Document:

ex10_2.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
10.2

     

    

    Pilgrim’s
Pride Corporation

    Second
Amendment to Fourth Amended and Restated Secured Credit Agreement

     

    This
Second Amendment to Fourth Amended and Restated Secured Credit Agreement
(herein, the “Amendment”) is entered into
as of April 30, 2008, among Pilgrim’s Pride Corporation, a Delaware
corporation (the “Company”), To-Ricos, Ltd., a
Bermuda company (“To-Ricos”), To-Ricos
Distribution, Ltd., a Bermuda company (“To-Ricos Distribution”; and
together with To-Ricos, the “Foreign Borrowers”; the
Company and the Foreign Borrowers collectively, the “Borrowers” and individually,
a “Borrower”), the Banks party hereto,
and Bank of Montreal a Canadian chartered bank acting through its Chicago
branch, as administrative agent for the Banks (the “Agent”).

     

    Preliminary
Statements

     

    A.The
Borrowers, the Banks and the Agent are parties to that certain Fourth Amended
and Restated Secured Credit Agreement dated as of February 8, 2007, as
amended (the “Credit
Agreement”).  All capitalized terms used herein without
definition shall have the same meanings herein as such terms have in the Credit
Agreement.

     

    B.The
Borrowers and the Banks have agreed to limit the amount of L/Cs that can be
outstanding under the Revolving Credit at any time and to amend the definition
of the term “Applicable
Margin” contained in Section 4.1 of the Credit Agreement and the
financial covenants contained in the Credit Agreement, all on the terms and
conditions set forth in this Amendment.

     

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

     

    
      	
               
      

            	
              1.Amendments.

            

    

     

    Upon
satisfaction of all of the applicable conditions precedent set forth in
Section 2 hereof, the Credit Agreement shall be amended as
follows:

     

    1.1.The
third sentence of Section 1.5(a) of the Credit Agreement shall be amended
to read as follows:

     

    “The L/Cs
shall consist of standby and commercial letters of credit in an aggregate face
amount not to exceed $175,000,000 outstanding at any time (excluding the amount
of the Bond L/C).”

     

    1.2.Section 4.1
of the Credit Agreement shall be amended by adding the following definition
thereto in the appropriate alphabetical order:

     

    “Second Amendment Effective Date”
means May 1, 2008.”

     

    1.3.The
definition of the term “Applicable Margin” contained
in Section 4.1 of the Credit Agreement shall be amended to read as
follows:

     

    “Applicable Margin” shall
mean, (a) during the period commencing on the Second Amendment Effective
Date and ending on the date the Agent determines the Applicable Margins based on
the Company’s financial statements for its fiscal quarter ending
September 26, 2009 (the “Pricing Increase Termination
Date”), with respect to each type of Loan and the commitment fee
described in Column A below, the rate of interest per annum shown in Columns B,
C, D, E, F and G below for the range of Leverage Ratio (expressed as a
percentage) specified for each Column:

    
      	
              A

            	
              B

            	
              C

            	
              D

            	
              E

            	
              F

            	
              G

            
	 
      	
              Level
      I

            	
              Level
      II

            	
              Level
      III

            	
              Level
      IV

            	
              Level
      V

            	
              Level
      VI

            
	
              Leverage
      Ratio

            	
              <=45%

            	
              >45%<=

              50%

            	
              >50%<=

              55%

            	
              >55%<=

              60%

            	
              >60%<=

              65%

            	
              >65%

            
	
              Domestic
      Rate Loans

            	
              0.50%

            	
              0.50%

            	
              0.50%

            	
              0.50%

            	
              0.50%

            	
              0.50%

            
	
              Eurodollar
      Loans

            	
              1.25%

            	
              1.50%

            	
              1.75%

            	
              2.00%

            	
              2.25%

            	
              2.75%

            
	
              Commitment
      Fee

            	
              0.25%

            	
              0.30%

            	
              0.35%

            	
              0.40%

            	
              0.45%

            	
              0.50%

            

    

     

    and
(b) from and after the Pricing Increase Termination Date, with respect to
each type of Loan and the commitment fee described in Column A below, the rate
of interest per annum shown in Columns B, C, D, E and F below for the range of
Leverage Ratio (expressed as a percentage) specified for each
Column:

    
      	
              A

            	
              B

            	
              C

            	
              D

            	
              E

            	
              F

            
	 
      	
              Level
      I

            	
              Level
      II

            	
              Level
      III

            	
              Level
      IV

            	
              Level
      V

            
	
              Leverage
      Ratio

            	
              <=45%

            	
              >45%<=

              50%

            	
              >50%<=

              55%

            	
              >55%<=

              60%

            	
              >60%

            
	
              Domestic
      Rate Loans

            	
              0.0%

            	
              0.0%

            	
              0.0%

            	
              0.0%

            	
              0.0%

            
	
              Eurodollar
      Loans

            	
              0.75%

            	
              1.00%

            	
              1.25%

            	
              1.50%

            	
              1.75%

            
	
              Commitment
      Fee

            	
              0.175%

            	
              0.225%

            	
              0.275%

            	
              0.325%

            	
              0.35%

            

    

     

    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 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 IV above.

