent or any Bank under any Loan Document applied to the reduction of the principal amount owing on account
of the Notes or the amounts owing on other obligations of the Company to the Agent or any Bank under any Loan Document and not to the payment of interest. All interest paid or agreed to be paid to the Agent or any Bank shall, to the extent permitted
by applicable law, be amortized, prorated, allocated, and spread throughout the full period of the indebtedness hereunder until payment in full of the principal of the indebtedness hereunder (including the period of any renewal or extension thereof)
so that the interest on account of the indebtedness hereunder for such full period shall not exceed the highest amount permitted by applicable law. This paragraph shall control all agreements between the Company, the Agent and the Banks. 

 
 Section 11.21. Governing Law. (a) THIS
AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE
CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS, EXCEPT TO THE EXTENT PROVIDED IN SECTION 11.21(b) HEREOF
AND TO THE EXTENT THAT THE FEDERAL LAWS OF THE UNITED STATES
OF AMERICA MAY OTHERWISE APPLY. 
  

 -71- 

 (b) NOTWITHSTANDING ANYTHING IN SECTION
11.20(a) HEREOF TO THE CONTRARY, NOTHING IN THIS AGREEMENT, THE NOTES, OR
THE OTHER LOAN DOCUMENTS SHALL BE DEEMED TO CONSTITUTE A WAIVER OF
ANY RIGHTS WHICH THE COMPANY, THE AGENT OR ANY OF THE BANKS
MAY HAVE UNDER THE NATIONAL BANK ACT OR OTHER APPLICABLE FEDERAL LAW.

  
 Section 11.22. Limitation of
Liability. NO CLAIM MAY BE MADE BY THE COMPANY, ANY SUBSIDIARY OR
ANY GUARANTOR AGAINST ANY BANK OR ITS AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES,
ATTORNEYS OR AGENTS FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES IN
RESPECT OF ANY BREACH OR WRONGFUL CONDUCT (WHETHER THE CLAIM THEREFOR
IS BASED ON CONTRACT, TORT OR DUTY IMPOSED BY LAW) IN CONNECTION
WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE TRANSACTIONS
CONTEMPLATED AND RELATIONSHIPS ESTABLISHED BY THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS, OR ANY ACT, OMISSION OR EVENT OCCURRING IN
CONNECTION THEREWITH. THE COMPANY, EACH SUBSIDIARY AND EACH GUARANTOR HEREBY WAIVE,
RELEASE AND AGREE NOT TO SUE UPON SUCH CLAIM FOR ANY SUCH
DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED
TO EXIST IN ITS FAVOR. 
  
 Section 11.23. Nonliability of Lenders. The relationship between the Company and the Banks is, and shall at all times remain, solely that of
borrower and lenders, and the Banks and the Agent neither undertake nor assume any responsibility or duty to the Company to review, inspect, supervise, pass judgment upon, or inform the Company of any matter in connection with any phase of the
Company’s business, operations, or condition, financial or otherwise. The Company shall rely entirely upon its own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment, or information supplied to
the Company by any Bank or the Agent in connection with any such matter is for the protection of the Bank and the Agent, and neither the Company nor any third party is entitled to rely thereon. 
  
 Section 11.24. No Oral Agreements.
THIS WRITTEN AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS EXECUTED
CONTEMPORANEOUSLY HEREWITH, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES. 
  

 -72- 

 Upon your acceptance hereof in the manner hereinafter set forth, this Agreement shall be a contract
between us for the purposes hereinabove set forth. 
  
 Dated as of
April 7, 2004. 
  

			
	 PILGRIM’S PRIDE CORPORATION

		
	 By
	 	 /s/ Richard A. Cogdill

	 	 	 Its Chief Financial Officer

  
 Accepted and
Agreed to as of the day and year last above written. 
  

			
	 HARRIS TRUST AND SAVINGS BANK,
individually and as
Agent

		
	 By
	 	  

	 	 	 Its Vice President

	
	 Address: 111 West Monroe Street
            Chicago, Illinois
60690

	 Attention:    Food Group

	 Telecopy:    (312) 765-1624

	 Telephone:  (312) 461-3776

	
	 SUNTRUST BANK,
individually and as Syndication Agent

		
	 By
	 	  

	 	 	 Its Vice President

	
	 Address: 303 Peachtree Street
            Atlanta, Georgia
30308

	 Attention:    Mr. Hugh E. Brown

	 Telecopy:    (404) 230-5305

	 Telephone:  (404) 658-4227

  

 -73- 

			
	 U.S. BANK NATIONAL ASSOCIATION,
individually and as Co-Documentation
Agent

		
	 By
	 	  

	 	 	 Its Vice President

	
	 Address: 950 Seventeenth Street
            Suite
350
            Denver, Colorado 80202

	 Attention:    Alan V. Schuler

	 Telecopy:    (303) 585-4903

	 Telephone:  (303) 585-4903

	
	 WELLS FARGO BANK NATIONAL ASSOCIATION, individually and
as Co-Documentation Agent

		
	 By
	 	  

	 	 	 Its Vice President

	
	 Address: 111 Congress Avenue, Suite 300
            Austin, Texas
78701

	 Attention:    Mr. Paul Rudd

	 Telecopy:    (512) 344-7318

	 Telephone:  (512) 344-7013

  

 -74- 

					
	 ING CAPITAL LLC

		
	 By
	 	  

	 	 	 Its
	 	  

		
	 By
	 	  

	 	 	 Its
	 	  

	
	 Address: 1325 Avenue of the Americas
            New York, New York
10019

	 Attention:    William Redmond

	 Telecopy:    (646) 424-6390

	 Telephone:    (646) 424-6639

	
	 REGIONS BANK

		
	 By
	 	

	 	 	 Its
	 	  

	
	 Address: 417 North 20th Street, 8th Floor
            Birmingham,
Alabama 35208

	 Attention:    Mark Burr

	 Telecopy:    (205) 326-7788

	 Telephone:  (205) 325-7679

	
	 CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands
Branch

		
	 By
	 	  

	 	 	 Its
	 	  

		
	 By
	 	  

	 	 	 Its
	 	  

	
	 Address: 11 Madison Avenue, 5th Floor
            New York, New
York 10010

  

 -75- 

					
	 Attention:    Paul Colon

	 Telecopy:    (212) 448-3397

	 Telephone:  (212) 325-5352

	
	 COBANK, ACB

		
	 By
	 	  

	 	 	 Its
	 	  

	
	 Address: P.O. Box 5110
                 Denver, Colorado
80217

	 Attention:    Jim Stutzman

	 Telecopy:    (303) 224-2526

	 Telephone:  (303) 740-6585

  

 -76-

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