Document:

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                                                                    Exhibit 10.2

                          BOND PURCHASE LOAN AGREEMENT

      This BOND PURCHASE LOAN AGREEMENT (this "Agreement"), dated for purposes
of reference as of December 1, 2004, by and between MOULTRIE-COLQUITT COUNTY
DEVELOPMENT AUTHORITY (the "Issuer"), a public body corporate and politic,
created and existing under the laws of the State of Georgia, and SANDERSON
FARMS, INC. (PROCESSING DIVISION), a corporation organized and existing under
the laws of the State of Mississippi that is qualified to do business in
Georgia, in its capacity as the lessee (the "Company") of the Project, referred
to herein, and its successors and assigns as such lessee, and in its capacity as
the purchaser (the "Purchaser") of the hereinafter described revenue bond of the
Issuer;

                              W I T N E S S E T H:

      WHEREAS, the Issuer is a development authority and public body corporate
and politic duly created by local constitutional amendment Ga. L. 1960, p. 1402,
amended by Ga. L, 1964, p. 403, further amended by Ga. L. 1976, p. 1773, and
continued by Ga. L. 1985, p. 4745 (the "Act"); and

      WHEREAS, pursuant to the Act, the Grantor has been created for the purpose
of promoting and expanding for the public good and welfare of the City of
Moultrie (the "City") and Colquitt County (the "County") and their citizens,
industry, agriculture, trade and commerce therein, and making long range plans
therefor and is authorized to acquire property including lands, and improvements
and equipment to be sold or leased to private persons, firms or corporations for
operation and to, and (iii) to issue its revenue bonds to finance such property;
and

      WHEREAS, the Act further authorizes and empowers the Issuer: (i) to lease
any such project at a rental which, together with other revenues which may be
pledged for such purpose, shall be sufficient to pay Debt Service on such
revenue bonds and to pay all other expenses which the Issuer may incur in
connection with the undertaking; (ii) to pledge, mortgage, convey, assign,
hypothecate or otherwise encumber such projects and the revenues therefrom as
security for the Issuer's revenue bonds; and (iii) to do any and all acts and
things necessary or convenient to accomplish the purpose and powers of the
Issuer; and

      WHEREAS, the Company desires to lease a capital project consisting of
land, a building and related improvements, and equipment (the "Project") from
the Issuer for use as a poultry processing plant and waste water treatment
facility; and

      WHEREAS, the Project is expected to create approximately 1,400 jobs in the
County and will otherwise have a favorable impact on the welfare of the County;
and

      WHEREAS, it is desirable for the Issuer: (i) to sell and issue its Taxable
Industrial Development Revenue Bond (Sanderson Farms, Inc. (Processing Division)
Project), Series 2004

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(the "Bond") having a maximum principal amount not to exceed $80,000,000 (the
"Maximum Principal Amount") maturing December 1, 2019 and bearing interest at 7%
per annum, payable annually on December 1 of each year; (ii) to acquire the
Project; and (iii) to lease the Project to the Company under a Lease Agreement
(the "Lease"), pursuant to the terms of which the Company will acquire and equip
the Project to the extent the same has not been so acquired, constructed and
equipped on the issue date of the Bond, convey the Project to the Issuer,
subject to certain Permitted Encumbrances, and lease the Project from the Issuer
and will pay to the Issuer Basic Rent payments at such times and in such amounts
as will be required to pay debt service on the Bond, as and when the same become
due; and

      WHEREAS, pursuant to the resolution (the "Bond Resolution") adopted by the
Issuer authorizing the issuance of the Bond, the execution of this Bond Purchase
Loan Agreement and the other Issuer Documents (identified in the Bond
Resolution), the Issuer is pledging as security for the payment of the Bond the
Pledged Security (as defined in the Bond Resolution); and

      WHEREAS, all capitalized terms used herein and which are not defined
herein shall be defined as set forth in the Bond Resolution and in the Exhibits
thereto; and

      WHEREAS, the Purchaser desires to purchase the Bond, which is to be issued
in the form of a draw-down instrument and to advance funds or transfer items of
property to the Issuer hereunder, initially on the date of issuance of the Bond
and thereafter from time to time until the earlier of (i) the date the Maximum
Principal Amount of the Bond has been advanced or (ii) the Expiration Date (set
forth in Section 4, below); and

      WHEREAS, the Issuer desires to sell the Bond pursuant to the provisions
hereof;

      NOW, THEREFORE, in consideration of the premises, the parties hereto agree
as follows:

      SECTION 1. THE CREDIT FACILITY AND THE COMMITMENT AMOUNT. The Purchaser
agrees to purchase the Bond and in connection therewith to provide to the Issuer
a credit facility (the "Credit Facility") of up to the Maximum Principal Amount
on the following terms and conditions.