     

    1.4.Sections 7.8,
7.9, 7.11 and 7.12 of the Credit Agreement shall be amended to read as
follows:

     

    “Section 7.8.Leverage
Ratio.  The Company will not permit its Leverage Ratio at any
time to exceed (a) 0.70 to 1 at any time from and after the Second
Amendment Effective Date through September 26, 2009, and (b) 0.65 to 1
at any time thereafter.

     

    Section 7.9.Tangible Net
Worth.  The Company shall maintain its Tangible Net Worth at
all times in an amount not less than (a) $250,000,000 from and after the
Second Amendment Effective Date through September 25, 2009,
and (b) $300,000,000 thereafter, which amount shall increase as of the
last day of each Fiscal Year commencing with the Fiscal Year ending October 2,
2010 by an amount, in each case, equal to 50% of the Company’s Net Income (but
not less than zero) for such Fiscal Year of the Company.

     

    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 of the Company, to be less than
(a) 1.05 to 1 as of the last day of each quarterly fiscal accounting period
of the Company ending after the Second Amendment Effective Date through and
including June 27, 2009, (b) 1.10 to 1 as of the last day of the
quarterly fiscal accounting period of the Company ending September 26, 2009, and
(c) 1.125 to 1 as of the last day of each quarterly fiscal accounting period of
the Company thereafter.

     

    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
(a) 1.25 to 1 as of the last day of each quarterly fiscal accounting period
of the Company ending after the Second Amendment Effective Date through
September 26, 2009, and (b) as of the last day of each quarterly
fiscal accounting period of the Company thereafter, 1.50 to 1.”

     

    1.5.Schedule I
attached to the form of Compliance Certificate attached to the Credit Agreement
as Exhibit F shall be replaced by Schedule I attached to this
Amendment.

     

    1.6.The
Company agrees that no later than May 7, 2008, it shall cause the Guarantor to
execute and deliver to the Agent the Guarantor’s Consent set forth below, and
that the Company’s failure to comply with this Section shall constitute an Event
of Default under the Credit Agreement.

     

    
      	
               
      

            	
              2.Conditions
      Precedent.

            

    

     

    The
effectiveness of this Amendment is subject to the satisfaction of all of the
following conditions precedent:

     

    2.1.The
Borrowers and the Required Banks shall have executed this Amendment (such
execution may be in several counterparts and the several parties hereto may
execute on separate counterparts).

     

    2.2.Each
of the representations and warranties set forth in Section 5 of the Credit
Agreement shall be true and correct.

     

    2.3.The
Borrowers shall be in full compliance with all of the terms and conditions of
the Credit Agreement and no Event of Default
or Potential Default shall have occurred and
be continuing thereunder or shall result after giving effect to this
Amendment.

     

    2.4.The
Agent shall have received for the ratable benefit of the Banks executing this
Amendment (the “Consenting
Banks”) an amendment fee in an amount equal to one-quarter of one percent
(0.25%) of Revolving Credit Commitment of each of the Consenting Banks, which
amendment fee shall be non-refundable. 

     

    2.5.The
Agent shall have received for its own account such fees as have been agreed upon
by the Company and the Agent.

     

    
      	
               
      

            	
              3.Representations
      And Warranties.

            

    

     

    3.1.The
Company, by its execution of this Amendment, hereby represents and warrants the
following:

     

    (a)each
of the representations and warranties set forth in Section 5 of the Credit
Agreement is true and correct as of the date hereof, except that the
representations and warranties made under Section 5.3 shall be deemed to
refer to the most recent annual report furnished to the Banks by the Company;
and

     

    (b)the
Borrowers are in full compliance with all of the terms and conditions of the
Credit Agreement and no Event of Default or Potential Default has occurred and is
continuing thereunder.

     

    
      	
               
      

            	
              4.Miscellaneous.