      SECTION 2. PURPOSE: Amounts advanced in cash under the Credit Facility
shall be used to pay or to reimburse the Issuer and the Company for Costs of the
Project, which is to be leased by the Issuer to the Company pursuant to the
Lease. Items of property may also be transferred to the Issuer by the Purchaser,
in which case the same shall be treated as if cash in an amount equal to the
Purchaser's cost of such items were paid by the Purchaser and immediately
disbursed to pay to the Purchaser the book value to the Company of such items,
such value on an aggregate basis being stated in the deed or bill of sale
conveying such items to the Issuer or in the request for advance hereunder. For
purposes of the foregoing and all other purposes related to the Bond, "Costs of
the Project", "Purchaser's cost of such items", and "cost to the Company" as
mentioned in the attached form of Certificate and Requisition for Payment shall
be Purchaser's book value for the related property.

      SECTION 3. COMMENCEMENT DATE: The commencement date of the Credit Facility
shall be the date of issuance of the Bond (the date set forth above being merely
for

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purposes of reference).

      SECTION 4. EXPIRATION DATE: The expiration date of the Credit Facility
shall be December 31, 2018. The Purchaser shall not make any further advances to
the Issuer under the Credit Facility with respect to Requests for Advances
received after the Expiration Date. Notwithstanding that there is an Expiration
Date to the Credit Facility, this Agreement shall remain in effect until the
date the Bond is fully retired and all amounts payable hereunder have been paid.

      SECTION 5. UTILIZATION: An initial advance shall be made on the
Commencement Date in exchange for the Bond. Thereafter, from time to time to,
and including, the Expiration Date, the Issuer may make one or more requests for
advances which shall, when aggregated, not exceed the Maximum Principal Amount.

      SECTION 6. THE BOND: All advances in cash or in property under the Credit
Facility shall be evidenced by the Bond which shall be issued in the form of a
draw-down instrument in substantially the form reviewed by the Purchaser and
approved by the Bond Resolution, with such modifications, if any, as are
acceptable to the Issuer and the Purchaser, the Issuer's approval of such
modifications, if any, to be conclusively presumed by the execution and delivery
thereof, and the Purchaser's acceptance of such modifications, if any, to be
conclusively presumed by the Purchaser's acceptance of the Bond at the time of
the initial advance with respect to the initial draw hereunder. The Bond shall
be registered in the name of the Purchaser.

      SECTION 7. ADVANCES: Advances under the Credit Facility shall be made in
cash, except where the Purchaser has acquired an item or items of property for
the Project and in connection with such request for advance conveys such item or
items of property to the Issuer by deed or bill of sale and such request for
advance or bill of sale states the Costs of the Project with respect to such
item or items of property. Advances under the Credit Facility shall be made upon
the written Request for Advance in the form attached hereto as Exhibit A, signed
by an Authorized Company Representative, acting on behalf of the Issuer, which
shall be delivered to the Purchaser at its notice address by mail, courier, hand
delivery or fax, which request for advance shall be accompanied by a copy of one
or more requisitions of the Issuer (in the form provided for at the end hereof),
submitted by the Company, as agent of the Issuer, which are in an aggregate
amount equal to the amount of the net advance being requested. In the case of an
advance in the form of cash or in the form of a transfer of property, it shall
not be necessary for the Company to attach to said Request for Advance or
requisitions evidence of cost of the property with respect to which the
requested advance is made, but the Purchaser, at the request of the Issuer,
shall make such information available to the Issuer.