            

    

     

    4.1.The
Company has heretofore executed and delivered to the Agent that certain Second
Amended and Restated Security Agreement Re:  Inventory and Farm
Products dated as of February 8, 2007 (the “Security Agreement”) and the
Company hereby agrees that the Security Agreement shall continue to secure all
of the Company’s and the Foreign Borrowers’ indebtedness, obligations and
liabilities to the Agent, the L/C Issuers and the Banks under the Credit
Agreement as amended by this Amendment, that notwithstanding the execution and
delivery of this Amendment, the Security Agreement shall be and remain in full
force and effect and that any rights and remedies of the Agent thereunder,
obligations of the Company thereunder and any liens or security interests
created or provided for thereunder shall be and remain in full force and effect
and shall not be affected, impaired or discharged thereby.  Nothing
herein contained shall in any manner affect or impair the priority of the liens
and security interests created and provided for by the Security Agreement as to
the indebtedness which would be secured thereby prior to giving effect to this
Amendment.

     

    4.2.Except
as specifically amended herein, the Credit Agreement and the Notes shall
continue in full force and effect in accordance with their original
terms.  Reference to this specific Amendment need not be made in any
note, document, letter, certificate, the Credit Agreement itself, the Notes, or
any communication issued or made pursuant to or with respect to the Credit
Agreement, any reference to the Credit Agreement being sufficient to refer to
the Credit Agreement as amended hereby.

     

    4.3.The
Company agrees to pay all reasonable out-of-pocket costs and expenses incurred
by the Agent in connection with the preparation, execution and delivery of this
Amendment and the documents and transactions contemplated hereby, including the
reasonable fees and expenses of Chapman and Cutler LLP.

     

    4.4.This
Amendment may be executed in any number of counterparts, and by the different
parties on different counterparts, all of which taken together shall constitute
one and the same agreement.  Any of the parties hereto may execute
this Amendment by signing any such counterpart and each of such counterparts
shall for all purposes be deemed to be an original.

     

    4.5.(a) This
Amendment 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 4.5(b) hereof
and to the extent that the Federal laws of the United States of America may
otherwise apply.

     

    (b)Notwithstanding
anything in Section 4.5(a) hereof to the contrary, nothing in this
Amendment, the Credit 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.

     

    [Signature
pages to follow]

    
      
        
          DALDMS/638955.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    This
Second Amendment to Fourth Amended and Restated Secured Credit Agreement is
entered into as of the date and year first above written.

     

    
      	
               
      

            	
              “Borrowers”

            

    

     

    
      	
               
      

            	
              Pilgrim’s
      Pride Corporation

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Chief Financial Officer

            

    

     

    
      	
               
      

            	
              To-Ricos,
      Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Executive Vice President, Treasurer and Assistant
  Secretary

            

    

     

    
      	
               
      

            	
              To-Ricos
      Distribution, Ltd.

            

    

     

    
      	
               
      

            	
              By
      /s/ Richard A.
      Cogdill

            

    

    
      	
               
      

            	
              Its
      Executive Vice President, Treasurer and Assistant
  Secretary

            

    

     

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

     

    
      	
               
      

            	
              Bank
      of Montreal, as Agent

            

    

     

    
      	
               
      

            	
              By
      /s/ David J.
      Bechstein

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              BMO
      Capital Markets Financing, Inc., individually and as Swing
      Bank

            

    

     

    
      	
               
      

            	
              By
      /s/ David J.
      Bechstein

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              SunTrust
      Bank

            

    

     

    
      	
               
      

            	
              By/s/ M. Gabe
      Bonfield

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              U.S.
      Bank National Association

            

    

     

    
      	
               
      

            	
              By/s/
      illegible

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              Wells
      Fargo Bank National Association

            

    

     

    
      	
               
      

            	
              By/s/ Jeff
      Mercer

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              ING
      Capital LLC

            

    

     

    
      	
               
      

            	
              By
      /s/ Lina A.
      Garcia

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

     

    
      	
               
      

            	
              Credit
      Suisse, Cayman Islands Branch

            

    

     

    
      	
               
      

            	
              By
      /s/ Karl
      Studer

            

    

    
      	
               
      

            	
              Its
      Director

            

    

     

    
      	
               
      

            	
              By
      /s/ Petra
      Jaek

            

    

    
      	
               
      

            	
              Its
      Assistant Vice President

            

    

     

    
      	
               
      

            	
              Bank
      of America N.A.