      Requests for advances shall be promptly honored, provided that (i) the
conditions precedent set forth in Section 9, below, shall have been satisfied at
the time of each advance, (ii) the gross amount requested in such Request for
Advance, plus the aggregate gross amounts of all prior advances shall not exceed
the Maximum Principal Amount, and (iii) the Request for Advance is received on
or before the Expiration Date. The Purchaser shall be entitled to rely upon any
Request for Advance which the Purchaser reasonably believes in good faith to
have been signed by the proper person. In addition, the Purchaser shall have no
obligation, but may if it so elects, to fund any advance under the Credit
Facility if an "Event of Default" (being an

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"Event of Default" as defined in the Bond Resolution or in any of the Issuer
Documents or Company Documents) has occurred and is continuing on and as of such
date. In connection with the initial advance, the Company shall deliver to the
Issuer a deed to the Leased Land and to the Leased Improvements, and a bill of
sale relating to the fixtures and goods that are to become fixtures.

      SECTION 8. ISSUANCE FEE. There shall be no issuance fee paid to the
Issuer.

      SECTION 9. CONDITIONS PRECEDENT: The Purchaser's obligation to fund the
initial advance hereunder shall be subject to its receipt from the Issuer on or
prior to the date thereof of the duly executed Bond in the Maximum Principal
Amount, together with an approving Bond Counsel opinion of Seyfarth Shaw LLP,
which shall be in form and substance reasonably acceptable to the Purchaser.

      SECTION 10. INVESTMENT: By acceptance hereof, the Purchaser understands,
represents and agrees that: (i) the obligations of the Issuer under the Bond and
under the Issuer Documents, are special and limited obligations payable solely
from the Pledged Security; (ii) the obligations of the Issuer under the Bond and
under the Issuer Documents, and the obligations of the Company under the Company
Documents and any other obligations that would constitute "separate securities"
relating to the Bond (collectively, herein called the "securities") have not
been registered under the Securities Act of 1933, as amended and Securities
Exchange Act of 1934, as amended, (the "Federal Acts"), under the Georgia
Securities Act of 1973, as amended (the "Georgia Act"), or the securities laws,
if applicable, of any other state, and applicable rules and rules and
regulations thereunder (collectively, the "Securities Acts") and are unrated;
(iii) the Bond is being sold to the Purchaser in a private placement; (iv) the
Purchaser has performed its own "due diligence" investigation as to the Issuer,
the Project, the Company, and as to any of the sources of payment of debt
service on the Bond and has not relied on any representations of the Issuer, its
members, directors, officials, employees, agents or legal counsel as to any
matters relating to the adequacy of the Pledged Security to provide for the
payment of debt service on the Bond; (v) the Bond is being purchased by the
Purchaser for investment purposes only and not with a view to distribution or
transfer; (vi) the Bond may not be sold, transferred, pledged or hypothecated by
the Purchaser or any subsequent holders except in accordance with the provisions
of the Bond Resolution governing transfers of the Bond; and (vii) if any
transfer of the Bond would subject the Issuer or the Company to any disclosure
requirements under any of the Securities Acts, the Company shall, at its own
expense and without cost to the Issuer, make such disclosure as to the Issuer
and the Company, the Project and the Pledged Security, as is required by the
Securities Acts. The representations and agreements contained in this Section
shall prevail over any inconsistent term or condition that may be contained in
the Lease, in the Bond Resolution or in the Bond.

      SECTION 11. GOVERNING LAW: This Agreement shall be governed by and
construed under and in accordance with the internal laws of the State of Georgia
(without giving effect to its conflicts of law principles).

      SECTION 12. NON-ASSIGNMENT: Neither the Bond nor this Agreement may be
assigned by the Purchaser prior to the Expiration Date of the Credit Facility if
the full Maximum Principal Amount has not been drawn down unless the assignee is
a bank or other financial

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institution approved in writing by the Company.

      SECTION 13. AMENDMENT: No amendment or modification of this Agreement
shall be effective unless it is in writing and executed by the Issuer, the
Company and the Purchaser.

      SECTION 14. HEADINGS: All paragraphs or other headings used in this Bond
Purchase Loan Agreement are for convenience of reference only and do not
constitute a substantive part of this Bond Purchase Loan Agreement.

      SECTION 15. REQUESTS FOR ADVANCES AND NOTICES: All Requests for Advances
shall be delivered to the Purchaser at its address set forth below. All other
requests, notices, demands, and other communications under this Bond Purchase
Loan Agreement shall be given in writing or by fax and are to be deemed to have
been duly given and to be effective upon delivery to the party to whom they are
directed, to such party at its notice address set forth below, provided that any
party may by written notice or fax to the other parties designate a different
address for receiving notices under this Bond Purchase Loan Agreement; provided,
however, that no such change of address will be effective unless and until
written notice thereof is actually received by the party to whom such change of
address notice is sent.

To the Issuer:                Moultrie-Colquitt County Development Authority
                              116 First Avenue, S. E.
                              Moultrie, GA 31776
                              Attn: Chairman
                              Fax: (229) 890-2638

To the Company                Sanderson Farms, Inc. (Processing Division)
                              P.O. Box 988
                              Laurel, Mississippi 39441
                              Attn: Chief Financial Officer
                              Fax: (601) 525-0704)

      SECTION 16. EFFECTIVE DATE: This Agreement may be executed prior to the
delivery of the Bond to the Purchaser, but shall not become effective until a
counterpart hereof executed by all parties hereto is delivered simultaneously
with the issuance of the Bond. Such counterparts, taken together, shall
constitute one and the same instrument. Upon execution and delivery hereof, as
aforesaid, this Bond Purchase Loan Agreement and the terms and provisions of the
Bond, the Resolution and other documents approved by the Bond Resolution shall
supersede the provisions of any commitment letter(s) heretofore issued by the
Purchaser to the Issuer and the Company with respect to the Bond, the Credit
Facility and the Maximum Principal Amount.

                       [Signatures Continued On Next Page]

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      IN WITNESS WHEREOF, each of the parties have caused this Agreement to be
duly executed and delivered, under seal, by its respective duly authorized
officers.

                                               MOULTRIE-COLQUITT COUNTY
                                               DEVELOPMENT AUTHORITY

                                               By: ___________________________
                                                   Chairman

                                               ATTEST:

                                               _______________________________
                                                   Secretary

      [Authority's Seal]

                       [Signatures Continued On Next Page]

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                                     SANDERSON FARMS, INC. (PROCESSING DIVISION)

                                     By: ____________________________________
                                     Title: Authorized Company Representative

                                     [Company's Signature Page to the Bond
                                     Purchase Loan Agreement]

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<PAGE>

                                    EXHIBIT A

                (Request for Advance and Requisition Form follow)

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           REQUEST FOR ADVANCE UNDER THE BOND PURCHASE LOAN AGREEMENT,
                    DATED AS OF DECEMBER 1, 2004, BETWEEN THE
           MOULTRIE-COLQUITT COUNTY DEVELOPMENT AUTHORITY, AS ISSUER,
                                       AND
                   SANDERSON FARMS, INC. (PROCESSING DIVISION)
                         AS THE LESSEE AND AS PURCHASER
                                 RELATING TO THE
                 MOULTRIE-COLQUITT COUNTY DEVELOPMENT AUTHORITY
                   TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BOND
       (SANDERSON FARMS, INC. (PROCESSING DIVISION) PROJECT), SERIES 2004,

TO: SANDERSON FARMS, INC. (PROCESSING DIVISION), as Purchaser

REQUEST FOR ADVANCE NO. ____________________________
AMOUNT OF ADVANCE REQUESTED: $___________________
DATE OF REQUEST FOR ADVANCE:_______________________

      The undersigned, being an Authorized Company Representative of Sanderson
Farms, Inc. (Processing Division), as agent for Moultrie-Colquitt County
Development Authority, hereby requests an advance in the amount indicated above
to pay or to reimburse the Costs of the Project reflected on the accompanying
Requisition(s).

      The undersigned hereby certifies that:

      1. The net amount of the requested advance is equal to the total amount
requested in the attached Requisition(s) and the gross amount of the requested
advance when added to the gross amount of previously requested advances does not
exceed the Maximum Principal Amount;

      2. The date that this Request for Advance is being delivered is not later
than the expiration date set forth in Section 4 of the Bond Purchase Loan
Agreement, referred to above.