            

    

     

    
      	
               
      

            	
              By
      /s/ Charles
      Dale

            

    

    
      	
               
      

            	
              Its
      Senior Vice President

            

    

     

    
      	
               
      

            	
              CALYON
      New York Branch

            

    

     

    
      	
               
      

            	
              By  /s/ Greg
      Hennenfent

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              By
      /s/ Blake
      Wright

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              Natixis
      New York Branch

            

    

     

    
      	
               
      

            	
              By
      /s/ Vincent
      Lauras

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

     

    
      	
               
      

            	
              By
      /s/ Stephen A.
      Jendras

            

    

    
      	
               
      

            	
              Its
      Managing Director

            

    

    

     

    
      	
               
      

            	
              JP
      Morgan Chase Bank, N.A.

            

    

     

    
      	
               
      

            	
              By
      /s/ Barbara R.
      Marks

            

    

    
      	
               
      

            	
              Its
      Executive Director

            

    

     

    
      	
               
      

            	
              Deutsche
      Bank Trust Company Americas

            

    

     

    
      	
               
      

            	
              By
      /s/ Scottye
      Lindsey

            

    

    
      	
               
      

            	
              Its
      Director

            

    

     

    
      	
               
      

            	
              By
      /s/ Carin
      Keegan

            

    

    Its
Director

     

    First
National Bank of Omaha

     

    
      	
               
      

            	
              By
      /s/ Wade
      Horton

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

    
      
        
          -  -

          DALDMS/638955.3ex10_3.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
10.3

    AMENDMENT
No. 7

     

    Dated
as of May 1, 2008

     

    to

     

    RECEIVABLES
PURCHASE AGREEMENT

     

    Dated
as of June 26, 1998

     

    This
AMENDMENT NO. 7 (this “Amendment”) dated as
of May 1, 2008 is entered into among PILGRIM’S PRIDE FUNDING CORPORATION (“Seller”), PILGRIM’S
PRIDE CORPORATION (“Pilgrim’s Pride”) as
initial Servicer, FAIRWAY FINANCE COMPANY, LLC (f/k/a Fairway Finance
Corporation) (“Purchaser”) and BMO
CAPITAL MARKETS CORP. (f/k/a Harris Nesbitt Corp. (f/k/a BMO Nesbitt Burns
Corp.)), as agent for the Purchaser (in such capacity, together with its
successors and assigns, the “Agent”).

     

    RECITALS

     

    WHEREAS,
the parties hereto have entered into a certain Receivables Purchase Agreement
dated as of June 26, 1998 (as amended through the date hereof, the “Agreement”);

     

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

     

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

     

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

     

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

     

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

     

    2.1. Exhibit I to the
Agreement shall be amended by adding the following definition thereto in the
appropriate alphabetical order:

     

    “Seventh Amendment Effective
Date” means May 1, 2008.

     

    2.2. Exhibit I to the
Agreement shall be amended by deleting the definition of “Funded Debt”
therein.

     

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

     

    “Debt” of any Person
means as of any time the same is to be determined, the aggregate
of:

     

    (a)           all
indebtedness, obligations and liabilities of such Person with respect to
borrowed money (including by the issuance of debt securities);

     

    (b)           all
guaranties, endorsements and other contingent obligations of such Person with
respect to indebtedness arising from money borrowed by others;

     

    (c)           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;

     

    (d)           the
aggregate of the principal components of all leases and other agreements for the
use, acquisition or retention of real or personal property which are required to
be capitalized under generally accepted accounting principles consistently
applied;

     

    (e)           all
indebtedness, obligations and liabilities representing the deferred purchase
price of property or services (excluding trade payables incurred in the ordinary
course of business);

     

    (f)           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;

     

    (g)           in
the case of Pilgrim’s Pride, all indebtedness, obligations and liabilities of
Pilgrim’s Pride relating to any convertible stock of Pilgrim’s Pride that
Pilgrim’s Pride has elected to treat as Debt; and

     

    (h)           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.

     

    2.4. The
definition of “Fixed Charge Coverage Ratio” set forth in Exhibit I to the
Agreement is hereby amended and restated in its entirety as
follows:

     

    “Fixed Charge Coverage
Ratio” with respect to any Person 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 Debt during the period
in question, (iii) all amounts payable under non-cancellable operating leases
(determined as aforesaid) during such period, and (iv) without duplication, 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; provided, that, for
purposes of calculating the Fixed Charge Coverage Ratio, the term “Debt” shall
not include (i) indebtedness related to the Protein IRB Bonds to the extent
proceeds remain held in trust and are not paid to Pilgrim’s Pride pursuant to
the terms of the bond documents pursuant to which the Protein IRB Bonds were
issued, (ii) indebtedness related to the Intercompany Bonds so long as Pilgrim’s
Pride or a subsidiary of Pilgrim’s Pride 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, subject to the Administrator’s
reasonable verification that such cash and Cash Equivalents are held by a
trustee for the sole purpose of insuring such repayment.