      3. No "Event of Default" as defined in the Bond Purchase Loan Agreement
has occurred and is continuing, except:

         ______  None

         ______  As described on the attached page.

                                         MOULTRIE-COLQUITT COUNTY
                                         DEVELOPMENT  AUTHORITY

                                         BY: SANDERSON FARMS, INC.
                                             (PROCESSING DIVISION)

                                             By: ________________________
                                              Authorized Company Representative

<PAGE>

                     CERTIFICATE AND REQUISITION FOR PAYMENT

                               Date: ______, _____

                               Draw Request #____

      Sanderson Farms, Inc. (Processing Division) (the "Company") hereby
requests, pursuant to the Bond Purchase Loan Agreement, dated as of December 1,
2004 and the Lease Agreement (the "Lease"), dated as of December 1, 2004, by and
among the Company and Moultrie-Colquitt County Development Authority (the
"Issuer"), that (check one of the following):

      ______ the following amounts be disbursed pursuant to the Bond Purchase
Loan Agreement relating to the Issuer's Taxable Industrial Development Bond
(Sanderson Farms, Inc. (Processing Division) Project), Series 2004 in accordance
with the following payment instructions to the following parties :

<TABLE>
<CAPTION>
Name of Payee                Nature of Cost of Project                    Amount
-------------                -------------------------                    ------
<S>                          <C>                                          <C>
</TABLE>

Payment Instructions:

or that:

      _____ the Company is conveying by the items of property listed therein
having an aggregate book value of $_____________ (determined as provided in
Section 2 of the related Bond Purchase Loan Agreement), and directs that said
amount be treated as an advance by the Purchaser to the Project Fund under the
Bond Purchase Loan Agreement and a purchase by the Issuer from the Purchaser of
such property at such cost.

      The Company does hereby certify to the Issuer and to the Purchaser that,
as of the date hereof, (1) the representations and warranties of the Company in
the Lease are hereby ratified and confirmed, and (2) the above-listed items are
included within the definition "Costs of the Project" contained in the Lease.

                                     SANDERSON FARMS, INC. (PROCESSING DIVISION)

                                     By:____________________________________
                                           Authorized Company Representative<PAGE>

                                                                    Exhibit 10.3

                              SANDERSON FARMS, INC.

                            SHARE PURCHASE AGREEMENT
                        (Management Share Purchase Plan)
                        (Non-Employee Director Agreement)

      This SHARE PURCHASE AGREEMENT (this "Agreement"), made and entered into as
of the _____ day of _______________, 20____ (the "Grant Date"), by and between
___________________________ (the "Participant") and Sanderson Farms, Inc.
(together with its subsidiaries and affiliates, the "Company"), sets forth the
terms and conditions of an Award of Share Purchase Rights granted pursuant to
the Sanderson Farms, Inc. and Affiliates Stock Incentive Plan, adopted on
February 17, 2005 (the "Plan") and this Agreement. Any capitalized term used but
not defined herein shall have the meaning ascribed to such term in the Plan. The
term "Fiscal Year" shall mean the fiscal year of the Company which begins on
November 1 of each calendar year and ends on October 31 of the next calendar
year.

      1. Rights to Purchase Restricted Stock.

         The Participant may elect to reduce the annual retainer and meeting
fees otherwise payable to him in respect of his services as a member of the
Board of the Company ("Director Compensation") by a specified percentage (up to
100 percent) and, in lieu of receiving such specified percentage of Director
Compensation, receive a number of Shares of the Company, subject to the terms,
conditions and restrictions set forth herein ("Restricted Stock"), equal to the
amount of such reduction divided by a dollar amount equal to the Fair Market
Value of a Share on the date on which such Restricted Stock is received. In the
first year of the Participant's eligibility to participate in the Plan, an
election in respect of Director Compensation otherwise payable for the period of
that initial year of eligibility subsequent to the election must be made within
30 days after the date that the Participant becomes eligible so to participate
(the "Initial Election Deadline"). An election so made during the initial year
of eligibility shall become irrevocable on the Initial Election Deadline and
shall be effective beginning with the date that Director Compensation is
otherwise payable (each such date, a "Director Payment Date") that first occurs
after the Initial Election Deadline. Any election to reduce Director
Compensation otherwise payable in a calendar year after the Participant's
initial year of eligibility shall be effective beginning with the first Director
Payment Date occurring on or after January 1 of the calendar year next following
the calendar year in which such election is made (and shall become irrevocable
on December 31 of the calendar year in which such election is made with respect
to the next calendar year). Any cancellation of, or other change in, any such
Director Compensation reduction election shall become effective as of the first
Director Payment Date occurring on or after January 1 of the calendar year next
following the calendar year in which notice of such cancellation or change is
filed (and any such notice shall become irrevocable on December 31 of the
calendar year in which it is filed with respect to the next calendar year).

         Any Director Compensation reduction hereunder shall apply ratably to
the Participant's Director Compensation otherwise payable on each Director
Payment Date covered by such election. Restricted Stock shall be issued or
purchased by the Company for the account of the

<PAGE>

Participant in respect of such Director Compensation reductions on each Director
Payment Date. Fractional shares will be issued (or purchased) where necessary.

      2. Company Matching Contribution.

            For each four shares of Restricted Stock acquired by the Participant
pursuant to Section 1 above, the Company shall simultaneously issue or allocate
to the account of the Participant, for no additional consideration, one
additional share of Restricted Stock (the "Company Match"), including fractional
shares where necessary.

      3. Terms of Restricted Stock.

            (a) The Restricted Stock is subject to forfeiture as provided herein
and, during the Restriction Period defined below, may not be sold, exchanged,
transferred, pledged, hypothecated or otherwise disposed of by the Participant,
other than by will or by the laws of descent and distribution of the state in
which the Participant resides on the date of his death. The period during which
the Restricted Stock is not vested and is subject to transfer restrictions is
referred to herein as the "Restriction Period."

            (b) Except as otherwise provided in this Agreement or the Plan, each
share of Restricted Stock shall vest and no longer be subject to forfeiture or
any transfer restrictions hereunder on the third anniversary of its acquisition
date, so long as the Participant has continued to serve as a member of the
Company's Board from the acquisition date through such third anniversary.

            (c) If the Participant ceases to serve as a member of the Company's
Board by reason of death or Disability (for purposes of this Section 3,
"Disability" shall have the meaning set forth in Section 409A(a)(2)(C) of the
Code at any time such definition is more restrictive than the Plan definition of
"Disability"), or if there is a Change in Control (provided that such Change in
Control also constitutes a "change in ownership or effective control" of the
Company within the meaning of Section 409A(a)(2)(A)(v) of the Code), then any
portion of the Restricted Stock that has not vested shall immediately vest and
no longer be subject to forfeiture or any transfer restrictions hereunder. If
the Participant ceases to serve as a member of the Company's Board for any other
reason, voluntarily or involuntarily, prior to the expiration of the Restriction
Period for any shares of Restricted Stock acquired pursuant to this Agreement by
the Participant, then (X) any portion of the Restricted Stock acquired by the
Participant pursuant to the Company Match that has not vested as of the date of
cessation of service shall immediately be forfeited, ownership shall be
transferred back to the Company and the Restricted Stock shall become authorized
but unissued Shares, and (Y) any portion of the Restricted Stock acquired by the
Participant in respect of Director Compensation reductions that has not vested
as of the date of cessation of service may, at the Company's option, be
repurchased by the Company at the price paid by the Participant for such
Restricted Stock (and the Company may pay such purchase price in whole or in
part by cancellation of any indebtedness owed by the Participant to the
Company).

                                                                               2
<PAGE>

      4. Registration of Shares.

         Certificates representing the number of shares of Restricted Stock
purchased from time to time shall be registered in the Participant's name (or an
appropriate book entry shall be made). Certificates, if issued, may, at the
Company's option, either be held by the Company in escrow until the applicable
Restriction Period expires or until the restrictions thereon otherwise lapse
and/or be delivered to the Participant and registered in the name of the
Participant, bearing an appropriate restrictive legend that refers to this
Agreement and remaining subject to appropriate stop-transfer orders. The
Participant agrees to deliver to the Board, upon request, one or more stock
powers endorsed in blank relating to the Restricted Stock. If and when shares of
Restricted Stock vest and are no longer subject to forfeiture or transfer
restrictions, unlegended certificates for such Restricted Stock shall be
delivered to the Participant (subject to Section 8 pertaining to the withholding
of taxes and Section 16 pertaining to the Securities Act of 1933, as amended
(the "Securities Act")); provided, however, that the Board may cause such legend
or legends to be placed on any such certificates as it may deem advisable under
Applicable Law.