     

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

     

    “Leverage Ratio” with
respect to any Person shall mean the ratio for such Person and its subsidiaries,
determined on a consolidated basis (as calculated on the last day of each fiscal
quarter of such Person) 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 such Person’s balance sheet that is not restricted to secure the payment of
off-balance sheet liabilities of such Person or any subsidiary, to (b) the
amount included in clause (a), above, plus the Net Worth of such Person; provided, that, for
purposes of calculating the Leverage Ratio, the terms “Debt” and “Total
Liabilities” shall not include (a) indebtedness of Pilgrim’s Pride related to
the Protein IRB Bonds to the extent proceeds remain held in trust and are not
paid to Pilgrim’s Pride 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 Pilgrim’s Pride or a subsidiary of Pilgrim’s Pride
remains the holder of such Intercompany Bonds, and (c) 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, subject to the Administrator’s reasonable verification that such
cash and Cash Equivalents are held by a trustee for the sole purpose of insuring
such repayment.

     

    2.6. Clause (u) of Exhibit IV of the
Agreement is hereby amended and restated in its entirety as
follows:

     

    (u)           Tangible Net
Worth.  The Servicer (or if Pilgrim’s Pride is not then the
Servicer, Pilgrim’s Pride) shall maintain its Tangible Net Worth at all times in
an amount not less than the minimum required amount for each period set forth
below:

     

    (a) from
the Seventh Amendment Effective Date through September 25, 2009, $250,000,000;
and

     

    (b)
$300,000,000 thereafter, which amount shall increase as of the last day of each
Fiscal Year commencing with the Fiscal Year ending October 2, 2010 by an amount,
in each case, equal to the sum of: (i) the net proceeds of any equity issuance
in a capital raising transaction (including in connection with the acquisition
of any subsidiary, division or otherwise) during such Fiscal Year, plus (ii) 25%
of Pilgrim Pride’s Net Income (but not less than zero) during such Fiscal
Year.

     

    2.7. Clause (v) of Exhibit IV of the
Agreement is hereby amended and restated in its entirety as
follows:

     

    (v)           Fixed Charge Coverage
Ratio.  The Servicer (or if Pilgrim’s Pride is not then the
Servicer, Pilgrim’s Pride) will not permit, as of the last day of each fiscal
quarter of Pilgrim’s Pride, its Fixed Charge Coverage Ratio for the eight
consecutive fiscal quarters of Pilgrim’s Pride then ended to be less than (a)
1.25 to 1 as of the last day of each quarterly fiscal accounting period of
Pilgrim’s Pride ending after the Seventh Amendment Effective Date through
September 26, 2009, and (b) as of the last day of each quarterly fiscal
accounting period of Pilgrim’s Pride thereafter, 1.30 to 1.

     

    2.8. The form
of “Servicer Report” set forth in Annex E to the Agreement is hereby amended and
restated in its entirety as Exhibit I attached
hereto.

     

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

     

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

     

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

     

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

     

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

     

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

     

    SECTION
6. Amendment
Fee.   On or before May 5, 2008, Pilgrim’s Pride shall pay
the “Amendment Fee” referred to in that certain amended and restated Fee Letter,
dated as of the date hereof, by and among the parties hereto.

     

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

     

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

     

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

     

    (continued
on following page)

    

    

    
      
        
          
            	 
      	 
      	 
      

          

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

     

    PILGRIM’S
PRIDE FUNDING CORPORATION,

    as
Seller

    

    

    By:           /s/ Richard A.
Cogdill                                                              

    Name:
Richard A. Cogdill

    Title:
Vice President, Secretary and Treasurer

    

    

    

    PILGRIM’S
PRIDE CORPORATION,

    as
initial Servicer

    

    

    By: /s/ Richard A.
Cogdill                                                                         

    Name:
Richard A. Cogdill

    Title:
Chief Financial Officer, Secretary and Treasurer

    

    

    FAIRWAY
FINANCE COMPANY, LLC,

    as
Purchaser

    

    

    By: /s/ Philip A.
Martone                                                                         

    Name:  Philip
A. Martone

    Title: Vice
President

    

    

    

    BMO
CAPITAL MARKETS CORP.,

    as
Agent

    

    

    By: /s/ Brian
Zaban                                                                         

    Name:
Brian Zaban

    Title:  Managing
Director

    

    

    
      
        
          
            	 
      	
                    S-

                  	
                    Amendment
      No. 7 to RPA

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          
            	
                    5022501
      98442494

                  	
                    S-

                  	 
      

          

          Error!
No document variable supplied.

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