            If the Company elects to hold certificates in escrow, then it shall
deliver to the Participant not less often than every six months a statement of
the aggregate number of shares of Restricted Stock held for his account and the
applicable acquisition dates and purchase prices of shares of Restricted Stock
acquired by the Participant since the last such statement.

      5. Rights as a Stockholder.

      Except as otherwise provided in this Agreement or the Plan, during the
Restriction Period applicable to any Restricted Stock, the Participant shall
have, with respect to the Restricted Stock, all of the rights of a stockholder
of the Company, including the right to vote the Restricted Stock and the right
to receive any dividends or other distributions with respect thereto; provided
that any dividends or other distributions with respect to shares of Restricted
Stock shall be credited to the account of the Participant until the vesting date
of the shares in respect of which such dividends or other distributions were
paid.

      6. Adjustments.

      If any change in corporate capitalization, such as a stock split, reverse
stock split, stock dividend, or any corporate transaction such as a
reorganization, reclassification, merger or consolidation or separation,
including a spin-off of the Company or sale or other disposition by the Company
of all or a portion of its assets, any other change in the Company's corporate
structure, or any distribution to stockholders (other than a cash dividend)
results in the outstanding Shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or class of
shares or other securities of the Company, or for shares of stock or other
securities of any other corporation, or new, different or additional shares or
other securities of the Company or of any other corporation being received by
the holders of

                                                                               3
<PAGE>

outstanding Shares, then the shares of Restricted Stock acquired pursuant to
this Agreement shall be treated in the same manner as other outstanding Shares
of the Company.

      7. Validity of Share Issuance.

      Upon the issuance of Restricted Stock pursuant to the terms of this
Agreement, such shares of Restricted Stock will be duly authorized by all
necessary corporate action of the Company and will be validly issued, fully paid
and non-assessable.

      8. Taxes and Withholding.

      As soon as practicable on or after the date as of which an amount first
becomes includible in the gross income of the Participant for federal income tax
purposes with respect to the acquisition of Restricted Stock pursuant to this
Agreement, the Participant shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, or the Company may deduct
or withhold from any cash or property payable to the Participant, an amount
equal to all federal, state, local and foreign taxes that are required by
Applicable Law to be withheld with respect to such includible amount.
Notwithstanding anything to the contrary contained herein, the Participant may,
if the Company consents, discharge this withholding obligation by directing the
Company to withhold shares of Restricted Stock having a Fair Market Value on the
date that the withholding obligation is incurred equal to the amount of tax
required to be withheld in connection with such vesting, as determined by the
Board

      9. Notices.

      Any notice to the Company provided for in this Agreement shall be in
writing and shall be addressed to it in care of its Secretary at its principal
executive offices, and any notice to the Participant shall be addressed to the
Participant at the current address shown on the payroll records of the Company.
Any notice shall be deemed to be duly given if and when properly addressed and
posted by registered or certified mail, postage prepaid.

      10. Legal Construction.

            (a) Severability. If any provision of this Agreement is or becomes
or is deemed invalid, illegal or unenforceable in any jurisdiction, or would
disqualify the Plan or this Agreement under any law with respect to which the
Plan or this Agreement is intended to qualify, or would cause Director
Compensation reductions under this Agreement to be includible in a Plan
participant's gross income pursuant to Section 409A(a)(1) of the Code, as
determined by the Board, such provision shall be construed or deemed amended to
conform to Applicable Law and to qualify the Plan, this Agreement and the income
pursuant hereto for the desired benefits of the laws with which they are
intended to qualify or, if it cannot be construed or deemed amended without, in
the determination of the Board, materially altering the intent of the

                                                                               4
<PAGE>

Plan or the Agreement, it shall be stricken and the remainder of this Agreement
shall remain in full force and effect.

            (b) Gender and Number. Where the context admits, words in any gender
shall include the other gender, words in the singular shall include the plural
and words in the plural shall include the singular.

            (c) Governing Law. To the extent not preempted by federal law, this
Agreement shall be construed in accordance with and governed by the laws of the
State of Mississippi.

      11. Incorporation of Plan.

      This Agreement, the Share Purchase Rights awarded pursuant hereto and the
Restricted Stock acquired pursuant hereto are subject to, and this Agreement
hereby incorporates and makes a part hereof, all terms and conditions of the
Plan that are applicable to Agreements and Awards generally and to Share
Purchase Rights in particular. The Board has the right to interpret, construe
and administer the Plan, this Agreement and the Share Purchase Rights awarded
and the Restricted Stock acquired pursuant hereto. All acts, determinations and
decisions of the Board made or taken pursuant to grants of authority under the
Plan or with respect to any questions arising in connection with the
administration and interpretation of the Plan, including the severability of any
and all of the provisions thereof, shall be in the Board's sole discretion and
shall be conclusive, final and binding upon all parties, including the Company,
its stockholders, Participants, Eligible Participants and their estates,
beneficiaries and successors. The Participant acknowledges that he has received
a copy of the Plan.

      12. No Implied Rights.

      Neither this Agreement nor the award of Share Purchase Rights nor the
acquisition of any Restricted Stock shall confer on the Participant any right
with respect to continuance of employment or other service with the Company.

      13. Integration.

      This Agreement and the other documents referred to herein, including the
Plan, or delivered pursuant hereto, contain the entire understanding of the
parties with respect to their subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings
with respect to the subject matter hereof other than those expressly set forth
herein and restrictions imposed by the Securities Act and applicable state
securities laws. This Agreement, including the Plan, supersedes all prior
agreements and understandings between the parties with respect to its subject
matter.

                                                                               5
<PAGE>

      14. Counterparts.

      This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but which together constitute one and the same
instrument.

      15. Amendments; Termination.

      The Board may, at any time, without consent of or receiving further
consideration from the Participant, amend this Agreement and the Restricted
Stock acquired pursuant hereto in response to, or to comply with changes in,
Applicable Law. To the extent not inconsistent with the terms of the Plan, the
Board may, at any time, amend this Agreement in a manner that is not unfavorable
to the Participant without the consent of the Participant. The Board may amend
this Agreement and the Restricted Stock acquired pursuant hereto otherwise with
the written consent of the Participant.

            The Company may suspend or terminate this Agreement at any time,
provided that no such suspension or termination may adversely affect the
Participant's rights with respect to any Restricted Stock previously acquired
pursuant to this Agreement, unless his written consent is obtained.

      16. Securities Act.

            (a) The issuance and delivery of the Share Purchase Rights to the
Participant have been registered under the Securities Act by a Registration
Statement on Form S-8 that has been filed with the Securities and Exchange
Commission ("SEC") and has become effective. The Participant acknowledges
receipt from the Company of its Prospectus dated July 27, 2005, relating to the
Plan.

            (b) If the Participant is an "affiliate" of the Company, which
generally means a director, executive officer or holder of 10% or more of its
outstanding shares, at the time certificates representing Restricted Stock are
delivered to the Participant, such certificates shall bear the following legend,
or other similar legend then being generally used by the Company for
certificates held by its affiliates:

            "THESE SHARES MUST NOT BE OFFERED FOR SALE, SOLD, ASSIGNED OR
            TRANSFERRED EXCEPT IN A TRANSACTION WHICH, IN THE OPINION OF COUNSEL
            FOR THE ISSUER, IS EXEMPT FROM REGISTRATION THROUGH COMPLIANCE WITH
            RULE 144 OR WITH ANOTHER EXEMPTION FROM REGISTRATION."

            The Company shall remove such legend upon request by the Participant
if, at the time of such request, the shares are eligible for sale under SEC Rule
144(k), or any provision that has replaced it, in the opinion of the Company's
counsel.

                                                                               6
<PAGE>

      17. Arbitration.

      Any controversy or claim arising out of or relating to this Share Purchase
Agreement shall be settled by arbitration administered by the American
Arbitration Association under its Commercial Arbitration Rules and judgment upon
the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof.

      IN WITNESS WHEREOF, the Participant has executed this Agreement on his own
behalf, thereby representing that he has carefully read and understands this
Agreement and the Plan as of the day and year first written above, and the
Company has caused this Agreement to be executed in its name and on its behalf,
all as of the day and year first written above.

                                               SANDERSON FARMS, INC.

                                               By: ____________________________
                                                     Name: ____________________
                                                     Title: ___________________

                                               ________________________________
                                               Participant

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